Keyword: Business Economics (400 words)

Running a Business with Business Economics

Starting up your own business is not a walk in the park. Eery knowledgeable owner should
conduct a thorough research o! the industry that he is trying to enter. "oreoer# all e$perienced
business tycoons agreed that the inception stage o! the company is the hardest part among all
stages. %n putting up your !irst business# there are a couple o! things to remember# a success!ul
!irm always consider the !ollowing !ields be!ore enturing into the industry# these are: marketing#
human resource# !inance and operations. &ccording to management books# these are the !our
ma'or !ields o! a business enterprise. (here are een reports that in!ormation technology is
being added due to the diersity o! in!ormation dissemination nowadays. )erall# !or a business
!ranchise to succeed# the owner must make sure that the !our essential elements are !unctioning
at their best.
&nother ma'or consideration in setting up a business is the economy. Economic !luctuations can
be !atal to some business industries. (hat is why* it must be kept at arm+s reach be!ore inesting
into something. Sad to say# though some people do not pay attention to such detail# they will
'ust inest all their saings and end up with more losses than pro!its. %t is true that the economy
loes inestors and inesting is a good thing because it allows the money market to moe and
borrowing will be encouraged# but in a businessman+s point o! iew# it is like a nightmare come
true.
(o be sa!e# a rookie inestor,businessman should look at the two aspects (Business
"anagement - Economics) with scrutiny be!ore starting a business* this is also applicable in
running a company during ta$ing times like !inancial crises. Economics is !ounded on the ma$im
. /unlimited wants with limited resources0# this doctrine is one o! the pillars o! economics which
business e$perts memori1e by heart. 2orrelating it to a company owner# how can he achiee
ma$imum pro!it with all the ariables that can sere as a threat to his business3 4ere are some
tips to remember*
Conduct Efficient Market & Industry Research
Entering an industry is easy# but suriing and being on top is a ery tedious task. )ne must
know the ins and outs o! the target market - industry# it is !or this necessity that most business
owners start a business based on things that they like or hae thorough knowledge about.
5hether it is based on a hobby or work e$perience# knowledge about the proposed industry will
always be an edge that is indispensable.
Make a realistic Layout about your plans
(he layout will be a blueprint o! your business# to current owners# you may not be !amiliar with
the term but it only re!ers to your business plan. %t describes how you will carry out your
business in all !our aspects* "arketing# 4uman 6esource# )perations - 7inance. &lways
remember that each part is as important as the other. 8ou must also include the year in which
you will break een and how much do you need to break een.
Predict Market rends
(his part mainly contains the !luctuations which you will encounter during the !iscal year.
7luctuations a!!ect demand# demand a!!ects supply and supply a!!ects production which a!!ects
pro!it. 8ou must know your work!low. 9redicting trends can help you reali1e i! your business will
stumble down or i! it will be a big hit# upon knowing the same# you will hae the ample time to
li:uidate and aoid big losses.
4aing knowledge o! Business Economics is a big help in starting or maintaining a business#
whether it is on a small# medium or large scale. (hrough this edge# bigger pro!its can be
reached and losses i! not minimi1ed can be aoided.