Progress Test 2 Audio Script

Track 3
Well the first step, of course, is to develop a new product idea. Many people decide to start
a business because they have a good idea.

But you have to remember that about 80 per cent of new business ideas fail. Usually it’s
because people don’t understand the market. So the second step is to conduct market
research. Your research should answer two key questions. First, is there a demand for your
product or service? Second, who are your competitors?

When you know you have a market, the next step is to prepare a good business plan. Your
business plan helps you to focus on what you want to do. It also helps with the fourth step:
getting finance.

You have to decide what type of business you want to have, your goals, your product or
service and its key selling points. In the plan, you also need to show that you can run the
business. So you include information about staff, management, production, marketing and,
of course, finance. This shows that you know how to run a business.

But the most important step is the fifth one: to build a customer base. You need a number of
regular customers who come back to you year after year. A strong customer base is key to
making a success of your business.

PHOTOCOPIABLE © 2006 Pearson Longman ELT 1