Dear Fellow Students,

After reading the module and additional material as well as watching videos in session1 , please
answer these Questions :

1. What is a Business Cycle?

2. What benefits can a business have when he knows the business cycle of his business? 

3. What month of the year is the best to open a business in your opinion? 

Answer:

1. A business cycle is a cycle of fluctuations in the Gross Domestic Product (GDP) around its long-
term natural growth rate. It explains the expansion and contraction in economic activity that an
economy experiences over time.

2. Business cycle is the periodic rises and falls which occurs in economy over time.

The benefits for someone who knows the business cycle of his business are :

1. He knows how to make a managerial decisions related to growth or

down - sizing within his business
2. He can put his current business in a better perspective
3. He can increase his profit and overcome the recessions

The stages of business cycle :

1. Expansion : During this stage, the business runs well. Business produce more goods and
more staff to deal with the demand
2. Peak : The highest point of the growth. The best selling happens in this stage.
3. Recession : It happens where the consumers don't have enough money to buy your
products. The business is slowing down
4. Through : The lowest business condition when you need to make decision to end the
business or go out and find a way out of it

Business cycle keeps going because of these two :

1. The first is interest rate. If the interest rate is low, the new investment will come and it
will add the jobs. If the interest rate is climbed, the investment dries up and less job growth.
 2. The second is consumer expectation. Forecast of expanding economy  fuels more
spending, while fear of recession decreases consumer spending.

3. The most common question that aspiring entrepreneurs ask is, "When is the best time to try?"

The answer: now! In fact, no age or youth is ever trying too hard. Rasulullah started working

since he was 12 years old as a sheep shepherd. This is the Prophet's first job as an Employee who

shapes his character. He was 15 years old when Belial Baru became a businessman and joined

his uncle to trade in Syria. With all his limitations, the Prophet eventually became one of the

businessmen and his name was famous for himself, the Arabian Peninsula. So you complain

because you were born to be given to poor families, compare with the Prophet's father who was

not born as an orphan. If you can't, you complain about being an entrepreneur because you have

low education, compared to the Prophet (s) with a school that never did. From And if you

complain that capital is an obstacle to entrepreneurship, then compare it to anything other than

given to the Messenger of Allah, who does not have shepherding Dombes. That way, justifying

that you can't give up by sowing the points that will be awarded to the battle medau of reason.

Example of Boxing, Colonel Sanders started a fried chicken business when he retired as a God

who was tested at the age of 60 years. Laughing at a lot of people at that time. But he remains

sure of what 'he' is, and finally proven, Kentucky Fried Chicken favorite restaurant to be one of

the gods of the people around the world. You can find that everyone deserves success, or yours.

On one occasion, the legendary Lunch with Indonesian entrepreneurs, Bob Sadin, Belial

explained the difference between stupid and smart people in doing business, "Assad, many stupid

people go or not, Miki, if he wants to say Business Risk, that's why business entry is small, so he
immediately does it. While many people smart to go Miki so he says the risk is Besa, so he tries

to avoid the risk, and in the end nothing is done. "

Source:

1. https://www.investopedia.com/terms/b/businesscycle.asp

2. https://money.kompas.com/read/2015/03/04/070800526/Kapan.Waktu.Terbaik.Memulai.

Usaha.?page=all