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.org document.