Education and examples of Business and business system

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By JYOTI KOTHARI

Business is a system that brings money


Business is a system. Business is something different from its original word meaning.It is not only to be busy. There is a well said proverb “busy without business”. Business basically means an activity or set of activities that brings money through transactions. A system is required to carry out these set of activities.

Traditionally business means exchange of products with money. Services are included in modern terms with in products. In general, sell or purchases of any goods or services are called business. Modern businesses are running in a complex situation. A strong system is required to handle this complex.

Business adds value to products. It creates utilities for the consumers according to economists.

However, meaning of business has changed in modern days. Businesses engage, motivate and manage people for earning money. Despite manufacturing, sell, purchase and marketing, it is not a business if it does not engage other people to work for it. Business is to let other people work for you.

If one involves him or herself in manufacturing, sell, purchase, marketing of goods and services and does not put or engage people to work for them, it is self employment. Self employment is different from business.

Business

Business is one of the four categories for earning money


Rich dad Poor dad of Robert Kiosaki is among bestsellers. There are four categories of people who earn money according to “Cash flow quadrant” by Robert Kiosaki.

These four categories are as follows.

1. Employee

2. Self employed

3. Businessperson

4. Investor

Employees work for other people and get wages or salary in return. Employees engage themselves in blue collar, Green Collar and white collar jobs. They earn fix salaries, bonus, other facilities and retirement benefits according to nature of their work and terms and conditions of their employment.

Self employed people have their own establishments and work themselves independently. They got remuneration directly from their clients. Doctors, lawyers, bankers, chartered accountants, shop keepers etc are examples of self employed people. They are either professionals or have small or home businesses engaging  no other people.

Business persons plan and execute business activities engaging and managing other people, normally the employees. Sometimes they engage self employed people such as lawyer, consultants, chartered accountants etc to work for their businesses. They also join hands with other businesses to grow or expand their businesses. They earn profit from their businesses. They obtain lion's share of total margin.

Business needs money as well. Investors supply money to run their businesses. Investors are those who put their money to work for them.

Business and business system quiz

Business system and sub-systems


Ideal business person need not to work to run their businesses. What they do? They make system. It is the system that works for them. They work to build a system and let the system work for them. It is just like computer software. Programmers prepare software and the software works. Programmer need not to work.

For an example. Google has created a software program to search web pages and put it into their system. Any one searching for a web page or website for particular keywords goes to Google search program and submit query. Google search engine automatically process the query and brings results. Google has not to work to search the web pages but the search engine (A System) searches for Google and Google earn revenue from Adsense and so on. The publishers also make money online through Google adsense.

Hubpages is another example who have build a business system that provides publishers the opportunity to write and put their contents into their system. The publishers fall into Self-employed category. They write contents, publish in Hubpages platform and earn through Adsense, Kontera, E-bay or Amazon. Publishers have to work not the Hubpages to earn money.

If you want to earn money publishing your contents, Hub pages is an excellent place.

Sign up Hubpages to make money online.

Business persons build an overall system for their businesses with a set of sub-systems. There are sub-systems such as sell, purchase, marketing, manufacturing, personnel, legal, taxation and so on. There are long trails of sub-systems.

Business persons employ managers to look after those systems that they have built. There are white collar and blue collar employees depending upon the nature of the businesses. A new sector of green collar employees is also there. Employees work under their managers to produce financial results.

Business persons look for investors who invest money for their businesses. Investors get shares of profit or interest on their invested amount. Generally, in modern system, banks and financial institutes work as investors. Investments are dependent upon business credit of the business. It is not dependent upon personal credit. Investors invest on systems and not on persons. Better the system better the opportunity to get investments.

Businesses can be small or big. These may be proprietorship, partnerships or limited liabilities companies (LLC) or corporations.

I have described business in short. So what to do next? Want to start your own business?

If yes, start building your business system. Plan for it. Do something to build your business system. Check it for its suitability to your business goals. Act upon it seriously and sincerely.

Remember, better the plan and execution better will be the system. Better system will make your business better.

How to start business ?

How system can help your business

Business system complexity

Comments

JYOTI KOTHARI profile image

JYOTI KOTHARI Hub Author 24 months ago

Hi Jowhar,

Thanks for your comment. Basic rules are similar in all states of India. However, it varies slightly from state to state.

Please consult your lawyer for state specific information.

Jyoti Kothari

jowhar 24 months ago

hello sir, i wana knw abuot the legal procedures to start a business in chennai.. i heard that there have a different procedure.

according to state wise in india rules & regulations will change?

please guide me sir

JYOTI KOTHARI profile image

JYOTI KOTHARI Hub Author 2 years ago

Hi Inkerror,

Thanks for visiting and commenting on this hub.

Jyoti Kothari

inkerror profile image

inkerror 2 years ago

inkerror profile image

inkerror 2 years ago

"They work to build a system and let the system work for them"

Nice thought...

JYOTI KOTHARI profile image

JYOTI KOTHARI Hub Author 2 years ago

Hi Garima,

Thanks for your comments. Formal education system does not help in real education, that is why one has to look around for real education and acquiring knowledge.

Anyway you are a young one and have plenty of time to learn.

I wish you success in your life.

Thanks,

Jyoti Kothari

Garima Bothra profile image

Garima Bothra 2 years ago

Though I am a student of CA, I never thought of this type of definition of business.

While studying we just get definitions those are obsolete nowadays.

Thanks for nice descriptions.

Thumbs up!

JYOTI KOTHARI profile image

JYOTI KOTHARI Hub Author 2 years ago

Hi Praveen,

Thanks for your comment. It is always better to know about business and business system.

It helps developing business a lot.

Jyoti Kothari

Praveen 2 years ago

Hi Jyoti,

I could come to know business as a system by reading this hub. Previously I was of an opinion that business is transactions.

Thanks for a extremely informative article.

Thumbs up!

JYOTI KOTHARI profile image

JYOTI KOTHARI Hub Author 2 years ago

Hi Sunny,

Many people think like you. This is a common phenomenon. However, a system is what runs the business. It is little difficult to conceive it. However, it pays a lot if you can really understand the system.

Thanks,

Jyoti Kothari

Sunny, 2 years ago

I can not understand what is a system? I know business is earning money, that's all.

JYOTI KOTHARI profile image

JYOTI KOTHARI Hub Author 2 years ago

Hi Suraj,

Thanks for your comments and compliments. How is your business going on?

What do you think about your system after reading this hub?

Jyoti Kothari

andromida profile image

andromida Level 3 Commenter 2 years ago

You have very clearly categorized and defined the business-very informative hub.thanks for sharing.

Suraj 2 years ago

A great Hub....thanks jyoti ji....................

JYOTI KOTHARI profile image

JYOTI KOTHARI Hub Author 2 years ago

Hi HP,

Thanks for your continual support. Your comments are valuable to me.

Definition of business here is different from traditional definitions. here business is a system.

Thanks,

Jyoti Kothari

H P Roychoudhury profile image

H P Roychoudhury 2 years ago

hi Kothari,

It is nice to know the different types of Business.

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