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Education and examples of Business and business system

Updated on September 15, 2014

Business is a system that generates money

Business is a system. Business is something different from its original word meaning. It is not only to be busy. There is a well said proverb “busy without business”. Business basically means an activity or set of activities that generates money through transactions. A system is required to carry out these sets of activities.

Traditionally business means exchange of products with money. Services are included in modern terms within products. In general, sell or purchases of any goods or services are called business. Modern businesses are running in a complex situation. A strong and efficient system is required to handle this complexity.

Business adds value to products. It creates utilities for the consumers according to economists.

However, meaning of business has changed in modern days. Businesses engage, motivate and manage people for earning money. Despite manufacturing, sell, purchase and marketing; it is not a business if it does not engage other people to work for the business owner. Business is to let other people work for you.

If one involves him or herself in manufacturing, sell, purchase, marketing of goods and services and does not put or engage people to work for them, it is self employment. Self employment is different from business.

Robert Kiyosaki

Robert Kiyosaki, author of Cash flow quadrant
Robert Kiyosaki, author of Cash flow quadrant | Source

Business is one of the four categories for earning money

Robert Kiosaki is writer of Rich dad Poor dad, a bestseller. He wrote another book Cash flow quadrant describing finer details of financial intelligence. "Cash flow quadrant” describes four categories of people who earn money.

These four categories are as follows.

1. Employee

2. Self employed

3. Businessperson

4. Investor

Employees work for other people and get wages or salary in return. Employees engage themselves in blue collar, Green Collar and white collar jobs. They earn fix salaries, bonus, other facilities and retirement benefits according to nature of their work and terms and conditions of their employment.

Self employed people have their own establishments and work themselves independently. They got remuneration directly from their clients. Doctors, lawyers, bankers, chartered accountants, shop keepers etc are examples of self employed people. They are either professionals or have small or home businesses engaging no other people.

Business persons plan and execute business activities engaging and managing other people, normally the employees. Sometimes they engage self employed people such as lawyer, consultants, chartered accountants etc to work for their businesses. They also join hands with other businesses to grow or expand their businesses. They earn profit from their businesses and grab lion's share of total margin.

Business needs money as well. Investors supply money to run their businesses. Investors are those who put their money to work for them.


How system can help your business

Business system and sub-systems

Ideal business person need not to work to run their businesses. What they do? They make system. It is the system that works for them. They work to build a system and let the system work for them. It is just like computer software. Programmers prepare software and the software works. Programmer need not to work.

For an example. Google has created a software program to search web pages and put it into their system. Any one searching for a web page or website for particular keywords goes to Google search program and submit query. Google search engine automatically process the query and brings results. Google has not to work to search the web pages but the search engine (A System) searches for Google and Google earn revenue from Adsense and so on.

Hubpages is another example of building a business system that provides publishers opportunity to write and put their contents into their system. The publishers fall into Self-employed category. They write contents, publish in Hubpages platform and earn through Adsense, Kontera, E-bay or Amazon. Publishers have to work not the Hubpages to earn money.

If you want to earn money publishing your contents, Hub pages is an excellent place.

Business persons build an overall system for their businesses with a set of sub-systems. There are long trails of sub-systems such as sell, purchase, marketing, manufacturing, personnel, legal, taxation and so on.

Business persons employ managers to look after those systems and sub-systems that they have built. There are white collar and blue collar employees depending upon the nature of the businesses. A new sector of green collar employees is recently introduced. Employees work under their managers to produce financial results.

Business persons look for investors who invest money for their businesses. Investors get shares of profit or interest on their invested amount. Generally, in modern system, banks and financial institutes work as investors. Investments are dependent upon business credit of the business. It is not dependent upon personal credit. Investors invest on systems and not on persons. Better the system better the opportunity to get investments.

Businesses can be small or big. These may be proprietorship, partnerships or limited liabilities companies (LLC) or corporations.

Business system complexity

How to start micro nusiness- Plan

Business plan example- Micro-business
Business plan example- Micro-business | Source

Business and business system quiz

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How to proceed to start business?

I have described business in brief. You may consult experts or read more about business and its system. What to do next? Do you want to start your own business?

If yes, decide your goal and start planning for building your business system. Plan it well. Try to include every possible details you need to build a business system. Start with a mission statement. Do something to build your business system. Check it for its suitability to your business goals. Act upon it seriously and sincerely.

Remember, better the plan and execution better will be the system. Better system will make your business better and earn money for you. Looking for more ideas and tips? Read this useful hub.

How to start business ?

Small business system

Business and job poll

What do you look for your livelihood?

See results


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    • JYOTI KOTHARI profile image

      Jyoti Kothari 2 years ago from Jaipur

      Hi Sarabjeet Sachar,

      Thanks for commenting.

    • Sarabjeet Sachar profile image

      Sarabjeet Sachar 2 years ago from India

      A very 'informative' and 'thought provoking' piece Mr.Kothari. Thanks

    • JYOTI KOTHARI profile image

      Jyoti Kothari 3 years ago from Jaipur

      I have edited this hub today for better readability. I believe, you will enjoy this.

    • multifunctions profile image

      Sanjay Sapre 3 years ago from India

      nice hub and excellent links for further information.

      jyoti ji superb creation

    • profile image

      Samuel 4 years ago

      This hub informs about business. It is radical. Opposite to popular idea this article describes business as a system. It will help to new entrepreneurs as well as established businessmen.

      Thumbs up!

    • JYOTI KOTHARI profile image

      Jyoti Kothari 7 years ago from Jaipur

      Hi Jowhar,

      Thanks for your comment. Basic rules are similar in all states of India. However, it varies slightly from state to state.

      Please consult your lawyer for state specific information.

      Jyoti Kothari

    • profile image

      jowhar 7 years ago

      hello sir, i wana knw abuot the legal procedures to start a business in chennai.. i heard that there have a different procedure.

      according to state wise in india rules & regulations will change?

      please guide me sir

    • JYOTI KOTHARI profile image

      Jyoti Kothari 7 years ago from Jaipur

      Hi Inkerror,

      Thanks for visiting and commenting on this hub.

      Jyoti Kothari

    • inkerror profile image

      inkerror 7 years ago from chennai

    • inkerror profile image

      inkerror 7 years ago from chennai

      "They work to build a system and let the system work for them"

      Nice thought...

    • JYOTI KOTHARI profile image

      Jyoti Kothari 7 years ago from Jaipur

      Hi Garima,

      Thanks for your comments. Formal education system does not help in real education, that is why one has to look around for real education and acquiring knowledge.

      Anyway you are a young one and have plenty of time to learn.

      I wish you success in your life.


      Jyoti Kothari

    • Garima Bothra profile image

      Garima Bothra 7 years ago from Jaipur, India

      Though I am a student of CA, I never thought of this type of definition of business.

      While studying we just get definitions those are obsolete nowadays.

      Thanks for nice descriptions.

      Thumbs up!

    • JYOTI KOTHARI profile image

      Jyoti Kothari 7 years ago from Jaipur

      Hi Praveen,

      Thanks for your comment. It is always better to know about business and business system.

      It helps developing business a lot.

      Jyoti Kothari

    • profile image

      Praveen 7 years ago

      Hi Jyoti,

      I could come to know business as a system by reading this hub. Previously I was of an opinion that business is transactions.

      Thanks for a extremely informative article.

      Thumbs up!

    • JYOTI KOTHARI profile image

      Jyoti Kothari 7 years ago from Jaipur

      Hi Sunny,

      Many people think like you. This is a common phenomenon. However, a system is what runs the business. It is little difficult to conceive it. However, it pays a lot if you can really understand the system.


      Jyoti Kothari

    • profile image

      Sunny, 7 years ago

      I can not understand what is a system? I know business is earning money, that's all.

    • JYOTI KOTHARI profile image

      Jyoti Kothari 7 years ago from Jaipur

      Hi Suraj,

      Thanks for your comments and compliments. How is your business going on?

      What do you think about your system after reading this hub?

      Jyoti Kothari

    • andromida profile image

      syras mamun 7 years ago

      You have very clearly categorized and defined the business-very informative hub.thanks for sharing.

    • profile image

      Suraj 7 years ago

      A great Hub....thanks jyoti ji....................

    • JYOTI KOTHARI profile image

      Jyoti Kothari 7 years ago from Jaipur

      Hi HP,

      Thanks for your continual support. Your comments are valuable to me.

      Definition of business here is different from traditional definitions. here business is a system.


      Jyoti Kothari

    • H P Roychoudhury profile image

      H P Roychoudhury 7 years ago from Guwahati, India

      hi Kothari,

      It is nice to know the different types of Business.