What is business?

Are you willing to know what is business?Then you are at right place. In this article, I will clear all your doubts related to business.

What is business?

Business is a all about knowledge. More knowledge you have : more your chances of success. So, you are one step closer to your business.
If I am not wrong you want to be an entrepreneur (businessman). That's why, you are here. I'll make you sure that, if someone asks you what is business? You will surely answer them understandably. The exact definition of business is given below. So, let's begin.

Contents :

• What business?
• Advantages and disadvantages of business
• Features of Business
• Types of businesses
• Purpose of business

Here comes your most awaited question what is business?  

• What is business?

Business means continuous production and distribution of goods and services with the aim of earning profits under uncertain market conditions.
Businesses vary in size, as measured by the number of employees or by sales volume. But, all businesses share the same purpose: to earn profits.

I think you have understood what is business? While scrolling down my instagram, I found an interesting quote which I want to share with you guys.

A satisfied customer is the best business strategy of all.

                                                -Michael LeBoeuf 

• Advantages and disadvantage:

Everything in this world has its own advantages and disadvantages. So, here is the list of some pros and cons of doing a business.

Advantages

1. You are your own boss : It simply means that you are the boss. You will rule your kingdom. There will be no one who can control you. But don't take it in different sense. 2. Your hard work will pay you: The efforts you are taking for the growth of your business will give you profit as a reward. You can call it as your hard work is Directly proportional to your earnings. And you must know that there is no shortcut for hard work. So their will be no tension of payment/earnings, as it fully depends on you. 3. Secured job.

You are your own boss. It means that, No one can fire you. Your security of job is directly related your business. You have secured job, until your business fail. 4. Secured and satisfied on mental ground. As you are doing your own business, following your own passion. It will give you the feeling of satisfaction at level of mind.

5. Exposure to experience all aspects. You are starting your business. It means it will give you the experiences of different aspects of works related to your field. You are going to learn many things.

Ex.1) how to handle people of different psychology / mind 2) marketing knowledge etc.

Now, here comes the another side of starting business.

Disadvantages

1. It's a risky task. Business means the risk. You are putting your money, investments. And there is no guarantee of success. Instead, There are many chances of your losses, which will lead you to different financial problems. If you have taken bank loan, you will be bankrupt. So think twice before you start business. 2. Financial investment required. It is required. But it's not necessary to have a lot of money. Your money requirement depends on your business plan. So try to it make simple and start from basic. For ex. Microsoft was started from garage. It is totally depended on what type of business you are doing. 3. You may not get desired income. Remember, it is economical activity which is totally dependent on market. You are the new one in market, which is already occupied by big companies. So you may not get new customers. And your product will not be sold. And your sell decides your profit. So you may not get your desired income. 4. Freedom to work-turns into overtime work. If you think that it is going to be simple. Let me clear you that. In the start you are the only one. So, you have to do every type of work like accounting, marketing etc.You may have to work more than 8-10 hours a day. It requires lot of patience, dedication. So, be prepared for work. 5. Financial obligations. It is an obligation to pay money to another party. The obligation may arise from borrowing funds, loans and legal actions. It means you have to pay to your supplier units etc.

• Features of business.

You can also call it as characters of the business. Without wasting your time let's see the list.

1. Buyer and Seller Every business transaction has minimum two parties that is a buyer and a seller. 2. Exchange of goods and services All business activities are directly or indirectly related with the exchange of services or goods for money.

3. Profit is the main Objective Every business starts with intention of earning profit. The profit is a reward for the services of a businessman. 4. Marketing and Distribution of goods Business activity may be with marketing or distribution of goods. Such activity is called as commercial activity. 5. Risks and Uncertainties Firstly make yourself mentally prepare for starting a startup. Because Business is subject to risks and uncertainties. Some risks, such as risks of loss due to fire and theft can be insured. There are also uncertainties, such as loss due to change in demand or fall in price cannot be insured and must be borne by the businessman. 6. Satisfying human wants The businessman also desires to satisfy human wants through his business. 7. Business skills for success It's not easy to run a business. As I told you before knowledge is directly related to the success of your business. So, To be a good businessman, one needs to have good business qualities and skills. A businessman needs experience and skill to run a business.
8. Deals in many transactions Exchange of goods and services is the basic feature of every business. A businessman regularly deals in a number of transactions and not just one or two transactions. 9. Connected with production Business activity may be connected with production of goods or services. When it is related to production, it is called as industrial activity. 10. Deals in goods and services In business there has to be dealings in goods and service.
Goods may be divided into following two categories :- Consumer goods : soaps, T. V. etc. Producer goods : machinery, parts of machines etc 11. Social obligation
Modern business is service oriented. Modern businessmen are conscious of their social responsibility. Today's business is service-oriented rather than profit-oriented.

• Types of business

There are different types of business, but here I have listed most common types of businesses.

1. Sole proprietorship business It is a business own by only one person and it is easy to set up and least costly then any other forms of business. Ex. catering business. It is simple example of sole proprietorship business type. 2. Partnership business partnership is a business owned by two or more persons who contribute entity. Ex. accounting group. 3. Company business It is a legal entity made up of an association of person be they natural(individual), legal or mixture of both for carrying on a commercial or industrial Enterprise.

Ex. ICICI bank limited, Google. 4. Franchise business A franchise in its simplest form is an agreement or license entered into by two parties the franchiser and franchisee.

Ex. McDonald's 5. Cooperative business Cooperative is a business organization owned by group of individuals and is operated for their mutual benefit. Person Making up the group are called as member. Cooperatives may be incorporated or uncorporated. Ex.Amul India.

• Purpose of business 

It is most the important part of our article. Because business is not only about earning profit, but it has some social Contributions.

The purpose of business goes beyond earning profit. There are:

• It Offers of better quality of life
• Creation of job opportunities
• It is an important institution in society.
• Be it for the supply of goods and services
• Contributing to the economic growth of the country. 

Hence, you must understood that the role of business is crucial. Society cannot do without business. It needs no emphasis that business needs society as much.

I hope you like my article  related to WHAT IS BUSINESS? I think, I have cleared your basic doubts related to business.If you any queries related to this article, please comment down. 
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