What is Business?
Business is defined as the production or purchase of the goods and services with the intention of selling them at profit. Business is an organized economic activity. We can say that it is nothing but the pay for making money from economic transactions. If anyone rents his\her services on a payment basis, that will include in business.
Contents
Motives of Business
There are three factors provide Motives of Business
- To earn profits
- Psychological factors
- Ambition to provide service
To Earn profits
The first goal of any business is to earn maximum profit. business cannot be run without money, money comes from profits. Business is dependent on profit, if the profit is high then the business will grow rapidly, and if profit is low then the business will grow slow.
Psychological Factors
It is an old quote that a man cannot live by bread alone. It is also implemented in business that a businessman cannot work only to get wealth. Business psychology says that most of the businessman does not work only for fortune, they work for building the business empire. Psychological factors are a big factor in building a successful business.
Ambition to Provide Service
It is also a great motivating force to start the new business. Many businesses started to solve the problem of the industry, after that, they became a big player in the industry.
for example, Flipkart started as an online bookselling website, but they solve the problem of finding the right books.so the ambition to provide services is also a motivating factor to start the business.
Features of Business Organisation
Risk element
Business means risk, businessmen might make lakhs of money from scrab, or might not be so the probability is zero. Profits do not depend on the efforts of businessmen only. Certain other factors might be include on which a businessman had no control. These factors may be changes in consumer tastes and fashions; strikes; power failures;
Increase in Utility
Business activity creates the utility of the products from one step to another. From raw material to finished goods. From a whole seller to consumers which helps in distributions. Therefore, in every step it increases the utility of the goods.
To earn Profits
Business is all about making the money.profit is essential to running the business because without money the business can not be run effectively. Even it necessary for the livelihood of the entrepreneur.
Creates value
The business provides goods and services to society. The business provides
goods, for example, clothes, shoes, fans, sugar, etc. and the second type of goods are called capital goods, for example, plant, and machinery. So, the business creates value for society.
Uncertain return
As we all know that business is full of risk. In business, an entrepreneur can make lakhs of rupees or even not a single bucks.
Business is Continuity in dealings
every business needs regularity buying and selling of the products or services. A single transaction of the product can not be considered as a business. To consider as a business, the dealings must be carried out on a regular basis.
Buyer and Seller
The business includes buying and selling of the product or services. Which means that it involves buyer and seller, without a buyer and seller business does not exist.
Marketing and Distribution of goods
The business activity might be worried about marketing or distribution merchandise in which case it is called business activities.
Satisfy Human Needs & Wants
The businessman also wants to satisfy the needs of the consumer. So, the business provides various things such that clothes, books, home, etc.
Qualities of a Successful Businessman
Risk taker
A Successful businessman took the risk for the business. because without risk no business can be grown. A successful business must have basic leadership quality to lead his co-workers.
Ability to lead
A successful business must have leadership skills because every successful businessman needs to manage his employees. Leadership quality is cultivated.
Honesty
If any businessman wants to be success.honesty is major things which need.because honesty creates the value of the business which makes it out of line.
Friendly Behavior
A businessman should have a friendly nature. It attracts customers again and it makes the business environment motivated.
Ability Correlation
The businessman should have the ability of correlation.it attracts customer again and it makes the business environment motivated.
Communication
communication is the key to making the network for the business.it is consider one of the important parts of the business. Organization communication helps in removing the conflict and motivates the employees. External communication helps for growing.
Education and Learning
“Learning keeps update” the era of business changing day by day. So the businessman should keep update ourselves with new technologies and trends.
Dependability
A qualified Businessman does not depend on anyone, He does his work on his own.
Energy
the businessman should be fit Mentally and physically.because it helps him to manage his business and to grow the business.
Workaholic
The businessman should like a workaholic. The reason behind successful companies is that the businessman works 18 hours a day to make their business successful.
Classification of Business Organization
Industry
An industry is a group of companies that deals in the same primary business activity. The industry is also a process of production, conversion, and processing of the product. In the modern economy, there are dozens of industry, which makes it larger groups of categories that called a sector.
Commerce
The process of buying and selling which is directly or indirectly facilitate trade, i.e packaging, financing, transporting are called commerce. commerce includes the exchange of goods and services.
Trade
Trade is the fundamental state of business activity and involves the sale and purchase of goods and services. It is to facilitate the transfer of goods from the seller to the buyer that all the above-mentioned activities are undertaken.