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

2. 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

3. STARTING A BUSINESS Use a grid to decide which one is better. If you dont reach agreement, then use a voting system. IDEA ADVANTAGES DISADVANTAGES IDEA 1 Example: Cost, experience, competitors, environment, innovation. Example: Price, location, difficult to manufacture ROSA DOMINGO CALPE 2 IES FRANCESC XAVIER LLUCH I RAFECAS

4. 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. ROSA DOMINGO CALPE 3 IES FRANCESC XAVIER LLUCH I RAFECAS

5. 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? ROSA DOMINGO CALPE 4 IES FRANCESC XAVIER LLUCH I RAFECAS

6. 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 ROSA DOMINGO CALPE 5 IES FRANCESC XAVIER LLUCH I RAFECAS

7. 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) ROSA DOMINGO CALPE 6 IES FRANCESC XAVIER LLUCH I RAFECAS

8. 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.. ROSA DOMINGO CALPE 7 IES FRANCESC XAVIER LLUCH I RAFECAS

9. 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 - . ROSA DOMINGO CALPE 8 IES FRANCESC XAVIER LLUCH I RAFECAS

10. 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 wont 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? ROSA DOMINGO CALPE 9 IES FRANCESC XAVIER LLUCH I RAFECAS

11. 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 dont 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 interviewees attention. ROSA DOMINGO CALPE 10 IES FRANCESC XAVIER LLUCH I RAFECAS

12. 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. ROSA DOMINGO CALPE 11 IES FRANCESC XAVIER LLUCH I RAFECAS

13. 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. ROSA DOMINGO CALPE 12 IES FRANCESC XAVIER LLUCH I RAFECAS

14. 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) ROSA DOMINGO CALPE 13 IES FRANCESC XAVIER LLUCH I RAFECAS

15. 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. ROSA DOMINGO CALPE 14 IES FRANCESC XAVIER LLUCH I RAFECAS

16. 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) ................................................... ROSA DOMINGO CALPE 15 IES FRANCESC XAVIER LLUCH I RAFECAS

17. 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 ROSA DOMINGO CALPE 16 IES FRANCESC XAVIER LLUCH I RAFECAS

18. 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: ROSA DOMINGO CALPE 17 IES FRANCESC XAVIER LLUCH I RAFECAS

19. 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. ............................... ROSA DOMINGO CALPE 18 IES FRANCESC XAVIER LLUCH I RAFECAS Key Stage 1 Key Stage 2 PROCES S TIME

20. 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. ROSA DOMINGO CALPE 19 IES FRANCESC XAVIER LLUCH I RAFECAS

21. 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 ROSA DOMINGO CALPE 20 IES FRANCESC XAVIER LLUCH I RAFECAS

22. 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 ..... ROSA DOMINGO CALPE 21 IES FRANCESC XAVIER LLUCH I RAFECAS

23. 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% ROSA DOMINGO CALPE 22 IES FRANCESC XAVIER LLUCH I RAFECAS

24. 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% ROSA DOMINGO CALPE 23 IES FRANCESC XAVIER LLUCH I RAFECAS

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% ROSA DOMINGO CALPE 24 IES FRANCESC XAVIER LLUCH I RAFECAS

26. 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 Total Revenue per day Total Revenue per week Total Revenue per month Total Revenue per year ROSA DOMINGO CALPE 25 IES FRANCESC XAVIER LLUCH I RAFECAS

27. STARTING A BUSINESS 25% of demand: 125photocopies/hour Total Revenue per day Total Revenue per week Total Revenue per month Total Revenue per year 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 ROSA DOMINGO CALPE 26 IES FRANCESC XAVIER LLUCH I RAFECAS

28. STARTING A BUSINESS Make the three estimations: 100% of demand: Total Revenue per day Units/hour * price * hours/day = Total Revenue per week Total Revenue per day * days/week = Total Revenue per month Total Revenue per week * weeks/month = Total Revenue per year Total Revenue per month * months/year = Complete the two other estimations: 50% of demand: Total Revenue per day Total Revenue per week Total Revenue per month Total Revenue per year ROSA DOMINGO CALPE 27 IES FRANCESC XAVIER LLUCH I RAFECAS

29. STARTING A BUSINESS 25% of demand: Total Revenue per day Total Revenue per week Total Revenue per month Total Revenue per year 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 RevenueTotal Materials costTotal 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% ROSA DOMINGO CALPE 28 IES FRANCESC XAVIER LLUCH I RAFECAS

30. 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) ROSA DOMINGO CALPE 29 IES FRANCESC XAVIER LLUCH I RAFECAS

31. 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 ROSA DOMINGO CALPE 30 IES FRANCESC XAVIER LLUCH I RAFECAS

32. 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. ROSA DOMINGO CALPE 31 IES FRANCESC XAVIER LLUCH I RAFECAS

33. 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 STARTING A BUSINESS 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 = ROSA DOMINGO CALPE 32 IES FRANCESC XAVIER LLUCH I RAFECAS

34. 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. ROSA DOMINGO CALPE 33 IES FRANCESC XAVIER LLUCH I RAFECAS

35. 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 dont 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 dont reach the break-even point, redesign your business plan using the solutions you suggest in question number 3. ROSA DOMINGO CALPE 34 IES FRANCESC XAVIER LLUCH I RAFECAS

36. 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 dont 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. ROSA DOMINGO CALPE 35 IES FRANCESC XAVIER LLUCH I RAFECAS

37. STARTING A BUSINESS 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 ROSA DOMINGO CALPE 36 IES FRANCESC XAVIER LLUCH I RAFECAS

38. 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? ROSA DOMINGO CALPE 37 IES FRANCESC XAVIER LLUCH I RAFECAS

39. 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? ROSA DOMINGO CALPE 38 IES FRANCESC XAVIER LLUCH I RAFECAS

40. 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 ROSA DOMINGO CALPE 39 IES FRANCESC XAVIER LLUCH I RAFECAS

41. STARTING A BUSINESS 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.. ROSA DOMINGO CALPE 40 IES FRANCESC XAVIER LLUCH I RAFECAS

42. 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. ROSA DOMINGO CALPE 41 IES FRANCESC XAVIER LLUCH I RAFECAS

43. 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. ROSA DOMINGO CALPE 42 IES FRANCESC XAVIER LLUCH I RAFECAS

44. 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. BUSINESS FORMATS ADVANTAGES DISADVANTAGES 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. ROSA DOMINGO CALPE 43 IES FRANCESC XAVIER LLUCH I RAFECAS

45. 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. BUSINESS FORMATS ADVANTAGES DISADVANTAGES COMPANIES (definition) ROSA DOMINGO CALPE 44 IES FRANCESC XAVIER LLUCH I RAFECAS

46. STARTING A BUSINESS Ltd plc ROSA DOMINGO CALPE 45 IES FRANCESC XAVIER LLUCH I RAFECAS

47. 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. BUSINESS FORMATS ADVANTAGES DISADVANTAGES SOLE TRADER PARTNERSHIP PRIVATE COMPANY (Ltd) PUBLIC COMANY (plc) Decide which business format is more suitable for your company. Justify your choice. ROSA DOMINGO CALPE 46 IES FRANCESC XAVIER LLUCH I RAFECAS

48. 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: ROSA DOMINGO CALPE 47 IES FRANCESC XAVIER LLUCH I RAFECAS

49. 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 ROSA DOMINGO CALPE 48 IES FRANCESC XAVIER LLUCH I RAFECAS

50. 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. ROSA DOMINGO CALPE 49 IES FRANCESC XAVIER LLUCH I RAFECAS

51. 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 shouldnt.... I think/ I dont think you should.... Id advise you to.... What about ...? How about ....? Why dont you try... ? Thats a good idea. Thats a possibility. Thats out of the question. I dont think thats the answer. Im not sure about that. How much are they? Thats expensive! Im surprised the discount isnt higher What discount did you expect? You cant have 9 per cent. Im 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... ROSA DOMINGO CALPE 50 IES FRANCESC XAVIER LLUCH I RAFECAS

52. 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- Dont 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? ROSA DOMINGO CALPE 51 IES FRANCESC XAVIER LLUCH I RAFECAS

53. 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 its 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). ROSA DOMINGO CALPE 52 IES FRANCESC XAVIER LLUCH I RAFECAS

54. 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. ROSA DOMINGO CALPE 53 IES FRANCESC XAVIER LLUCH I RAFECAS

55. 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 dont 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 dont 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, ROSA DOMINGO CALPE 54 IES FRANCESC XAVIER LLUCH I RAFECAS

56. 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. ROSA DOMINGO CALPE 55 IES FRANCESC XAVIER LLUCH I RAFECAS

57. 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 ROSA DOMINGO CALPE 56 IES FRANCESC XAVIER LLUCH I RAFECAS

58. 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. I look forward to receiving your payment. I look forward to 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. ROSA DOMINGO CALPE 57 IES FRANCESC XAVIER LLUCH I RAFECAS

59. 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 ROSA DOMINGO CALPE 58 IES FRANCESC XAVIER LLUCH I RAFECAS

60. 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. ROSA DOMINGO CALPE 59 IES FRANCESC XAVIER LLUCH I RAFECAS

61. 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 ROSA DOMINGO CALPE 60 IES FRANCESC XAVIER LLUCH I RAFECAS

62. STARTING A BUSINESS David Choi Distributions Manager ROSA DOMINGO CALPE 61 IES FRANCESC XAVIER LLUCH I RAFECAS

63. 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? Whos calling, please? Please hold Ill just put you through Could I speak toplease? Who shall I say is calling? Just a second Ill see if hes in Ive 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 doesnt work properly Firstsecondand finally This is not what you tell me The amount is not correct I have been having problems since I havent 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 didnt 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 whats happened? Im sorry for that wait I dont know what the problem was As you can imagine Im sorry about this, Mr Anderson I can actually look into that for you Im sorry for the inconvenience I can assure you Let me check for you GIVING BAD NEWS Im sorry, but we found the missing item here in our factory. Im afraid we cant send them immediately. SAYING SORRY Im very sorry about that. ROSA DOMINGO CALPE 62 IES FRANCESC XAVIER LLUCH I RAFECAS

64. STARTING A BUSINESS I apologize for the mistake. PROMISING TO DO SOMETHING Ill look into the problem. Ill ship the missing items today. OFFERING TO DO SOMETHING Would you like me to send it by express mail? Ill send it today ROSA DOMINGO CALPE 63 IES FRANCESC XAVIER LLUCH I RAFECAS

65. 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 ROSA DOMINGO CALPE 64 IES FRANCESC XAVIER LLUCH I RAFECAS

66. 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 interviewers 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 its 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 ROSA DOMINGO CALPE 65 IES FRANCESC XAVIER LLUCH I RAFECAS

67. STARTING A BUSINESS People say Im 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 havent. But I live in Spain for a year, so I can speak Spanish pretty well. Yes, In fact thats 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. ROSA DOMINGO CALPE 66 IES FRANCESC XAVIER LLUCH I RAFECAS

68. 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. ROSA DOMINGO CALPE 67 IES FRANCESC XAVIER LLUCH I RAFECAS

69. 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. Its 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 ROSA DOMINGO CALPE 68 IES FRANCESC XAVIER LLUCH I RAFECAS

70. 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 companys growth & potential Specific goals and objectives of the business Background information about the company 4) Definition of the Market This section should: 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 After reviewing this section the reader should know: 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 This section should: 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 plans appendix After reviewing this section the reader should know: 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 This section should: 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 After reviewing this section the reader should know: 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 This section should: 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) After reviewing this section the reader should: 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 ROSA DOMINGO CALPE 69 IES FRANCESC XAVIER LLUCH I RAFECAS

71. 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 After reviewing this section the reader should: 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) ROSA DOMINGO CALPE 70 IES FRANCESC XAVIER LLUCH I RAFECAS

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