Unit 3 how to start your own business

The best reason for starting a business is to earn money, to travel, to get more knowledge of the world, to get business experience or to be independent. If you choose a business based on your special knowledge, skills, experience or interests, your chances of success increase greatly.

There are three ways you can serve consumer needs: making a product (manufacturing), selling a product (wholesaling or retailing) or providing a service.

If you want your business to be developed successfully, you should do enough planning and minimize the risk of failure during the first years of operation. You must estimate costs or money you spend to run the business. There are four types of costs: material costs, labour costs, overheads and your own salary.

Material costs include the money you spend when you buy materials and equipment you need. Labour costs include the money you pay to the people who work for you. Overheads include the money you pay for rent, telephone calls, advertising, traveling and so on. Your own salary is not the maximum money you get from your business. It is the minimum money that is enough for living.

If you want to expand your business you need financing. You can borrow money from a bank. Bank managers will make you a loan if they are sure that your business is a good investment. That’s why you should provide them with your financial statements showing the financial situation in your firm.

If you want to attract customers you should keep in mind that success of your business depends on a good promotional campaign, a convenient location, good selling methods and reasonable prices.

If you want to hire an employee you can use employment agencies, consulting firms and professional societies. You can also advertise in a newspaper or in a magazine.

Language abilities would allow you to communicate more easily and increase the number of business contacts.

Active Vocabulary

оwn - собственный

to earn – зарабатывать

experience – опыт

skill – навык

to choose – выбирать

success – успех

to manufacture – производить

to wholesale – продавать оптом

to retail – продавать в розницу

to provide – обеспечивать

to develop – развивать

failure – неудача

to estimate – оценивать

costs – расходы, издержки

to run the business – управлять бизнесом

material costs – материальные издержки

labour costs – трудовые расходы

overheads – накладные расходы

salary – заработная плата

to expand a business – расширить дело

to borrow from – занимать у

loan – займ

to attract – привлекать

to depend on – зависеть от

promotional campaign – компания по продвижению товара на рынок

convenient location – удобное месторасположение

reasonable price – разумная цена

society –общество, объединение

to advertise – рекламировать

ability – способность

to allow

Tasks

1 Translate the following combinations into Russian.

to start a business

to earn money

to travel around the world

to get more knowledge of the world

to get business experience

to be independent from anybody

to choose a business

to be based on skills and experience

chance of success

to increase greatly

to serve consumer needs

to manufacture a product

to retail a product

to wholesale goods

to provide a service

to develop successfully

to minimize the risk of failure

to estimate costs

to spend money to run the business

to include the money

to buy materials and equipment

to pay for rent

to work for smb.

to pay for advertising

enough for living

to expand your business

to borrow money from a bank

to make you a loan

a good investment

to provide them with your financial statements

to show the financial situation in your firm

to attract customers

to depend on a good promotional campaign

to provide a convenient location

to use good selling methods

to offer reasonable prices

to hire an employee

to use employment agencies

to address to consulting firms

to choose professional societies

to advertise in a newspaper or in a magazine

to have language abilities

to allow you to communicate more easily

to increase the number of business contacts