Know Your Business

Introduction:

In simple term Business can be defined as the way of exchanging the materials by both or multiple parties.In early days the Business is carried out with Commodities, Later the agreement were introduced where the one of the party involved in business doesn't have the material readily available. Agreement was later transferred as Money. We can classify the parties involved in the business as Vendor, Customer, Suppliers, Seller etc.

Start a Business:

List of items you can keep in mind to start your business

• Identify the right customer

• Analyze the environment

• Identify the value of the materials involved

• Predict the future of business based on the progress
• Explore the way to expand the business

Identify the right customer:

Customer is the one who has the capability to get your product/material who can provide you an alternate material for the right value of your product. Involving the right customer who has interest on your product/material will be a key part in business, There might be an party who doesn't have interest in the product but who would like to know about product just to have an idea about the product, these kind of parties would help for Marketing (will spread the information about the materials to others).

Question : How to identify the right customer? - Analyze the environment to filter out the right customer.

Analyze the environment:

Why do i need to analyze the environment to have a right Business? - The environment where you desire to start your business should have a need for your product/material. You cannot sell your product in a region where there is no need for your product.

Competitor analyze should be also part of environment analysis (Stability and Penetration of Business analysis)

• What is the business % of the competitor? - This gives you an exact figure the market for the product in the environment.
• How good the material of competitor is? - This gives you an idea on penetration on the business strategy.
• Market size, Regular customer size? - Stability of the competitor will give an idea whether we can sustain in the environment.

Identify the value of materials involved:

Materials involved in the business to be analyzed based on the Market. Market study is must to know the price, some of the product/material might have a demand in some region where you can determine the cost based on the buyer's demand. Business can be based on the quality or quantity. Business based Quality (Ex: Rolls Royce), the cost based on the quality will target a set of audience who desire to have the quality in the product and like to pay for the quality that are delivered. Business based on quantity, here we have focus on the quantity and it doesn't mean to compromise all the quality aspects in the product/material. there can be a compromise on some aspects which should be acceptable by the customer. Quantity business should target large number of customer which would bring profit based on the number of product/material sold in market.

Predict the future of business based on the progress:

This is withstand in the market for longer, first 3 steps should be done periodically to continue in the market. when there is change in market need, we have to be in a position to adopt to the change. Environment change will there often so better have an study on each business deal. when the product sales goes down than the previous sales analyze the case. adopting to the environment will help us to survive in the business for longer.

Explore the way to expand the business

Sustaining in the market will have an threshold until you don't expand the business in the future. Competitors should be analyzed and expansion of the business to be carried out by having the list of items in your mind :)

• Identify the right customer

• Analyze the environment

• Identify the value of the materials involved

• Predict the future of business based on the progress

References

This article "Know Your Business" is from Wikipedia. The list of its authors can be seen in its historical and/or the page Edithistory:Know Your Business. Articles copied from Draft Namespace on Wikipedia could be seen on the Draft Namespace of Wikipedia and not main one.

---