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Business operating environment


Starting a new business is an undertaking that requires careful consideration of all the underlying factors for subsequent success.  This is especially important as it entails investment from the entrepreneurs which is a major risk taking.  Basic social, economic and legal requirements and impacts are thus very important for immediate and later flourishing of the established business.

Business description  

Mail packaging and supplies business entails selling of services related to packaging and immediate distribution to the consumers.  Also, it involves interaction with different producers and manufacturers to sell the services to them.  Besides, the entrepreneurs may have individual products which they package and then supply to the local retailers for sale to the consumers.  To increase the business operation base, a general retails wing may also be opened for immediate local consumers.  Immediate employees for packaging, consumer relations and distribution will act as the main operationalization team.

Prospective customer base.

The business orientation will have a national outlook with projections of growing to international levels.  However, the  major customers will be the light industries in the region and the local agricultural community which greatly requires these services.  Besides, the national wide traders will also form a major pool of customers in the distribution section.

Local competition

Currently only two main mail packaging and supplies businesses are present in the region.  Having been in the business for along period, they have wide range of customers who trust them greatly.  Besides, their capital investment is also larger.  Competition and penetration to the market will therefore not be easy and new technology and lean management will be applied to ensure total quality offer to the clients.  Over the time the consumers have been crying foul of the declining standards of the existing mail packaging and supplies enterprises.  This will therefore be capitalized on to guarantee international standards.  New technology and efficiency will also be used to lure more consumers into the new business.

Demand for the business products.

As indicated earlier, the region has recently experienced massive investments in the light industries that have great future potential.  As a result the, the current mail packaging and supplies businesses are not enough as some of the enterprises hire the services from outside the region.  The region is also experiencing rampant population growth that makes the supply of the products and immediate sale very necessary.  The region therefore is endowed with high demand and holds great potential for success in this business.

Legal, social and economic issues.

Having decided to form the business as a partnership entity, the cooperation aggreement deeds will be of great importance.  It will have to clearly establish how the business will be run and the mode of sharing profits by the different partners.  Harmonization of the business with the current constitutional requirements will require time before the operating licenses are issued.  Besides, the neighbors to the store will demand a serene environment that is less disturbing to them.

All the employees on the other hand will need adequate, standard payment and compensations for different activities.  To add to that, the economic handles will be hard to tackle as they form the major key to success in the business.  With the current capital being inadequate for full operation of the business, other sources like bank loans may be of great essence.  All the different undertaking in the new business requires adequate finances for smooth and strong kick off.


Strong consideration of all the accruing factors in the mail packaging and supplies business will ensure easy and faster operationalization to profitability.  A holistic approach of all the social, economic and legal requirements as well as their immediate and latter interaction will determines the overall success.  As a partnership business, consultation and full time communication and immediate expansion of the business from the accruing profits will guarantee the overall sustainability.

Reference list.

Hoover’s Incorporated.  (2007). Hoover’s Handbook of World Business 2007. New York: Hoovers         Inc publishing press. 

Stephen, C. H. (2003). The McGraw-Hill Guide to Starting Your Own Business: A Step-by-step Blueprint for the First-time Entrepreneur. London: McGraw-Hill Professional.

Yolanda, A., Johnson, S. D. & Julie, A. M. (1998). Small Business Source book: The       Entrepreneur’s Resource. Washington: Thomas and Johnson publishers.

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