hello everyone and welcome back to English pod my name is Marco my name is Katherine and today we have an upper intermediate level lesson for all of you that's right we're going to be talking business on this occasion on English pod but specifically about planning a business right so before a business opens a lot of planning has to happen that means people will decide what kind of a product they want to sell what kind of a market they want to sell to Etc so that is the focus of today's lesson let's take a listen to
the dialogue for the first time and we'll be back in a minute to talk about what's going [Music] on I've had it I'm done working for a company that is taking me nowhere so what are you going to do just quit that's exactly what I'm going to do I've decided to create my own company I'm going to write up a business plan get some investors and start working for myself have you ever written up a business plan before well no it can't be that hard I mean all you have to do is explain your business
how are you going to do things and that's it right you couldn't be more wrong a well-written business plan will include an executive summary which highlights the idea of the business in two pages or less then you need to describe your company with information such as what type of legal structure it has history Etc well that seems easy enough wait there's more then you need to intr produce and describe your goods or services what they are and how they're different from competitors then comes the hard part a market analysis you need to investigate and analyze
hundreds of variables you need to take into consideration socioeconomic factors from GDP per capita to how many children on average the population has all this information is useful so that you can move on to your strategy and implementation stage where you will describe in detail how you will actually execute your idea jeez is that all almost the most important piece of information for your investors will be the financial analysis here you will calculate and estimate sales cash flow and profits after all people will want to know when they will begin to see a return on
their investment um I think I'll just stick to my old job and save myself all the hassle of trying to start up a [Music] business all right we're back so the guy wanted to open up a business but his friend explained that it's not so easy and gave a lot of interesting words and phrases there he did he seemed a little naive like he didn't really know how much work is involved in opening a business exactly so I think we should take a look at some of the words used on language takeaway language takeaway the
first word is the heart and soul of the process before you open a business it's the business plan all right so the business plan as you said it's a noun and it's basically Bally a document that explains what's going on in the business exactly it's a it's a paper that you write about the business that you want to open and it's a plan so that's what the name says you have to tell what you will do how much money you will spend how much money you will need um you know because if you're asking people
for money they want to know where the money will be spent if it's going to be spent on wise decisions exactly and as you mentioned so you show this business plan maybe to a bank but also maybe to an investor that's right so investor is our next word it's another noun but this noun is a person a person is an investor if he or she gives money to someone else and expects more money to come back right so a person that's starting out a business maybe has enough money himself to open up a business but
sometimes you need extra money so you look for investors people who are interested in giving you money for example I have a cupcake company I want to sell cupcakes to people and I need $11,000 so Marco do you want to be an investor do you want to invest some money yes for sure a cup Cupcake Company that sounds great I know but what happens if I don't sell cupcakes that's a problem for you because you have made a risky investment that's right so that's what happens with investors but now if you want to attract the
attention of your investors with your business plan I think part of the most important aspects of this plan is the executive summary a summ sumary is usually an outline of the important points of a paper or a document so in this case I could say um Catherine's Cupcake Company will sell delicious cupcakes of 10 different flavors to um the market of 5-year-olds to 55y olds people will love them she has a great secret recipe and she plans to Triple her Investments by next year right that's exactly it so if an investor reads the executive summary
which shouldn't be more than two pages long you can pretty much get the idea of what the business is about so if you want more details you have to read the rest of the business plan but mainly with the executive summary you can more or less know what it's all about exactly so a summary like I said is something that should be short and it should give you all of the most important information about something exactly and while they were talking more in depth about you know analyzing things and doing some research and among those
things the girl mentioned the socioeconomic factors okay when I said we going to um sell cupcakes from my company to people between the ages of 5 and 55 um we need to analyze we need to look at those their socioeconomic factors socio comes from the word social it means um where in society they are they're upper class middle class or lower class economic means how much money do they make do they make $10,000 a year or $100,000 a year and so the the kind of people we want to sell my cupcakes to um will be
will change according in to their socioeconomic factors that's right so as you mentioned socio comes from the word social or from society so you're analyzing these factors from society and uh well part of these factors is the GDP per capita so we have two different words there an acronym GDP GDP gross domestic product okay that might seem confusing cuz gross means different things at different times but um in this case domestic means our country So within a country um all of the products added up together right and gross is basically that just all the products
added up together without taking into consideration any other things so the GDP is basically all the goods and services produced in the country within a given time and what about per capita though so per capita comes from a Latin per means for or each and capita is aead so um this is per person so GDP per capita means how much how many goods and services are made divided by the number of people in that place mhm exactly so you you probably have these uh these indicators in your country or your own language as well um
but that's basically it and the acronym is gross domestic product and just to explain a little bit if you see this in Wikipedia or in an encyclopedia um normally a very low GDP per capita is $500 American dollars and a high one would be$ 35,000 35 yeah and that's usually per year right because you um that's usually how it's taken into consideration the time is a year all right so those are the words that we have for you on language takeaway now why don't we move on to a couple of different phrases on fluency Builder
fluency Builder Okay so this important first phrase Marco has to do with our last first phrase uh we had a business plan so what do you do you write up a business plan right and that's a a common way of saying to write or to create to work on a business plan to write up right so it's uh it's something that we say that's very colloquial it's something that is very spoken and uh I can't explain why we say it but you'll sound very fluent if you say I'm going to write up a business plan
or why don't you write up a business plan right so it would be correct to say I'm going to write a business plan or I have to write a business plan but if you use this phrase I'm going to write up a business plan it just it's more fluent right it's just more native like exactly all right and our next phrase is a return on investment okay so earli we talked about Investors the money that they invest is called an investment okay these words are all very closely related and um when Marco decided to give
money to my cupcake business uh he he expects the money to come back um and he expects more actually to come back than what he put in so that's called a return on invest M the money that's the difference so if he gives me $1,000 and I give him back $1,500 in a year he made $500 that's amazing that means it's a good return on his investment right so that's the that's the term that we use a return on investment to so you don't say two return on investment you see a return on investment exactly
it's a thing it's a number it's a quantity it's something you can count right and well in the end after seeing that this uh business plan is not so easy the guy said you know what I'm not going to quit my job and just save myself the hassle what's the hassle the hassle that's a that's an interesting word so if I'm going to save myself the hassle the hassle is like the problem or the the hard work that it involves it's a lot of trouble a lot of trouble so I was going to cook some
dinner tonight but I'm going to save myself the hassle of going to the grocery store and buying it and cooking it by just ordering food right so that's a good example instead of doing all the work of cooking you just save your yourself the hassle pick up the phone and get food delivered to your house right and the word we change here you can say save myself save yourself save his self so you change that pronoun the pronoun exactly so you can save yourself the hassle or I'm just going to save myself the hassle okay
so that's about it for fluency Builder let's listen to today's dialogue one more time and we'll be back in a minute to talk about business [Music] I've had it I'm done working for a company that is taking me nowhere so what are you going to do just quit that's exactly what I'm going to do I've decided to create my own company I'm going to write up a business plan get some investors and start working for myself have you ever written up a business plan before well no it can't be that hard I mean all you
have to do is explain your business how are you going to do things and that's it right you couldn't be more wrong a well-written business plan will include an executive summary which highlights the idea of the business in two pages or less then you need to describe your company with information such as what type of legal structure it has history Etc well that seems easy enough wait there's more then you need to introduce and describe your goods or services what they are and how they're different from competitors then comes the hard part a market analysis
you need to investigate and analyze hundreds of variables you need to take into consideration socioeconomic factors from GDP per capita to how many children on average the population has all this information is useful so that you can move on to your strategy and implementation stage where you will describe in detail how you will actually execute your idea jeez is that all almost the most important piece of information for your investors will be the financial analysis here you will calculate and estimate sales cash flow and profits after all people will want to know when they will
begin to see a return on their investment um I think I'll just stick to my old job and save myself all the hassle of trying to start up a business so it was pretty interesting that he wanted to quit his job and just you know set up a business but actually many people say that business plans are unnecessary really do these people have lots of money and they don't need investors or I think the problem is that there are many books out there that give you clear examples of companies Fortune 500 companies that started out
without a business plan so I think uh many people take this as a well you know a rule a rule like well they didn't need one or it's not really necessary or why should I write up a business plan well I'm not an entrepreneur and I'm not a business person but my feeling is that uh A business plan is as much for investors as it is for yourself it helps you clarify your goals it helps you um explain your objectives to your future colleagues and I think it's just a really good way to map out
the first year of a business because it it tends to a lot of businesses fail in that first year so I think this is a really important step yeah exactly so it's very interesting we've talked a little bit about business here but we would like to know your ideas or your comments or any other suggestions that you have about this topic or any topic on English pod so why don't you send us a comment or a personal message we are at englishpod do.com and we'll see you guys there bye everyone bye [Music] the English pod
audio review listen to the meaning then say the vocabulary word organization of the business legal structure to put into effect carry out to execute reports on financial stability and profitability financial analysis profit made from one's investment return on one's investment a great deal of trouble difficulty nuisance hassle let's try that faster profit made from one's investment return on one's investment to put into effect carry out to execute reports on financial stability and profitability financial analysis a great deal of trouble difficulty nuisance hassle organization of the business legal structure now say the word and hear it
in a sentence legal structure the legal structure of a business includes proprietorship of the business whether it be one person a partnership or a company legal structure when he wrote up his executive summary and considered the type of legal structure he decided that he would need to get liability insurance legal structure when they presented their business plan they highlighted the legal structure of the business which they considered to be Innovative to execute having looked over the business plan one more time the partners agreed that it was time to execute their plan to execute the execution
of the new marketing technique would begin in the new year to execute the captain of the ship decided that it was time to execute Plan B financial analysis a financial analysis is not only performed when a business is starting up but also throughout the lifetime of the business financial analysis the management of a business will consult the financial analysis to make sure the business is making profits and all the finances are in place as well as deciding where to spend money to improve the business financial analysis when the financial analyst presented his financial analysis he
highlighted that the business was making 10 times the profits it was making at the same time last year return on one's investment I got a huge return on my investment with that company return on one's investment in my experience investors are fickle and change loyalties very quick L depending on how often and how much return is made on their investment return on one's investment this company is fast becoming a big name in the industry so I would suggest investing in them it is pretty much guaranteed you will get a good return on your investment hassle
my boss wants me to take over my co-workers responsibilities on top of my own during her sick leave it is going to be such a hassle hassle I'm going to save myself the hassle of going to court and just pay her the damages hassle I hope taking care of my dogs while I'm away won't be too much of a hassle for you [Music]
