Individuals, partners, or corporations can buy labor, capital, and materials and produce goods and services {business}|.
legal structure
Businesses include sole proprietorship, partnership, corporation, limited liability company (llc), personal service corporation (psc), or family business.
processes
Businesses have processes {business process}: operations, transfers, inspections, and storage. Distances, times, delays, and buildings affect processes.
system
Businesses have inputs, processes, and outputs. Processes start, stop, and require decisions. Businesses create, move, inspect, modify, handle, and store forms.
system: costs
Businesses have labor, capital, and material costs.
system: revenue
Businesses have revenue from selling goods and services.
structure
Businesses have structure by departments and jobs. Businesses have authority levels and responsibilities.
structure: distribution
Businesses send goods and services around market.
structure: marketing
Businesses try to create demand for their goods and services.
structure: sales
Businesses close deals for their goods and services.
structure: personnel
Businesses manage employees.
structure: finance
Businesses manage cash flow and assets.
buying business
Buyers need good credit and enough money. Buyers evaluate their skills and experience and choose the best business. They have advisors, organize financing, evaluate disclosure documents, evaluate business, check market, determine fair price, and create business plan. Buyers can manage the business or hire manager.
Existing businesses have business system, customers, equipment, inventory, suppliers, employees, facilities, and immediate revenue. Existing businesses can have market, financial, liability, or debt problems. New owner typically needs previous-owner experience and personal relationships for a while.
starting business
In USA, starting businesses is risky, because probability of survival for two years is one half and for five years is one-fifth. Starters must risk their own money and can have trouble getting financing. Income is low for long period. Starters must have many skills, including people skills.
Social Sciences>Economics>Microeconomics>Business
6-Economics-Microeconomics-Business
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Date Modified: 2022.0224