What is Business? concept and types of business.
" Business opportunities are like buses, there's always another one coming." - Richard Branson
What is Business?
Business is an organization or an enterprise engaged with a commercial, industrial or professional activity that makes money by producing, selling or buying the product (such as goods or providing service). But also business can be a non-profit organization that operates to fulfill charitable trust or for any social cause. Business can range from street sellers to big companies like Microsoft, one doesn't need any company or any formal organization to start a business.
People working together as an organization is a business. A business owner is a person who hires peoples to work. People work to make and sell products or services. A business earns profits by selling a product or providing services.
Concept of Business:
The word business comes by word busy and means doing things. A business has a very simple principle, get something at a lower cost and sell it at a higher cost, the marine produce in between is profit. The main purpose of business is to earn profit from various productions & marketing various products. Businesses usually concentrate to maximize profit. But businesses also take care of maintaining social responsibilities. Customer satisfaction is also an essential point for a business.
Here are five main points on the concept of business :
1) Target Customer:
The target customer is when a business/company aims its product and service on a specific group of consumers. In simple words, Those who buy from you are your targeted customers.
The target customer is when a business/company aims its product and service on a specific group of consumers. In simple words, Those who buy from you are your targeted customers.
2) Product
An object or any system make available or manufactured for the consumer through any company is called product.
An object or any system make available or manufactured for the consumer through any company is called product.
3) Value Proposition
The value proposition is a promise of value to be delivered through business to consumers. Value proposition also intends to make products, service or any feature look attractive to consumers.
The value proposition is a promise of value to be delivered through business to consumers. Value proposition also intends to make products, service or any feature look attractive to consumers.
4) Distribution: Distribution is the process of making a product or service available for a consumer or business user who needs it.
5) Positioning: Positioning means how you differential your product or service from your competitors.
Business Activities :
Business activities refer to all economic activities, it's related to providing goods & services, and ensuring profit earns through customer satisfaction. All essential activities related to the business are listed as under :
1) Finance
Finance is the management of money which also includes activities like investing, saving, budgeting, borrowing, funding &, etc. In simple words, it manages money or provides funding to a person or an enterprise from government or large companies.
Finance is the management of money which also includes activities like investing, saving, budgeting, borrowing, funding &, etc. In simple words, it manages money or provides funding to a person or an enterprise from government or large companies.
2) Accounting
All financial information, analyzing, interpreting, a systematic recording is a part of accounting in business. Providing financial information to companies/business's stakeholders, investors, creditors are also an essential part of accounting. Accounting is also known as "Language of Business".
All financial information, analyzing, interpreting, a systematic recording is a part of accounting in business. Providing financial information to companies/business's stakeholders, investors, creditors are also an essential part of accounting. Accounting is also known as "Language of Business".
3) Marketing
Marketing is done individually or with a team/organization. Marketing is the easiest way to promote your product or service to other companies/businesses that resell them or uses them in their product or service. Marketing is the most important thing which helps to grow your business and maximize its profit.
Marketing is done individually or with a team/organization. Marketing is the easiest way to promote your product or service to other companies/businesses that resell them or uses them in their product or service. Marketing is the most important thing which helps to grow your business and maximize its profit.
4) Manufacturing
Manufacturing is a part of a business where they use components like raw material and others to make finished goods. These components can be sold directly or through another seller to consumers.
Manufacturing is a part of a business where they use components like raw material and others to make finished goods. These components can be sold directly or through another seller to consumers.
5) R&D (Research & development)
Research and development is a team or a department in a company that includes activities like innovating, introducing new products & services. The main goal of Research and development is to innovate or make useful changes in product & service for their costumers.
Research and development is a team or a department in a company that includes activities like innovating, introducing new products & services. The main goal of Research and development is to innovate or make useful changes in product & service for their costumers.
6) Sales & Safety
Sales are the company's revenue earned from sales of product & service. In general, the sale also means a transaction where money or value is exchanged for the ownership of goods or services. Whereas safety includes the environment of a company where safety, health and well being of employees is a must. Business spends billions of dollars annually on injuries. Safety devices, safety training is also mandatory in some companies.
The corporation is one of the most complex types of business. These types of businesses are fully independent with shareholders. In this business, the Board of Directors is the group of officers that guide the legal entity of the business.
Corporation type of business can be owned by the government or privately, they can run this type of organization for a profit purpose or for a non-Profit/social cause.
4) Limited Liability Company (LLC)
Limited liability company (LLC) is a hybrid type of business in which there is a combination of corporation and partnership or sole proprietorship. It was designed to make small businesses easier. It is one of the most popular types.
5) Non-Profit Organization
The Non-Profit organization (NPO) or Not For Profit Organization is dedicated to particular social causes. This type of business uses its profits towards social causes. Non-Profit Organization is tax-exempt means they don't need to pay income tax on the money which they receive for their organization. The organization can be of animal welfare, Various NGOs, Welfare of environment, Business-friendly international NGO (eg: Red Cross) and many others.
Sales are the company's revenue earned from sales of product & service. In general, the sale also means a transaction where money or value is exchanged for the ownership of goods or services. Whereas safety includes the environment of a company where safety, health and well being of employees is a must. Business spends billions of dollars annually on injuries. Safety devices, safety training is also mandatory in some companies.
Types of Businesses :
If you starting your own business, you need to create a business plan. There are many forms of business ownership, which most common types are as described below :
1) Sole Proprietorship
This type of business is owned by one individual only and runs for their benefits. The owner runs business alone or may hire employees. The business's all assets belong to the owner of the company as he is in a sole proprietorship which includes companies inventory, equipment or other such accessories. The owner or any entrepreneur chooses this option if they want full control over their company or business. But in case of any liability or any debt, the owner is fully liable for it.
This type of business is owned by one individual only and runs for their benefits. The owner runs business alone or may hire employees. The business's all assets belong to the owner of the company as he is in a sole proprietorship which includes companies inventory, equipment or other such accessories. The owner or any entrepreneur chooses this option if they want full control over their company or business. But in case of any liability or any debt, the owner is fully liable for it.
2) Partnership
The partnership is an arrangement between two or more people to run the business. In partnership the business owners share their assets and liability, they mostly divide their responsibility to overcome the work and to increase efficiency for the business.
In General Partnership two or more people run business for profits. In which they share profits and also share the business's liability and losses equally.
In Limited Partnership there is at least one general partner, which takes unlimited liabilities for partnership and manages the operation of the company. These types of partnerships are often between investors and business operators.
3) Corporation
The corporation is one of the most complex types of business. These types of businesses are fully independent with shareholders. In this business, the Board of Directors is the group of officers that guide the legal entity of the business.
Corporation type of business can be owned by the government or privately, they can run this type of organization for a profit purpose or for a non-Profit/social cause.
4) Limited Liability Company (LLC)
Limited liability company (LLC) is a hybrid type of business in which there is a combination of corporation and partnership or sole proprietorship. It was designed to make small businesses easier. It is one of the most popular types.
5) Non-Profit Organization
The Non-Profit organization (NPO) or Not For Profit Organization is dedicated to particular social causes. This type of business uses its profits towards social causes. Non-Profit Organization is tax-exempt means they don't need to pay income tax on the money which they receive for their organization. The organization can be of animal welfare, Various NGOs, Welfare of environment, Business-friendly international NGO (eg: Red Cross) and many others.
If you want to start your own business, just remember business is the easy part, being consistent and dealing with failure is the tough part! so this was it till then goodbye. and do share this blog SHARING IS CARING.
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