Requisites of Business Success

Business is legally approved risky economic activities that are carried out on a regular basis with the motive of earning profit through production and distribution of goods or services for customer satisfaction. Although the primary objective of business is to accumulate wealth or earn profit, it has other objectives too. To achieve the objectives it carries business should operate successfully. For the successful operation of business, it is essential to consider many factors, which are commonly known as requisites of business success.

They are as follows.

Requisites of Business Success

Objectives are the guidelines or the goals of

organization that direct its performance behavior. The most important and fundamental essential of a successful business is the establishment of definite and clear objectives; for without purpose no organization can be effective. To avoid failure, both long-range and shout-range objectives should be established. They must be so definite that they can be clearly described and so realistic that they can be achieved.

1. Establishment of objectives:

Planning is concerned with deciding in

advance the course of actions i.e. what is to be done, how it is to be done, when it is to be done and who are to do it. The success of business depends upon the ability of organization to perform its activities as per plans. So proper planning is essential for the success of the business.

2. Proper planning:

Business in inappropriate location cannot

attract sufficient customers so the selection of proper location is the essential for attracting large numbers of customers which determines the success of any business. Similarly, Layout means planting the business in such a way that production & distribution work can be carried out with efficiency and true manner. It helps in determination of proper size of business.

3. Proper location, layout and size of business:

Organizational structure means allocation or

distribution of authority and responsibility among various job posts within the organization. It determines the relationships among various employees working in the organization. When authority and responsibilities are distributed in appropriate manner and there is sound relationship among the employees. planning can be implemented in effective and efficient manner and business successes.

4. Sound organizational Structure:

Finance is the life blood of any

organization. Without sufficient funds business cannot produce or purchase sufficient goods or services neither it can operate its activities. For the success of any business, Source of capital must be properly taken into consideration & it must be flexible.

5. Adequate finance:

Marketing includes the set of activities that are

concerned with acquisition of customer related information form market, and production and distribution of goods or services with the intention of satisfying them.

Efficient marketing system of organization gives information about the customers' needs, wants and problems and techniques for satisfying their needs, wants, and problems. Therefore, marketing is essential for the success of any business.

6. Efficient Marketing System:

All business plans and policies are

executed by employees. The success of any business largely depends upon the ability and willingness of employees to perform organizational activities. When employees are motivated and skilled they can perform the organizational activities effectively and efficiently.

7. Motivated and skilled Employees:

Management is the set of organizational

activities- panning, decision making, organizing, controlling, leading, directing, communicating etc, directed at organizational resources- human, financial, physical, and information resources, with the aim of achieving organizational goals in an effective and efficient manner. More sound the management more the success of business.

8. Sound Management: