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Srpply & Demand

Gross or net?
I just rvatched a programúre on T\r in rvhich a group
of r.oung people r'i,ere learning hou'
to become successful in the business u.or1d. At one point, thev met Richarcl Branson, one
of Britaint rnost famous l¡usiness entrepreneurs.
Branson, u,ho is most fhmous for his \irgin airline ¿nd record companies, u.as teliing
the voung people that he h:rdn't been able to understand the difltrence befii,een gross
and net until he u.as 50 vears old. I lr.as surprised that this tnan, u.ho'd started his first
successful business venture u.hen he rvas 1ó, had never rnirnaged to master one of the
rnost important aspects of running a business.
So r.vhat is the difference betl¡..een gross and net? A gross amount of monev is the
total amount before taxes or costs have been tirken out. A net ainount of monet- is the
total amount after taxes or costs have been taken out. It sounds simple but itls more
complicated than it sounds. I knorv this because I mn a business. Lrnfortunateh.,, mv
business isn't as successful as Richard Branson's so I r'r.on't be joining hirn in tlte Forbes
2009 list of billionaires in the near flture.
In the TV prosramme, Richard told the )'ounq^ lvc¡uld-be entrepreneurs that they had
to do everl-thing thev could to succeed. He said that if they did faii, then thel'rvould'r.e
le,rrnt a lo¡ nnd could rn lgrin.
I think this is the qualiq, that has rnade Richard Branson so successftil. He sees life
as a series ofchallenges that har-e to be faced and
overcorne. If he doesn't succeed then he tries Glossary
rrgain. Apart from his l¡usiness achievements, for entrepreneur (noun) - someone who uses
money to start bus nesses
r.vhich he u.as knightecl in 1999 for'senices tcr
entrepreneurship', he has tried to break ll,orld
venture (noun) - a new business or activity
master (verb) - to learn something so that
records on sea ancl in the air. Not bad for someone
you know it or can do it well
r.vhose business empire began lr.ith a nragazine called
would-be ladjective) - hoping or trying to
Student, ancl u.ho tlidn't l¡ros. the dill'erence benr.een do something
¡¡ross and net Lrntil he u-as 501

'-jnit": @)
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