start up business essay

How to Start a Business Essay: Full Explanation with an Example

Starting a business is like setting off on a wild adventure. It's thrilling, full of ups and downs, and it's up to you where you want to go. But let's face it: it's also confusing! With so much to think about, it's easy to feel lost. That's where this essay comes in. We're here to break it all down for you, giving you the lowdown on turning your business dreams into a solid action plan. So, grab a cup of coffee and get ready to dive in!

What Is a Business Essay?

An essay on business is a written composition that explores various aspects of the business world, ranging from theoretical concepts to practical applications. Typically, it analyzes specific topics within the realm of business, such as management practices, marketing strategies, financial analysis, or entrepreneurship. Business essays often provide insights, arguments, and recommendations supported by research, data, and real-world examples. They aim to inform, persuade, or educate readers about key issues, trends, or challenges in the business environment, fostering a deeper understanding of the subject matter and stimulating critical thinking. Our business essay writing service supports such types of assignments, so if you need help – feel free to request a quote.

What Is a Startup Business Concept?

A startup business concept is essentially the seed from which an entire venture grows. The initial spark of inspiration sets the foundation for everything that follows. This concept typically arises from identifying a gap or inefficiency in the market or recognizing an unmet need or problem potential customers face. Entrepreneurs then conceptualize innovative solutions to address these challenges, whether a new product, service, or approach.

The concept defines the startup's unique value proposition, outlining what makes it stand out in a crowded marketplace. For example, a startup concept might involve developing a mobile app to streamline a tedious process, creating a sustainable alternative to an existing product, or offering a niche service tailored to a specific audience.

Once a startup concept is formulated, it undergoes refinement and validation through market research, feasibility studies, and prototyping. This stage involves gathering feedback from potential customers, testing assumptions, and assessing the concept's viability in the real world. Entrepreneurs analyze market trends, competitive landscape, and consumer preferences to fine-tune their concept and ensure it aligns with market demand.

Additionally, they evaluate the concept's scalability and potential for growth, considering factors such as market size, revenue potential, and scalability. Through this iterative process, the startup concept evolves into a robust business model that serves as the blueprint for the startup's operations, guiding decisions related to product development, marketing strategy, and resource allocation.

How to Start a Business Essay?

Starting a business involves several key steps. Firstly, it's essential to identify a viable business idea that aligns with your passion, expertise, and market demand. Research your target market, competitors, and industry trends to refine your concept. Once you have a solid idea, develop a comprehensive business plan outlining your goals, strategies, and financial projections. This plan will serve as a roadmap for your venture and help secure funding or investment.

Next, you'll need to choose a legal structure for your business, such as a sole proprietorship, partnership, corporation, or LLC. Register your business name and obtain any necessary licenses or permits. Set up your business finances, including opening a business bank account and obtaining any required insurance. Finally, develop a marketing strategy to promote your products or services and attract customers. Building a strong online presence, networking with other businesses, and utilizing social media can all be effective marketing tactics. With careful planning and execution, you'll be well on your way to launching a successful business. Now, let’s review a basic business essay outline:

Introduction

• Grab the reader's attention with an interesting fact, quote, or anecdote related to the topic.
• Provide context and background information on the topic.
• State the main argument or purpose of the essay.

Body Paragraphs

• Paragraph 1: Describe the current business landscape, including trends, challenges, and opportunities.
• Paragraph 2: Discuss the significance of developing a comprehensive business plan for startups and established businesses.
• Paragraph 3: Outline the essential components of a business plan, such as market analysis, competitive analysis, marketing strategy, operations plan, and financial projections.
• Paragraph 4: Explore different sources of funding available to entrepreneurs, including bootstrapping, loans, venture capital, and crowdfunding.
• Paragraph 5: Discuss effective marketing strategies for promoting products or services, building brand awareness, and attracting customers.
• Paragraph 6: Highlight the significance of delivering exceptional customer service and building strong relationships with customers.
• Paragraph 7: Emphasize the importance of adaptability and innovation in responding to market changes and staying competitive.
• Summarize the main argument or purpose of the essay.
• Review the main points discussed in the body paragraphs.
• Leave the reader with a thought-provoking idea, question, or call to action related to the topic.

Business Paper Format

The business essay format typically follows a structured outline, including the following sections:

• This page includes the paper's title, your name, the name of your institution (if applicable), and the date.
• A brief summary of the paper's main points, usually around 150-250 words, providing an overview of the topic, purpose, methodology (if applicable), and key findings or conclusions.
• This section introduces the paper's topic, provides background information, and states the purpose or objective of the study.

Literature Review

• A review of relevant literature and research on the topic, highlighting existing theories, studies, and findings related to your research question or problem statement.

Methodology

• If applicable, this section outlines the research methods and techniques used to collect and analyze data, including any tools, procedures, or sampling techniques.
• Presentation of the findings or results of your study, often including tables, charts, or graphs to illustrate data and statistics.
• Interpretation and analysis of the results, discussing their significance, implications, limitations, and relevance to the research question or problem statement.
• A summary of the paper's main findings and key points, restating the purpose and significance of the study, and offering recommendations for future research or practical applications.
• A list of sources cited in the paper, formatted according to a specific citation style (e.g., APA, MLA, Chicago).
• Optional supplementary materials include additional data tables, survey instruments, or detailed methodology descriptions.

How to Write an Introduction for a Business Essay?

Writing an introduction for a business essay requires capturing the reader's interest while setting the stage for the topic you'll be discussing. Here's a guide to crafting an effective introduction:

Start with a Hook

• Begin with an attention-grabbing opening sentence to pique the reader's curiosity.
• This could be a surprising fact, a compelling statistic, a thought-provoking question, or a relevant quote from a business leader or expert.

Provide Context

• After the hook, provide a brief overview of the topic you'll address in the essay.
• Give the reader some background information to understand the significance and relevance of the subject matter.
• Explain why the topic is important and matters in the business world.

State Your Thesis

• End the introduction with a clear and concise thesis statement that outlines your essay's main argument or purpose.
• This statement should provide a roadmap for what the reader can expect to learn or discover in the essay.
• Make sure your thesis is specific, debatable, and supported by evidence you'll present in the body paragraphs.

Transition to the Body

• Use the end of the introduction to transition smoothly into the essay's main body.
• Briefly preview the key points or arguments you'll discuss in the subsequent paragraphs to give the reader an idea of what's to come.

How to Write a Business Essay?

Let's kick things off with a solid step-by-step guide that sets the stage. We're about to dish out some awesome business essay writing tips to make your essay shine like a beacon in a sea of words. So, buckle up, grab your pen (or keyboard), and let's get started on crafting an introduction that'll hook your reader from the get-go!

Understand the Business Assignment

Take the time to carefully read and understand the assignment prompt or guidelines provided by your instructor. Pay attention to any specific requirements, such as the length of the essay, formatting style, or particular topics to address. If you have any questions or uncertainties about starting a business essay, don't hesitate to seek clarification from your instructor to ensure you're on the right track before you begin researching and writing.

Research and Gather Information

Start your research by consulting various credible sources relevant to your topic. Utilize academic journals, books, reputable websites, and industry reports to gather information and evidence to support your arguments. Take detailed notes while conducting your research, recording key ideas, quotes, statistics, and their corresponding sources. Keep track of your sources to facilitate proper citation later on. Consider how you will engage readers in the business essay introduction – an anecdote, interesting quote, or relevant statistics.

Outline Your Essay

Create an outline for your how to start a business essay to organize your thoughts and structure your essay. Begin by outlining the main sections of your essay, such as the introduction, body paragraphs, and conclusion. Within each section, outline the main points you want to cover and the supporting evidence you'll use to support your arguments. Consider the logical flow of information and how each section relates to the overall thesis of your essay. Your outline serves as a roadmap for writing your essay and helps maintain coherence and clarity.

Write the Essay

With your outline in hand, start drafting your essay. Begin with a strong introduction that provides context for your topic, grabs the reader's attention, and clearly states your thesis or main argument. In the body paragraphs, develop each main point outlined in your outline, providing evidence, examples, and analysis to support your arguments. Ensure you cite your sources accurately and consistently throughout the essay according to the chosen citation style. Conclude your essay by summarizing the main points discussed in the body paragraphs and reinforcing the significance of your thesis. Leave the reader with a memorable closing thought or call to action related to the topic.

Revise and Edit

After writing a business essay, take the time to revise and edit it thoroughly. Review your essay for clarity, coherence, and logical flow of ideas. Check for grammar, punctuation, spelling errors, and any inconsistencies or gaps in your argumentation. Consider your essay's overall structure and organization, making adjustments as needed to improve readability and coherence. Seek feedback from peers, tutors, or instructors to gain fresh perspectives and identify areas for improvement. Make revisions based on the feedback received, and refine your essay until you are satisfied with the final draft. Finally, proofread your essay one last time to ensure it meets all the requirements and is ready to be submitted.

Startup Business Ideas

• A meal prep delivery service.
• An online marketplace for handmade goods.
• Mobile car wash and detailing.
• Virtual tutoring platform.
• Dog walking app.
• Farm-to-table food delivery.
• Outdoor gear rental.
• Virtual event planning.
• Home repair matchmaking.
• Maternity wear rental.
• On-site beauty services.
• Freelance photography booking.
• DIY crafting workshops.
• Mobile bike repair.
• Sustainable flower delivery.
• Virtual fitness training.
• Plant-based meal kits.
• Urban parking rental.
• Houseplant subscription.
• Fresh produce delivery.
• Mobile car maintenance.
• Gift concierge service.
• Virtual cooking classes.
• Errand running assistance.

Business Essay Topics

• Social media marketing's impact on small businesses.
• Improving employee engagement strategies.
• E-commerce: Challenges and opportunities.
• Customer relationship management success.
• Sustainable business practices and benefits.
• The gig economy: Pros versus cons.
• Workplace diversity and inclusion.
• Technology's influence on operations.
• Managing remote teams effectively.
• Corporate social responsibility in ethics.
• Entrepreneurship: Challenges and successes.
• Globalization's impact on SMEs.
• Leadership in organizational change.
• Workplace wellness programs.
• Business ethics in the digital age.
• The power of branding: Identity creation.
• Crisis management strategies for resilience.
• Efficient and sustainable supply chain management.
• Future of work: Trends and implications.
• Business innovation: Creativity and adaptation.
• Financial management for small businesses.
• Data privacy and security.
• Effective time management strategies.
• Emotional intelligence in leadership.
• Company culture: Retention and satisfaction.

Do’s and Don’ts of Business Essay Writing

There are certain rules for writing a business essay that you must follow and particular don’t-do-this issues that you should avoid.

• Clearly understand the essay prompt and adhere to any guidelines provided.
• Conduct thorough research using credible sources to support your arguments.
• Create a well-organized outline to structure your essay effectively.
• Craft a strong introduction that grabs the reader's attention and states your thesis clearly.
• Provide evidence and examples to support your arguments, using proper citations.
• Maintain a formal and professional tone throughout the essay.
• Use clear and concise language, avoiding jargon or overly complex terminology.
• Proofread your essay carefully to eliminate errors in grammar, punctuation, and spelling.
• Conclude your essay by summarizing key points and restating your thesis.

Don'ts:

• Don't plagiarize or use someone else's work without proper attribution.
• Avoid going off-topic or including irrelevant information in your essay.
• Don't rely solely on personal opinion; support your arguments with evidence and analysis.
• Avoid using informal language or slang in your writing.
• Don't rush through the writing process; take the time to revise and edit your essay thoroughly.
• Avoid making unsupported claims or assertions without evidence to back them up.
• Don't forget to cite your sources properly according to the chosen citation style.
• Avoid overloading your essay with too much information; focus on quality over quantity.
• Don't neglect the importance of formatting and presentation; ensure your essay is well-structured and visually appealing.

Business Essay Example

Here’s an example of a business essay that will be an excellent source of inspiration and formatting hints. If you want a new paper of similar quality, feel free to leave a quote.

Business essays serve as invaluable learning tools for students, providing them with a platform to apply theoretical concepts to real-world scenarios and develop essential skills for success in the business world. Students hone their critical thinking, problem-solving, and communication abilities by learning how to set up an essay , research topics, analyze facts, and write eloquently about various business topics. Business essays also encourage students to stay updated on current trends and developments in the business landscape, fostering a deeper understanding of industry dynamics and challenges. Moreover, writing business essays cultivates students' ability to formulate well-reasoned arguments, articulate their ideas effectively, and present information in a structured and persuasive manner, all of which are crucial competencies in professional settings.

Frequently asked questions

How many paragraphs does a business essay have.

She was flawless! first time using a website like this, I've ordered article review and i totally adored it! grammar punctuation, content - everything was on point

This writer is my go to, because whenever I need someone who I can trust my task to - I hire Joy. She wrote almost every paper for me for the last 2 years

Term paper done up to a highest standard, no revisions, perfect communication. 10s across the board!!!!!!!

I send him instructions and that's it. my paper was done 10 hours later, no stupid questions, he nailed it.

Sometimes I wonder if Michael is secretly a professor because he literally knows everything. HE DID SO WELL THAT MY PROF SHOWED MY PAPER AS AN EXAMPLE. unbelievable, many thanks

New posts to your inbox!

Stay in touch

How to Start a Business: A Startup Guide for Entrepreneurs [Template]

Updated: August 27, 2024

Published: August 26, 2024

I started a local HVAC business in the summer of 2020, and since then, I’ve learned a lot about which steps are most important for getting a business venture off the ground. To help you make your business idea a reality, I've put together a complete guide that walks you through the steps of starting a business.

The guide covers every step I’ve discovered you need to start a business, from the paperwork and finances to creating your business plan and growing your business online. At the bottom, you’ll find a library of the best free tools and resources to start selling and marketing your products and services.

Let's get started.

Table of Contents

What do you need to start a business?

How to start a business, how to make a business plan, how to decide on a company name, how to choose an ownership structure, how to register your business, how to comply with legal requirements, how to find funding for your new business, how to create a brand identity for your new business, tips for starting a business, resources to start a business, how to start a business online, top tips from founders and entrepreneurs, next steps: getting ready to launch your business.

Free Business Startup kit

9 templates to help you brainstorm a business name, develop your business plan, and pitch your idea to investors.

• Business Name Brainstorming Workbook
• Business Plan Template
• Business Startup Cost Calculator

Download Free

All fields are required.

You're all set!

Click this link to access this resource at any time.

• Business Plan: Your plan is a document that provides in-depth detail about your business and its short- and long-term strategies.
• Business Name: Your name is what you’ll call your company on all official documentation and licenses.
• Business Structure: Your structure refers to the type of leadership and ownership your business will operate under.
• Business Registration: Your registration is a credential with state authorities that allows your business to operate legally.
• Legal Requirements: Your other legal requirements include business licenses and permits beyond the initial registration.
• Funding: Your sources of funding refer to business grants, loans, and personal savings.
• Branding: Your branding refers to the unique identity and image you create for your business.

Every budding entrepreneur wants more visitors, more qualified leads, and more revenue. But starting a business isn’t one of those “if you build it, they will come” situations. So, if you’re one of the 26% of entrepreneurs who got started out of passion, know that you’ve still got to run the business side of the business.

So much of getting a startup off the ground has to do with timing, planning, and the market, so consider if the economic conditions are right to start a company and whether you can successfully penetrate the market with your solution.

In order to build and run a successful company , you’ll also need to create and fine-tune a business plan, assess your finances, complete all the legal paperwork, pick your partners, research apps for startup growth, choose the best tools and systems to help you get your marketing and sales off the ground … and a whole lot more.

When I first started my business, I felt overwhelmed by the sheer magnitude of requirements, which is why I’ve summed up the process to make it easier for you.

In brief, the requirements for starting a business are:

• A business plan.
• A business name.
• An ownership or business structure.
• A business registration certificate.
• A legal license or seller’s permit (as well as other legal documents).
• A source of funding.
• A brand identity.

Without these elements in place, you unnecessarily risk your new business’s future. Now, let’s go over these basic steps for starting a business.

• Write a business plan.
• Choose a business name.
• Choose an ownership structure.
• Register your business.
• Review and comply with legal requirements.
• Apply for funding.
• Create a brand identity.

Having a great business idea is only part of the journey. In order to be successful, you’ll need to take a few steps to get it off the ground. In order to refine your business idea and set yourself up for success, consider doing the following:

1. Write a business plan .

Your business plan maps out the details of your business and how you plan to run it. Yet, with 70% of entrepreneurs starting their business out of a need for a lifestyle or career change and 26% out of passion or a great idea, many don’t take the time to create a business plan.

Below are the key elements in a business plan template, details about what goes into each of them, and example sections at the bottom. You’ll also learn tips for writing a business plan .

1. Use a business plan template .

Free Business Plan Template

The essential document for starting a business -- custom built for your needs.

• Outline your idea.
• Pitch to investors.
• Secure funding.
• Get to work!

2. Narrow down what makes you different.

Before you start whipping up a business plan, think carefully about what makes your business unique first. If you’re planning to start a new athletic clothing business, for example, then you’ll need to differentiate yourself from the numerous other athletic clothing brands out there.

You’ll want to answer questions like some I’ve identified below (keeping in mind to adapt them to your industry):

• What makes yours stand out from the others?
• Who are you planning to create clothing for?
• Are you planning to make clothing for specific sports or athletic activities, like yoga or hiking or tennis?
• Do you use environmentally friendly material?
• Does a certain percentage of your proceeds go to charity?
• Does your brand promote a positive body image?

Understanding your brand’s position in the market will help you generate awareness and sales.

Pro tip: Remember, you’re not just selling your product or service — you’re selling a combination of product, value, and brand experience. Think through these big questions and outline them before you dive into the nitty-gritty of your business plan research.

3. Keep it short.

Business plans are shorter and more concise nowadays than they used to be. While it might be tempting to include all the results of your market research , flesh out every single product you plan to sell, and outline exactly what your website will look like — that’s actually not helpful in the format of a business plan.

Know these details and keep them elsewhere, but exclude everything but the meat and potatoes from the business plan itself. Your business plan shouldn’t just be a quick(ish) read — it should be easy to skim, too, like the example below.

Pro tip: If someone who doesn’t know a lot about your service can easily digest your business plan, you’re doing it right.

The executive summary should be about a page long. It should cover:

• Overview . Briefly explain what the company is, where you’ll be located, what you’ll sell, and who you’ll sell to.
• Company profile. Briefly explain the business structure, who owns it, what prior experience/skills they’ll bring to the table, and who the first hires might be.
• Products or services . Briefly explain what you’ll sell.
• The market. Briefly explain the main findings from your market analysis and the product market fit .
• Financial considerations . Briefly explain how you plan to fund the business and what your financial projections are.

Featured Resource: Executive Summary Template

On the marketing side, you’ll want to cover answers to questions like:

• How do you plan to penetrate the market?
• How will you grow your business?
• Which channels will you focus on for distribution?
• How will you communicate with your customers?

Marketing trends change year after year, so be sure to keep up on the latest trends by subscribing to the Hubspot Marketing blog .

Pro tip: Samar Owais, Founder of Emails Done Right , shared her top advice: “Never stop marketing. You don‘t have to use every marketing strategy, tactic, or medium out there but you do have to market consistently. Pick 1-3 things that work and don’t stop doing them even when you're over capacity.”

On the sales side , you’ll need to cover answers to questions like:

• What’s your sales strategy ?
• What will your sales team look like, and how do you plan to grow it over time?
• How do you plan to scale for growth ?
• How many sales calls will you need to make to make a sale?
• What’s the average price per sale?

Speaking of average price per sale, you’ll want to go into your pricing strategy as well.

Featured Resource: Marketing & Sales Alignment Template

Cons of LLCs

• LLCs are often more complex than sole proprietorships or partnerships, which means higher initial costs.
• Certain venture capital funds are hesitant to invest in LLCs because of tax considerations and the aforementioned complexity.

How Taxes Work for LLCs

LLCs have the benefit of a “flow-through” tax treatment, meaning that the owners — not the LLC — are the ones who are taxed. Having only one level of tax imposed makes taxes easier. Find IRS tax forms here .

Questions to Determine If an LLC is Right For You

Would you prefer to be held minimally liable for the business and its financial outcomes?

• If so, an LLC is an excellent choice to protect your personal assets and finances. This is a good choice even if you’re starting a freelance business on your own.

Do you have the budget to pay LLC fees?

• LLC registration fees aren’t high, but they’re still an additional expense your business will need to budget for.

4. Corporation

23 Data-Backed Tips for Running a Successful Business

How to Write a Business Proposal [Examples + Template]

11 Top Free Accounting & Bookkeeping Software Apps for 2022

Niche Markets: Examples, Benefits, Expert Insight, & How You (a Savvy Entrepreneur) Can Find Yours

The Straightforward Guide to Value Chain Analysis [+ Templates]

The 11 Best Crowdfunding Sites for Businesses (& Key Tips From Successfully Crowdfunded Entrepreneurs)

Powerful and easy-to-use sales software that drives productivity, enables customer connection, and supports growing sales orgs

• Career Advice

Don't Sell Yourself Short

By  Manya Whitaker

You have / 5 articles left. Sign up for a free account or log in.

One of the joys of being a scholar in an applied field like psychology or education is the ability to work on the ground with “real people.” In other words, as an educational developmental psychologist, my work happens to easily skip out of the Ivory Tower. Though I am trained as a developmental psychologist, my research is situated firmly within education. Largely construed, I investigate the sociocontextual factors that affect low-income students’ academic achievement. More simply put, I work with teachers, admin, and families to improve academic outcomes for marginalized students. For many years, this took the form of teacher in-service workshops focused on parental involvement. Because schools serving underrepresented demographics struggle with facilitating meaningful parental participation in children’s schooling, I help them figure out how to access, communicate with, and engage “hard-to-reach” parents.

As an off shoot of that work, I was often asked to hold workshops at small conferences or to sometimes attend open houses and speak to parents. Once word got out that a young Black woman was working with families in urban schools, I received more requests to give keynote addresses, tutor, or come speak to first generation hopefuls at area high schools. I ended up spending so much of my free time doing such things, I had no choice but to cut way back. But, in cutting back I realized how much I missed engaging with people in ways that affect immediate change. There is something special about sitting in a family’s home, at their kitchen table, speaking with the very people who constitute the “subject” of your research. I enjoyed hearing their stories and brainstorming ways to help their children. I liked being an advocate for families who may not have the time, energy, or information to effectively advocate for themselves.

While talking to a good friend who has much more of an entrepreneurial mind than me, it dawned on me that I could start an educational consulting business. Like a good researcher, I did some investigation into what it meant to run a small business. I spoke with my father who has successfully run his own small business for over a decade. I spoke to friends with all kinds of businesses in varying stages of businessdom. While the initial work seemed intense, the service itself was no more work than I’d been doing for free. And as my father always says “don’t sell yourself short”…so I decided not to.

Before I got into the nitty gritty of starting my business, I paused to consider the implications for my full-time career as a tenure track professor. Was this even ethical? Was I violating some implicit agreement between myself and the Academy? Did my knowledge and skills belong solely to the institution and its concomitants? No, surely not. That’s absurd….right?

The fact that I paused to think about this quandary more than once speaks to the ways in which academics are inculcated into academia in a sometimes unhealthy manner. I’m not sure what it is about graduate school that makes one’s intellectual property feel like the property of others. It might be the fact your advisor or committee has so much control over what you actually produce, that it indeed feels as though your words aren’t your own. Or maybe it’s the publish or perish mantra that really means “ it is your duty and obligation to publicly share your thoughts for the good of the public .” I find it odd that in other professions, people are paid well for the knowledge and skills they spend years acquiring and refining. But academics are expected to share their assets solely for the glory and grandeur of it? Yes, tenure is a huge benefit that is often directly correlated with the amount and quality of one’s scholarly contributions; however, other professions have this too. They call it a “promotion” or a “raise.”

Getting Started

I decided that I, too, deserved a promotion and a bonus for all the extra work I do to translate my research into practice. I therefore brainstormed company names (of course that was my first task—it was by far the most fun), chose colors, hired an artist to create a logo, and filed my business as an S-corporation with the federal and state government. Then the school year started.

Being realistic, I knew that starting a small business in August was not the best timeline. I knew once school started my efforts would be 100% devoted to a successful first year on the tenure-track. I made plans to reengage with my business in June of the following year, and I did just that. This past June, I conducted market research on types of services, prices, and timelines of most interest to my target demographic. I also asked them about the possibility of utilizing consulting services via social media and other popular forms of technology in lieu of face-to-face interactions. I was surprised to see that most participants in my pseudo-study were more concerned with the price of services than the mechanism through which they would be delivered.

After creating a list of services and running my pricing models by other entrepreneurs in similar fields, I created marketing materials. Besides business cards, I also ordered rack cards, folders with my logo on them, and printed a “menu” of services with accompanying fees. I considered creating a Facebook page, but that didn’t seem like it would be worth my time and effort. If I know anything about education, I know that information spreads through word of mouth, not written materials. To help spread the word about my business, I did two things: the first was becoming an affiliate member with the gym where I am a member. The second was offering a 20% referral bonus. The latter is how I secured clients 2 and 3. I considered advertising my services in the newspapers of the local colleges, but the cost would offset the potential financial gain, so I decided against it.

I’ve been in business a few short months, but so far it’s going well. The academic year started a few weeks ago and I admit that it’s tough coming home from a full-time job to do more work. But it is very much worth it. My clients are extremely appreciative and more than willing to refer me to their family and friends. That’s more than can be said of the outcomes of publishing in academia.

For the professors who think that maybe they too want to start a business, I have a few bits of advice:

• Be clear in why you want to start a business. Writing a mission statement should be one of the first things you do. I referred to the Small Business Administration for help in creating a business plan, deciding my business structure, and learning about the legalities of owning a business.
• Research your market. Ask them what services are of interest, how much they would be willing to pay, and any other information necessary to execute your idea.
• Apply for grants to help fund your business. There are dozens of grants for women and people of color specifically for small business owners.
• Similarly, make a budget. And make sure your budget includes the taxes you pay on your earnings. This will also help you decide appropriate price points for your services/products.
• Be realistic in your timeline for development and growth. Starting a business takes a lot of time and thought. Decide if this is the appropriate time in your life to start such an important endeavor. Once you have clients, it is unlikely they will care as much about your tenure clock as you.
• Start small. Offer your services/products for free or at a reduced cost for a while. Then, have those clients write reviews and help spread the word about your business.
• Grow slowly. As you gain clients, it will be tempting to hire more people to help you meet the demand; however, remember that like being a professor, owning a business is a learning process. Consider the pros and cons of having employees and/or business partners. Always refer back to your mission statement as your guiding rule.
• Continue to improve your product. It is not only articles that benefit from a good R&R (revise & resubmit).

To other professors for whom owning a business is not desirable, I encourage you to find other ways to utilize your talents. Perhaps you could write a blog, or better yet, children’s books! Perhaps you can volunteer in community organizations providing services to those who will not get to meet you within the economically discriminatory walls of academia. Or perhaps you can just talk to whomever you please about whatever you please, without the pressure of “perishing” after the conversation. The knowledge is yours to do with what you choose.

Anti-DEI Bills Failed in Kentucky. Universities Are Restricting It Anyway.

Some of the state’s biggest public institutions have voluntarily dissolved their DEI offices.

Share This Article

More from diversity.

Safeguarding Black Women Educators’ Mental Health

Campus leaders and colleagues must recognize their battle fatigue—and the sophisticated racism at its root—and work t

Hold Steady or Issue an Exit Ticket?

What’s really at stake when colleges lose faculty of color.

Top administrators must respond to increasingly pervasive legislation that hinders the recruitment, retention and vit

• Become a Member
• Sign up for Newsletters
• Learning & Assessment
• Diversity & Equity
• Career Development
• Labor & Unionization
• Shared Governance
• Academic Freedom
• Books & Publishing
• Financial Aid
• Residential Life
• Free Speech
• Physical & Mental Health
• Race & Ethnicity
• Sex & Gender
• Socioeconomics
• Traditional-Age
• Adult & Post-Traditional
• Teaching & Learning
• Artificial Intelligence
• Digital Publishing
• Data Analytics
• Administrative Tech
• Alternative Credentials
• Financial Health
• Cost-Cutting
• Revenue Strategies
• Academic Programs
• Physical Campuses
• Mergers & Collaboration
• Fundraising
• Research Universities
• Regional Public Universities
• Community Colleges
• Private Nonprofit Colleges
• Minority-Serving Institutions
• Religious Colleges
• Women's Colleges
• Specialized Colleges
• For-Profit Colleges
• Executive Leadership
• Trustees & Regents
• State Oversight
• Accreditation
• Politics & Elections
• Supreme Court
• Student Aid Policy
• Science & Research Policy
• State Policy
• Colleges & Localities
• Employee Satisfaction
• Remote & Flexible Work
• Staff Issues
• Study Abroad
• International Students in U.S.
• U.S. Colleges in the World
• Intellectual Affairs
• Seeking a Faculty Job
• Advancing in the Faculty
• Seeking an Administrative Job
• Advancing as an Administrator
• Beyond Transfer
• Call to Action
• Confessions of a Community College Dean
• Higher Ed Gamma
• Higher Ed Policy
• Just Explain It to Me!
• Just Visiting
• Law, Policy—and IT?
• Leadership & StratEDgy
• Leadership in Higher Education
• Learning Innovation
• Online: Trending Now
• Resident Scholar
• University of Venus
• Student Voice
• Academic Life
• Health & Wellness
• The College Experience
• Life After College
• Academic Minute
• Weekly Wisdom
• Reports & Data
• Quick Takes
• Advertising & Marketing
• Consulting Services
• Data & Insights
• Hiring & Jobs
• Event Partnerships

4 /5 Articles remaining this month.

Sign up for a free account or log in.

• Sign Up, It’s FREE

Starting a Business: Advantages and Disadvantages Essay

• To find inspiration for your paper and overcome writer’s block
• As a source of information (ensure proper referencing)
• As a template for you assignment

Introduction

Currently, the development of market relations implies a free and equal coexistence of various forms of entrepreneurship and sectors within each type of ownership. A special place in the international economy at this stage belongs to start-up businesses. These are small enterprises that do not require large initial investments and guarantee a high rate of turnover of resources that can quickly and economically solve the problems of economic restructuring.

The formation and saturation of the consumer markets are the key elements in the current destabilization of the economy. It should be noted that for a highly monopolized economy, the small business acquires paramount importance since it makes a significant contribution to the development of a competitive environment. However, there are both rewarding advantages and serious disadvantages of starting a business, which need consideration.

If a person plans to open a business, it is important to consider the upcoming possible gains and losses. People who have already passed this way advise to divide the estimated income by two and the cost multiplied by the same amount. After all, one can never foresee all the risks that await any entrepreneur. An important factor is the personal qualities necessary for starting and running a business. If positive prospects do not seem attractive compared with the possible difficulties, it is likely that it is better to concentrate on employment. In addition, in the case of successful career advancement, an individual is able to also achieve a high professional and financial level.

Starting a business is always accompanied by risk factors; therefore, a starting entrepreneur will need a lot of enthusiasm, the ability to make non-standard decisions, and the willingness to take responsibility. However, the possible rewards for hard work can be significant. Any business requires constant attention and development; otherwise, it will not be victorious in the competitive market.

By analyzing international and domestic experience in the development of entrepreneurship, the following benefits of starting a business can be pointed out: faster adaptation to local business conditions, greater independence of actions, and flexibility in decision making. In addition, it allows people to have relatively low costs in the implementation of activities, especially management cost, and a great opportunity for an individual to realize his/her ideas (Jackson, 2015). Starting a business enables one to show one’s abilities with lower initial capital requirements and the capability to quickly introduce changes in the product.

The entrepreneurs are more inclined to savings and investment, which has a beneficial effect on the whole enterprise. New businesses are more informed and adapted to the level of demand in local markets, often produce goods by order of specific consumers, and provide a livelihood to a substantial number of employees (Amankwah-Amoah, Boso, & Antwi-Agyei, 2018). In addition, small start-up businesses contribute to greater growth in employment compared with large companies, thereby influencing the spread of practical knowledge and the training of professionals (Jackson, 2015). Small and medium-sized enterprises, as compared with large ones, in certain countries dominate both in the number and proportion in the production of goods.

There are several advantages to starting a business, and the biggest benefit is money. An employee working for someone is confident that he/she will receive a salary. A person can get paid only within the limits that have been established beforehand. However, if an entrepreneur starts a business, then with proper management of his/her business, he/she can hope to increase profits and income.

Another significant benefit of starting a business is the ability to manage time without one’s approval personally. It is among the main reasons that make a company attractive for many. It is also plausible to state that a businessman has the opportunity to do what he/she desires. In addition, when an individual starts a business, his/her interests in work are always pursued. There is excitement associated with an increase in personal profits. Moreover, it is not at all interesting for the majority of employees to increase profits for employer organization. The advantage of starting a business is that it’s not mandatory to be held accountable to anyone because a person is independent and takes responsibility for his/her actions. Establishing an individual schedule is also a distinct advantage.

Starting a business gives an entrepreneur freedom from the desires and whims of superiors. A person will not be worried by thoughts of whether he/she will be fired tomorrow or not. An entrepreneur will not be delayed wages, not pulled out of the weekend or vacation, and will not worsen working conditions. If a businessperson sees potential in IT, such as 3D technologies, virtual reality, or in new markets, such as trading in electronic cars, he/she can make a managerial decision to pursue these markets. The next positive side of the business is personal growth. Creating and starting a business is an opportunity to check what an individual is worth.

Overcoming difficulties, solving problems, and achieving a goal is an invaluable experience that will remain forever. In any hired job, a person will not be as satisfied with success as in his/her business. In addition, the social status of an entrepreneur is higher than that of a full-time employee.

Furthermore, the job search is often tied to one’s specialty and not to the area in which an individual would like to develop. When starting a business, an entrepreneur can choose any direction in which he/she wants to shape a firm. In addition, he/she can select and select the team with whom to work. Thus, there are a lot of advantages to starting a business. The scope of benefits may also include psychological comfort in communication.

A business owner can choose his partners and communicate with them freely. However, an entrepreneur possesses the full managerial right to enter into contracts and agreements only with those people who are pleasant to him/her and whom he/she trusts. A businessperson does not need to tolerate incompetent and inefficient employees because he/she can fire them.

Disadvantages

The practice of start-up businesses has specific problems, among which the most significant ones can be identified as higher levels of risk, therefore a high degree of instability in the market, and dependence on large companies. In addition, there are shortcomings in managing a business accompanied by poor managerial competence and heightened vulnerability to shifts in the economy. Difficulties in obtaining loans and borrowing additional funds and uncertainty of business partners when concluding agreements are among the disadvantages of starting a business.

Deficiencies and failures in the operation of businesses are determined by both internal and external causes, including the operating conditions of start-up enterprises. Studies show that the majority of failures of starting firms are associated with professional incompetence or managerial inexperience of small and medium business entrepreneurs (Nikolaev, Boudreaux, & Wood, 2019). There is also a low survival rate among new companies due to market competitiveness.

The most common reasons for failure are incompetence, unbalanced experience, and the lack of experience in commerce, finance, supply, production, management, and partnerships. Common causes of bankruptcy for small firms are business neglect, poor health or bad habits of the head of the company, and disasters, such as fires, theft, and fraud (Chadwick & Raver, 2018). Small businesses’ chances of success increase as they grow older. Firms that do not change their owners for a long time bring in a higher and more stable income. American statistics show that women-owners of small firms are more successful in business than men (Chadwick & Raver, 2018). In the course of the research, it is noted that entrepreneurs who work for prolonged periods succeed.

Moreover, if not one person is involved in the management, but an entrepreneurial team that consists of multiple people, the chances of success are higher due to collective decision making is more professional (Abd-Hamid, Azizan, & Sorooshian, 2015). The size of financing at the first stage of their existence also affects the viability of small firms. The greater the initial capital invested in a small firm, the greater is its ability to maintain activity during crisis periods.

A constant search for emerging and disappearing social needs and continuous adaptation to them form the basis of the small business strategy. Some Western experts tend to consider small business as a school of new personal relationships, a testing ground for testing methods and principles of organizing entrepreneurship in the future. However, due to the objective availability of less favorable economic conditions than that of large enterprises, small businesses are less stable and competitive and therefore need government support by federal and regional programs to support and develop small businesses.

The major disadvantage of starting a business is an increased level of responsibility. Unlike hired work, a businessperson has to be responsible for everything. At first, he/she may be a salesman, an accountant, a janitor, and a lawyer in his/her company. In addition, any key problem or error cannot be resolved by a colleague or leader. An entrepreneur has to continually make decisions on which the further development of a business depends or which can lead to its complete collapse.

Another big drawback of starting a business is complexity; therefore, an entrepreneur has to go through numerous mistakes to succeed, often without knowing if he/she is going in the right direction. The search for start-up capital, networking with partners, the struggle for a place in the market are among the frequent challenges for a firm. Meanwhile, a quick payback for a businessperson is not guaranteed. He/she needs to understand in advance what difficulties he/she will have to go through. The next disadvantage is the instability, and it another frightening barrier for starting entrepreneurs. No matter how much money he/she invests, there is always a chance that it will not be sufficient. However, even if everything does not end in failure, then instead of huge profits, a person can barely make ends meet.

To sum up, it is highly relevant to realize that numerous and sometimes unidentifiable factors influence the failure or success of a business. There are certain risks of business going bankrupt, insufficient income, and stress from increased amounts of responsibility. Nevertheless, starting a business also offers an opportunity to earn an unlimited number of rewards, both financially and emotionally. An entrepreneur can adequately regulate and manage a firm, and he/she is able to freely implement the important managerial decision.

Abd-Hamid, Z., Azizan, N. A., & Sorooshian, S. (2015). Predictors for the success and survival of entrepreneurs in the construction industry. International Journal of Engineering Business Management, 1 (1), 2-5.

Amankwah-Amoah, J., Boso, N., & Antwi-Agyei, I. (2018). The effects of business failure experience on successive entrepreneurial engagements: An evolutionary phase model. Group & Organization Management, 43 (4), 648–682.

Chadwick, I. C., & Raver, J. L. (2018). Psychological resilience and its downstream effects for business survival in nascent entrepreneurship. Entrepreneurship Theory and Practice, 1 (2), 1-6.

Jackson, T. (2015). Entrepreneurship training in tertiary education: Its development and transfer. Local Economy, 30 (5), 484–502.

Nikolaev, B., Boudreaux, C. J., & Wood, M. (2019). Entrepreneurship and subjective well-being: The mediating role of psychological functioning. Entrepreneurship Theory and Practice, 1 (1), 1-7.

• Crowdfunding and Business Ownership Options
• Governmental Role for Business
• Robber Barons and Their Role in the American Economy
• Start-Ups and Legal Issues in North Carolina
• Starting Your Own Business
• Family Business, Its Philosophy and Strategy
• Entrepreneurship and Managerial Roles Distribution
• Business Failures: Reasons and Recommendations
• Richard Branson's Entrepreneurial Profile
• Successful Entrepreneurship in Action
• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2021, June 2). Starting a Business: Advantages and Disadvantages. https://ivypanda.com/essays/starting-a-business-advantages-and-disadvantages/

"Starting a Business: Advantages and Disadvantages." IvyPanda , 2 June 2021, ivypanda.com/essays/starting-a-business-advantages-and-disadvantages/.

IvyPanda . (2021) 'Starting a Business: Advantages and Disadvantages'. 2 June.

IvyPanda . 2021. "Starting a Business: Advantages and Disadvantages." June 2, 2021. https://ivypanda.com/essays/starting-a-business-advantages-and-disadvantages/.

1. IvyPanda . "Starting a Business: Advantages and Disadvantages." June 2, 2021. https://ivypanda.com/essays/starting-a-business-advantages-and-disadvantages/.

Bibliography

IvyPanda . "Starting a Business: Advantages and Disadvantages." June 2, 2021. https://ivypanda.com/essays/starting-a-business-advantages-and-disadvantages/.

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

• Basic site functions
• Ensuring secure, safe transactions
• Secure account login
• Remembering account, browser, and regional preferences
• Remembering privacy and security settings
• Analyzing site traffic and usage
• Personalized search, content, and recommendations
• Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Cookies and similar technologies are used to enhance your experience by:

• Remembering general and regional preferences
• Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy .

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy .