Student

STARTING A BUSINESS
Writing a Business Plan
Rosa Domingo Calpe
OCTOBER-DECEMBER 2008

STARTING A BUSINESS
unit 1: the idea
Lesson 1: Deciding what is best.
ACTIVITY 1:
Before starting to write a business plan you must have an idea.
1. You can plan your own business even if you haven't the resources to start
one. The practice of thinking for yourself may help you when you start
work.
2. Decide on a business idea. This could be a product (something you sell) or a
service (a skill you offer).
3. Try to choose an idea which allows you all to have something to do that
interests you.
Work in groups (maximum 3) and try to use these expressions:
1. I think that…
2. It would be better if we do….
3. I agree with you/with the idea/with this…
4. I disagree with you/with the idea/with this…..
5. In my opinion this will be….
6. ……………………………………………..
Check the supplementary material for more expressions.
ROSA DOMINGO CALPE 1 IES FRANCESC XAVIER LLUCH I RAFECAS

STARTING A BUSINESS
Use a grid to decide which one is better. If you don’t reach agreement, then use a
voting system.
IDEA ADVANTAGES DISADVANTAGES
IDEA 1 Example:
Cost, experience,
competitors,
environment,
innovation….
Example:
Price, location, difficult to
manufacture……

STARTING A BUSINESS
Lesson 2: Writing down what you are planning.
ACTIVITY 2:
Write a rough draft about your idea:
1. About me: background, skills, studies, experience, motivation, aims and
objectives.
You can use some of this vocabulary:
Describing yourself:
accurate
active
adaptable
adept
broad-minded
competent
conscientious
creative
dependable
determined
diplomatic
discreet
efficient
energetic
enterprising
enthusiastic
experienced
fair
firm
genuine
honest
innovative
logical
loyal
mature
methodical
motivated
objective
outgoing
personable
pleasant
positive
practical
productive
reliable
resourceful
self disciplined
sense of humor
sensitive
sincere
successful
tactful
trustworthy
Describing your skills:
Communication Application of
Number
Information
Communication
Technology
Working with
others
Improving own
learning and
performance
Problem
solving
speaking,
listening, reading
and writing skills
interpreting
information
involving
numbers,
carrying out
calculations,
interpreting
results and
presenting
findings.
finding, exploring,
developing and
presenting
information
including text,
images and
numbers.
includes
process and
interpersonal
skills to
support
working
cooperatively
with others
to achieve
shared
objectives,
work
cooperatively
and have
regard for
others.
target-setting,
planning,
learning,
reviewing and
interpersonal
skills, e.g.,
communicating
own needs,
accepting
constructive
feedback,
negotiating
learning
opportunities
and support.
ability to
tackle
problems
systematically.

STARTING A BUSINESS
Complete this writing frame.
Background I was born in…............... in………………….
My family is from…………..My parents/I have lived
here from…………..My father/mother work as
a………….My brother/sister…………..
As for my town it is situated………… It has ……….
(population). It is (area). The main economic wealth
comes from (industry- services-agriculture…)
Studies I have been studying at (school) till now. My favorite
subjects are………. I am planning to study….. in order
to become……….
Skills My principal skills are….
I think that my weaknesses are……………….. But I can
deal with them by……………………..
Motivation My idea of business is………………… and I chosen it
because……………………. I believe I can succeed
because……………………. This project is important for
me because………..
Aims,
objective
In the future I want to………………….
2. The product or service: describe the product and justify your choice.
a) Describe your product:
- Performance: e.g. the speed of a car, the power of a microwave.
- Features: the extras, e.g. air conditioning or sunroof on a car-
- Ease of servicing: How easy is to fix?
- Reliability: How likely is it go wrong in, say, the first year?
- Durability: how long will it last?
- Aesthetics: What does it look like?
- Economics: What does it cost to produce? Can it be sold at a profit?

STARTING A BUSINESS
- Ease of manufacture
- ………………………………….
You can also use these expressions to describe your product:
This is our (newest) product.
This is one of our latest designs.
It is made of . . .
It can be used for . . .
You can use it to . . .
You can . . . with it
This has/contains . . .
This one features . . .
This comes with . . .
This is equipped with . . .
This particular model . . .
This is priced at . . .
This costs . . .
a) Justify your choice:
• Why? Identify the opportunities.
• How? Explain the process necessary to make your product or to offer
your service.
• Where? Describe the location of your business.
• Target market: describe the customers your product or service is
targeting.
Use the following writing frame:
The product or
service
Our product/service is………….. with these
features…………. It is…………….
How? The process of manufacturing has the following
stages:
First: …………
Second: ……………..
…………………
Where? We are going to sell through the internet or through a
location, or both.
It is located in a (centrical, peripheral), and well/badly
connected, main/non-main street
Market target Our product or service is designed for people

STARTING A BUSINESS
(customers, consumers) who are: age, income, sex,
studies, hobbies….
1. What do you need (assets) and where do you think you can find financial
support?
Try to make a list of all the items you need to start your business, from the
building to the stock. Think of how much money you will need to pay for all of
this and try to search for financial support.
Assets For starting our business we need:
A place
Furniture
Equipment
Supplies
…….
Financial
support
We think we can ask for a loan, our savings are
enough, our parents could help us, we can find a
shareholder…….
2. Why do you think it is going to be a success?
Try to underline the opportunities and advantages that will let you achieve
success.
Why? We think it will be a successful business because:
Opportunities (related with the circumstances: market,
location, economic situation...)
Advantages (related with the product: innovation,
cost, process of manufacture…)

STARTING A BUSINESS
Lesson 3: Explaining your idea.
ACTIVITY 3
1. Revise your notes.
2.Explain your idea to the rest of the class. You can use PowerPoint
presentation; it must last only 10 minutes and be no more than 15 slides.
Go to the supplementary material to find out how to make an effective
presentation.
3. The class has to evaluate the viability of the idea.
4. Each group must have 2 representatives. One to explain the ideas, and the
other to discuss the viability.
Use this grid to justify your arguments:
ARGUMENTS FOR LAUNCHING
THE NEW BUSINESS
ARGUMENTS FOR NOT
LAUNCHING THE NEW BUSINESS
Example: cost, experience,
competitors, location, economic
situation………………..

STARTING A BUSINESS
And write down some recommendations:
It will better to…
We think we should…..
We think that…..
From our point of view it has…………………
Why do businesses fail?
- Poor marketing research
- Poorly developed (service or product)
- Inappropriate price
- Competitors’ action
- External environment
- …………………………….

STARTING A BUSINESS
unit 2: market research
Lesson 1: Get ready for research!
In order to start market research, first you have to think about and try to complete
these activities:
ACTIVITY 1:
Where will your business operate from?
Explain whether it is a physical location (address and small map location), virtual
location (internet), both, and say something about the facilities (communication,
connections, suppliers).
ACTIVITY 2:
Who will be your customers? What is the pattern of demand?
If you know who your customers are, your business will be more successful,
because you won’t waste time trying to sell to the wrong people. You have to
define your customers and consumers, and then you have to draw up a customer
profile.
To help you with the customer profile, try to answer these questions:
1) How old?
2) Men or women?
3) Adults, teenagers, children, older people?
4) Live where?
5) Shop where?
6) Own a car?
7) Read which newspapers?
8) Listens to which radio programs?
9) Like which TV programs?

STARTING A BUSINESS
10)Go where on holiday?
11)Hobbies?
12)Studies?
13)Income?
When you finish your customer profile make a little questionnaire and ask some of
your potential customers (at least 15) about what they usually buy and consume,
and about what they would like. Then evaluate if the customers profile is accurate or
not, and make a list of things you can do to improve the product or service they are
using so far.
Why do you buy …………?
Would you like to ………….?
Where do you shop ………….?
Why do you choose this product/outlet?
How much do you spend on ……..?
How many times do you use or buy….?
Would you prefer to…?
Which improvements you would make in……?
What do you need that you don’t find in……?
…………………………….
Remember that a questionnaire must be clear, preferably with short questions and
closed answers, and not too long in order not to lose the interviewee’s attention.

STARTING A BUSINESS
Lesson 2: Investigating your competitors.
ACTIVITY 3
Who are your competitors?
Identify your competitors; try to find out how many businesses are offering the
same product or service as yours. Classify them by proximity and analyze the
products’ prices and their features.
COMPETITOR PROXIMITY PRODUCT/SERVICE SPECIAL
FEATURES
PRICE
Also try to define their ‘position’ in the market place compared with your own.
Check the supplementary material to revise what ‘position’ means.

STARTING A BUSINESS
Lesson 3: Pricing methodologies.
ACTIVITY 4
What are your prices and why?
In this activity first you have to identify the stage of the product life cycle and justify
this. Consult the supplementary material to do so.
Secondly you have to consider the different pricing methodologies and choose one or
more considering the advantages and disadvantages of all of them. You need to justify
your choices too.
METHODOLOGY ADVANTAGES DISADVANTAGES
Price skimming
Penetration pricing
Competitor based
pricing
Demand based or
perceived value
pricing
Cost plus pricing
Predatory pricing
Price discrimination
Loss leader
Psychological pricing
To do this second activity, each group will be handed a handout explaining three of
this strategies, you will have to summarize the definitions to explain them to the rest
of the groups. One you got all the definitions you will be able to complete this table.

STARTING A BUSINESS
Lesson 4: Differentiating your product and identifying your
audience.
ACTIVITY 5
How will you reach these customers and what interest do you think they have in
your product or service?
How can you make your service or product different? Define it offering something
new:
1. Pricing. Is your product a luxury item, somewhere in the middle, or cheap,
cheap, cheap.
2. Quality. Total quality is a much used and abused phrase. But is your product
well produced? What controls are in place to assure consistency? Do you back
your quality claim with customer-friendly guarantees, warranties, and return
policies?
3. Service. Do you offer the added value of customer service and support? Is
your product customized and personalized?
4. Distribution. How do customers obtain your product? The channel or
distribution is part of positioning.
5. Packaging. Packaging makes a strong statement. Make sure it's delivering the
message you intend.
6. ……………………………
(Try to use the information you collected from the questionnaire you made
before)
Find out how to contact your potential customers:
- Identify your audience.
- Choose the message and the answer you want to obtain. (Write different
messages and explain the answer you want to obtain)
- Choose the media (mailing, local or national press, magazines, specialist
publications, TV, flyers, brochures)

STARTING A BUSINESS
Lesson 5: Starting a promotional campaign.
ACTIVITY 6:
- Design a logo and a brochure.
- Design a promotional video (5 minutes maximum). Do research through
the internet about promotional videos in order to make the video
appealing to the audience. (Also you can look at the supplementary
material)
- And finally design a promotional plan based on prices, gifts, parties...
- Try to find out what will be the cost of everything.

STARTING A BUSINESS
unit 3: production plan
Lesson 1:What you need to make your product or to offer
your service.
Once you know about your product or service and about the unique features that are
making it different and more attractive, you must have a detailed plan of production,
in which you have to explain the process stage by stage without forgetting to list the
materials and equipment necessary, and the workers involved.
ACTIVITY 1:
Find out what you need:
• Materials, parts and components:
COMPONENT/PART MATERIAL UNITS COST
• Processes to be used:
The product you have chosen will be made using various processes, tools and
equipment. Now try and explain as simply as possible how the product is made.
Number each step in the production process:
1)
2)
3)
...................................................

STARTING A BUSINESS
• Tools, equipment and machinery to be used:
TOOLS
EQUIPMENT
MACHINERY
• Number of workers needed and their profile.
JOB QUALIFICATIONS AGE SKILLS EXPERIENCE ESTIMATE
D SALARY

STARTING A BUSINESS
Lesson 2: Making a flow diagram of the process of
production.
ACTIVITY 2:
Describe:
• The sequence of production, including critical production and quality control
points
• A schedule showing times to do the work and realistic deadlines
• How quality will be checked and inspected
• Health and safety factors
Complete this table:
Sequence of
Operations
(time)
Key stage
of
production
Process
(workers
involved)
Materials
and
components
Tools and
equipment
Quality,
measurements
and tests
How many units of your product or service will you be able to make in an hour? in a
day? In a month? (Remember that you probably will work 8 hours a day, and take a
rest on weekends).
NUMBER OF UNITS PER HOUR
NUMBER OF HOURS PER DAY
NUMBER OF DAYS PER WEEK
NUMBER OF WEEKS PER MONTH
ACTIVITY 3:

STARTING A BUSINESS
Design a flow diagram of the whole process:
Remember that a flow diagram consists of writing the key stages of the process in
boxes and expressing the sequence with arrows.
...............................
Key Stage 1
Key Stage 2
PROCES
S
TIME

STARTING A BUSINESS
ACTIVITY 4
Design a plan, using any computer application you know, in which you will situate all
your equipment, furniture, machinery and supplies and also the places where the
workers will be doing their tasks.

STARTING A BUSINESS
unit 4: financial plan
Lesson 1: Budgeting and costing
ACTIVITY 1
When you start a business normally you need to make a significant initial investment.
You will need money for this, since your business is still not working and you are not
able to make profits.
So first you have to make an estimation of all the necessary investments and costs for
starting your business and then, you have to find the money to pay for everything.
Remember the difference between cost and investment? Write it down:
Costs are......................................................................................
Investments are.............................................................................
Once you have found out the initial investments and costs of your business, fill in a
table like this:
INITIAL INVESTMENTS & COSTS FINANCIAL SOURCES (WHERE DO
YOU GET THE MONEY?)
EQUIPMENT
ADVERTISING
LEGAL ISSUES
FUNDS NECESSARY FOR THE ESTIMATE
MONTHLY COSTS (rent, materials, wages,
light, telephone...)
SAVINGS
SHAREHOLDERS
LOANS

STARTING A BUSINESS
TOTAL INVESTMENTS & COSTS= TOTAL FINANCIAL SOURCES
(Go to unit 3, activity 1, to check the equipment you require, unit 2, activity 6 to
check the cost of the advertising, and do the following activity to complete the
estimated monthly costs.)
ACTIVITY 2
How much money do you need to make from your business? It must certainly give
you enough to live on, and pay all the other costs of running your business. You need
to find out how much this will cost.
Think of everything you spend in a month and make a list like this.
ITEMS EXPENDITURE (per month)
RENT
LIGHT/GAS
TELEPHONE
STATIONERY
ADVERTISING
INSURANCE
.....

STARTING A BUSINESS
TOTAL
COST OF THE MATERIALS:
Write down the materials you usually need for each piece of work you do
(MONTHLY). How much will they usually cost and how many are you producing a
month?
In Unit 3 you calculated the cost of the materials for one unit of your service or
product and how many units of your service of product (output) you are able to
produce (activities 1 and 2). Now you have to calculate the cost of the materials once
you have estimated the total output and the output is related with your demand.
So first you have to estimate your demand. How much do you think you are able to
sell? Make 3 estimations: selling 100% of your product of service, selling 50% and
only 25%, and calculate the cost for each estimation.
MATERIAL Output
estimation
UNITS COST/UNIT TOTAL
COST
A
100%
50%
25%
B
100%
50%
25%
C 100%
50%

STARTING A BUSINESS
25%
D
100%
50%
25%
E
100%
50%
25%
Calculate the total cost of all the materials for each estimation.
ESTIMATION TOTAL MATERIAL COST
100%
50%
25%

STARTING A BUSINESS
Lesson 2: Incomes.
ACTIVITY 3
You need to be able to pay for what you spend on yourself, on expenditures and
materials and you also want to make a profit.
You have already decided the price you are going to charge. Now decide how many
weeks per year you will be able to work (remember you will need holidays, maybe 4
weeks), and how many hours you will be able to work every week.
Taking into account the time you need to make your service or product (Unit 3)
estimate your day/week/month earnings.
Make as in the previous activity, three estimations: 100%, 50%, 25%.
ESTIMATION TOTAL REVENUE
WEEKLY (*6) MONTHLY (*4) YEARLY (*12)
100%
50%
25%

STARTING A BUSINESS
EXAMPLE: Imagine that your business is a photocopy service, you are able to make
500 photocopies per hour, and you work 8 hours a day, 6 days a week, and 4 weeks a
month. You charge 10 pence per photocopy.
100% of demand: 500photopies/hour
Total Revenue per day
500 photocopies/hour * 10 pence * 8 hours/day = £400/day
Total Revenue per week
£400/day * 6 days/week = £2400/week
Total Revenue per month
£2400/week * 4 weeks/month = £9600/month
Total Revenue per year
£9600/month * 11 months/year = £105600/year
Complete the two other estimations:
50% of demand: 250photocopies/hour

STARTING A BUSINESS
25% of demand: 125photocopies/hour
ACTIVITY 4
And now fill in this table with the figures from your business:
NUMBER OF UNITS PER HOUR
PRICE OF EACH UNIT
NUMBER OF HOURS PER DAY
NUMBER OF DAYS PER WEEK
NUMBER OF WEEKS PER MONTH
NUMBER OF MONTHS PER YEAR

STARTING A BUSINESS
Make the three estimations:
100% of demand:
Units/hour * price * hours/day =
Total Revenue per day * days/week =
Total Revenue per week * weeks/month =
Total Revenue per month * months/year =
Complete the two other estimations:
50% of demand:

STARTING A BUSINESS
25% of demand:
ACTIVITY 5
Finally find out if you will be able to make profit in any of the 3 estimations.
Remember the formula:
Profit or loss = Total Revenue–Total Materials cost–Total Expenditure--%
Initial Investment
Calculate it per year.
Note: the percentage of the initial investment is equal to the estimated time of
working life of the equipment.
For example if we estimate that a photocopy machine is going to work for 5 years, the
percentage will be 100/5 = 20%.
Remember that you have to correlate total revenue estimations with total material
cost estimations.
PROFIT/LOSS 100%

STARTING A BUSINESS
PROFIT/LOSS 50%
PROFIT/LOSS 25%
Lesson 3: Break-even analysis
Definition:
Break-even is the output at which revenue equals cost, i.e. No profit or loss is made.
ACTIVITY 5
First we have to revise some concepts.
TOTAL REVENUE = PRICE * QUANTITY
Calculate them:
FIXED COSTS= costs that do not change with the output.
Calculate them:
VARIABLE COSTS= costs that vary directly with the output, e. g. materials.
Calculate them:
(Three estimations)

STARTING A BUSINESS
PROFIT/LOSS = TOTAL REVENUE – TOTAL COST
Calculate them:
(Three estimations)
ACTIVITY 6
Calculating the break-even point.
Output =

f i xed cost s
contribution per unit
Contribution per unit = selling price – variable cost per unit
EXAMPLE:
Suppose that the fixed cost of the photocopy business is £12,000 and the variable

STARTING A BUSINESS
costs per unit are £0.04
Price per unit = £0.1
Variable cost per unit= £0.04
Fixed Costs =£12.000
Output=
£ 0.06/uni t
£ 12000 ¿
¿
= 200.000 units
So we need 200.000 photocopies per year in order to start having profits and
covering our costs.
As we saw before in the most optimistic forecast we were able to make 500
photocopies per hour, 8 hour a day, 7 days a week, 4 weeks a month, working 11
months a year we are able to make 1.232.000 photocopies a year; in the second
forecast we will be able to make half 616.000, and in the most pessimistic estimation
we make 308.000; so in any case we reach the break-even point, which makes our
business absolutely profitable.

0 500000 1000000 1500000
£0
£20,000
£40,000
£60,000
£80,000
£100,000
£120,000
£140,000
Revenue
Fix costs
Total costs
Break-even
point
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25% 50% 100%
Output 0 308000 616000 1232000
Revenue £0 £30,800 £61,600 £123,200
Fixed costs £12,000 £12,000 £12,000 £12,000
Variable costs £0 £12,320 £24,640 £49,280
Total costs £12,000 £24,320 £36,640 £61,280
Graphically:
Calculate your break-point using annual fixed costs, and also make the graph.
Output =
f i xed cost s
contribution per unit
=

STARTING A BUSINESS
25% 50% 100%
Output
Revenue
Fixed costs
Variable
costs
Total costs
Explanations: (explain whether or not you are going to reach the break-even point in
any of the estimations, and if your business is going to be profitable).
Graphically:
Use the excel application to make the graph and copy it and paste it here.

STARTING A BUSINESS
Answer these questions:
1. Compare it with your estimations; will you be able to reach it?
2. What does the break-even point mean in terms of profits or losses? Why is it
necessary to reach it?
3. What will happen if you don’t reach it? Which solution will you suggest for
solving the problem?
4. What will happen if you raise your price?
5. What will happen if you lower your price?
6. What will happen if variable costs increase?
7. What will happen if variable costs decrease?
8. What will happen if fixed costs arise or go down?
In case you don’t reach the break-even point, redesign your business plan using the
solutions you suggest in question number 3.

STARTING A BUSINESS
Lesson 4: The cashflow
A cashflow is a financial forecast. It is usually done for one year ahead at a time. You
can easily see at glance where your business is doing well and where is doing badly. If
it is doing badly, you may need to borrow from the bank for a few months, if the
business is doing well you may be able to buy a new piece of equipment which will
help you to do your job better.
We also need to do the cashflow forecast because we have to know when we are
going to pay for all our costs and expenditures, and when we are going to be paid for
our sales, in order to anticipate and solve possible cash problems, i. e. when we don’t
have enough cash to pay all our debts, but we are expecting to be paid in the short
term for our sales.
In these cases we need to find a solution, we can go to the bank and ask for a loan, or
we can add more money from our personal income, or ask for more money from the
shareholders, but in any case it is not going to be an immediate solution, we have to
know exactly when and how much to look for the money we need in advance.
ACTIVITY 7
Make a cashflow forecast in order to check if you have enough cash to pay for all your
debts in time. Use the cashflow chart you have below.
In case you find out you need extra money, explain how you will solve this problem.

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Cashflow chart:
Jan Feb March April May June juny August
Septembe
r October November Dec
INCOME
Earning
(sales)
grants
interest free
loans
TOTAL A
EXPENDITURE
rent
materials
wages
light
gas
travel
insurance
advertising
loan payment
TOTAL B
OPENING
BALANCE
CLOSING
BALANCE

STARTING A BUSINESS
unit 5: SWOT analysis
Lesson 1: What is the SWOT analysis and how can apply it?
Definition: A SWOT analysis is used by businesses to understand their current
competitive position and to identify areas that can be improved upon in the future.
It can also be used to evaluate the viability of a new business.
SWOT is an acronym for strengths, weaknesses, opportunities and threats. It is
the culmination of much internal analysis and external research.
1. Strengths: attributes of the organization that are helpful to achieving the objective.
2. Weaknesses: attributes of the organization that are harmful to achieving the
objective.
3. Opportunities: external conditions that are helpful to achieving the objective.
4. Threats: external conditions which could do damage to the business's performance.
EXAMPLES:
Strengths:
Advantages of proposition?
Capabilities?
Competitive advantages?
USP's (unique selling points)?
Resources, Assets, People?
Experience, knowledge, data?
Financial reserves, likely returns?
Marketing - reach, distribution,
awareness?
Innovative aspects?
Location and geographical?
Price, value, quality?
Accreditations, qualifications,
certifications?
Processes, systems, IT, communications?
Cultural, attitudinal, behavioural?
Management cover, succession?
Philosophy and values?
Weaknesses:
Disadvantages of proposition?
Gaps in capabilities?
Lack of competitive strength?
Reputation, presence and reach?
Financials?
Own known vulnerabilities?
Timescales, deadlines and pressures?
Cashflow, start-up cash-drain?
Continuity, supply chain robustness?
Effects on core activities, distraction?
Reliability of data, plan predictability?
Morale, commitment, leadership?
Accreditations, etc?
Processes and systems, etc?
Management cover, succession?

STARTING A BUSINESS
Opportunities:
Market developments?
Competitors' vulnerabilities?
Industry or lifestyle trends?
Technology development and innovation?
Global influences?
New markets, vertical, horizontal?
Niche target markets?
Geographical, export, import?
New USP's?
Tactics: eg, surprise, major contracts?
Business and product development?
Information and research?
Partnerships, agencies, distribution?
Volumes, production, economies?
Seasonal, weather, fashion influences?
Threats:
Political effects?
Legislative effects?
Environmental effects?
IT developments?
Competitor intentions - various?
Market demand?
New technologies, services, ideas?
Vital contracts and partners?
Sustaining internal capabilities?
Obstacles faced?
Insurmountable weaknesses?
Loss of key staff?
Sustainable financial backing?
Economy - home, abroad?
Seasonality, weather effects?

STARTING A BUSINESS
ACTIVITY 1
Do a SWOT analysis of your business, using this grid:
HELPFUL
TO ACHIEVE THE OBJECTIVE
HARMFUL
TO ACHIEVE THE OBJECTIVE
INT
ERN
AL
ORI
GIN
ATRIB
UTES
OF
THE
ORGA
NIZATI
ON
STRENGTHS WEAKNESSES
EXT
ERN
AL
ORI
GIN
ATRIB
UTES
OF
THE
ENVIR
OMENT
OPPORTUNITIES THREATS

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ACTIVITY 2
Creative Use of SWOTs: Generating Strategies
SWOTs are used as inputs to the creative generation of possible strategies, by asking
and answering each of the following four questions design a strategy to improve your
future business.
1. How can we Use each Strength?
2. How can we Improve each Weakness?
3. How can we Exploit each Opportunity?
4. How can we Mitigate each Threat?
ACTIVITY 3
Every group has to explain their SWOT analysis to the rest of the class and justify
their strategies (using a power-point presentation). The other groups must say what
they think about the explanations.
For this activity try to use these expressions:
DESCRIBING
• Firstly it…
• Secondly
it…
• Finally it…
EXPLAINING
• This means that…
• This will cause…
• Because…
• As a result of this…
• For example…
DISCUSSING
• On the other
hand…
• However…
• Compared
with…
• Therefore…
CONCLUDING
• On the whole…
• In conclusion…
• In the short
term…
• In the long
term…
• The most
important factors
are…
EXPRESSING OTHER OPINIONS (THE OTHER GROUPS)
• We believe that...
• We think that…
• It would be better if you do….
• We agree with you/with the idea/with this, but….
• We disagree with you/with the idea/with this…..

STARTING A BUSINESS
• In our opinion this will be….
Unit 6: Business formats
Lesson 1:What kind of business?
ACTIVITY 1
Jigsaw activity, each member of the group will be an expert in one of the three
business formats.
The sole trader experts must join together, study the text they have below and fill the
grid.
1. Sole traders
A sole trader describes any business that is owned and controlled by one person,
although they may employ workers. Individuals who provide a specialist service like
hairdressers, plumbers or photographers, are also sole traders. Sole traders do not
have a separate legal existence from their owner. As a result, the owners are
personally liable for the firm's debts, and may have to pay them out of their own
pocket. This is called unlimited liability.
Advantages
1. The firms are usually small, and easy to set up.
2. Generally, only a small amount of capital needs to be invested, which reduces
the initial start-up cost.
3. The wage bill will usually be low, because there are few or no employees.
4. It is easier to keep overall control, because the owner has a hands-on approach
to running the business and can make decisions without consulting anyone else.
Disadvantages
1. The sole trader has no one to share the responsibility of running the business
with. A good hairdresser, for example, may not be very good at handling the
accounts.
2. Sole traders often work long hours and find it difficult to take holidays, or time
off if they are ill.
3. Developing the business is also limited by the amount of capital personally
available.
4. There is also the risk of unlimited liability, where the sole trader can be forced
to sell personal assets to cover any business debts.

STARTING A BUSINESS
BUSINESS FORMATS ADVANTAGES DISADVANTAGES
SOLE TRADER (definition)
The partnerships experts must join together, study the text they have below and fill
the grid.
2. Partnerships
Partnerships are businesses owned by two or more people. A contract called a deed
of partnership is normally drawn up. This states the type of partnership it is, how
much capital each party has contributed, and how profits and losses will be shared.
Doctors, dentists and solicitors are typical examples of professionals who may go into
partnership together. They can benefit from shared expertise, but like the sole trader,
have unlimited liability. A partnership can also have a sleeping partner who invests in
the business but does not have dealings in the day to day running of the enterprise.
Advantages
1. The main advantage of a partnership over a sole trader is shared responsibility.
This allows for specialisation, where one partner's strengths can complement
another's. For example, if a hairdresser were in partnership with someone with
a business background, one could concentrate on providing the salon service,
and the other on handling the finances.
2. More people are also contributing capital, which allows for more flexibility in
running the business.
3. There is less time pressure on individual partners.
4. There is someone to consult over business decisions
Disadvantages
1. The main disadvantage of a partnership comes from shared responsibility.
2. Disputes can arise over decisions that have to be made, or about the effort one
partner is putting into the firm compared with another.

STARTING A BUSINESS
3. The distribution of profits can cause problems. The deed of partnership sets out
who should get what, but if one partner feels another is not doing enough,
there can be dissatisfaction.
4. A partnership, like a sole trader, has unlimited liability.
PARTNERSHIPS (definition)
The companies experts must join together, study the text they have below and fill the
grid.
3. Companies
Companies have a separate legal identity from its owners, it means that a company
owns assets and it can sue and be sued. A company is owned by shareholders.
Shareholders have limited liability, i.e. they can lose the money they have invested
but not their personal assets.
The owners must complete a memorandum of association and the articles of
association. The memorandum includes: name of company, company objectives,
location of registered office, the articles of association are the internal rules of the
company, e.g. powers of directors, rights of shareholders, types of share...
There are two types of companies:
Private company (Ltd):
1. Must have ‘Ltd’ after its name.
2. Restrictions can be placed on sale of shares.
3. No minimum capital.
4. Not allowed listing on Stock Exchange.
5. Usually smaller than plc.
Public company (plc):
1. Must have plc after its name.

STARTING A BUSINESS
2. Can be quoted on Stock Exchange.
3. Minimum capital: £50.000
4. Shareholders have right to sell their shares to whoever they want.
5. Usually larger than Ltd.
Advantages of being a plc compared to a Ltd
1. Access to more share finance (can sell shares to the general public)
2. Greater status (perceived as bigger and more successful than Ltds)
3. Higher public profile (likely to get more media coverage)
4. Can use shares to make takeover bid (paper offer)
Disadvantages of being a plc compared to a Ltd
1. Have to disclose more information in accounts.
2. More capital is needed.
3. More vulnerable to takeover (cannot restrict who shareholders sell their
shares to)
4. May come under pressure to change objectives from new investors.
Reasons to remain a private limited company
1. Need less capital.
2. Can control the company.
3. Can control its shares.
4. Less government regulations.
COMPANIES (definition)

STARTING A BUSINESS
Ltd
plc

STARTING A BUSINESS
ACTIVITY 2:
All the students must come back to their original groups and explain what they
learned to the other members, then they have to complete this grid regarding their
own business.
SOLE TRADER
PARTNERSHIP
PRIVATE COMPANY (Ltd)
PUBLIC COMANY (plc)
Decide which business format is more suitable for your company. Justify your choice.

STARTING A BUSINESS
ACTIVITY 3
No matter what your choice was, fill in this agreement of partnership.
Partnership Agreement
1. Partners
___________________________________________ (Partners) make the following Partnership Agreement.
2. Creation of Partnership
As of ___________________, the Partners agree to enter into a Partnership for the purpose of operating a business
known as: ____________________________________ (Partnership Business).
The name of the Partnership (if different from name of Partnership Business) shall be:
____________________________________ (Partnership Name).
3. Nature of Partnership Business
The Partnership Business will consist of the following business activities:
____________________________________________________________________________________________
4. Contributions to the Partnership
The Partners will make the following contributions to the Partnership:
Partner Name Cash Contributions Other Contribution
(describe property
and/or work; give cash
value)
Total Contribution
Value
Total cash value:
Total cash value:
Total cash value:
Total cash value:

STARTING A BUSINESS
5. Profit and Loss Allocation
The Partners will share business profits and losses as follows:
[ ] in the same proportions as their contributions to the business.
[ ] as follows: __________________________________________________.
6. Management of Partnership Business
The Partners will have the following management powers and responsibilities:
[ ] The Partners will have equal management powers and responsibilities.
[ ] The Partners will share management powers and responsibilities as follows: ________________.
7. Addition of a Partner
A new Partner may be added to the Partnership under the following conditions:
[ ] unanimous vote of all Partners.
[ ] majority vote of Partners.
[ ] other conditions: __________________________________________.
8. Departure of a Partner
A Partner can be expelled by:
[ ] unanimous vote of the other Partners.
[ ] majority vote of the other Partners.
Any Partner who leaves voluntarily will give at least 30 days' written notice.
If any Partner leaves the Partnership for any reason, including voluntary withdrawal, expulsion, or death, the
Partnership will [ ] survive. [ ] dissolve.
If the Partnership survives, the remaining Partner(s) will pay, within a reasonable time, the departing Partner, or the
deceased Partner's estate, the fair market value of the departing Partner's share of the business as of the date of his or her
departure. The Partnership's accountant will determine the fair market value of the departing Partner's share of the
business according to the following method: _____________________.
9. Dispute Resolution
If a dispute arises under this Agreement, the Partners agree to first try to resolve the dispute with the help of a mutually
agreed-on mediator. Any costs and fees other than attorney fees will be shared equally by the Partners. If it is
impossible to arrive at a mutually satisfactory solution, the Partners agree to submit the dispute to binding arbitration in
the same city or region, conducted on a confidential basis pursuant to the Commercial Arbitration Rules of the
American Arbitration Association.
10. Amendment of Agreement

STARTING A BUSINESS
This agreement cannot be amended without the written consent of all Partners.
11. Partner Signatures
Name: ____________________________________
__________________________________________
Signature
Date: _____________________________________
Address: __________________________________
__________________________________________
Social Security # ____________________________
Name: ____________________________________
__________________________________________
Signature
Date: _____________________________________
Address: __________________________________
__________________________________________
Social Security # ____________________________
Name: ____________________________________
__________________________________________
Signature
Date: _____________________________________
Address: __________________________________
__________________________________________
Social Security # ____________________________
ACTIVITY 4
Try to find the difference between the U.K. and the Spanish business formats.

STARTING A BUSINESS
unit 7: practising business
Lesson 1: Are you able to sell your product or service?
ACTIVITY 1
How good would you be at selling your business? Read the list of phrases. What do
they all mean? In your group, put the phrases in the correct, logical order.
CLOSE THE SALE
HELP THE CUSTOMER TO CHOOSE
OPEN THE SALE (GREET THE CUSTOMER)
THANK THE CUSTOMER
SHOW THE GOODS
SUGGEST ADDITIONAL SERVICES
HELP THE CUSTOMER TO CHOOSE
DISCUSS THE OBJECTIONS
ACTIVITY 2
Match all this expressions with the stages of the selling process you made up in
activity 1.
You should/ you shouldn’t....
I think/ I don’t think you should....
I’d advise you to....
What about ...?
How about ....?
Why don’t you try... ?
That’s a good idea.
That’s a possibility.
That’s out of the question.
I don’t think that’s the answer.
I’m not sure about that.
How much are they?
That’s expensive!
I’m surprised the discount isn’t higher
What discount did you expect?
You can’t have 9 per cent.
I’m sorry but we always do this.
We offer and extra warranty period, an early delivery, a good support documentation (a full set of manuals, free of
charge)
Hello! Can I help you?
The product/service has no need to be introduced: everybody knows how good it is.
First with this p/s you can...Secondly...And finally...

STARTING A BUSINESS
You can rely on...
You can be sure you are not going to have problems
I can offer you a long guarantee
Believe me I have tried it
It has been proved
Everybody who has it is very satisfied
If you buy it you will realise that..
If you buy it you will be able to...
If you buy it you will have...
If you have any problem we can solve it: technical assistance (warranty), home delivery, payment facilities...
If you are not satisfied we will refund your money.
ACTIVITY 3
In pairs, one of you is the seller and the other the buyer. Using the list to help you,
make the sale. Then swap over.
Here are some useful tips for a successful sale.
1- Be charming and act honestly.
2- Be confident about your product.
3- Communicate enthusiasm.
4- Straight to the heart: Mankind is governed more by their feelings
than by reason.
5- Don’t sell the feature, sell the benefit.
6- Explain yourself correctly and clearly.
7- Be succinct.
ACTIVITY 4
In pairs do your selling roleplay in front of the rest of the students, then they have to
assess the seven points. Finally they must say what they think about your
performance, will they buy your product?

STARTING A BUSINESS
Lesson 2: Business roles.
In deciding how you will handle different situations that may occur when you have
your own business, it can be very useful to try them out beforehand. This will help
you to discover the best way of doing something.
ACTIVITY 1
Role play: try it with these situations. Divide into groups (each group has to deal with
one of these situations), and decide who will play each part. Take some time to decide
what sort of thing the person you are playing will be concerned about.
a) One of your suppliers keeps letting you down. However, there is no one
else you can use. You go to visit your supplier to make sure that the
supplies are more regular in future. The supplier, though, wants to start
charging your more money.
b) You have gone to the bank manager to try to borrow £10.000. This is
your first meeting with the bank manager. She/he knows nothing at all
about your business.
c) You are trying to sell your product or service to a customer. This
customer could be very good for you and could provide you with a lot of
useful contacts. So it’s important that you create a good impression. The
customer wants to keep the price as low as possible.
NOTE: you can do it first in Catalan or Spanish and then try to translate it.
ACTIVITY 2
Perform your role play in front of the rest of the groups, so they have to discuss what
happened and how you could have handled each situation better.
ACTIVITY 3
In business problems can happen. When you are working on your own, it can be
difficult to find a solution. When you get together with other people, it can be easier to
find a way out.
Get together with a group of other people, and write down all the solutions (at least 5
for each) you can think of –no matter how silly they may seem- to solve these
problems.
a) You are on your way to deliver a vital consignment of goods to a very
valuable customer. Your van breaks down on the motorway. What can
you do? (Remember that the most important thing is not to let our
customer down).

STARTING A BUSINESS
b) You have recently hired someone to work for you, she or he is good at
the job, but keeps arriving late in the mornings and after lunch. What do
you do?
c) All your time is taken up making the business pay. You have no time to
plan or to expand. What can you do?
ACTIVITY 4
Discuss what solution is best, and range them from 1 to 5. Explain your solutions to
the rest of the class.

STARTING A BUSINESS
Lesson 3: Solving problems.
Accidents do happen. Sometimes things are not as good as we want them to be.
Clients complain, suppliers are not on time, workers have problems, machines don’t
work properly, the organization fails...You have to deal with all of this.
ACTIVITY 1
Write a letter of complaint. Imagine you are a dissatisfied client, and you want your
problem to be solved or your money to be refunded. If you don’t know how to write it
follow the instructions below:
Letters of complaint usually include the following stages:
• Background
• Problem - cause and effect
• Solution
• Warning (optional)
• Closing
1. Background
This section describes the situation;
e.g.
 I am writing to
inform you that the
gods we ordered
from your company
have not been
supplied correctly.
 I attended your
exhibition Sound
Systems 2008 at the
Fortune Hotel (22-25
January) and found it
informative and
interesting.
Unfortunately, my
enjoyment of the
event was spoiled by
a number of
organisational
problems.
 I am a shareholder of
Sunshine Bank and I
am very concerned
regarding recent
newspaper reports
on the financial
situation of the bank.
Your company is
listed as the auditor
in the latest annual
report of the bank,

STARTING A BUSINESS
so I am writing to
you to ask for an
explanation of the
following issues.
 I am writing to
inform you of my
dissatisfaction with
the food and drinks
at the 'European
Restaurant' on 18
January this year.
2. Problem
Cause:
 On 14 November
2008 we placed an
order with your firm
for 12,000 ultra
super long-life
batteries. The
consignment arrived
yesterday but
contained only 1,200
batteries.
 Firstly, I had
difficulty in
registering to attend
the event. You set up
an on-line
registration facility,
but I found the
facility totally
unworkable.
 You sent us an
invoice for £10,532,
but did not deduct
our usual 10%
discount.
 We have found 16
spelling errors and 2
mis-labelled
diagrams in the
sample book.

STARTING A BUSINESS
Effect:
 This error put our
firm in a difficult
position, as we had
to make some
emergency
purchases to fulfil
our commitments to
all our customers.
This caused us
considerable
inconvenience.
 Even after spending
several wasted hours
trying to register in
this way, the
computer would not
accept my
application.
 I am therefore
returning the invoice
to you for correction.
 This large number of
errors is
unacceptable to our
customers, and we
are therefore unable
to sell these books.
3. Solution
 I am writing to ask
you to please make
up the shortfall
immediately and to
ensure that such
errors do not happen
again.
 Could I please ask
you to look into
these matters.
 Please send us a
corrected invoice for
£9,479
 I enclose a copy of
the book with the
errors highlighted.
Please re-print the
book and send it to
us by next Friday.
4. Warning (optional)
 Otherwise, we may
have to look

STARTING A BUSINESS
elsewhere for our
supplies.
 I'm afraid that if
these conditions are
not met, we may be
forced to take legal
action.
 If the outstanding
fees are not paid by
Tuesday, 2
December 2008, you
will incur a 10% late
payment fee.
5. Closing
 I look forward to
receiving your
explanation of these
matters.
receiving your
payment.
hearing from you
shortly.
Politeness
The tone of complaint letters should not be aggressive or insulting, as this would annoy the
reader and not encourage them to solve the problem. In addition, questions such as 'Why
can't you get this right?' should not be included.
Content
6. The content should contain enough
details so that the receiver does not
have to write back requesting more.
7. Legal action is not normally threatened
in the first letter of complaint, unless
the situation is very serious.

STARTING A BUSINESS
Here you have an example.
Fortune Goods
317 Orchard Road
Singapore
21 November 2008
Attn: Mr David Choi
Sales Manager
Everlong Batteries
171 Choi Hung Road
Hung Hom
Hong Kong
Dear Mr Choi
Re. Order No. 768197
I am writing to inform you that the goods we ordered from your company have not been supplied correctly.
On 14 November 2008 we placed an order with your firm for 12,000 ultra super long-life batteries. The consignment
arrived yesterday but contained only 1,200 batteries.
This error put our firm in a difficult position, as we had to make some emergency purchases to fulfil our
commitments to all our customers. This caused us considerable inconvenience.
I am writing to ask you to please make up the shortfall immediately and to ensure that such errors do not happen
again. Otherwise, we may have to look elsewhere for our supplies.
I look forward to hearing from you by return.
Yours sincerely
J. Wong
J. Wong
Purchasing Officer
ACTIVITY 2
Answer the letter of complaint, accepting or rejecting it.
Useful Expressions
Acknowledging receipt of a complaint letter
• Thank you for your letter of … regarding / concerning / in connection with …
• I refer to your letter of … about / relating to …
Apology for the error or fault
• We must apologise for …
• We sincerely apologise for …

STARTING A BUSINESS
• Please accept our apologies for …
• I would like to apologise for the error made by our company in (verb+ing)
Accepting the Complaint
• We agree that the usual high standards of our products / services were not met in this instance.
A short explanation of the fault
• Introductory phrase
o As a result of our investigation, we found that... (Not: After our investigation...)
• Causes
o The error was caused by … / was due to …
o Apparently, the problem was the result of … / resulted from …
o The cause of / reason for the mistake was …
• Effects
o As a result …
o This led to …
o Consequently …
• Solutions
o We have modified / changed our ...
o We have implemented a system to...
o To prevent re-occurrences we have set up a verification procedure.
• Assurances
o We assure you that this will not happen again.
Investigation to be made
• We are currently investigating the cause of ...
• We will investigate the cause of...
Proposal to settle the difficulty
• As a gesture of our regret, we are prepared to …/ we are willing to …/ we would like to …
• To show goodwill, we will …
An offer to take goods back, make a replacement, give a discount etc.
• We have dispatched the new items by express courier. They should arrive by Friday, 28 November 2008.
• To show our goodwill, we would like to offer you a 5% discount on your next order with us.

STARTING A BUSINESS
Regret at dissatisfaction
• While we can understand your frustration, ...
• We understand how disappointing it can be when your expectations are not met.
Rejecting responsibility for the problem leading to the complaint
• I regret to inform you that …
• I am afraid that …
• Unfortunately, I must point out that …
Reasons for the rejection
• This is because the guarantee period has expired.
• This is due to the fact that the guarantee period has expired.
If a third party (another person or organisation) is to blame, direct the complainer to that party
• We therefore suggest that you contact...
A concluding paragraph aiming at retaining the goodwill of the customer
• We look forward to receiving your further orders, and assure you that they will be filled correctly / promptly.
EXAMPLE
Everlong Batteries
171 Choi Hung Road
Hung Hon, Hong Kong
Tel/Fax 2235 2449
25 Nov 2008
Mr J Wong
Purchasing Officer
Fortune Goods
317 Orchard Road
Singapore
Dear Mr Wong
Order No. 2639/L
Please accept our apologies for the error made by our company in filling your order no. 2639/L dated Friday, 21
November 2008.
You ordered 12,000 size Ultra super-long-life premium batteries, but our dispatch office sent 1,200. This was due to a
typing error.
The balance of 10,800 batteries was dispatched by express courier to your store this morning and will arrive by
Wednesday, 3 December 2008.
Since we value your business, we would like to offer you a 10% discount off your next order with us.
We look forward to receiving your further orders and assure you that they will be filled correctly.
Yours sincerely
David Choi

STARTING A BUSINESS
David Choi
Distributions Manager

STARTING A BUSINESS
ACTIVITY 3
Role play: make the same complaint but now using the telephone. Here you have
some useful expressions.
ANSWERING THE THELEPHONE
How can I help?
Can I speak to …, please?
Who’s calling, please?
Please hold
I’ll just put you through
Could I speak to……please?
Who shall I say is calling?
Just a second
I’ll see if he’s in
I’ve got ……..on the phone for you
Hang on a moment
EXPLAINING THE PROBLEM
I want to make a complaint about…
I ask for… and I receive…
You promise/assure me that…
It doesn’t work properly…
First…second…and finally…
This is not what you tell me…
The amount is not correct…
I have been having problems since…
I haven’t received the product yet
There is a mistake in the invoice
The color is not the correct one
I felt sick after eating your menu
My hair is falling down after you put me color
The internet connection is not working since yesterday
You didn’t told me that I need an extra product to make this works
DEALING WITH THE PROBLEM
You can explain to me what actually is the problem…
Can I take your name?
I understand you are having a few problems
Would you like to just explain from the beginning what’s happened?
I’m sorry for that wait
I don’t know what the problem was
As you can imagine…
I’m sorry about this, Mr Anderson
I can actually look into that for you …
I’m sorry for the inconvenience
I can assure you
Let me check for you
GIVING BAD NEWS
I’m sorry, but we found the missing item here in our factory.
I’m afraid we can’t send them immediately.
SAYING SORRY
I’m very sorry about that.

STARTING A BUSINESS
I apologize for the mistake.
PROMISING TO DO SOMETHING
I’ll look into the problem.
I’ll ship the missing items today.
OFFERING TO DO SOMETHING
Would you like me to send it by express mail?
I’ll send it today

STARTING A BUSINESS
Lesson 4: Hiring employees (the CV)
ACTIVITY 1
Write your CV related to the job needed in your business (unit 3). Here you have an
example. (You can also check the supplementary material).
Carmen Lopez Duran
Profile
I am keen to follow a career in Tourism or Hotel Management. I am well-organised, highly motivated and have
excellent communication skills. In addition I am reliable, flexible, and quick to learn.
Personal details
Address Avenida de la Plata 47
Grenada 18 752 Spain
Tel 123 456 789
Email Carmello@ etc.com
Date of birth 25 Nov 1980
Marital status Single
Education
1998 - 2000 Universidad de Granada Diploma in Business Studies with Tourism
1990 - 1998 Instituto Cervantes, Granada Bachillerato (A Level equivalent) Grade B
Professional Experience
2000 - present Hotel Xyz, Notown
Assistant to Conference Manager
Responsible for providing administrative support, answering enquiries, taking bookings, arranging catering.
Employee of the Year, 2001.
Summer 2000 Company Xyz. Notown
Social/Sports Officer
In charge of escorting groups of foreign students,
Arranging schedules, planning social events,
Organising sports activities, managing a budget.
Interests
Yoga, swimming, skiing, classical music, theatre, current affairs
Additional Skills
• Fluent English - IELTS score 6.5
• Working knowledge of French
• Clean driving licence
• Computer literate (Word, Excel, Powerpoint)
Referees
Antonio Palma Plazas, Conference Manager, Primavera Hotels

STARTING A BUSINESS
Mercedes Garrido Vazquez, Regional Director, Eurostudy Ltd
Lesson 5: Hiring employees (the interview)
ACTIVITY 2
Role play: one or two of you must be the interviewers and the other the interviewed,
each of you have to prepare the questions and the answers. After rehearsing you
must perform in front of the whole class and the rest of the students must decide if
the candidate is suitable or not, and also if the interviewer’s questions are suitable or
not.
Here you have some useful tips for a successful job interview, these 10 points will be
assessed in order to decide if you are the best candidate.
To perform well at interview you must convey the following in your descriptions of your character and ability:
1. Motivation: Take the opportunity to ask questions of your interviewer. This will convey enthusiasm
and motivation, a thirst for knowledge coupled with a desire to get things done.
2. Energy and Drive: Someone who is prepared to put in the extra effort required to get the job done.
3. Confidence: Display a confidence and poise in your interactions with individuals at all levels in the
organization.
4. Determination: Not to be confused with stubbornness. Convey a desire to conquer problems
despite difficult situations.
5. Attitude: Someone who is open and friendly but professional always, a team player.
6. Reliable: Self-motivated with an ability to work independently with a minimum of supervision.
7. Honesty and Integrity: Each company has it’s own code of conduct. Display an ethical
responsibility for all actions undertaken by you both positive and negative.
8. Listening Skills: Be an active listener. Take time to listen, assimilate the information and respond.
9. Analytical Skills: Ever more important, weigh up each problem and find a balanced solution.
10. Dedication: Display pride in your work and the dedication to see each task through to completion in
a timely manner.
But first look and the questions and answers you have below and try to match them.
JOB INTERVIEW: POSSIBLE QUESTIONS
Why did you choose this company?
What are your strengths/weaknesses?
How would your friends describe you?
What is your greatest achievement?
How well do you work in a team?
Where will you be in 5 years’ time?
Have you ever had a difficult boss?
Have you worked abroad in the last five years?
Have you ever managed a team?
Have you studied any other languages apart from English?
JOB INTERVIEW: POSSIBLE ANSWERS

STARTING A BUSINESS
People say I’m sociable, organized, and decisive
Because I think I will find the work environment both challenging and rewarding
I have excellent time management, but I can be impatient for results
I always support my colleagues and believe we should word towards a common goal
Leading the University football team to the national Championships
My aim is to have a position in the Management Team.
No, I haven’t. But I live in Spain for a year, so I can speak Spanish pretty well.
Yes, In fact that’s why I resigned from my first job after only six months.
Yes, I have. I was in charge of ten technicians when I worked for Olivetti.
Secondly make a brief description or yourself and prepare for answering about your
skills (you can use the one you made in unit 1, and the examples you have below).
WAYS OF DESCRIBING YOURSELF
Thoughtful, outgoing, independent, attentive to detail, energetic, ambitious, adaptable, patient, creative,
persuasive…
YOUR SKILLS
SKILLS EXAMPLES
Communication – the ability to get on
with a wide range of people.
Team working – the ability to be an
effective team leader or team
member
IT skills – most jobs these days need
some IT skills.
Good attitude – hard-working, honest,
polite, co-operative.
Problem solving – using your initiative
to find answers
Enthusiasm – employers like
someone positive.
Quick learner – so you can take on
new tasks.
Determination – shows you are keen
to succeed.
Flexibility – doing a variety of tasks to
achieve a common aim.

STARTING A BUSINESS
Finally design your interview, try to use some of the questions and answers you have
above, and also use the supplementary material.

STARTING A BUSINESS
unit 8: prepare a business plan
Lesson 1: Writing the perfect business plan.
Five Important Tips
Before You Start!
1. The business plan should tell a compelling story about your business, explaining who, what, when, where, how
and why.
2. Your plan should be focused and clear. It’s not about the number of pages or style of the cover.
3. The plan should define specific business objectives and goals with general parameters
to guide the organization.
4. Writing a business plan should force logic and discipline into a business.
5. A good business plan is a living document.
It should be updated regularly.
Business Plan Template
1) Cover
Your Company Name
Street Address
City, State & Zip Code
Phone Number
E-Mail Address
Web Address
Business Plan
Date
1) Table of Contents
1. Table of Contents…………………………………
2. Executive Summary………………………………
3. Business Description & Vision………………….
4. Definition of the Market………………………….
5. Description of Products and Services…………….
6. Organization & Management…………………….
7. Marketing and Sales Strategy…………………….
8. Financial Management……………………………
9. Appendices……………………………………….
2) Executive Summary
This section should:
• Be written last
• Provide an enthusiastic snapshot of your company, explaining who you are, what you do and why
• Be less than 2 pages
After reviewing this section the reader should:
• Want to learn more about your business
• Have a basic understanding about your company

STARTING A BUSINESS
3) Business Description & Vision
This section should include:
• Mission statement (business purpose)
• Company vision (statement about company growth)
• Business goals and objectives
• Brief history of the business
• List of key company principals
After reviewing this section the reader should know:
• Who the business is and what it stands for
• Your perception of the company’s growth & potential
• Specific goals and objectives of the business
• Background information about the company
4) Definition of the Market
• Describe your business industry and outlook
• Define the critical needs of your perceived or existing market
• Identify your target market
• Provide a general profile of your targeted clients
• Describe what share of the market you currently have and/or anticipate
• Basic information about the industry you operate in and the customer needs you are fulfilling
• The scope and share of your business market, as well as who your target customers are
5) Description of Products and Services
• Specifically describe all of your products and services
• Explain how your products and services are competitive
• If applicable, reference a picture or brochure of your products, which would be included in the plan’s appendix
• Why you are in business
• What your products and services are and how much they sell for
• How and why your products & services are competitive
6) Organization & Management
• Provide a description of how your company is organized as well as an organization chart, if available
• Describe the legal structure of your business (proprietorship, partnership, corporation, etc.)
• Identify necessary or special licenses and/or permits your business operates with
• Provide a brief bio description of key managers within the company
• The legal form of ownership for your business
• Who the leaders are in your business as well as their roles
• The general flow of operations within the firm
7) Marketing and Sales Strategy
• Identify and describe your market – who your customers are and what the demand is for your products & services
• Describe your channels of distribution
• Explain your sales strategy, specific to pricing, promotion, products and place (4Ps)
• Who your market is and how you will reach it
• How your company will apply pricing, promotion,product diversification and channel distribution to sell your products
and services competitively

STARTING A BUSINESS
8) Financial Management
This section should include:
• Estimate of start-up costs
• Projected balance sheet (1 year forward)
• Projected income statement (1 year forward)
• Projected cash flow statement (12 months forward)
If Applying for a Loan
• Current personal financial statement on each principal
• Have a good understanding regarding the financial capacity and/or projections for your company
9) Appendices
This section should include as attachments:
• Company brochures
• Resumes of key employees
• List of business equipment
• Copies of press articles and advertisements (if available)
• Pictures of your business location and products(optional)
• Information supporting the growth of your industry and/or products (optional)
• Key business agreements, such as lease, contracts, etc.(optional)

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