The aim of the commercial-trade business is to sell finished goods purchased from others to the consumer at a higher price and thereby make a profit.
In the commercial and trade business, those entrepreneurs whose activities are related to the sale of so-called consumer durables, such as vehicles and household appliances, take the greatest risk.
The areas of commercial-trade entrepreneurship include:
- stores;
- retail outlets;
- markets;
- stock exchanges;
- trading houses;
- auctions;
- wholesale bases;
- Internet trading sites;
- exhibitions and sales.
Commercial entrepreneurship is characterized primarily by the fact that the determining role here is played by commodity-money and trade-exchange operations. They express the main content of commercial entrepreneurship. The basis of this type of entrepreneurial activity are operations and transactions of buying and selling, i.e. reselling goods and services.
Commercial entrepreneurship is characterized by the fact that its content consists of commodity-money, trade and exchange transactions, i.e. there is a resale. The initial stage of technology is the choice of what to buy, what to resell and where the selling price should be higher than the purchase price, the demand for the intended product must be sufficient. It is necessary to conduct a market research in order to evaluate the market conditions, i.e. what goods, services, work will be in the greatest demand, what are the purchase and sale prices.
The entrepreneur has to develop a concrete plan of action – a marketing plan, which defines the activities of the purchase and sale transaction; calculate the prices of purchase and sale, costs, results; determine funds for advertising, transportation costs, costs for the execution of commercial documents, required personnel, costs for renting premises, forms of sale of goods, purchase of goods, justify the receipt of credit, calculate taxes.
An important aspect of developing a marketing plan is the coordination of deadlines and performers. A thoroughly compiled marketing plan makes it possible to assess the profitability or unprofitability of the deal.