In the Philippines, running a business is a big responsibility for any owner. Depending on the size and type of business, it aims to provide job opportunities and make a decent profit. If this is your first time venturing into business, you should know what good or service is in demand in your area. Any research will help you find gaps to address so people can receive their products.
Businesses come in various sizes and starting capital. Before officially running one, you should gather and process documents with the local government unit. Having no documents means that you cannot run a business. Therefore, you should gather the required documents to run a business on legal grounds. Remember, the papers should also indicate what type of business you will run to make any transaction easy.
What Is A Business?
A business is an entity that provides goods or services in exchange for payment. Depending on the available resources, the business can focus on one type of good or service. In its most basic terms, you make a living through commerce. Today, businesses are through brick-and-mortar stores or e-commerce websites. Like any business, a business permit registration is the first step to running one. These permits certify the type of business you will run, and it follows a specified validity period. Once it expires, you can renew your business or close depending on the state of your business.
Types Of Businesses
First-time entrepreneurs have a choice of running one type of business they want. Each type focuses on one specific area, and it has advantages when you reach the return on investment. Remember that some businesses can intersect as long as it provides the product or service people need or want.
The three types of businesses include the following.
- Service Business – The service business provides a specific service. It does not offer products but provides a way for people to engage in various activities. Examples of services include banks, review centers, salons, barber shops, gyms, and more. Their “product” involves a kind of service or action that benefits the customer.
- Merchandising Business – The merchandising business follows a “buy and sell” concept. You can sell products but not services. For example, buy products at low prices from wholesalers and sell the products at a markup for profit. Through this business, you cannot change the products you get. Examples of merchandising businesses include groceries, malls, and department stores.
- Manufacturing Business – The manufacturing business is an enterprise that creates various products. You get to buy raw materials and create products the business can sell. Examples of manufacturing businesses include food processing, furniture making, electronics, and more.
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The type of business you should pursue depends on your existing resources. Time, skill, and research should be done to know what business suits your needs. Once you find the best one, gather the needed papers to run the business. It is important to comply with the rules set by business owners. Ultimately, running a business will show what product or service will improve people’s lives.