TASK 8.4 Writing
Write an essay on topic: How motivate the employees to work more efficiently.
TASK 8.5 Presentation
Make a quick SWOT analysis for a company / country / city / educational institution that you know. Present it to some colleagues and ask for questions.
SELF-STUDY 9
TASK 9.1 Reading
Read the text about setting up and growing a business. Give definitions of underlined phrases and learn them.
Initial idea
Someone has an idea for a new business (a 'start-up'). Maybe they spot a gap in the market, or maybe they have an idea that is similar to existing offers, but with a competitive edge. Potential sources of finance for this new business include self-funding, backers such as friends and family members, a bank loan, and a venture capital firm. A bank will want some sort of security in case the loan is not repaid, and sometimes the person's house is offered as collateral. The fourth option, venture capital (VC), is attractive for businesses with a high profit potential in the medium term, but high start-up costs. A VC company will offer funds and take on the risk of the business failing, but in exchange will want a large number of shares. They aim to sell these later, when the business goes public.
When financing is in place, the business is registered as a legal entity: sole trader, partnership, limited company, etc.
Early months and growth phase
Now the business can start trading. The risk of failure in the first two years is very high. Often the problem isn't sales, but cash flow: the company has to wait for its invoices to be paid, and meanwhile the debts are piling up. The bank will only extend its line of credit up to a point.
But hopefully the business achieves a critical mass of customers, and establishes itself in the marketplace. It enters a growth phase. This early growth tends to be organic - turnover increases, the company employs more staff, it develops a supply network, etc. The majority of small companies just continue in this way - growing or shrinking year by year depending on their managerial skills and general market conditions.
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