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Jan 05

Understanding the Basics of Business

Most of us want to earn money and have heard all around that the best way to do that would be to have a business of your own. But most of us don’t know the basics of the game.

Basics of Business

According to the Chambers Dictionary, Business is, quite simply buying and selling of goods. It is interesting to note here that it doesn’t really matter what is the end of the same, the only absolute essential is that someone is there to buy it. Demand calls for supply.

What it Involves?

Money – Whether you are creating a business that caters to customers or to other businesses, the primary aim of any business is to make money. However all businesses don’t set out with the only aim of making money. A good example of such a business would be a charity – all charities give away their profits to help people in need.

Ideas – Ideas run businesses and the idea needs to have the potential to be of value in the market. People should be willing to pay for your idea as that is the only way it can bloom into reality. You might be creating a tangible or an intangible, it needs to have an intrinsic value for it to hold any ground the market.  

Research – Understand that the idea is only the beginning when it comes to business. In fact the moment the idea ends business begins and business begins with research. Sometimes businesses kick-start after years of research, none of which ever goes into waste. Other homework includes figuring your target audience, deciding on the price of the product after calculating the cost of making, advertising etcetera. All of this must be figured out before you start the project. This is what you’ll need to show your investor so you can start a functional business.

Outlay – A small place to put things together or a multi-storey building, you need an outlay to set things in motion. Your staff needs to be trained to produce the item or service and you need a factory to start spitting product. While some folks head to the bank others make do with the savings of the founder.  

Operation – You’ll need to find stability first. Sure, aiming for large profits is great but it is more important to get stability first. Once you reach a stable point you’ll no longer have to worry about every step you take and all the possible losses it can incur. It is a comfortable position to work from and necessary for providing a base for good decisions.  

Growth – Most people would agree that along with all the hard work that you put in, there is also a massive stroke of luck needed to make your business a hit. See examples such as Apple, Google and Facebook all of which began from very small points. But more than that it is the timing and the discretion of making the right decisions at the right time.

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