A successful entrepreneur needs not only
to produce goods or services, but has to be
able to sell them. The activities aimed at
selling products and services successfully
on the market are known as marketing.
Marketing is a very well developed subject
taught at schools and colleges and in many
training courses. It involves many issues,
such as how to carry out a market survey,
advertising, business negotiation, communication
with customers, planning and assessing sales,
etc. Marketing is an important part of any
successful business.
Another necessary part of running a
business is bookkeeping and paying
taxes and health or social insurance.
It is an obligation required by law and a
failure to comply with the regulations leads
to considerable penalties or fines. Bookkeeping
in a business is usually done by accountants
employed by the company, or by hired accounting
services.
The entrepreneur must of course observe
all other laws and regulations concerning
business, trade and related activities. These
are primarily embedded in the Civil Code,
Trade Code, Trade Licence Law and also the
Criminal Code. If the business has employees,
the Labour Code needs to be added as well.
Having employees of course involves additional
activities, such as personnel and salary agendas,
payment of salaries or wages, payment
of health and social insurance (not for oneself
only, but for the employees).
Another important area is dealing with
a bank. Most businesses use banking services.
One of the basic services is keeping the so-called
current account, which can be opened
in a bank by any business owner or trader.
Payments from customers are received in this
account and payment orders issued by the business
owner from the same account. Thus it is not
necessary to handle cash, and multiple payments
can also be made simultaneously. Money is
transferred from one account to another, both
sides save time and work involved in filling
in postal money orders or handing over cash,
receipts of payment are generated automatically
which serve as accounting documents. This
so-called cashless procedure involves the
company or trader issuing an invoice
for the service or product delivered and its
price. On the basis of the invoice the customer
(often another trader or company) gives the
payment order to the bank, which then transfers
the stated amount from the customer's to the
company's account.
Another important bank service is providing
loans. Many businesses in the start
up phase require machines and other equipment,
premises or materials or other goods. Not
everyone has enough money for that and it
is often necessary to borrow. Such a loan,
or credit, can be provided by the bank. However,
there are some drawbacks as well. On the one
hand there may be a relatively high interest
rate, on the other hand, you may need
to provide the bank with a certain item of
value as a guarantee, against which
the bank secures the repayment of the loan
(e.g. a house, piece of land, etc.). The owner
of a business can provide this guarantee in
the form of the property purchased with the
credit (a hotel building, plant, etc.). Of
course it also depends on the amount of the
credit.
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