Business is exchange of money and money’s worth, with
things, ideas, experience, knowledge, goods and services, etc. the motive of
business is to make investment and earn some profit in course of time.
Investment can be in terms of physical as well as non-physical materials or
things. Every business should have some goals to achieve. While setting any
business, you should do much homework, if you wanted to set successful
business. You should consider various things like customer, environment, raw
materials, technology, and scope of business while setting up business. These
terms of are described below;
i)
Environment: Environment is must important for
setting up any business. Business operates in environment. So before setting up
any business you should analyse business properly, it helps you know which
business would be appropriate in particular place. Business environment
consists of various elements that provide opportunities and threats to your
business. If you set your business according to opportunities available in the
environment then your business would be successful. Suppose you are about to
set home business of selling pickle, and the people of your locality like
pickle of mango. In this case if you do analysis before setting up business,
you would know the opportunity i.e pickle business of mango, and if you set
business of pickle business than that business is sure to get success in course
of time.
ii)
Goals: Goals of business are motive of setting
up business. Before setting up business you should define its goals. Goals
should be set according to opportunities available in environment of business.
Goals provide the reason of existence of business. Setting of goals of business
is critical part of business. Goals should be flexible; a rigid goal is threat
to any business. For example you set a school for providing primary level
education to students of your locality, because there was no any school in your
locality that provides a primary level of education. After sometimes, you would
reach up to that goal, and now the need of providing secondary, level of
education arises, in this case you should be able to provide these services to
the students of your locality.
iii)
Scope of business: While you are setting up
business depending upon the capital invested, its scope should be determined.
Scope of business should be clearly known, and defined by you. Scope of
business defines the areas it can cover. Scope is the process of determining
future expansion of your business that you could do. It helps your business to
have perpetual succession and continue its operation when primary goal of your
business is achieved by setting another goal. Suppose you have established
iv)
Raw materials: raw materials are inputs that
business uses for producing output. They can be both in physical and
non-physical form. Physical raw materials include inputs like capital, labours,
materials etc. Non-physical includes planning, organizing, controlling etc.
ascertainment of all these things if determined before setting up business
protects the business from facing crises of supply of raw materials during its
operation that helps the business run smoothly.
v)
Customers: customers are consumers who pay money
for consuming goods and services supplied by business. They are the main source
of income for any type of business. A business would be successful thus if it
determine the targeted consumer of the goods and services produced by business.
Consumers always want better and sophisticated goods, so business should know
wants and changing attitude of consumers.
A business would be successful business if anyone is well
prepared and got enough knowledge what is he doing. When one knows about pros
and cons of business that may occur in future in the present time, he could be
well prepared to take advantages of pros, and take action to deal with cons
when that occurs in future course of time. To know about all these if one pays
attention on above mentioned points it would help him to great extent.
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