Business Secrets Revealed:1. Business is Production

Business is a single word or a subject, when analyzed gives a bundle of meanings and explanations. We define business in various ways on diverse circumstances.

Generally, business is a profession of producing goods and services for a profit. When we say production, this involves the human labor primarily and machinery as a labor saving device and raw materials for conversion into consumable products.

Products are too many:

These products are commodities or goods of human needs. They may be wholesome products or spare parts or semi processed materials for being assembled, merged or integrated into the final product.

These may be solids, liquids or gases; may be vegetative in origin, metals, or chemicals in nature; they may be naturally grown, cultivated with agricultural techniques or produced with engineering expertise. They may include living beings, birds and animals too.

Products are enormous:

To understand the enormity of the products, let us visit some of the places.

Sweets and savories:

Let us go to a sweet stall! Just see the sweets and savories made out of flours of cereals, say rice and wheat and protein rich grams like Bengal gram and green gram etc. You can see at least one hundred items there. Here, the main ingredients are sugar, milk, spices, and essences with the flours.

Bread, butter and jam:

Now, move into a bakery, where you will see hundreds of items made with the combination of wheat, sugar, cream, spices and essences.

Grains and spices:

The next is a grocery store, selling all food grains, pulses, spices, condiments and their bye products, besides cooking oils. They sell processed, semi-processed and Ready-to-eat food packs also.

Fresh and juicy:

The nearby ‘vegetables and fruits’ stall supplies all the vegetables, fruits and fresh fruit juices. Instant coffee, tea and other beverages are also available if you wish to drink sip by sip.

Hot and tasty:

The next is a hotel, where you get food cooked and supplied instantly. See a fast food counter also. The menu says about 100 items of mouth-watering dishes.

A petty shop selling toffees and chocolates along with biscuits and homemade candies is a common feature.

Food alone too many:

We have been trying to list only food products sold in a few locations. There are very many more varieties and brands in food products alone.

Others uncountable:

If you make a list under basic clothing, building materials, plastics, cosmetics, stationary, drugs, chemicals and many more categories, the list will go infinite.

Engineering goods immeasurable:

If you enter into engineering industry, there is boundless number of machines, spares and products needed by countless industries like agriculture, automobile, building construction, medicine etc.,

Now, as an entrepreneur, feel the vastness of goods, enormity of products, immensity of bye products and sheer size the market. The man made goods available for the humankind in this large world is huge, its requirement is massive and the market is mammoth.

Please understand that these products are for you to produce. If you wish to become a product oriented entrepreneur, the scope is wide and the choice is vast.

You need to select the best suitable for you.

Characters of products:

Monopoly with no competition:

If you get an agency for kerosene or gasoline, you are lucky. People will come in queue to buy your product. This is a monopoly product, available only with you as a licensed dealer in that area.

Duopoly with one competition:

Selling toffees and chocolates in the market is not an easy joke. If you are a dealer of a good branded chocolate like ‘Cadbury’s’ and biscuits like ‘Britannia’, you are comfortable. These are all duopoly products, distributed only by two marketers with minimum competition.

Even in branded popular toffees also, there are similar products having same taste. Those like “Lacto king” will buy “MahaLacto” also as a choice. There will be a market shift in favor of a brand if there is inadequate supply of another brand of similar kind.

Oligopoly with too many competition:

If you are a seller of a ‘brand less’ item, your competition is high. As a number of persons will distribute the products, you have always-tough time to sell your goods. This is oligopoly market. There are too many competitions. You are at risk financially.

Primarily the business is product oriented:

In general, the business is product oriented. The wants are unlimited. Likewise, products availability is also boundless. The human population and the market are ever growing. The demand, supply and the population are too big and they offer great opportunity to the entrepreneurs.

To make all these things favorable to him, the entrepreneur must select a suitable product with unique features. That should have good potential demand and easy manageability in the market. This is very common suggestion.

We have tried here only to reveal the “open secret” that business is primarily product oriented.

In course of time, we shall release very good business strategies, sale techniques and business ideas highly suitable to the budding entrepreneurs.

Eating Healthy (and on Budget) While Traveling for Business

How the UK Postage Rate Increase Affected Online Businesses

Many online businesses rely on the Royal Mail to get parcels and packages out to their customers on time and as such need the mailing service to do this for them. They could of course, use other mailing services and if this works out cheaper for them to do, then it stands to reason they will do just this and this ultimately means the Royal Mail will have lost valuable customers to the rival postal services. But the truth of the matter is that no other mail service offers a comparable service for packages under a certain weight, therefore the Royal Mail has the monopoly on this service.

Although we know exactly how much a first and second class letter will cost us, when it comes to parcels and packages things are less clear cut. In the past anything less than 100 grams cost £1.58 and items between 510 -750g cost customers £3.05. With the increases, this system is now set at a flat rate which means items up to 750g will cost £2.70 which is an increase of 71%!

Many online businesses realise the increase is going to negatively affect their businesses. It doesn’t matter if they are selling smaller items like smartphones or larger items like computers; the cost of sending these items out to their customers using Royal Mail services is going to prove to be a lot for any online business to have to cope with.

When the calculations are done, an online business that sends out 50 parcels weighing an average of 100g per month which up until the increase in postal rates cost them £1.58 a piece making a grand total of £79 every month. The new price rate will have them paying £135 for the same volume of mail weighing the same amount.

A solution to the dilemma other than using a different mail service is to post packages out earlier whenever possible and to send them out as second class mail. By doing it this way businesses would be able to avoid the increase. The downside is this could affect the quality of service they offer their customers, which is a pretty hard thing to have to accept when good customer service is a vital part of any business.

When customers buy anything from an online business, they expect to receive their items in record time. If online businesses are forced to use second class mail to send out these items because first class is just too expensive for them to use, they are running the risk of customer dissatisfaction. It’s a no win, no win situation that many of the smaller online business will have to face up to.

The Royal Mail have the monopoly when it comes to this price bracket for mailing packages as no other courier or mail service offer this kind of rate for these weights. For heavier items, online businesses do have a choice and can use other carriers to get items to their customers in a timely manner that’s acceptable and affordable for an online business to use.