Reviewing business models
...to be enough to fund the business needs. ‘There is also the question of how the venture will be financed, and whether the entrepreneur can afford to launch the business’ (Jim Dewhurst and Paul Burns, 1989). As the website www.businesslink.gov.uk points out it is important to develop your business ideas/plans and to have an understanding about your competitors before starting a business. (http://www.businesslink.gov.uk/bdotg/action/layer?r.l2=1073859137&r.l1=1073858805&r.s=tl&topicId=1073869162) Next biggest task is setting up an office. As www.entrepreneur.com shows the main things to consider are location, computers, Multifunction machine (machine that acts as a fax machine, copier and printer), Two-line cordless phone, Office furniture. (http://www.entrepreneur.com/article/0,4621,309865,00.html) According to Mr.Nguyen it is necessary to start out with the bare necessities.’ Entertainment systems, company car, customized stationery, signage are luxuries that will cost you plenty of money. While some of these would be desirable when starting a business, they are not essential at this early stage of a business.’ According to the slides presented by Mr.Nguyen more than half of small businesses fail within the first 2-3years. Thus it is important to set a list of tasks for the business. Keep the list and goal clearly visible so you have something to work towards. And do not buy anything extra unless it pays for itself immediately. Pricing Pricing a job is an important factor as that’s the area that keeps your business alive. There are several ways to price a job: one would be Hourly rate for small jobs, the second would be Daily rate for projects taking up to 2 weeks, and lastly Contract fee for projects longer than 2 weeks. (Vu Nguyen 2004, HET409 Lectures) Advertising Advertising is the way by which you promote an image of your business. Thus taking the right methods of doing it is very important. According to Mr.Nguyen word of mouth is the best form of advertising. Other models of self employment would be; Freelance: work-for-hire, temporary employee on a project basis. Subcontractor: similar to running your own business, Consultant: Lucrative and relatively low-risk, but you need a solid reputation and a lot of friends in the business. (Vu Nguyen 2004, HET409 Lectures) Advantages of working for yourself: Advantages of running your own business would be many. To mention a few; It would Build Self-Esteem, for an example; if you succeed, you did it because of your decisions and your efforts. Another factor is you will have total control over everything. As Mr.Nguyen pointed out you can decide upon the creative direction of your projects as opposed to working for someone whose ideas you have to follow and listen to. Financially you will be benefited as the net income would belong to you. (http://www.nutribase.com/proscons.shtml) Disadvantages of working For yourself: The following could be considered as disadvantages of running one’s own business; Long hours of work, No Regular Salary as you are the manager the worker an...