Business is an individual or we can call it an organization’s who try to earn a profit by providing products that will satisfy people’s needs. Every business, they have a different kind of products. A product is a good or service with tangible and also intangible that provides benefits. Products and service are the important things which the businesses have to focus on both of them. One of the business organizations is a small business.

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Keywords: Business, Products and Services, Small Business


Bisnis adalah individu atau kita dapat menyebutnya sebagai organisasi yang mencoba mendapatkan keuntungan dengan menyediakan produk yang akan memuaskan kebutuhan orang-orang. Setiap bisnis, mereka memiliki jenis produk yang berbeda. Suatu produk adalah barang atau jasa dengan yang berwujud dan juga tidak berwujud yang memberikan manfaat. Produk dan layanan adalah hal penting yang harus dipusatkan oleh kedua belah pihak. Salah satu organisasi bisnis adalah bisnis kecil.

Kata kunci: Bisnis, Produk dan Layanan, Usaha Kecil


Nowadays, a lot of people especially teenagers may choose to start their own business at their young age. Although they are not in the major of business they keep trying to learn how to create a small business to earn profits. Starting a new business can be exciting, fun and also frightening. There are so many ways that we have to learn about how to create a small business from the first step until the last step such as what product that the owner wants to sell, how to earn more profit, how to operate the business, how to make the advertisement and many more. (Ferrell, Hirt, & Ferrell, 2016)

Small business is an independent organization which means independently owned and operated business. Small business does not employ more than 500 people because the business or company does not need more people to control the business (Ferrell, Hirt, & Ferrell, 2016). To create a small business, the owner has to do every single step in order to avoid some mistakes. In fact, some people may have different ways to create their own businesses such as franchise, service business and others. For example, a person buys a franchise for a restaurant which is Shabu Hachi. By choosing a franchise, the person must follow the requirements as a part of owning a franchise because it is an obligation to have a franchise. The other example is consultant or freelance, since the person has a potential of knowledge and skills. This is the easiest way to start a business because you do not need more money (Marquit, 2016). It is very important for every business owners to know all the basic of learning to create a small business Most of the large businesses began their business from small business and the growth or the development of their business makes the business become a large business. For example, Liane Weintraub whose a local TV reporter and Shannan Swanson whose a trained chef at restaurant have an obsession with label reading and organic ingredients. By started making organic purees for their own babies. They got inspired to share the purees and the brand had carried at Whole Foods which is America’s Healthiest Grocery Store and other chains. Recently, the company earn a lot of profit (Inc.Staff, 2011). So, it makes the business earn more profit than before and need more employees to control and manage the business. (Ferrell, Hirt, ; Ferrell, 2016)

By starting to create a small business, the owner has to be confident to make the business suitable from what the owner wants. To make the business running smoothly, several things are needed such as requirements, regulations, and procedures. Those things are very important in creating a small business and the person who creates the business or we called it as the owner has to be aware of all things. As the owner, responsibility, and risk are in the owner’s hands because the owner is someone who owns the business and leads to operating the business. Every business owner has to be the decision maker and if there is a problem in their business, they have to lend a hand to make a solution to solve the problem because if the problem will not solve it will make the business worst and not suitable from the target of the business. (Ferrell, Hirt, & Ferrell, 2016)

Figure 1: Model of this topic

The first topic is about business planning and in this topic, there will be an explanation of the advantages of making a business plan and the disadvantages of a business plan.

Every new business needs business planning to start or create their business. Business planning is very important for every new business because it encompasses all the goals and strategies to ensure the development of the business and also the growth of the business itself (Ward, 2018). In business planning, the business owner may assume the future’s description. Business planning contains how to manage the business, how to attract the customers and how to deal with suppliers. Business planning is the key for a business for the next several months or even years, it sets the business owner to organize the structure to be more efficient. The plans that we make in business planning will help us to create a business because it will measure business performance. A person who starts their business is called an entrepreneur and entrepreneurship is a process of creating and managing a business to achieve goals or plans. (Berry, 2016)

There are so many reasons why every business needs a business plan, the first one is hiring new people. Creating a business plan for your business needed people who will operate or manage each business plan. These people will help you to run your business growth because the growth will happen from the work of employees. Every person which is people who work there has a different perspective and also information that will help the business. The second one is Helps you to decide the requirement, this reason is very important for business because it helps a lot to run the business smoothly. When the business plans are made, it will tell us whether if we the business need new assets, how many and choose if we need to buy or lease it. The third one is share and explain business objectives with your management team, employees and new hires. To start up a small business, new employees must be trained and explained about their tasks and responsibility. (Berry, 2016)

By starting to create a small business, we need to make a business plan. Making a business plan is very important for the business itself because it has more benefit to start up their business by planning. These are the advantage of making a business plan:

1. Focus and Set Priorities.
Starting to create a small business, we need to focus on every aspect such as the identities, target markets of the business itself and also about their products and services. It helps the business to run smoothly because we have to set every aspect and also set priorities of each business plan to get all the business strategy in the right place. When the business makes a business plan it must be in order to make the priority done and avoid some mistakes that can be happened in every aspect. (Berry, 2016)

2. Managed Cash
In every small business, it is very important for the business to earn profits. To make the business earn more profit needed good business planning that helps the business to go to the higher level. Every small business needs to know how to manage cash because it avoids the business from some problems with cash. In a small business, we have to know what the money used for and we have to calculate all of the things about cash. If the business got a loss, by creating a business plan we can still manage the cash to find the solutions about this problem to keep your business running. (Berry, 2016)

3. Reduce Failure
Failure always happened in every small business, it will disturb the business plan itself and cause a lot of problems. The most important thing to reduce failure or avoid failure is a business plan because if a small business makes a business plan they also think about the risk of each strategy that they choose for their business. So, it helps the business to reduce failure. (Berry , 2016)

1. Unexpected Problems
All business plan that made by the business itself, it does not guarantee your business to be a success. There are some cases that will appear in every business plan and caused some unwanted problems. One of the examples of cases is the business expect the sales will be increased but the reality the sales is lower than the business expected before. There must be problems that make the sales lower or decrease. Therefore, in every business, they must prepare and accept any problems that can decrease or destroy their business plan. (Richards, 2011)

2. Not Involving The Right People
Every business plan, there must be someone who is in charge or someone who will take the responsibility of each aspect or plan. The reason why each aspect or plan is lead by one person because it is impossible for the business to hire or involve a person in all aspects. The most important thing is every person has different characteristics and also skills, therefore the business must involves the right people to make the business running smoothly and avoids some problems. (Richards, 2011)

Small business is very popular in U.S and more than 99 percent all of U.S firms are small businesses such as sole proprietorships, corporations, and franchises (Ferrell, Hirt, ; Ferrell, 2016). Since, the number of small businesses is higher than other firms it helps the economics of U.S. Actually is not only for the U.S country but it can be for every countries that have a lot of small businesses in their country. The first one is developing the area, the more small businesses the more employment. It means creating jobs and It will reduce the number of unemployment, poverty and also crime in the area because there are a lot of people out there who have not got a job at all and do negative things, unimportant things that will not help them to fulfill their needs such as they cannot fulfill their family needs, and others (Harduth, 2018). The second one is small businesses become big business. Most of larger firms or big businesses began their business from small business such as Apple started in Steve Jobs’s garage, Facebook start in Mark Zuckerberg’s dorm room and others. Creating or starting a small business is not easy to make it a different level which is becomes a large business. With all of strategies and methods that they used in their businesses, it gives the evidence that they success to run their business from small business (Hecht, 2014).


1. Retailing and Wholesaling
The meaning of retailing and wholesaling are different, they also have different relationship or link. Retailers create a link or have a relationship between wholesaler and customer, retail happened when the goods of small business sold to consumers in a small quantity. For example, in the shopping center, there must be a lot of independent stores such as a restaurant, boutiques, barbers, hardware stores and others. They will sell their products to the consumers. (Ferrell, Hirt, ; Ferrell, 2016)

2. Services
Service does not produce tangible products and service in small business is very important because it can ultimate consumers. In a small business, service also attracts individuals such as morticians, beauticians, doctors and others where their skills are not required by large firms or large business. (Ferrell, Hirt, ; Ferrell, 2016)

3. Manufacturing
In a small business, unique opportunities of goods are made by manufacturing. For example, there is a chocolate factory in the USA that produces chocolate bars with USA’s style or design. When people purchase this chocolate, they will know that its unique from the USA because of its unique style and design. Sometimes, small business has more benefits than large firms because with a different style of customer needs and wants small business can customize products to satisfy the customer needs and wants. (Ferrell, Hirt, & Ferrell, 2016)

4. High Technology
Nowadays, high technology is very important for every business because with technology it helps the business to run effectively and develop the business to earn more profit. For example, there is a teenager 18 years old who developed a headset gaming and a few years later there are a gaming’s companies who take that teenager to design a headset gaming for that company and to help the business’s product are bought by the consumers. The business product which is a gaming’s laptop with a headset is sold for $1.5 billion. From this example, known for high technology is very important for every business. (Ferrell, Hirt, ; Ferrell, 2016)

Someone who chooses to create a small business has to know the advantage and also the disadvantages, Here are the advantages and also the disadvantages:

A. Advantages of Running a Small business

1. Experience
By choosing a small business, it gives an experience to the person who chooses it because usually small business is owned by a person. So, the owner will find ways and strategies that make small business earn more profit and the owner becomes successful in running a small business. (Fantastic Services, 2018)

2. Lower overhead costs
Nowadays, a lot of people are choosing a small business because creating a small business it does not need more costs but it needs lower costs. Moreover, the owner needs some resources to operate and maintain the small business. Since, a small business does not need more people or more employees. (Pleshette, 2013)

3. Quick to react to changing market conditions
As a small business, it is possible for the owner of a small business is quick to react to changing market conditions because a small business is a very flexible business. Since a small business is a small size the business must be innovative because there are a lot of businesses out there that will compete in this business. The key to competing with other businesses, a small business has to be more creative and different. It means this small business has to be different than the others to be known by others or consumers. (Pleshette, 2013)

B. Disadvantages of Running a Small Business

1. Take on the Risk
Every person who chooses to create a small business or we can call it as the owner, must know the risk of having a small business because all of the risks that the owner faces will be solved by the owner itself. Risk of having a small business can be good things but also bad things. Every small business would get bad risks, but from all the bad risk the owner can be learned and take it as an experience. So, the owner will find another way that wouldn’t give a bad risk. (Dahl, 2011)

2. Investments
Every owner of a small business, investment is the key to create a small business. Sometimes, money is not enough for every business but it must be helped by hard work, and time. As the owner of a small business, it is very important to find better ways if there is a problem. Every small business would face this problem which is investment’s problems. (Fantastic Services, 2018)

3. Doing Things That Are Not Your Job
Since, the business is a small business or small size. The owner of a small business will hire some employees because with lower costs and fewer employees. Some job will be your responsibility to keep or maintain the business itself. This is also a great way to show your team or employees that the boss isn’t afraid to roll up the sleeves, do the dirty work and only order the employees to do their work. (Fantastic Services, 2018)

IV. Conclusion
In conclusion, there are three types of business organizations, but individuals often choose to start a small business because it doesn’t require huge financial capability. Creating a small business has its benefits and drawbacks. An example of the advantage of owning a small business instead of any other type of business organizations is the owners are able to react quickly to the change in market conditions. On the other hand, owning a small business can also be a disadvantage for owners because owners can be forced to do jobs that aren’t his job originally. This is because the number of employees in a small business is limited therefore if one staff is away, it has to be replaced by whoever is still there. As a result, business owners can get stressed mentally. Having a small business doesn’t guarantee high sales and success. The high sales and success relies heavily on the action of the business and its owner. However, in reality a small business is the easiest to run because it has a small target market and doesn’t deal with a lot of stakeholders. From all points that have been mentioned above, it could be suggest that to become a successful entrepreneur who create or start a small business must be focused, organized and detailed. Stay focused is the most important thing to make the small business becomes successful, it helps to achieve the business planning. Organized and detailed are the important things in creating a small business, both of them will help the small business run efficiently and effectively. All the strategies and methods that the owners choose must have detail information such as involving the right people, the financial data of the small business and others. If the data and other formations are not complete and detail, it will ruin the small business (Seabury, 2018).