Pakistan study notes for Matric, Intermediate, B.A, B.COM BSC, M.A, BCS. Free Pakistani Urdu educational school, colleges and University notes.

Problems faced in starting a new business

Q 2: Discuss the problems faced in starting a new business?


Q:  State the fundamental considerations in Starting a business?


Fundamental considerations in starting a business, the following are same important matters to he considered while starting a new business.

a) Selecting a suitable Business

b) Finance

c) Location

d) Organization and Structure

e) Management

f) Government Policy


The first point to be decided is the nature and size of the proposed business, generally there are three types of Business enterprises:

1)  Serving Business

2) Merchandising Business

3) Manufacturing Business

Further, a business may be established on a large scale or small scale.




In starting business finance consideration is very important unless sufficient funds are arranged it will not be possible to operate the affairs of business. Finance can be arranged by the owner either from his own resources or through credit. Owner’s capital is generally utilized for acquiring fixed assets, whereas loans are met for financing current assets.


The rent step is to select a suitable location for the business which depends on the nature, size, transport facility and availability of fuels, raw materials and Labor.

In case of a manufacturing concern, plant layout also requires special consideration. Plant layout is a technique of locating special machines, processes and special services within the factory so as to achieve the greatest possible output of high quality at lowest possible total cost of manufacturing.


Proper organization of business is very important to ensure its profitability. A business may be organized as a sole Proprietorship, Partnership or a limited company. Type of ownership can be decided on the basis of nature of products or service decided on the basis to be provided of nature for to customers. This decision will also be influenced by the size of the business and the amount of Capital desired to be invested.


A proper management system should be considered while starting a business. So that operations can be carried on smoothly. This depends mainly on the size of business.


The last factor is the consideration of government rules and regulation for a particular type of business.

The relevant, laws and regulations must be kept in mind and all necessary permissions and license from the complement authorities.

Related posts:

Leave a Reply

Content Protected Using Blog Protector By: PcDrome. & GeekyCube.