I am exploring the option of starting my own business. In addition to creating a business plan (which I am not quite sure how to do), I am reviewing factors and costs. What should be the 10 most important factors and costs and further, name 3 implicit and 3 explicit costs to consider. I have what I believe to be good options but I am curious to get another opinion.
Also,how will the above stated values be measured and how can you apply good economic reasoning in determining whether or not to start this business.
The first step in the process of starting a business is to determine your own skills and expertise. Your personal experience will likley indicate what types of businesses you might be able to run successfully. Next you need to determine who your customers would be. Is the market large enough to support your venture? The locations of your buyers may suggest how your marketing plan will look. For example, if you will have mostly international buyers, setting up an office in a small town would probably not be the make sense. Next, think about the competition. Even if there is a large market for a good, if you will be competing against large well-established competitors, it willl be a while before you are profitable. After these ...
Implicit and explicit costs of starting a business is assessed.