Following are the major components (requisites) required for successful business operation:
1. Establishment Of Clear-cut Objectives
Clearly defined objective helps to provide guidelines for future business activities. Long-term and short-term objectives should be established in order to achieve goals.
2. Proper Planning And Clear Policy
Proper planning helps the businessman to decide what to do and how to do different business activities. Correct and clear policy helps to perform work with minimum risk and maximum profit.
3. Sound Organization And Effective Management
This is another essential requisite for business success. Proper organizational structure and quality management helps in planning, coordinating, motivating, directing and decision making. It helps proper utilization of resources and to achieve organizational goals.
4. Dynamic Leadership
Dynamic leadership is another key factor for business success. Leader or manager with vision, courage, foresightedness, and motivating skills is needed to operate business successfully.
5. Pleasant Personality
Manager should be physically and mentally sound to handle business activities smoothly. Manager or businessman with good communication skills, intelligence, experience, and good commanding is needed for business success.
6. Adequate Capital/ Proper Financial Planning
A proper financial planning is needed to arrange adequate long-term and short-term capital to operate business. Suitable source of capital should be identified to run business smoothly.
7. Proper Location And Layout
Proper location and layout helps to reduce production and operation cost and increase efficiency of the business. Suitable location and proper layout helps to maximize profit.
Encouraged and motivated employees play very important role in business. Success or failure of business depends on the morale of employees. Therefore, staffs should be motivated, encouraged, and properly trained to achieve organizational goals and objectives.
9. Modern Technology
Successful business organizations use modern technology to provide new and easy methods in production and distribution. It helps to boost business and earn more profit.
10. Research And Innovation
It is another important requisite of business. Research and innovation helps to satisfy customers by offering better products and services according to their needs, taste, and preference.
11. Efficient Marketing
Customer oriented marketing is necessary in business. It helps to expand business and grow customers.
