A business is a enterprise, a firm, a collection of ideas, where objects, processes and designs work together to provide a particular service or products to customers. It respects a business model that defines the value of the enterprise and follows the mission of the company with a clear long term vision. In order to do so, it must remain competitive on the market. For some, business goes further than simply being competitive and providing solution to problems, it is also about bringing an experience in an engaging way to the customer so they can feel protected and taken care of. Some businesses want their customers or clients to be part of something bigger than the company itself. They know that consumers and social advocates believe that businesses should not only make profit but also consider social implications of their activities. Every interaction between both parties has to be meaningful and must contain a specific purpose. At Walt Disney, the focus is always is on the experience the customer is going to have. They want to maximize the positive impact they have on their customers. Their workers are fully engaged to provide the best of themselves to the visitors. For that, the company hire and develop people who fit the culture of paying an extraordinary attention to details that define their overall culture and values. Their training processes are organized in a way to ensure they have the right people who will understand their vision and walk along with it. A business therefore is being engaged in commerce by having a specific mission, having a vision for the future, and respecting a particular sets of values that every members of the enterprise must adhere to.
Where It All Begins
We all have once in our lives come about this unique idea that we wanted to share with the world, but ignored how to bring that particular idea into reality or turn it into a business opportunity. Entrepreneurs are people who have the ability to transform whatever they have in mind into something that people can use or buy. The idea doesn’t always have to be one that has never been thought of before. Some entrepreneur have started their business because they thought they could improve the world in a certain way or do something better and simply decided to take action. As for ideas, they flow from everywhere. An enterprise can start from a dream you had last night, it can start from an interesting conversation you had with your friends, your colleagues, or even total strangers you have meet on the streets. Those who can see the needs of the world around them should consider these as real opportunities to create products or services that could solve these actual needs. Entrepreneurs do face challenges regularly, that is why they are constantly on a quest to model solutions to their problems. They need to have a great vision, they must be able to gaze in the future well above every challenges. Also, their work ethic must reflect on their business values. Organizations that put emphases on a high ethical culture encourage employees to adhere to the business values in place. If you want to be an entrepreneur, know that Rich Dad once stated, “Starting a business is like jumping out of an airplane without a parachute. In mid air, the entrepreneur begins building a parachute and hopes it opens before hitting the ground.” You may have a business idea you want to launch yet, you still ignore where to start. You may have the right people and the necessary tools around you, but what if you don’t have the necessary funds and capital to help you get started ? You have a map of how the project should be run in order for your idea to see the day, but you aren’t sure whether you will be able to handle the many processes to keep everything going until fruition. One thing is certain, those who have failed to prepare themselves before the big jump, must be prepared to fail, but the secret of life though is to fall seven times and stand back up eight times.
Before you consider owning a business, you must know that eighty percent of start-up companies are forced to close their doors within the first eighteen months of operations. The first and foremost reason why that’ll happen is due to lack of money. Companies that don’t have enough funds to invest in projects that can help grow the enterprise will certainly have to seize their function just like any regular car will stop when it runs out of fuel. Russell Pfister, founder of NASL, when confronted by the fact that his league had to consider closing their doors, honestly answered, “If you are asking if we ran out of money, I can’t comment on that. I can however say that we did not NOT run out of money, if you know what I mean.” Even though NASL survived and overcame the challenges they faced, the CEO’s quote certainly states the importance of not running out of money in a enterprise. Money is the very essence of an enterprise and the fuel that will assure the survival of the company. Other reasons why companies will close their doors is due to the lack of differentiation from their competitors, a bad communication within the organization, and a leadership breakdown. It is no secret that a good flow of information between the people inside the enterprise can only be constructive and beneficial to the company. It does serve to increase market share, competitiveness, as well as improve customer service and satisfaction. The most basic social responsibility should be codified by laws and regulations that encourage businesses to conform to society’s standards, values and attitude. If a company doesn’t work in this specific aspect of the business, the relationships within people inside the organization can be at risk unless the values are solidified and respected by every individual. Every member of the company need to understand the mission that everyone have to follow and must share the same vision. The employees have got to not only be informed but also look for information on how they can better contribute to the global mission of the company. Leaders must be open to suggestions and provide feedback if necessary. They shouldn’t expect people to figure things out by themselves. Things must be finished and done as asked and expected. Leaders should never fall into the trap of the Assumption of accountability, because the latter does well only what assuming does. Keys to success therefore are never running out of money, having an effective team of leaders that can communicate to ensure everything is understood by everybody, a good collaboration, in other words working in a new way to constantly improve alignment with the overall mission, and building trust within the enterprise by creating sustainable relationships between co-workers.
The business world is a world of endless competition. There is no easy path to success because in this field, everybody wants to be in the front sit. Into the term business, there is the word busy, so naturally, those who succeed in business are those who are ready to keep their lives as busy as possible on the businesses or business they have decided to start. They have invested time and energy with their heart into the Business Idea. Entrepreneurs who dare launch their own business are gambling at the parachute jump and it is their way of knowing and understanding how the world of business actually functions and reacts to real time changes. In school of business, students are taught to think and do like businessmen through lessons and examinations, but in the real world, challenges are actually what is going to teach and help entrepreneurs gain the experience in order to get started and keep going forward. There is no way one will learn to adapt to this new, changing, and challenging environment where everyone is running after profits, revenues, never ending gains and continuous growth of capital if the actual experience isn’t lived.
Types of Businesses
There are two types of Businesses. There is the not-for-profit Business, and the typical Business whose goal is to earn money in order to redistribute the gains and profits to the owners. Unlike the typical Profit Business type, the work in a non-for-profit Business is mostly done by volunteers instead of paid workers. The focus isn’t on earning profits but instead gathering donations and resources to pursue organizations objectives. In both cases, similar business tactics, strategies and management techniques are used to accomplished the goals and the objectives of the organization.
|Sole Proprietorship||In this type of organization, you are fully responsible of all losses, debts, and liabilities of the business as well as every single gains and profits earned by your company.||Easy and Inexpensive to formLow cost to launch the businessBetter touch with decision makingsMinimal working capital to begin withAll profits are gainsLower tax brackets when you have low profits||Unlimited liability in case of bankruptcy and financial difficultiesIncome taxable on your personal rateWith high profits, we end up in higher tax bracketsLack of continuity in case of absence, unless the business is held by a trusted friend or intimate partnerHard to raise capital alone|
|Partnership||By going for partnership, you are deciding to carry on with someone else a business whose profits will be shared to both parties according to the terms of the agreements. Resources are then combined and put into the business to ensure its continual growth. The assistance of a lawyer is necessary when drawing up a business agreement to ensure you are protecting your interests as well as meeting every legal requirements.||Start-up costs are shared equally with the partnerIf the partner income is low, you receive tax advantagesEqual share in the management, profits and assets||There is no legal difference between you and your businessUnlimited liabilityFinancial responsibilities are fully held by both partners|
|Corporation||A business created as a separate entity wherein the business owner is a mere shareholder of the company. The liability for the business owner is limited and offers protection of the personal assets from creditors.||The ability to transfer the ownership of the company to a company or a personTax advantages and easier access to financing||The business owner can be liable to certain legal obligations owed to the government.Personal assets can be at risk and the corporate veil cannot be used to escape form legal obligations.|
|Cooperative||An association formed by people or a community in order to run a business. This type of membership becomes useful because people can use their collective resources to reach their common goals.||Limited liabilityEvery member has the right to voteProfits are shared||Inner conflicts between membersRecording got maintenance and the involvement of all 9 member can be cumbersome|
Got A Idea ?
Whatever type of business you decide to start either alone or with your partners, you’ve got to make sure you’ve done some research in order to be well informed about the market. You will also need to write down a well thought business plan that will serve as a vehicle to help you get where you want to go. A business is almost impossible to start with no funds, make sure to find out about available sources of financing for the start-up. Then, you’ve got to find out about the difference requirements to launch the business. It is always crucial to come up with a strategy that will make your enterprise competitive among the others. Also, you should learn about the permits, regulations and licenses that apply to the business. Explore some of the resources that will help you with hiring and managing employees as well as paying the various taxes. Finally, you’ve got to find where your business is going to be located as well as the resources that will help you manage, grow and sustain the business you’ve decided to start. In order to do that, you will need management, which is the function that coordinates the efforts of people to accomplish specific goals and objectives by using effectively and efficiently the available resources.
Business Classification and Branches of Management
|The Business Classifications|
|Agriculture/Mining||Produces raw material such as plants and minerals.|
|Financial||Banks or other type of companies that generates profits through investments and management of capital.|
|Information||These type of enterprises generates profits primarily from sales of intellectual properties. It includes movie or music studios, publishers and internet, and software companies.|
|Manufacturers||These businesses produce products from raw materials or components parts, then sell them for profits.|
|Real Estate||These businesses sell, rent or develop properties, including lands, residential homes, and other buildings.|
|Retailers/Distributors||These businesses act as the medium between manufacturers and customers that must receive the products transferred.|
|Service Businesses||These businesses offer intangible goods or services and charge for labor or the services that are provided to government, consumers and other services. Decorators, consulting firms and entertainment are considered services businesses as well.|
|Transportation||These businesses deliver goods and individuals to their destination for a fee.|
|Utilities||These businesses produce public services such as electricity or sewage treatment.|
|Main Branches of Management|
|Financial Management||A field closely related to accounting. It mainly has to deal with anything related with the allocation of assets and liabilities over time.|
|Marketing||The process of communicating the value of products and services provided to the customer. The goal of the marketing team is to raise awareness and sell the products and services being provided.|
|Human Resources||The group of individuals who make up an organization.|
|Strategic Management||Formulation and implementation of the organization goals and objectives and how these are to be reached. The initiatives are usually taken by the top management on behalf of owners.|
|Production Management||Management of the range of human activities in which raw materials are transformed into finished good.|
|Operation Management||A area of management which goal is to oversee, analyze, forecast, design, and control the overall process of production within an enterprise.|
What About The Future of Business ?
Traditional businesses were focusing on creating products and providing services in exchange of money, but in the last few years, different models have been taking places because customer nowadays have more choices, more tools, and more peer-to-peer power. Before, customers had to move in order to buy something, at times, they had to order from their homes and wait, but technology have helped create a much faster communication and reach between companies and customers. Thanks to E-commerce, social media, and wireless networks, Lisa Gransky, author of The Mesh: Why The Future of Business is Sharing, thinks there is real money, trusted brands and strong communities to be built on helping customers buy less and use more. For example, Groupon, a company that features a daily deal on the best stuff to do, see, eat, and buy in more than 565 cities around the world, use collective buying to get a daily deal available to all across the globe on local goods. Brian Solis, author of What is The Future of Business ?, a book that takes the reader on a hero’s journey, explains how shared experiences is what is going to define businesses of the future. Every moments will be extremely important. As a results, new systems, processes, and intentions will have to be put in place in order to recognize disruptions as they happen to assess new opportunities, and quickly test new ideas.
Starting a business is going on an entrepreneurial journey, one that is like no other.
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