Background Of Start Up Opportunity Essay

Question:

Discuss about the Background of Start Up Opportunity.

Answer:

Introduction:

A young company which has just started to develop is known as a startup. It is initially funded and managed either by a single individual or a group of persons all of them are usually founders. They try to offer a product or service which is currently not being offered in the market or it is available in a very less quantity which means the competitors are quite less (Buckley, 2013).

During the initial stages, the expenses of the startup organizations tend to go beyond their revenues because they are developing, trying and marketing their proposal. For this reason, startups can take business advance from banks, or they can receive grants under the government schemes. Startups don’t have the history because they are the innovations, but there are always chances that they turn into a profit business, although investing in them is always a high risk (Smith, 2014).

The startup opportunity which I am planning to take is the skill trade. There are multiple reasons behind choosing this as a business.

Firstly the roots of this approach lie in our history. Everyone has studied history and thus might remember the barter system in which people used to exchange goods for getting a service. It was the period when money did not exist. Today people have money but their expenses have increased equally.

Secondly in this era of globalization where there is so much competition human beings who have average trade skills are unable to make their both ends meet.

Thirdly, there are big industries available for providing a small service. For example: For the repair of car you need to contact the agency and then it becomes a tedious task.

Fourthly, the major problem for starting up a venture is finding a suitable location. There is no need for operational site. A small room is enough for back-end work (Psaltopoulos, Stathopoulou and Skuras, 2005).

Keeping all these problems in mind, a solution which comes to mind will be creating the website which will be purely based on the barter system. In this website, if you want to get your car repaired without giving money then you give the service of cleaning the house for one week.

Startup’s have a high failure rate due to which finding investors becomes a cumbersome task. But as charity begins at home, similarly this idea can be started within the friends. Once the website starts getting clicks, it will be automatically come up in the rating and on the other hand, the best way to advertise any upcoming venture is by word of mouth (Steven Chang and Ping Li, 2003). Although a proper plan will be required for executing this business effectively. A strategy will also be required to safeguard overextending the services in return as an exchange. Moreover, if a person will always be involved in skill trade, then there would be no time to earn income. Therefore one should keep in mind the following:

  • How much one should barter? Only skill trade those things which you feel are parallel to amount needs to be paid. The rule of thumb will be to see the limit of products purchased or service taken. For instance: If the car repair would have cost you $ 100 then see in return that how much a made charges for one-week household work. If it is equal then go for it else says "No."
  • The service you are getting is essential for running your business?
  • Is the potential trade partner trust worthy? One should enter into agreements with only those business owners whom you trust or already have business relationships. One shouldn't trust people whom you just met for skill trade.
  • Enter only with those trade partners who have already fulfilled previous agreements.
  • If the skilled trade is for months, then it is advisable to enter into agreements and writing down all the necessary details so that both the parties are at the win-win situation.
  • We will make sure that if a person is engaging into skill trade through our website, then the deal is closed from both the parties.

This business has proved to be quite essential in the past and it will be quite helpful to industries also. There comes a time in an organization when individuals approach their retiring age and the human resource personnel has not found the suitable candidate as a replacement of this person, at this point of time they can search the candidates from here and their work will be done while searching for the appropriate candidate. Apart from this is helpful for those who are engaged in seasonal works. Such personnel’s are free for six months and during these months it is not easy for them to make their both ends meet. This kind of website will act as a savior for such people.

References

Buckley, M. (2013). On the Essential Nature of Business. Business Ethics Journal Review, pp.92-98.

Makarov, I. and Plantin, G. (2015). Rewarding Trading Skills without Inducing Gambling. The Journal of Finance, 70(3), pp.925-962.

Psaltopoulos, D., Stathopoulou, S. and Skuras, D. (2005). The Location of Markets, Perceived Entrepreneurial Risk, and Start-up Capital of Micro Rural Firms. Small Bus Econ, 25(2), pp.147-158.

Smith, C. (2015). Value Proposition. Cream City Review, 39(2), pp.13-13.

Smith, D. (2014). Starting Up. Science.

Steven Chang, T. and Ping Li, P. (2003). How to succeed in e?€ђbusiness by taking the haier road: formulating e?€ђbusiness strategy through network building. Competitiveness Review, 13(2), pp.34-45.

Thompson, L. (2000). Clear Goals, Solid Evidence, Integrated Systems, Realistic Roles. HealthcarePapers, 1(4), pp.60-66.

Vial, V. (2016). A Business Model Canvas for Social Enterprises. Sains Humanika, 8(1-2).

Walker, E. (2004). What Success Factors are Important to Small Business Owners?. International Small Business Journal, 22(6), pp.577-594.

Yenipazarli, A. (2014). A road map to new product success: warranty, advertisement and price. Annals of Operations Research, 226(1), pp.669-694.

Zook, E. (2014). Effective Leadership Promotes Perioperative Success. AORN Journal, 100(1), pp.4-7.

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