Purpose of a business

• Reasons for starting a business:

  • To produce a good
  • To provide a service
  • To distribute products
  • To benefit society
  • To fill a gap in the market
  • To fulfil a business opportunity
• Goods:

  • Tangible items that can be used and stored
  • Examples include computers, food, and clothes
• Services:

  • Intangible actions that cannot be stored
  • Customers have access to services for a period of time
  • Examples include hairdressing, train journeys, and internet access
• Wants:

  • Things that people would like to have but can survive without
  • Unlimited and might include event tickets, designer accessories, holidays, laptops, mobile phones, and cars
• Needs:

  • Things required for survival such as clothing, food, shelter, warmth, and water