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Getting started in business

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What do Juan from Spain and Jessica from the USA have in common? They are both teenagers running successful businesses. Juan, 16, has a gardening business with 75 clients and three employees. Jessica’s company cleans new houses. She started it when she was 14. if you want to start a business, good planning is important. Here are some tips.

1 Get organized. Decide what your skills are. Find out if there is a market for them in your area, e.g. ask your neighbours what they need. Babysitting, coaching for exams or sports and computer training are all possibilities.

2 Decide how much money you need to start your business. Think about how to get the capital. You can use your own money or you can ask the bank for a loan. If you get a loan, be sure you can afford to pay the interest.

3 Calculate your costs. First, work out your fixed costs, for example, the rent on your office or the interest on a loan. Then add your variable costs, for example, equipment or tax (if you pay).

4 Work out how much to charge for your service. Find out what other people are charging and use this to set your own prices.

5 Your revenue is the amount of money you receive from selling your service. You need to calculate this very carefully. Your revenue is the number of hours worked multiplied by the price per hour.

6 Your business will make a profit if your revenue for a year is more than your costs. If your costs are higher than the revenue, you’ll make a loss. Work out carefully the number of hours you need to work.

 

III

Geeks

Although they live hundreds miles apart, Steven Jobs and William Gates have much in common. Both were born in 1956. Both were pioneers in the personal computer industry. And both became multi-millionaires when they were still in their 20’s.

The earliest computers were highly technical machines, understandable only to scientists. Steven Jobs thought that if computers were easier to use and less expensive, the public would buy them. He was right. With $ 1300 (most of which came from the sale of his second-hand Volkswagen van), Jobs produced what he called the Apple I computer. The success of the Apple I gave him the money to finance the design of new and improved personal computers.

Bill Gates started in the computer industry when he was at school and has become the world’s youngest billionaire by the age of 31. A combination of technical brilliance and competitive business tactics quickly made him the most powerful man in Silicon Valley. He was intrigued by the success of the new personal computers coming into the market in the 1970’s. Gates realized that the success of personal computers would depend on the “user-friendly” (easy-to-use) software. In 1975 he co-founded Microsoft Corporation which designed the basic operating software for all IBM and IBM-compatible personal computers.

Today Microsoft Corporation is the largest software company. But Bill Gates wants his company Microsoft to be more than just a software house and in recent years it has diversified into many new fields.

 

 




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