Table of Contents
What is a business and what are its components
A business exists to make profit. It also serves as a means of giving people gainful employment. There are various types of businesses such as manufacturing, retail and wholesale, etc. Some businesses require capital to start but others don’t provide the number of operating expenses that a competitive business would require them to have in order to be successful in the long-term. The components of a business include the following:
• a business model
• market, sale of products and services, the process of creating or purchasing things for use or consumption in the marketplace. It is also the opportunity to sell property, invent new things and service people from one place. This is often referred to as business model .
• business plan and viability of a business plan to be successful in order for it to be profitable in the long term. An entrepreneur(trademark) is often referred to as a business person
• people who make things or provide services [are sometimes referred to as the workforce]
• finance – (funding), money taken in by a business and used to buy inventory, pay bills, pay creditors in order to create profit. This money may come from: borrowing money from banks, credit unions and other institutions offering loans; selling stock or bonds; selling an existing product and producing another one related to it; getting paid for consulting work for a company.
• advertising – public announcements made through various media in order to attract customers.
The different types of businesses
Businesses can be classified into two main types. These include the sole proprietorship and the partnership. A sole proprietorship is an unincorporated business and it is owned by a single person who also functions as its manager and makes all the decisions concerning its operations, while a partnership is a business which is owned by more than one individual and it has at least one proprietor and one partner. The partner performs the operations of the business with the proprietor who is a non-operating partner. Apart from these two types of businesses, there are other types as well, including those that are incorporated and those that are unincorporated. An incorporated business is an entity that is formed by an agreement between two or more persons and its shares are registered with the government. There are other types of businesses identified by specific facts, such as real estate investment companies, hedge funds, and partnerships. However, these types of businesses are more complicated than sole proprietorships and partnerships. The owners of sole proprietor and partnership business should take note of their business entity type because it will determine their rights under the law.
Businesses can be classified into [the] two {types of}…
1.The sole proprietorship.
2.The partnership.
Corporations, in turn, are organized as general partnerships or limited partnerships, because they are formed to accomplish specific objectives or provide specific benefits to the members of the corporation – generally reduced legal liability for its members and a higher degree of flexibility in the way the business is managed [1]. Among these strategies is a relatively simple one known as “limited liability. A limited liability corporation (LLC) is a business entity that has many of the same qualities as a corporation, in that it is a separate legal entity and provides liability protection for its owners, but it has some characteristics of an unincorporated association or partnership. Limited liability companies are sometimes called “L.L.C.”s.
How to start a business
There are various factors which a person must consider before starting a business. Some of the things that one must consider include the size of the business and its location. The most important thing is to analyze the feasibility and potential of the proposed business by conducting market research studies. A person must also decide on the legal status of the business, which can either be a sole proprietorship or can be a partnership or incorporate. Other things include the financial sources and how investors and banks would view the business. There are two ways in which one can start a business, such as starting it on ones own or one can also buy an already established business.
When a person decides to start on his or her own, he or she has to prepare a business plan. A business plan is basically a formal document, which outlines the purpose of the proposed business, its objectives, the financial resources needed and how much money will be required to meet these goals. One must also decide on how long the business will operate for. The person must also determine on a marketing strategy for his or her business. The marketing strategy outlines how a person can promote his or her business and how he or she intends to publicize it. A person must also identify the audience and what would be the target market, which is the people who he or she expects to buy his or her products and services.
When one decides to buy an already established business, he or she has to evaluate the existing system of organization. The operational procedures and the financial resources must also be evaluated. One must also decide on the legal framework of the business.
What you need to do to keep your business running smoothly
a. Good planning – A business must have a well-planned marketing strategy for its products and services. In order to ensure that this does not happen, the following should be designed:
– Design and build a website, social media accounts, or any other digital medium that can be used as a marketing tool.
– Create an online shop with payment information.
b. Personnel – Businesses need highly capable personnel who can readily adapt to changes in the market, who demonstrate creativity and decisive actions for new ventures to thrive.
– Find employees who have an eye for detail and who can work well under pressure.
– Offer incentives to new employees as well as existing ones to help motivate them towards the company’s objective.
