Setting Up Business and Profitability
A business is simply defined as an unincorporated body or entity, normally engaged in commercial, corporate, or even professional activities for profit. Businesses may be for-profit or non-profitable entities that operate with the aim to meet a social need or further a social purpose. The term “commerce” was derived from the medieval Latin “costs sold” and has come to mean the buying and selling of goods, services, commodities or ideas. In modern times, “commerce” generally refers to the business activities of buying and selling of goods, services, commodities, ideas or property and involves an exchange of currencies. While the word “commerce” generally refers to commercial activity, it is also used in a broader sense that includes all the normal activities of life involving commerce, the production of goods or services, interaction of individuals or groups, exchanges of information or data and the transfer of assets. Today, business is used in a much broader sense to include all forms of undertaking by individuals or small organizations to promote the welfare of society. Learn more information about Small Factories.
The practice of creating new products, processes, marketing strategies or setting up new factories and distribution channels is known as business. Business therefore, involves the process of creating and maintaining a market for your goods or services, setting up your production facilities and making sure that your resources are available at every point in time. The practice of business also involves strategic management of your resources, setting your objectives and determining your competition and their strengths. It also involves the allocation of resources to specific purposes and strategies. Business is therefore, not only about creating and selling goods and services, but also involves human resources, distribution, strategic planning and operation.
Business is therefore, a procedure by which entities create a market for their produced goods and services and organize their production facilities so that these goods and services can be marketed and exchanged. A business is therefore, a procedure for the operation of organizations in which the participants are independent of each other and no one controls them directly but themselves. For-profit and non-profit businesses are both procedures for conducting business. The procedures are different because for profit businesses involve profit transfers while nonprofit businesses do not involve any transfer of profit. Business is therefore, the process of creating a market for the produced goods or services and organizing production facilities so that these goods and services can be marketed and exchanged.
There are many businesses today. These businesses are run by individuals or small firms with the help of a corporation, partnership, association or a business firm. However, in some countries there are many businesses that are run by large business enterprises such as government agencies, educational institutions and hospitals. All the business enterprises share certain characteristics and all have to follow the same laws and regulations.
All businesses engage in many activities such as producing, processing, selling, buying, trading, providing services and advertising goods and services. All businesses are known as producers; producers produce, process, sell and distribute goods and services. All businesses employ workers including skilled and unskilled workers and all businesses have commodities or products to sell. All businesses are classified into different categories; for example there are producers, distributors, traders, suppliers, industrial product manufacturers, producers, cleaners, wholesalers, retailers, employees, capital stock, financial activities, purchasing agents, sales agents, administration, education, finance, lending, building and construction businesses, legal process, intellectual property, manufacturing, marketing and advertising businesses, service sectors, service providers and the main article is uncertainty.
Irrespective of what business you are in and regardless of what business you want to conduct, whether it is physical, mental or online business, you will have to establish a legal entity or rather you will need to set up a legal identity of your self. Your identity will be a distinct legal entity distinct from your personal identity. The distinct legal identity will then enable you to establish, maintain, collect, transfer, lend, advertise, sell, acquire, possess, control, receive, distribute and dispose of the goods or services and all these activities are carried out by you or by one of the established agents or individuals under your authority. In order to ascertain the profitability of your business, you will need to establish your income as well as the profit made from your business.