Understand The Physical Environment In Which You Operate Your Business in Uganda!

The physical environment is an essential component of the business environment in which you intend to operate or in which you already run your business, irrespective of whether it’s conventional or online, small or big. It refers to the availability of resources that you need to run your business efficiently. These resources may generally include, among others, inputs like materials, services, land, climate, water, physical plants and facilities. Every business needs these resources to get started or have its work done efficiently and effectively.

Your physical environment comprises both natural and artificial resources. Features like land, water, climate, wildlife, and vegetation are natural components of the physical environment where we live and operate our businesses. On the other hand, dams, roads, premises, and many others are unnatural resources that affect your business.

The physical environment also refers to the physical location, space, and anything else that physically impacts you and your business. For instance, light, temperature and distractions in your office can affect your performance. If you are working in an office with little light, it can make you get stressed. If it is too hot in your workplace, it can make you get so tired that you find it difficult to work comfortably and effectively. What about a noisy and polluted place? What effect can it have on your health and your business? Think about it!

Why Is It Important to Understand the Physical Environment in which You Operate your Business?

There are several reasons, but let me share only two of them related to the Ugandan situation. They include the following.

Physical Environment

#1 – Good for Planning Purposes

The success of your business depends mainly on proper planning. If you want to start a business, you need a business plan. You should also have a marketing plan and an activity plan. The physical environment is one of the most critical factors to consider at any planning stage.

Understanding your physical environment enables you to plan well for your business from an informed point of view. Knowing about the physical environment helps you grow a successful business if you already have a business. When the resources you need for your business become scarce in your surroundings, it is hard for you to operate your business normally. Many times, one has to borrow funds from banks, micro-finance institutions or other money lenders to acquire resources so that the firm can survive.

For instance, Uganda is endowed naturally with abundant rainfall, a good climate and fertile soils. Because of its good soil and climate, Winston Churchill named Uganda the “Pearl of Africa” in 1908. These words still ring in the heads of Ugandans, and they are proud of it because of the good natural physical environment God gave to Uganda. However, due to the uncontrolled disastrous activities of Ugandans themselves, rainfall has become as scarce as in desert countries. The once fertile soils are no longer productive without adding fertilizers or manure. As a result, the climate has tremendously changed countrywide. What does this mean to you as a business person?

If you operate a business related to agriculture like commercial farming, food processing or trading in food items and cash crops, think about how the Ugandan changing natural, physical environment will affect you. Research and prepare yourself well for any eventuality that will arise from the changing natural environment.

#2 – To Know the Resources You Need for Your Business

The resources you need vary from business to business. For instance, if you want to set up a laser engraving business, you will have to get engravable materials, technical people, office space in a good location, a laser engraver and a constant power supply. You will also need designing software, skills and knowledge in designing/engraving, and a computer to start your business.

But if you want to set up a juice manufacturing business, you will have to get different resources. You will need fruits as your raw materials, juice-making equipment, electricity, transport, etc. You, therefore, need to consider so important the physical environment in which you intend to set up your business. First, ask yourself what you can offer yourself. Secondly, outsource what you are unable to provide. It is always beneficial if your physical environment can provide what you need for your business.

What Else Should You Know?

Land and labour are essential resources if you want to venture into agribusinesses. The land is always readily available in rural areas than in urban areas. Likewise, cheap labour is usually more available in rural areas than in urban places. Machinery and raw materials are vital resources to consider if you want to set up a small processing plant. For instance, if you intend to start an engraving business, you will have to purchase a modern laser engraving machine and materials from which you will produce the products you want to sell to your targeted customers.

Conclusion

The physical environment affects the efficiency and success of any business. Before you venture into any business, it’s advisable to think about the availability of the natural resources that you need to run your business and take some steps to ensure that you have them available. Always understand the physical environment in which you operate your business!