Advantages and Disadvantages of Self Employment - Personal Statement Example

Starting your own business Introduction Because of the high recession in the current world and no job opportunities, I am planning to establish my own business so that I can earn a living. The current world is moving into entrepreneurship opportunities where people are employing themselves. I believe I will succeed in establishing my own business because currently I hold the minimum requirement – education- I am a graduate in an Engineering field. I will offer a wide variety of services and products to the market segment that I will choose to serve so that I will satisfy as many customers as possible. This will facilitate the attainment of goals and objective of the business that I intend to start. Some of the services I intend to offer involves installing, servicing, maintaining and repairing a large range of industrial doors and docking bay system services. In addition, I will offer several products in the company. These products comprise of steel cops that are used as yarn carriers in draw twisting machine, bobbins which are commonly used in the manufacture of sewing machines and aluminum products, aluminum tubes and rods. I will choose these services and products because there is a high demand in the market. From a research carried out by Chaffey, (2006), competition in this field is low. I will need to equip myself with essential knowledge, skills and abilities (KSA) especially in the field of marketing. It is more challenging to enter into the new market with my new business because of reaction from already established companies in the market. I will therefore implement all strategies which will make my business to survive stiff competition incase other people would immitate what I will do and offer. There are basic skills that I will need to know before I establish my business. These skills comprise of factors such as the 4Ps or marketing mix. Marketing mix is very important because it will help me to know whether the products and services are meeting the needs of the customers in the market. Customer satisfaction is very important because it will create a positive relationship which will lead to customer loyalty. For the business to improve in its performance it needs to position itself well in the mind of the customers. Quality is the main thing which matters in business. Customers are willing to spend heavily on quality products and are even willing to pay premium prices when they know that the product or services will satisfy their needs completely (Friedman, 2009). To be sure about this, I will need to define the characteristics of the products that I offer so that it can satisfy the customers beyond their expectations. I will consider many factors before I price my products and services. I will make sure that I consider how the competitors price theirs so that I can price slightly lower than them. Following the nature of the products which I intend to offer, customers will be sensitive to the prices offered. Price is the most important determinant on how I will build my clientele. This is the most sensitive part in the business because if I price my products or services too low, I will not get any profits. The other factors which I will consider in the marketing mix are the product promotion. It is vital for new businesses like mine to promote their products and services in a competitive way so that it can be known and attractive to the customers. I will utilize all forms of promotion such as advertisement through TV, personal selling, sales promotions and public relations. Finally, I will consider place or distribution. I will need to think on various ways and places in which in will distribute my products. Advantages and disadvantages of self employment After starting this business I know I will benefit on various ways. one advantage is that I will be independent and enjoy freedom on my routine. I will work on my own pase provided I deliver quality products and services to my clients. In the current world it is advisable that the entrepreneur works towards meeting the needs of the clients and employees. This is very important because clients state their expectations rather than directing you to work. I know I will need to satisfy them so that I will receive more work from them, I will also benefit from the referrals they will offer to other customers so that I get a chance to cross sale my products. Another benefit which I hope to achieve when I start my own business is that I will be my own boss whereby I will decide when, where and how to work to get the job done. Having my own business and not being employed by the company, will likely make me earn higher (Friedman, 2009). For example, companies are in a position to pay highly the independent contractors for the reason that they will not incur in other cost such as benefits, medical cover and pensions. The independent contractors are in a position to earn higher because they are not subjected to taxes and thus increasing their incomes. However, there are many disadvantages which are associated with personal business. These disadvantages comprise of less security, fewer benefits and payment of taxes. There will be less security because sometime I may fail to get the customers and thus makes to go without payment. It will be my responsibility to make sure that I sale on daily basis so that I will get an income. Unlike the employed people, I will get fewer free benefits. I will have to arrange and pay for my own vacation time, plan on how I will meet my personal retirement plans, and other things like insurances. Employed people enjoy all these benefits because their companies plan for them. Thirdly, I will be facing the problems of paying taxes – I will be having an obligation of making sure that I have paid by taxes as required by the law. Personal businesses pay taxes almost in countries though the rates differ from one country to another. Graduate Engineering professional Engineering professionals have wide ethical responsibilities and duties to his or her employer in the place of work. These responsibilities vary on the ground of the nature of employment. There are ethical responsibilities which are commonly meant for independent engineers who are working for their clients, employed by government or are permanently employed by the company. There are various codes of engineering ethics which are clearly identified and the engineer should consider these ethics so as to satisfy the public, employers, and clients. These ethical responsibilities and duties comprise of maintaining a high degree of safety, health and welfare of the public when I am working, ensuring that I work under established rules and principles which will facilitate high levels of performance in the work I am assigned to do. I will also work in the areas or fields which I am best at so that I deliver quality services to my employer. In addition, I will issue statements in an objective and honest way irregardless of the conditions. I will never involve myself in any act that can affect my profession. This means that I will work with my employer in a faithful and professional way so that I ensure that everything I am doing will not cause any losses to an employer. It is important to consider various issues such as safety measures while working so that I will avoid conflicts of interest. This will build my professional reputation because of the quality services I will be offering to my employer. As a result of this, I will have upheld and boost my honor, integrity, and dignity in my profession. I will ensure that I deliver quality services with zero-tolerance to any act that suggests the presence of bribery, fraud, and corruption in the company I will be working for. Finally, I will ensure that I continue with my professional development as I work in the company. As a fresh graduate in engineering field, I would consider various factors when seeking my first employment. However there are some factors which I will not consider much. Some of this factor includes the salary scale which I will be offered. The most important thing which I will consider is my career goal. I will clearly state how I will develop my career and the means of reaching to that level. At such a point, I will carry out self assessment and career planning so that I avoid the common pitfall of making wrong choices which it will end up in time wasting and resources. In my first job I will take as part of learning because I will be looking for experience and not money. This is very important because many people end up having an advanced degree with no job experience causing some difficulty in getting a job. Such situations can be stressful and one can get hurt. After obtaining a job experience, I will consider advancing my career so that I would stay marketable. Most employers currently are looking for more educated people who will be resourceful in the company. Advantages and disadvantages of working for Small Medium Enterprise Small and Medium Enterprises is commonly abbreviated as SME’s. They are best described as organizations with yield which falls below the limits which have been set by the controlling body which control businesses in a country. In each country, there are organizations which have been confirmed SME’s and the government have implemented policies so as to regulate and protect such companies from being destabilized by the blue chip companies. The key factors which influence the management of Small and Medium Enterprises can be categorized into two broad categories. These categories comprise of external and internal factors. The external factors are those which inhibit or facilitate entrepreneurs when they are starting up and when the SME is already in its life cycle. External factors can further be summarized as opportunities or threats that small entrepreneurs face within the organization regardless of their education, backgrounds or business concepts. These factors consist of economic, cultural, socio-demographic, cultural, political, legal, technology and infrastructure. Glenn, (2003) argue that the success of every Small and Medium Enterprises depends entirely on the specific factors that exist within each country. Small and Medium Enterprises have a matchless management style for the reason that they are uniquely operated as compared to the larger companies. Participative style of management is common with SME’s. This form of management is described as a style where the employees accept to be organized by an employer while the employees also contribute some percentage in the development of the core values of management. Most of the Small and Medium Enterprises has adopted this form of management style whereby employees accept the responsibilities to be done, agree that it is there job to do so and that they will held responsible if they do not deliver some expected goals and meet some standards which have been put in place. In Small and Medium Enterprises therefore, the work of the managers is to support their subordinates by making sure that there are no further obstacles which prevent them from delivering their services. The manager cuts across the entire team by coordinating the world of the junior employees and that of the group in which he is a subordinate. Because of such a mutual relationship between the employees and the management, he creates satisfaction in the employees and therefore the chance of obtaining success is high. Since most of the Small and Medium Enterprises is built in a participative form of decision making, the setting of targets needs to be made in an effective manner. There are several advantages of running Small Medium Enterprise (SME) as compared to big companies. First, the Small Medium Enterprise (SME) requires little starting capital for it to be established. It is therefore simple for people who are planning to establish one for their own due to simple and easy procedures when establishing the legal documents such as trading licenses. Furthermore, managing of the SMEs is simple because it can be run a single person. There is no requirement of various details such as the publication of annual accounting records as compared to other big companies and therefore the calculation of profit becomes simple for the company (European Commission, 2003). However, there are various problems which are connected Small Medium Enterprise. Some of this includes the lack of specialized management in the company. This is because the business is control by the owner and not the professional person who have been trained to deal with it. Though it is important to have specialized management in the business it is also expensive for SMEs to maintain the expertise. Since there is no publication of the accounting records of the company, it will be difficult for the company to benchmark itself with other competitors which are in the same business. According to Green, (2008) it has been difficult for the Small Medium Enterprise to raise capital because of inability to sell share to the public. Most of Small Medium Enterprise is not registered in stock exchange in various countries making it difficult for them to sell shares to the public. Apart from this, the Small Medium Enterprise faces problem of competition in the market because many people tend to enter into this business because of it simplicity in establishment. Customers get confused on this competing business because the quality of the products they offer is almost the same. It is important to note that customers in this market do not undergo complicated buying behavior because the products they buy are relatively cheap as compared to those which they could buy in the big companies (Tetteh & Burn, 2001). The Small Medium Enterprise does not carry out market research or customer research due to lack of resources. Most of them do not afford to hire expert who can carry out research so as to identify the problems and the needs of the customers in the market. Because of this Small Medium Enterprise has found it difficult to satisfy its customers in the market. In conclusion, it is important for the entrepreneurs to consider all aspects which can affect the business both positive or negatively in the organization. Problems which often arise in the Small Medium Enterprise ought to be identified and care taken so that they can be solved once and for all. A healthy organization is the one in which it handles its problems as soon as they arise and comes up with permanent solutions to these problems. The management of every organization especially Small Medium Enterprise ought to develop a plan which is aimed at managing of tasks within the organization and solving of problems as they come up. The owners of small business treat their customers well so as to avoid negative feedback from the customers thus reducing the number of problems in the organization. It is very essential for the owner of the business to have a plan on how to run the business. They should clearly identify his employees so that can know their needs and wants and address them effectively. Bibliography Glenn A. (2003). A Strategic Governance Review for Small and Medium Enterprises of and Professional Development, Rand Corporation European Commission, (2003). The new SME definition: User guide and model declaration. Rand Publishing Chaffey, D. et al., (2006). Internet Marketing: Strategy, Implementation and Practice. Pearson Education. Tetteh, E. & Burn, J., (2001). Global strategies for SME-business: applying the SMALL framework. Logistics Information Management, 14(1/2) Friedman, C. (2009). The Girl's Guide to Starting Your Own Business: Candid Advice, Frank Talk, and True Stories for the Successful Entrepreneur. HarperResource, 2004 Green, J. (2008). Starting Your Own Business. How To Books Ltd, 2002 Read More