Building a career About business The education business

New Business

1. About business Self-financing

2

The author recommends ‘doing it yourself’, i.e. raising capital from sources such as friends and family, savings, credit cards, second mortgages and so on.

3

1 N 2 Y 3 N 4 N 5 Y 6 Y 7 N

4

1 d 2 g 3 b 4 e 5 a 6 f Not needed c

5

He thinks that most people underestimate the cost of starting a new business and will eventually need to approach a venture capitalist, a business angel or a bank. His attitude to do-it-yourselfers could be described as dismissive or amused.

6

1. 
   commitment
   
2. 
   skills
   
3. 
   realistic
   
4. 
   growth
   
5. 
   valuation
   
6. 
   due diligence
   

2. Vocabulary Funding a start-up

1

1 leasing 2 bank loan 3 equity finance 4 overdraft

2

1. 
   self-funding
   
2. 
   bank loan
   
3. 
   overdraft
   
4. 
   family and friends
   
5. 
   equity finance
   
6. 
   grants
   
7. 
   leasing
   

4

1. 
   repayments
   
2. 
   cash flow
   
3. 
   security
   
4. 
   guarantor
   
5. 
   interest-free loan
   
6. 
   matching funds
   
7. 
   maintenance
   

5

1 b 2 e 3 a 4 g 5 c 6 f 7 d

6

1. 
   get through
   
2. 
   come up
   
3. 
   turn down
   
4. 
   check out / go over
   
5. 
   draw up
   
6. 
   sets out
   
7. 
   goes through
   
8. 
   put forward
   
9. 
   work out
   
10. 
    weed out
    

7

1. 
   Inadequate financial returns
   
2. 
   Lack of skills in the management team
   
3. 
   Not scalable: no growth potential
   
4. 
   Financial forecasts based on too many assumptions
   

3.