If I compare the service class and the business class, which do you think fairs better? I am sure the answer is going to be conflicting, some would favour the former, and the rest would vote for the latter. Both these segments of society are essential for the holistic and economic growth of a country. The astounding thing is that the entrepreneur and the serviceman both are co-dependent; one cannot survive without the other.
Let us focus on the business aspect. A business is any organisation wherein people work together to create products and services for their target audience. A business is not confined by its size or the count of its employees. A setup that has only one worker and just a tiny room where they grow mushrooms will also be considered as a business, although a small scale one.
How business evolved?
Would you believe me, if I told you that the first business was established almost 5000 years ago in the Mesopotamian civilisation? It indeed was, at that point of time, a business only meant that you are selling something for a profit. Even today, the core of the business world is the same. If an entrepreneur is not earning profits, he is certainly doing something very wrong.
In the present scenario, a business focuses on a lot of different aspects or should I say every area is taken into account when formulating policies to run an establishment. From marketing to sales, from customer satisfaction to employee satisfaction, from the better work environment to getting state-of-the-art machinery for manufacturing, each one of these has to be on the superior side so that the organisation can flourish. These aspects were not on the priority list in the Mesopotamian era.
Another obstacle that today’s businessman has to face is the ever-rising competition. Facing it is not where the job ends; the firms have to find ways to gain an edge over their competitors continually. That is their only option, or else they will drown in the sea of more competent companies.
To substantiate this with an example, the oldest running business in the world is a hotel. It is called Nishiyama Onsen Keiunkan located in Hayakawa, Japan. It has been operational for over 1300 years managed by the same family who had started it. This hot spring hotel was able to prosper for so long because it evolved with time. If the family had continued the same practices it had begun with, there is a high plausibility that it would have wound up its business a long time ago.
The critical element of the business
It is quite apparent what the paramount part of the business should be? Any guesses? Yes, it is the person who had started the business, the entrepreneur. He is the crucial element because it is his vision to start the company and wherever it may go will be decided by the direction that he offers.
Now, the question is, what makes a business person stand apart from the crowd? What kind of attributes must he possess to be successful?
• First and foremost, the businessman has to be a great leader. This is because he would have to direct the workforce to a place that he desires them to be. His leadership skills can only make this possible. A confident leader is what makes a company grow by the day.
• The entrepreneur also needs to be a risk taker. The higher the risk is, the higher the returns are going to be. It is also an advantage because not everybody can analyse a risky situation and act to gain out of it.
• Another trait is that of adaptability. Like the title says the world of business is dynamic, meaning it is continually changing. If an entrepreneur cannot adjust to the changing environment, he is doomed.
• Lastly, a business person must possess decisiveness. He should have a set path that he needs to take. If he is fickle-minded, then the direction is likely to be faulty. Keeping this in mind, he also needs to be slightly flexible. However, this flexibility should only be limited to the path which will lead to the end goal, and not the goal itself.
What if still, the business fails?
The business domain is fluctuating; when an emergency may come cannot be known, like the COVID 19. It has become an epidemic, resulting in the downfall of Sensex and near demise of many travel agencies. The only option that a business owner has is to be prepared for such contingencies so that the organisation can stay afloat.
Still, failure can happen, and all of us have to learn to accept this sad truth.
Most of the business-related crisis can be resolved by finance. However, a failing business neither attracts a lot of investors, nor any guarantors. Since finances can make it a success, what can the businessman do?
First is not to worry, then he should be aware in the UK, the citizens can get a loan even with a not so promising credit score. There is a category in loans referred to as very bad credit loans wherein the borrower needs no guarantor to back their application. Banks do not offer these, but the direct lenders provide it.
Knowledge about such finances can come very handy in a crisis, hence the need to let you know. If this blog helped you gain a better understanding of how the business world works, its purpose would be accomplished.
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