Posted in From the very beginning of your journey into business, you must be able to say categorically what kind of business you’re going into or will like to go into. Clarity on the kind of business should essentially be the start off point of your journey into the world of business exploits.
This clarification will assist you in establishing the direction of the business and also in putting effective plans and strategies in place for the ultimate success of the business.
Your kind of business will determine the kind of tools, facilities, accounting, marketing and promotional needs and strategies you will employ.
A lot of people have gone into businesses without a clear understanding of the kind, nature and direction of the business and then became confused and frustrated midstream. That should not be you fate!
ALL BUSINESSES FALL INTO FOUR BASIC CATEGORIES:
- Manufacturing
- Wholesale
- Retail
- Service
MANUFACTURING
A manufacturing business is one that makes tangible products usually in large quantities. It sells its products to wholesalers and rarely sells to consumers. It could also engage a manufacturer’s representative who sells directly to the public.
WHOLESALE BUSINESS
A wholesale business is a business set up that does not manufacture anything but buys products in large quantities from the manufacturers from and sells in smaller quantities to the retailers. It rarely sells directly to the consumers. A wholesaler is sometimes called a middleman.
RETAIL BUSINESSES
Retail businesses buy from the wholesalers and sell directly to the consumers. Retailers run stores and selling units that open to consumers.
SERVICE
Service businesses deal in intangibles. They sell time, skills and expertise in exchange for fees. They could be retail service business, selling directly to the end users or those that serve wholesale or manufacturing customers.
I believe you can now answer this all important question, concerning the kind of business you would like to go into.
Understanding these fundamental principles of business start- up will definitely fast track your access into the world of wealth and riches.
Definitely the understanding gained from this write up will help you make the right decision on what line of business you should go into.
To your prosperity
Sharon Akinoluwa
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