Importance of small businesses

Most people do not have any idea of the importance of small businesses in our economy. The news media devotes so much time to employment and problems in big businesses such as automobiles, steel, and textiles that we might think that the economy is dominated totally by large businesses. Yet large companies (more than 1,000 employees) created only 6 percent of the new jobs since 1975. Since 1979, large companies actually lost about 600,000 jobs. Ninety percent of the nation`s new jobs in the private sector are in small businesses. More than half of the new jobs are with companies with fewer than 20 employees.

The government tends to classify things, including small businesses. It talks about the different classes of small businesses: 1) service businesses, 2) retail businesses, 3) construction firms, 4) wholesalers, and 5) manufacturers. Let`s view the industries.

1.Service Businesses. You are already familiar with the services provided by dry cleaners, travel agencies, lawn care firms, beauty parlors, and other services that cater to you and your family. In your career search, be sure to explore services such as hotels/motels, health clubs, amusement parks, income tax preparation organizations, employment agencies, accounting firms, rental firms of all kinds, management consulting, repair services, insurance agencies, real estate firms, stock brokers, and so on.

2.Retail Businesses. You have only to go to a major shopping mall to see the possibilities in retailing. There are stores selling shoes, clothes, hats. Skis, gloves, sporting goods, ice cream, groceries, and more. Much more.

3.Construction firms. Drive through any big city and you will see huge cranes towering over an empty lot where major construction is taking place. Would you enjoy supervising such work? Visit some areas where construction firms are building bridges, roads, homes, schools, buildings, and dams. There is a feeling of power and creativity in such work that excites many observers.

4.Wholesalers. Have you ever visited a wholesale food warehouse, a wholesale jewelry center, or similar wholesale firms? If not, you are missing an important link in the small-business system, one with much potential. Wholesale representatives often make more money, have more free time, travel more, have more fringe benefits, and enjoy their jobs more than similar people in retailing.

5.Manufacturing. Of course, manufacturing is still an attractive career for tomorrow`s graduates. The figure in the margin shows that manufacturers make the most money among small-business owners. There are careers for designers, mechanics, engineers, supervisors, safety inspectors, and a host of other occupations. Visit some small manufacturers in your area and inquire about such jobs. Naturally, there are thousands of small farmers who enjoy the rural life and the pace of farming. Small farms are usually not very profitable, but some that specialize in exotic crops do quite well. Similarly, many small mining operations attract college students with a sense of adventure and daring. People who are not sure of what career they would like to follow have a busy time ahead. They need to visit service firms, construction firms, farms, mines, retailers, wholesalers, and all other kinds of small and large business to see the diversity and excitement available in American business.

Exercises

1. Answer the questions based on the text.

1. Do people have any idea of the importance of small businesses in our economy?

2. What percent of the nation`s new jobs in the private sector is in small businesses?

3. What percent of new jobs are with companies with fewer than 20 employees?

4. What classes of small businesses does the government identify?

5. Manufacturing is an attractive career for tomorrow`s graduates, isn`t it?

6. Do you know people who are not sure of what career they would like to follow?

7. Do you agree that small farms are usually not very profitable?

8. Have you ever visited a wholesale food warehouse, a wholesale jewelry center, or similar wholesale firms?

9. What kind of work would you enjoy supervising?

10. What must one do to see the diversity and excitement available in business?

2. Find the equivalents

преобладать	creativity
творчество	stock brokers
розничный	to dominate
оптовик	real estate firms
туристическое агентство	observer
химчистка	to devote
строительство	amusement
наблюдатель	retail
инспектор по безопасности	beauty parlor
агентство недвижимости	construction
страховая компания	travel agency
развлечение	wholesaler
выгодный	insurance agency
салон красоты	dry cleaners
представитель	representative
привлекательный	adventure
посвящать	attractive
приключение	profitable
услуги брокеров	safety inspector

3. Make up sentences with the following word-combinations

- the importance of small business

- to classify things

- to be familiar with

- to explore services

- income tax preparation organizations

- a feeling of power and creativity

- an attractive career

- a sense of adventure and daring

4. Translate the following sentences into English

- Большинство людей не имеют ни малейшего представления о роли малого бизнеса для современной экономики.

- Огромный процент трудовых мест создается посредством деятельности малого бизнеса.

- Существуют разные классы малого бизнеса: 1) сфера услуг, 2) розничная торговля, 3) строительные фирмы, 4) оптовая торговля, 5) промышленность.

- Средства массовой информации большое внимание уделяют проблемам крупного бизнеса, что способствует недооцениванию роли малого бизнеса у населения.

Advantages and disadvantages of running a small firm

Small firms actually have advantages over large firms in many cases. One advantage of small firms is that they often grow into large firms. Many of today's small firms will become giants in tomorrow's business world.

Some of the situations in which small firms have distinct ad­vantages are the following:

1. When new products or ideas are being tried. Small firms ha­ ve much flexibility. Decisions can be made and implemented quickly.

2. When the personal attention of the owner is essential to daily operations. If the owner's presence is important to the growth of the business, it will be more successful if the business is small enough for one person to supervise.

Where personal services, either professional or skilled, are dominant. Examples of this include beauty parlors, real estate' offices, interior-decorating firms, TV repair shops. Medical and dental services are also usually rendered by small firms. Any possible advantages of large size in these areas are usually offset by greatly enlarged over­heads less efficiency on the job, and the loss of the personal touch of the smaller firm.

4. When the market for the product or service is mainly local. In some types of firms, it just is not economical to attempt a scale of operations that exceeds the local market demand. The making of bricks or concrete blocks for the construction industry is an example. Transportation costs are prohibitive for moving such products.

5. When the industry is characterized by wide variations in de­ mand or in styles. Examples of these include ladies' dress line, orna­ mental candles, and custom-made chandeliers and lamp shades. These types of products just do not invite large firm development in most cases. The small, flexible firm usually can adjust to the necessary variations of specialized products more easily.

6. When close rapport with personnel is essential. Small firm owners usually have the advantage of being close to employees. They know problems from daily conversations and can adjust employment to a person's abilities better because of this close association. As a re­ sult, they are usually able to maintain better morale and efficiency in the firm, which is important in any business.

Disadvantages of small firms: Small firms are often said to labor under such disadvantages as the inability to secure competent employees, the inability to cope with monopolistic practices, the inability to finance expansion when it has been proved to be practicable, tax burdens, limited vendor goodwill, discriminatory pratices by large shopping-center developers, lack of time for the small proprietor to handle multiple assignment, lack of research facilities, and the problems of making a new firm or product known in its market.

Many of the disadvantages of small firms could be overcome with positive planning. An ill-conceived business, whether large or small, has little chance of success if its operation has not been properly planned. Good research in the planning stage can reveal opportunities for success. It can also indicate when a business that is contemplated should not be undertaken.

The rewards for successful small firm ownership can be sig­nificant. The personal satisfaction will vary with the individual owner. Good profits, satisfying employment, being one's own boss, comrnu niiy status, family pride and tradition, and having an outlet for one's creativity are some of them.

But these rewards are never automatic or guaranteed. Success makes many demands upon the operator of the firm. The requirements for successful ownership of small business firms can be summarized as follows: personal characteristics, good customer relations and knowledge of consumerism, good community relations, business ethics and social responsibility, compliance with government regula­tions. But sound business knowledge and willingness to work hard stand at the head of any list. Knowing the causes of failure can protect the owner against them.

The individual firm has benefited from having these and other advantages. In addition to the types of firms cited, small firms in such fields as construction, wholesaling, retailing and the service indus­tries have faced up well to their larger firm competition. Insurance and small finance firms have also been very successful. The profitable firms have not relied on the inherent advantages of small firms as such, but have combined these advantages with alert and competent management to achieve their success.

Exercises

1. Answer the questions based on the text.

1. Do small firms actually have advantages over large firms?

2. What are the advantages of small firms?

3. How can the ideas be made and implemented in small firms?

4. One advantage of small firms is that they often grow into large firms, isn`t it?

5. Are the inability to secure competent employees, the inability to cope with monopolistic practices, the inability to finance expansion considered to be the disadvantages of small firms?

6. Many of the disadvantages of small firms can be overcome with positive planning, can`t they?

7. How can the requirements for successful ownership of small business firms be summarized? What are the most important of them?

8. Are the insurance and small finance firms have also been very successful? Are they successful now?

9. What can be the rewards for successful small firm ownership? Can they be sig­nificant?

10. Do the small firm owners usually have the advantage of being close to employees? What are the benefits of this advantage?

2. Find the equivalents

добавление	situation
работник	to supervise
достигать	transportation costs
ситуация	flexibility
транспортировочные расходы	conversation
личное удовлетворение	dental services
контролировать	essential
награда	efficiency
разговор	to cope with
исследовательские возможности	tax burden
гибкость	prohibitive
справляться с чем-либо	employee
стоматологические услуги	willingness
налогообложение	to achieve
необходимый	research facility
желание	reward
запрещающий	personal satisfaction
эффективность	addition

3. Make up sentences with the following word-combinations

- to achieve success

- to rely on

- to combine the advantages

- to benefit from

- willingness to work hard

- to be properly planned

- to secure competent employees

- daily conversations

4. Translate the following sentences into English

- Малый бизнес имеет ряд преимуществ перед крупными компаниями.

- В небольшой фирме внедрение новых идей и технологий осуществляется гораздо проще и быстрее, чем в крупных предприятиях.

- В небольшой компании руководитель имеет больше возможностей управлять производственным процессом, координировать деятельность сотрудников и быстро реагировать на те или иные изменения.

- Малой фирме легче приспособиться к изменениям на рынке и, в случае необходимости, поменять направление или вид деятельности.

- Уровень производительности в малой фирме значительно выше, чем в крупной компании.

- Отсутствие большого спектра возможностей финансовой поддержки и неспособность противостоять монополистической конкуренции являются главными недостатками малого бизнеса.

- К числу требований, необходимых для успешного ведения малого бизнеса, можно отнести следующие: личностные качества предпринимателя, хорошие отношения с клиентами, знание рынка, деловая этика, ответственность, соблюдение норм закона.

Sources of financing for new small firm

The capital of a business consists of those funds used to start and run the business. The funds may be either the owner's (equity capital) or creditor's (debt capital). Capital is also classified, de­pending on its use, as fixed or working.

Fixed capital refers to items bought once and used for a long period of time. These items include real estate, fixtures, and equip­ment.

Working capital refers to the funds used to keep a business working or operating. It pays for merchandise, inventory, and opera­ting expenses such as rent, utilities (light and heat), taxes, and wages. Cash on hand and accounts receivable are also considered working capital. Therefore, working capital is cash, or anything that can be easily and quickly turned into cash.

No firm should ever be started without a clear and positive understanding of where its total capital needs are coming from. The various types of financing available to business firms are usually clas­sified as: 1. Short-term capital. This is borrowed capital that is to be repaid within one year. 2. Intermediate capital. This is borrowed capi­tal that is to be repaid in one to five years. 3. Long-term capital. This is capital whose repayment is arranged for more than five years in the future.

Sources of funds for small firms: Equity capital. Personal funds - saved or inherited. Loans from relatives and friends. Commercial bank loans. Mortgage loans. The Small Business Ad­ministration. Venture capitalists.

Equity capital consists of those funds provided to the bu­siness by the owners. These funds come from the personal savings of the small business entrepreneur. It the entrepreneur decides to obtain more funds through equity sources, it can be done by having partners or selling stock. When these sources are used, however, the small business entrepreneur gives up some ownership control of the business and shares the profits.

Personal funds. Whenever potential creditors, partners, or stockholders are invited to invest in or lend financial assistance to a new firm, their first question is, "How much does the owner have invested?" Every business contains an element of risk, and outsiders who invest in a new firm wish to be sure that such risk is shared by the owner. It is important that the would-be owners have assets of their own to invest in the firm. The closer they are to 50 percent of the total capital needs that can be provided, the greater will be their inde­pendence and share of net profits.

Loans from relatives and friends. Many new owners are encouraged in their enterprise by parents, relatives, or friends who offer to supply loans to the firm to get it started. The best way to avoid subsequent problems is to make sure that loans are made on a businesslike basis. They should be viewed as business dealings. The right of the owner to make decisions should be re­spected by all parties involved.

Commercial bank loans. The commercial bank is one of the main sources of short-term loans. Commercial bank loans are usually for short periods of time (less than one year), but many banks lend money for longer periods. The interest on a commercial bank loan is higher than many other sources. The business owner should establish a credit line with a commercial bank. A credit line means that, the bank agrees to lend the business owner an amount of money, to a stated maximum, at any time.

Mortgage loans. If the new firm planners own a commercial

building, they can usually secure a mortgage on it with payments over as many as 30 years. It may be the building in which the new firm operates. In that case, the planners will be making mortgage payments instead of rental payments to a landlord.

The small business administration is a US govern­ment agency organised to aid small business in many ways. This agency offers small businesses financial aid in the form of guaranteed loans and advice about where financial aid can be obtained. The SBA also offers educational aids and consulting services.

Venture capitalists. This is a term used to refer to individuals or corporations which invest long-term equity and debt ca­pital in promising start-up and growing businesses. Venture capitalists usually take some equity (ownership) in the firms for which they pro­vide funding. Many venture capitalists only invest in firms that need $100,000 or more financing.

Exercises

1. Answer the questions based on the text.

1. What are the principles of good lending?

2. What happens to bad debts?

3. What considerations should the banker be guided by when he/she considers the request for a loan?

4. What importance is attached to the customer/s stake?

5. What should be studied to determine the adequacy of the borrowed capital?

6. What is the idea of a mortgage?

7. What does lending long and borrowing short mean?

8. What does the house buyer undertake to do in a mortgage agreement?

9. What security do mortgagors provide for building societies?

10. What is the difference between variable interest mortgages and fixed interest mortgages?

2. Find the equivalents

личные сбережения	to consists of
капитал	source
арендодатель	capital
расходы	expenses
избегать	personal savings
приглашать	de­pend on
предприятие	wages
оборудование	to inherit
состоять	creditor
учредитель	stockholder
зависеть	to invite
чистая прибыль	equip­ment
наследовать	inde­pendence
обретать	to obtain
кредитор	net profit
независимость	to avoid
заработная плата	enterprise
источник	landlord

3. Make up sentences with the following word-combinations

- to start and run the business

- for a long period of time

- a clear and positive understanding

- to obtain funds

- an element of risk

- to invest in the firm

- to be encouraged by

- to establish a credit line

- to aid small business

4.Translate the following sentences into English

- Капитал фирмы составляют денежные фонды, используемые для развития и работы фирмы.

- Фирма не может начать осуществление своей деятельности без четкого представления о том, каковы основные источники ее финансирования.

- Основными источниками спонсирования малого бизнеса являются 1) личные сбережения (накопленные или полученные в наследство), 2) заемы у друзей и родственников, 3) заемы в коммерческих банках, 4) ссуды, 5) вклады инвесторов.

- Каждый вид предпринимательской деятельности предполагает определенную долю риска, и люди, желающие внести свой материальный вклад в бизнес, хотят быть уверенными в том, что владелец фирмы несет ответственность за вложенные ими средства.

- Заем денежных средств в коммерческом банке – самый невыгодный способ обретения капитала, так как процентные ставки в таких банках очень высоки.

Learning about small-business operations

Hundreds of would-be entrepreneurs of all ages have asked the same question; "How can I learn to run my own business?" Many of these people had no idea what kind of business they wanted to start; they simply wanted to be in business for themselves. That seems to be a major trend among students today. As you learned earlier, you have to understand business practices or you'll go broke in your own business. Here are some hints for learning about small business.

There are a few courses available that teach small-business management well. You might begin by investigating your local schools for such classes. The best thing about these courses is that they bring together entrepreneurs. That is how to learn to run a small business—talk to others who have done it.

The starting place for budding entrepreneurs is talking with small-business owners and managers. Learn from their experience, especially their mistakes. They will tell you that location is critical. They will caution you not to be under­capitalized. They will warn you about the problems of finding and retaining good employees. And, most of all, they will tell you to keep good records and hire a good accountant and lawyer before you start. Small-business owners can give you hundreds of good ideas, ranging from how to get bank loans to how to design creative advertising. This free advice is invaluable

There is no better way for learning small-business management than by becoming an apprentice or working for a successful entrepreneur. In fact, 42 percent of small-business owners got the idea for their businesses from their prior jobs. The prior jobs of almost half of new business owners were in small businesses. The rule of thumb is: three years experience in a comparable business.

The new entrepreneur of the 1990s would come from corporate management. Many corporate managers are tired of the big-business life and are quitting to start small business (see the marginal quotation). They bring their managerial expertise and enthusiasm.

Exercises

1. Answer the questions based on the text.

1. How can one learn to run his own business?

2. Will one go broke in his own business if he doesn`t understand business practices?

3. What are the hints for learning about small business?

3. Are there any courses available that teach small-business management?

4. Do the courses that teach small-business management bring together entrepreneurs?

5. Do you think it is a good idea when learning to run a small business to talk to others who have done it?

6. Who can warn you about the problems of finding and retaining good employees?

7. Is working for a successful entrepreneur a good way for learning small-business management?

8. What percent of small-business owners got the idea for their businesses from their prior jobs?

9. Will the new entrepreneurs come from corporate management?

10. Do you know corporate managers who are tired of the big-business life and are quitting to start small business?

2. Find the equivalents

банковский заем	major
основной	bank loan
специальные знания	hint
намек	mistake
расположение	local
доступный	lawyer
покидать	advertising
юрист	available
исследовать	caution
местный	investigate
предостережение	to quit
реклама	location
ошибка	expertise

3. Make up sentences with the following word-combinations

- small-business management

- to begin by investigating

- to learn to run a small business

- expertise and enthusiasm

- to hire a good accountant and lawyer

- to get bank loans

- to be tired of

- big-business life

- to keep records

4. Translate the following sentences into English

• Многие люди, желающие начать свой собственный бизнес, задаются вопросом о том, как организовать и вести бизнес.

• В настоящее время существуют различные курсы по обучению технологии ведения бизнеса.

• Возможно, одним из самых лучших способов изучения секретов ведения бизнеса – беседа с теми, кто уже преуспел в этом деле.

• Важным моментом на начальном этапе организации бизнеса является приглашение на работу бухгалтера и юриста.

• Хорошим способом приобретения опыта ведения бизнеса является пребывание какое-то время в должности помощника предпринимателя.

• По статистике 42% владельцев малого бизнеса приобрели опыт ведения бизнеса на прежней работе.

Take over a successful firm

One thing you have learned about small-business management is that it takes long hours, dedication, and determination. Owners work long hours and rarely take vacations. After many years, they may feel stuck in their business. They may think that they can't get out because they have too much time and effort invested. In short, there are millions of small businesses out there with owner/managers eager to get away, at least for a long vacation.

This is where you come in. Find a mature busincssperson (50 to 60 or more years old) who owns a small business. Tell him or her that you are eager to learn the business and would like to serve an apprenticeship, a training period. At the end of that period (one year or so), you would like to help the owner/manager by becoming assistant manager. As assistant manager, you would free the owner to take off weekends and holidays, and to take a long vacation—a good deal for him or her. For another year or so, work very hard to learn all about the business-suppliers, inventory, bookkeeping, customers, promotion, and so on. At the end ot two years, make the owner this offer. He or she can retire or work only part-time, and you will take over the business. You can establish a profit-sharing plan for yourself plus a salary. Be generous with yourself; you will earn it if you manage the business. You can even ask for 40 percent or more of the profits.

The owner benefits by keeping ownership in the business and making 60 percent of what he or she earned before—without having to work. You benefit by making 40 percent of the profits of a successful firm. Believe me, this is an excellent deal for an owner about to retire who is able to keep his or her firm and a healthy profit flow. It is also a clever and successful way to share in the profits of a successful small business without any personal money investment. If the deal falls through, you can quit and start your own business fully trained.

Exercises

1. Answer the questions based on the text.

1. Why do so many people continue to start new businesses when the majority of them will be out of business in five years?

2. What advice would you give a friend who wanted to learn more about starting a small business?

3. What does small-business management take?

4. Is it true that owners work long hours and rarely take vacations?

5. What must you do working as an assistant manager?

6. Why is it necessary to learn all about the business-suppliers, inventory, bookkeeping, customers, promotion, and so on?

7. Is it possible for an assistant to take over the business if the boss retires?

8. In what situation can the owner benefit by keeping ownership in the business and making 60 percent of what he or she earned before—without having to work?

9. Under what circumstances can one get into business without any personal money investment?

10. It is a good idea to start one`s own business fully trained, isn`t it?

2. Find the equivalents

здоровый	determination
управлять	assistant
установление	personal money
предназначение	vacation
помощник	profit flow
вознаграждение	deal
сделка	healthy
прекрасный	ownership
поступление дохода	to benefit
приносить пользу	excellent
отпуск	salary
собственничество	dedication
личные деньги	to manage

3. Make up sentences with the following word-combinations

- to take a long vacation

- to benefit by

- excellent deal

- to be able to keep a firm

- healthy profit flow

- money investment

- to start business fully trained

3. Translate the following sentences into English

- Предпринимательство предполагает огромные трудовые усилия владельца бизнеса.

- Трудовые затраты предпринимателя настолько высоки, что редко удается отдохнуть и съездить куда-нибудь в отпуск.

- Предприниматель должен изучить все, что касается поставщиков, оборудования, бухгалтерского учета, финансовых отчетов, клиентов и т.д.

Starting and planning a small business

The Small Business Administration has reported that 90 percent of all failures arc a result of poor management. The problem is that "poor management" covers a number of faults. It could mean poor planning, poor record-keeping, poor in­ventory control, poor promotion, or poor employee relations. Most likely it would include poor capitalization (that is, not enough money to operate the firm). This chapter gives us a chance to explore the functions of business in a small-business setting. Often, it is easier to picture such functions in a small firm. After we have discussed these functions in this setting, we shall explore each function more completely in later chapters. The functions we shall explore are:

1.Planning your business.

2.Financing your business.

3.Knowing your customers (marketing).

4.Managing your employees (human resource development).

5.Keeping records (accounting).

Although all of the functions are important in both the start-up phase and the management phase of the business, the first two functions, planning and financing, are the primary concern when you start your business. The remaining functions are the heart of the actual running of the business once it is started.

Business plan is a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competitors, and the resources and qualifications of the owners.The business plan is the grammar of an entrepreneurial venture; without it you cannot construct coherent thoughts.

It is amazing how many people are eager to start a small business, but have only a vague notion of what they want to do. Eventually, they come up with an idea for a business and begin discussing the idea with professors, friends, and other busi-nesspcople. It is at this stage that the entrepreneur needs a business plan. A business plan is a detailed written statement that describes the nature of the business, the target market, the advantage the business will have in relation to competition, and the resources and qualifications of the owner(s).

A business plan forces potential owners of small businesses to be quite specific about the products or services they intend to offer. They must analyze the competi­tion, die money needed to start, and odier details of operation. A business plan is also mandatory for talking with bankers or odier investors. To prepare a thorough plan, a person would most likely need the assistance of a good accountant. In general, a business plan should include the following:

1. A brief description of the industry and a detailed explanation of the products or services to be offered.

2. A thorough market analysis that discusses the size of the market, the need for the new product (service), and the nature of the competition.

3. A marketing plan that includes location, signs, advertising, and display.

4. An operating plan that includes a sales forecast, financial projections, accounting procedures, and human resource requirements.

5. A comprehensive capitalization plan describing how much money the owner(s) is committing. Few banks or investors will support a new firm unless the owner(s) has a substantial financaial commitment.

6. A description of the experience and expertise of the owner(s). This may include a resume, letters of recommendation, and financial statements.

Unless you spend adequate time and effort preparing your business plan, like thousands of others it may end up in a venture capitalist's wastebasket—unread! Why? Because most entrepreneurs get their priorities reversed. They don't spend enough time preparing their business plan. Then they expect potential lenders to spend several hours reading it.

According to Joseph Mancuso, director of the Center for Entrepreneurial Management in New York and author of a book on how to prepare business plans, a good business plan takes a minimum of five months to write but you've got to convince your readers in five minutes not to throw the plan away.

Mr. Mancuso says there is no such thing as a perfect business plan, but he suggests some things that investors uniformly look for in a business plan:

1.Brevity—12 pages is about right.

2.Executive summary (introduction) is the most important component—limit

it to a one- or two-page summation containing the key elements of the

project.

3.Management—a mediocre idea with a proven management team is funded

more often than a great idea with an inexperienced team.

4.Commitment—part-time entrepreneurs who try to hold down a regular job

while launching a new company have a harder time attracting investors.

5.Description of product—keep it short; the most important things investors

want to know is what makes the product more desirable than what's already

available and if the product can be patented.

6.Marketing strategies—a carefully devised marketing strategy is critical; don't

underestimate the competition.

7.Financial section—don't assume the business will grow in a straight line;

adjust your planning to allow for funding at various stages of the company's

growth.

8.Details—think out the smallest detail.

9.Get the completed business plan in the right hands—this requires research

Exercises

1. Answer the questions based on the text.

1. Which part of the business plan do you think is the most important?

2. How long do you think it took her to prepare the plan?

3. Is the investment in time worthwhile? Why?

4. Are such functions as planning and financing the primary concern when you start your business?

5. What is a business plan?

6. How long does it take to work out a profound business plan?

7. One cannot construct coherent thoughts, can he?

8. Do many people willing to start their own business have only a vague notion of what they want to do?

9. A business plan is a detailed written statement that describes the nature of the business, the target market, the advantage the business will have in relation to competition, and the resources, isn`t it?

10. Why does a business plan forces potential owners of small businesses to be quite specific about the products or services they intend to offer?

11. What does an entrepreneur need the assistance of a good accountant for?

12. What points should a business plan include?

13. Innumerate the things that investors uniformly look for in a business plan?

2. Find the equivalents

предлагать	vague
завершенный	strategy
смутный	launch
квалификация	completed
начинать	to require
солидный	wastebasket
требовать	company's growth
описание	to convince
рост компании	commitment
обязательство	description
мусорное ведро	substantial
убеждать	qualification
предлагать	to offer

3. Make up sentences with the following word-combinations

- the heart of the actual running of the business

- the nature of the business

- the advantages over competitors

- to construct thoughts

- to be eager to start a small business

- in relation to competition

- to prepare a thorough plan

- human resource requirements

- a detailed explanation

- to convince the readers

4. Translate the following sentences into English

- Не всякий мелкий бизнес является предпринимательским.

- Предпринимателя характеризует то, что он пытается создать что-то новое.

- Предпринимательская деятельность представляет собой совокупность последовательно осуществляемых сделок.

- Под сделкой понимается основанное на устном соглашении или письменном договоре взаимодействие двух или нескольких субъектов в интересах получения взаимной выгоды.