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4.13. Read the text actively and discuss the following questions. Work in pairs.

  1. What is the advantage of creating a team?

  2. What are the five signs of unproductive teamworking that the text mentions?

  3. Discuss the measures to be taken before you get the most out of a team.

4.14. Read Text 4 c to understand its main ideas.

Make use of the vocabulary.

put together v – составлять

sound decision-making – правильно принятое решение

communication tool – средство общения

run business v – руководить, управлять; вести (дело,

предприятие и т.п.)

risk assessment – оценка риска

persistence n – настойчивость, стойкость, упорство

expertise n – знание дела; квалификация, компетентность

track record – послужной список, достижения

(в какой-л. области)

financials n – финансовые документы

balance sheet – бухгалтерский баланс

income statement – декларация о доходах

cash flow statement – баланс оборотных средств

Text 4c General Business Planning What Is a Business Plan?

A business plan is a design of your company, presented in standard business format that is logical and well documented. A good business plan is also:

  • A strategic vision of your company

  • Your most important communication tool

  • A document to obtain working capital and/or investments

  • A tool for planning, measuring and improving performance

  • A basis for sound decision-making

  • A way to motivate employees

Why is a Business Plan important?

The success of your business depends largely upon the decisions you make. A business plan distributes resources and measures the results of your actions, helping you set realistic goals and make decisions.

Lack of planning doesn’t allow making future decisions and actions you must take to run your business successfully.

The business planning process

  • Identify your vision. What is your vision for the future? Use your imagination to plan the future you want. Is it to develop a revolutionary new product or is it to help others gain their peak potential. Perhaps it’s as simple as gaining financial independence. Once you have defined your vision, develop a plan and set goals and objectives. Identify the different ways you can reach your goals and objectives.

  • Seek agreement. Whether you are starting a business or expending one, hard work is involved. Resolve any differences with your partners or colleagues before you begin writing the business plan.

  • SWOTs & MECAs are business tools, which will help you determine whether or not your business idea works in the “real” world. A SWOT analysis is simply an analysis of both your and your business’s strengths, weaknesses, opportunities, and threats.

A SWOT analysis contains four steps:

S

Identify strengths. What are your strengths? Consider: ability and potential, persistence, confidence, imagination, sales ability, track record, financial stability, expertise, and others.

W

Identify weaknesses. What are your weaknesses? Consider: lack of time, health, financial instability, no management experience, don’t enjoy working with the public, and others.

O

Identify opportunities. What opportunities exist for you? Consider: work in related field, business development assistance, and others.

T

Identify threats. What threats exist for you? Consider: financial crisis, loss of job, etc.

Oftentimes, to determine your business’s strengths, weaknesses, opportunities, and threats, you must gather information from outside of your business. This is where a MECA (Market, Environmental, and Competitive Assessment) is used.

A well-research MECA will provide you with better information for your business’s SWOT analysis while, at the same time, providing you with valuable data for developing your strategic plan. MECA is a “bigger picture” analysis. It helps looking for trends, opportunities, etc. related to the market, environmental issues, and the competition.

  • Make some “assumptions”. Although it is impossible to predict the future, it is important to make some assumptions related to your business’s future performance. This is the only way that you will be able to convince others to become involved in your business – especially if you are asking for capital.

  • Develop operating plans. Include key risk assessment. What happens if? How will you reach those goals? What do you need to produce or sell? How much? At what price? Who are your clients? Where are they? How do you reach them? How much competition do you have, and how will you compete successfully?

  • Develop financials. Financials include balance sheet, income statement, and cash flow statement.

  • When the cycle begins again. Constantly revise your business plan to see how your business is performing. A good rule is to work on specific goals and objectives within your business plan on a weekly basis and revisit the entire plan once a month. On a yearly basis, you can see if your business is performing the way you want it to.