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There are two types of product-based businesses:
• Manufacturing: This kind of business uses raw materials, labour, technology, capital and other resources for the
production of finished goods. It follows a step-by-step approach of putting together raw materials, parts and
components, moving from one workstation to the other with the help of technology, machinery, robots, computers,
and labour.
Finished goods are sold to the wholesalers, who in turn sell them to retailers. The consumers generally purchase
these finished goods from the retailers. Some of the examples of manufacturing businesses are that of food,
beverages, apparels, furniture, mobile phones, laptops, cosmetics and many more.
Let us understand this with the help of a case study given below:
w Precision Engineering Ltd.
Precision Engineering Ltd. specialises in manufacturing precision
components for aerospace and automotive industries. Founded by
a team of engineers with expertise in machining and fabrication, the
company started in a small workshop but quickly gained recognition
for their high-quality products and adherence to industry standards.
They invested in state-of-the-art machinery and continuous
staff training to maintain their competitive edge. By fostering
long-term relationships with key clients and expanding their product range to include customised solutions,
Precision Engineering Ltd. established itself as a trusted manufacturer in a competitive market.
• Trading: This deals with buying and selling a product. In this, the finished products are purchased at wholesale
price and sold to consumers at retail price. The form of the products is not changed but the products are sold at a
little higher price than the purchase price that helps them to earn profits. They also transport the product from the
factory to warehouses. Examples of these businesses include wholesalers, distributors and retail shops.
Service Business
This kind of business provides services in the form of consulting, accounting, hospitality and many more of such types
which can be delivered either physically or in a digital form through the Internet or mobile apps. These services are not
in the physical form which can be touched or stored or bought from the retailers. They are provided by professionals
or experts in such areas. Salon is an example of Service business.
Let us understand this with the help of a case study given below:
CleanTech Solutions
CleanTech Solutions provides eco-friendly cleaning services to residential
and commercial clients. Founded by Anirudh, who was passionate
about sustainability, the business began with a focus on using non-toxic
cleaning products and energy-efficient practices. Through targeted
marketing campaigns and partnerships with environmentally-conscious
businesses, CleanTech Solutions gained traction in the local market. They
expanded their service offerings to include specialised cleaning services
for sensitive environments like hospitals and schools, demonstrating
their commitment to innovation and client satisfaction.
Hybrid
Hybrid business is a mix of two or more different types of businesses. It can be in service or manufacturing or
merchandising or all of these. It does business in the form of goods and services. For example, a restaurant is in
Entrepreneurial Skills-I 125

