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One of the hardest things to do is to start a personal business, as it requires investment and careful planning. It involves high risk and uncertainty in terms of launching a business successfully as to not only cover fixed costs but also earn handsome revenue. If a business fails to earn more money than the fixed expenses it is an utter failure. The aim of every business is not to just earn enough to cover all the fixed costs but also generate a large amount of revenue for expansion. There are different uncertainties associated with starting a small business. First of all, a person starting a small business fears losses. He may not be as experienced as his competitors may; therefore, it is not just about a short-term success but having success in the longer run.
Arranging Investment Amount
Some people may not have sufficient resources to get started with a small business and they may require taking the loan from others. They may need to make a feasibility report in which they have to mention the steps and overall plan to launch a business. The feasibility report indicates possible measures that have to be taken in order to generate sufficient funds to pay back the amount borrowed. The feasibility must consist of steps and a well-devised strategy to convince the person who is lending money to run a small business. If there are loopholes in the feasibility report and there is no proper plan to generate revenues then the report can be rejected and a person who is seeking loan can be denied. The investor has to make sure that sufficient funds are generated from the business as not to only pay back his loan but also interest.
Another key factor is to determine the location where a small business can flourish. Location is the key to success of any business and several other factors are also taken into consideration such as place where the product of a small business is in high demand, the competition is not very stiff and prices set to sell the product are reasonable. They should be neither too high nor too low.
Another important thing to take into consideration is to conduct a survey about the demand of the product. A questionnaire must be designed to seek likes and dislikes of common people.
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