What is the Turn of a Company?

The turn of a company It is a way of referring to the activities or negotiations that it develops, which are can be classified into various categories depending on the purpose and importance within the company.

Although it is divided into 3 different categories, it also manifests itself through activities main and minor, this is a characteristic that never changes with respect to the turn business.

Do you want to know more about the turn of a company? Keep reading this post, where we are going to explain everything you need to know.

Types of business activity

Although there are many ways to categorize business lines, generally according to the economic activity to which they are the company is dedicated, we can say that there are three main lines, which in turn have subcategories derived.

1. Companies within service lines

It differs from other types of turns in that do not extract, process or exploit any kind of wasteThis means that the benefits are obtained through the performance of different actions that are responsible for satisfying certain specific needs of each of its clients.

These services that companies do can be offered to other companies or to individuals without any problem.

2. Commercial line companies

These types of companies are responsible for acquire services or goods that are provided or created by other companies, or business companies, and subsequently place them on the market to make them reach the final consumer.

They are activities that can summarize the process of buying / selling goods and services that we all know, and occurs mainly because factories rarely come into direct contact with the consumers.

Within the production chain it has a key role, which focuses on maintaining a good level of distribution of different goods in available markets. The companies that are managed within the commercial line can be classified as follows:

• Wholesale companies: are those that acquire the merchandise in very large volumes direct from the factory, and then distribute it among interested retail companies.
• Retail company: they are the companies that obtain the products directly from the factory or from wholesale companies, and have the sole objective of selling them to the final consumer.
• Commission companies: they are in charge of making sales of goods or services to the final consumer, however, they differ from retailers by not having property on the products offered, but they are given on consignment, and the profits are obtained by receiving commission from the sales made.

3. Companies within the industrial sector

They are those companies that are dedicated to produce finished or semi-finished with transformation and extraction processesraw material. The goods made in the industrial sector are sold directly to it so that they reach other companies or the final consumer.

The companies that are within this line are in the production chain, the reason is that they are the ones who elaborate the manufactured products and are also responsible for exploiting the necessary materials so that other companies can transform.

Within this line of business, the following subdivisions are established:

• Manufacturing companies: those that are cataloged here take raw materials, and after a transformation process they convert them into finished products. Something that can be developed in two different ways, either by producing these goods for the final consumer or so that other companies can make more elaborate products.
• Agricultural companies: they are oriented to the processing and exploitation of livestock, fishery and agricultural products, which are used to obtain food for human and / or animal consumption.
• Extraction companies: the companies within this subcategory are dedicated to obtaining and exploiting natural resources that are necessary to sustain human activities, they may or may not be renewable renewable.

Organization of a company's business

As we have already mentioned in this post, economic entities They may be involved in more than one business line. If this is the case, it is easy to distinguish between the different activities that you carry out, which we will explain to you below:

Main activity

It is a part of the business of a company that can be considered as the nucleus of the organization in question, which is the main source of income for the company.

Secondary activity

It is a way to obtain profits that are totally complementary to the previous one, differentiating itself by being of an exploratory type. On some occasions, shareholders invest in these types of shares despite the fact that it is often assumed that they will not obtain such good returns.

On the contrary, they seek diversify economic activitiesof the company to give it greater stability over time. This means that if a secondary activity fails, everything else can keep the business going and even growing.

Auxiliary activity

They are extremely necessary activities to maintain at least one of the two production processes that we mentioned above.

Why is it important to know the turns of a company?

As entrepreneurs, it is very important to know well the different turns of a company for several reasons, one of them is the fact that you can have a better knowledge of the sector you want to enter. It is also a good way to stay involved in the day-to-day technological advances that are formed in society.

Secondly, allows dividing core activities that have the objective of converting some actions into auxiliary ones, also being of help for the sales process and promotions of products or services depending on the heading of the company.

In the world there are many companies that are dedicated to the same and different activities, those that manage to be successful are those that use strategies to determine the true business turn. This process should be considered as one more tool in search of a good positioning in the natural and digital market, without neglecting any option.

Undoubtedly, the turn of a company is not a vague concept, but something that must be known from the beginning so that small businesses and entrepreneurships can emerge, having a guide that allows them to set projects and goals.