Business Service, Business Merchandise, and Business Manufacturing. What is Your Business Trade?

If you are looking to start a business, you need to create a business plan, and define your type of business. Having a business plan will allow you to set goals and defining your business will give you a better understanding of your goals and how to meet them. There are also other benefits to creating a business plan; for example, if you are going to pursue small business loans you will require to have a business plan and have one or more years in business.

The three types of business are: a service business, a merchandising business, and a manufacturing business.

Service Business

This type of business provides services to its customers; but to be more specific,it could be defined as selling your time, or also known as labor business. These type of businesses provide services to private and commercial clients. A few examples of service businesses are: accounting firms, physical therapy offices, handyman companies, a mechanic shop, etc.

Merchandise Business

This type of business sells physical goods or products to its customers, and the most common types of merchandise businesses are department stores, grocery stores, dealerships, etc. There are also two subcategories under this classification, because a merchandise business can be either a wholesale business or a retail business.

The difference between wholesale and retail is that wholesalers buy directly from manufacturers and then they sell the merchandise to retailers, and the retailers buy from wholesalers (sometimes directly from the manufacturing company) and sell to their customers.

Manufacturing Business

A manufacturing business is in charge of producing the physical goods that they sell to wholesalers or retailers, and sometimes directly to the consumer. Manufacturing companies could be makers of clothing, automobile manufacturers, and other types of factories that involve production.

Manufacturing businesses in the United States are not as common anymore thanks to the outsourcing opportunities that opened up with the NAFTA treaty, but they are needed in order to boost the economy.


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