NEED HELP PLEASE!!! What makes a good business?

[little-berries]

Hi guys,

Iam studying business studies and I need help to do my task please.

What makes a good business?

Purpose: to help you think through your ideas of what makes a good business.

Task: post a brief message to the TGF in which you list two characteristics that you think a good business will have.

ANY IDEAS?????:)

Many thanks for any help.

[HAL9000]

A good business is one that exploits the following two principles:

1. A sucker is born every minute.

2. Never give a sucker an even break.

Good Luck.

Next!

[legalbeagle]

Well here's a few things a good business needs - not exhaustive though!

1. Unique selling point

2. Good understanding of dull things like accounting

3. Very dedicated and hard working owners

4. Proper financial backing

5. Good relationships with suppliers/customers/shareholders and others

6. A slightly insane streak that causes you to just keep going in the face of near conclusive evidence that you are doomed!

Good luck!

[Narnia]

HAL9000 Wrote:

-------------------------------------------------------

> A good business is one that exploits the following

> two principles:

>

> 1. A sucker is born every minute.

> 2. Never give a sucker an even break.

>

> Good Luck.

>

Hal, do you need a part replaced? You're sounding much like a well known dog on here.

> Next!

[Narnia]

A good product and a market for it. For example if you could make igloo's that don't melt you would have a market in hot countries. On the other hand if you could sell ice to the Eskimos you have a talent for selling that doesn't limit you to a particular market.

[Marmora Man]

A god business needs a product & market as Narnia has said but it also requires a process / system that can make (or obtain) the product, market and sell it at a profit.

That means you need a good understanding of the cost base, that in turn allows you to understand the cost of the product to you - knowing the price the market will pay for the product then gives you a gross profit margin.

If your product can be made / obtained and sold at a gross profit you will then need to determine the other costs of the business (staff, rent, rates, taxes, interest on loans, utility bills, and so on) to determine whether you can make a net profit.

Don't forget the cost of capital - you'll probably need to borrow money from a bank or an investor for the start up cash - this will need to be paid back - that's the cost of capital. Equally you may need to have access to money from a bank in the form of an overdraft or short term loan to cover the day to day running costs of the business, such as rent, staff salaries, suppliers and other bills - this is your working capital.

Once the business is up and running successfully working capital can be provided from profits and reserves, but for the first year or so you'll need to pay staff, pay suppliers, pay rent and so on before the profits from selling your product have arrived.

The profit you will draw upon as salary, remembering of course to re-invest some of your profit in the business (into reserves) to develop it (by improving the premises, buying new manufacturing equipment, running a special marketing campaign and so on) and develop new products.

[Karrie]

[Deleted] Safety reasons

[ruffers]

You could argue that companies which make vast profits at the expense of the environment, workers rights, and without reference to any moral compass are good businesses, very good in fact. Equally a local ethical supplier of organic hand knitted tofu (as it were) which supports charities and gives hope to the homeless is a 'good' business.

Bottom bottom line is probably profitable and sustainable (business, not in a 'green way) in it's purest judgement.