1. Developing a Business Model
Starting up a Business
Developing a Business Model

2. Key business vocabulary
Contents 1
The Business Model 2
Before you start 3
Start-up phase 4
Key business vocabulary

3. The Business Model
How to make money from the products and services offered
The Business Concept
A concise description of an opportunity that contains four essential elements:
The customer definition
The value proposition and compelling story
The product/service
The distribution channel
(production, wholesale, retail, customer)

4. The Five Stages of a Business’s Life Cycle
Pre Start-up
Start-up
Growth
Maturity
Rebirth or Decline
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5. Pre-start-up phase Four key issues: Opportunity recognition
Testing concept feasibility
Developing a business plan
Acquiring resources and personnel
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6. Opportunity Recognition
The process of using creative skills to identify a new innovation - a product, service, process, or marketing method.
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7. Testing concept feasibility
Three essential elements required to test
a potential business idea:
What is the product and/or service that is the basis for the business?
Who is the customer likely to be?
What is the benefit of your product/service to the customer?

8. Developing a business plan
So what if …?
Who cares…?
Why you…?
Where are you going…?
How will you get there…?
Advantages and disadvantages of running
your own business?
How do you make money…?

9. Before you start
It is critical to choose the right legal structure of your business.

10. Legal structures for start-ups
The most popular are:
Sole trader (creating your own business)
Partnership
Limited liability companies

11. Business models Established Businesses or Franchises
Social enterprises

12. A franchise
In cases when one wants to run a business but does not have a specific business idea.
When the franchisor (owner of a business) grants a license to another person or business (the franchisee) to use his business idea.
The franchisee trades under the brand name of the franchising business that gives help and support.

13. A social enterprise A business with primarily social objectives.
The profit is reinvested for social purpose of the business or of the community.
If it is a charity, it gets a number of benefits, including tax relief.

14. Test for a start up business
Am I really interested in this business opportunity?
Is anyone else interested?
Will people pay for what is being offered?
Why me?

15. Why me? - Are you: warm and accepting vs. cold and distant
dependable vs. conflicting
cooperative and collaborative vs. competitive
knowledgeable and skilled vs. inept (incompetent)
open vs. closed
supportive vs. controlling
secure vs. risk averse
genuine vs. hypocritical
respectful vs. disrespectful
negative vs. positive
egalitarian vs. superior

16. Start-up phase Three key issues: Finding customers
Building a structure
Financing

17. Finding customers
Who is most likely to purchase the product or service at market introduction?
What do these customers typically buy, how do they buy it, and how do they hear about it?
What is their buying pattern? How often do they buy?
What are the customers’ needs and how can the new venture meet those needs?

18. Feasibility analysis
Are there customers and a market of sufficient size to make the concept feasible?
Do the capital requirements to start, based on estimates of sales and expenses, make sense?
Can an appropriate start-up team be put together to make it happen?

19. Financing - sources of funding
Personal savings
Money from family and friends
Bank loans
You will be required to pay government tax on the profit you make.

20. Key business vocabulary
1. Business ideas
To develop business ideas
2. Government tax
To pay government tax
3. A sales forecast
To make a sales forecast

21. Key business vocabulary
4. Your turnover
To predict your turnover
5. Financial projections
To create financial projections
6. An estimate of your costs
To make an estimate of your costs

22. Key business vocabulary
7. The right legal structure
To choose the right legal structure
8. Investors’ attention
To draw investors’ attention
9. Your business idea
To develop your business idea

23. Key business vocabulary
10. Market research
To carry out market research
11. Advice on business plans
To seek advice on business plans
12. A company
To launch a company

24. Answer the following questions:
What steps does an entrepreneur have to take before opening a business?
2. What are the ways of financing a start-up?
3. What are the advantages of opening a franchise over running your own private business? Are there any drawbacks?
4. What does a social enterprise spend its profit on?

25. Find the words which have the following meaning:
A self-employed person who directs the affairs of the enterprise, bears all the risks and takes the profits and benefits:
Sole trader
A type of non-profit business that uses its profit to help in solving social or environmental issues:
Social enterprise
A type of business organization in which two or more individuals invest money, skills, and other resources, and share profit and loss:
Partnership

26. Find the words which have the following meaning:
4. An enterprise in its early stage of operations or trading:
A start up enterprise
A type of company whose shareholders’ responsibility is limited by the amount they have invested in case the company goes out of business:
Limited liability company
6. A business ( often a store or a restaurant) that operates under a license granted by a company to market its products or service in a particular territory:
A franchise

27. Synonyms - antonyms
Launch
Massive
Failure
High
Whether

28. Thank You!