Basic requirements for a business

[austinecare]

Labor, capital and technology are the three basic reuirements for a business. Be it a local or international, you can spread the business by utilizing these inputs efficiently. 'Placing the right input in the right place and at the right time' is the mantra behind all the success.

Most of the business are now capital intensive and therefore, you have to give more importance in capital and technology. For the beginners, it is observed that setting up a labour intensive business is quite difficult.

First, gather sufficient knowledge and based on that draw the business plan. Then it will be the time to implement your business knowledge and marketing sense. Moreover, reinvesting the capital in the business, is another remarkable issue that you should consider while running the business.

[crisdavid]

Hello Austine... I am running a consultancy firm in Southern Florida and help the job seekers and venture capitalist to start a new business. Though it is true that capital and technology plays important role to run a business but you can never ignore skills and knowledge of effective manpower... The important thing is to understand how efficiently you are using the human skills in the business. Moreover familiarity with the technology is also important for generating quality output...

Even if you follow home business, then also you can realize the combined effect of human resources, capital and technology. You have given maximum stress on capital and technology in your article, but failed to explain the importance of labor, i.e. human resources.

Be it a small business hourse or a large enterprise.... human resources are necessary and in this era of specialization how can you think of managing several business processes with few people.....

[nbinaca]

To run a business and to earn profit u have to utilize the resources at the given time frame. Be sure about the quality of the output. There are some tools and techniques which you can implement in the business process to improve the quality of the output.

Since I'm running a small scale software developeing organization, I can share the importance of 'quality' in the business field. TQM (Total Quality Management) is the technique that you can apply in the process. Another is 'Kaizen'. People are more familiar in 'Breakthrough' but if u are looking for steady development in the business process then you can try 'Kaizen' - a Japaneese technology.

I have tried 'Kaizen' in the own organization and found significant improvement in the business process

[benthanywills]

Finding the right location is an important factor for a business. Those who provide specific business service should select the location where there exist significant demend of that service and at the same time lack in the supply side of that service.

Moreover, like location, selection of right products and services is also very important for the beginner. But in this competetive market structure, you have to face strong competition. This is what we call challange from the rival organizations.

Here you have to use your brain and set your business plan to overcome all the hurdles.

[alexislucas]

Thanks guys for ur advice.... but I am interested to know what are the basic requirements for an online business. I have my own PC and there are sufficient space in my home... So far from the above discussion I can understand that for an online business
1) PC with Internet connection
2) Space and other infrastructure
3) Human resources to run the business process
are basic requirements.

Since I'm talking about online business is it necessary to think about the location or the capital? I think with technology and human skill I can run this business efficiently. Please suggest me if there are some other issues that I am missing.......

[llfwjr]

Whoa, Nelly! What's the one thing everyone is forgetting in this venerable list?

Customers.

And that presupposes that you have something they want - whether its goods or services, they have to want it enough that they will pay you for it. Without that, you don't have a business.

[kiasugurl]

lol

yeah man,
customers!!

what business can survive without them?
no customers = no transactions = no profit

so, put your customers at the top before you start a business,
think of them, what they need, how you can serve them, then we start talking about building a business, makes more sense i guess

[sugarglider]

I'd like to add to the point about customers -

You need to be able to give your customers something they really need, or something they really want, and you need to be able to do it either better or cheaper than everyone else. (Or both, if you're really clever!)

[llfwjr]

Exactly. I had a customer once who invented a portable inflatable toilet for use while traveling in your car. It met a need, it was certainly the only product of its kind, and there was certainly a market for it. The thing that killed it was the fact you had to blow it up - you know, put a toilet on your lips and blow. Yecch. Last I heard, he still had a garage full of them.

[sugarglider]

What a great story!