Challenges in Starting a New Business
Starting a new business can be very exciting as well as challenging. It can be exciting because it might be a transition from being an employee to owning a business and becoming one’s own boss where there is freedom of doing things without anybody’s influence. The idea of being a business owner can be very exhilarating in itself. Bateman states that ‘The control and ownership of a business is a very powerful feeling. Having ownership is like an adrenalin flow. It gives you more energy – you start to see what you can achieve.’(Smith, 1997, p. 149)
There are numerous advantages of having one’s own business. The potential to earn a higher income, independence, being one’s own boss, ability to fully implement one’s creative talents, choosing one’s own hours of work and a sense of personal pride and achievement are just a few.
Establishing a new business has two very distinct features. The first is that the entrepreneur is the sole arbiter of his/her ability to start and run the business. This puts a heavy responsibility on the entrepreneur’s self-knowledge as not everyone is suited to being an entrepreneur or self-employed and it is not always easy to determine one’s suitability. The second characteristic of starting a business is to create one’s own income. This is largely dependent on the type of business and the target market. In theory, a well-run business should succeed in any market. In practice, however, success can be made more likely by choosing one’s product and market.
Planning is an important part of starting a business. The success of the business depends on proper and realistic planning. A good plan would include the entrepreneur’s vision of the business, short, medium and long term goals of the business, people and business partners and their roles and suitability, the product, competitors and the advantage of one’s product over the competitor’s, marketing of the product, finances, risks associated with starting the business and finally, the exit
There are numerous advantages of having one’s own business. The potential to earn a higher income, independence, being one’s own boss, ability to fully implement one’s creative talents, choosing one’s own hours of work and a sense of personal pride and achievement are just a few.
Establishing a new business has two very distinct features. The first is that the entrepreneur is the sole arbiter of his/her ability to start and run the business. This puts a heavy responsibility on the entrepreneur’s self-knowledge as not everyone is suited to being an entrepreneur or self-employed and it is not always easy to determine one’s suitability. The second characteristic of starting a business is to create one’s own income. This is largely dependent on the type of business and the target market. In theory, a well-run business should succeed in any market. In practice, however, success can be made more likely by choosing one’s product and market.
Planning is an important part of starting a business. The success of the business depends on proper and realistic planning. A good plan would include the entrepreneur’s vision of the business, short, medium and long term goals of the business, people and business partners and their roles and suitability, the product, competitors and the advantage of one’s product over the competitor’s, marketing of the product, finances, risks associated with starting the business and finally, the exit
References: Moss, G. (2001). Time-Savers: Guideline, Checklists & Golden Rules. (2nd ed.,) Smith, P. (1997). Stephen Bateman. In Success in New Zealand Business2 Auckland, New Zealand: Hodder Moa Beckett Publishers Ltd. Yager, J. (1948). Work Less, Do More: The 14 Day Productivity Makeover. Ashton, R. In 10 Benefits to Running your Own Business. Retrieved 2 June, 2010 from http://www.robertashton.co.uk/articles/2006731 Finkel, D. (25/08/2008). In The Three Greatest Challenges that Entrepreneurs & Business People face 5 Tips for Overcoming Small Business Challenges and Failures. Retrieved 3 June, 2010 from http://www.morebusiness.com/managing-challenges