Before going through this article, we may clear it to the readers that the title ‘Start Own Business’ refers to starting your own business.
Business is one of the oldest institutions and an important one in any welfare state. Popular definition of business describes it as a legally recognised organisation engaged in providing goods and/or services to the consumers. Business is also a popular mode of employment for gaining personal capital profits. Typically, a businessman or owner of the business secures essential manpower and resources to provide goods or services.
Ownership and Kinds of Business Organisations
To start own business, you need to at least know about various types of business set-ups or entities. Business organisations are popularly classified on the basis of ownership. There are usually four types – Proprietorship, Partnership, Corporation and Co-operative.
The simplest is the proprietorship, which is a business entity owned by a single owner. The owner has to make all necessary arrangements and the profits are earned by him alone. In the partnership firm or business entity, there are two or more individuals who share the responsibilities and profits among themselves. Corporation refers to the business entity owned by shareholders and administered by a board of directors. The profits in a corporation are distributed among the shareholders of the business organisation. In Cooperative organisations, the members are responsible for running the organisation.
Key Components in a Business Organisation
Before start own business you must also know about different departments and components of the establishment. A number of responsibilities and business functions have to be carried, irrespective of the kind of business you are in. In small business enterprises the responsibilities are limited and often performed by a small staff. The key component in business are Management; Business Administration; Finance; Operations; Marketing and Sales; Human Resource Development; Communications and Public Relations; Research and Development. All these responsibilities are taken care by departments, by the same names. The strength of these departments depends on the nature of the business and the total strength of organisation.
Small Business and Home Business Entities
With the latest technological developments, many business processes have been made simple. A relatively small number of people are now required to manage and run a small business enterprise. One of the most upcoming trends in the small business enterprises is the home business concept. Home business is a small business enterprise that an individual can manage and administer from his home. For example, a graphic designer may create his own print and online graphic cards and sell them from his place. With web services he can communicate with his clients and customers, deliver the services and get paid.
Niche and the Chances of Survival
Niche has become one of the hackneyed terms used by the new age business entrepreneurs. Niche refers to catering to a specialised segment or division. The competition in business is severe and the chances of survival for a new comer are few in established business enterprises. However, if one happens to provide a specific service, one that has a narrow scope and very less competition, the chances to survive are greatly increased.
Therefore, it is our suggestion that you start own business by just looking for a very specific kind of service wherein competition is the least.