Business as a term can be defined as the indulgent of economic activities like purchase, exchange, sale or production of goods and services in a way to fulfil the customers’ demand and having a prime motive to earn profit or having a social cause for the same.
Business as an activity can be decomposed into a sequence of steps:
- Idea – It consists of a valid and thorough research of the domain in which the business is going to be carried out as well as the name of the business.
- Business plan – It’s basically the answer to some of the questions as to what’s the purpose. Who are the end users or customers? How to manage finance? This is the phase where extensive research about the customer base being present at the market and their corresponding needs are to be taken into consideration which will indirectly help to build a more targeted and responsive strategy.
- Partnerships – It’s basically the step where finding a partner with complementary skillset to the owner is to be found out which will indirectly help the firm flourish.
- Government registration – Before actually taking the business to its full operational mode, the owner(s) need to acquire a variety of legal licenses. This phase also includes the fulfilment of various forms for federal and state income tax obligations.
- Building the team – This phase literally decides the actual working force of the firm and often depicts the flow of control within the organisation which keeps track the working loads and status of the different strata.
- Advertisement – Now comes the phase wherein more focus is given to the brand advertisement and their promotion. This phase has already gone pass through all the development phases of the company or firm and needs only the brand exposure so as to reach the targeted customers and satisfy their demands in an actual way they wanted.
- Growth – Growth phase is something which most of the already developed companies or firms lag which in turn makes their achievements, customer reach and sale limited and even obsolete.
The firm is a sector in which one group of people acts together as a single entity; most commonly, owners of the firm are stockholders who exchange information for the corporation’s common stock. Incorporating the firm releases owners of the financial liability of business responsibilities.