In this modern business world, you need to know at least the basics of business. Before we go into the methodology of doing a business we need to know what kind of business we are going into. We need to know whether we can make it successful. In today’s context, we either make a business or take a business.

Broad Based Foundation Business(BBF)

Broad based foundation takes time to build a successful company. This type of company uses the lowest possible cost to reach it goal. How pyramids were built? Those days there was no technology to build stronger foundation. The only way to reach the apex was by building a bigger base and tapering with the final block at the top. The bigger the base the longer it takes to reach the top. There is no advertisement cost but the business spreads by popularity. It takes time for your business to get popular. So if you are a really a patient guy you should go into this kind of business.

Example

Food business is a very good example of BBF business. Food is necessary for living. If you start up a food business the likely time you will be successful cannot be known. If the customer feels that your food is not out of the ordinary, he is unlikely to revisit your shop.

Innovate

Roti Prata in the neighbourhood shops can bring in good customer traffic. This is because this meal is very simple to eat. If a shopkeeper makes his roti prata as soft as a wool and fry it only with olive oil, how do you think the customer will react? The only olive oil roti prata shop around the corner. I think the customer will pass a message of a healthy and tastety roti prata to others. By this simple innovation you bring lots of traffic to your shop.

If the customer feels that your food is not out of the ordinary, he is unlikely to revisit your shop.

Stronger Based Foundation (SBF)

By stronger based foundation it is easier to build a company. This type of company uses the highest cost possible to reach its goal. How modern skycrappers are built? These days technology helps to build stronger foundation. The only way to the top is by building a stronger base which enables the skycrapper to stand high. Everyone will know your business from the day of commencement. Though the initial capital cost is exorbitant the business picks up at an instant.

Example

Franchising popular business is an example of SBF business. The modern skycrappers are built with smaller but stronger foundation – piling is stronger. But the height is achieved within a short span of time. By franchising business like Macdonalds and Seven Eleven you are likely to make money in no time. The crucial factor for such business is that the capital outlay is enormous.

So remember the 2 concepts of knowing a business – Make a business or Take a business. It is that simple.