Question

James Tan turned 50 recently. As a government servant, he will be retiring in another 6 years. James wants to start a business that could generate some income for him in future. As an animal lover, James is toying with the idea of starting an e-commerce company that would sell pets nationwide. What are the internal and external factors that Jason should consider? Is Jason making a wise choice? What would you advise him? Discuss.

Answer 1

J should consider the following internal factors:

No.1) capital investment: this is cost intensive business; the owner has to make ready funds always.

No.2) employees should be appointed those who have technical knowledge in the operation of E-commerce.

No.3) Infrastructure: room, office space, chair, table, computer, and internet connection are required.

J should consider the following external factors:

No.1) Market: this might be the main concern in this business; if the business doesn’t have reputation in the market, getting customers would be difficult.

No.3) Financing: age of the person J might be a problem here; banks would be reluctant to provide loans to an older person.

No.3) Retirement benefits: this may be a risk of utilizing retirement benefits into the business, since the person may require more security.

This is not a wise choice of doing e-commerce business at the age of retirement, since the risk of liability is also associated there. The person may not carry such risk once retires.

Advise:

The business could be started in a very small form, such as locally. The local market could be utilized in order to see the response; and once it is established there, then may be an expansion to other areas. Steps should be taken gradually.