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Requisites of the Business
- Establishment of objectives: There must be proper establishment of objectives. Objectives are the aim of business. It determines the scope of future work. Objectives must be clearly defined. It provides guidelines for doing work. Objectives are defined for long term and short term.
- Proper planning and policy: Proper planning classifies the works done. Planning and policy formation should be done in efficient way. There must be clear set of policies and programs to complete the work. It helps in minimizing risk and maximizing profit.
- Proper location layout and size of business: Proper location layout and size of business is needed for progress of business. Layout means planting the business in such a way that production work can be carried out with efficiency and true manner. It helps in determination of proper size of business. Location also should be suitable. It must attract the market.
- Sound organization: There must be division of work among employees. There must be effective use of human skills and knowledge. Organization should help to answer various business problems. It ensures team work. It must ensure best communication channels for proper decision making.
- Separate finance: Finance is the blood of business. Business can’t be established without sufficient capital. Volume of capital to be invested is dependent upon size of business firm. Source of capital must be properly taken into consideration. It must be flexible. It should be suitable for both long term and short term business.
- Efficient management: Its main objective is to manage all activities of human and other resources. It must perform right job at right time in right place. It must use effective management technique.
- Employee’s morale: The success of business depends upon employee’s morale. The business should be used with intensity of employees. Employee should be encouraged, motivate. They could complete their work heartedly,
- Modern technology: It brings/ uses modern technology. It provides new idea and methods in production process. There should be proper labor and capital adjustment.
- Research: It helps in improvement of product. It works under the taste, desire and preference of the customers. In it various marketing, strategies, skills, knowledge and experts are used. Research and development is the main way to achieve profit with customer satisfaction
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