Business|Adults|Intermediate|18. New business

Look at the picture. What associations do you have?

The most obvious type of new business is when there is a new start-up, but get the Student to think about existing companies as well.

With their existing products, companies can:

  • get new customers similar to the ones they already have.
  • find different types of new customers.
  • sell in new areas or countries.

Companies can also develop new products for:

  • existing customers.
  • existing sales areas or countries.
  • new customers.
  • new sales areas or countries.


pic1_Business|Int|L18


Read the quotation. Do you agree? Why? / Why not?

«Three components make an entrepreneur: the person, the idea and the resources to make it happen.»

— Anita Roddick (1942-2007), British founder of The Body Shop

Choose three most important conditions from this list. Explain your choice

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What conditions are important for people starting new businesses?

  • low taxes
  • good transport links
  • skilled staff
  • training courses
  • low interest rates
  • high unemployment
  • cheap rents
  • a strong currency
  • a healthy economy
  • government grants
  • a stable political situation
  • easy access to credit

Low taxes: The Student may talk about a flexible labour market, where there are not only low taxes on companies but also low social costs, where it is easy to fire people when activity decreases, and where people quickly find new jobs when activity increases again.

Good transport links are important for your employees to get to work and for salespeople to get to customers, but also for distribution of goods if your business does this.

Skilled staff: The Student might mention the requirement for a good national education system and good company training of employees.

Low interest rates mean that it is cheap to borrow money to develop new business activities.

High unemployment may mean that the wages you can pay are lower, but you may not be able to find the people with the skills you want.

Cheap rents for office and factory space are of course more attractive than expensive ones, but having your office in the right place at a higher rent may be more attractive.

In manufacturing, a strong currency means that imported raw materials are cheaper but that your exports will be more expensive than those from some competing countries.

A healthy economy is beneficial because business people are able to plan better when there is less uncertainty about future inflation, taxes, etc.

Government grants may be used to try to persuade companies to set up in areas with high unemployment.

A stable political situation. Sudden changes in the political environment can lead to unexpected economic results.

Easy access to credit makes financing a business and dealing with unexpected shortfalls simpler.

Other conditions: the Student may talk about the importance of the language in setting up abroad. For example, countries such as India, where English is widely spoken in business, may be attractive for this reason.


Choose the appropriate variant for each type of the company

Match the following economic terms to their definitions

incentives — [ɪnˈsentɪvz]

government — [ˈɡʌvərnmənt]

bureaucracy — [bjʊəˈrɒkrəsi]

labour — [ˈleɪbə(r)]

unemployment — [ˌʌnɪmˈplɔɪmənt]


pic3_Business|Int|L18



Consider the following factors in your country

  1. consumer prices (the price of things in the shops)
  2. public spending (the money the government spends)
  3. consumer spending (the money people spend)

Complete the text with the economic terms

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The economy is stable following the problems of the past two years. By following a tight monetary policy, the government has reduced the inflation rate to two per cent. For borrowers, after going up dramatically, the interest rate is now down to eight percent. The last six months have seen a slight improvement in the exchange rate against the dollar. For the country as a whole, the GDP has grown by point one five per cent.

Exports are increasing, and the balance of trade is starting to look much healthier. In terms of jobs, the unemployment rate continues to be a problem, as it is still 16 per cent. In order to stimulate the economy and attract foreign investment from abroad, the government is offering new tax incentives, as well as making a renewed effort to reduce government bureaucracy and red tape. Finally, a large skilled labour force means there could be attractive investment opportunities over the next five years.

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Interviewer: Can you tell us about your business?
Abdirashid Duale: Our company name is Dahabshiil. We are a global money transfer company. We transfer money to nearly 144 countries. We help students. We help business organisations. We help international organisations like World Bank and United Nations. We help migrant workers who are in Europe or other parts of the world who want to send money back home to their family.

1.How many countries does the company transfer money to?

2. Dahabshiil helps four types of people and organisations. What are they?


Listen to the second part and complete these notes

to maintain — to make sth continue at the same level, standard, etc.

income — the money that a person, a country, etc. earns from work, from investing money, from business, etc.

requirements — something that you need or want

expenditure [ɪkˈspendɪtʃə(r)] — the act of spending or using money; an amount of money spent



Interviewer: What do all successful new businesses have in common?
Abdirashid Duale: All successful business, I believe, my opinion, they have to have a plan, they have to have a vision of where they’re going, how they’re going to reach that vision. They have to motivate their staff, they have to keep their customer loyal. They have to maintain their relationship with their customer because, at the end of the day, the customer is the one who pays your salary, who pays your income. So you have to make sure that the customers are happy with your services. You have to maintain that relationship. So Dahabshiil, when the customers come to us and they send money globally, we have to think about their requirements and we have to make sure they’re happy.
So it… and of course, you also have to maintain your costs. You know, if your income and your costs, there’s a big difference, then you know, you have to manage that. Of course, you prefer to get more income than your expenditure. Otherwise, if your expenditure is more than your income, your business will ge — be bankrupt. You will have a problem. So you have to always think about how to make more profit, less cost.

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Listen and complete this extract


Interviewer: What advice would you give to anyone starting their own business?
Susan Barratt: I hope they’ve got lots of energy. I think it is difficult and quite hard work, and needs a significant level of commitment. I think it’s really, really important to make sure you understand the marketplace and who your customers are going to be. And how you differentiate yourself, or make yourself different, from any of your competitors in that marketplace. People will only go to you and buy your product or your service if they feel it is added value, over and above what they can get elsewhere, or something they can’t get elsewhere. So, for me, understanding the market and the customer is absolutely critical, er, to, to the success of a business. The other key thing is that you’ve got sufficient cash. Um, things will generally not go quite to plan, and it’s really important that you’ve got access to enough cash to get the business going, to ensure you get some positive cashflow through the business.

Watch the whole interviews with Abdirashid Duale and Susan Barratt

Interviewer | Abdirashid Duale

Interviewer: Can you tell us about your business?
Abdirashid Duale: Our company name is Dahabshiil. We are a global money-transfer company. We transfer money to nearly 144 countries. We help students. We help business organisations. We help international organisations like World Bank and United Nations. We help migrant workers who are in Europe or other parts of the world who want to send money back home to their family.
Interviewer: What do all successful new businesses have in common?
Abdirashid Duale: All successful business, I believe, my opinion, they have to have a plan, they have to have a vision of where they’re going, how they’re going to reach that vision. They have to motivate their staff, they have to keep their customer loyal. They have to maintain their relationship with their customer because, at the end of the day, the customer is the one who pays your salary, who pays your income. So you have to make sure that the customers are happy with your services. You have to maintain that relationship. So Dahabshiil, when the customers come to us and they send money globally, we have to think about their requirements and we have to make sure they’re happy. So it… and of course, you also have to maintain your costs. You know, if your income and your costs, there’s a big difference, then you know, you have to manage that. Of course, you prefer to get more income than your expenditure. Otherwise, if your expenditure is more than your income, your business will ge — be bankrupt. You will have a problem. So you have to always think about how to make more profit, less cost.

Interviewer | Susan Barratt

Interviewer: What advice would you give to anyone starting their own business?
Susan Barratt: I hope they’ve got lots of energy. I think it is difficult and quite hard work, and needs a significant level of commitment. I think it’s really, really important to make sure you understand the marketplace and who your customers are going to be. And how you differentiate yourself, or make yourself different, from any of your competitors in that marketplace. People will only go to you and buy your product or your service if they feel it is added value, over and above what they can get elsewhere, or something they can’t get elsewhere. So, for me, understanding the market and the customer is absolutely critical, er, to, to the success of a business. The other key thing is that you’ve got sufficient cash. Um, things will generally not go quite to plan, and it’s really important that you’ve got access to enough cash to get the business going, to ensure you get some positive cashflow through the business.

Read the article from the Financial Times

pic7_Business|Int|L18


«Hippychick» completes first steps and prepares for growth

Jonathan Moules

Julia and Jeremy Minchin, entrepreneurs, are learning that small businesses grow fast. Julia founded Hippychick, an upmarket parenting products business, in 1999. She had already worked in a start-up as marketing head at Cobra Beer and was keen to start a business of her own.

Hippychick’s launch product was the Hipseat, a baby carrier which is strapped to the user’s waist. The company now sells a range of items, from baby boots to mattress protectors, many of which are distributed under licence through Mothercare, Early Learning Centre, Boots, John Lewis and about 500 independent toy shops. «We are not inventors, but we are very good suppliers,» Julia says. They also export successfully to 45 countries. The Hippychick workforce consists of just eight people, but the Minchins are under pressure to expand as the business hits a period of high growth.

Turnover for the past financial year was £1.2m and is expected to hit £2m during the current 12 months of trading. In three years, the Minchins expect turnover to be £5m.

Getting the right product mix is crucial, and Julia, who oversees marketing in the business, would like to have more Hippychick-branded products. However, she is reluctant to expand into some areas, such as clothing, because it is such a difficult market.

Operations have moved to a 6000 sq ft warehouse, and they are now considering taking a 3500 sq ft space next door. Renting the additional space would cost another £15000 a year, but Jeremy believes that doing nothing is not an option.


Look through the article again and match the numbers to what they refer to


Read the text again and choose the best answer to complete each sentence

Read the information


You’re an overseas manager at GFDC and you receive a letter from Carly Forster, the CEO.

To: All overseas managers

From: Carly Forster, CEO

Subject: This year’s conference

I am writing to invite you to attend this year’s conference. It will be held at the Bamboo Conference Centre, Macau, China, on July 14-16.

The location we have chosen is ideal for the conference events, and for networking and socialising. In the restaurant there will be wonderful Cantonese cuisine available. There will be a gala dinner on the Sunday evening in their private dining hall.

Macau is famous for its casinos, of course, and there are many casinos and night clubs close to the conference centre. There’s also a shopping mall nearby.

This will be a great chance for us to discuss how the company can improve its products and services, to thank you for all your hard work during the year, and to give you all the chance to get to know each other better.

Looking forward to seeing you all there!
Carly Forster


Wordlist


Write an informal e-mail concerning the upcoming conference to your colleague who works in another office, use the instructions above

Instructions

  1. Read the task and study the sample carefully.
  2. Plan what you are going to write about.
  3. Write according to your plan.
  4. Check your writing before sending it for evaluation.
  5. Learn the rules and see the sample here.
  6. Please use Grammarly to avoid spelling and some grammar mistakes.

УрокУрок HomeworkHomework КурсКурс
  • Warm-up
  • Start-up
  • Vocabulary. Economic terms
  • Vocabulary. Terms in use
  • Listening. CEOs talks. Part 1
  • Listening. CEOs talks. Part 2
  • Listening. The interview
  • The article
  • An overseas manager
  1. 1. Business|Adults|Intermediate|1. Career moves
  2. 2. Business|Adults|Intermediate|2. Changing jobs
  3. 3. Business|Adults|Intermediate|3. Case study: Recruiting
  4. 4. Business|Adults|Intermediate|4. Describing companies
  5. 5. Business|Adults|Intermediate|5. Making sales
  6. 6. Business|Adults|Intermediate|6. Sales skills
  7. 7. Business|Adults|Intermediate|7. Partnership
  8. 8. Business|Adults|Intermediate|8. Working across the cultures. Revision
  9. 9. Business|Adults|Intermediate|9. New ideas
  10. 10. Business|Adults|Intermediate|10. Successful meetings
  11. 11. Business|Adults|Intermediate|11. Stress in the workplace
  12. 12. Business|Adults|Intermediate|12. Business owners feeling stress
  13. 13. Business|Adults|Intermediate|13. Participating in discussion
  14. 14. Business|Adults|Intermediate|14. Eating and drinking
  15. 15. Business|Adults|Intermediate|15. Corporate entertainment
  16. 16. Business|Adults|Intermediate|16. Organising a conference
  17. 17. Business|Adults|Intermediate|17. Doing business internationally
  18. 18. Business|Adults|Intermediate|18. New business
  19. 19. Business|Adults|Intermediate|19. Business ideas
  20. 20. Business|Adults|Intermediate|20. Suitable location
  21. 21. Business|Adults|Advanced|1. Good communicators
  22. 22. Business|Adults|Advanced|10. Working across cultures
  23. 23. Business|Adults|Advanced|11. What makes people successful
  24. 24. Business|Adults|Advanced|12. The greatest achievements
  25. 25. Business|Adults|Advanced|13. A sponsorship deal
  26. 26. Business|Adults|Advanced|14. Job motivation
  27. 27. Business|Adults|Advanced|15. Job satisfaction
  28. 28. Business|Adults|Advanced|16. Relationships at work
  29. 29. Business|Adults|Advanced|17. Taking risks
  30. 30. Business|Adults|Advanced|4. Marketing and partnerships
  31. 31. Business|Adults|Advanced|18. Insuring trade risk
  32. 32. Business|Adults|Advanced|19. Evaluating risks
  33. 33. Business|Adults|Advanced|2. E-mail: for and against
  34. 34. Business|Adults|Advanced|20. Working across cultures 2
  35. 35. Business|Adults|Advanced|3. The price of success
  36. 36. Business|Adults|Advanced|6. Going global
  37. 37. Business|Adults|Advanced|5. Marketing internationally
  38. 38. Business|Adults|Advanced|7. Describing relations
  39. 39. Business|Adults|Advanced|8. How East is meeting West
  40. 40. Business|Adults|Advanced|9. Building customer loyalty
  41. 41. Business|Adults|Upper-Intermediate|1. Brand management
  42. 42. Business|Adults|Upper-Intermediate|10. Case study 4: Relocation
  43. 43. Business|Adults|Upper-Intermediate|11. Cultural differences
  44. 44. Business|Adults|Upper-Intermediate|12. Case study 5
  45. 45. Business|Adults|Upper-Intermediate|13. Employing the right people
  46. 46. Business|Adults|Upper-Intermediate|14. Case study 6: Fast fitness
  47. 47. Business|Adults|Upper-Intermediate|15. Revision 2
  48. 48. Business|Adults|Upper-Intermediate|16. Free trade
  49. 49. Business|Adults|Upper-Intermediate|17. Training for Negotiating
  50. 50. Business|Adults|Upper-Intermediate|18. Right or Wrong?
  51. 51. Business|Adults|Upper-Intermediate|19. Ethics and Companies
  52. 52. Business|Adults|Upper-Intermediate|2. Building luxury brands
  53. 53. Business|Adults|Upper-Intermediate|20. Revision 3
  54. 54. Business|Adults|Upper-Intermediate|4. What business travellers want
  55. 55. Business|Adults|Upper-Intermediate|3. Case study 1: Hudson Inc.
  56. 56. Business|Adults|Upper-Intermediate|5. Case study 2: Solving problems
  57. 57. Business|Adults|Upper-Intermediate|9. Company structure
  58. 58. GE|Adults|Upper-Int|20. Business and advertising
  59. 59. Business|Adults|Upper-Intermediate|6. Helping companies to change
  60. 60. Business|Adults|Upper-Intermediate|7. Case study 3: Acquisition
  61. 61. Business|Adults|Upper-Intermediate|8. Revision 1: Polite "No"
  62. 62. IELTS|Adults|Advanced|Unit 3|2. Time for a change. Business and marketing