Business environment as a key in business planning

New business owners allover the world follow certain criteria and considerations in growing their business to full maturity and success. Most of them believe having the knowledge, capital and resources gives them the success they need in growing the business.

Without doubt these factors are part of it but One factor that most business owners fail to put into consideration is the ENVIRONMENT. As odd as it might be, the environment is one of the top key thought process for a business growth.

The business owner should put into consideration the kind of environment for setting the business and how it affects the business goals and objectives. This should be done at the onset when the business is till in the planning process.

The business should be located in a favourable environment; where the product or service rendered would have a positive economic and financial effect on the business.

Environment of a business can create opportunity as well as threats to the business. In terms of opportunities created by a business environment:

• The product could be easily accessible to the market (marketable) thereby increasing sales 
• If the business is located close to the raw materials needed to manufacture the product, it would save cost in transportation, production and accessibility 
• The company can locate the business in areas where their product/service are needed (accessible). 
• They would have close relationship with their customers and buyers 
• It assist in bring assurance in the minds of the customers on the product 

As regards the threats created by the business environment:

• It could lead to overcrowding of different business organizations with similar product/service 
• It raises competition in the market and accessibility of raw materials as multiple organizations with similar product/service in the same region will want to sale their products and still maintain production. 
• There will be power tussle as organizations will want to maintain their standard, customers as well as product quality and quantity. 

Business organizations should not just be market focused when it comes to starting a new business, they should look at the non-market forces and access it's strength and weaknesses to the realization of their goal.