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Idea: the missing concept to staying in business

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An Introduction to Business

Let's start out with an understanding of "BUSINESS." One definition of
"BUSINESS" is the transfer of assets from one entity to another. The
assets transferred can be money, intellectual property, services,
affection, physical goods or power. The ideal business transaction,
also know as a trade, is one where the entities on both sides feel
comfortable with the final outcome. The feeling of comfort is important
in building a lasting business relationship. When individuals on both
sides of the trade feel comfortable with the outcome no one will later
back out of the trade or change their minds as to the conditions of the
trade. The trade is therefore a win-win transaction.

An ideal win-win transaction that makes both sides feel comfortable is
one where the assets transferred have less value to the original owner
than the asset that is being acquired. Seems straight forward enough,
Buy Low--Sell High. Every school boy knows this principle. Every
business transaction should have a profitable outcome for both sides.
Yet in today's society the thought of a profit in business is
considered disgusting. Make no mistake, every business whether the
business is a love relationship or one country purchasing goods from
another, both sides must profit.

If only one side is profiting eventually the relationship will
collapse. The world resounds with millions of examples of collapsed
businesses. The divorce rate[1] in the United States is currently about
50%. The Small Business Administration estimates[2]only 31% of new
businesses will last 7 years. The statics show that relationships are
difficult to maintain. Now look at some of the most visible businesses
in the world today. eBay, Yahoo, Google, YouTube, Facebook, or Amazon
they all have one aspect in common, a highly respected relationship
with the customer.

For you the question becomes, "What am I going to do with this
knowledge? Telling me business is about relationships is to general."
The answer is, make every business decision as if trying to keep the
most important relationship of your life.

Start here by gaining an understanding of the organizational divisions
of a business. They are Finance, Human Resources, Information
Technology, Marketing and sales, Operations, Procurement, Research and
Development, Public Relations, Administration and Audits[3]. Over
riding each of the business segments is Standardization, Management and
Quality Control. All businesses tend to down play the last three items,
Standardization, Management and Quality Control. They are in fact the
corner stones of the business.

A definition of each of the business divisions is given in the
corresponding menu item under the main menu of "BUSINESS." How to
eBooks are available to help anyone involved in the Services,
Manufacturing or Intellectual Properties industries. We will leave
love relationships to another section.

[1] US Census Report, 1996, p70 - 80.

[2] Small Business Administration Office of Advocacy FAQ

[3] The link provided in the main discussion points back to the
original en.wikipedia document.
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More Articles
* Home Page
* A Book Review That Can Lead To Improved Business Performance!!!
* An Introduction to Business Management
* An Introduction to Human Resources
* An Introduction to Quality Control
* An Introduction to Standardization
* Additional Articles

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