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2.What is self-financing?

Fundingisneededtofuelthegrowthofyourbusiness. Ifcashflowisnotsufficienttofinancegrowth, thereare a numberoffinancingchoices. Thefinancingchoiceshavepros&cons. Thechoiceoffinancingdirectlyimpactsyour “control” ofthebusinessandyourpersonallife.Ifyouchoosetoself-financingyoucanretaincontrolofthebusinessandyourpersonallife.

Inreality, fewtechnologyentrepreneurscanaffordtofinancethewholecompanythemselves. Thecostofprototyping, marketintroduction, manufacturing, marketingetc. isbeyondthereachofmostindividuals.

Anotherapproachtobootstraptechnologytomarketistouselicensingandstrategicalliances. Withthisapproach, thetechnologyentrepreneurjoinsforceswithlargercompaniesthatcanhandletheprocessofbringing a producttomarket, includingtesting, support, marketingandsales. Thisapproachallowstheentrepreneurtofocusontheirtechnicalworkandavoidtheneedto “buildanorganization” withallthecostsandmanagementresponsibilities.

БІЛЕТ№ 17

1.Speak about annual report of a company.

Report which must be produced each year by private and public limited companies. It gives details about the company's activities over the previous year (the ‘Directors' Report’) and financial accounts, usually at least a profit and loss account and a balance sheet.A copy of the annual report must be distributed to shareholders. In addition, a public limited company has to allow anyone to inspect its annuIf the crocuses are sprouting, then so will the annual reports that public companies will soon be sending to their shareholders. As I wrote about this topic last year, most of them will be as dull as dishwater. Think about it. When was the last time someone told you he had curled up in bed with a good annual report to read? Not likely, unless sleep was the primary motivation. Annual reports can be real dullards.In an effort to avoid offending any of the organization’s constituents, not step on the toes of regulators or in the rush to get the darn thing out, the people who produce them for a living often take the easy way out. Change the wording a little of last year’s CEO’s letter, revise the financial charts, drop in photos of the new trustees, add a dollop here and there of new initiatives, and that’s it.

2.Expand on business ethics

Ethicsissomethingof a subjectivetopic, butitisneverthelessofimmenseimportanceacrossallareasofbusiness. Fromthewayinwhichsalesandmarketingishandledthroughtoproductdevelopmentandcustomerservice, andeventosomeextentfinance, ethicshas a significantroletoplayinensuringbusinesssuccessandultimatelylivinguptothecorporatesocialresponsibility. Thusadopting a ethics-specific approachtodoingbusinessiscriticaltowardsensuring a legitimatebusinessmodelwithlongtermpotential.

Businessethicsisespeciallyimportantindealingwithcustomers. Maintainingintegrityinthecustomerfacingsideofyourbusinessiscrucialtobuildingclientrelationships, toassistingtheoverallbrandingefforts. Likewise, it'sanimportantstepinminimisingreturnsandprotectingbusinessgoodwill, whichwillhave a tangibleeffectonthesuccessorotherwiseofyourbusiness.

Ethicswise, it'salsoimportanttoconsiderhowyoudealwithcustomerissuesandcustomerservice. Whilesomebusinessesarepreparedtosacrificecustomerserviceforpoundsigns, thereisnotonly a sensiblebusinessreasonforprovidingadequatesupportbutalsostrongethicsandmoralreasonsforprovidinghelpandassistancetoyourcustomerbase.

БІЛЕТ№ 18