How does a business work?

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A company’s business is to make money for its investors and provide employment by selling products or services. Businesses are organized in different ways , depending on the industry they serve as well as their needs at any given time.

Likewise, different departments in a business have specific roles to carry out the operations of that business.

For example, the finance department is responsible for accounting and managing financial resources, while the manufacturing department ensures product quality by controlling production levels.

A business therefore potentially operates in a variety of ways, in particular according to its purpose, its legal status and its mode of governance.

1 The functioning of companies in companies

2 Companies that operate as a Sole Proprietorship

3 Management in running a business

4 Business development

5 Hiring in the operation of a company?


The functioning of companies in companies

In a company (public limited company, limited liability company, professional civil society, etc.), unless you have a status with a single partner (EURL, SASU in particular), it is indeed several partners who have the “ property” of the company. The capital is divided into shares and determines, through the interplay of possessions, the resulting governance.

Depending on the development of the company , there may be several departments with specific functions.

Thus, if a sales department whose mission is to sell products and services generally exists, there may also be a production control department or a department linked to what is called “human resources”. , a department that is most often outsourced for small businesses.


Companies that operate as Sole Proprietorship

The sole proprietorship (or EI) is the case, for example, of the micro-enterprise (eg self-employed). But this point is in fact only a social status. A sole proprietorship, by definition, combines both the assets of its manager and that of its business; The entrepreneur is one with his company and acts on his behalf.

This does not mean that he cannot hire and even develop his company’s activity very strongly over time. He will simply be obliged to have an associated tax declaration. In other words, a sole proprietorship is always liable for income tax (that of its leader), which is not the usual and classic case for a company.


Management in running a business

Observing with indicators the performance of his company , such is the role of the entrepreneur. It is therefore necessary for this to have a full order book, cash and ensure the profitability of the actions carried out.

When publishing the annual accounts at the end of the year, we technically take stock of the financial year by observing the financing of the assets (the balance sheets) and the profitability (by analyzing the income statement).

The latter makes it possible to determine the tax but above all to check that the margins on products, the volume of intermediate consumption and the payroll are in line with the desired objectives, mainly linked to profitability.

Management is a very broad field that develops more and more with the size of the company. The elements mentioned above are all the more scrutinized as the company grows since the result makes it possible to trigger, for example, dividends to shareholders and holders of shares.


business development

Obtaining a bigger market share is essential to the survival of a company in a competitive world.

This involves research and development on products and services, a real marketing strategy and the implementation of communication actions. Often underestimated, business development is the most critical point since without it, a company ends up running to ruin.


Hiring in the operation of a company

The hiring process is the first step in running a business.

Each person or group of people is expected to be hired and go through different assessment criteria before being selected by management – ​​after which their respective fields are discussed so that these employees can perform the duties assigned to them well!

The main task is to generate the profits necessary to sustain growth; this means making sure that all aspects, including finances, run smoothly.

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