Conventional Business: Definition, Advantages, and Examples

Conventional business is a way of selling directly. The sellers will meet face to face with buyers to make transactions. 

Starting from the place of business to the promotion step is quite different from an online business. 

In other words, conventional business is a way of selling with the old version of the traditional alias. 

Want to know what are the advantages and disadvantages of conventional business? Come on, see the article below for more details!

Definition of Conventional Business

Conventional business is a business that is a business that is still done by many people today. As the name implies, this type of business uses the old or conventional way. 

The sellers will directly interact with their customers when transacting. 

According to Bunjamin, conventional business is buying and selling activities that are carried out directly, face to face, and transaction agreements are made to obtain benefits for both parties. 

In practice, conventional business requires a place of business, employees, to a large enough capital. 

Therefore, this business is abandoned by many people and switch to an online business. 

Even so, conventional business is also still the prima donna for today's society.

In addition to being able to see the goods directly, they are facilitated to make offers. 

Conventional Business Advantage 

The advantage of conventional business are as follows:

1. Can see directly the products you want

One of the advantages of a conventional business is that customers can easily see the products they want. 

This is certainly a plus point compared to online businesses that can only see products from pictures.

2. Meet buyers and sellers

Furthermore, with conventional business, buyers can meet directly with sellers. 

They can certainly ask satisfied about the product they want. In addition, there are also some conventional businesses that are still negotiable.

3. Amount of stock

Furthermore, the advantage of conventional business is a lot of stock. If you make a direct purchase, of course you can directly choose the product you want and don't have to worry if the stock runs out. 

This is because conventional businesses have warehouse to store stock inventory. 

Disadvantages of Conventional Business

1. Business capital 

The first thing that a conventional business lacks is capital. Of course, this will be felt by businessmen. 

Capital to build a conventional business is not small and is relatively large at the beginning.

This is because a lot of money must be spent on business locations, employees, and much more. 

2. Time and how it works 

For business people who have many activities, conventional business is not suitable. 

This is because you have to be smart in dividing your time and how you work. Therefore, an online business is perfect for those of you who are busy. 

However, if you just want to focus on your business, a conventional business will be just fine. 

Difference between conventional business & online business

The difference between online businesses and conventional businesses are as follows:

1. Business location 

The obvious difference is the location of the business. As the name implies, an online business does not need to have a location or place of business. 

Business people only need the internet to develop their business. The locations for this business are websites, social media, and others. 

Meanwhile, conventional business is a business that requires a place to sell.

The locations that can be used are shops, shop houses, or stands. All of them are useful for offering products or services to consumers.

2. Capital 

Next is in terms of capital. It can be seen that an online business does not need a place to sell. 

That is why business that are run online are quite cheap in terms of capital.

While conventional business is a business that requires a large amount of capital at the beginning. 

This is because it will be allocated to pay for the rent of a place, such as a shop or shop. 

3. Procedure 

The next difference is the procedure. That is, planning such as work schedules, store operating hours, and much more.

If you have an online business, then it is very flexible. 

However, if you have a conventional business, then this must be considered carefully. 

Because conventional businesses will meet customers directly to transact. 

4. Promotion method 

The last difference is in terms of promotion methods. Although conventional businesses usually only use promotions such as brochures or word of mouth. 

However, in this era of advanced technology, conventional businesses can also use social media to promote.

Examples of Conventional Business

The example of conventional businesses are as follows:

1. Restaurant business

The restaurant business is one example of a conventional business. This business example is enough to be excellent for people who want to start their business. 

In addition, you can create delicious and varied menus to be a unique selling point compared to competitors.

2. Grocery business 

This one business is also still done by many people, the grocery business. 

This is because grocery stores sell various basic needs and make them popular among the people. 

In practice, there are various types of grocery ranging from small to large-scale stores. 

3. Tutoring business

Next is the tutoring business. Even though a lot has been done online, many people still choose to come directly to the tutoring center. 

One of the reasons is because they can understand the lesson easily.

The above is a brief explanation of what conventional business is, starting from the advantages and disadvantages of conventional business. 

Indeed, conventional business is one way of selling that can be done other than online.