Business, Commerce

Essential Elements of Good Business

Essential Elements of Good Business
  1. Expert Management
  2. Large Capital or Finance
  3. Innovation
  4. Planning
  5. Use of Technology and Modern Machinery
  6. Increase in Sale
  7. Organizational Structure
  8. Reasonable Profit
  9. Quality Product
  10. Ideal Location
  11. Trained Staff
  12. Regular Demand

1. Expert management:

Good management solves many problems or issues of the business. Therefore, good management is necessary to operate the business efficiently and effectively.

2. Large Capital:

Large Capital or finance is a basic need and an essential part of every business. Capital is required for the successful operation of a business. It plays a very important role in the establishment and expansion of a business.

3. Innovation:

Innovation means to find new means, ideas or ways for improving the goods and services. In these times of competition, a business can be successful only when it generates new creative ideas, new designs, improved techniques, better quality, new varieties etc. In the current era, modern technologies have generated a great scope for innovation in the business world.

4. Planning:

Good or strategical planning plays a vital role in the success of a business. Planning is a strategy in which whole of department or employees coordinating to each other for achieving the organizational goals.

5. Use of Technology and Modern Machinery:

A businessman uses technology and modern methods or techniques of production according to the nature of business. The use of modern machinery causes to increase in production, improve quality of product and less wastage of raw material. This type of strategies helps to increase production and profit.

6. Increase in Sale:

Sale of goods and services is another important function of business and it cannot be flourished without sale. So, the sales and marketing departments should be very effective and efficient in business.

7. Organizational Structure:

Organizational structure is a very important element of good business because it brings benefits to the business and makes it prosper. Division of work and responsibilities according to the employee’s qualification and skills create a good impact on the performance of the business.

8. Reasonable Profit:

A good businessman should not deceive anyone or misstate the facts to maximize his profit. He should charge reasonable prices to cover the costs and earn a fair margin of profit.

9. Quality Product:

The successful businessman always tries to improve the quality of the product. Quality products not only create the goodwill of business but also help for increasing profit and sales.

10. Ideal Location:

The good businessman should try to establish his business in that area where factors of production are easily, abundantly and cheaply available. The successful businessman is also focused on his target audience.

11. Trained Staff:

Trained staff (employees) plays an important role in the growth or success of the business. The trained staff save the business from loss, even in unfavourable conditions, due to their experience and broad vision.

12. Regular Demand:

Regular demand of the business product is the key to a successful business because regular sale depends on corresponding regular demand of products. So, owner makes effective arrangements for creating demand of his products.

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