Starting His Own Business

After years of experience, Rahul decides to leave his job and start his own small business, discussing the plan with Priya and a bank manager for a loan.

Meanings in Rahul, Priya, Bank manager

Key words and phrases

startupa newly established businessHis startup focuses on online tutoring.

business plana document outlining goals and strategy for a businessHe prepared a detailed business plan.

investmentmoney put into a business to help it growThey need some investment to start operations.

loanmoney borrowed that must be paid backRahul applied for a business loan.

riskthe possibility of loss or failureStarting a business always involves some risk.

registrationthe official process of recording a businessThe business registration took two weeks.

profitthe money made after covering costsThey expect to make a profit within a year.

resignto formally leave a jobRahul had to resign from his current job.

entrepreneura person who starts and runs a businessHe always dreamed of becoming an entrepreneur.

savingsmoney saved over timeThey used their savings to fund the business.

revenuethe total income generated by a businessThe startup expects steady revenue by next quarter.

expensesthe costs of running a businessThey calculated all their monthly expenses.

partnera person who shares ownership of a businessRahul is looking for a business partner.

licenseofficial permission to operate a businessHe needs a trade license before opening the shop.

market researchthe study of customer needs and competitorsThey did market research before launching the product.

cash flowthe movement of money in and out of a businessManaging cash flow is crucial in the early months.

collateralproperty offered as security for a loanThe bank asked for collateral against the loan.

interest ratethe percentage charged on a loanThe interest rate on the loan is nine percent.

break-eventhe point where costs and revenue are equalThey expect to break even within eighteen months.

franchisea license to run a business using another company's brandShe is considering buying a franchise instead of starting fresh.

Useful sentences

Ask Are you sure about leaving your job?
Answer Yes, I've thought about it for a long time.
Ask How much investment do you need?
Answer We need around five lakh rupees to start.
Ask Have you registered your business yet?
Answer Yes, the registration is complete.
Ask What is your business plan for the first year?
Answer We plan to focus on building our first hundred customers.
Ask Can I apply for a business loan here?
Answer Yes, please submit your business plan and documents.
Ask Do you have a business partner?
Answer No, I'm running it alone for now.
Ask What license do you need for this business?
Answer I need a trade license and a GST number.
Ask Did you do any market research before starting?
Answer Yes, we surveyed over two hundred potential customers.
Ask What is the interest rate on the loan?
Answer It's around nine percent per year.
Ask When do you expect to break even?
Answer Probably within the first eighteen months.

Dialogue

PriyaAre you sure you want to resign and start your own business?

RahulYes, I've prepared a solid business plan.

Bank ManagerYour plan looks promising. How much loan do you need?

RahulI need about five lakh rupees for the initial setup.

Bank ManagerWe can process this loan against your salary and savings history.

PriyaThis is a big step, but I believe in you.

Bank ManagerYou'll also need to provide some collateral for the loan.

RahulI can offer our house papers as collateral.

Bank ManagerThat works. We'll also need your GST registration and trade license.

PriyaDon't worry, we'll get all the documents ready by tomorrow.

Common mistakes

Saying "open a business" instead of "start a business" — start is more natural for launching a new venture.
Saying "take a loan" instead of "apply for a loan" when describing the application process.
Saying "I am doing resign" instead of "I am resigning" or "I have resigned."
Saying "give collateral" instead of "provide collateral" — provide is the natural verb used with collateral in business English.
Saying "do market researching" instead of "do market research" — market research is already a noun phrase and doesn't take "-ing".
Saying "I am break even" instead of "I will break even" or "We have reached the break-even point."

Quick quiz

1. What is a "business plan"?

2. A person who starts and runs a business is called an ___.

3. Complete: "Rahul had to ___ from his current job."

4. What does "collateral" mean in the context of a loan?

5. Complete: "They did ___ before launching the product."

6. The point where costs and revenue are equal is called the ___ point.

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