“No risk, no business” is popular proverb. But risk is not the only problem of business. A business, whether new or old, big or small, continuously faces variety of problem, some to a great extent and others little.
It is important to bear in mind that essential of establishing a business house is a synonymous term with business problems.
Before starting a new project the businessman must analyze business opportunities in terms of expected profit, possibility of success, nature of demand, future tendency, stage of business cycle, technological development, government policies, nature of competition, and purchasing power of the consumer. Assessment in such a way will help the business satisfy the demands of owners (shareholders), management, employees, consumers, and the government. Assessment of opportunities is equally important for both new and old businesses.
Business can be divided into three categories:
a. Manufacturing: changing material from one form to another.
b. Trading: the business aiming at sending goods from manufacturers to consumers.
c. Services: providing specialized and professional intangible goods to the consumer, as doctors, engineers, professors, lawyers.
Every business faces identical problems irrespective of size, kind, or being old or new. Ever al the tune of establishment the same problems come up. These problems are of continuing and recurring nature. Today they are solved and tomorrow they re-emerge in buying, production, staffing, marketing, and so on.