Why Should You Start a Business?

We have been told many times that the new economy is upon us, or to prepare ourselves for the new economy, or what new jobs will be created by the new economy, or what jobs will be lost. It has been given different names, such as knowledge economy, network economy and the information age.Rather than quibble over names and definitions, we will all agree that changes are happening in the world and will continue on in an accelerating pace for the foreseeable future.These changes will profoundly affect the way we work, play and do business.Let's spare a moment to look at the changes and how they affect us:

Flexible Work Arrangements

More and more companies are adopting work arrangements that are not strictly 9 to 5. It comes in many guises and is advantageous to both employees and employers.For employees, it allows them time off to take a sick child to the doctor, or to avoid the morning rush hour.For employers, it allows them to retain staff on a reduced workload, while they peruse other interests. They can also look at their employees as subcontractors, employing them to get a job done, rather than on a per hour basis.In some cases, with a mobile phone, a notebook and an Internet connection, the employee can effectively be the office. The employee can work anywhere she wants and still be as effective as if she was right there in the office.

Technology

Vending machines are everywhere. From selling Coca-Cola to snacks, there are now some that will charge your mobile phones. If you think about it, those vending machines are doing what used to be somebody's job.Make a call to your local government department. An answering machine picks up the call, right?

An operator was put out of a job.Take a look at yourself. You can probably handle a word processing program. If you need to write a report, you probably do it yourself, including the graphics. I'll bet that you will install the reader yourself. And I'm guessing that your job has nothing to do with computers. With the help of a computer, you have taken a few jobs away yourself. And it will get worse. Computers are getting cheaper, more powerful and smarter. Round the corner are computers better able to emulate human abilities. Soon you will see computers that can understand human speech and read printed text. And I'm sure that you have seen robots that can actually walk, on 2 legs.Soon they will be on the streets and taking away even more jobs.

The Rise of India and China

In the same way that commentators refer to the 1900s as the American Century, the early 21st century may be seen as the time when some in the developing world, led by India and China, come into their own," said a December 2004 study by the U.S. National Intelligence Council.The study further noted that there could be a "definitive break with some of the post-World War II institutions and practices." The study also said that India "could emerge as the world's fastest-growing economy" by 2020, overtaking China. With a combined total population of 2.4 billion people, more than one third of the world's population, they cannot be ignored.

The Internet

Although the Internet has its beginnings in the 1960s, it actually started to evolve into the net that we know in the early 1990s when the first properly developed web-browser,Mosaic, was introduced.Since then, Internet usage has exploded, with an estimated 13.9% of the world's population connected as of 2005. That is a staggering 889 million people!

Today, the Internet has become an integral part of our lives.From emailing our colleagues and friends, to playing games,to setting up blogs telling the world about our personal lives,the Internet has truly become our constant companion.All this has not escaped the attention of the big businesses and corporations. They have come online to reach markets they have never been able to reach before. With the Internet,marketing to Mr Gandhi and Ms Hiroko has become nearly as easy as marketing to Mr Smith in the next office.With most of their customers online and easily accessible,some companies have decided to cut out the middleman.Instead of appointing a distributor in a foreign country to deal with foreign customers, they will take over or at least minimize the role of the distributor, preferring to deal directly with their customers.Even the average Joes on the street have jumped onto the
bandwagon. They have set up businesses on the web,hawking their wares on the global marketplace. And some have done pretty well for themselves.

Conclusion

So, what does all this mean to you?

To put it in a nutshell, the world is changing and it will continue to do so at a faster and faster rate. Your job, which you feel is secure, may not be in 5 years time. What is worse,it may be rendered obsolete by technology or changes in the economy.To meet these challenges head on, you need to upgrade and diversify. Upgrade yourself so that you are the best that you can be in your chosen profession. And you can diversify by taking on more responsibilities at work, thus making yourself more indispensable.If you are sharp enough, you would probably realize that upgrading yourself and taking on more responsibilities does not necessarily mean more pay. But it will most certainly mean more hours at work.Which is why more and more people are looking to go into business for themselves. And that is why you are here now.Starting a business 10 years ago would probably have meant spending a good part of your nest egg, or going into debt.But, with today's connected world, and the right choice of products and business, an online business can be started for a pittance.