by Dennis Hung

Understanding the 5 Necessities to Running a Business

1 year ago | Posted in: Business, Startups | 461 Views

Business, and a society based on the principles of capitalism, create a well-oiled machine of businesses and business men. Because capitalism is what makes the world economy turn and in relation, pushes society forward, it would be an intelligent decision to go into business for yourself as opposed to working for someone else. It is beneficial in retaining your own personal power, in saving money via tax incentives, and in having an unlimited potential for profit and growth. In this article we will be discussing the five necessities of running a business.

The 5 Necessities to Running a Business

If we were to count the number zero in this section, we would say that there are six steps/necessities to run a business. The first step, or step number zero is to decide that you want to be in business. Without a decision, a choice to make something better and to provide a product or service to an audience is the pre-preliminary step required to understand the following steps. Once you’ve made your decision to go into business, we begin with the first necessity.

Necessity #1

 The most essential aspect of any business is the way in which money is exchanged. This can happen in a variety of ways, but the most common will be for you to sell either a service or a product. This is the first necessity after you made the decision to launch a business. Without a product or service to sell, you have no business. It would be an intelligent decision to make this first step, the most important one so you know what you will be selling and to who. From there we can move onto the second step where you create an actual plan to follow.

Necessity #2

It is necessary to create a business plan. They say that if you have nowhere to go, or don’t know where you’re going, any route will get you there. In business there should always be an end goal, and creating a business plan detailing every aspect of the business, down to the exit strategy, should be done right after the decision of launching a business. This will not only help you put your thoughts in order, but it will also allow others to see your detailed vision compelled with a detailed and specific plan of attack (business plan).

Necessity #3

Because we are living in the information and internet age, business is done in a completely different manner. You can use statement mailing to better reflect your company’s presence and to keep better track of your client relationships. You can also take advantage of living in an information era by tracking where all the business mailing is sent. Remember, the more you keep track of data in your business the more likely you can smooth out the rough edges of your business. In addition to our modern internet age, it is crucial to have a strong, clean looking website that will help your customer as well as yourself by keeping track of data. A website allows people to see that you’re a real business and that you at least took the time and effort to give your business a professional image with a mobile-friendly website. If you do sell items or services online it will be much easier for someone to pay directly through your site.

Necessity #4

Advertising is the most important aspect of business because without new people being shown your business, you will be stuck with stunted growth. Many businesses fail because they can’t get their products or services to their intended customers in time and so they run out of money before they can even launch their marketing campaigns. Marketing does not only require money. You can use your time or relationships to tap into different audiences.

Necessity #5

Finally, in order to keep a business running and organized there have to be certain systems in place such as CRMs and accounting software. Along these systems you can also have social media analytics, and website analytics to keep track of everything important to your business. A CRM is an acronym for customer relations management and is used to keep track of clients, vendors, and other contacts.

In conclusion in this article we discussed the topic of business and what it takes to run one. You will need to make a decision, necessity number 0. You will need to know what you will be exchanging for money, create a business plan, launch a website, create and implement a marketing plan, and use tools to help you track certain metrics.

by: Dennis Hung

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