What is Business? That is an important topic. because it is the beginning post of Business guide for How to Being your own boss in your own biz. As the beginning, today we explain What is Business? Definition and its Features.
After completing our education All of us like to do a job. Most of them try to join with popular companies and work under another one. But few people don’t like to work under another person or boss. They need to be their own boss and earn unlimited income. For them, it is better to know What is Business?
Important of knowing What Is Business? Definition And Functions
If you would like to be a boss with unlimited income or interested to generate more job opportunities for others. Starting your own business can be the best investment for your life. That decision can be the most powerful way to control your life.
It’s a good opportunity for unlimited earnings and generates more job opportunities for others. Yes, you can achieve your dream, you can work like a boss in your own business.
You can start your own business without physical locations. With today technology, everyone can access to internet easily. So you can start your own biz on the internet without a high cost. such as, start blog site or Website, online earning sites, Your own Social media, Forum, and many more things.
So don’t limit your thinking only for physical business activities, just think about Business without physical location (internet-based) too.
So it is better to get a basic idea about What is Business? and its features? that will make easier your future steps.
What is Business? business definition
What is Business? there are a lot of definitions.
A Business is any profit-seeking activity that provides goods and services designed to satisfy customers’ needs.– CL Bovee
The purchase and sale of goods in an attempt to make a profit.
Above two definitions are defined business as a Commercial Enterprises. But most the business are not participating for Commercial activities. There is some business that participated in none profit activities like social welfare. So there is a common definition for business,
Business is an economic activity related to satisfying human needs and wants.
Most of the private sector business aims to earn profit but most of the public sector business work to achieve social welfare. So simply we can define business as any activity that related to profitable and non-profitable. So any type of business’s main target is satisfying the human needs.
A human need is a state of deprivation of some basic satisfaction like Food, Water, Clothing, shelter.
According to the Abrahim mallow’s, he introduced 5 types of human needs according to his mallow’s hierarchy of needs,
01. Physiological needs – Foods, Clothing, Home
02. Safety needs – Health and well-being, personal security, emotional security
03. Social belonging needs– love, family, intimacy
04. Self-esteem needs– esteem
05. Self-actualization– pursuing a goal, seeking happiness
A human wants are desires for a specific satisfier of deeper needs. Like, foods – bun, rice, noodles, Clothing – trousers, shirts, sarees
Wants are the ways how people are satisfying their needs. Because of the wants, it generates Demands for products (goods and services), demands are opportunities for new business. Any activities related to take those opportunities and work for satisfying that demand we can call as Business.
If you can identify the right opportunities on the market and able to satisfy those opportunities, you can start your business at any time. Sometimes it takes the minute to years.
What are Business aims?
All of the organizations including business have their own achievements. Those achievements/aims need to make decisions, to measure the improvements, lead the process, to analyze the business process and workers.
- Maximizing Profits – Try to achieve maximum profits. This is the most private-sector business aim. That profits important to business for long-term sustainability, for paying a return of invests, For future investments.
- Maximizing sales – Try to achieve maximum sales to increasing their Market share.
- Providing a service – Most of the public sector organizations try to provide quality services for low prices.
- Survival in the market – When business achieving the other aims they also make attention to survive in the market.
- Personal satisfaction – In most the small business owners try to achieve the self-satisfaction and respect.
- Maximizing Employee Welfare – Aim to satisfy workers in the business.
- Maximizing share price
The functions of business
Already you know What is Business? then, it is better to know about What are the functions in the business?
Every business has different functions. Those are different from each to each function. That functions help the business to achieve their aims.
Activities related to the conversion process which converts inputs (materials, components) into desire outputs of goods and services.
Activities are related to identifying customers’ or peoples’ needs and wants and satisfy their needs. That includes pricing, promoting, producing and placing.
Activities related to control financial activities in business. That include activities like reporting transactions, preparing financial reports, analyzing financial reports and other details.
All activities related to human resource management and activities related to human welfare. It includes activities like Recruitment, Selection, Training, Performance appraisal, Health and safety, and payment systems.
5. Research & developments
All activities related to innovations and developing its products, technologies, and systems. As a result of this, a business can introduce new or developed its products and technologies to their organizations and for their markets.
All activities related to Documentation, communication and Supervising.
When if those all activities have better coordination with each to each activity you can run your business without any issues. It helps to achieve your and your business targets easily.
As an example, if you want to sell a quality product for a low price with profitability, you should have skillful staff, quality materials, financial ability to buy other necessary materials and resources and good marketing with efficient and effective. If all of those requirements can be achieved, then you can sell your quality product for a low price with profit.
Stakeholders of business
We can see a lot of persons/parties have interested and attention for your business. Each stakeholder is interested in different things. Those parties can influence your business. So it’s better to know who is your stakeholders and what are their interests and influences for you and your business.
1. Owners or shareholders – Profit, Stability, improvements
2. Managers – Profit, improvements, job satisfaction
3. Employees – Salaries, welfare, job satisfaction
4. Customers – Price, quality, services
5. Creditors – Settlements of their credits, interest
6. Suppliers – orders, payments
7. Competitors – Price, Market share
8. Unions – Safety of employees, Facilities
9. Government – Tax, Employment, Production
10. Society – Welfare, jobs
If you are interested to start your own business, you should have a better understanding of much more other things including What is Business? Because in today business environment became more complicated. Those create business opportunities as well as threats to the business. So you have to manage it smoothly by getting the help of support services such as insurance.
I hope the above details help you to Explain What Is Business? – Basic Guide to Starts your own Business. And if you have any problem or know more on What Is Business? Please share with us in the comments section below. Thanks!
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Takitakibiz was founded in Aug.2019 by Keshan Liyanagama.
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