The businessman makes goods, production, and works, provides services, information, creates cultural values which then realizes to the consumer. Production can be industrial, agricultural (farming), construction and other types.
It is very expensive and difficult kind of activity. It is surely necessary the starting, main and reverse capitals, not to do and without hired workers. It is necessary to establish also relations with suppliers of raw materials, container, spare parts to machines (cars), and fuels. And even for production the room, working facilities, tools, transport, computers, etc. are necessary. There are two options – to get all this at once or in the beginning to rent. Don’t forget to consider the expenses connected with labor. Rationally to use on it means, pay due attention to the correct staff recruitment.
Competently made business plan significantly will simplify and will facilitate start of production company.
Commercial business activity is trade and exchange and commodity-money operations, purchase and sale of goods and services. Now in the territory of CIS countries is practically the most widespread type of business. A large number of IB deals with commercial activity in Kazakhstan. This type of business is very flexible, easily satisfies demand since constantly it studies. The direction of production would be more difficult to be changed, and it is much easier to redirect realization of already made goods. The percent of the income from resale on the average makes from 20 to 30% whereas in production it is considered satisfactory an indicator of 10-12%.
Risks in commercial business are the highest one. At the conclusion of contracts, transactions it is important to consider all possible nuances: situation in the market, a course of used currency, a rate of the customs duties, cost of delivery and so on – all this defines percent of profit on trade.
Trade can be: the branch; wholesale and retail; external and internal (import, export); goods of long using, etc. Commercial interaction of suppliers and buyers of goods is most widespread. Auctions, commodity exchanges, fairs are the main points of wholesale trade.
There are also business subspecies, such as the following:
Innovative business activity
This is creation and commercial using inventions of technical and technological type. This is venture (risk) business financing scientific probes, advance and adaptation of innovations and opening, experimental production. The segment of small business, in our opinion, is optimum for conducting innovative business since in its conditions it is easier to maneuver.
Farming (country economy) is one of the forms of small business most widespread now in Kazakhstan.
Farming is a family – labor association of persons which uses farmlands in the activity and makes agriculture production, and also carries out its processing and realization.
Farmers are the individuals doing the business without education of legal person.
Experience shows that the most profitable are farms with narrow specialization, and also in what advanced technologies and modern methods of the organization of working process are widely applied.