thảo luận tiếng anh 1.5 VCU Topic Factors to consider in setting up a business

The most common source of startup capital is the business owner him - or herself in the form of credit card advances, home equity loans, and loans from family members.. Family and friend

VIETNAM UNIVERSITY OF COMMERCE

FACULTY OF ENGLISH

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GROUP DISCUSSION ENGLISH 3

Topic: Factors to consider in setting up a business

Group: 7

Teacher:

Group preparation assessment:

Presentation assessment: List of students

MEETING MINUTES – GROUP: 7

Time: from 4 pm to 5 pm (02/04/2015) Place: campus of Viet Nam university of commerce.

Members:

1 Đinh Đào Phương

2 Ngô Trung Hiếu

3 Vũ Tú Anh

4 Hoàng Thị Thương

5 Nguyễn Lê Hoàng

Contents for discussing:

 Members read and analysed about contents of topic

 Deviding many parts in order to members can find information

Duties for members:

 Finding information and send it to head of the team

Head of the team Secretary

MEETING MINUTES – GROUP: 7

Time: from 2 pm to 3 pm (05/04/2015) Place: campus of Viet Nam university of commerce.

Members:

1 Đinh Đào Phương

2 Ngô Trung Hiếu

3 Vũ Tú Anh

4 Hoàng Thị Thương

5 Nguyễn Lê Hoàng

Contents for discussing:

 Collecting all information and choose main information

 Extruding information which is’n extraneous

 Adding information which don’t have

Duties for members:

 Each members summary their part in order to prepare for presentation

 Designing slide

Head of the team Secretary

MEETING MINUTES – GROUP: 7

Time: from 8 am to 9 am (08/04/2015)

Place: campus of Viet Nam university of commerce.

Members:

1 Đinh Đào Phương

2 Ngô Trung Hiếu

3 Vũ Tú Anh

4 Hoàng Thị Thương

5 Nguyễn Lê Hoàng

Contents for discussing:

 Collecting discussion of member

 Printing discussion and information in order to member can prepare their presentation

Duties for members:

 Each members summary their part in order to prepare for presentation

 Designing slide

Head of the team Secretary

MEETING MINUTES – GROUP: 5

Time: from 8 am to 9 am (15/04/2015)

Place: campus of Viet Nam university of commerce.

Members:

1 Đinh Đào Phương

2 Ngô Trung Hiếu

3 Vũ Tú Anh

4 Hoàng Thị Thương

5 Nguyễn Lê Hoàng

Contents for discussing:

 Each members presented before the team

 Everyone gives ideas to make presentation better

Duties for member:

 Member prepare presentation by the best way

Head of the team Secretary

PRESENTATION DETAILED OUTLINE

I INTRODUCTION.

Hello, we are group 7 Today we are very happy to be here to present our topic There are 5 members in our group

1 Đinh Đào Phương

2 Ngô Trung Hiếu

3 Vũ Tú Anh

4 Hoàng Thị Thương

5 Nguyễn Lê Hoàng

The topic is about “Factors to consider in setting up a business” There are 5 parts in our presentation The first part is capital The second part looks at regulation Third part discusses Adminitration Skill The fourth part deals market and the final part mentions Cooperation

II DEVELOPMENT

1 Capital (The first part is being presented by Đinh Đào Phương)

1.1 How Much Capital Do I Need?

When calculating the capital you need, plan that everything will take twice as long and cost twice

as much as you expect Figure that your worst-case scenario will occur, not your best-case Don't assume instant profitability, a common mistake of many first-time entrepreneurs according to the National Federation of Business And remember, if you don't raise enough capital initially to cushion your company if sales are slow or emergencies occur, it will be nearly impossible to raise more money just to keep the business going

According to Canadian banker and blogger Roger Downie, startup capital should, at a minimum,cover all plant, equipment, and leasehold costs - plus at least six months' worth of projected operating costs, including the owner's salary John Reddish, a management consultant who specializes in helping companies achieve high growth, says, "After developing personal and

business budgets that can sustain the company for the time you think it'll take to break even, add at least 50%." Like intelligence and good looks, it is virtually impossible to have too much money

1.2 How Do I Raise New Capital?

The most common source of startup capital is the business owner him - or herself in the form of credit card advances, home equity loans, and loans from family members Federal and state governments sponsor numerous subsidized loans and grants for startups through the Small Business Administration and its counterparts on the state level When these sources are exhausted or unavailable for some reason, entrepreneurs usually seek capital from private sources such as commercial and investment banks, groups established by private investors to exploit such opportunities, wealthy individuals, and venture capital funds

1.3 What Is the Value of My Company?

The value of a company is important because it is the basis for determining the "cost" of the new capital when seeking equity additions to the capital structure Simply explained, a company with a $1 million valuation and no debt seeking a new capital of $1 million would be worth $2 million after the investment The old owners would own 50% of the new $2 million company (for their contribution of the old company with a $1 million value), while the new investors would also own 50% interest for their contribution of $1 million cash Generally, a valuation considers four questions:

How much is the company worth today?

How much could it be worth in the future?

How long will it take to create the future value?

What is the likelihood of achieving success?

1.4 Who Might Be Interested in Investing in My Company?

As the amount of funds needed increases, you will be required to access an increasingly sophisticated investor seeking maximum return for assuming the risk of a new venture Family and friends are typically the first group sought by business owners seeking capital - they are less discriminating than professional investors, and are more likely to invest due to the relationship than the economics of the business proposal On the other hand, family investors bring their own set of problems, including the possibility of strained relations if the investment fails

A variety of funding options, in addition to self-funding, business incubators, and government grants

1.5 What Are My Legal Responsibilities to Potential Investors?

Generally, business owners seeking funds from individual investors are required to provide forms and specific factual information in understandable language to potential investors so that they have the ability to evaluate the investment and determine whether it is right for them Failure to do

so subjects the issuers of securities to punitive civil and criminal acts Seeking and paying for competent legal advice when soliciting, negotiating, or contracting with investors or lenders is mandatory for prudent business owners While an attorney may not secure advantages for you on the upside, a lawyer's value in eliminating the possibilities of fraud charges, confusion about the agreements reached, or avoiding future legal problems is considerable

1.6 How Do I Negotiate a Win-Win Agreement?

A funding event, whether for a startup or an ongoing operation, involves two parties: the investor and the company In some cases, there is a single investor; in others, multiple investors In the latter case, such as a crowdfunding event, the investors participate as a unit, each sharing a proportion of the same investment In some cases, funding is take-it-or-leave-it; in others, there is intense negotiation In each case, the parties strive to reach an agreement that accomplishes their respective goals

2 Regulation (The second part is being presented by Nguyễn Lê Hoàng)

2.1 Name

Your Business Name is Your Business The name of a business is one of its most vital assets.

It's how you answer the phone It's how people remember you and your products or services It's what they see in your advertising, your leaflets, your business cards and stationery It's how your business gets recommended to others It really is - your business

Choosing a name for your business is one of the most important decisions you will make

2.2 Law about business, government policy

As a small business owner, you are subject to some of the laws and regulations that apply to large corporations These resources can help you understand which requirements do apply to your business: Advertising & Marketing law; Employment & labor low; Finance law; Intellectual property law; Online business law; Privacy Law; Environmental regulations; Regulation of Financial Contracts; Workplace safety & Heath law; Foreign Workers & Employee Eligibility; Contact a Government Agency

2.3 Set up rules for company

Rules for workers may be legally required, but various optional workplace rules should be considered as well Carefully selected workplace rules can protect your business from legal claims and help you maintain an orderly, positive work environment

Having formal work rules in your business, even if they're not required, are a good idea because they can help you protect your business from litigation and maintain a high quality of work life for your employees You need to make sure that your employees understand what is expected of them, not only in the work that they do, but in their behavior and in other areas of your employment relationship If the rules are carefully selected, clearly related to the business, and fairly enforced, they can help you to manage your workplace and your workers better

2.4 Determine the legal structure of your business

The business structure you choose will have legal and tax implications Learn about the different types of business structures and find the one best suited for your business

Sole Proprietorship: A sole proprietorship is the most basic type of business to establish You alone own the company and are responsible for its assets and liabilities Learn more about the sole proprietor structure

Limited Liability Company: An LLC is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership Learn more about how LLCs are structured

Cooperative: People form cooperatives to meet a collective need or to provide a service that benefits all member-owners Learn more about how cooperatives are structured

Corporation: A corporation is more complex and generally suggested for larger, established companies with multiple employees Learn more about how Corporations are structured

Partnership: There are several different types of partnerships, which depend on the nature of the arrangement and partner responsibility for the business Learn more about how these are structured

=> Determine the regulation of your business is very important it shows people and government how your company will work in law, and make the basic direction for your new business

3 Adminitration Skill (The third part is being presented by Vũ Tú Anh)

3.1 The role of governance in establishing businesses

To survive and develop, people can not act alone but must coordinate individual efforts towards unified goals Therefore, from thousands years ago, there were organized efforts of of planners, organizers, leaders and controlers for us to have great constructions today like: Great Wall, Great Pyramid of Giza,… that means management activities appeared very long time

Management helps members clear their goals and directions, helps organization accomplish its missions This is the most important factor for every person in the organization Just imagine that a business has tens of thousands of workers, with headquarters and agencies in different countries, if there is no management activitiy, how the staff could work together for the same target

3.2 The role of manager

 The role of communication, relationship

- Externally representing for a collective that he or she manages

- Internally leading, linking members to accomplish goals

 The role of information

- Gather information from subordinates

- Disseminate information from superiors

- Provide information to outside

 Role of making decision

This is the most important role of the administrator Administrators are who have the right to decide and take responsibility for their decisions

3.3 Skills of administrator

General managers should have the following skills:

- Technical skills, expertise skills: the ability to perform a specific job

- Thinking skills, cognitive skills: the ability to capture, aware of information, opportunities, risks

- HR Skills: Ability to communicate, lead , encourage

Depending on the position managers are in, requirements of the skills may be vary

3.4 Required qualities of administrators

- Ability to communicate well with people

- Ability to make decisions quickly

- Ability of logical ,analytical and closely arguing

- Ability to motivate and lead people

- Ability to work effectively, quickly and not leave the job unfinished

- Ability to persuade people to work

- Ability to place orders

- Ability of a certain expertise

4 Market (The fourth part is being presented by Hoàng Thị Thương)

4.1 Location

Deciding an optimum location for the business is a strategic and an important one A good location goes long way in market the business successful The location needs to be carefully chosen Some places have advantage over the other You can save out on taxes, water and electricity costs if you are located in some areas The raw materials can be easily sourced, the manpower would easily available and you can save out on transportation costs in case of certain locations Setting up a business in certain location could lead to subsidy and rebates from the government

In the case of a retail business one needs to be located in a well populated area and one which is easily

4.2 Demand

Once a decision is taken on the business you intend to start, the next step is explore the demand/ market for the product/ service Certain products will only have a domestic market for them whereas other can be successful on an international level

The key question is: who are the customers? A market survey can be conducted to identify the market for the business to be started

If the product/service is expected to be sold locally, the demand for it needs to be assessed In case an international market is expected then rules and regulations for dealing internationally need

to be found out

4.3 Know the competition

Don’t underestimate your competition Spend time researching how your competitors operate, identify any weaknesses they have, and don’t be complacent

The question which needs to be answered is “what is unique about the product/ service which will be offered to survive the market competition”?

Information such as who are the competitors, what is their market strategy and factor are required to compete with them are important

4.4 Research the marketplace

Before you venture into your new business it's important to conduct some market research to see

if your idea is feasible

You need to find out if there is a need for your product or service and who your competitors are, their strengths and weaknesses and how your business will differ from theirs

Your research should help you determine whether there is a market for your product or service

5 Cooperation (The final part is being presented by Ngô Trung Hiếu)

Cooperation is also an important factor to set up business When your business starts, it will meet with difficulties if your company is alone in international market Cooperation with business can develop the commercial skills and boost the employability of adult learner It can also improve the management, leadership and relevance of adult education programs Once the adult learners have completed their course, they have a potential route to employment with a business can ensure that institutions are able to quickly respond to the demands of the labour market Existing theory and research on relationships among competitors focuses either on competitive relationships between them, and the one relationship is argued to harm or threaten the other Little research has considered that tow firms can be involve in and benefit from both cooperation simultaneously, and hence that types of relationships need to be emphasized at the same time In this article, it is argued that the most complex, but also the most advantageous relationship between competitors is