Question

Ariana, a talented photography student, started her own photography business. She planned to solicit jobs from large corporations, which would need headshots and other pictures for their annual reports and websites. Although filling a unique niche, Ariana needed the security that the business would thrive and that she would earn enough to support herself and her family. She also hoped she would spend less time each day calling on potential clients and more time doing the actual shoots. As her small business consultant, which of the following suggestions would you have for Ariana?
Multiple Choice
A) Ariana should either take the risk necessary to develop a small business, or go to work for someone else.
B) In the beginning, it's doubtful that Ariana will realize ease of entry, security, and good profits. She needs to make plans in the event that one or more of these does not materialize quickly.
C) Photographers can take pictures of a multitude of things. It's probably not good strategy to limit her business to only photographing the needs of large corporations.
D) Ariana should definitely make time for herself each day so that she does not experience burnout. If she plans well, leaping into her own business will provide her with several hours of unstructured time each day where she can perfect her craft even more.

Answer 1

Answer:

B) In the beginning, it's doubtful that Ariana will realize ease of entry, security, and good profits. She needs to make plans in the event that one or more of these does not materialize quickly.

Explanation:

It is very hard for small businesses to immediately gain a significant market share, have a lot of clients and make a lot of money. Not even huge corporations (almost all corporations started as small businesses) were that lucky. It took Amazon 14 years to make a profit, 3 years to Google, etc.

Ariana should be prepared to not fulfill her expectations completely at least not in the short term. If she works hard enough and is good at shooting pictures, then hopefully she will start having more customers in a few months and maybe even making some money in a year or two.

If we search for information available about small businesses, we can learn that 20% go bankrupt within one year and 50% within five years.

The positive side is that if she can make it, she will probably be much better off than if she worked for someone else.