Starting at the beginning

The Micro Environment

This is the environment in which your business operates, on a daily basis - this is the internal workings of your business.

We refer to this environment as the controllable environment. The decisions in this environment are yours to make. Thus you make the functional decision that will cause the business to be successful; you are in control. These are the elements that are included in this environment and which you will need to research:

· Finances

· Capital equipment

· Systems

· Skills

· Human resources

· The working environment

· Standard procedures and instructions

You may be asking what there is to research about these elements. Let us look at each of these in more detail.

These questions are not exhaustive and you can expand on these as you complete your research. But these questions will assist you to better understand what it is you need to start the business.

Finances

· How much money will you need to start the business?

· How much money will you need to operate the business?

· Which bank will you approach to do your business banking?

· Which bank will give you the money you need at the best rates?

· What is the best way of financing your borrowings?

· Will you need a credit card?

· Will you need a cheque book?

· Will you need internet banking?

· Will your business need to accept credit and debit cards?

· What are the costs of these services?

· Will you need a line of credit?

Capital Equipment

· What capital equipment will you need?

· What is the best way to buy this equipment?

· Will the equipment be adequate to accommodate future business growth?

· Research different types and models of capital equipment?

· At what rate will the capital equipment be written off in the books?

Systems

· What systems will my business need?

· Will these be computerized?

· Will you need quality management systems?

· Will you need outside assistance to develop systems and QA processes?

· How will you handle invoicing and debt collecting?

· Will you need an operations manual?

· Will you need a sales manual?

Skills

· Are the skills you have adequate to run the business?

· What additional skill sets will you require?

· Where will you get these skills?

· At what cost?

Human Resources

· Do you need internal staff?

· What will they do – their job functions?

· How many staff will you need?

· What qualifications should they have?

· Will you provide benefits for them?

· What are the WCB requirements for staffing?

· Disciplinary code of conduct and process

Working Environment

· What type of environment do you need to create?

· Will you need an interior designer or builders?

· Where will the business be located?

· What are the hydro requirements to run your business?

· What will be the best layout be for functionality and productivity?

Production

· What is the production process?

· How will you source raw materials?

· How often will you need delivery of the raw materials?

· Do you need special equipment?

· Do you require specialized processes?

· Do you need storage space for finished goods?

· How will you transport the product to the customer?

These are by no means all of the questions that your research will need to address but this gives you a little insight into what will typically be found in the micro environment and what will need research. Only once you have completed your research can you begin the process of putting all of these systems and processes together. Many entrepreneurs reserch as they go and often this leads to challenges and wrong decisions.