Деловой английский / Темы / Setting up a business

Setting up a business.

Definition

Setting up a business (verb) to start a business, or give somebody everything needed to start a business.

Advantages and disadvantages of particular business

Sole trader
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You have total control of your business.	It may be difficult to expand. You may have to sell your possessions if the company goes into debt.

Partnership
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This is a good way of sharing the pressure and work of starting a business.	There is a danger that conflicts of personality could ruin your business.

Private limited company
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The financial risks that you are taking are restricted. You can increase your capital by selling shares.	There is a danger that conflicts of personality could ruin your business.

Business plan checklist

1. Details of the business

Name of business. Type of business (limited company, partnership etc.)

2. Personal details

Relevant work experience

3.Personnel

Number of people / job function

4. Product / service

Description

5. Market

Describe your market. Who are your customers? Is your market growing, static or in decline? Who are the main competitors? What are the advantages of your product or service over the competition?

6. Marketing

What sort of marketing or advertising do you intend to do?

7. Premises / machinery / vehicles

Where do you intend to locate the business and why? What sort and size of premises will you need? What machinery / vehicles do you require?

8. Objectives

What objectives do you have for the business?

Different stages of the business project

• Identify a problem

• Identify the market

• Get the idea of using an airship to transport heavy goods

• Conduct a feasibility study

• Create the company

• Invite private investors to join the project

• Seek investment from major companies

• Construct the assembly plant

Corporate alliances and acquisitions

Types of businesses

Merge of Renault and Volvo

This text about ego of clashes of CEO companies and problem of it. If two companies have a good deal of merge, it can merging. But it’s big problem because views of companies can’t be similar. Examples of merge in this text showed in merge of two drug giants and two car manufacturing companies and one example of good merge. Problem of first example is power-hungry manager of two company, but if we merge, companies can get big profit of this deal: billions of dollars and get better than competitors in this business. Example of two car company, showing that one company restricting other company. It was takeover because one company get only 35% shares. Good example of merging it is Swiss giants Ciba and Sandoz to form Novartis. Much of that success is dependent on the fact that key personnel were ready for retirement.