Problems Of Business
Today we are going to tell you about the Problems of Business. Yes, we are telling you because if you want to start a good business, we know that you are going to have a lot of problems in business. It will be much easier for you to overcome problems of business if you already know them. If you follow these tips you can make a great business.
Starting a business does not mean that you have to invest some money to buy a machine and start working, but if you want to start a business, there are many things you need to do to start a business. We will tell you about these things. So let us know about the business problems that face us in business life.
Problems Of Business – Problem facing by Businessmen
The basic motive of all business organization is to earn profit through exchange of goods and services Maximization of profit and minimization of cost and expenses are the two main aims of every business enterprise. However, in every business concern, there are certain problems faced by every management. It is necessary to run business very carefully and efficiently by making quick and right decisions to solve every problem of business, Essentials of business means the problems which are faced by a businessman before or during establish a particular business.
The problems facing by Businessmen
The following matters are considered before starting a new business.
1) Assessment Of Opportunity:
There are following different criteria to determine the suitability of business.
Profit yielding capacity, The degree of risk involved, The extent of skill and knowledge, The amount of capital to invest, The personal taste of the person.
2) Nature Of Business:
In starting to choose manufacturing, wholesaling, retailing, or brokerage, import, or export. new business the businessman has to decide to type and nature of business. He May choose manufacturing, wholesaling, retailing, or brokerage, import, or export.
3) Form Of Business Organization:
To organize the business he may decide on Sole Proprietor, Partnership, Joint Stock Company, or Cooperative Society, His decision will depend on factors like capital, experience, and nature and scope of business.
It includes basic installations and facilities as road, power, plants, transportation & communication system. All types of businesses need infrastructure. Infrastructure provides a sound basis for al types of business.
5) Future Of Business:
Today’s product gets outdated in future As past experience tells us that black and white TV, fountain pen and radios have been replaced by color TV, ball pen and cassette or CD players respectively Consumer taste is also on the change. World affairs, local government policies have become unpredictable. Technology is like a fish.
“Finance Is The Life Blood Of Business.” Financial consideration is very important before starting a business Unless sufficient funds are not arranged, it would not be possible to operate the business. The funds or capital can be arranged by himself or by credit Business has three sources of finance: Capital Loans Retained earning.
Another worth considering factor is to select the proper location. If it is a manufacturing business one must consider the availability of raw material. Like, skilled labor, transportation, etc. and if it is a retail business then factors like nearness to market sale promotional devices come under consideration.
8) Labor Problem:
The business requires labor. The larger the business the greater number of laborers required Labor may be classified into three groups: Skilled Labor ( Engineers, doctor, MBAS, Professors ) Semi-Skilled Labor ( Mechanics, Accountant, Clerk) Unskilled Labor (Diggers, Loaders, Peons, Domestic Servant)
9) Marketing Knowledge:
The knowledge of the market available for a particular product is a necessary part of a businessman. Before starting a business we should collect the information regarding the target customers, income pattern, buying habits, tastes, and a number of competitors, etc.
Before starting a new business the investor must calculate how much risk he can assume. Whenever you start a business you face a lot of risks in it so you have to estimate in advance how much risk you have to take in this field of business. And if you are afraid of the risk, you can never do good business. Whatever business you do, you have to take the risk.
There are two types of risk:
- Insurable Risk: This can be covered under an insurance policy like theft, fire, etc.
- Uninsurable Risk: This cannot be covered under an insurance policy like change in price and fashion etc.
11) Government Policies:
Before starting a business the government policies should be considered. Government policies either encourage or discourage the starting of a new business. If you do any business, you have to take care of government policies. You have to take care of all the policies of the government. That is why if you want to do good business and If you don’t want any problems in your business career, you can start a business by looking at the government policies.
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According to the philosophies of different thinkers, a businessman should face a problem boldly happily and should try to solve problems. As we told you about the problems of business, I hope you understand this. There was only one purpose of sharing Problems of Business and that purpose was to let you know what the problem is before you start a good business. And by knowing these business problems, you will have learned a lot and you will have got a lot of information. If you want to start a great business, no matter what the field, you must remember these policies.
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