UNIT 1 - (LISTENING SCRIPT 1) Check list for starting a business

Small Business Administration

Interview with Wendy Baumann

Ron Johnson: You are listening to the SBA, Small Business Training Network, your small business resource. I’m Ron Johnson. Owning a business is a dream for many Americans. But what does it take to turn your dreams into reality? How can an entrepreneur know if he or she is even ready to start a business? Is there a checklist that can be used to help guide you? With me today to discuss such a checklist for starting a business is Wendy Baumann. She is president of the Wisconsin Women’s Business Initiative Corporation in Milwaukee. SBA provides funding for more than 100 women business centers nationwide designed to help women start and grow their small businesses. Welcome, Wendy.

Wendy K. Baumann: Thank you. It is a pleasure to be here today.

Ron Johnson: Now, Wendy, what are the key items on the checklist?

Wendy K. Baumann: Well, really, you first have to identify and understand the reasons of why you want to start a business. I often ask entrepreneurs or business owners in the early stage to hold out their hands. What is the “who” behind this business? The “what” behind this business? When, where, and most importantly, really, why?

You need to begin at this early stage of doing a self-analysis of your own skills and your experience. You really have to look very carefully early on. Is this business idea viable or feasible? And then ask yourself the hard question, do you have the capacity and the interest to carry out this viable business idea?

And then, finally, still at this early stage is, I think we really need a plan, a written business plan as ideas, something ideal. Something happens when you take all those ideas in your head and really begin to put them down on paper in a formidable plan for yourself and then other supporters along the way.

Ron Johnson: Why is it so important to understand your reasons for wanting to start a business?

Wendy K. Baumann: It is really central to the business plan and to why you are going into business. For instance, I hear a lot of people say, “Ah, I do not want a boss. I do not want to have a boss again.” And I will often say to them, “Well, actually, when you go into business for yourself, every single one of your customers is really a boss.”

So you need to think of why you are going in. Is it because you have an idea and invention and want to bring that to market? Do you believe perhaps you can do something better, faster, different in terms of a product or a service? Do you see a niche in the market and want to go into that niche in the market? Do you want to make a million dollars?

All of those can be very good reasons, but your business plan will look different and your plan in pursuing this business idea will look different depending on really what are the why’s of starting that business.

Ron Johnson: And Wendy, you mentioned the importance of doing a self-analysis. What do you mean by this?

Wendy K. Baumann: Well, in terms of analyzing, do you as an individual, are you an entrepreneur, really? Are you an entrepreneur? Are you somewhat of a risk taker? What is your business acumen and what do you feel about that?
Entrepreneurs generally are a little bit more risky takers. They are a little bit more those leaders and you need to ask yourself early on, what do you think about leadership? Do you enjoy that sense of competition? Do you like getting ahead? Do you like winning? What is your energy level in running a business? Because most business owners, especially in their first and early stages, it is not a nine-to-five job. Sure you might be on in a retail environment nine to five, but when are you doing the books? When are you doing the hiring and firing when you are looking at your business plan and looking at your projections, your financials?

So once you have really asked hard questions and you can answer “yes” to most of them or have good answers, then it might be the time that you are really suited for entrepreneurship.

Ron JohnsonWendy : How do you determine if a business idea is feasible?

K. Baumann: An ideal situation is often a niche in the environment. And by this again, I mean, okay, a niche business is not a coffee shop; a niche business is not a restaurant; a niche business is not a construction company. But it might be niche in terms of where it is located. It might be niche in terms of the type of coffee, the type of food, the specific market available in construction right now. So you need to see if there are some niches to be filled.

And second, again, you need to look at the service of this business. Maybe there are many coffee shops, but maybe they are not of a certain kind of nature, a certain kind of service. You need to see what is going to be unique and distinguishable about your business.

One thing that I love is when customers or when entrepreneurs say, “Ah, there is no competition at all in this whole area.” But then you have to ask yourself a little bit, why is not there any competition? Maybe there is not a market for it.

Ron Johnson: The last point you mentioned was business planning. Why is this so important?

Wendy K. Baumann: Business planning really is critical and we really like to see individuals with that business plan. It is a blueprint. It is a map. It is a guide to going where you eventually want to go. It is an idea you talk about, you know, the idea itself of a business. One needs to talk about the market for that business, which is a really key part, the products, the services, the team and the management, if it is a self-proprietorship, if it is going to be a team of individuals.

What are the financing for that business and how does this plan really link that all together in terms of the words and the numbers that taint the story of ideally a successful business unfolding?

Ron Johnson: If you decide to go ahead and become an entrepreneur, check out SBA’s online small business training network at www.sba.gov/services/training. There you will find more than 25 free courses on all aspects of business ownership. SBA also offers many resources to assist entrepreneurs in starting or growing their small businesses.

These resources include more than 60 district offices with at least one office in every state, more than 10,000 SCORE counselors who provide free business counseling, over 1,000 small business development centers, and more than 100 women business centers. You can learn more about all of our resources at http://www.sba.gov/.

I would like to thank Wendy Baumann, President of the Wisconsin Women’s Business Initiative Corporation in Milwaukee, for providing a checklist for starting a business. We will see you soon.
[End of file]
[End of transcript]

http://english7umc.blogspot.com/

UNIT 1 - (READING 1) How to start an international trade business

International trade is one of the hot industries of the new millennium. But it's not new. Think Marco Polo. Think the great caravans of the biblical age with their cargoes of silks and spices. Think even further back to prehistoric man trading shells and salt with distant tribes. Trade exists because one group or country has a supply of some commodity or merchandise that is in demand by another. And as the world becomes more and more technologically advanced, as we shift in subtle and not so subtle ways toward holistic modes of thoughts, international trade becomes more and more rewarding, both in terms of profit and personal satisfaction.

Trading goods and services allows small businesses around the world to compete on a global basis with their larger competitors.

In the past, it was very costly to acquire the commercial intelligence needed to play in the global market place.

Now, equipped with the internet we can access valuable market information and find foreign buyers and local suppliers, anywhere, anytime.

What type of import/export business can are there?

First off, let's take a look at the players. While you've got your importers and your exporters, there are many variations on the main theme:

• Export management company (EMC): An EMC handles export operations for a domestic company that wants to sell its product overseas but doesn't know how (and perhaps doesn't want to know how). The EMC does it all--hiring dealers, distributors and representatives; handling advertising, marketing and promotions; overseeing marking and packaging; arranging shipping; and sometimes arranging financing. In some cases, the EMC even takes title to the goods, in essence becoming its own distributor. EMCs usually specialize by product, foreign market or both, and--unless they've taken title--are paid by commission, salary or retainer plus commission.
  

• Export trading company (ETC): While an EMC has merchandise to sell and is using its energies to seek out buyers, an ETC focuses on the other side of the trading coin. It identifies what foreign buyers want to spend their money on and then hunts down domestic sources willing to export. An ETC sometimes takes title to the goods and sometimes works on a commission basis.
  

• Import/export merchant: This international entrepreneur is a sort of free agent. He has no specific client base, and he doesn't specialize in any one industry or line of products. Instead, he purchases goods directly from a domestic or foreign manufacturer and then packs, ships and resells the goods on his own. This means, of course, that unlike the EMC, he assumes all the risks (as well as all the profits).

In all of the above cases, should you be in need of assistance when exporting or importing, it is recommended that you enlist the services of a freight forwarder and/or customs broker. These people are familiar with the details of importing and exporting and can help you with such matters as clearing your goods through customs, documentation procedures, shipping, export restrictions and regulations, and foreign import regulations.

• Manage your business from start to finish
  
  Careful planning is fundamental to success.
  
  Successfully managing a business requires specific management skills in addition to knowledge of key business practices.
  
  
• Asses your leadership traits, decision-making skills, and how to manage your employees.

• Be ready to execute marketing basics, setting prices, filing your business taxes, legal considerations, forecasting for future growth, and financing options.

• Write your business plan, which is a guide to starting and running your business. This plan will encourage loans, promote growth, and provide a map for you to follow.
  
  It explains
  – who you are,
  – why you’re in business,
  – what you do, how you do it,
  – where you operate,
  – how you will generate profits,
  – who your customers are, and
  – why your business is important.

http://english7umc.blogspot.com/