Starting a business enterprise is a potentially beneficial and exciting prospect that is full of risk and uncertainties. Irrespective of starting a sole proprietorship business or forming a partnership firm, it is important for an individual to study the pros and cons related to the business. On the other hand, the individual must study the market conditions that may influence the business to develop an appropriate strategy to operate the business (Besser & Miller, 2010). Learning the facts regarding the market and business helps to take realistic decisions that increase the chances of the survival of the firm. According to the statistical report, only seven out of ten businesses can survive for two years and only a quarter of the seven businesses will survive for fifteen or more years.
Currently, the business owners can make use of different market analysis tools to observe the factors that may influence the operations of the business. For example, PESTEL analysis, SWOT analysis, Porter’s Five Force analysis are the most used management tools to judge the external and internal market factors that may influence the business. Furthermore, the business owners can make use of government reports and data from other organisations to judge the success rate of business. Meanwhile, it is important for a business owner to understand the pros and cons of starting a new business in the current market (Lan, 2009). Hence, the advantages and cons of starting a new business have been presented herein below:
The primary reason for an individual to start a business is to reap professional and personal benefits. By starting a new business, an individual can determine own working hours, work environment and work pace (Freeman, 2017). On the other hand, the new business provides the individual with a career of own choice and interest. Furthermore, opening a new business represents a freedom of life and work balance. A person may feel illogical due to the limitations faced while working for others including the limited number of positions and mismanagement within the company (Bradt & Davis, 2014). Furthermore, the business can lead to financial success for an individual and provide name and fame to the person starting a business. According to an article in the USA Today, the chances of a self-employed businessman to become a millionaire increases by four times than a traditional employee (Usatoday30.usatoday.com, 2017).
A start-up business can be identified as a tiring pursuit although it is invigorating, to say the least. Setting up a business platform in a target location is an art of perfection. Most importantly, a business owner must be attached to the work around 52 hours a week whereas for a service person 40 hours of work in a week would be enough (Palmer, 2015). Precisely, the time investment in a start-up business can be recognised as a difficult task to get over. Furthermore, for a start-up business a number of insurance terms, liability arrangements, and legal paper works will be inevitable. Hence, funding and responsibilities of the owner will be enhanced in a significant order (Brenowitz, 2013). Therefore, sometimes, it will get difficult for an entrepreneur to meet all the requirements simultaneously. Moreover, a start-up business entrepreneur must make all arrangement for hiring the staff members and paying the employees. During the business crisis, responsibilities must be met towards the staffs sacrificing personal benefits (Freeman, 2017).
The leading consideration in a start-up business should be the associated market risk. Precisely, a start-up business must have enough financial resources to run a business for several months. Therefore, a new business must focus on paying bills rather than making profits at the primary level (Besser & Miller, 2010). Alternatively, the demand and supply of the product or services offered by the start-up company must be matched with the market situation. If there are so many market competitors, the risk of growth will be evident. As a result of the circumstances, market analysis and fund allocation can be identified as the major resources for long-run stability in business (Hefer, Cant, & Wiid, 2015).
Broadly speaking, starting-up a business and running it for a long-run, management will be the key to success. First of all, allocation of cash flow and negotiating with significant terms will lead to broadening the business perspective. Though there are sufficient risk and reward associated with a start-up business, flexibility in contemporary business practices will be crucial for entrepreneurs. Through the improvisation of cash flow, workforce, and management ideas, a well-thought out start-up business can create a significant market presence. Specifically, building the right strategy for the business course must be defined. Arguably, a start-up business has more positives than negatives if the resources allocation will be made in an efficient way.
Besser, T. & Miller, N. (2010). Starting business networks: benefits and barriers. International Journal Of Entrepreneurship And Small Business, 10(2), 224.A start-up business can be identified as a tiring pursuit although it is invigorating, to say the least.
Bradt, G. & Davis, G. (2014). First-Time Leader (1st ed.). Hoboken: Wiley.
Brenowitz, R. (2013). Jump?Starting High?Performance Teams. Handbook Of Business Strategy, 4(1), 241-246.
Freeman, D. (2017). Risk taking with background risk under recursive rank-dependent utility. Mathematical Social Sciences.
Hefer, Y., Cant, M., & Wiid, J. (2015). Starting Ones Own Business What Motivates Entrepreneurs?. International Business & Economics Research Journal (IBER), 14(2), 237.
Lan, J. (2009). Employment Obtaining and Business Starting. International Education Studies, 2(1).
Palmer, M. (2015). A Risky Decision: A Risky Start to a New Business and a New Life. Risk Management, 2(4), 59-60.
The pros and cons of starting a small business - USATODAY.com. (2017). Usatoday30.usatoday.com. Retrieved March 2017, from https://usatoday30.usatoday.com/money/smallbusiness/startup/week1-pros-cons-table.htm
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2018). Pros And Cons Of Staring A Company In Today’s Market. Retrieved from https://myassignmenthelp.com/free-samples/pros-and-cons-of-staring-a-company-in-todays-market.
"Pros And Cons Of Staring A Company In Today’s Market." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/pros-and-cons-of-staring-a-company-in-todays-market.
My Assignment Help (2018) Pros And Cons Of Staring A Company In Today’s Market [Online]. Available from: https://myassignmenthelp.com/free-samples/pros-and-cons-of-staring-a-company-in-todays-market
[Accessed 02 April 2020].
My Assignment Help. 'Pros And Cons Of Staring A Company In Today’s Market' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/pros-and-cons-of-staring-a-company-in-todays-market> accessed 02 April 2020.
My Assignment Help. Pros And Cons Of Staring A Company In Today’s Market [Internet]. My Assignment Help. 2018 [cited 02 April 2020]. Available from: https://myassignmenthelp.com/free-samples/pros-and-cons-of-staring-a-company-in-todays-market.
At MyAssignmenthelp.com, we are committed to deliver quality assignment assistance in the fastest way possible. To make our service delivery fast, we have hired subject matter experts to work on different subject specific assignments. We have hired experts who owe in-depth knowledge in their respective subjects. As per their expertise, they provide geography assignment help, Physics assignment help, Strategic assignment help, history assignment help, art architecture assignment help and assistance with other subjects as well.
Answer: The rate of underutilization is the sum of unemployment and underemployment. For this reason, it can be said that the rate of underutilization will be higher compared to the rate of unemployment. Unemployment takes place when a person is actively searching for jobs and is unable to find any job. Unemployment can be measured by measuring the rate of unemployment where the people who are unemployed are divided by the number of peop...Read More
Answer: Introduction In this essay, the prospective effect of drought on macroeconomic equilibrium of Australia has been discussed. Drought indicates a dry climatic condition resulted from insufficient rainfall in a specific region. Drought affects an economy by influencing mainly supply side variables. Farms, business and common people are likely to suffer due to drought. Based on intensity the effect of drought might be local, regional or e...Read More
Answers: 1. The three main forms of unemployment are structural unemployment, frictional unemployment and cyclical unemployment. The first two represent natural unemployment while the third occurs due a decline in demand during recession. Structural unemployment The labor market suffers structural unemployment due to a shift in the economic structure creating divergence between skills that workers possess and the skills that employers...Read More
Answer: a. In a perfectly competitive market, firms are price taker as none of them can change the market price. New firms can enter into the market without any restrictions and each of them sells similar products. Therefore, each firm possesses a very small portion of the entire market. According to the characteristic of this market, each firm and each consumer has perfect knowledge of others (Cowell, 2018). If one of them change price then ...Read More
Answer: Workshop Question 1 The UNDP describes development on the basis of three essentials, which includes the ability for a country’s population to have long and healthy life, have a decent standard of living and quality education (Frugoli et al, 2015, p.370). Through the Human Development Index, a country’s overall well-being can, therefore, be easily measured. It’s a social measurement as it takes into consideration the...Read More
Just share your requirements and get customized solutions on time.
Our writers make sure that all orders are submitted, prior to the deadline.
Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.
Feel free to contact our assignment writing services any time via phone, email or live chat.
Our writers can provide you professional writing assistance on any subject at any level.
Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.
Get all your documents checked for plagiarism or duplicacy with us.
Get different kinds of essays typed in minutes with clicks.
Calculate your semester grades and cumulative GPa with our GPA Calculator.
Balance any chemical equation in minutes just by entering the formula.
Calculate the number of words and number of pages of all your academic documents.
Our Mission Client Satisfaction
expert working good with ratio analysis i got full marks for ratio but overall good presentation.
excellent work by tutor and quality of good work excellent work by tutor and quality of good work excellent work by tutor and quality of good work excellent work by tutor and quality of good work excellent work by tutor and quality of good work
Brilliant work, paid attention to every details, And submitted on time for review.
The report was exceptional. Thank you for helping me with this assignment, and I am very satisfied with the result. The content was exceptional and my grade was exactly what I needed, the writer was very on point and finished my report in a timely ma...