Setting up a business is not an easy task. The complexity will depend on the type of business we are thinking of creating. Some of the important factors to bear in mind when thinking about a business are detailed below:

1. Economic Framework. First of all it is important to think about social and economic aspects (prices of raw materials, income of the population who will buy our product, the cost of mony, the income distribution of our products consumer etc.)

2. Sector Analysis, market characteristics and choice of product. We must ask ourselves if we are going to innovate with a new product, if we are going to have a franchise, or if it is going to be an industrial product. Once the product or service that we are going to market has been chosen and designed, we will have to study the demand (the clients to whom our product or service will be aimed at), in other words look at the necessities of the consumers to whom we are going to sell our product or service and the supply (competitors who we are going to face). Therefore it will be crucial to study the characteristics of the product or service and the type of client that could be interested in it. It is also important to look at the dimension of the other businesses in the sector in order to study the price of the competitors.

3. Business Site. It is also going to be important to decide upon the place and the premises where we are going to be situated. The premises where we are going to carry out our business activity will have to be fitted out or reformed which will mean an extra cost to consider.

4. The distributon of the product. This means it will be important to consider how to distribute the product so that it reaches the clients. The sale to intermediaries, wholesalers, retailers and of course the distribution costs.

5. Investment Plan. This is the expense of equipment, land buildings, raw materials, furnishing etc. Here it is necessary to think about where we are going to get the money from to finance the business (our savings, bank loans, personal loans from family or friends, government loans, subsidies etc.)

6. Labour relations of the Company. This means looking at how many people we will need, qualifications of the labour force, responsibilities and work tasks of each person and what wage costs and the monthly amount of social security the company must pay, will amount to.

7. Choosing the legal status of the Company. Will we begin as an individual, a civil society or non-mercantile company, or will we form a private limited company or a public limited company? If we decide to form a company, who will be our partner, what will be their participation in the company, what experience have they got in this type of business etc.? The cost of setting up the legal status that we decide upon must also be taken into consideration.

8. Price of the Product. To do this we will have to forecast the cost of the product or the raw materials that we will need, the labour costs, general expenses of the company, competitors prices etc... The forms of payment must also be thought about, cash, credit and the discounts for cash payments.

9. Sales Forecast. It is important to anticipate what turnover we will have, as we need to cover costs. Here we have to realise beforehand that there wil be a development period until the clients get to know the product, where to buy it, the qualitiy etc.

10. Company Politics of Publicity - Promotion and Communication. Sales promotion, public relations and publicity will be important factors to make our company known. We will also do a study of publicity techniques (testing of the product so that the client can try it, newspapers, television, publicity leaflets, specialist magazines etc.)