School paper fin\ 580

America as a place for business

David Vaughn

Fin/580

Phoenix University

George Karlvens

6 11 2021

America as a place for business

I am in the process of starting a business function. A Process that I may have well stated with an exclamation point at the end of the sentence for the instructor and any of those that may read this assignment. With that I hear that most companies fail within the first year which is at this point a pessimistic cliche’ for me. That in turn leads to why I chose America as the country of choice for this paper. The purpose of this assignment is to discuss how and why this or any country would be good to start a business in. Besides the pessimistic cliches’.

Successful startups

What determines the rate of success in companies? Especially in a country such as America where not only the cost to run a company can be in ranges but the idea of being successful can be monstrous in amount, says billions for some. Thus I chose to first look at a list of successful startups in America and according to (Disful.com) the number one listed best funded start-up is the We Company  (Real Estate) (Disful.com) Says it has $22.5 billion in funding. 

Conversely does this say that a country such as Mexico would need this much funding in a start-up? With differences in Revenue the currency difference would be tremendous. How large would this company be in other countries and not just Mexico but other smaller countries that are not completely driven purely by large funding sources.? As a entrepreneur would I have what it takes to generate that much interest? Possibly, but for now let’s say that in terms of Capital there may not be many places like America. 

Why I selected The U.S And computers:

So the basis of this paper is not to argue if there is too much capital required for companies per se. The fact of the matter is that America was a simple choice because it would be easier to get information. Also as a hopeful start-up my company already operates in a American/Global Sector. Considering the idea of not caring about how many other countries focus on American servers. It is easier to imagine my .coms as international because that is how they are displayed to me. I chose America for simplicity. With much growth and opportunities on the internet. Associated risk and capital can vary. With no place or need (at this point) for offices or warehousing. My sunk cost may be kept to a minimum. With business risk and benefits the pros and cons can look like this.

Some Pros to Kewlbeer’d Marketing is the computer industry which offers a chance for almost limitless growth. Another pro is the type of sector that I chose, finance/entertainment . With successful connections that make for links and growth opportunities I am hoping to create a solid network. These are only a few pros to Kewlbeer’d Marketing

Cons are unfortunately abundant in any sector. I guessed that many of the world’s largest businesses operate within my sector. It will not be a very large producer or agriculture company that will be my greatest competitor. Because of the sector I operate in it will be other marketing companies. I did some light research of the largest competitors in this industry and according to        (agencyspotter.com) the bottom 50 companies are grossing close to $500 million. A company like “Freeman Branding” based out of Houston Texas. $460 million respectively. 

This shows that even to a common person much of the industry would be unknown to them while the company quietly makes millions. Making this a very busy and competitive industry. So, the next Con would be the opportunity to unknown startups like a Kewlbeer’d Marketing which has yet to land a large contract. I am a sole proprietor and will have to deal with company sizes like 40th placed “mc group” with over 80 offices world wide. In that scenario the most I can hope for is a mention on a search engine on another server.

Risk of doing business in this country and evaluation The capital driven economy that is in turn the very purpose of a profit driven company. Concisely I say that a capital driven economy will most likely be driven by capitalistic companies. The risk is that to be competitive will take large sums of money and very large networking capabilities. To be involved in a market that copies, emulates, and at times undercuts. All of those are reasons that the market can be uncertain and risky. My company does not trade in currency and exposure risk may not be an issue. There could be some accounting issues but as a sole proprietor I bear the responsibility for any future risk. Not my future shareholders or interested parties. This is in reference to the pros and cons of evaluating cash flows given in the textbook (Multinational Business Finance).

Conclusion

The market can be risky for most entrepreneurs. With no real way to understand market needs for myself an average startup can look like a hobby to some. With many of the real opportunities going to those with the supposed”capabilities” to perform. The risk may always be the chance it takes to start a company.