Key Factors for Business Success

Business Concept

A company is a collection of items, organized and coordinated by management, designed to meet objectives while operating under conditions of risk.

Location Factors

• Market Demand: Consider the local interest in your product.
• Raw Materials: Assess material quality, cost, and availability.
• Labor Market: Evaluate potential employees, expertise, labor costs, and legal considerations.
• Infrastructure and Transport: Consider transport accessibility and connections with other businesses.
• Utilities: Evaluate the availability and cost of essential utilities like electricity, water, and telephone lines.
• Construction and Land Costs: Remember that prices vary by location.
• Legislation: Understand relevant tax, commercial, and social regulations.
• Investment and Financing: Secure necessary economic resources and consider access to financial institutions.
• Regional Economic Development: Analyze the region's economic growth potential.

Company Elements

Every company producing goods or services must consider several factors:

• Human Factors: The people involved with the company.
• Material Factors: The company's economic assets, including fixed assets (lasting over one fiscal year, like machines) and working capital (renewed annually, like money).
• Organization: The set of authority relations, coordination, and communication within the company and with external parties, defined by the employer.
• Environment: All external factors influencing company performance, from government regulations to customers and suppliers.

Business Roles

• Commercial Area: Connects consumers with produced goods and services. Analyzes consumer needs and designs sales strategies.
• Production Area: Manages raw material supply and oversees goods and services production.
• Investment and Finance Area: Acquires funds for company operations.
• Human Resources Area: Selects, recruits, and manages personnel. Coordinates work across all company areas.