II.I. Getting started in business.

1. How do you spend your free time? Would you like to spend some of your time earning money? Think about factors that are necessary to pay attention to when you start your business.

2. Read the text and compare your list with those which are given in the text.

Match the questions (a-f) with the paragraphs (1-6)

a How much will my business cost to run?

b How do I get started?

c Where will I get the money?

d Can I make profit?

e What kind of business are there?

f What can influence my business?

How to choose a business?

What do Juan from Spain and Jassica from the USA have in common? They are both teenagers running successful businesses. Juan, 16, has a gardening business with 75 clients and three employees. Jessica’s company cleans new houses. She started it when she was 14. If you want to start a business, good planning is important. Here are some tips.

1 It is necessary to know that there are three basic kinds of business.

They are Making a product (manufacturing),

Selling a product,

Providing a service.

2 Get organized. Decide what you special knowledge and skills are. But find out if there is a market for them. You should remember that your success depends on supply and demand. Look at people around you and get to know what they need and what you can supply. Babysitting, coaching for exams or sport, and computer training are all possibilities. Besides, your success will increase if you choose a business in which you have had previous experience or training. And, of course, you must be interested in the activity you will choose. Don’t be afraid of using your imagination.

3 Analyse general economic conditions in the country. They may have good or bad influence on your business. Think if a present situation is suitable for the business you are going to start. It means you should decide if it is possible to get profit.

4 Decide how much money you need to start your business. Think about how to get the capital. 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 the interest.

5 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.

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

EXERCISES ON VOCABULARY

1. Match the words from the text with the definitions.

an amount of money you need to start a business supply

the money you receive from selling a product or service can afford

an amount of money that someone lends you interest

money you pay for things and services to run you business loan

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

the necessity of a product or a service in the market costs

a product or a service you can offer in the market capital

a possibility to pay for something profit

2. Among the following words find the pairs of the antonyms.

borrow go down lend sell failed

supply profit successful buy

forget increase start costs

stop remember demand