03 Type Of Small Businesses You Should Identify

You already know that there are thousands of small businesses over the world which belong to various types. we can categorize all those businesses under 03 levels in order to the convenience of our study. Look at below 03 categories of businesses

  • Production of commodities 
  • Production of Services 
  • Reselling commodities and Services

Any kind of small business which exists in the world can be categorized under the 03 sections that I mentioned above. you might be already engaging in business or expecting to start a business .understanding the type of business witch related to your business will give you important benefits.  

Why You Should Understand About The Type Of Your Small Business

  • Understanding the background related to your business
  • Convenient of making a business plan and future financial discussions with third parties 
  • To understand the legal background related to the business

Hence you can study about the 03 main topics 

Production Of Commodities (Goods)

This is the process of making commodities with raw materials .take devices around your room as instances. computer, table, bed, pens, papers and all other things are products witch made from raw materials.

this process of making goods using raw materials can be introduced as the production of Commodities.

There are two main characteristics of commodities .they are tangible and visible. we can touch and see goods. commodity production business can be interpreted as a business which makes new goods using raw materials.

as an example, think about the exercise book that you use to write.it has been made from binding papers with Stapler pins or spiral wires. To make exercise books for wholesales, need specific knowledge and machines.

There are only several PC equipment makers around the world like HP, Samsung, Dell, Gigabyte, AMD. to build such a company needs vast capital and very specific knowledge and team.

most of the time such companies make only a few products from large quantities. but as a small businessman, you can achieve big business targets after formal education and practice.       

Creating Services 

A service is a “process” that offers from service provider to client. It is intangible and invisible. as an example, think about your internet connection.

you can not get a physical thing for the bill that you pay at the end of the month. but your service provider allows you to access the internet.

This is an example of the production of services. banking, attorney service, courier, postal are some other services evolving in businesses currently all over the world.

You must have specific knowledge and practice about the service you supply to the client as a service provider.      

Reselling Of Goods And Services 

The field of business, mainly considers only the production of goods and services. this concept of reselling was added by me for your clear understanding.

reselling of goods and services is meant about the selling goods to the final customer after purchasing them from a whole seller.

this is close to retail businesses. most of the small businessmen are belong to reselling products. some services are also resalable.web hosting and telecommunication services are examples of resalable services.


You may feel while reading this post has some theoretical points than practical scenarios. but this knowledge will use when you read other articles on this blog. study this post well and try to understand the category that your small business belongs to the above three types. if there any matter, mention it in the comment box. I’m ready to make a reply as soon as possible. if you are interested in this article, share it with your friends.    

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