Introduction
There are two major options for a person to earn his living. One is through getting a job in an organization while working for that organization which is created by others. The other option is to become self-employed through starting own business . In the case of the second option a person may start a big or small business depending on the investment, he has for the business. I have decided to start my own business and become self-employed. Since I have a little investment to start, I will start my business career through establishing a small business. I need to analyze the economic environment and producing equality in my business. The analysis of economic environment will provide me information about the field of business most suitable for me. The aim of developing equality in my business would result in running an ethically right business. I also need to formulate a retirement plan so that when I retire from the ownership of the business, I would still get some income or have enough money to live rest of my life without facing any financial difficulty.
Economic Conditions
Equality for Everyone
In order to produce equality for everyone in the business, I will run as well as the customers to whom I will offer services. As already discussed, my beauty parlor will provide beauty services to both males and females; therefore, the equality in terms of customers has been already established. In order to ensure equality for the staff working in the beauty parlor, I will formulate a work-based compensation system. In this system, the workers will get their salary on the basis of the work they have done during the week. For instance, if a worker has serviced 20 customers for their haircut then he/she will get a fixed amount multiplied by 20 for the week’s salary. This will result in equal opportunities for every single worker in the beauty parlor.
Retirement Plan
I need to formulate the retirement plan for myself as well as other staff in order to ensure that everyone feels connected to the business and work with high level of motivation in order to ensure that the beauty parlor succeeds in its business. I will establish a retirement fund for all the employees of the beauty parlor and ask them to chip in 10% of their salary for the fund. I will then deposit the fund into the bank and invest it into a highly stable company in the market every month. I will change the investment company each month in order to develop a strong portfolio that would mostly result in profit. I will invest the profits back into the same retirement fund. In this manner, the retirement fund will be rising with each moment. There will be two sources of investment in the retirement fund, first will be the 10% salary of all the employees and second will be the profit generated from the investment. If there is no profit generated by the portfolio developed by the retirement fund, the fund would be still getting some money from the salary of the staff. This would result in a highly stable and rising retirement investment. When a person gets retired from the beauty parlor, he will be given the option to either withdraw a certain amount from the fund at once at the time of withdrawal or keep on receiving monthly payments according to the profits generated by the investment. Providing these two options would result in providing flexibility in terms of retirement plan for the retiring person. It would be applicable to me as well and I will go for the second option to get monthly payments for the rest of my life. I will hand over the business to my children so that the business stays in the family and my initial concepts to run the business on certain rules would continue while providing equality to customers and staff. I will live my retirement life off the monthly payments that I will receive from the retirement fund according to my share in it.
Conclusion
There are a number of difficulties and challenges faced by small business owners and self-employed people . The economic conditions are a nightmare in these days for such people. I have devised a stable working plan for my business and I am quite confident that it will work and the business will be a success in future. My idea of running my own business even in worst economic conditions and a number of challenges is due to the fact that a self-employed person is more like a free bird who can make decisions on his own whereas a person working for someone else’s organization is like a bird in the cage who can’t even fly on his own and is dependent on the owner of the cage.
Works Cited
AARP. "Salaried Job vs. Self-Employment: How to Decide." August 2015. http://www.aarp.org/work/job-hunting/info-02-2009/salaried_job_vs_selfemployment.html. Online. 09 April 2016.
Beattie, Andrew. "5 Biggest Challenges Facing Your Small Business." 2016. http://www.investopedia.com/articles/pf/12/small-business-challenges.asp. Online. 08 April 2016.
National League of Cities. "Your Local Economic Strengths and Weaknesses ." 2013. http://www.nlc.org/find-city-solutions/city-solutions-and-applied-research/economic-development/the-role-of-local-elected-officials-in-economic-development/your-local-economic-strengths-and-weaknesses. Online. 08 April 2016.
Saad, Lydia. "Americans See Environment as Getting Worse." 20 April 2006. http://www.gallup.com/poll/22471/americans-see-environment-getting-worse.aspx. Online. 08 April 2016.
