Wednesday, October 14, 2009

What is business?

By Sai Verano

I've been very much close to this term ever since I was born (simply because our family has a business of our own). I've seen how my dad manage people and my mom handles the payroll. It seems like having a business is a pretty tough career. But before we go into the juices of a successful business, let us first define what the term "business" really is.

As for me, when I hear the term "business", I think of money (revenue) and costs. Some may think of firm or enterprise. Some may think of corporations and partnerships. According to Wikipedia.org, a business is "a legally recognized organization designed to provide goods and/or services to consumers". From here we can see some keywords for us to remember this definition, which are:
  • legally recognized
  • organization
  • goods and/or services
  • consumers
Legally recognized. Business are now asked to register their names, their business activities and other details about their organization. They are being asked to register for business taxes, corporate taxes and the like to help boost the economy. Business registration is also used to track how many business are being established at a given period of time. This is also used to track the statistics of how many foreign  investors opted to bring their money to the business sector. 
 
Organization. A business is also considered an organization because it is composed of groups of people working together to achieve a common goal. Businesses have their departments such as their management department, marketing department, accounting department, human resource department, finance department and so on. These individuals in their assigned  divisions work together to achieve higher sales, lower advertising costs, employee payrolls and budget costings and other organization intentions.
 
Goods and/or services. These are the products of the company which may also be classified as tangible (goods) and intangible (services). Tangibles are those items sold by a firm that are perceived by our senses. Not all items sold by an enterprise are perceived by our senses, these items now fall to the intangible category or the service sector. Some examples of tangibles are combs, glasses, glasses, beds, computer and cellphones while car wash,  consultations and counseling are examples of intangible products.
 
Consumers. This is probably the most important aspect of our definition. Business cannot survive if they don't have their markets or simply consumers. No one will buy their products or patronage their services. Consumers are now being recognized as one of the most integral part of a firm's success. Consumers decide the demand for a particular product which results to the number of supply to be produced by the company. Consumers also set prices for a product in the market, economically speaking. Consumers have their powers to control a business nowadays. They may help your business advertise your products by word-of-mouth advertising and even direct referrals to your physical store.

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