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Aims of a business

o   To Survive

Many a times you find yourself fighting to survive. Sometimes your life is threatened by a certain sickness and you must do everything in your power to fight the disease and survive. It is the same thing with a business, it must survive. A business finds itself faced with tough competition and other things that threaten its survival. To survive means that the business is able to fight competition, gain new customers find reliable suppliers and grow. It is able to be successful and not fail.

o   To make a Profit

If you were to start a business today, what would be your main objective? Most people start businesses to make a profit. This means that the business is able to sell its goods and services at a price above the buying price. The difference between the selling price and buying price is the profit. For example, if you bought a product at E20 and sold it at E50, the E30 is your profit.

o   To Grow or Expand

Imagine a situation whereby there is a baby born at your home and after two years the baby still looks like the day when she was first brought home. Do you think your family can be happy about that? Same with a business, it is expected to grow in size. It must have more customers and own more things (assets). If that does not happen then the owner must close the business and start a different one altogether.

o   Added Value

Has the fact that sometimes you buy something that you really like and then two months down the line you no longer like it you want a better version of it. Take for instance your cellphone, when you bought it you really loved it but now you want the latest version of it. This is why businesses must always improve the products that they sell. Value must be added to the product through making changes that will improve the way it tastes, feels and looks.  This makes consumers to continue consuming that product.

o   To Provide a Service to the Consumers

Ask yourself why you keep on going to a particular business or buying a certain product. Businesses exist to provide goods and services to the consumers. This helps to meet the need and wants of the consumers and makes the business to earn a profit. Businesses must spot needs of consumers and satisfy them by offering the product and then earn a profit.

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