In this article, I will explain the nature, elements, features, and characteristics of business…
Elements of Business-
The key elements of a successful business include various points for determining the strong business model…
1. Identify your target audience:
Targeting the right customers means to follow the right person for our particular product who truly need or want your product and service. If you are not targeting your customers or prospects then you have to kick out from the market. So, that is the reason, selecting the best audience is a great element for a successful business.
2. Establish business procedures:
If you want to start a business then you will have to understand the activities which are related to your business model work. First of all, you have to determine the key aspects of business activities and focus on to target the business.
In the case of Ticketmaster, an online ticket exchange marketplace or area, essential business processes include marketing and product delivery management.
3. Record essential business resources:
The main motive of every business is to find out the new customers daily and reach our business goals. In business, they require an adequate amount of resources for the purpose of achievement of predetermined goals. The resources can include a website, intellectual property, warehouses, capital, and customer lists.
4. Build value:
In this elements of business, the company focuses on to build the value in the market because it helps to grow the business in the future. They provide an innovative service, a new twist, modify our existing products, etc for our customers to satisfy them and beat the huge competition in the market.
So, this point is very important for any business because it can decide the future movements of the business and their opportunities.
5. Determine key business partners:
No business can survive individually i.e if a business wants to survive in the market then they have to focus on their key partners because these key partners are helping to achieve the goals of the business. The key partners can be named as a supplier, advertising partners, marketing consultant and so on.
Using the example of home depot, key business partners may be lumber suppliers, parts wholesalers, and logistics companies.
Nature and Purpose of Business-
The list of nature of business is best understood on the basis of its features and characteristics which are as follows:-
1. Economic Activity:
Economic activities are those kinds of activities which are totally related to the wealth of production. Every individual is engaged in some kind of work for running us life. All these activities create desires, actions, and utilities.
In any business, the main motive is to earn profit and maximize our potential wealth for a better future.
2. Business Activities:
In the business, they include various activities such as production or purchase or distribution. Firstly, the business produces the goods or products, and after that, they distribute our products in the market and at last, the number of prospects means customers purchase those products.
So, this is the chain cycle of business activity and with the help of this cycle, the company or business earn a huge amount of profits and make our business strong or healthy.
3. Goods and Services:
The business deals in goods and services because they help to produce them and distribute them in the market for satisfying the human needs and wants. However, if a company wants to make a business successful, then it will have to produce and distribute the goods and services for the achievement of goals.
4. Continuous Transactions:
In the business, the movement of goods and services indicates the facility of the regularity of transactions between the sellers and the customers. The business produces the goods and services in a regular form and place in a market according to their customers’ taste and preferences.
In simple words, continuity of transactions helps to achieve the pre-determined assumptions regarding their business goals.
5. Profit Motive:
The main motive or element of every business is to earn profits with the help of customer satisfaction because if the customers are satisfied then they will transfer into a profit basis. A margin of profit indicates the goodwill capacity of the business and future development also.
So, that is the reason, every business firm focuses on the capacity of the profit.
6. Social objective:
The business helps to serve a social object by the help of improving the standard of living. They provide facilities with the benefit of society such as employment facilities, produce quality products at a cheap price, give offers and discounts and so on.
Features or Characteristics of Business-
The features of the business are also known as essential characteristics of business. So, it includes various points such as:-
1. Exchange of Goods and Services:
This is the first characteristics of business and it means that all business-related activities are directly or indirectly related to the exchange of goods and services for the purpose or object of earning profit or wealth. The business produces its goods and distributes them in a market for satisfying the customer needs and wants.
2. Continuous or Numerous transactions:
This is the second characteristics of business and it means that in business, the exchange of goods and services is a part of a regular consideration. A business or businessman regularly finalize various deals of transactions with their suppliers and other individuals.
So, that is the reason, business is the flow of numerous transactions so that they can regularly produce or distribute our goods in the market.
3. Profit earning:
In this characteristic, the business has to focus on their profits because every business or businessman works for the benefit of profit, without profit, no business can survive in the market because it helps to allocate the capitals from the market and capital always helps the business to grow them.
In simple words, the profits as a part of the reward for the services of a business or businessman.
4. Risks and Uncertainties:
This is the fourth characteristics of business and it means that the business is totally following the procedure of risks and uncertainties, without risks, no business can become successful. Some risks like risks of loss due to fire and theft. There are also various uncertainties like loss due to change in demand, due to change in customer tastes and preferences, and so on. All these risks are borne by a businessman.
5. Buyer and Seller:
In this characteristic, the business makes a contract between the seller and the buyer because a business plays a two-way process. In this contract, the seller produces or distribute their goods and products and buyer purchase their products and goods.
6. Production Based:
This is the sixth characteristics of business and it means that the business helps to produce the goods and services in the market. In this case, it is known as an industrial activity or the industry can be primary or secondary.
7. Marketing and Distribution of goods:
In this characteristic, the business helps to promote the goods in the market through various marketing strategies and after the marketing, they distribute our goods in the market for satisfying the needs an wants of the customer according to their expectations. So, this type of activity is called as commercial activity.
So, these are the nature, elements, features, and characteristics of business…