What’s the business?
What exactly is business? Business is a method of making, selling and distributing products and services for profit. Companies typically deal with products and services, both industrial and consumer. Both consumer goods and industrial items are designed to be consumed. Business activities also include services like electricity water, water, finance advertising, warehouse, transportation, and much more. While some of these activities may not be directly related to work, some are. Let us discuss a few examples.
In the past, businesses were primarily produced-based. Today, the business model is consumer-oriented. This means that instead of producing what is wanted the business is focused on what people would like to buy. While it is a social enterprise however, it has its own negatives. Uncertainty is among the biggest drawbacks to business. Uncertainty may be caused by changing consumer needs, government policies or a mix of both. Businesses can also be affected by trade cycles. Keynes states that trade cycles can include periods of high unemployment, both good and bad trade, and declining prices.
The motive behind business is profit which is what the name suggests. It’s not a legitimate business when it doesn’t have the motive of profit. Businesses are run to make money and build wealth. Businesses can make money through providing top-quality products and services that satisfy the customers. A business can thrive by offering quality items and services at low costs. Customers are the most important aspect for businesses to thrive. The performance and profitability of a business is directly related to the satisfaction of its customers.