节目资讯
刊物:空中英语教室
日期:2013-03-09
难易度:High
关键字:balance sheet, inevitable, seed money, line of credit, income stream
In our article today, Uncle Bob has been sharing his own business experiences
with Ben.
And he's him about how he was able to get his first loan on better terms because
he already had a healthy balance sheet and an income flow, or an income stream.
So it sounds like Uncle Bob has some really great advice that he can share with
his nephew Ben.
And we have some more of this conversation coming up in the next part of our
reading today.
Financing Your Business.
Practically speaking, most small businesses inevitably go through several rounds
of financing as they grow.
Like your company, most small businesses are started with seed money from their
owner's savings or family members.
The businesses aren't usually started with money from a loan.
How will I know when the time is right to borrow?
Once companies are more established, the owners have a lot more choices.
They might, for example, get a line of credit, take on a partner or get a loan.
If borrowing money will make you money, then it's time to consider it.
So it's all a matter of timing?
That's right.
And right now, it's time for lunch.
Sounds good.
Where should we go?
An excellent conversation with Uncle Bob and Ben.
Well, let's learn something from their conversation.
Nathanael, please continue as Uncle Bob.
Practically speaking, most small businesses inevitably go through several rounds
of financing as they grow.
Excellent.
And let me just stop you right there.
I love to interrupt.
OK. We have an important word we would talk about there from the Word Bank.
It is the word "inevitably." Inevitably.
That means you're talking about something that is unavoidable.
It will happen sooner or later, inevitably.
So Carolyn, how could you use that word?
Well, you could also change the word a little bit and say something is
inevitable.
So I think it is inevitable that Gabe will be interrupting Nathanael during this
reading today.
Excellent. That was a great way to use that word, Carolyn.
Nathanael, how could you use that word, "inevitable" or "inevitably"?
Well, if a big business moves into a town, the small businesses around it may
inevitably fail if they're selling the same thing or offering the same things.
Ugh. That's so true.
Sometimes my favorite companies or stores,
maybe little mom-and-pop restaurants go out of business because there is a
bigger one that has a better business or is doing better financially.
I don't like it when that happens, but it is inevitable that some people go out
of business.
Another way you could phrase this is by saying it's only a matter of time that
this will happen.
Or some people like to say it's not a matter of if, it's a matter of when.
It is inevitable.
It will happen sometime.
Well, let's continue, Uncle Bob.
Like your company, most small businesses are started with seed money from their
owner's savings or family members.
The businesses...
And inevitably, Gabe interrupts because we have something important to talk
about there.
Sorry, Nathanael. Thank you.
This is from our Word Bank, of course.
It is the phrase "seed money." And it could be easy to remember because, of
course, a seed is a beginning of some kind.
So it's the money that you need to start your business or to start whatever you
want to do.
Carolyn, where might you use that phrase "seed money"?
Well, maybe if you're saving money for college, you need a little seed money to
start your bank account.
Collect some interest, and eventually pay for your tuition.
I need some seed money, Gabe.
Uh... that seed money is not coming from me.
Um, Nathanael, is there another way to talk about that... that phrase "seed
money"?
Well, I think most often you will use this term "seed money" when talking about
business.
It's not something that we talk about a lot.
But I do want you to know that seed money can include loans, though it can also
be money that you have saved or that other people have given you like Uncle Bob
said.
That's right.
So maybe, perhaps, Uncle Bob might even be willing to give Ben some seed money
for Ben and Sandy's new business.
Sometimes it does come from family members or from your own personal savings.
Well, I don't think Uncle Bob is finished his line here.
Uncle Bob, please continue.
The businesses aren't usually started with money from a loan.
Oh. How will I know when the time is right to borrow?
Once companies are more established, the owners have a lot more choices.
They might, for example, get a line of credit, take on a partner or get a loan.
Yes. Yes, that's great.
That's great, Uncle Bob.
Thank you.
We have some more words we want to talk about from the Word Bank: a line of
credit.
This is the maximum amount of money that you can use for credit.
So what is important to remember about a line of credit, Carolyn?
Well, you want to make sure that you have a good line of credit and not a bad
one so that banks will trust you to repay the money that you borrow.
OK.
So, if you want to buy a car, you need to have a good line of credit.
But then how can you get a good line of credit?
Well, a lot of people start out with a credit card.
And they make a purchase, and then pay it off immediately.
And they make many small purchases to help build up their line of credit.
I bought this, and then I paid it off.
So I don't owe any money.
Very important things to remember.
All right.
Let's take a look at some other words from this sentence: to take on something,
like taking on a partner.
That means to add a new partner.
Or you can adopt something new like taking on a new policy.
Maybe you want to benefit another organization, and they can benefit you.
You could take on a charity organization.
Or you can also take on a challenge; you're willing to accept the challenge.
All right.
Uncle Bob, please continue.
If borrowing money will make you money, then it's time to consider it.
So it's all a matter of timing?
That's right.
And right now, it's time for lunch.
Sounds good.
Where should we go?
I know where we should go.
We should go and enjoy a review skit, and then enjoy some time with Michelle in
the Language Lab.
Hey, Ben, how's the business coming along?
Well, we followed your advice and things are going well.
Good for you.
The crucial challenge now is financing.
Financing is important.
Obviously, we're funding the company with our savings, but we could run out of
money.
Ooh. Undercapitalization is one of the major reasons for small business fail.
Yeah.
So what is your advice about outside financing?
Instead of borrowing right away, maybe you should wait.
Wait?
How will waiting help?
If you have an income stream and a healthy balance sheet, you are less of a risk
for lenders.
So we'll be able to borrow on better terms?
Yeah. That's the idea.
Small businesses inevitably go through financing as they grow.
How will we know when the time is right to borrow?
Wait until your company is established.
Then you'll have more choices.
More choices?
Yeah. You can get a line of credit.
Hmm.
Or take on a partner.
Hmm.
Or take out a loan.
Hmm!
When borrowing money will make you money, then you should consuder it.
So it's all a matter of timing?
Yeah. Now it's time for lunch.
Uh, can I borrow some lunch money?
Just kidding.
But if you have some...
OK.
(Chinese).
And now let's head back to our teachers.
Well, I learned some important things from our conversation between Uncle Bob
and Ben today.
It's important when you're starting a business to have a good line of credit.
You want to be able to have a good relationship with other people you might be
working with so that they can trust you if they're going to lend you money.
Uh, this makes me think, though, about credit cards.
Many people have credit cards.
Nathanael, do you use a credit card, and why or why not?
I don't have my own credit card.
But there have been a few times where I have need to purchase something online,
so I use someone else's.
OK. So maybe someone else trusts you with their credit card.
Um, Carolyn, do you use a credit card?
I do use a credit card.
I use it when I'm buying things online or trying to purchase plane tickets.
It's very useful to have a credit card.
I agree.
It can be useful.
Of course you don't want to go over your limit, and you want to make sure that
you pay your credit card off right away or as soon as possible.
Well, thank you for joining us today for our financing lesson.
We'll see you next time right here on Studio Classroom.
Bye-bye.