1

Elements of a Business

Goals:

• Develop understanding of the Business Triangle (product, customer, and sales vehicle)
• Develop awareness of the relationship between different elements of business operations (product development, personnel, production/service delivery, marketing, and finance)
• Develop awareness of key business resources (people, material, equipment/facilities, and money)

Skills:

• Students become better able to observe how businesses operate and use this awareness to develop their business concepts.

Overview:

Most students consider a business to be a place to buy a product or obtain a service. Few have considered the many different factors involved in running a successful business. Chapter 1 introduces students to the following business concepts:

An entrepreneur's primary skill is the ability to assemble the people, equipment, and facilities needed to market and deliver a product or service for which there is a demand in the marketplace.

Every business consists of three basic elements: a product or service concept, paying customers, and a sales vehicle (production or service delivery resources).

Class discussions provide students an opportunity to discuss how these concepts apply to local businesses.