VIETNAM UNIVERSITY OF COMMERCE FACULTY OF ENGLISH ___________________________ GROUP DISCUSSION ENGLISH 3 Topic: Factors to consider in setting up a business Group: 7 Teacher: Group preparation assessment: Presentation assessment: List of students No Name Comment Mark 1 Đinh Đào Phương 2 Nguyễn Lê Hoàng 3 Vũ Tú Anh 4 Hoàng Thị Thương 5 Ngô Trung Hiếu 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 [...]... 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. .. 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. .. relationship can be divided and managed In a business structure, business forge partnerships to raise awareness among consumer, tapping each other’s potential and maximizing it to the fullest That’s what you call coordination within competition: unity in diversity By developing our own unique strengths and talent s and focusing on cooperation instead of competition, we keep the ecology of the business. .. company can advance on the international market When your company cooperate with other companies, your company will have a relatively funds to maintain the operation of the company Furthermore, you will have a lot of experiences in business from partnership That experiences are very valuable when you do not have much knowledge about your business field In a word, cooperation is one of the necessary factors. .. 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... 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 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... 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. .. 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. .. diverse and healthy There’s no need for anyone to claim a generalized top position We have to work together to make the system function When you set up a business, you cannot have enough money for investing, so your company cannot absolutely develop Therefore, your company need have cooperation with other companies This is good opportunity to attract foreign investment, make friendship with foreign companies, . 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. 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. 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