1 - Business Planning

Question 1

What is a Business Plan?

Answer 1

A document that sets out how a business intends to operate over a period of time, in the context of income and expenditure.

Question 2

What would you expect to see in a Business Plan?

Answer 2

• Vision and Mission Statements
• Products and Services
• Financial Forecasting
• Responsibilities and Targets
• Marketing Strategy
• SWOT or PESTLE Analysis

Question 3

What is a Financial Benchmarking Ratio?

Answer 3

These are indicators that give insight over the financial performance of a company.

Question 4

What is the Liquidity Ratio? What is this also known as?

Answer 4

Indicator of the total liquid assets a company has compared to liabilities. Known as the ‘Acid Test’ or ‘Quick’ ratio.

Question 5

What is the Profitability Ratio?

Answer 5

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.

Question 6

What is the Gearing Ratio?

Answer 6

The proportion of assets invested in a business that are financed by long-term borrowing.

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.

Question 7

What are Stace’s Values?

Answer 7

Committed to integrity
Progressive in nature
Collaborative in style

Question 8

What is Stace’s Purpose?

Answer 8

Deliver market-leading professional services and to foster an environment where our people can develop and grow.

Question 9

What is Shareholder Equity?

Answer 9

The amount returned to the shareholders should the company be liquidated

Total Assets - Total Liabilities

Question 10

What are the two types of Accounting techniques?

Answer 10

Accrual - When things are billed/invoiced.

Cash - When money is physically exchanged.

Question 11

Can you explain some company structures?

Answer 11

• 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.

Question 12

Can you tell me some different types of Business Plan?

Answer 12

• 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.

Question 13

What are the main types of insolvency?

Answer 13

• Company Voluntary Agreements
• Administration
• Liquidation
• Receivership

Question 14

What is benchmarking?

Answer 14

Performance is measures against another similar project.

Question 15

What is a PESTLE Analysis?

Answer 15

Understand / review external forces
-Political
-Economic
-Social
-Technology
-Legal
-Environmental

Question 16

What is a SWOT Analysis

Answer 16

Analysis or planning tool to measure
Strength
Weakness
Opportunity
Threat

Question 17

What are smart targets / objectives?

Answer 17

Specific
Measurable
Achievable
Realistic
Time related

Question 18

What is an investment appraisal?

Answer 18

Assess whether it would be a worthwhile investment
Rate of return
Payback period
Net present value

Question 19

What is an Organogram?

Answer 19

An organisational chart which shows communication and contractual lines within the project team.

Question 20

What is a business strategy?

Answer 20

An outline of actions and decisions a company plans to take to reach its business goals and objectives.

Question 21

What is strategic planning?

Answer 21

The managerial process of developing and maintaining objectives, resources and changing market opportunities.

Question 22

What are Stace’s business objectives?

Answer 22

• Develop our key areas of expertise
• Build relationships

I have led a project for a new client which has seen repeat work.

Question 23

What are the types of company growth?

Answer 23

Organic - Slow recruitment
Merger / Acquisition

Question 24

How has recent economic factors affected Stace?

Answer 24

Tender price inflation of construction materials. This has led some clients to not pursue ventures.

Question 25

Why are Timesheets important?

Answer 25

They show current capacity of individuals allowing to help projects that are potentially understaffed.

Question 26

How do Stace Bid for a Project?

Answer 26

• Understand bid requirements
• Produce a Fee Resource Schedule
• Provide an outline programme (if required)
• Outline scope of services and our T&C’s
• Provide PI, EL and PL

Question 27

What issues would a company experience with a high staff turnover?

Answer 27

• Increased recruitment costs
• Increased training costs
• Inconsistent production / performance
• Poor staff morale
• Loss of customers / repeat business

Question 28

Examples of fee earning and non-fee earning staff?

Answer 28

PM QS BS HS
Admin staff

Question 29

How can a business plan help a company remain profitable?

Answer 29

• Assist with securing new funding
• Highlight key business objectives
• Assist with responding to change
• Support forecasting and budgeting

Question 30

What is a business model?

Answer 30

Strategic plan of how to make money