Five elements that make a business

<p>What defines a business? In [[literature/<a class="litnote tooltip" href="/literature/@kaufman2020">@kaufman2020<span class="tooltiptext">The personal MBA: a world-class business education in a single volume</span></a>|<a class="litnote tooltip" href="/literature/@kaufman2020">@kaufman2020<span class="tooltiptext">The personal MBA: a world-class business education in a single volume</span></a>]], there are 5 things that must exist for <em>something</em> to be defined as a business:</p> <blockquote> <ol> <li>Creates and delivers something of value</li> <li>That other people want or need</li> <li>At a price they are willing to pay</li> <li>In a way that satisfies the customers' needs and expectations</li> <li>So that the business brings <em>enough</em> <strong>Profit</strong> to make it worthwhile for the owners to continue operations</li> </ol> </blockquote> <p>I think it is a very reasonable approach to defining what a business is. </p> <p>Interestingly, it even works for <a class="wikilink" href="/startups/">startups</a> that survive on investment. They are selling <em>themselves</em> (or parts), for a price investors are willing to pay. </p> <p>I wonder how this works out in the case of subsidies, when the state gives money but they don't get anything in return (at least not directly).</p>