Business Ideas What is the main objective or reason of doing business?

[Mataracy]

As an accountant or economist; it is generally assume that the primary objective of any business form is to maximize its total profit, but in practice some economists and business executive question this assumption that firms' aims is to maximize its profit.

For example, as self individual making $100,000 per annum who could have made $250,000 per annum in different job may decide to be his own boss instead of earning $250,000 in different job .
Such a business is not maximizing its net income but the total satisfaction of its owner.

Also in a large company, the board of director appointed by the shareholders dearly want the maximum possible profit but the director who actually make decision have the opportunity yo pursue different objectives.

The directors salaries are usually higher as the larger the firms, this will makes the directors to aim for size and growth rather than maximize the possible profit.

My question is what is the main objective or reason of doing business??.

 

[sincerem]

Yes, the reward is base on the level of each worker. The higher the rank the better the earnings. That's how it is when employed to work base on your skill level and certification. But if you're a business person you can earn better when you're business starts moving higher and making that high sales which every entrepreneur dream of.

 

[btaliat]

There are many reasons for doing business. And in the two instances you gave, you will discover that in both scenarios, the two preferred to he financial independent and not want to be under anybody. Another reason why people do business is for legacy. Not many people want money, but they want to bequathe legacy for their families. They want goodwill and not really for the money.

 

[Kingsley]

We all know the General objectives of any business organization that is not related to non-profit organization will place profit making over any other thing. Although governmental agencies are not setup primarily for profit making solely but to render essential services. So the General rule is to maximize profit. That is the major reason.

 

[Sotherefore]

There are some people that are naturally talented in business and they set of people may not be able to be comfortable in where they are working if they do not have their own private business, having a private business is something that can help you so much because It can generate so much money if the business is well managed.

 

[Sammyesx]

To me I believe the first and most important reason for starting a business is for profit making any other reason is secondary, an entrepreneur will definitely consider the profit that he can get from a business first deciding if he will venture into such business at all before other things are considered.

 

[moonchild]

The main reason for starting a business is to make money, any business that has other reasons apart from these is on its way to failure.

Business is simply the act of providing value or solutions to people's problem with the end result of making money out of it, so if you can provide a value wrapped as a Solution then money will surely exchange hands.

This is a very good concept to understand for aspiring entrepreneurs like myself and others, don't get loss in the herd mentality without understanding the reason you start a business, for example if you look at Facebook, they offer a service of connecting you with others I don't know maybe friends or family or people you share the same interest with, this is a value they offering you and in return they'll show you ads and they'll get paid by the owners of those ads.

This is a typical business cycle, you offer a value you receive value in return because money itself is value, if I post quality contents on this site the Admin will reward me with money(value).

Your reason to start a business should be a calculation of the value you'll earn in proportion to the kind of value you'll offer.

I hope this is clear.

 

[sincerem]

Every one got reasons why he or she is operating a business or businesses, which is mainly for profit. Some persons go into business simply for bragging right, they simply wants to answer that name 'I am a business owner. But such shouldn't be a major reason why we are going into business, business has an aim which is mainly for the purpose making profit. It doesn't matter if it's daily, weekly or monthly profit you're making out of your business. What really matters is that, you're making something out of your business and it's simply on the massive progress.

I am simply going into business for a profit, I simply wants to run a new business, or expand my current gaming business. Before I make further move to develop a new business or expand my current business, I simply have to make a wise plan for it, to see what it gonna bring for me in the future before taking the steps. I must understand what I'm going into, and not just expanding or creating a new business when the funds aren't up to adequate, so I wouldn't run out of reserve funds. Everything simply needs to be meet, especially the primary requirements before I go further.

 

[HayKay]

A mentor of mine once told me that being in business is primarily to solve the needs of people and if I'm not doing that, I would be out of business soon. It has stuck with me till today and that's the sole aim one should always consider before going into business.
Yes, having time and financial freedom is key but these should be secondary else there'll be no business in the end.

 

[Good-Guy]

I would assume that the main reason of conducting business is to make more money and improve the financial conditions of the organization and people associated with the company or business. However, I am sure that making money might not be the only purpose of certain businesses. Some companies actually focus a lot of betterment of society and this why they have many aims and objectives besides making money. In fact, there are many non-profit organizations that depend a lot on donation money. They also pay salaries through donation money and they take care of society, too. There are some governmental organizations that also never focus on making money in certain countries.

The government pays the employees of those organizations and they work to improve the living conditions in the country. For example, there are many governmental welfare trusts that help people and there are many health organizations whose main focus is to improve the health conditions of people living in the country. Many private business organizations also have a charity organizations, which work for improvement of people. However, I would believe that the main mission of most of the businesses would be to make profits because this is what they want.

 

[Alexandoy]

Based on my education the concept of the business is to provide what the public needs. You will not sell sports car in the rural area because there is no demand. But if you sell a tractor then there might be a demand depending on the capacity of the rural folks that are mainly farm owners and workers. When you sell a product or provide a service that means you are bridging the gap. That is what the spa owner here said to me. He opened up a spa because some of his friends in the village wanted a massage. That spa had provided the massage service to our village.

For a business to go on there should be a profit which is the margin between the capital and the revenue. When the mark up is not substantial then the profit is small that it might not suffice to cover the overhead of the business.

 

[Kendy]

Undeniably, one of the major objectives of engaging in any business venture is to maximize maximise profits or gain. There is no business owner or entrepreneur who sets up a business to incur losses. The major aim of any business is rooted on the foundation or bedrock of maximising profit and minimising cost. In most businesses startup, it is not always possible to make profit at the beginning because you are still trying to make your products or services known to the specific or target audience but with time and with gradual creativity innovation and persistence in the business, you would be able to have a rooted foundation and also enhance your customer retention skills. Also, there are other objectives of starting a business apart from the profits, although it remains the top most priority.
Other objectives of starting a business could include to make an impact in the community or the world at large and to make your products become or household item and also to reach out in educating people about a particular product and how it should be used in solving a particular problem. One other objective of a business setup is to reach out to the needs of the society and to balance the gap between demand and supply.