Business plan

I wish to set up a refrigerated road transport business, with myself as a sole proprietor.

Initially, I shall have one truck with a load capacity of 1.5 tonnes. It will be fitted with a mobile phone. I shall undertake deliveries for chilled food distributors, offering them a service on which they know they can rely at short notice and in case of emergency. I have made preliminary enquiries with a number of firms, which I contacted while following a marketing course at Cardiff Polytechnic. Their response was very favourable.

I shall drive the truck myself and also employ part-time drivers. My fiancée will help me with administration, book-keeping and telephone enquiries. Her parents have offered us the use of a room in their house as an office, until we can find a small office to rent.

To finance this venture, I have £10,000 capital. My start-up costs will total £25,000. I am therefore seeking a bank loan of £15,000. I can offer the truck (estimated value £20,000) as security.

I have prepared a detailed cash-flow forecast for the first years of operation, and this shows that the break-even point (беззбитковість) is reached after twenty-two months. This assumes a bank loan of £15,000 over five years at an annual percentage rate of 18.5%, with interest-only repayments during the first six months.

6. Draw up your own business plan for a small business using the information given just above (Ex. 4, 5 pp.)

Unit 2

Starting and running

a new business

Vocabulary

1. Match the following Ukrainian words with their English equivalents. Use your dictionary if necessary.

а) існуючий б) набувати, одержувати в) позичати, брати на певний час г) розмір, величина, об’єм д) досягати е) фінансувати є) “впорскування” грошей ж) використовувати перевагу з) збереження и) позика, кредит і) розширювати, розвивати ї) ділити, розподіляти, брати участь в й) заощадження к) власність, майно	л) витрачати гроші м) втрата, збиток н) забезпечення, запорука о) повертати борг п) позичати, давати в борг р) вимагати с) повертати собі, отримувати заново т) застава у) покупка у розстрочку ф) початковий, первинний платіж х) здавати або брати в найм, в оренду ц) розумний, розсудливий
a) savings b) security c) mortgage d) sensible e) existing f) size g) to fund h) to lease i) to lend j) initial payment k) to acquire l) hire purchase m) to borrow from	n) to reach o) loan p) to share q) injection of capital r) to recover s) to take advantage t) to claim u) maintenance v) to spend money w) to repay x) to expand y) possession z) loss

2. Which verbs in A can go with which nouns in B?

Use your dictionary if necessary.

e.g. to start a business

A

Acquire lend take receive borrow carry own reach make start recover fund buy expand hire share claim invest lease pay for spend repay bring in risk

B

Income money equipment business risk development good(s) capital profit loan payment refrigeration unit service(s) ownership decision investment possession(s) advantage(s)

Pre-reading task

Work in small groups.

Have you got any idea where to get the money to start a new business? Do you know what factors will affect the capital requirements of a business?

Preface each answer with one of the following according to what is true for you:

I would like to say… As far as I know… There is no doubt…

I am afraid that… I can only say that…

Reading

1. Read text 3. Were your ideas about ways of getting money to start a new business and factors affecting the capital requirements of a business correct?

TEXT 3

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