Pros and Cons of staring a company in today’s market

Question : Discuss about the Full Risk and Uncertainties Economis ? Answer : Introduction 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. Discussion 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, Porters 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 toward s 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). Conclusion 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. References 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