Advantages and Disadvantages of Starting Business

Categories: BusinessReputation

There are both advantages and disadvantages to starting up a new business. In order to decide if the business is right for the company, it’s important to weigh the factors below:

  1. Established reputation The company has huge worldwide success for many years. As the reputation is already established, our new business will have a good foundation. Soon after, we can focus much of our efforts on building and expanding the business.
  2. Existing capitals Since we already have the existing customers, contacts, suppliers, staff and equipment, there is a saving on time, energy and money when we start magazines.

  3. And the solid client base and contacts can help to maximize the success of the new business. So, it’s very beneficial for starting the related products.
  4.  Established professional work team The professional work team is already built. As the existing employees have expertise and experience, they are more familiar with customers’ needs and wants, so we’ll have opportunities to add improvements, then increasing the chances of higher profitability is much sooner .

    Get quality help now
    Dr. Karlyna PhD
    Verified writer

    Proficient in: Business

    4.7 (235)

    “ Amazing writer! I am really satisfied with her work. An excellent price as well. ”

    +84 relevant experts are online
    Hire writer

  5. Lower start-up costs One of the most favorable aspects to starting magazines is the drastic reduction in start-up costs.

Because of the existing capital, we have no up-front cost or supply cost. We estimate our cost is $3. 00 per issue, which is much lower than the market average cost $4. 50. 5. High profit Besides the lower cost, advertising revenue will be generated by selling the advertisements. However, there are also disadvantages affect the new Business.

  1.  Intensive competition In magazine market, the primary competition is on the basis of price.

    Get to Know The Price Estimate For Your Paper
    Topic
    Number of pages
    Email Invalid email

    By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy. We’ll occasionally send you promo and account related email

    "You must agree to out terms of services and privacy policy"
    Check writers' offers

    You won’t be charged yet!

    And a very small difference in price will be noted by consumers. So, gift and promotional deals may be the popular ways to attract customers.

  2.  Technology trend The current advancements of technology allow companies to release devices which allow consumers to download e-books. And the accessing to the internet and new technological devices influence the demand for magazines. So, it’s important to consider what we can offer to win over customers from the competitors.
  3.  Financial risk The more important source of risk for most entrepreneurs is financial risk. Our investment is about $125,000. If our business doesn’t succeed well, the tendency is we won’t be able to have a return on investment.

Similar topics:

Competition Essays

Cite this page

Advantages and Disadvantages of Starting Business. (2020, Jun 01). Retrieved from https://studymoose.com/advantages-and-disadvantages-of-starting-business-essay

👋 Hi! I’m your smart assistant Amy!

Don’t know where to start? Type your requirements and I’ll connect you to an academic expert within 3 minutes.

get help with your assignment