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]