Business in the real world

Moving to e-commerce with home delivery lets a business reach customers nationally without paying for town-centre premises in every city.

A cooperative is a business owned and run by its members for their shared benefit (e.g. the Co-op, John Lewis Partnership employee model). Members typically have an equal vote regardless of investment.

A business plan is a written document setting out a new or existing business's aims, the market it serves, its operations, and its financial forecasts.

Acquiring an existing local business gives the fastest access to a new geographic market — the buyer inherits premises, staff, customers and brand recognition in one step.

A business aim describes a broad goal ("become the UK's leading online clothing retailer"); an objective is a measurable, time-bound target that supports the aim.

One way to balance conflicting demands from shareholders and employees is to link a share of profits to performance-based pay — staff share in rising profits, shareholders accept a smaller dividend.

The main commercial purpose of most private-sector businesses is to make a profit through trading goods or services — revenue must exceed costs over time.

The Big Issue is a well-known UK social enterprise — it sells a magazine through vendors who keep most of the cover price, helping them earn a legitimate income.

An e-commerce business sells through a website (and/or app) rather than from physical premises, removing many traditional location constraints.

Franchisees normally pay an initial up-front fee plus ongoing royalty payments (usually a % of revenue) to the franchisor for continued use of the brand and support.