How much is it worth?

A. Vocabulary Preview
Complete the sentences with the words in the box.
brand customer service excellence logo quality trust value
1. Do you __________________ sales staff, or do you think they are just trying to make
money?
2. How important is good __________________ to you? Would you use a company if
staff were rude to you?
3. What __________________ of clothing is the most popular in your country?
4. __________________ in customer service and perfect support is the most important
thing for a business. To what extent do you agree with this?
5. What do you think adds __________________ to businesses? What makes a company
successful?
6. A company __________________ is something people should remember. Which
symbols do you know the best?
7. What is more important for you: good-__________________ products or cheap
products?
Discuss the questions in Exercise 1 with a partner.

B. Before You Read

Think about your favorite clothing brands and technology products. Tell your partner about
them and why you like them.

C. Global Reading
Match these questions with paragraphs 2-4.
1. What do brands say about people? 3
2. How important is customer service? 2
3. How important are quality products? 4
Using the questions from Exercise 1, which paragraph would you expect to see these words
in?
apologize, image, quality, reputation, rude, standard
Scan the text and check your predictions.
How much is it worth?
1. When people think of a valuable company, they tend to think of how much the company is
worth in terms of money. Every year, companies report how much money they have made,
and directors’ salaries and bonuses also depend on the revenue brought in. While this may be
what the company owners value, to build a successful business, you need to think about the
things customers value. Customer service, well-known brands, and quality products are all
ways in which we can judge the value of a company.
2. Successful businesses know that they must provide good customer service, as they will be
judged by it. For instance, rude customer service, unlike a faulty product, cannot be returned.
Of course, you can apologize, but the damage has already been done, and sales could decline
as a result. Excellence in customer service is very important because the cost of attracting a
new customer is much higher than the cost of keeping an existing one. This means increasing
the number of customers you retain can make your company more profitable. If a company
has a unique product, this is perhaps less of an issue, but when two or more companies are
selling basically the same product, the success of the company depends on how well its
customers are treated. This means that companies need to communicate clearly, fix problems
quickly, personalize the sales experience, and employ the right people.
3. One way to make a company successful is to build a strong brand. This is because people
associate a certain standard and quality with brands, which builds trust. It seems people are
willing to spend a lot of money on good-quality products even when they do not need them.
Your laptop shows the time. Your cell phone displays the time. So does your car’s dashboard,
the screen in the subway, and millions of other items. A watch is no longer essential, so why
are these expensive items still popular? Watches have been rebranded so that they are no
longer simply tools for telling the time. They show what kind of person the wearer is,
represent tradition, and utilize technology. Much like cars, they are used by people to show
their status.
4. Brands are also important because they say something about who we are. When people
think of a brand, the values associated with it come to mind. Whether a brand is seen as
family-friendly, popular, or user-friendly is important because we like to buy brands that
represent how we want to present ourselves to others. If people see themselves as creative,
they are more likely to buy creative products that match their self-image. One way companies
build these values and their reputation is through their logo and by linking it to particular
celebrities. If a famous person is known for being a good family person, a company may use
them to help link this characteristic to their products.
5. Companies, when well-managed, can create value by focusing on quality products and
building their brand. With clever marketing and by maintaining good customer service, a
company can significantly increase its value beyond what it would be otherwise.
D. Close Reading
Supporting details are used to give the reader a clearer understanding of the topic. You can
identify these using a number of key phrases.
Examples: such as, for instance, one example is
Reasons: because, due to, in order to
Explanations: in other words, which means
Scan the text to complete the supporting details.
1. You can return a broken product, but you cannot return __________.
 2. It is more expensive to attract __________ than to keep old ones.
3. A lot of companies sell the same __________.
4. People are willing to spend a lot of money on __________ products.
5. People do not need __________, but they are still popular.
6. People like to buy brands that represent _____ how they want to present
themselves_____.
Look at the main ideas (1-3) below. Match the details 1-6 in Exercise 1 with the main ideas
they support.
1. People link logos and brands to their identities -----
2. Good customer service is very important ---------
3. People value high-quality products ----------------

E. Critical Thinking
Which of the ideas in the text do you think adds the most value to a company? Customer
service, a well-known brand, or quality products? Why do you think this?
I think _________ adds the most value because __________.
What other things not mentioned in the text do you think add value to a company? Discuss
your ideas with a partner. Think about:
 Company hours
 Happy and reliable employees
 Quick service
 Other...
Starting on the Path to Success?
A. Vocabulary Preview
Match the words in bold with the correct definitions.
1. access (n) a. to change your ideas or behavior so that you
can deal with a new situation
2. adapt (v) b. someone who uses money to start businesses,
3. business model (n) c. a small new company
d. already present
4. entrepreneur (n) e. to choose options after thinking carefully
f. the way a company is structured to operate
5. existing (adj) g. the way people reach or buy a product
6. make decisions (phrase)
7. start-up (n)

B. Preparing to Read
Signposting
Before You Read
Discuss these questions with a partner.
1. Would you like to be an entrepreneur with your own start-up company?
2. Why do you think so many people decide to start their own companies?

C. Global Reading
In the introduction, the main idea of a text will be signposted by a sentence that states the
main opinion or topic. To make a transition in the text, writers often signpost new ideas using
words such as firstly, secondly, and finally. Paying attention to these can help you understand
how a text is organized.
Read the introduction to "Starting on the Path to Success?" only.
Which sentence tells you the main focus of the text?
From the introduction, check () the things you expect the text to cover.
 Successful start-ups
 The failure of start-ups
 The history of traditional businesses
 Examples of how businesses can be successful
 The most successful entrepreneurs today

3. Read the text and find the following:

1. Two ways in which start-ups can create products (paragraph 2)
 2. Three reasons why companies might give people free products (paragraph 3)
3. Three reasons for start-ups failing (paragraph 5)
4. Two additional reasons for start-ups failing (paragraph 4)

STARTING ON THE PATH TO SUCCESS?

1. It once took a company a long time to be worth a billion dollars. Today, dozens of tech
start-ups are achieving this level of economic success within their first five years. While
successful tech start-ups have the ability to change traditional industries, many are still not
successful. Companies should focus on easy access, the use of free content, creating a product
people need, and the time it takes to be successful.
2. So what is needed to be a successful start-up? Firstly, you do not have to create a
completely new product to sell. One approach many entrepreneurs take is just to improve
access to products that already exist. This can be via an online shop, like Amazon, selling and
delivering a huge range of products around the world. Another approach is by changing how
we use a product. For instance, the industry of streaming movies and TV shows has seen big
increases in the last decade. Many previously successful companies have now closed because
of their decision to continue to sell the old physical products that people were demanding
much less. Knowing when and how to adapt to the changing world is vital—when was the last
time you rented a DVD through the mail?
3. Another recent change is the increased demand for free products. Why has this proven to be
such a successful concept? Firstly, there is the obvious point that most people like receiving
something for free. However, giving everything away for free is clearly not a good business
model. The second main reason is that companies can give people a small part of a product
for free and then charge for more features. This is called a premium model. One issue start-
ups find difficult is that very few people will have heard of their product or service. By giving
a certain amount away for free, you can get people interested and willing to pay for more or
further access. Lastly, companies don’t need to spend as much on advertising because people
are likely to tell their friends and family about free products. If you give people free products
or free access for sharing posts on their social media, then you can reach a lot more people
both quickly and cheaply.
4. Despite there being some examples of extremely successful start-ups in recent years, the
number of start-ups that fail remains high. So why do so many new businesses fail? One
reason might be that there isn’t a need for the company’s product. One priority any new
company should have is to solve a problem that exists. For example, online shopping solved
the problem that many people just do not have time to shop in stores. Secondly, companies or
products fail because it is the wrong product for the time. Minidiscs, which were smaller
versions of CDs, did not do well at first because, just as the cost became lower, MP3s became
popular and people bought them instead.
5. There are a number of other key reasons why a start-up business fails. Firstly, many new
businesses simply fail because they do not have enough money available. It can be expensive
to run a business, especially at first when you have to spend money on fees to advertise your
brand. Many small businesses simply run out of money before they become successful.
Secondly, and connected to this, building a good brand can take a long time. It can also take a
lot of money to build a reputation before a business becomes successful. Airbnb, which found
it difficult at first, managed to improve their brand and reputation by using professional
photography. Without the time or money to spend in this way, the company might not be
successful today. Thirdly, there isn’t always space for the product in a crowded industry.
When a market is already nearly full, it can be very difficult to get customers to notice you.
People already have loyalty to a brand, and unless you are very different or unique, then a
business will find it difficult to be a success. Companies that can survive more than five years
have a much higher chance of going on to become successful and profitable businesses.
6. So what makes some start-ups so successful? Understanding what customers want, timing
your product correctly, promoting your company cheaply but well, and having enough money
to survive the first five years are important for a start-up to be successful. A fantastic idea five
years too early will probably fail. A company with a fantastic product but a lack of money will
probably fail. Many things need to fall into place at the right time to put you on the path to
success.
D Close Reading
Read Starting on the Path to Success? again. Choose the correct ending for each sentence.
1. Companies often need to
a) grow to be successful
b) know when to adapt
c) operate online to be successful.
2. Giving a product away for free may
a) cost a lot of money
b) save money on advertising
c) not be possible for start-ups.
3. Minidiscs did not do well because
a) the technology
b) it was cheap
c) another product became available.
4. New companies often need
a) support from celebrities to be successful
b) exciting new products to be successful
c) time and money to be successful.

E Critical Thinking
1. Do you think Starting on the Path to Success? has good advice for entrepreneurs?
Why / why not?
Your answer:
2. Why do we see so many new start-ups despite the high chance of failure?
We see lots of new start-ups because ...
3. Would you rather work for a small start-up or a big business? Why?
I’d rather work for ... because ...
Vocabulary Development
Business Verbs
Match the words in bold with the correct definitions.
1. advertise (v) a. to share thoughts, feelings, or information by speaking or
writing
2. communicate (v)
b. to put money into a company or property in order to make
3. employ (v) more money
c. to make or change something so that it is suitable for a
4. invest (v) particular person
5. own (v) d. to try to persuade people to buy a product or service by
announcing it on television, on the Internet, in newspapers, etc.
6. personalize (v) e. to tell someone you will definitely do something
7. promise (v) f. to give a spoken or written summary of something
g. to pay someone to do work for you
8. report (v) h. to have an item or possession

Complete the sentences with words from Exercise 1 in the correct form.
1. It’s important for companies to provide opportunities for customers to __________ by
phone or by e-mail.
2. Very successful companies do not need to __________ because everyone already
knows their brand.
3. It’s important for companies to __________ their money in improving their products.
4. Customers want businesses to __________ their service. They want to be treated like a
valued individual.
5. The best companies __________ the best people to work for them.
6. When a company __________ a successful brand, it becomes more valuable.
7. It’s important for companies to __________ to their staff how well they are doing.
8. Businesses should not __________ customers a service they may not be able to
deliver.

Check () the sentences you think are true in Exercise 2. Compare your list with a partner
and discuss why you think each statement is or is not true.
I think sentence one is true because ...
Academic Words Vocabulary
1. Match the words in bold with the correct definitions.
1. concept (n) a. continuous or regular over a long period of time
2. constant (adj) b. happening at the beginning of a process
3. economic (adj) c. relating to trade or money, usually in business
4. initial (adj) d. money used in a way that may earn you more money
5. investment (n) e. to make something stay the same
6. maintain (v) f. not the same as anything or anyone else
 7. priority (n) g. something important that must be done first or needs more
8. unique (adj) attention than anything else
h. an idea for something new

2. Complete the sentences with words from Exercise 1.

1. A ____________ business model will always be successful because there is nothing
else like it.
2. Businesses find it hard to keep up with ____________ changes in technology.
3. Most businesses make decisions for financial or ____________ reasons.
4. He thought of the ____________ and then employed people to create the product.
5. One ____________ for companies should be to keep customers happy.
6. It’s important to make the ____________ effort for a company to be successful later.
7. The company needs ____________ to grow. We don’t have enough money at the
moment.
8. It is important to ____________ interest in what you do as a job.

Discuss these questions with a partner.

1. Do you have any ideas for a unique business concept?
One idea I have is...
I think it is a unique concept because...
2. How could you get investment in the project?
To get investment in the project I would...
Another possibility would be to...

Grammar: Modals of Obligation and Necessity

Must, need to, and have to show there is a strong obligation to do something.
Form and Examples:
 Subject + must + base form
Businesses know that they must provide good customer service.
 Subject + need to/have to + base form
You need to think about the things customers value.
Mustn’t shows there is a strong obligation not to do something.
Don’t have to and don’t need to show that it isn’t necessary to do something.
Form:
 Subject + mustn’t + base form
Companies mustn’t ignore their customers.
  Subject + don’t have/don’t need to + base form
Companies don’t need to spend as much on advertising.

1. Choose the correct option to complete the sentences.

1. Companies need to / must deal with complaints quickly or they will lose customers.
2. Companies have to / mustn’t invest in technology to communicate with customers
online.
3. Expensive products don’t need to / must be good quality for people to buy them.
4. Companies need / don’t have to look after existing customers carefully because it is
expensive to get new customers.
5. Some companies mustn’t / don’t need to invest in technology because their
customers like traditional products.
2. Complete the sentences with the correct form of the modals and verbs in parentheses.
1. We need / advertise more. No one knows our products.
2. Companies must/ promise customers products they cannot build.
3. She have / wear a uniform for work. She wears her own clothes.
4. People need / use travel agents anymore because everything can be booked online.
5. You have / have a unique business idea. You can make an old idea better.
6. We must / maintain excellence in our customer service or people will complain.
7. Start-ups have / spend their money carefully or they will run out of money.
8. Companies need / communicate with customers and e-mail them regularly.

3. Rewrite the sentences with the correct form of mustn’t, must, have to, don’t have to,
need to, or don’t need to. Sometimes more than one option is possible.
1. It’s not important for him to invest in good offices.
2. I think it’s necessary that she complains online.
3. It would be a really bad idea to delete that e-mail.
4. They are not worried about how expensive it is.
5. It’s terrible when companies take a long time to answer the phone.
6. It’s very important that schools have a website that is easy to use.