When you see around yourself you will see many shops like Books, Footwear and Clothing, Grocery, Jewelry, Beauty Parlor, etc. These are one type of Traditional Business.
Traditional Businesses are those business which you can actually see, enter the shop, carry the goods directly by your hand.
There are number of businesses are evolving present times.
Such as Aggregated Business, E-Commerce Business, Retail Online Shopping, Warehouse businesses, Electronic Securities Transaction Businesses.
These are not called Traditional Businesses as those were not present earlier. As the time passes and new technology comes in these businesses have taken birth.
These were not run traditionally by our ancestors.
In this article we are going to focus on all those traditional businesses which were running by many of our ancestors as their primary source of Income, Meaning of Traditional Business, their types, their characteristics and their relevance in today’s world and what things are required to start the business.
What is Traditional Business?
When we tell about Business, then The Business is the activity which is based on exchange of anything. When we go in the market buys products or services in exchange for Money.
In ancient days there was a Barter System known as Goods (Products) are exchanged for Products only. There was no existence of money.
But when times passes, it is getting tougher to find the right value of any product.
And the meaning of Tradition is that any activity is happening and doing by ancestors and their successors are continuing.
So Traditional Business is such a business activity which is done by ancestors as well as their successors.
This type of business is being sole income source of their Family and most families do the same activity for their living. Hence, this traditional business is also called as Family Business.
Types of Traditional Business
It ranges from Farming to Manufacturing. Then it includes
Trading & Transportation of goods too.
- Trading in Goods
- Grocery Store
- Fast Food Stall (Tea Stall, Chaat Food Center, etc.)
- Transportation and logistics
- Agriculture Production
- Dealing with live Stock (Selling animal breed or its produce)
- Manufacturing home decor and fashion related services like Interior Designer
- Disposable palm or banana leaves plates
- Manufacturing statues of God/Goddess for various festivals
- Stitching and Knitting of Dresses
A traditional businesses done by 61.5% India’s Population (As per census of 2011 Agricultural Census)
Characteristics of Traditional Business
Generally Traditional business are far different from entrepreneurship which needs creativity and innovation. It doesn’t need to adopt new strategies to introduce their products to the consumers.
Here are some characteristics of are as below.
- Business having lower risk
- No requirement of formal certification
- You have no need to build strategies to start or run the business (Beside some exceptions)
- Open market for all (Except some businesses like manufacturing, etc)
- Less or no requirement of specialized knowledge
- Limited to particular area (For most businesses)
- Anyone can engage into these businesses such as housewives, students, working employees.
- Easy to raise capital due to predictable profit can be possible
It needs different strategies to be run only if it has perfect competition with their rivalries.
As the technology is advancing rapidly and it is becoming tougher and unpredictable of business. This situation is not only limited to the businesses but also for the Jobs also which are considered as the safest source of income by most people.
Day by day the Computer Technology changes as well as new excellent machines are introduced by the market which is shaking the world thoroughly.
And estimating that whether these traditional businesses work in future is the very important task as of today.
Where there are people, there are businesses.Quote by Vaibhav Dhotre
According to the above quote, the businesses lies where people present.
The exchange (trade) activity made up of the people, for the People and by the People are called as Business.
So, business will live longer until people are living.
Some businesses will alter the way people were doing and some stays the same as it was.
Let’s take an example,
While you are walking on the street and suddenly your footwear got broke. And you got that it is out of scope to get repaired.
You quickly move towards the footwear shop and buy a pair of shoes or slippers for you.
You will not wait for 3-5 days to get the shoes delivered to your doorstep.
This is the hint that businesses will go continue. It may get slightly technological advancements but businesses will remain intact forever.
Who can do this?
Though Traditional Businesses do not require any special skills and this business can be executed by anyone, but there are some basic skills that are required to run the business successfully.
Those skills are as below.
- Market Survey
- Selling products
- Communication with customers, suppliers
- Some technical skill of today’s timing like accounting and basics of taxation
- Risk analyzing
- Mental Stability, etc.
- Understand the power of outsourcing
- Employees management
- Acceptance of technological advancements
In any business there is no limit of skills, it means whatever skills you possess, will definitely add value in him that leads to business growth.
These are very commons skills possessed by any business person, if you are thinking to start it freshly then no worries, you will start learning many of these when you go into the process of business.
I have tried to write all possible aspect to cover about traditional business. But if by mistake I forgot to write it then please never hesitate to comment that point to write.
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- Link : E-Commerce Business or Traditional Business – Shopaccino