Essay Sample on Underemployment Crisis: Exploring the Benefits of Self-Employment

Introduction

In the United States, the current underemployment rate is 3.6% which means abled people who are actively looking for jobs but cannot find a job is high. After finishing university, going into bruise is the best and only option. This is the same problems in Australia because only a few graduates get employed once they finish colleges. The main solution to the high rate of unemployment is entrepreneurship.

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Reason for Choosing Self-Employment

The main reasons for choosing self-employment include:

The be in gainful employment. Without work, bills cannot be played, the quality of life declines and debts pile up. Therefore, the first reason for going into business is to get employed and make money. Financial independence can only come when one has established a startup and is making his own money.

The second reason is to be one's own boss and have full control over the business, working hours, dress codes and make decisions.

The third reason is to leave behind a legacy for the family. Instead of working for a company for one's whole life, one can start a business that they will run with the family and leave for that family to run. This way, the family will not experience poverty either will they be jobless. Finally, the decision to go into business is to create employment for friends and relatives. In most cases, unemployed people depend on one person who is also the breadwinner. In such a case, the strain on the employed person's resources is too high. However, if everyone around is employed and earning every minimum wage, it is easy to develop as a family than when only one person is employed. Therefore, self-employment or entrepreneurship will reduce financial dependency.

Your Choice of the Industry - Retail Goods and Services

The fast food sectors especially the restaurant industry is the most profitable industry in the 21st century. Most of the people are upwardly mobile and are either employed by incorporation or are self-employed. These people do not have time to go back home for meals because of time and the risk of delays in traffic. Therefore, their only option is to take their lunch and dinner in a fast food restaurant. These retardants have a wide range of prepacked food from which the customer can choose from. The demand for fast food will continue to rise despite the intense competitions in the market and health care. Therefore, the cosmonaut will likely develop its market share in the same industry, have loyal customers and still drive revenue and growth. The company will be retailing fast foods which means that it will be operating in the retail industry. The restaurant is in the retail industry because they sell goods in small quantities to the buyers who are the end consumers.

Choice of Participating in Business

There are very many market entry strategies. The company has the option of buying shares in existing companies, buying an existing business, or starting from nothing or through the franchise. However, the company has decided to enter the market through a franchise under the banner of McDonald's. If the company is to start from nothing, it will take the company many years before it gains traction, develops its customer base and develop its brand. It will also take the company many years before it breaks evens and starts making profits. Therefore, the company has chosen to enter the market through a franchise. As a franchise, the company will pay McDonald's an initial fee as striated in McDonald's franchise contracts and ongoing royalties for using the company's names, brand, and trademarks as well as ongoing support.

Choice of Business Model - Franchise

The company will buy the McDonalds brand name which most companies that were starting from nothing cannot have access to. This way, the company will not have to market from scratch as it will have an established brand name. the other benefits are that the company will adopt an established operating system and get training on how to use the company's tools, modes operandi, and equipment. The probability of making a profit as a franchise is much higher because wit the established brand names, the customer will be confident of the products and service quality. The company will adopt a standardized procedure that all McDonald's stores follow, the company will deliver the same service quality and the servicescape will be unique just like America.

Another benefit of using the franchise method as an entry strategy is that the company will benefit from rigorous market research done by the franchisor. The confidence that comes with the franchise is that the demand for the company's products and services is already established. As a franchise, the management will be trained on how to position itself and differentiate itself from the competition. Finally, as a franchise, the economics of scale in buying supplies as the materials will be brought through the franchisor. The company will also enjoy economies of scale in the advertisement, as well as in negotiation for three location and lease terms

Choice of Channel to Market - Physical, Online, and Omni Channel

Physical online and Omni channels marketing channels are all effective channels to market the company. However, omnichannel is the selected channel because of some inherent advantages. Omnichannel meaning combining multiple channels to leverage the benefit of each channel. Customer purchases their foods thigh different wats. Therefore, the company must capture it considers in different ways that work for them. E-commerce has grown significantly over the last ten years. however physical stores are still dominating the Rastafarist and fast food categories. Therefore, to succeed in the market, the company will sell through its physical store and fulfill online orders. Those customers who want a convenient method for ordering and having their foods delivered to their convenient location.

Even though 95% of the shoppers are brick and mortar stores owners, 61% of the shopper s prefer the physical stores while the remaining 39% prefer online retailer. Therefore, the comonomer will use the physical stores to boost its revenue from the online channels. A total of 73% of the customers who prefers shopping across channels at their convenience. Therefore, the company will adopt the omnichannel method to exploit the opportunities brought by omnichannel shoppers while still selling through the physical stores and fulfill online orders. The advantages of the Omni channels business is real-time shopping conveniences and ease of customer conversion. The company will develop a good-looking e-commerce website. The company will also get an accurate retail insider on all the customer expectations to offer them seamless customer experience.

The three advantages of the omnichannel systems are the cross channels inventory visibility, all activities related to me the business including pucras, sales, accounting data, investor data as well as future expansion plans are managed through centralized systems. Thus, the way the company will manage all processes from a central point

As for marketing, omnichannel marketing enablers the company to meet all the customer segments. The online stores are for adults who are tech-savvy, the mobile apps are for the tech-savvy teenager and the physical stores for upwardly mobile customers. It is also ways to retain omnichannel customers as compared to the physical store's customers. The company can catnip neu to engage us customs through the social networks, live chat, emails, call entrees., the customers can get timely feedbacks and the company can respond to queries and requests on demand. The company will continue to lee track of its customers and customer satisfying in relations to each product or service

Choice of Legal Structure - Partnership

The company will be a partnership. Even though owning a sole proprietorship is a good idea, there are also of pressures that come with sole proprietors such as lack of people to delegate some duties too. Even with the benefits of making a personal decision, there are sometimes than one may want to quit (Andrade & Raquel, 2010). However, with the partnership, the most decision will be made by the small team of business partners who also contribute capital. It is only through partnership that the management can reduce their dependence on debt but maximize their access to equity as the partners will contribute capital. The risk of closure is also receded just as the risk of action is reduced. In partnership, the liabilities are tied to the asset of the business only and does not extend to the asset of the partners. In the most sole proprietorship, unless it is a limited liability business, the owner might lose his personal property in the event of abruptly. The other advocates are that in partnership, the management will not pay taxes on their incomes as the taxes are passed as profit or loss to each partner. Every partner will file a schedules K-1 form indicating they are aware of the partner's incomes as well as the decision and the tax credit atr8buted to each fine uncial year. Never, the less, the main limitation of the partnership is the cost of business as the partnership is required to furnish the registrar of companies with a lot of documents. The number of legal and accounting services requires increases the cost of operating a business as a partnership.

Choice of Financing the Business: Debt and Equity

The company will develop an optimal capital funding mix of debt and equity financing. The equity finances will be from the partner's contribution, equity means a block of ownership and is kin to holding shares in the company (Gombola & Marciukaityte, 2007). They are not returned with profits but represents ownership. 50% of the capital will be in the form of equity as the partners will contribute capital in exchange for business ownership (Mande, Park & Son, 2011). On the other hand, 40% of the business capital will be in the form of debt from Lalo banks in the country, debts are paid back after a predetermined period of times with interest. The company will strive to minimize debt and maximize equity. Other sources of capital funding include equipment lease and strategic partners with the suppliers. Angel investors, equity crowdfunding, and venture capitalists will be the company's source of the remaining 10% of capital (Chang & Dasgupta, 2003). There are several incubators and startup accelerators that can provide the necessary connection with the venture capitalists and angel investees.