Business in economy is place that have only one intention - to introduce, learn and educate about new business activities.

Main purpose of this site is to educate everyone in a business way from
the beginning. This site will not show any examples how people make
money because we strongly believe that this world is world of
individuals and everyone is forger of his own destiny. Because of that
Business in economy will try to help everyone to expand their own idea
on profitable way.

Business Plan

There can be three business plan that can suits your needs:

1. One-day business plan (Quick Business Plan)

This is a basic plan produced in a short time (sometimes in one day).
You can create quick business plan if you know your business well, do
the necessary research about business and can make financial
projections in a short time. Quick plan is appropriate only if your
business idea is very simple or someone has already committed to
backing your venture. Usually, the basic information is not enough for
lenders and investors to make a decision. Most busy backers will turn
down a proposal before they will ask for more information because they
prefer a deluxe
version with all the extras to a stripped-down model...see part 1 and part 2

2. Complete Business Plan

Complete plan is very helpful for people who are starting a new
business. It is also excellent for convincing prospective backers to
support your business. You’ll be more successful in raising the money
you need if you answer all of your potential backers questions...see part 1 and part 2

3.Customized plan

Customized plan is a plan that have components from both quick and
complete plans. Here, writer decides what part will include and what
exclude.

Business Letter

You
want to write a letter of enquiry, offer letter, order letter, order
acknowledgement letter, letter of complaint or letter of adjustment or
some other type of business letter - here we explain how you can do that properly without errors.

Also we offer you to see most common opening, body and closing phrases for make your letter more appropriate for business audience.

Types of Economies - Economic systems

Economic systems set the rules. These rules influence what is produced,
how it will be produced and for whom. Decision is always made by state
or market.

Controlled, planned, centralised or even called command
economy appear if the state makes economic decisions, controls the
economy and plans what goods and services the country needs. This type
of economy is very rare today.

On the other side there is unplanned economies, free market economies, free enterprise or laissez-faire systems is economies where everything is left to the market. This type is also very rare today.

+

And last and not at least important is mixed economies.
It a mixture of a unplanned and planned economy (Tile quantity,
quality, prices of goods and services are left to the market, and state
determines the production
of some goods and services).

Types of Economic Activities

Economic activity of each country can be divided on three sectors: primary, secondary and tertiary.

Primary sector involves extracting natural resources; raw
materials for use in the manufacturing process. Examples of primary
production are mining, forestry, fishing and agriculture. In most
countries this business activities are on decline.

Secondary sector involves the processing of raw materials into
manufactured products; fruit into juice, wood into chipboard, metal
into cars etc. Traditional industries like engineering are on the
decline but high-tech industries like electronics are growing.

The tertiary sector business provides services; insurance,
trade, legal advice, advertising, etc. These days, service industries
growing dramatically.

Types of Businesses

Basic thing about business is to know two main types: 1.Private and 2.Public Sector.

1.

Private Sectors include sole proprietorships, partnerships, joint stock companies (Private limited companies, Public limited companies) and other forms of businesses such as franchises.

Sole proprietorships is form of business that is very easy to
organize. In sole proprietorship, owner usually works in the firm and
is in control of the business. Owner can employ workers to work for him
and he receives all income. One very bad thing for sole proprietorship
is that he is totally responsible for losses and debts with whole his
personal possessions and that is called Unlimited liability. For this
form of business no special legal documents are needed but it is very
difficult to compete with large firms. Most common sole proprietorships
are tourist industry, plumbing, hairdressing etc.

Partnerships are unlimited liability businesses with at least two partners

who contribute capital to the business and share the profit. There is
no special legal requirements and the future business partners are
advised to draw up a legal document called a deed of partnership.
Deed of partnership covers from who provicies the capital, controls the
business to how to distribute the profits. This type of business is
common in professions undertaken by doctors, architects, accountants,
solicitors, etc.

Private limited company (sign: Ltd) is usually small or
medium-sized company with the shares held by their owners. Usually
owners are members of the family (minimum number of members are two and
maximum fifty).

Private limited company cannot offer their shares for sale to public,
only to people that they approve. Shareholders chooses to take or not
take part in the running of the business because board of directors is
appointed to run the company (they are shareholders who run a company).
Minimum share capital to start with is 2£ ($4,1). Also two legal
documents are necessary Memorandum of Association and Articles of
Association and they are send to the Registrar of Companies (with that
act Ltd have permission to trade).

Public Limited Company (sign: Plc) have a minimum of two
members and maximum is unlimited, a share capital of at least £50,000
($102,500) and can offer shares on the Stock Exchange.
Shareholders,that own a public limited company, appoint directors of
the management. The company acts a Certificate of Incorporation and
advertises its new shares for sale or sells them to pension funds,
insurance companies and other big financial institutions.

Franchising is is a form of cooperation – usually between a big
company and a sole proprietorship. It is a business in which a big
company (franchisor) sells an individual (franchisee) the rights to run
a business using the franchisor's established system. The advantage of
this type of business is that franchisee takes full advantage of the
franchisor's reputation, experience and brand name. At the beginning
the franchisee must put up the necessary capital to open the business
and is under contract to pay an initial sum of money - franchise fee
(front end) as well as management service fee (a percentage of the
annual turnover) to the franchisor. According to the contract, the
franchisor provides an operations manual which is a document containing all the information the franchisee requires in order to manage the business.

2.

Public Sector include various forms of industries that are run by the central government or by local authorities. There is Public corporations and Municipal enterprises.

Public corporations are owned and financed by the central government. Board of Directors
has been appointed by government minister who is responsible to
Parliament. A government set goals, gives large sums of money if there
is losses. We can almost said Public corporation in past tense because
with privatisation most of them transform into Public limited companies.

Municipal enterprises are run by the town, city or country
councils and include services like transport, agriculture, faculties,
market halls, libraries, airports, health, cementaries, car parks,
lotteries. Many of this services slowly but efficiently will become a
private business services.

Entrepreneur vs. Manager

Entrepreneur

Word entrepreneur is synonym for success, lot of money, independence.
There is no recipe for success. Maybe it is being in the right place at
the right time but surely being innovative and steady will help you
gain success. As entrepreneur, you start from scratch, set up a small
business, do paperwork that is necessary for running it and work hard
at day and at night to put that business in prospective position.
Entrepreneurs will have a lot of problems (some of them more, some
less) they will have to struggle with high taxes, lose and get or get
and lose money over the night. Entrepreneurs trusts their own inner ear
and make quick and good decisions. After their company start getting
more and more money, they have to be occupied with the management of
the business, they need assistance, appoint managers and delegate much
of theirs day-to-day responsibility to managers.

Managers


Managers are a part of a business organization system, having jobs in
planning, organizing, supervising and measuring the performance of the
company. Managers work on the detailed day-to-day operations, set
objectives, allocate resources, choose a specific course of action.
Choosing the right person for the right job, staffing, is one of their
responsibilities. Being good at communication and motivation helps them
in directing, training and motivating their employees. In the end they
evaluate how well company objectives are being met. Entrepreneurs risk
their own financial resources in settings up their firms, managers do
not.

Positive and negative trends involving entrepreneurs between 1980. and 1990.

1990. was a bad year to be an entrepreneur. Business failures were up.
Sales were down. The outlook was poor, and credit seemed impossible to
come by. As the economy slipped toward recession, small business owners
started to spend less money. The loose lending led to the
savings-and-loan disaster. It caused anxiety among bankers and
eventually tightened standards. Small businesses, which had developed
into great
job generators during 1980s, slowed their hiring plans. Some even had
to lay off workers and some closed their doors entirely.
Things were tough for a while, but nine years later, the 1990s and
turned out to be one of the brightest periods in history for
entrepreneurs. The extraordinary upturn created vast individual and
corporate wealth. This made it much easier for entrepreneurs to obtain
seed capital to start their own firms. At the same time, the downsizing
of giant corporations pushed many senior managers onto the street and
gave them the idea to break out on their own. Lots of talented people
who didn't expect to be fired were fired. Aided by fat redundancy
packages they had lots of money. Those people would never have started
their own companies without the push out of the corporate door. The
economy pulled itself out of a brief recession and went on through the
longest expansion in U.S. history. It was boosted by low interest rates
and low inflation and by a federal budget surplus unforeseen by anyone
in 1990.

Women's role in management - Equity and Complementary model

Equity model

It assumes that men and women are similar. It prevails in the United
States. In this model women are assumed to be identical, as
professionals, with men and therefore equally capable of contributing
in ways similar to men. Primary question in this model is access.
Important is that women assimilate in male dominated world: they are
expected to act, dress, and think like men. Effectiveness is then
measured against male norms.

Complementary model

It assumes that men and women call offer complementary talents and
abilities to management. It prevails in Europe. It is based on the
assumption of difference, not similarity. Here women are assumed to
differ and therefore to be capable of making different but equally
valuable contributions to the organization. Female managers are
expected to act, dress, and think like women.
Their behaviour is similar to that of men but also differs in many
important aspects. Progress here is measured in qualitative terms: how
much the organization allows, encourages and rewards men and women for
making and building synergy.

Women in management - general

Women represent over fifty percent of the world's population, in no
country do women represent half, or even close to half, of the
corporate managers. Many of the constraints women face are quite
similar around the world; nevertheless, the relative importance of each
limitation varies very much from society to society. Women in Japan and
Saudi Arabia, for example, may focus on cultural patterns when
explaining the situation with regard to female managers, whereas
American women may look primarily to the laws and regulations, and
Chinese women in Singapore and the People's Republic of China may
emphasize current economic conditions and political leadership.