The business model is a very useful analysis tool for a company.
A company is an economic-social unit , made up of human, material and technical elements, which aims to obtain profits through its participation in the market of goods and services. To do 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 (which obtain resources from nature, such as those in agriculture, fishing or livestock), in the secondary sector (dedicated to the transformation of goods, such as those in industry and construction) and in the tertiary sector (companies dedicated to the provision of services or trade).
Depending on the size and level of their operations, it is possible to differentiate between a microenterprise , a small and medium-sized enterprise (SME) or a multinational , among other categories. The same enterprise can change in magnitude: a family business, over time, can become 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 (belonging to one 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 partnership or a limited partnership and a social economy company ( cooperatives ), among others.
Companies can also be defined according to the ownership of their 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-managed company (the capital is owned by 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 done from home through the Internet . However, this does not mean that it does not require a great investment of energy and effort to make it grow and be successful in business. Perhaps the convenience that current technologies offer us often leads us to make bad decisions due to underestimating the importance of commitment .
Before taking the first step, we must define very precisely the characteristics of the corporation we wish to have. This includes its purpose and its type of organization, things that can be determined by starting from questions such as "why ", "for whom" and "in what way" . On a personal level, it is also essential to ask ourselves "why" we wish to embark on it; although this may seem irrelevant to the public, the bond that exists between the founder and his company will depend on several factors that make its growth, its vision and its dealings with consumers .
The Human Resources department of a company must work to recruit employees who will help improve the corporate team.
Knowing the company's market
Once we have these issues clear, we must carry out a more or less formal market study to find out if there are already similar companies. 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 position ourselves. Going ahead with a project just for the sake of satisfying a need often leads to a resounding failure that could be avoided with humility: if our idea is not suitable for the economic and social context of the moment, we should take a step back and look for a new one.
These are the basics of starting a business, but none of the technical aspects compare in difficulty to the patience required to see it grow from a project on paper to a constant and reliable source of money , especially if we intend to make the company our only financial support to cover all expenses. We must muster 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 for a company. It 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 as to minimize risks and reduce the margin of error.
It is also essential to carry out a SWOT analysis to identify the company's strengths, opportunities, weaknesses and threats. Another aspect to consider is the study of the competition: you have to know how to take advantage of your own products to overcome the competitor, gain market share and fight for leadership.
The company of the 21st century
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 be aware of new trends and promote updating.
Innovation and research and development (R&D) are therefore the pillars of modern companies. Digital transformation , with the digitalisation of processes and the promotion of e-commerce, is essential to improve quality, promote growth and achieve the fulfilment of goals.
Nor can we ignore what is known as corporate social responsibility (CSR) . Today's companies must be aware of their social impact, which means that their activities must be environmentally friendly and in line with sustainability criteria. Otherwise, the community is likely to turn its back on them.