Business Operations

Business operations serve as the company's overall strategy or map. Business

operations refer to daily activities, processes, and staff that make up a company's value.

Operations include many moving parts, from personnel, to physical equipment, to goals

(Browne, 2019). The facet of a business where the majority of the direct labor takes place is

business operations.

According to Truong (2020), there are three different types of business operations:

service, merchandising, and manufacturing. For a business to function properly and productively,

business owners must understand which business operation aligns with their company and the

responsibilities it entails.

According to the study, when starting your own business, you must consider a variety of

product and service offerings. The main types of business operation: Sole proprietorship,

partnerships, corporations, limited liability companies (LLC’s), nonprofit organization,

cooperatives, these are the breakdown notes about the types of business operation in federal

rules. Additionally, it should select a business operation that maximizes tax and liability benefits.

Additionally, the appropriate number of business owners must be considered, and the market's

suitability. In other words, the business must have a marginal impact on the type of business

operation. (Smartbiz 2019)

The decision to put all your savings is to start your own businesses, with a wide set of

choices you see in public forums, advertisements and sometimes in front of you. But the question

is what will be the best business fit for your capital, what is your expertise in operating a

business, which one will give you more profit? There is a lot to be considered, so you can use a
failure proof plan. In this plan, it is safe to start from the bottom and work it on your dedication.

These are the types of business operation: Service businesses include intangible goods that do

not require a physical item, such as transportation, consultation, bayad center, computer shops,

work agencies repair, and professional services from lawyers, doctors, financial analysts, and

accountants. Merchandising businesses include grocery stores, hardware supplies, clothing,

ukay-ukay clothing, and this type of business involves. The General merchandise such as retail

business, toy stores, electronic stores, apparel stores, online stores such as Amazon.com, Lazada,

Shoppe, Itunes.com, Ebay, etc. The manufacturing business converts basic raw materials into a

finished product, which includes labor and other operating expenses. Examples of overhead

include computer and electronic manufacturers, car, truck, and van manufacturers, shoe

manufacturers, clothing line manufacturers, canned goods manufacturers, and soda or beverage

manufacturers.

Established the legal structure for your company, you must consider the company's

physical operations. Business operations include your company's location and the processes,

resources, and other tools required to convert inputs (raw materials, labor, and capital) into

outputs (goods or services). It would help if you organized your information to maximize your

results for profitability. While some businesses have unique physical, operational requirements,

there are some fundamental areas that all business owners should consider. Your operational

decisions can improve the efficiency and thus the bottom line of your end product. (Basic

Business Operation 2016)

As Kauffman E. (2018) said, small businesses could be defined in a variety of ways.

Small business statistics vary depending on criteria such as the number of employees, total
revenue, length of time in business, nonemployees, businesses with employees, geographic

location, etc. Because of the complexities and the need for consistent statistics and reporting for

small businesses, several organizations are now collaborating to combine comprehensive data

sources to obtain a clear and accurate picture of small businesses in the United States. Over the

last three years, start-up activity has risen dramatically, from a low of minus 0.87 percent in 2013

to a high of positive 0.48 percent in 2016. New entrepreneurs who started businesses for the sake

of opportunity rather than necessity reached 86.3 percent, a figure that is more than 12

percentage points higher than in 2009, at the height of the Great Recession. Small businesses can

be found in nearly every industry in the United States, including services, retail, construction,

wholesale, manufacturing, finance and insurance, agriculture and mining, transportation, and

warehousing. Established small businesses have been in operation for at least five years and

employ at least one, but no more than 50 people. Small businesses are critical to the economy.

They use over 99 percent of all workers and generate roughly half of all economic output in the

United States. The majority of new private-sector jobs created in the United States have been in

small businesses over the last decade. A small business is defined by the Small Business

Administration as independently owned and operated, has a local base of operations, and is not

dominant in its field. It also categorizes small businesses based on their size and industry. Small

businesses can be found in every industry, but they are especially prevalent in the service,

construction, wholesale, and retail sectors.

According to Ty K. (2016), the work of managing the inner workings of your business so

that it runs as efficiently as possible is known as operations. Every small business owner must

oversee the design and management of behind-the-scenes work, whether they make products, sell

products, or provide services. You may not want to dedicate a single person to operations in a
small business. Instead, both employees and owners should understand how the company

operates and how different processes affect day-to-day tasks. Here are some examples of

operations from various industries–and how mastering your strategies can help you succeed.

Then, think about how your current processes for communicating, collaborating, and managing

projects affect the services you provide. Consider your methods in terms of time. Operations are

critical to running a business that is constantly improving at what it does. You will define and

optimize what operations means for you and your business by looking at how your business is

run and asking yourself questions about existing processes.