Hi I think you should avoid suggestions that one business approach might be best or faulted when taken across all of business. The fact is that every system has faults but the ‘best’ has always to be the one where any faults can be identified and fixed and where the fraudulent practitioners can be brought to book. My take on that is that capitalism is the only approach that has provided such a system over time. Even when things go wrong (as with banks today across the world and here in the UK particularly) the system allows for corrective action. That is the key.
I personally believe that the fundamental purpose of a business is that it employs people. In the case of a very small business like a sole trader this might simply be a business that manages to support the owner and his/her family. This implies that the business can generate sufficient ‘added value’ to pay a satisfactory income to the family after deduction for: Purchase of materials/goods for resale Rental and other maintenance costs on premises Delivery and other transportation costs Research and Development for the future Advertising Employees’ salaries, pensions, perks etc Taxation on the business of all kinds Any other extraordinary costs. The same applies to a larger business. Sometimes it may be necessary to borrow money in order that one might be able to build and grow the business. In such a case a further cost must be that of the needed bank facility (and their interest charge becomes an added business expense). Sometimes the money cannot be provided economically by a bank and it might be sensible to go to the stock market which provides a mechanism by which others may support a financial investment in the business in return for part ownership. Such people (just like the banks) expect to receive ‘interest’ which of course is a dividend on their investment. It is often said that the success of a (larger) business is the extent of the dividend that it pays to its shareholders. That is one measure of course, but the REAL measure for me is the number of persons whose lives are being supported by the business. Now, it would be wrong to rely on such a measure alone because if that was what applied to all then some businesses would not be deemed feasible. I think that the best measure is the number of persons who are being directly supported by the business (ie employees) divided by the turnover. That shows the extent to which the business is contributing to the nation’s well being. Others will disagree but to adopt the above argument makes for some excellent discussion. Sundial businesses are not really good ones to study since few people actually make a living from such things. They may well (as I do) design dials as a side line but I would never be able to make a family business from them... I wish your son well. Regards Patrick Now, the mechanism by which a business works is that it PersonallyA successful business is one where Now to answer your question! Judging a sundial business From: Alison Shields Sent: Wednesday, July 04, 2012 4:14 PM To: [email protected] Subject: The most 'successful' sundial business - now, or in the past ? Dear "Sundial Mailing List" Members, It might be a very unusual question - but I would like opinions on who (or what) the most 'successful' sundial business is, or has been, in the past. The reason I ask, is that my son will be doing an 'A-level' school project next term - and has chosen a subject of "what actually determines a really successful business", which I understand could be interpreted in many ways depending on the 'points of view' of the business itself or its customers. For example - it could be based on the 'volume' of sales, monetary 'value' of sales, whether they are international, the types of goods/services they provide, level of repeat orders/referrals, plus many other things as well. I fully appreciate that there are a lot of sundial businesses out there in the world, and each one will operate in their own unique way (depending on their choice of 'customer-base', materials used, target market, etc) - but I would welcome any comments, on what exactly makes a successful business. I set no 'criteria' on what makes a really successful business - but there have obviously been previous (and current) businesses, such as "Pilkington and Gibbs" or "David Harber Sundials". Apologies, if I cannot mention you all - but it is partly the reason for asking your opinions on the subject, because I want to get objective and 'un-biased' details from many sources. With my thanks, in advance, for any/all comments received in reply to this request - but there is no hurry, so take time to think, before responding. Once I have a few 'nominations', then I will intend to contact the various businesses directly - to gather some additional information, as necessary. Obviously, if any business is no longer trading - then please give me your reasons why, (because 'negative' information would still be valid for me). Yours sincerely, Alison Shields. -- --------------------------------------------------- https://lists.uni-koeln.de/mailman/listinfo/sundial
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