LECTURE #3. Business Operations

1. Business operation: concept, essence, components

There is a concept in business business operations. It means a short-term business, as a result of which the entrepreneur or businessman makes a profit. In other words, business transaction - it's a deal. Such a definition takes place in the Civil Code of the Russian Federation.

A businessman can carry out both one business operation and several operations at the same time. In addition, a businessman can conduct business transactions sequentially, one after another. In any case, a business operation is a separate and independent business that is planned and carried out over a certain period of time.

A business transaction consists of several stages.

A business transaction structure can have the following content:

1) definition of goals and objectives;

2) drawing up a plan;

3) determination of participants, conclusion of contracts;

4) resource provision;

5) production or receipt of products;

6) sales of products and profit.

1. At the first stage - defining the goals and objectives of the business operation - it is necessary to think over the meaning and significance of the operation for the business of the company, to outline the amount of profit desired to be received as a result of the operation.

If a businessman or entrepreneur has sufficient experience in doing business, he has some knowledge of consumer preferences for certain types of products and services. In accordance with consumer demand, a businessman chooses the product that is the most promising in selling it on the markets and making a profit.

In the process of forming the concept of a future operation, a businessman estimates how much of a product he is able to produce or purchase in order to further sell it in the markets. It is necessary to assume and consider all possible options, taking into account the capabilities of the company. Having chosen the most promising option, a businessman should consult with other businessmen and specialists (financiers, economists, accountants, technologists, experts) who will help to conduct a qualified analysis of the company's capabilities to perform this operation. After that, a decision is made to conduct a business operation.

2. Drawing up a business operation plan. Once a decision has been made to carry out a business transaction, a plan of action must be drawn up to be followed during the transaction. The operation plan must contain goals, objectives, financial analysis, comparison of the company's capabilities with the objectives, timing of the operation, expected profit volumes, cost analysis, identification of possible risks and ways to minimize them. The plan must be understandable, reliable, and show the advantages and benefits of its implementation. The plan should include cost estimates for all types of resources needed to carry out a business operation. As a result of the analysis of the company's capabilities, the degree of need for additional financing of the operation from external sources is determined, and possible sources of obtaining finance are outlined.

3. Definition of participants in a business transaction consists in choosing suppliers, attracting the necessary specialists and employees, participants in the market sale of products. Having outlined the participants in the business operation, the businessman brings them information about the planned operation, negotiates with them the conditions for their participation in the operation, and then concludes contracts and agreements. Contracts and agreements can be concluded with all participants in the operation, from investors to buyers. The contract with buyers is the most important and beneficial for the company, as it ensures the sale of products, which indicates a guaranteed profit.

Employment contracts are concluded with employees who are involved in the performance of a certain type of production work.

Contracts are most often concluded on paper, although verbal agreements are not ruled out, which in the conditions of honest business are equated to documented contracts. To avoid risky situations, it is better to enlist a written contract.

4. An important factor for the implementation of a business operation is its resource provision. Resource support includes production and financial resources.

Production resources include the provision of the necessary materials, equipment, raw materials, premises, transport. The production resources include the labor force - employees.

Financial resources are determined by the cash that the firm has. In the event of a lack of own funds, a businessman is forced to resort to finding sources of raising additional funds. In the course of a business operation, the need for new additional resources may arise. These options should be provided by the businessman.

5. Stage of production or receipt of products firm is a key stage of a business operation, during which the development of production activities takes place, the results of which are directly related to the achievement of goals.

Production activities are aimed at manufacturing products and services with their subsequent sale in the markets. A businessman may not be engaged in the production of goods, but in their resale. In this case, production activity will consist in obtaining a product by purchasing goods, transporting and storing it, delivering it to sales markets, creating conditions for its storage and sale at retail outlets, and providing advertising for goods.

Mediation should take into account consumer demand for the product, as well as the solvency of the buyer. In accordance with demand, the proposals of goods and services are considered.

6. Selling products and making a profit are the final step in a business transaction. The results of this stage depend on the quality of all previous stages. If the product is of high quality and in demand, its implementation should take place without any special difficulties. But it is necessary to provide for unforeseen situations that may arise in the process of selling the goods. These include various accidents, disasters, changes in economic policy, competition and other factors that can affect the effectiveness of a business operation.

In the process of selling goods, various changes may occur, which depend on the situation in the sales markets. Prices for goods, outlets, sales volumes can change. Periodic monitoring and regulation of supply channels and channels for the sale of goods should be carried out.

The business transaction ends when all goods are sold. In case of incomplete sale of goods, a balance is formed, which is added to the costs.

The main and main task as a result of a business operation is to make a profit, the volume of which should not only cover all the costs of the operation, but also remain a businessman in the form of net income.

2. Scheme of resource provision of a business operation

The provision of resources is an important condition for conducting a business operation. The resources required to carry out a business operation include natural, labor, production, information and financial resources.

The task of a businessman is to constantly monitor the availability and condition of resources. In the process of planning a business operation, it is necessary to determine the volumes and types of required resources, identify the sources of their receipt, making sure that the resource supply channels are timely and reliable.

The businessman and the buyers are the main participants in the operation. The businessman sells the goods to the buyer, who, in turn, pays for the purchase, provides the businessman with a monetary profit. Cash profit is the financial resources of the firm, with the help of which all costs for the production of goods are reimbursed.

The resource provision scheme includes the following components:

1) cash;

2) fixed assets;

3) labor resources;

4) material resources and working capital;

5) information resources.

The most important issue is to secure the operation with cash. The source of funds (in the first place) is the initial money capital available to a businessman or entrepreneur. If the amount of own funds available to the entrepreneur does not allow the business operation to be carried out properly, there is the possibility of taking a loan. With the help of the initial capital and the provided loan, the start-up capital is formed, which allows the planned operation to be carried out.

Fixed assets are large production equipment in the form of office premises, buildings, equipment, transport, furniture, equipment. These funds, unlike the rest, as a rule, are not used within a single business operation, but for a long time.

In the case when fixed assets are used for one operation, the businessman resorts to renting them. In addition, there is such a thing as leasing. It means a lease with a subsequent purchase.

Basic resources are funded and acquired in advance.

Human Resources are a prerequisite for conducting a business transaction. Labor resources are determined at the very beginning of the operation and have two main sources. One source is the businessman or entrepreneur himself; this means that he primarily takes part in the work of the company. Another source is employees, for whose wages the company's money is spent.

Labor resources are used throughout the entire business operation. A businessman has the ability to control the cost of money for wages.

Current assets are movable material resources that play an important role in the production activities of the company. These include semi-finished products, materials, raw materials. Working capital requires an investment of capital and is acquired from the moment the operation begins until its final stage.

Informational resources are an integral and important component of the resource support of a business operation. These include economic, financial, legal documents, accounting reports, projects. Information resources also require an investment of money throughout the duration of a business operation. Sources of information are both internal, in the form of specialists included in the staff of the company, and external informative information.

In addition to the listed means of resource support for a business operation, such important factors as services are used, which include: transport, legal, advisory, advertising and security agencies, etc. A businessman spends the company's money to pay for various services.

3. Cash settlement of the business transaction

Cash settlement is made in order to determine the amount of funds required to carry out the planned business operation.

The main subject for monetary calculation is the determination of the total amount of costs, which consists of various types of costs.

Expenses are divided into the following types:

1) material;

2) for wages;

3) to receive information;

4) for fixed assets;

5) for services;

6) to pay loans;

7) to pay taxes;

8) additional;

9) permanent;

10) variables.

For material expenses cash includes the cost of obtaining materials, semi-finished products, raw materials, energy. There is a formula by which material costs are calculated. It looks like this:

where Zm - material costs;

Ohm - the volume of materials used;

Cm - the price of a unit of material.

This formula is suitable for calculating one type of material. To calculate various material resources, the following formula is used:

where Ohm1, Ohm2, ... Ohmn is the volume of materials of one type;

Tsm1, Tsm2, ... Tsmn - price of units of various types of materials;

n is the number of different types of materials.

Labor costs include cash costs for remuneration of employees of an entrepreneurial firm, the administration of the firm, employees, support staff of the firm (couriers, security guards, service personnel).

The calculation of the money spent on wages is made taking into account the division of the participants in the operation into permanent employees of the company and temporary workers involved for the duration of the operation. The formula for calculating the cost of funds for the remuneration of a separate group of participants looks like this:

where Zt - labor costs;

Zch - the cost of hourly wages to employees;

Kr - the number of employees;

W - the total time of work of workers.

The total expenditure of funds for the remuneration of all groups of employees is calculated according to the following formula:

where Zt1, Zt2, ... Ztn are the costs of remuneration for various groups of workers.

Information costs are determined by the cost of this volume of information, which is paid from the company's funds.

Fixed asset expenses are calculated taking into account the division of fixed assets into permanent and temporary. Permanent fixed assets are acquired by a firm for long-term use, while temporary fixed assets are acquired for use within a single business transaction.

Permanent fixed assets are calculated as their expense for the period of the operation. To do this, you can use the following formula:

where Zos - the cost of fixed assets;

Tsos - the price of fixed assets;

Vdi - the time of use of fixed assets in the process of this operation;

Voi - the total time of use of fixed assets.

Service costs are calculated depending on the types of services and their cost.

Additional expenses include the cost of transport, training of company employees, staff travel, company promotions, repair of office premises, repair of equipment and machinery and other additional types of costs.

Loan payment costs differ in that costs are the difference between the amount of the loan granted and the amount returned to the lender, including interest.

The calculation formula is as follows:

where Zk - the cost of paying the loan;

Zkp - amount with interest;

M - monthly percentage of the loan;

Vk - loan repayment time.

Tax expenses include the payment of value added tax and income tax.

Fixed costs are expenses that do not depend on the conduct of this business operation. These include the cost of wages, the maintenance of office space, the maintenance and repair of equipment and machinery of the company.

Variable costs depend on the amount of material used. They are calculated by multiplying the volume of goods by the volume of variable costs that per unit of goods.

The total cost of conducting a business transaction is determined by summing up all types of expenses.

Profit volumesobtained as a result of the sale of goods can be determined by multiplying the volume of goods sold by their cost. Gross profit is determined by subtracting total costs from profits. When using this method of calculating gross profit, you need to remember to include income tax in the total costs, the amount of which depends on the volume of profit.

Income Taxes is calculated using the following formula:

where Npr - income tax;

n pr - the percentage rate of tax on profits;

Pv - gross profit.

Profit calculation, which remains with the businessman after paying income tax, is carried out according to the formula:

To determine profit, an indicator such as profitability is used.

Profitability is calculated using the following formula:

where R - profitability;

By - residual profit;

Zo - total costs.

When planning profit, you can use the analytical method of calculation.

The analytical method is based on the basic profitability, determined in several stages:

1) calculation of the basic profitability by dividing the profit by the cost of the goods;

2) calculation of the volume of goods at the cost of the reporting period and the calculation of profit from the sale of goods depending on the basic profitability, i.e. multiplying the cost of the goods by the basic profitability;

3) determination and accounting of factors affecting profit - improving the quality of goods, changes in prices for goods, changes in prices for materials and raw materials, changes in prices for services and other factors.

A business operation is considered to be successfully carried out upon receipt of such an amount of profit, which is 30-50% of the cost of the total costs of the operation.

Authors: Egorova E.N., Loginova E.Yu.

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