WHEN I THINK OF “BUSINESS”, WHAT TYPE OF BUSINESS DO I THINK OF FIRST? WHY DID YOU THINK OF THAT BUSINESS?

WHEN I THINK OF “BUSINESS”, WHAT TYPE OF BUSINESS DO I THINK OF FIRST?

WHY DID YOU THINK OF THAT BUSINESS?

CREATE A BUSINESS PROJECT

GROUPS OF 3

DAY 1

TYPES OF BUSINESSES

TYPES OF BUSINESSES

1.MANURACTURING BUSINESS

2.WHOLESALING BUSINESS

3.RETAILING BUSINESS

4.SPECIAL TYPES OF BUSINESS

Manufacturing Business

• Also called a manufacturer• Converts materials into goods

suitable for use and then sells those goods to others

• 2 categories: Industrial Goods – sold to

other manufacturing business Metal and plastic parts Lumber Heavy Machinery

Manufacturing Business

Consumer Goods – products eventually bought by the public Anything you purchase at a

store• Small manufacturers sometimes

produce consumer goods and sell directly to the public• T-shirts, baked goods, or

jewelry

Manufacturing Business

• Large manufacturers usually do not sell directly to customers• They sell to wholesalers

Wholesaling Businesses

• Also called a Wholesaler• Purchase goods in large

quantities from manufacturers• Resale those goods in smaller

quantities to retailers• Known as middlemen, go-

betweens, distributors, intermediaries because they provide a link between manufacturers and retailers

• Wholesalers don’t generally sell to the public

Retailing Businesses

• Also called a Retailer• Purchase goods from

Wholesalers and resells them directly to customers, who are end buyers/users

• Examples: Stores, Shops, Boutiques

• In most states, retailers must have a special permit (Reseller’s permit) to purchase goods tax free from wholesalers and collect sales tax from the end buyers

• A business that is either a wholesale or a retail business is called a Trade Business

Service Businesses

• Provides services to customers for a fee

• Provide a wide variety of professional, technical, and everyday services that people need and want

• Examples: Engineering, legal, medical, accounting, auto repair, babysitting, landscaping, dry cleaning, garbage pickup

• Most states have licensing requirements for people who provide services such as doctors, dentist, engineers, lawyers, day care providers, etc.

Special Types of Businesses

• Farming is a special type of business. It is a combination of manufacturing and retailing. Often sold to wholesalers and directly to the consumer

• Mining is another special business. Also called an extraction business.

• Mining takes resources from the environment and converts them into a form that can typically be sold to manufacturers

• Copper mining, oil drilling, converting sea salt to table salt

Startup Business Trends

• During the 1950’s and 60’s, America experienced a boom in franchising.

• A Franchise is an arrangement in which an established company sells the right for others to use the company’s name and operating plan to sell products or services.

• Franchising became popular in the service and retail industries, particularly among fast food restaurants.

• What is the best-known franchise in the world?

• McDonalds

Group Break-out Session

• Take 15 minutes

• Brainstorm on the type of business you want to create

• Write your ideas on the paper provide for you