Types of Businesses

Business can be defined as the pursuit of action for the attainment of objectives, with a view to achieving some result, such as increased income, knowledge, money, and other things. A business may be local or national; large or small; public or private; and personal or private. For the most part, a business exists to make money. Therefore, when planning on starting a business, you should also plan on making the money.


Many businesses are run by one person who carries out all the work in order to deliver value to the company. This can be a sole proprietor, partnership, or corporation. Sole proprietorships, especially, are not without their problems; they require extensive planning in order to be successful and, if need be, exit once the business becomes profitable. In a partnership, partners share in the profits while owners retain control.

The majority of companies are started as a business and turn around and become a corporation, or, in the case of sole proprietorship, the business turns over the day that it ceases operation. Most sole proprietor businesses start out by selling products and distributing goods to the public for profit. Over time, they expand, buy more goods, increase production, and deliver more goods to the public in order to achieve a higher level of success, and, as a result, they grow their profits until they are able to retire.