Unit 23. Getting started in business Active vocabulary

make analytical market review робити аналітичний огляд ринку

draw up скласти (бізнес-план, контракт)

fixed costs фіксовані витри

Variable costs змінні витрати

profit прибуток

revenue дохід

suffer from losses терпіти збитки

1. Get organized. Decide what your skills are. Find out if there is a market for buyers in your area. Make analytical marker review of your product or services.

2. Decide what capital you need to start your business. Think about how to get the you can use your own money or you can ask the bank for a loan . If you get a loan, be sure you can afford to pay properly.

3. Draw up your business-plan.

4. Calculate your costs. First, work out your fixed costs, for example, the rent on your office or the interest on a loan. Then add your variable costs, for example, equipment or tax (if you pay it).

5. Work out how much to charge for your service. Find out what other people are charging and use this to set your own prices.

6. Think over promotion your product or services. What sort of advertisement will suit most of all.

7. Your profit is the amount of money you receive from selling your service. You need to calculate this very carefully. Your revenue is the number of hours worked multiplied by (x) the price per hour.

8. Your business will make profit а if your revenue for a year is more than your costs. If your costs are higher than the revenue, you'll suffer from your losses. Work out carefully the number of hours you need to work.

Exercise 1. Give the English for:

обдумувати, робити аналітичний огляд ринку, скласти, дізнатися, просити позику в банку, процентна ставка, розробити, покривати затрати, терпіти збитки, змінні витрати, фіксовані витрати, прибуток.

Exercise 2. Match an appropriate word-combinations:

interest, capital, make loss, fixed costs, profit, loan, revenue;  

1. an amount of money you need to start a business;

2. the money you receive from selling a product or service;  

3. what you make if your revenue is more than your costs; 

4. what you make if your revenue is less than your costs; 

5. an amount of money that someone, e.g. the bank lends you; 

6. money you pay for things and services to run your business; 

7. an amount you pay for borrowing money, e.g. from the bank. 

Exercise 3. Answer the questions:

1. What is the most necessary for starting business?

2. Do you find a good idea to ask a loan from the bank?

3. Why is it important to make analytical market review?

4. What role does promotion play?

5. What is necessary to do to not suffer from losses?

Exercise 4. Read the elements of business plan and make up your own:

Business Plan Checklist

1. Details of the business:

Name of business

Types of business (limited company, partnership and etc.)

2. Product/service

Description

3. Market

Describe toy market.

Who are your customers?

Is your market growing, static, or decline?

Who are the main competitors?

What are the advantages of your product or service over the competition?

4. Marketing

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

5. Premises/ Machinery/ vehicles

Where do you intend to locate the business

What sort and size of premises will you need?

What machinery/vehicle do you require?

6. Objectives

What objectives do you have for the business?

Exercise 5. Work in pairs. Be prepared a report about an interview with the owner of a local business. Plan carefully in advance your interview. Ask the business owner questions such as:

1. What service does he/she sell?

2. What risks do you take in operating your own business?

3. What method do you use to compete with similar business for customers?

4. What training and experience should a person have before attempting to

start his or her own business?

5. How much capital did he/she put in business to start it?

6. What are his/her fixed and variable costs?

7. What price does he/she charge?

8. How many hours' work does cover his/her costs?

9. How much profit does he/she make?

Unit 24. Financing Business

Active Vocabulary