The main factors to securing business success

1. The ultimate purpose of developing a business plan is to have a fully functioning, successful business. In the long run, it is fruitless to write a business plan that can raise the funds you want if the enterprise is so poorly conceived that it is bound to fail. 2. So, as you create your plan be certain to address the long-term needs of your business and devise strategies that will enhance both *the overall performance of your company^1 and your personal satisfaction. 3. These factors contribute most to securing business success and should predominate in your planning process: ·The Business Concept

“Even if you have all the money you need, you still need a business plan. A plan shows how you will run your business. Without a plan, you don't know where you’re going, and you can’t measure your progress. Sometimes, after writing a business plan, you may change your approach, or even decide not to go into a certain business at this time” Eugene Kleiner Venture Capitalist

· Understanding the Market

· Industry Health

· Capable Management

· Financial Control

· Consistent Business Focus

· Anticipating Change

4. The Business Concept. Meeting needs is the basis of all business. You can devise a wonderful new machine, but if it doesn’t address some real and important need or desire, people won’t buy it, and your business will fail. Even Thomas Edison recognized this fact when he said, “Anything that won’t sell, I don’t want to invent.”

5. Typically, entrepreneurs get their original business inspiration from one of four sources:

· previous work experience;

· education or training;

· hobbies, talents, or other personal interests;

· recognition of an unanswered need.

6. Occasionally, the impetus will come from the business experience of a relative or friend. As you refine your business concept, keep in mind that successful businesses incorporate at least one of these elements:

________________________________________________________Lesson 8. The main factors of successful business

- Something new. This could be a new product, service, feature, or technology. An example of something new was the fax machine.

- Something better. The something-better element encompasses a better service, lower prices, greater reliability, or increased convenience. Disposable diapers were one such product.

- An underserved or new market. Most often this is an unaddressed niche market, an unserved location, or a market for which there is a greater demand than competitors can currently satisfy. Publishers of guidebooks for computer software recognized a niche market.

- Increased integration. This situation occurs when a single product is both manufactured and sold by the same company, or when a company offers more services or products in one location. An example of increasing integration was the one-hour photo shop.

7. Your business should incorporate at least one of these factors – more than one if possible. Ideally, you can bring a new or better product or service to an identifiable but underserved market. For example, computer companies opened a new market of small businesses by utilizing technology to make less expensive, less complicated laser printers.

8. Evaluate the ways your business concept addresses the four elements described above. If your concept isn’t strong in at least one of them, assess whether your company will truly be competitive.

9. Understanding the market. It is not enough to have a great idea or new invention as the basis of your business. You must also have a market that is sufficiently large, accessible, and responsive. If you can’t reach your market, or it isn’t ready for you, your business will fail. Consider the *automatic teller machine (ATM)² now seen on virtually every street corner. It was invented more than 10 years before it became popular, but the company that initially marketed the ATM was unsuccessful – people weren’t yet willing to trust their banking to machines. Market readiness is one of the most difficult and most unpredictable aspects to measure when examining your market. That is why companies spend substantial amounts of money on market research before launching a product.

10. Even if you are not creating an entirely new product or service, you should attempt to determine if your market is ready for you. For instance, if you are opening a flower shop in a neighborhood where none currently exists, what indications are there that the neighborhood residents are interested in buying flowers? Do they currently purchase flowers at a nearby supermarket? Does the national demographic data on flower purchasers coincide with neighborhood demographics? Perhaps you should conduct a survey of the neighborhood’s residents, asking about their flower-buying habits and preferences.

11. You may not have the funds *to undertake extensive market research³, but even a small amount of analysis can help you *gauge the receptivity of a particular market to your idea⁴. In addition to market readiness, key market factors will influence your choice of marketing strategy and help you make realistic financial projections. When gathering information for your business plan, spend considerable time learning about your market.

12. The more thoroughly you understand the various factors that affect your market, the more likely you are to succeed. (So, don’t forget to read about the other mentioned factors on pp.58-61as а part of your Self - Study.)

2. Explanations to the text

1.... the overall performance of your company... – производительность

(работа) вашей компании в целом.

2. automatic teller machine (ATM) – банкомат

3. undertake extensive market research – предпринять обширное

исследование рынка

4. gauge the receptivity of a particular market to your idea – оценить

восприимчивость вашей идеи определенным рынком

3. Key vocabulary / words and expressions

the Board [bo:d] – n правление

be bound (bind) to – быть oбpeчeнным нa (успех, провал...)

carry through [θru:] – провести

conduct a survey of smth. – провести исследование, сделать обзор

conceive [kәn'si:v] – v постигать, понимать, задумывать

distribution [ֽdistri'bju:∫n] center – оптовая база

in the long run – в общем, в конце концов

lack – n нужда, v недостает

launch [lo:nt∫] a product – выпускать изделие, товар

make a living – зарабатывать

meet needs – удовлетворять потребности

purchase [pз:'t∫eiz] – v покупать, приобретать, oплaчивaть

nearby ['niәbai] – adj. близлежащий

niche [nit∫] market – ненасыщенный (пустой, нищий) рынок

performance [pә'fo:mәns] – n производительность, достижение; выполнение

reliability [riֽlaiә'biliti] – n надежность

secure [si'kjuә] – v обеспечивать, охранять

ultimate ['Ùltimit] – adj. конечный;

virtually ['vз:tjuәli] – adv. фактически, в сущности

4. Find, read and translate the sentences with the new words and word combinations

5.Have you read the text attentively? Give equivalent English phrases to the following Russian ones

неудовлетворенная потребность_______________________________________

фотография за один час____________________________________________

немного информации______________________________________________

выбор маркетинговой стратегии_____________________________________

жители по соседству______________________________________________

подготовленность рынка___________________________________________

полоса везения___________________________________________________

6. General understanding. Answer the questions to the text

1. What is the ultimate purpose of developing a business plan?

2. What factors contribute most to securing business success?

3. What should predominate in your planing process?

4. What is the basis of all businesses?

5. What are the four sources of getting inspiration for the entrepreneurs?

6. Is it enough to have a great idea or new invention as the basis of your

business?

7. What can you tell us about ATM?

8. Why do companies spend substantial amount of money on market research?

9. What can help you gauge the receptivity of a particular market to your

idea?

10. Tell the class what you will do to understand your market.

7. Word formation (Different ways to construct the words or new notions)

7.1 Arrange the following words in pairs of synonyms

work, investigate, for example, want, gather, immediately, name, job, discover, wish, at once, call, explore, find out, for instance, garner.

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