When starting a new company, many people find it a bit difficult to just start, because not many are oriented with what they want for their company and in the direction they want to go. Below are some types of business turns and even their meaning, in order to remove any doubts that may be had about the subject.
What is the business line?
Business lines are nothing more than activities carried out by a company, which are usually the main engines to generate income in it. These activities are usually chosen by the owner of the company or on many occasions by boards of directors, since they are highly qualified personnel for the development of ideas that can benefit the company.
Classifications of companies according to their line of business or activity
There are three different types of classifications for companies, this varies depending on the business they have chosen to develop in the financial field, depending on the activity that a business is carrying out, it can be classified as follows:
Service companies
These types of companies are dedicated to activities especially services provided to society, which are the most common, because we can find them almost anywhere, from a bank to a food market.
- Insurance: They are companies aimed at the public that wants, as their name says, to insure any property of their property, such as their car, house, their life and even their death, in order to have a fund managed in case of a future, unforeseen and uncertain situation .
- Tourism: These are dedicated to the enjoyment and guidance of travelers in places obviously unknown to them, such as foreign countries or on several occasions states of the same country of residence.
- Education: provide the opportunity of knowledge to people interested in obtaining them, an example of these companies could be musical schools, in which different types of courses can be done, as well as private universities, which provide the facilities for the study of careers at their disposal. student body, but for profit.
- Public services: They are companies normally run by the states, of which their only objective is the ease for their population to process papers, or to pay taxes, and services such as: electricity or water.
- Private services: They are companies with activities very similar to those mentioned above, only if they are related to the collection of their activities, in order to develop, since they do not have a fund as the state of a country does.
- Financial entities: Although there are public banks, you can also get private ones, which are focused on managing their clients' money, issue loans with interest so that their clients have business opportunities, with payment facilities, and even have a system of savings accounts, which usually use the borrowed money and generate interest annually.
- Health: They are companies that are located in the field of consumer health, normally they are usually clinics, which provide outpatient services, hospitals and attend to emergency situations, and there are also pharmacies that are dedicated to selling medicines that may be needed for any treatment.
- Shipping cost: They are characterized by carrying out the transfer of goods, products and even people from one place to another, among them we can find buses, taxis, moving agencies, shipping agencies, among many more.
Industrial business
The main activity of these companies is the production of any product, for sale and disposal of businesses that are dedicated to the sale of these, thus achieving business agreements, which are very important for their development, since while The more business relationships they have, the more customers they will have.
- Agricultural: They are in charge of raising livestock and cultivating plants for sale, dedicating themselves 100% to ensuring that they have optimal growth, because the larger and heavier they are, the better the profit from the product to be sold will be.
- Extractive: They are those that, as the name says, are dedicated to the extraction of raw materials for their commercialization with companies that require them for the manufacture of their products.
- Manufacturing: They are the ones that buy the raw material from the extractive companies, in order to mass produce for sale to small city businesses, of which they sell and negotiate.
Trading companies
They are companies dedicated to the sale of products made with raw material obtained from industrial companies, of which we can find almost anywhere, for example: toy stores, stationery stores, clothing and footwear stores and even vehicle sales.
- Brokers: They are companies dedicated to obtaining a small part of money for the sale of a certain product, obtaining from this activity their greatest source of income.
- Retailers: are shops dedicated to the sale of detailed items, such as clothing stores, bakeries, among many others in this line of business.
- Wholesalers: They are very similar to retail businesses, with the only difference that they are dedicated to selling only quantity merchandise, we usually find sales by the dozen onwards, there are even many retail companies, which are dedicated to both activities, selling depending on the capacity or intention of the consumer. Most of the clients of these companies are usually resellers looking for cheap merchandise, to earn a commission style, just like the first business venture we saw.
- Retail: They are the ones that have direct communication with the consumer, thus being the last in the chain of commerce, they are like a kind of mix between retail companies and commission companies, normally they can be seen as resellers of merchandise.
After looking at the classifications and sub classifications of the business lines, it is a little easier to know which one is the most suitable to start a business, more easily. But even if more is known on the subject, it is worth giving some tips to further facilitate the process of choosing the perfect twist.
Factors that should be taken into account when choosing the business or activity
Before making a decisive decision, it would be good to take into account some important aspects to finish choosing the turn and not regret in the future for a bad choice. Some of them are:
- Originality and difference: You should always look for an original idea, or when you recognize a good idea from a competition, reinvent it and make it better, since it is not necessary to invent gunpowder, if you can improve all its aspects so that the consumer can see a product still better than offered by any competition.
- Skill and passion: Usually people are guided only by the amount of money that a certain idea can generate, without thinking about the abilities or tastes of their own person, being in many cases a failure, since a poorly done job ends in a bad product , and that you probably don't like it very much.
- Competition: You must always be aware of the competition, when they innovate your product, you must find a way to improve that of your company, and do it in a way that is even better than that of the competition. On many occasions, the best ideas in our company do not come to the fore, but the answers may lie in the competition.
Having determined the different classifications, and giving some advice on the most important aspects to make the decision to choose the correct line of business for a good business development, it would only be necessary to analyze well the environment in which it will be developed, and the potential clients , the rest only remains to wait for the success of your business.