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