1 - Business Planning Flashcards
What is a Business Plan?
A document that sets out how a business intends to operate over a period of time, in the context of income and expenditure.
What would you expect to see in a Business Plan?
- Vision Statement
- Company Overview
- Goals/Methods for achieving it
- SWOT/PESTLE/Other analysis
- Expected operating costs, revenue, and margin
- Costs to date and forecast spending
- Target margins etc.
- Marketing Strategy
- Business Development Plan
What is a Financial Benchmarking Ratio?
These are indicators that give insight over the financial performance of a company.
What is the Liquidity Ratio? What is this also known as?
Indicator of the total liquid assets a company has compared to liabilities. Known as the ‘Acid Test’ or ‘Quick’ ratio.
What is the Profitability Ratio?
Indicator on the ability for a company to generate a profit. Most common is the ‘Gross Profit Margin’. I.e. it looks as how easy the company can make money from it’s operations, considering its expenditure.
What is the Gearing Ratio?
Measure the proportion of borrowed money as part of a company’s assets. More borrowing = high gearing.
I.e. if a company is heavily funded by debt, that debt must be paid so it’s more risky. Dividends don’t have to be if the funding is through equity.
What is the T&T Vision?
Transforming performance on the world’s most impactful programmes.
What are the T&T Values?
- Love a challenge
- Stronger together
- Bring out the best in everyone
What is T&T’s Purpose?
Making the difference and transforming performance for a green, inclusive, and productive world.
What is Shareholder Equity?
The amount of equity in a business owned by shareholders.
What are the two types of Accounting techniques?
Accrual - When things are billed/invoiced.
Cash - When money is physically exchanged.
Can you explain some company structures?
- Hierarchical – Traditional power at the top, with everyone reporting up the chain.
- Matrix – People have both a line manager but also a matrix reporting function.
- Functional – Different departments all report to the CEO via functional heads.
- Flat – Smaller organisations where nearly all employees are at the same level.
Can you tell me some different types of Business Plan?
- Strategic - Looks at the high level key mission, and the company’s strengths and weaknesses in the market.
- Corporate - The specifics of how the business will achieve the strategy
- Departmental - Sub-set of the corporate business plan.
What are the main types of insolvency?
- Company Voluntary Agreements
- Administration
- Liquidation
- Receivership
