Have you ever wondered what types of business are there and where they all come from? Well, if you are a newbie business owner or even an experienced entrepreneur, you have probably wondered the same thing. There is no shame in being interested in the types of business, because that can really give you some insight into how the economy functions. This will not only help you understand the market better, but it could also help you develop better marketing strategies to make more money.
The types of business, you can have are basically dependent on your education and background. Basically, there are three categories – small, medium, and large businesses. If you want to own your own business, then you would be classified into one of these three categories. Here is a breakdown of these three categories:
The first type of business is the small or home-based type. A home-based type would usually be a domestic concern like running a catering service or cleaning company. It is a type of concern that does not require a huge investment, since the capital investments would just be for its operation and expansion. You may even be able to run this type of business at home if you do not have a fixed place where you can conduct business. You need to constantly expand in order to earn a significant profit, but you don’t have to worry too much about finances because you do not need to hire any employees and can simply work at your own pace. You will also not have to worry about contracts or agreements with other companies.
The second type of business is the medium-sized concern. This type requires a big market base in order to survive, which means it has to be established in a relatively metropolitan area or nearby areas. Medium-sized concerns typically have several branches and outlets around the city or in various parts of the country. They would also have several sales outlets. They have various distribution channels as well, but their main focus is their service to the community through its various outlets.
The third type is the large-scale concern, which can be classified as a business with one huge outlet. These firms have several outlets which are strategically positioned in major cities or in selected places where many people pass by. They often have several branches or outlets, all of which compete with each other in giving the customers what they need. In fact, a lot of these stores have very similar products and services, which give them a significant competitive edge. They are the biggest competitors of the big-scale firms.
Finally, there are the small-scale and medium-scale firms. These are the type of firms that are usually just starting up, but they can still survive even if they have just one outlet or two. They may only have a few sales outlets or they might be just starting out in the business. They do not have to worry too much about market saturation, because they do not have the whole market covered yet. Because they do not have the complete market covered, however, they could easily go out of business if they encounter a problem along the way. So these types of firms may be more vulnerable to the market saturation problem.