Toolkit on how to Start and Improve your Business - Information Seeking

Summary of Information Seeking

 

 

 

   

 


 

 Summary of information seeking  [top]                                                      

 

Market demand

  • Saturation of existing demand by existing suppliers

  • Reliability of supply for existing product/service

  • Expected increase of demand for the product/service

  • Variety of distribution channels and target clients

  • (low, medium and high income group clients) and market segment

  • Existing sub-contracting and market linkage opportunities

  • Names and prices of advertising enterprises     · Same/similar kind of goods/services (number, price, concentration, quality) offered by competitors

Availability of qualified personnel and training

  • Availability of different skills (conceptual, managerial, technical, manual);

  • Steadiness of supply of skills;

  • Cost of labour;

  • Institutions that provide business management training and their fees;

  • Institutions that provide skill up-grade training and their fees.

Availability of technology and equipment

  • Availability of proven technology/tasted equipment;

  • Availability of technology/equipment at reasonable prices;

  • Availability of technology appropriates for the level of production, level of investment and desired product quality.

Availability of supply of raw materials

  • Availability of adequate local/imported sources of raw materials    at reasonable prices;

  • Reliability of supply of raw material;

  • Seasonal availability, quality and viability of raw materials.

Competitors

  • Competitors offering the same kind of goods/services (number, price, concentration, quality)

Availability of utilities and infrastructure

  • Availability of/access to electric power and water supplies;

  • Availability  of transportation at an affordable price;

  • Access to work premises and related costs.

Finance

  • Alternative sources of finance (micro finance institutions, commercial banks, government funds, donor funds);

  • General loan conditions, terms and interest rates of the various lending institutions including government financial sources.

Legislation

  • Form of business enterprise to establish and related legal requirements and licensing procedures (partnership, sole proprietorship, co-operative);

  • Tax holidays and exemptions, types and rate of payment;

  • Standards and quality regulations;

  • Special provisions and support from government;

  • Tender procedures;

  • Business laws and binding contractual agreements.

Business management

  • Organisational form of the business

  • Availability of different skills (conceptual, managerial, technical, manual);

  • Steadiness of supply of skills;

  • Cost of labour;

  • Institutions that provide business management training and their fees;

  • Institutions that provide basic accounting training and their fees;

  • Auditing services and their fees;

  • Institutions that provide skill up-grade training and their fees.  

 

 

 Check your legal responsibilities  [top]                                                      

The following table is presented to show you what decision variables you should consider in order to start your business. Please note that the crosses indicated in the 'Yes' and 'No' columns of the table are presented as examples only.

 

 1.  Business registration  

  • Identify concerned institution for a license/work permit;

  • Check procedures required to secure a license;

  • Check how much time it takes to secure a license;

  • Check how much it costs  to secure a license;

  • Check how much the  annual license fee you should pay;

  • Check when you should renew your license.  

 2.  Taxes  

  • What type(s) of taxes you are required to pay? (e.g. value added tax, income tax, profit tax, turnover tax, sales and excise tax);

  • What are the tax rates for each tax category?

  • Which organisations are responsible for tax collection?

  • What penalties are involved for untimely/missing tax payments?

 3.  Tenders  

  • Check existing tender procedures;

  • Check existing legal conditions for tender participation;

  • Identify potential sources of tenders.

 


 

 Checklist for final decision to start your business  [top]                       

 

Decision variables

Yes

No

Remark

Have you decided what product/service to sell?

x

 

 

Have you identified who your customers will be?

x

 

 

Do you know who your competitors are?

x

 

 

Do you know what price to charge for your product/service? Is it competitive?

x

 

 

Have you found a location for your business?

x

 

 

Have you decided what kind of promotion  to use and have you calculated the related costs?

x

 

 

Have you decided which legal form your business will have and do you have all the relevant information about licensing procedures?

x

 

 

Do you know what kind of skilled labour you are going to hire, their availability and the relevant costs?

x

 

 

Have you calculated how much start-up capital you need and from where to secure it?

x

 

 

Have you decided what kind of record-keeping system your business uses?

 

x

look for assistance

Have you prepared a sales and costs plan for  at least six months?

x

 

 

Does your sales and costs plan show profit for a reasonable period of time, say at the end of the first year of operation?

 

x

revise your plan and strategy

Have you prepared a cash flow projection, for at least 6 months?

x

 

 

Does your cash flow plan show your business  will not run out of cash during the first few months i.e. 6 months?

 

x

revise your cash flow plan

Have you found out what assistance you may get from government and other development agencies?

 

x

look for information from relevant offices

Total

11

4

 

Now make your final decision based on the total sum of 'Yes' and 'No' answers for the indicated decision variables.

 

 [top]

Market   I   Supply  I   Infrastructure  I   Business management  I  Finance  I 

Business registration  I  Taxes/Customs  I  Tenders  I   Summary

 

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