Case Studies: Tales of Two Entrepreneurs
MUTSAKA T, A. 209915633
SESSION 2 CASE STUDIES
A Tale of Two Entrepreneurs 1. Pros and Cons of Running a Small Business | PROS | CONS | * Independence | * Earning less | * Putting own ideas into action | * Working harder | * Creating work for yourself | * Still being under a big organization | * More freedom | * No negotiation power | * Individuality | * Uncertainty of success | * Challenging | * Risky, less security | * Flexibility and informality of working environment | * Co-operation with larger companies that make and market final products | * More flexible in responding to customers’ requirements | | * Not waiting for someone else to do it for us | |
2. In Andrea’s case I would advise her to look at her options. She must look into the benefits and the drawbacks of staying within the company and transferring departments, or taking her redundancy package and starting up her own business. She should assess and measure the opportunity. Not only banking on the government authority as her only customer she must analyse if other customers are reachable. She must assess is if her market potential and annual growth is could be significant and durable. She might also measure if the customer payback would be less than one year, and if she would break even within the first 2 years. Andrea should also assess her competition and see if she can compete and provide her services at lower cost than them, and lower capital. All the above is important for her to look at when assessing and differentiating starting her own business from being a mere idea to an opportunity. Kit too should look at these same aspects of differentiating between a good idea and an opportunity as Andrea. He should look into finding out the costs involved in operating his business in an environmentally friendly manner, and measure if the venture will be sustainable as well as profit maximizing, with cost effective
SESSION 2 CASE STUDIES
A Tale of Two Entrepreneurs 1. Pros and Cons of Running a Small Business | PROS | CONS | * Independence | * Earning less | * Putting own ideas into action | * Working harder | * Creating work for yourself | * Still being under a big organization | * More freedom | * No negotiation power | * Individuality | * Uncertainty of success | * Challenging | * Risky, less security | * Flexibility and informality of working environment | * Co-operation with larger companies that make and market final products | * More flexible in responding to customers’ requirements | | * Not waiting for someone else to do it for us | |
2. In Andrea’s case I would advise her to look at her options. She must look into the benefits and the drawbacks of staying within the company and transferring departments, or taking her redundancy package and starting up her own business. She should assess and measure the opportunity. Not only banking on the government authority as her only customer she must analyse if other customers are reachable. She must assess is if her market potential and annual growth is could be significant and durable. She might also measure if the customer payback would be less than one year, and if she would break even within the first 2 years. Andrea should also assess her competition and see if she can compete and provide her services at lower cost than them, and lower capital. All the above is important for her to look at when assessing and differentiating starting her own business from being a mere idea to an opportunity. Kit too should look at these same aspects of differentiating between a good idea and an opportunity as Andrea. He should look into finding out the costs involved in operating his business in an environmentally friendly manner, and measure if the venture will be sustainable as well as profit maximizing, with cost effective