A Chance Meeting and Exciting News - Essay Example

Business A chance meeting and exciting news When considering a new job, varieties of considerations have to be taken. Primarily, the proposed partnership is a risky but promising opportunity. The position at Engulf and Devour is prestigious, and its remuneration is sustainable. However, the fact that the situation is uncertain, similar to the working out of the partnership demands a critical assessment of the various options available. Making such a decision would have an impact on the overall outcome of an individual’s life. Having worked at the organization for quite some time, despite the company seeming a little bleak, it is relatively secure. A critical assessment of both options is necessary before the declaration of the decision. Primarily, the first question to address is the money issue. Is the new venture more lucrative than the current position? A critical analysis the remuneration offered here shows that for the first year, working with the partners as consultants would be more financially satisfactory. When the $50,000 is shared equally, the annual salary will be $200,000, which is $50,000 more than what Engulf and Devour are offering. However, this is only assured for the first year only. What happens in the second year if there are no clients? Regardless, comparing the $200,000 offer to the $150,000 provided by Engulf and Devour, the former seems more promising since both opportunities have various uncertainties. Taxation is a key consideration as well. With the partnership being a registered entity, the aspect of double taxation is a partner’s financial obligation. With this consideration, the payment promised by the partnership is much lower after taxation as compared what Engulf and Devour are offering. However, the partnership has a more promising financial future as compared to the job and Engulf and Devour. With the possibility of getting bigger clients, as the reputation improves, the promise of better incomes is higher in the case of the partnership as compared to the current job (Lee 109). Financial concerns are the primary concern for any aspiring entrepreneur. After the financial consideration, the next aspect to take into critical account is assessing the uncertainties of the current contract. What would happen if the contract were to be terminated before it was mature? Likewise, considering the terms of payment is equally crucial. Some clients prefer to pay after the completion of the contract, or on a monthly basis. When handling one’s own business, uncertainties are greater as compared to being employed. Assessing the payment terms is crucial. Cases of bad debts would compromise the initial plan. Despite the fact that the pay is more promising as a partner as opposed to as an employee, the uncertainty of the payment is much higher in the former (Lee 75). . Considering the demand of the product offered is crucial. How long will the services offered be marketable? The definition of the time-scope of demand assists the entrepreneur defines how long the services offered facilitate the sustainability of the business. Considering long-term scenarios is crucial. Scenario planning allows a majority of the entrepreneurs determine whether to venture into a business opportunity. Similarly, scenario planning also assists in the making of crucial decisions such as this one. For that reason, understanding the probability of business failure would prompt non-risk takers to stick with the secure jobs. However, risk takers can view the future in a positive light and opt to take the risk of starting a partnership. Arguably, understanding oneself is the utmost essence. If one feels optimistic, pursuing the partnership is logical. A pessimist on the contrary should stick with the job at Engulf and Devour. One also needs to know the partners he or she is working with. Considering the possibility of disagreements in decision-making with the other two partners is key in making this decision. If there is a high possibility of disagreements occurring among the partners, the best option is to stick at Engulf and Devour since the partnership is highly likely to fail if the partners do not agree on critical decisions. People change and thus one cannot solely rely on the existing relationship with the potential partners back in college. As such, another key strategy that can be encompassed in the making of such a decision is taking some time off from Engulf and Devour and have a test partnership with the partners (Lee 99). Monitoring each of the partner’s reactions and decision-making tendencies can assist one to evaluate if the partnership is going to be fruitful. However, the partners could agree on decision during the probation period and this strategy is still not a full proof plan of the calculated outcomes of the partnership. Before embarking on the task, a thorough analysis of the compatibility of the partnership is mandatory. Defining the terms of the partnership prior to making a decision is vital. If one makes a decision to quit his or her job permanently before defining the terms of the partnership, and later on finding out that he or she is not comfortable with the terms, this would be a terrible mistake. As such, taking some time to define the terms of the partnership is a healthy choice. Defining the roles each of the partners plays, the decision-making matrix and the overall consideration of individual demands from each of the partners can help one decide whether to take the offer or decline it. Defining the causes of termination of the partnership assists in determining if the option is a safe bet or if it is not. After defining the terms of the agreement and the key reasons for termination of the contract, it is obligatory to evaluate the value of the business. Can the business be sold for money or can the business assets be converted into cash? If the business can be a sellable asset, it is advisable to venture into a partnership. Despite the business failing, if the salvage value of the business is shared among their partners, each of them would have a fallback plan. If the business has no sale value, keeping the job is the most viable option, especially if the partnership has several other uncertainties. Another concern is the room for business growth. Since this is a mere consultancy that has only one client and three consultants, considering growth can define whether one can take the risk or take the secure option. The room for expansion and growth of the business is a promise of increased income. From a financial point of view, a business that grows is very promising as compared to employment, which only promises less than 10% pay increase annually at best. Additionally, if the business has a high potential to grow exponentially, it would lead the owners to financial freedom, as opposed to the promise of financial security offered by Engulf and Devour. On the contrary, if the business has little room for growth, focusing on one’s career while saving up for a better business opportunity is a better choice (Lee 54). The future is filled with uncertainties. It is hence crucial to consider the room for taking risks. One of the key mistakes made by business owners is being over optimistic about a new start up. Every startup has its challenges. Statistics indicate that over 80% of startups fail. As such, assessing one’s capability to take risks is crucial. For instance, if one has critical financial needs that must be met, such as children, taking risks would be rather unwise. Assessing the capacity of one’s savings to sustain one’s lifestyle is equally fundamental. If one does not have the capacity to take risks, with the uncertainties of a business startup, it is safer to stay employed at Engulf and Devour. This way, the individual can save up enough to start a business later if the idea sounded appealing. The uncertainties of the future hinder most business ideas from being realized. In a case where one has the choice to either quit employment or embark on a career as a full-time entrepreneur, a critical assessment of the decision to be made is obligatory. As discussed, there are various ways of assessing these uncertainties and deciding which path to take. After an assessment of all the risks, costs and benefits of venturing into entrepreneurship, as opposed to holding on to a job, and there are still doubts on which path to take, the best advice such an individual can be given is to follow his/her own conscience. Works Cited Top of Form Lee, Dante. Black Business Secrets: 500 Tips, Strategies, and Resources for the African American Entrepreneur. New York: Smiley Books, 2010. Internet resource. Bottom of Form Read More