Essentials of a Successful Business

Essential of a successful business

The present day business system is very complex and elaborate. The businessman has to take certain line of action to make his business a success. They are:

Essential elements of a Successful business

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1. Objectives: For the success of any business organization, determination of its objective is very essential. It should be clearly described and also be realistic. It may be primary or/and secondary. Each activity of the organization should be directed towards the achievement of its objectives.

2. Planning: Planning refers to the rational and orderly thinking about the ways and means for the achievement of the firm’s objectives. It analyses the problem and find out the solutions with reference to the objectives of the firm. It enables the firm to run smoothly and thereby reduces the risk of loss. Thus, it is considered as the essence of business.

3. Research: Research is necessary for the organization in order to improve the methods and techniques of production, quality of the products and also to introduce new products. It enables the businessman to meet the changing needs of customers, demand and also competition among the producers.

4. Location and Size: Favorable location and suitable size have a great bearing on the success of any business concern. The businessman in selecting a suitable location and also in determining its size must exercise proper care.

5. Sound Organization: Sound organization is very essential for the success of any business. It is a medium for exercising effective control and management of any business. A good organizational chart is necessary for staffing the organization with sufficient number of personnel with different talents and skills, dividing work among people etc.

6. Adequate Finance: Finance is the lifeblood of the organization. Inadequate finance may lead to losses in the firm. Hence, arrangements should be made to meet the short-term and long-term requirements of the organization. Flow of funds and employment of funds should be planned well in advance.

7. Effective Management: In order to achieve its objectives, effective and efficient management is essential. No firm can achieve success unless it has an efficient management. It is possible only when the managers are competent in performing their duty.

8. Effective Distribution System: The goods produced have value only when they are made available to the consumers. The object of producing goods itself is to distribute it for value. Therefore, in every business organization it is essential to have effective distribution system.

9. Maintenance of Better Employee relationship: Cordial employee-employer relationship is very essential for the successful operation of the business concern. Employees are to be rewarded, well treated and also provided with all amenities to ensure job satisfaction. This will definitely boost up the employee morale and ensure their cooperation.

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