Читать книгу Introduction to Business and Economics - Bettina Fuhrmann - Страница 6

1 Introduction to business matters

[6]Over the past few years Tina has noticed that quite a lot of people buy new computers even though their old ones are still working. At the same time other people are perfectly happy with a used computer as long as it works. They do not need to have the latest model, they are just interested in having access to the Internet and the computer programs that they want to use. What is more, many people need help to get started with their new computer, and some also need help later on with new releases of software, data storage and security issues.

At school and also later during their university studies, Tina and her former classmate Steve specialised in computer science and in business. They have always tried to help their families and friends with any computer issues. And as more and more friends of their friends as well as neighbours and acquaintances of their families have asked for help, they have considered starting a business that offers a wide range of professional computer services.

A business is an entity that offers goods and/or services to customers. Businesses do not produce primarily for their own needs or work exclusively for their families’ and friends’ needs, but for someone else: for their customers. Businesses usually charge a price for their goods and services so that they get something in return. Exchanging goods and services against money or other means of payment (or exchange) is a main characteristic of the economy.

Tina and Steve consider the following idea: buying used computers at a low price, checking and repairing them (if necessary), and adjusting/modifying them to the needs and wishes of their customers. By doing so, Tina and Steve are able to offer ready-to-use computers at an affordable price and create value for their customers.

They also consider offering additional services such as setting up the computer at the user’s home, installing software, connecting the computer to the Internet, explaining how to use the computer etc. Another idea that comes to their minds is offering online help for problems that might occur. Customers facing a problem with their computer would be supported within 24 hours. Tina and Steve are even considering developing tailor-made software for their customers. With so many ideas, Tina and Steve are convinced that they can start a profitable business. That is exactly what they want to do as they need to earn money to make a living.

[7]Alternatively, Tina and Steve could easily find jobs that they are interested in because they both have a profound knowledge of business and computer science. During their studies both of them worked for AT&S, the Austrian company Austria Technologie & Systemtechnik AG, for a couple of months and they liked that very much. AT&S (https://ats.net/de/) is a manufacturer of high-end printed circuit boards and of new technologies such as IC substrates, mSAP and advanced packaging. It is located in Styria with some production sites in Asia and ranks among the globally leading companies in that field. In Europe, AT&S is the market leader, with revenue of about €990 million and almost 10,000 employees.

However, at the moment, they both prefer the idea of being self-employed, generating their own ideas, creating something new and being their own bosses. They prefer to become entrepreneurs who have developed an idea, solve problems and create value for their customers, take a risk and make sensible economic decisions.

They consider further aspects about founding their business. They are ready to work long hours and invest their savings in the business. They have found a business location that they consider appropriate, where they could rent two rooms in an office building for meeting with customers, working and developing software, storing the computers and other equipment. Additionally, they would need a car or – even better – a small van that they would use for transporting the computers between their customers and their office. Tina’s car, which she does not really use very often, could be used for that purpose, at least for the first few months. Yet, they know from what they have learned during their business studies that there are a few more questions to be considered. The following chapters cover the basic knowledge that is needed for answering these questions.

Important questions to be considered before setting up a business

Questions	covered in chapter
Which people and organisations have an interest in the business and/or are influenced by Tina’s and Steve’s business activity?How does Tina’s and Steve’s business influence the environment and the economy?	Chapter 2Basic economic concepts
What kind of business will Tina’s and Steve’s business be?	Chapter 3Focus on different kinds of businesses
Tina and Steve work as a team, so which legal form should their business have?Do Tina and Steve have enough funds to finance their business? What sources of finance could and should they use?As they will have bills to pay or might have to repay a loan, how can they make sure that they have the funds for that and who will be liable for these payments?	Chapter 4Forms of business ownership and sources of finance
[8]What exactly do their potential customers want and need, and how can these needs be addressed? Will there be (continuous) demand for what they want to offer?	Chapter 5Marketing
How many people could potentially be interested in their offer (market potential), and are there any competitors in the market?
How much would people be willing to pay for their products and services and in which way would this price be affected if the market changed?
How can a business communicate its offer to its potential customers?
How will Tina and Steve know that their business is thriving?How will they know if their financial situation is solid?How will they know if their business not only generates profit but also turns profits into cash?	Chapter 6Accounting – keeping record of business transactions
Why are skilled and talented people so important for a business?What are the tasks of personnel management and how can employees be motivated?	Chapter 7Personnel management – because people matter
What is a business plan and why is it written?What is the structure and the content of a business plan?	Chapter 8Writing a business plan
Summary and application of the learning content	Chapter 9Case study

As Tina and Steve are thrilled about their business idea, they cannot wait to find answers to all these questions.