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DEFINITIONS OF BUSINESS

Stephensondefines business as, "The regular production or


purchase and sale of goods undertaken with an objective of
earning profit and acquiring wealth through the satisfaction of
human wants.

According toDicksee, "Business refers to a form of activity


conducted with an objective of earning profits for the benefit of
those on whose behalf the activity is conducted.

Lewis Henrydefines business as, "Human activity directed


towards producing or acquiring wealth through buying and
selling of goods.

Thus, the term business means continuous production and


distribution of goods and services with the aim of earning profits
1. Exchange of goods and services
All business activities are directly or indirectly concerned with the
exchange of goods or services for money or money's worth.

2. Deals in numerous transactions


In business, the exchange of goods and services is a regular feature.
A businessman regularly deals in a number of transactions and not
just one or two transactions.

3. Profit is the main Objective


The business is carried on with the intention of earning a profit. The
profit is a reward for the services of a businessman.

4. Business skills for economic success


Anyone cannot run a business. To be a good businessman, one
needs to have good business qualities and skills. A businessman
needs experience and skill to run a business.
5. Risks and Uncertainties
Business is subject to risks and uncertainties. Some risks, such
as risks of loss due to fire and theft can be insured. There are
also uncertainties, such as loss due to change in demand or fall
in price cannot be insured and must be borne by the
businessman.
6. Buyer and Seller
Every business transaction has minimum two parties that is a
buyer and a seller. Business is nothing but a contract or an
agreement between buyer and seller.
7. Connected with production
Business activity may be connected with production of goods or
services. In this case, it is called as industrial activity. The
industry may be primary or secondary.
8. Marketing and Distribution of goods
Business activity may be concerned with marketing or
distribution of goods in which case it is called as commercial
activity.
9. Deals in goods and services
In business there has to be dealings in goods and service.
Goods may be divided into following two categories :-
Consumer goods: Goods which are used by final consumer for
consumption are called consumer goods e.g. T.V., Soaps, etc.
Producer goods: Goods used by producer for further
production are called producers goods e.g. Machinery,
equipments, etc. Services are intangible but can be exchanged
for value like providing transport, warehousing and insurance
services, etc.
10. To Satisfy human wants
The businessman also desires to satisfy human wants through
conduct of business. By producing and supplying various
commodities, businessmen try to promote consumer's
satisfaction.

11. Social obligations


Modern business is service oriented. Modern businessmen are
conscious of their social responsibility. Today's business is
service-oriented rather than profit-oriented.
SMALL BUSINESS MANAGEMENT
Some small business owners dont think that there is such a
thing as "small business management". They believe that if you
have 10 or fewer employees than you can manage your
business by doing as much as possible yourself, then telling
your employees what to do and making sure you catch them
before they make a mistake or mess something up.

In fact, Small Business Management is where youve organized


and systemized your small business to virtually run itself. This
applies to the 1-person business as well.
SMALL BUSINESS MANAGEMENT
Because small business management is the surest path to small
business success and freedom. Youll never be able to relax or
take a "real vacation" unless you have made your business
capable of, at least in the short term, running without you. Take
the time now to organize and systemize your business so you
wont have to in the future when the process is more complex.
Write Your Business Plan
A business plan is an essential roadmap for business
success. This living document generally projects 3-5
years ahead and outlines the route a company intends
to take to grow revenues.
STARTING A SMALL BUSINESS
Step 1: Write a Business Plan
Use these tools and resources to create a business plan. This written guide
will help you map out how you will start and run your business
successfully.
Step 2: Get Business Assistance and Training
Take advantage of free training and counseling services, from preparing a
business plan and securing financing, to expanding or relocating a
business.
Step 3: Choose a Business Location
Get advice on how to select a customer-friendly location and comply with
zoning laws.
Step 4: Finance Your Business
Find government backed loans, venture capital and research grants to help
you get started.
Step 5: Determine the Legal Structure of Your Business
Decide which form of ownership is best for you: sole proprietorship,
partnership, Limited Liability Company (LLC), corporation, S corporation,
Step 6: Register a Business Name ("Doing Business As")
Register your business name with your state government.
Learn which tax identification number you'll need to obtain from
the IRS and your state revenue agency.
Step 7: Register for State and Local Taxes
Register with your state to obtain a tax identification number,
workers' compensation, unemployment and disability insurance.
Step 8: Obtain Business Licenses and Permits
Get a list of federal, state and local licenses and permits
required for your business.
Step 9: Understand Employer Responsibilities
Learn the legal steps you need to take to hire employees.
Step 10: Find Local Assistance
Contact your local DTI office to learn more about how DTI can
help
MANAGING TIME
Practice the following techniques to become the master of your own
time:
Carry a schedule and record all your thoughts, conversations and activities for a
week. This will help you understand how much you can get done during the
course of a day and where your precious moments are going. You'll see how
much time is actually spent producing results and how much time is wasted on
unproductive thoughts, conversations and actions.
Any activity or conversation that's important to your success should have a time
assigned to it. To-do lists get longer and longer to the point where they're
unworkable. Appointment books work. Schedule appointments with yourself and
create time blocks for high-priority thoughts, conversations, and actions.
Schedule when they will begin and end. Have the discipline to keep these
appointments.
Plan to spend at least 50 percent of your time engaged in the thoughts, activities
and conversations that produce most of your results.
Schedule time for interruptions. Plan time to be pulled away from what you're
doing. Take, for instance, the concept of having "office hours." Isn't "office hours"
another way of saying "planned interruptions?"
Take the first 30 minutes of every day to plan your day. Don't start your day until
Take five minutes before every call and task to decide what result you
want to attain. This will help you know what success looks like before
you start. And it will also slow time down. Take five minutes after each
call and activity to determine whether your desired result was
achieved. If not, what was missing? How do you put what's missing in
your next call or activity?
Put up a "Do not disturb" sign when you absolutely have to get work
done.
Practice not answering the phone just because it's ringing and e-mails
just because they show up. Disconnect instant messaging. Don't
instantly give people your attention unless it's absolutely crucial in
your business to offer an immediate human response. Instead,
schedule a time to answer email and return phone calls.
Block out other distractions like Facebook and other forms of social
media unless you use these tools to generate business.
Remember that it's impossible to get everything done. Also remember
that odds are good that 20 percent of your thoughts, conversations
and activities produce 80 percent of your results.
TIME MANAGEMENT TIPS
1. Ignore Your Email
This probably sounds a lot easier than it is as most people tend to check
theirs every 5-10 minutes. But if you add up all of the minutes that it takes to
continually check your inbox and then reply, its easy to see why its such a
time waster.

2. Dont Multi-Task
In thePsychonomic Bulletin and Review, experts showed that only about
2.5% of people are able to effectivelymulti-taskand still do well at each
activity. Additionally, the Institute of Psychiatry at the University of London
shows that a persons IQ falls 10 points when theyre overly stimulated by
emails, texts, and phone calls.
On the other hand,time managementexperts estimate that focusing on one
thing at a time will double productivity, work output, and performance. And
when youre running a small business, that can mean the difference between
success and failure. Force yourself to do one thing at a time by setting a
clock or timer for a certain amount of time, and then focus on that one task
3. Set Step-by-Step Goals
Its one thing to set a goal, and quite another to set a detailed goal where
the steps and increments needed to accomplish it are outlined in advance.
Many people set general goals and then never follow through with them.
For example, think of the millions ofNew Years resolutionsthat are set
every year. The problem with these types of goals is that while theyre nice
ideas, people just dont know how to implement them.
In order to make the best use of your time in your business, your day
should be made up of a series of goals that have specific milestones. For
instance, if your goal is to get five new customers, you should think it
through and write down all of the steps that youll have to take in order to
accomplish it. By breaking larger goals into smaller steps, you will be able
to more effectively accomplish your goals since you know exactly what
steps must be done along the way. Plus, who doesnt like a little positive
reinforcement? Knowing youve completed certain steps towards
conquering your goal can be extremely motivating.
You should set goals forbefore lunchandafter lunch, and make sure that
the most important ones are slated for before lunch. If you know that you
cant leave to eat until your goals are met, youll be more likely to
4. Organize Your Time and Space
Its difficult to work in an organized manner when everything
around you is in chaos.
Organization experts agree that the first step to increasing
productivity is to clear and then organize your space. Eliminate
everything that isnt necessary, then create a system for the
things that are. For example, use a color-coded file folder for the
items that are urgent, to be done that day, and another for
things that can wait until tomorrow.
5. Put It in Writing
Theres something about committing to a plan in writing that
somehow solidifies it in your mind. By writing down your plan of
action for the day including your goals and the details of them
youll be armed with a plan that should carry you efficiently
through the day. Youll of course still be confronted with
distractions, but if you have a clear understanding of what you
need to accomplish for the day, youll be more likely to get right
back to the task at hand, rather than aimlessly drifting from one
task to the next.
Some experts believe you should create this list the night before.
That way, youll be able to start the next day fully prepared,
rather than wasting time deciding how to approach tasks and
figuring out what you need to get done.

6. Turn Your Car into an Office


THREE STEPS OF A PROCESS TO
GENERATE BUSINESS IDEAS
FIRST STEP: Integration with youreducation knowledge,
passion and hobby.

SECOND STEP: Finding the problem atthe market

THIRD STEP: Defining a target market.


If you accomplish the first step of a business ideacreation process
successfully, you will pass the half way to make your business idea to
be with the highest possible business potential energy.

This first step when you integrate knowledge, passion and hobby
isintegration of your skills into your business idea. However, what are
the skills? In the simplest form skills aredefined as a knowledge
ofdoing somethingor accomplishing something. This knowledge is
coveredthrough five different sources of knowledge:
Knowledge from your home,
Knowledge that comesthe educational system,
Your own intelligence,
Your own experience, and
Your hobby.
LUNCH BREAK
MANAGING MY DAY TO DAY
BUSINESS OPERATIONS
Day-to-day business operationsare the activities that a
business and its employees engage in on a daily basis for the
purposes of generating a profit and increasing the inherent
value of the business as a going concern.

The primary purpose of a business is to generate sufficient


income from its activities to pay its expenses, provide a profit to
its owners and increase the intrinsic value of the business as an
income-generating asset. Employees accomplish this goal by
performing specific functions.
FUNCTIONS OF DAY-TO-DAY
BUSINESS OPERATIONS
Line Functions
Line groups perform tasks that are directly related to accomplishing the
company's objectives. They are involved in the revenue generating process of
the company. For example, in a manufacturing business, the line workers are
responsible for the production of the products that the company produces for
sale. In a service-orientated company, the line workers are the individuals
responsible for serving its customers (think of accountants, doctors,
stockbrokers, lawyers, store salespersons or house painters). In other words, the
line employees make the money and add value to the company as an asset by
generating profit and increasing market share.
Staff Functions
Staff groups are responsible for supporting the line groups. Staff is responsible for
creating and maintaining the business' infrastructure. They provide advisory
services and act as controls on the line groups. Examples of staff functions
include the legal department, human resources department and accounting
department. While staff activities do not directly relate to the generation of the
business' profits and achievement of its goals, they provide needed support to
MANAGING MY FINANCES
Find the best local credit union
Find a trusted mentor.
Choose the correct accounting software.
Consider hiring a bookkeeper
Accelerate cash flow with mobile payment systems.
Look into factoring receivables.
Understand and measure capital versus operational costs.
Measure bottom lineimpact by looking at the service budget year over year.
MANAGING MY MARKETING AND
SALES
Avoid rulemaking.
Great salespeople generally want freedom. They want
autonomy. Compliance doesn't work for these people. The better
you're able to remove the obstacles and set them up to produce
those results, the more successful they will be -- and you will be.
Don't ever tell them what they can't do, because they will
simply focus their creativity on finding ways to overcome your
rules.
Become a coach.
That means asking, not telling your high performers what to do.
Ask them to put themselves in your shoes over a particular
issue, and discuss a variety of possible options. Let them own
the solution to whatever obstacle is at hand.
Let them do what they do best.
In order to motivate and lead salespeople effectively, you
want to think about what's important to them and what
drives them. If you have employees who are not great at
details and writing proposals but they're great at selling,
then let them sell. Find someone else to compensate in
some way to support them on the detail.

Give them pats on the back.
You need to recognize them. Especially with top-
performing salespeople, money isn't often the main driver.
It's really about being respected. It's achieving and getting
those results.
MANAGING MY BUSINESS
TOWARDS SUCCESS
Have a written plan.Without a plan, it is merely a dream. It doesn't have
to be a book, but you need a few pages outlining specific objectives,
strategies, financing, a sales and marketing plan, and a determination of the
cash you need to get things done. Writing it all down is a crucial first step.
Don't marry your plan.Every great military general in history has known
that even the best-laid plan sometimes has to be thrown in the fire when the
bullets start flying. Adjust, confront and conquer.
Keep your ego in check and listen to others.Advisors are crucial
because you need people to bounce ideas off, inspect what you're doing, and
push you to greater accomplishments, holding you accountable for what you
are committing to do. Always be good to your word and follow through on
commitments, even when difficult and challenging. This isn't about you; it's
about the business. Don't take things personally and stay out of emotion. Do
not let your ego take control.
Keep track of everything, and manage by the
numbers.
Create written systems for everything, because you will reap
benefits from them later on. This is how you train your
employees and retain consistency. Know your numbers and
check them daily and make all decisions based on what they
tell you. One of the most important calculations is cash flow
pro forma. Determine how much cash you need to do the
business, and do not start without the required cash on hand.
Delegate to employees and avoid micromanaging
them.
A manager's job is to delegate and then inspect progress. So
don't be a control freak. Keep business organization flat. If
you delegate effectively, you will get more and better then
you expect. Have an actual written training and orientation
plan so your employees know what is required of them. Use
Use the Internet.
It is incredibly powerful and very cost efficient, but it takes
time and some skill. It is about creating a community, using
social media networking such as Facebook, YouTube, Twitter
and blogging to build rapport with your market. You need to
get on the train and do it, because your competitors are.
Reinvent your business.
It is net profit, not gross revenue, that you want to focus on.
Separate yourself from your history and create a new
competitive advantage, be it a focused niche or super
service, but not by discounting.

Above all, have fun. Being an entrepreneur is your choice,


so make it work. It can be done. You can survive, emerge

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