Business Start-ups – answers and notes
A Introduction
Do you know anyone who has tried to set up in business? Have you any idea how they went about it, or what the risks were? Have you any idea what the rewards proved to be?
Did you write ‘anyone‘ as one word? Other examples of this are anywhere / anybody / anything / anyhow
Any idea – we use any as a separate word with a singular noun to mean an example of something – it doesn’t matter what or which. Eg "Could you bring me a book on Italian artists from the library – any book you see will be fine." Any help would be appreciated.
Structure: did you notice the position of the verb ‘were‘ at the end of the clause? Eg I had no idea what the date of their departure to Spain was / would be. native speakers of English sometimes put the verb in the wrong place in this type of structure.
B Perhaps you’ve come into a sum of money and put some money by for a rainy day and now want to put some money into a small business. But how do you go about it? Probably the first thing to do if you feel you are cut out to set up your own business and that your business idea is a good one is to draw up a detailed blueprint.
to come into – phrasal verb – to inherit (money or property)
If you put something by / away you save it for future use. Eg She’s put the toy garage away in case they have any young children visit them or She’s put away the toy garage ….
a rainy day – plural rainy days – 1) A day on which it rains all or most of the day. 2) (idiomatic) A difficult period of need, when things do not go right. Eg I’ve got some money in the bank for a rainy day. Sometimes people call money put by for a sudden unexpected bill or cost their ‘rainy day account‘.
put some money into sth – to invest in sth
to go about sth – tackle (a problem or task). Eg He‘s gone about settling family disputes in a really admirable way.
Punctuation: Did you remember to include the question mark at the end of the question?
to be cut out to + verb / for + noun / pronoun – idiomatic – to be suited to; to be appropriate / fit for a particular activity or purpose. He’s cut out to run a sports centre. She doesn’t seem exactly cut out for farm life.
draw up – prepare
blueprint – early plan or design which explains how something might be achieved – eg The Home Secretary has introduced a blueprint for dealing with inner-city crime.
C1 The Proposal
Your business plan should begin with a concise overview of your scheme – say why it is a sound investment, and how much start-up capital is required. You should set out your scheme in a factual but attractive way. It should bring out the good points, but not cover up the risks and you must explain how you intend to minimise those risks.
overview – noun – brief summary – of a book, plan or presentation
sound – adj – reliable, reasonable, well judged, secure, competent
start-up capital – finance for a new organization or business venture
bring out – phrasal verb – make noticeable, highlight
cover up – idiomatic – conceal or disguise, mask
D 2 The Product
Describe it in simple terms: what it is and how it is used. Say what its unique selling proposition is, or whether it is cheaper or better quality than existing competition. How does it compare to what is already out there? Is it in the R & D stage or is it already patented? What is its likely lifespan?
proposition – a business offer, idea or suggestion
to be out there – to exist, to be in existence
R & D – research and development
to patent sth – to successfully register an invention with a government agency (so protecting the inventor’s methods and processes for a limited time)
likely – adj – probable
lifespan – noun – length of time for which a person or animal lives, or a thing functions
Punctuation: Did you remember to include the question marks at the end of the 3 questions?
E 3 Financial Projections
Usually it is the sales figures which are the hardest to predict accurately. You will need to describe your target sales territory and define the particular niche in the sector you want to target. You should include detailed statistics to back up your findings.
niche – noun – 1) a shallow recess in a wall, often to display an ornament 2) a comfortable or suitable position in life – eg She’s found her niche, working for the local newspaper. 3) a specialised but profitable corner of the market
back sth up – phrasal verb – support, prove something is true. Eg The college poor exam results backed up their poor inspection report.
F4 The Potential Market
The preparation of forecasts is crucial – how many will you sell and when? At what price? Plan your cash flow / cashflow statements and overheads carefully. Set out your estimated turnover, gross profit margin, net profit before tax and retained earnings.
crucial – adj – decisive or critical, especially for the success or failure of something. eg Your encouragement was crucial – without it the play would never have been staged.
cash flow / cashflow – the amount of money moving into and out of a business or household:eg Our neighbours have had to stop their home improvements – they’ve got a few cash-flow problems at the moment, which they hope will be only temporary.
overheads – plural noun – regular and necessary costs, such as rent and heating that are involved in operating a business or household. Eg If we can reduce our overheads for the next year we could buy a caravan for holidays.
turnover – 1) small pie made from a folded piece of pastry with fruit inside – eg an apple turnover 2) amount of money taken by a business in a particular period
gross profit – income / takings before tax or other contributions and stoppages such as pension costs or national insurance payments
Punctuation: Did you remember to include commas between the various nouns question mark at the end of the question?
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