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Summarise the recommendations presented in the text.
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Exercise 4. Complete the following phrases/sentences with adequate prepositions from the box. Translate them into Ukrainian.
| 1. People are buying… you. | |
| 1. decide where you fit… | |
| like from (x3) in at by for | 2. the product looks … |
| 3. to obtain a product … other sources | |
| 4. to compete … price and quality | |
| 5. A customer pays … it. | |
| 6. Your product is different… others. | |
| 7. What are you aiming …? |
Exercise 5. Read the extracts below and decide which section of the checklist they come from.
Business plan checklist.
| 1. Details of the business | 6. Marketing | |||
| Name of business Type of business | What sort of marketing or advertising do you intend to do? | |||
| 2. | Personal details | 7. Premises / machinery / vehicles | ||
| Relevant work experience | Where do you intend to locate the business and why? | |||
| 3. | Personnel | What sort and size of premises will you need? | ||
| Number of people / job function | What machinery / vehicles do you require? | |||
| 8. Objectives | ||||
| 4. Product / service Description | What objectives do you have for the business? | |||
| 5. Market | ||||
| A At first I will be concentrating on getting the business into profit. But if I am successful I would then consider looking for other sites in the city area and expanding the management team. Eventually it might be possible to set up shops in different locations around the country. | E I plan to advertise on local radio and in the local press and free press. This will be complemented by flyers distributed directly through letterboxes to residents in the area. | |||
| B The Tea Set. Initially the business will be registered as a limited company with ten shareholders | F I have already worked as an employee in two different companies, where I was involved in both marketing and customer service at junior management level. | |||
| C In a street with pedestrian access only, which leads into the main shopping area and market square in a town of 70, 000 inhabitants. The shop is also close to the station, which is used by several thousand commuters daily. The surface area is 45 square metres at a rent of 1000 euros per month. | G It is not easy to give a precise estimate but it would seem to be essentially passing trade within the shopping area. The target consumer is middle-aged and with a comfortable income. There is no competition in the area as the concept for this type of shop is new and comparable products are not currently available in other outlets. | |||
| D Retail outlet selling a wide range of specialist teas and tea-related giftware. Sales will be made direct to customers and also by mail order. | H Two full-time sales staff for the shop. One personal assistant to do secretarial work and general office administration. | |||
Text B
A business plan form also covers:
Pricing. Don't base your prices on your estimate of your own costs - keep an eye on your competitors and the market generally. Your prices are a vital part of your business success. Try to ensure that they give you a competitive edge. Remember, it is generally easier to bring prices down than to put them up.
What's the best price you will be able to get from your customers - evidence shows that many small businesses charge less than their customers are prepared to pay. Does your price cover the direct cost of producing your product and provide a reasonable contribution to cover your overheads?
Supplies. Are adequate supplies available? Is the quality good? Can you get supplies at the right price for you?
Do you know what credit is available?
Premises and equipment. What premises will you be operating from? Are they adequate? How much will they cost? Do you need to buy vehicles or machinery? If so, have you assessed the cost? And how will you pay for them?
Personnel. Will you need to employ people? If so, do you know how many? And at what cost? Do they have the necessary skills and capabilities? Will they need special training? What is their future potential?
What contribution can they make to your business? If you anticipate employing staff or using freelance services, what will they be doing and what will be the cost to you? Have you considered the legal implications and requirements of employing people?
Personal details. Why are you qualified to run your business? Has your previous work and business experience been relevant? Have you attended any courses? Where do you see yourself in five years time? Have you got the skills for the job? What are your plans to ensure that you get the right skills and knowledge to run your business profitably? Do you know your own strengths and weaknesses?
Marketing. Calculate the cost of marketing your goods or services. How are you going to sell? How do your competitors sell? Are you sure that your way of reaching the market is appropriate? You will probably be considering leaflets, advertisements in your local paper, business cards, phone calls and personal visits
Book-keeping or record system. At the centre of every successful business, there is an efficient record system. This should enable you to keep a complete record of things like quotations you may make, invoices, bills, receipts and payments in cash, VAT and Inland Revenue forms, etc. These records will be needed to provide information to help you to run your business. They will also help your accountant to complete your tax return.
What sort of records should I keep? If you don't keep accurate records of all your transactions you will not be able to manage your finances adequately. This could jeopardise the future of your business, and, in particular, may cause difficulties when completing VAT and tax returns.
Remember - good financial records help you to:
· improve your financial control
· see when rising costs are affecting your profit margins
· measure the overall performance of your business
· manage your cash flow effectively
· act quickly if problems arise
· keep VAT, National Insurance and Income Tax up to date.
Once this information has been put down on paper, the entrepreneur can then choose an appropriate form for the company, register it with the authorities and open for business.
Notes: Inland Revenue – державна податкова адміністрація (у Великій Британії)
Exercise 1. Read the text and answer the questions.
1. Why shouldn’t you base your prices on the estimate of your own cost? Give your ideas about it.
2. Why is it easier to bring prices down than to put them up?
3. Is it good to charge less than your customers are prepared to pay?
4. Is the price right if it only covers the overheads?
5. What kind of premises can you operate from?
6. What should you keep in mind when employing people? What do you think is the most important when recruiting personnel?
7. Why is it important to know your own strengths and weaknesses?
8. What way of advertising your product or service would you choose?
9. What is your attitude to advertising on our television?
Exercise 2. Translate into English.
1. Як ви організуєте свій бізнес?
2. Ви схильні перебільшувати те, що ви знаєте.
3. Вам доведеться з”ясувати, що ви не знаєте.
4. Вам доведеться вирішити, як ви будете конкурувати: за ціною чи за якістю.
5. Вам доведеться з’ясувати, як ваші потенційні покупці обходилися без вашого товару / ваших послуг.
6. Вам можливо доведеться найняти більше працівників.
7. Вам доведеться вирішити, скільки людей ви наймете.
8. Скільки просять конкуренти за подібний товар?
9. Ви не мусите бути експертом у даній галузі.
10. Якого розміру ваші виробничі приміщення?
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