Business

What Is Business?

A business can be described as an organization or enterprising entity that engages in professional, commercial or industrial activities. There can be different types of businesses depending on various factors. Some are for-profit, while some are non-profit. Similarly, their ownership also makes them different from each other. For instance, there are sole proprietorship, partnerships, corporations, and more. Business is also the efforts and activities of a person who is producing goods or offering services with the intent to sell them for profit.

Types of Businesses Various businesses are organized per some type of hierarchy or bureaucracy. In these businesses, the positions have a customary role and responsibility.

Partnership: As the name suggests, it is a business where two or more people run it together. The partners bring in resources and money, and then the shares in the profit or loss are divided amongst them. 

Corporation: In this business, a group of individuals act together as a single entity. The owners in this business are called shareholders. They discuss their views on the common stock of the corporation. There are unfavourable taxation rules in a corporation for the business owners.

Small Business: There are different sizes of business. Small businesses are companies where small owners (an individual or a small group) operate. For instance, family restaurants, clothing companies, home-based companies, and publishing companies. In this type of business, the profits are not that high but just enough to continue the business operations.

 

Large Business: This kind of business usually operates as a corporation. It has an employee base of 1000+ people, and its revenue production is more than $1 billion. Usually, these businesses issue corporate stock to finance their operations. Thus, it is publicly traded. As a result, it must report on certain things and operate restrictions. This is the opposite of a small business, where operations are independent of regulators. Amazon and Walmart are examples of large businesses. 

Business Industries There are different industries in which businesses operate. A certain company can define its business by the particular industry. For instance, there are industries of real estate, agriculture, advertising, banking, and more in which businesses exist. It is because often, the term ‘business’ interchanges with the daily operations and the total formation of the company. We often use this term for indicating transactions concerning an underlying service or product.

The most successful ones include:

Amazon: The largest online retailer, Amazon sells a wide variety of products on its ecommerce platform. It began as an online bookseller and captured almost every category of retail. It also offers cloud computing services, movie and show streaming platforms and subscription products. 

Apple: It is a renowned company famous for its innovative electronic products. They sell personal computers, smartphones, earphones, watches, and laptops. Similarly, they also provide various services like music and video streaming and production services. 

Walmart: Being of the most successful retailers globally, Walmart is a multinational corporation that runs a chain of hypermarkets offering a huge variety of products ranging from family apparel to housewares. It is present in 24+ countries and has millions of employees worldwide.

 How can one start an online business? 

An online business is different from a traditional business. You need to design your website after your market research, business plan development, and paperwork formalities. After that, start finding ways to build up your target market and engage your audience with social media platforms. 

What is business plan? 

Business plans help run your business and secure the fund needed to start the operations. There are two ways- traditional business plan or lean business plan. The former is full of details like the company’s summary, plan for success, product information, sales projections, etc. The latter one is not that detailed but has necessary information like details of the partnership, cost structure, revenue stream, and more. How to get a business loan? 

First, decide the type of loan your business needs and then choose from where you will get it. Your options are the traditional lender, online operator, government-backed loans, or more. Make a business plan, present it to the lender, and ensure your credit score is good. Having collateral will also help in securing a loan.