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A business involves a natural person or entity performing an activity or trade with the intent of making a profit. The activity or trade may be commercial, industrial, professional, or otherwise. A business commonly involves providing goods or services for the public while operating at a profit.

Nonetheless, making a profit is not the only criterion to establish the existence of a business. Non-profit organizations may also undertake a business without the intention of making a profit. Instead, they may pursue a charitable or social purpose or any other type of organizational mission.

The development of any business may require preparing a business plan that contemplates some or all of the following aspects:

  • The name of the business.
  • The business’ concept and the goods or services that will be offered.
  • A market analysis and the strategy for positioning the offered product.
  • The business goals and objectives.
  • The legal structure for the business.
  • Tax planning and financial projections.
  • Marketing and sales plan.
  • The organizational structure of the business.

[Last updated in July of 2021 by the Wex Definitions Team]