Business Summarized

“Business” comes from the root word “busy”, and represents all the things you normally would do to make money that do not involve a specialized, in-demand skill.

Every person who freelances, even slightly, is engaging in business skills, to some degree.

  • However, many of those domains are an entire discipline of their own.
  • In the course of their work, an entrepreneur will perform all the skills in some capacity.

While the only constant in business is change, the abstractions always express the same way.

Core Components

Marketing is conveying value, which applies influence to make people psychologically bias to want your product (which also often requires sales).

Accounting is keeping track of value, starting with assets and liabilities and inferring financial value from it (often for taxes).

Legal tracks whether the activities comply with a region’s rules.

Eventual Needs

IT keeps the computers running, which is inevitable if the business ever needs any degree of automation.

Management is directing people to do things and manage projects, which comes once an organization surpasses about 3-4 people.

Logistics needs require drivers and dispatchers.

Larger-Scale Needs

Human Resources (HR) manages a wide variety of miscellaneous tasks loosely connected to risk management and employee retention, since they can become time-intensive once an organization grows very large:

  • Data entry and submission for payroll.
  • Manage distributions to retirement plans.
  • Resolving employee disputes.
  • Running background checks for possible hires.
  • Managing the processes for new hires (onboarding) and terminations (offboarding), including ergonomic/ADA issues.
  • Serving as a loss control manager to prevent and manage insurance claims (especially regarding workers’ comp insurance).
  • Archiving employee records and performance reviews.
  • Managing organization-wide activities.
  • Managing various other employee benefits (paid time off, company vehicles, etc.).
  • Conducting periodic audits about the balance of power and responsibilities in an organization.

Public Relations (PR) directly manages the public reputation of the organization, and serves to conform the organization’s appearance to offset scandalous events.