Types of Small Businesses
By: Ejaz Alam | Topic: Business Guide
There are number of small
business opportunities around you. It all depends upon your
interest and investments to decide about them. Small businesses
are so important that they are the units that perform most of
the economic activity in our economy.
Every small business aim is to generate a profit. There are
some businesses that exist to perform a function other than
profit, such as cooperatives and non-profit organizations.
There are many different ways of classifying businesses but here
are the main types:
Manufacturer. Manufacturing business take raw materials
and develop them into finished products, which they then sell.
They make a physical good such as plastic toys or a sofa etc.
Service Businesses. This business do not produce a
physical product but offer a service to consumers. They make a
profit by charging for their skills and labor. Real estate
advisor, visa consultancy and stock brokers etc fall in this
category
Retailers and Distributors. These businesses facilitate
the chain of supply. They buy goods from the producers or
wholesalers and sell them on to consumers at a higher price.
Shop keepers, general stores, distribution and marketing
companies are included in this category.
Agriculture and Mining. These businesses are also known
as extraction industries as they make their profit by taking raw
materials out of the ground. Agricultural farms, nurseries,
forestry, fishing and coal mining can be included in this group.
Financial Businesses. These include banks, insurance
companies and investment funds. They offer financial services to
consumers and other businesses and generate a profit by managing
capital for others.
Transportation Businesses. Main aim of transport business
is to move people and goods around the cities. These would
include taxi and bus companies, freight companies, shipping
companies etc.
Whatever sector you go in, you definitely need somehow and
sufficient working capital in order to make your small business
a success. Selecting a sector for business is solely at your
choice. Profit potential is immense in all sorts of business.
What all it takes is a vision, dedication, hard work and honest
to succeed in business. Good Luck