What Are The 6 Roles Of A Business?

Within the business world, there are many things that it is important for new and established players to remember – a fact that can at times be daunting, especially for those who are new to the business world, or whose business is still in its infancy. 

However, to make things a little easy, modern business can be separated into 6 roles, or functions – all of which are considered to be crucial for not only success in business, but also the smooth running of a company in the meantime. 

But what are these 6 roles, and what importance do they have? 

What Are The 6 Functions Of A Business? 

As mentioned above, there are considered to be 6 roles or functions of a modern company, each concerning a specific facet of the company that need to be kept in line or maintained to achieve success. 

Production 

The first function of a business is focused on production. This might not come as a surprise to most of you, as after all, companies need to actively be producing products, or facilitating services, in order to stay afloat. 

This is considered the foundation of the company, upon which everything else can be organized and arranged, and for proper production to occur, a business owner must expertly manage manpower, money, equipment, locations, and parts – all of which can require time to arrange and get right. 

While in larger companies the production is often outsourced, smaller businesses usually handle matters themselves – or in conjunction with other smaller manufacturing companies – and these relationships (and their functionality) is paramount when it comes to forming a successful business. 

Marketing 

The second function of a business is marketing – and this involves every aspect of the pitching process, right from the time that an item is designed, through to the advertising ideas, and finally to the actual release onto the market. 

This is about selling an idea to the customer, and making them see that the product you are selling is exactly what they need at that moment in time. In many cases, you are not selling the product itself, but rather the feeling they will experience when the product is in their position. 

This could be the feeling of relaxation and comfort from a new armchair, or it could be the self esteem you might feel from a brand new item of clothing. Whatever the item, the marketing is paramount to success. 

This is done via social media, wherein the products can be advertised on the business’s website, and pushed through social media channels to reach as many people as possible.

This might also include employing affiliate marketers – who can use their large followings to attract and influence more custom. 

Finance

The third function of business is financial, and requires the proper circulation of money in multiple ways. This function can be separated into i) investment, ii) good financial decisions, and iii) dividends. 

Solid investments are a cornerstone of growing a business – both in terms of money and success – and can involve anything from investing in new machinery, equipment, new markets, or additional staff. It could also see the company speculating on stock markets and other ventures. 

Making good financial decisions are also paramount for success.

This can mean both short and long term, and involves doing business with reputable suppliers and businesses, appeasing shareholders, setting appropriate prices, and ensuring that the whole business makes sense financially. 

Lastly, the dividend aspect of the finance function requires ensuring the staff are paid, and that shareholders are rewarded for their support of the business throughout – something else that is important for keeping them afloat. 

Human Resources

Of course, companies are run and maintained by working people, and these are more important than any other facet of the business. 

Human resource management means ensuring the highest level of satisfaction, effectiveness, employee motivation, team morale, and all manner of other things pertaining to the continued employment of the workforce. 

This also means dealing with any internal disputes, protecting workers from perceived victimization or persecution, and ensuring that they are protected and safe while under the employ of the company. 

Information

The information function is equally important to the successful running of a modern business, and not only focuses on the collating and categorizing of important information, but also the efficient delivery of that information to those who need it. 

This has obviously been streamlined thanks to modern computing and the internet, and allows companies to ease the delivery of important information without expending too much time and effort. 

However, information also pertains to the way companies read and understand the information taken from sales and customer patterns.

If the business can effectively translate customer buying patterns – i.e. what they want, when they want it etc – then they can make better business decisions, and more calculated business moves in the future. 

Innovation

Last, but by no means least, we have the innovation function – the inspiration and creativity through which a company can do great things and reach great heights. 

This is paramount not only for the creation of new products, and the improvement of existing ones, but also to plot new courses that the company can take. This is important, as a successful business is one that is fluid, and able to change course as the market, and wider society, does the same. 

Of course, there is also a need to create and sustain a solid product – without which there would be no functioning business in the first place. This is why innovation is so important. 

Final Thoughts

And there we have it, everything you need to know about the business world, and what the 6 roles are considered to be therein. 

It is certainly true that, within contemporary business, there have never been so many resources at our disposal – allowing us to become successful in ways that were never possible in the past. 

So if you’re looking to learn more about the 6 roles of business, then be sure to refer to this handy guide. Something tells me you won’t be disappointed!

Frequently Asked Questions

Now that we know a little more about the 6 roles of a business, and what importance they have to the success of the company, it is now time for us to answer some frequently asked questions that you might be interested in.