This article contains brief business description or definition of business. The content is limited to aspects related to affiliate marketing.
The points in this lesson 2:
- General definition of business
- Business feasibility
- Profitability of various size businesses
- Small business efficiency boost by the internet
- Knowledge and hard work to run a business
Business by definition
A business is an organization or economic system which requires investment and enough customers to whom the business output is sold to make a profit. Such investment may include capital, tangible and intangible resources, human resources.
A business sells products, services, or even ideas, to make revenue and make profit. The profit must be quite significant to allow it to survive, continue, develop, and increase in value, which in economic term is called feasible.
Profitability of various size businesses
Businesses come in many sizes. Some are large, even of gigantic size, some are small, operated as a family business, even as a self-proprietary business. A good business, regardless of its size, can be profitable and feasible considering its own scale.
Not all businesses will survive or make great profits. Running a business requires knowledge, sense, planning, hard work, tools, capital, and sometimes also luck.
Small business efficiency boost by the internet
With existence of the internet, access to resources and buyers is much easier and more affordable. The channels are now much wider, shorter, and faster than before. Good resources and connections used to be affordable only by big companies.
With the internet, smaller businesses can have the same reach and access as without expensive facilities and high cost office buildings and equipment. This helps smaller business with efficiency, which leads to lower costs and better profitability.
Knowledge and hard work to run a business
Sufficient knowledge is required to run a good business. Marketing is one of them. Having products to sell is one thing. Marketing them is another subject that must be learned.
An entrepreneur who has just started a business should not quickly give up before his business’ market grows. Always keep in mind that success in a market requires hard work, knowledge, persistence, and the market share needs time to build.
Next we’ll continue first with lesson (3) about marketing by clicking here.