The business model is a very useful analysis instrument for a company.
A company is an economic-social unit , made up of human, material and technical elements, which has the objective of obtaining profits through its participation in the market of goods and services. For this, it makes use of productive factors (labor, land and capital).
Companies can be classified according to the economic activity they carry out. Thus, we find companies in the primary sector (that obtain resources from nature, such as agriculture, fishing or livestock), in the secondary sector (dedicated to the transformation of goods, such as industrial and construction) and tertiary sector (companies that are dedicated to offering services or commerce).
According to the size and level of its operations, it is possible to differentiate between a microenterprise , a small and medium-sized enterprise (SME) or a multinational , among other categories. The same venture can change in magnitude: a family business, over time, can transform into a large corporation with thousands of employees and a huge infrastructure thanks to its sales.
Companies according to their constitution and ownership
Another valid classification for companies is according to their legal constitution . There are individual companies (which belong to a single person) and corporate companies (made up of several people). In this last group, we can distinguish between a public limited company , a limited liability company, a general partnership, a limited or limited partnership and a social economy company ( cooperatives ), among others.
Companies can also be defined according to the ownership of capital . Thus, we find the private company (its capital is in the hands of individuals), the public company (controlled by the State), the mixed company (the capital is shared by individuals and the State) and the self-management company (the capital is property of the workers ).
Business administration , for its part, is a social science that is dedicated to the study of the organization of these entities, analyzing the way in which they manage their resources, the processes and the results of their activities.
How to start a business
Nowadays, opening a company is easier than ever, since in many cases most of the procedures can be carried out from home via the Internet . However, this does not mean that it does not require a great investment of energy and effort to grow and succeed in business. Perhaps the convenience that current technologies offer us often leads us to make bad decisions because of underestimating the importance of commitment .
Before taking the first step we must define very precisely the characteristics of the corporation we want to have. This covers its purpose and its type of organization, things that can be determined based on “why ”, “for whom” and “in what way” questions. On a personal level, it is also essential to ask ourselves "why" we want to embark on it; Although this may seem irrelevant to the public, several factors that affect its growth, its vision and its treatment with consumers will depend on the bond that exists between the founder and his company.
The Human Resources department of a company must work to hire employees who help improve the corporate team.
Knowing the company's market
Once we are clear about these issues, we must do a more or less formal market study to find out if similar companies already exist. If so, it is important to know if the market is saturated with them or if there is still a space in which we could locate ourselves. Going forward with a project for the mere whim of satisfying a need usually leads to complete failure that could be avoided with humility: if our idea is not appropriate for the economic and social context of the moment, it is better for us to take a step back and look for a new one. .
These are the rudiments of the birth of a company, but none of the technical aspects compare in difficulty as the patience necessary to see it grow from a paper project to a constant and reliable source of money , especially if we intend to turn the firm into our only financial support to cover all expenses. We must gather the strength to overcome various administrative obstacles and know that we may not receive money for several months or even more than a year.
For a company to be profitable, it must take care of its budget.
The business plan
The business plan is very important in a company. This is the strategy that, expressed in documents, details what the objectives are and how they are intended to be achieved.
The business plan can be associated with the business strategy . It is important to take into account multiple variables, such as investment in advertising and marketing, trademark registration to protect intellectual property , determination of the production system and definition of logistics, in such a way that risks are minimized and limit the margin of error.
It is also key to prepare a SWOT analysis to identify the strengths, opportunities, weaknesses and threats of the company. Another aspect to consider is the study of the competition: you have to know how to take advantage with your own products to surpass the competitor, gain market share and fight for leadership.
The 21st century company
The 21st century company must address different issues to be competitive . The members of the board of directors , or failing that the manager, director or CEO, have to be at the forefront to learn about new trends and promote updating.
In this way, innovation and research and development (R&D) are pillars of modern companies. Digital transformation , with the digitization of processes and the promotion of e-commerce, is essential to improve quality, promote growth and achieve the fulfillment of goals.
Nor can we ignore what is known as corporate social responsibility (CSR) . Today's companies must be aware of their social impact, so their activities must be environmentally friendly and in line with sustainability criteria. Otherwise, the community is likely to turn its back on them.