A business can be simply defined as selling goods or services with the expectation of gaining profit. It is necessary to make a profit; otherwise it is considered as welfare work.
Business can be categorized according to ownership. I have stated main types of them below.
- Individual businesses
- Joint ventures
- Cooperative business (co-op)
- Companies (LLC/ LTD)
- Group of companies
Small scale business
Most individual and joint businesses are easy to handle and more flexible for changes. Required manpower is less and record keeping is can be done by yourself. Small capital is enough to start the business. Can’t expect millions of profit by year or two, but there are very successful small business all around the world.
Large scale business
Larger scale businesses need large capital to start. Require more management strategies. Record keeping and documentation is complex. Tabor and health welfare will consume considerable amount of money.
Company should maintain departments for different work. It will increase quality and efficiency of the work. Better tools, equipments and technics will use in the process.
What is a brand..
A unique business concept is called a brand. Good quality, material wellness, better specifications and customer support will help to increase the brand value.
All the small and large business should take action to follow and ensure all the regulations. Otherwise a small mistake could ruin the brand. Well reputed companies have their quality control team for product testing.
TAX
Business tax system is different from individual income tax. Business also does not allow for corporate tax rates.
The owners or shareholders should personally pay tax on income from the business.
Risks
If you are new to the business world, you may fail. Don’t spend all your money and assets. Avoid taking unnecessary risks. If the business is making losses, close the business temporarily. Don’t take loans to cover the losses.
Number one reason for business success is customer satisfaction. If they like your product or service they will return to you. In failure of satisfy they will consider alternatives.
Financial literacy is the key to be a successful businessman. It effectively help you to get logical decisions to improve day by day.
