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What are the factors to consider before investing in a retail business?

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Factors to consider before investing in a retail business are;

  • Profitability : A good business opportunity should generate high profit
  • Availability of market : Ready market and large market for sale of goods
  • Level of production : competition should be minimal to ensure continuity of operations
  • Few risks : To minimize losses
  • Government policy: All legal requirements should be easy to fulfill to enable him start the business
  • Labour requirement: Relevant labour required must be available to enhance smooth operation
  • Management : Should have the relevant managerial skills or it should be easy to hire or run the business
  • Supply of inputs: there should be adequate supply of inputs for use in running operations of the business
  • Capital: The amount of money required in relation to the money available for investment should be enough.
  • Growth prospects: Business having the possibility of growing / expanding.