BUSINESS IDEA FOR SELF-EMPLOYMENT OF AN INDIVIDUAL ENTREPRENEUR

Abstract

The authors assert that young people must initiate their own entrepreneurial ideas and develop a business plan to begin their employment journey. Motivated students can become individual entrepreneurs as early as sixteen years old. Knowing the key elements of their future activities can help entrepreneurs anticipate, analyze, monitor, and evaluate the success of their enterprise before executing their idea-project. A business plan allows for adjusting planned or actual indicators to achieve income.

The development process of a business plan includes analyzing the enterprise’s market environment, assessing the target audience’s needs, new sait, determining the organizational structure, identifying financial risks, and estimating income and expenses. The primary obstacles to starting one’s own enterprise include the Russian-Ukrainian war and its consequences, reduced potential customers due to lower incomes, limited financial and credit resources, and high advertising and marketing costs.

The authors calculated the costs of starting a business with four employees. The Silhouette studio’s operation shows that it requires expensive equipment and a long payback period for a small enterprise. Risks in this area include purchasing low-quality equipment, lack of funds for unforeseen expenses, poor quality of services, ineffective advertising campaigns, excessive rent increases, too many workshops in the market, and poor location choice.

The industry’s unique feature is a relatively short production cycle of one to two months for manufacturing complex products, making it a profitable investment, especially for working capital, providing quick returns. The planned payback period for the Silhouette studio is two to three years of operation, but it may happen sooner. The enterprise’s profit depends on advertising coverage, the income of the local population, and other aspects that affect the enterprise’s profit. A tailoring and repair shop is a distinctive institution providing quick, efficient services tailored to individual or inclusive needs.