STORY OF CONVESIONAL BUSINESS

Hai, today i am going to share with you about convesional business. This type of business is the common way of doing business which is opening up a shop and run it.

Let say you have a shop and sell things and get money. Nowadays you need to have liecense to run a shop. Sometimes you need more than just one liecense. The problem of runing a conventional business is you need a big capital even before ypu get started on business. Then you need supply of goods that you are selling, you also need to bear in mind trensportation cost and other cost too.

The challange of doing a conventional business is that you need to find workers and you need to deal with all sort of things before you can actually gain profit.
But, today you can make selling and buy even easier through electronic sales. Cost of renting a shop, electricty bills, water bills can be cut off. Ypu even get more effiecent with no work force needed.

Example of conventional business is Seven Eleven, Bakery and etc. As for short, conventional business is based on display selling product. Ypu need to use your capital to display product and customer will buy after viewing. Either way conventional business, e-business, multilevel business and etc are all the same in view beacause all lead to profit margin. But there a difference to the way that selling is done.

EQUITY , LIABILTY , ASSET

EQUITY
For our basic knowledge, equity is things that we own or brought for our daily use. Example house, cars, handphone that can be sold back in order to get cash. Stock and bonds in a large amount are also considered as equity. Gold, silver and gems are also equity because they can be sold (liquidify) into cash inorder to gain profit. Thus not all gold is an equity, only the ones that are being kept in banks are call equity. It is important to bear in mind that everthing that is able to be turn cash is equity.

LAIBILTY
We as general people with no basics in business should no what is liabilty. It is crutial to differentiate between liablity and asset. When we know to differ between these two, we are able to think the business mind fundamantle. Henece we can save money and generate incom at the same time. Example of a laiblity is a car, house and furniture. Thing that do not generate income is considered as a liabilty, for instance a shop generate income but it is a liabilty. Unless you rent part of the shop then it will be considered as an asset.

ASSET
What is asset? Well house and cars can be an asset, inorder to do this you must rent your house. So, you generate income from renting your house. The hosue that you rent will then be an asset. Same go to cars, people whom has car rental company is using cars as their asset to generate income.


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