Seasonal Factors Affecting Business
These seasonal events affect different industries and businesses differently. For example, January is a good month for health club memberships as well as self-help books and programs. February is generally the slowest month of the year, but it does feature Valentine's Day, which triggers a great deal of seasonal business. What environmental factors affect business? Factors-affecting-business# 3. Seasonal/year round.
- Factors Affecting Business Risk
- External Factors Affecting Business
- Technological Factors Affecting Business
Those who operate seasonal businesses have the unenviable task of trying to maintain profitability throughout periods in which their business may experience significant slowdowns. The extent to which seasonality may affect a business depends upon a number of different factors. All businesses have cycles. The length of a cycle can be exceptionally short for some businesses - to the point that they appear to be unaffected by long-term seasonal cycles. Others must face the prospect of longer droughts, for which they must prepare.
Effort For salespeople who depend upon their own production, seasonality can affect the amount of money they can expect to make at any given time during the year. Paul Oyer in the Department of Economics at Princeton University notes that salespeople will often adjust their effort levels according to the seasonality of their business, saving their maximum effort for those periods in which profitability is known to be the highest. For instance, automobile salespeople will experience higher sales peaks during the spring and summer months. During these months, they may maximize their sales efforts and spend the colder winter months putting more effort into marketing and networking.
Factors Affecting Business Risk
Monitoring, understanding and adapting to the political environment is absolutely essential for any business, because it significantly affects every business, some of t he factors are 1. Stability of the government 2. Government type (dictatorship, democratic, monarchy, etc) 3. Economic policy of the government 4. Trade policy 5. Diplomatic events in surrounding countries Furthermore, political context can change for the foreseeable future. For example future gov legislation may adversely chocolate.
There are a couple of factors: Fear - People tend to be scared of the challenges ahead when they start a small business which causes them to panic and make irrationa l decisions. Lack of confidence - If a businessman does not believe in himself, then his employees or worse off his customer will have no faith in him.
External Factors Affecting Business
Money - Before starting a business, one should have roughly 90 percent of the capital required to allow that business to stand and a supposed 5 percent of the required capital for miscellaneous or emergency needs. Lack of knowledge - If you start a business that you have not researched on properly or have no knowledge of the subject, there will be very little no chance of survival, so knowledge is quite vital.
Patience - One has got to have this virtue, otherwise if you give up easily you may never know how far you would get if you stayed on. Discipline - Lack of this character could make one loose both employees and customers. Because, if you want your business to succeed you have to keep your word and walk the talk and you will get this right back. These are many other factors could affect a small business. Business planning is one of the important thing you may not even think would affect a small business loan rate is a business plan.
Technological Factors Affecting Business
However, the lack of a solid and comprehensive business plan may make the world of difference when you apply for a loan, particularly if you are a new business. A business plan shows that you are serious about starting and maintaining a business venture and seeing a future with growth. A business plan also gives financial institutions a good indication of whether they are making a wise investment.