Countries will have more significant growth opportunities now that global trade is rising. Besides that, youth are incredibly active and inventive when it comes to business expertise currently. That is the reason why young people are becoming increasingly entrepreneurial. However, to start a firm successfully, you need to have basic knowledge of business.
This article aims to guide young people on what they need to know about basic knowledge of business, particularly those who are starting or will start a firm.
1. What is business activities?
Sales or business activities are a series of operations carried out to benefit businesses, corporations, and other organizations. They engage in activities that produce material commodities to meet consumer wants. Then, they sell it on the market, making a profit in terms of currency.
Each department in the business has independent operational functions. However, they are unified and closely linked with the implementation of the final purpose, which is to generate sales and revenue for the firm, enterprise, or group … This is the concept of business knowledge that every entrepreneur must understand.
2. Critical basic knowledge of business: How many type of business?
2.1Joint – venture company
Two or more partners establish this type of enterprise company based on a joint-venture agreement or an executive agreement. This is to conduct sales activities across sectors of a country’s economy.
A joint venture is organized under a limited liability company. Along with that, this organization has a legal personality. It will be liable for debts with assets based on capital contributed to the parties’ joint venture.
You will learn a lot of business knowledge from foreign investors while operating the business.
2.2. Wholly foreign-owned companies
As the name suggests, this is an enterprise with 100% investment capital known from abroad. In essence, this is a limited liability company, with limited liability for debts from sales activities within the business’s assets established by a foreign individual.
2.3. Sole member limited liability company.
A single-member limited liability company is a company owned by a controlling entity. The owner will bear the consequences of the company’s debts, and other property obligations to the extent of the capital contributed to the company. Besides, they are also entitled to issue securities following the law. Most of the business knowledge is applied by many people in this model.
You need to understand this business knowledge to start choosing a business model.
See more: What is digital transformation? Importance of digital transformation in business
3. Basic skills before you start your business
3.1 Project management skill
Project management – this Basic knowledge of business plays a significant role in business. Along with the continuous development of information and communication technology, and the empowerment of employees, management only needs to monitor the progress and coordinate to ensure that everything goes according to the original schedule specified. In addition, the current business trend is gradually shifting from production to providing services based on the will and requirements of customers.
The above essential reasons are enough to convince you to equip yourself with project management skills before embarking on a business. This is the business knowledge needed by a successful entrepreneur
3.2 Good communication skill – Basic knowledge of business
Practical communication skills are always needed in any situation. They are considered a key factor for the overall development of a person. You will notice that most of the things you do require this skill. And for a successful business, good communication is essential.
However, good communication is not talkative or becoming a wordy person. It is related to conveying a message that needs to be light and concise so that the majority can understand and grasp the information quickly and accurately. You must know how to connect your vision with your passions and beliefs effectively. This is the basic knowledge of business that most successful entrepreneurs deserve.
3.3 Basic Knowledge of business: Teamwork skill
Teamwork skill is about establishing and maintaining positive, cooperative relationships with people. In today’s modern workplace, this skill is essential People thinking together will find more optimal solutions than an individual working independently. This will be excellent basic business knowledge for startups.
For young people starting a business, let’s be confident; never give up when you fail. Remember to fully equip yourself with the basic knowledge of business before starting. Hope the article will be helpful for you.
Read more: Top 5 start up business ideas 2023
