Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

apc residential hc > 3 - Business Planning > Flashcards

3 - Business Planning Flashcards

This competency is about the principles and tools of business planning.

1
Q

Business Planning - Extract from Candidate Guide - Aug 2018 (updated Feb 2022)

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a business plan?

A

A business plan is a document provided to lenders/investors which sets out the reasoning and evidence to obtain funding.

The plan will highlight the reasons for the set up of the business as well as provide an outline of the goals and objectives along with how and why these are achievable.

The plan will assess the benefits and value of the business idea for investors/lenders.

The plan will cover: the main idea, objectives, sales reports, financial forecasts, any potential issues, goals and dates to achieve said goals.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the main headings you would see under a business plan?

A
  • Executive summary
  • Company description
  • Market analysis
  • Competition analysis
  • Description of organisation structure
  • Breakdown of services offered
  • Marketing plan strategy
  • Funding requests
  • Financial records
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What headings would you find within a business plan ?

A
  • Executive summary
  • Company description
  • Market analysis
  • Competition analysis
  • Description of organisation structure
  • Breakdown of services offered
  • Marketing plan strategy
  • Funding requests
  • Financial records.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are the short, medium and long term goals of your company ?

A

Short term - Continue to provide a high level of service
Medium term - Continue to have a large rate of enquirers during COVID 19 and recover from COVID 19
Long term goals - Build relationships with new clients to continue the business, continue new revenue streams

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How would you prepare a long term strategy?

A
  • Create a description of the strategy
  • Identify the key stakeholders and their needs
  • SWOT analysis – Strengths, Weaknesses, Opportunities and Threats
  • PEST analysis – Political, Economical, Social and Technological Factors
  • SMART goals – Specific, Measurable, Attainable, Realistic and Time
  • Prepare a marketing strategy – identify audience, market research, promotions etc.
  • Organise resources – funding, staff etc
  • Review performance indicators – areas of development, improvement and growth
  • Monitor and review the progress on a regular basis.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How can/have you measure performance on a project?

A

With the use of KPI. On a recent project, one of my clients key performance indicators were time. By regularly reviewing the project programme and ensuring the contractor was on schedule, I was able to measure how well the project was meeting the KPI’s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the purpose of a business plan?

A

A business plan is a document usually provided to lenders and investors. It sets out the reasoning and evidence to obtain funding. The plan should highlight the reasons for set up as well as provide an outline of goals and objectives as well as assess the value of the business idea.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the SMART criteria you mention?

A

SMART goals are Specific, Measurable, Attainable, Relevant and Time specific

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is Porters 5 forces?

A

A tool to analyse the attractiveness and profitability of a business. The forces include:

1) Competitive Rivalry (amount of competition)
2) Supplier power (how easy it is for supply cost to increase)
3) Buyer power (how easy it is for buyers to drive your prices down)
4) Threat Substitution (likelihood of customers finding a different way of doing what you do)
5) Threat of new entry (the ability for others to enter the market)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How does a feasibility study differ to a business plan?

A

A feasibility study will carried out before starting a business to determine the viability of it.

A business plan will then detail how it operates and done on the basis that the feasibility study was positive.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the difference between a Sole Trader, Partnership, Limited, and a LLP?

A

Sole Trader A person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses (unlimited liability).

Partnership A business organization in which two or more individuals manage and operate the business. Both owners are equally and personally liable for the debts from the business.

Limited In a limited company, the shareholders’ liability is limited to the capital they originally invested. If such company becomes insolvent, the shareholders personal assets remain protected. Shares in a private limited company are not offered to the general public (distinguishing it from a public limited company - plc.)

Limited Liability Partnership (LLP)A limited liability partnership (LLP) is a partnership in which some or all partners have limited liabilities. It therefore exhibits elements of partnerships and corporations. In an LLP, one partner is not responsible or liable for another partner’s misconduct or negligence.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How would you assess a contractors financial accounts?

A

Request a copy of the contractors company accounts for the last 3 years which would include the Profit & Loss Statement, Balance Sheet and Cash Flow Statement. I would then be able to assess:
• If the contractor had been profitable in the last few years.
• Calculate their liquidity ratio by looking at their assets vs their liabilities to see if they would be able to cover losses under a contract and stay solvent.
• I would always caveat any advice given to a client on a contractors financial position and recommend that further advice is sought through financial reports and a qualified accountant.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How could you check a companies financial standings pre tender ?

A

A credit check, check companies house, news articles and a google search.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What do you look for when analysing consultant fee proposals?

A
  • Total fee and how it was calculated.
  • Level of resources; seniority, experience and allocation;
  • Fee drawdown;
  • Agreement of client Terms and Conditions;
  • Agreement of client payment terms / period;
  • Agreement of scope of services;
  • Exclusions;
  • Assumptions e.g. programme.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the main headings you would see under a business plan?

A
  • Executive summary
  • Company description
  • Market analysis
  • Competition analysis
  • Description of organisation structure
  • Breakdown of services offered
  • Marketing plan strategy
  • Funding requests
  • Financial records
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What would you need to set up as a company ?

A
  • public liability.
  • buildings insurance.
  • employer liability cover.
  • directors and officers cover.
  • contents insurance.
  • business interruption insurance
  • register with companies house
  • suitable policies
  • register with RICS for regulation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What might be included in a SWOT analysis?

A

SWOT analysis is analysing Strengths, Weaknesses, Opportunities and Threats. Competitors, prices of services, and consumer trends

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

How often might you update a business plan?

A

Business plans should be reviewed and possibly updated at least once a year, especially for younger companies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are the different types of business plans?

A

Start up plan – how the business will operate long term
Annual Growth Plan – financial, marketing and operations
Scenario Plan – for companies in rapidly changing industry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Do you know what is included in your employer’s business plan?

A
  • Sustained growth

* Meet market requirements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are some of your business targets & objectives for the current year?

A

Specific to own company*

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Give me some examples of some new business areas you could considering moving into.

A
  • 3D Scanning
  • Drones
  • Cladding replacement
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Explain how you manage your own time to ensure you deliver projects in a cost-effective manner.

A

I set out my in house programmes and align with my diary and shared calendar. I logically assess inspection locations and delegate to individuals who live nearer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What current challenges is Covid and/or Brexit bringing to Business Planning?

A

Brexit has caused a shortage of staff and materials. It has changed the prices of material and resources causing prices to increase. This has also caused issues with working from home, companies becoming insolvent and closing down.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What goes in a long term strategy?

A

A description of the strategy, identification of stakeholders, SWOT/PEST/SMART, potential marketing strategies, resources, KPI’s, regular review.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

How can/have you measure performance on a project?

A

With the use of KPI. On a recent project, one of my clients performance indicators were time. By regularly reviewing the project programme and ensuring the contractor was on schedule, I was able to measure how well the project was meeting the KPI’s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What is your understanding of a succession plan?

A

The procedures in place to replace senior members of the team/company.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is a mission statement?

A

Formal summary of the aims and values of a company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What is a fee forecast?

A

Allows the future financial position to be assessed and ensures records are maintained for potential fees.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What is a LLP?

A

A limited liability partnership. This requires 2 or more members. Each member pays tax on their share of profits and is liable for their responsibilities within the partnership.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What is a limited company?

A

General form of incorporation that limits the liability undertaken by shareholders. The liability of a company’s members is limited to their stake in the company.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

What is a sole trader?

A

A Self employed person running their own business as an individual. There is no separate legal identity to the owner. The sole trader is liable for the business’s debt.

34
Q

What is the difference between LLP and Ltd?

A

Partnership must have a minimum of 2 partners, a Ltd company can be non-profit/charity whereas LLP is always profit making. Ltd pays Corp tax and LLP doesn’t as they are classed as self employed.

35
Q

What is a SMART Goal ?

A

To make sure your goals are clear and reachable, each one should be:

  • Specific (simple, sensible, significant).
  • Measurable (meaningful, motivating).
  • Achievable (agreed, attainable).
  • Relevant (reasonable, realistic and resourced, results-based).
  • Time bound (time-based, time limited, time/cost limited, timely, time-sensitive).
36
Q

What is PEST analysis ?

A

Definition: PEST Analysis is a measurement tool which is used to assess markets for a particular product or a business at a given time frame.

PEST stands for :
•	Political
•	Economic
•	Social
•	Technological factors

. Once these factors are analysed organisations can take better business decisions.

37
Q

What are the different types of business set ups ?

A
  • Sole Trader
  • Partnership
  • Limited company
  • Limited liability company
38
Q

Have you heard of SWOT analysis ?

A

SWOT analysis is a strategic planning technique used to help a person or organization identify strengths, weaknesses, opportunities, and threats related to business competition or project planning.

39
Q

Where would you find details of a company’s assets ?

A

Business assets are itemized and valued on the balance sheet, which can be found in the company’s annual report. They are listed at historical cost, rather than market value, and appear on the balance sheet as items of ownership.

40
Q

What is a business plan ?

A

A business plan is a formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals.

41
Q

What would the contents of a business plan be ?

A

A full guide to the business plan contents including the standard business plan format for these 10 basic elements:

  • Executive summary
  • Company description
  • Market analysis
  • Competition analysis
  • Description of organisation structure
  • Breakdown of services offered
  • Marketing plan strategy
  • Funding requests
  • Financial records
  • Appendix
42
Q

What affect has Covid 19 had on your business planning ?

A

High contractor demand, material delays, labour shortages etc

43
Q

What new business could you move into as an opportunity ?

A
  • Digital scanning
  • Drones
  • Party wall
  • Etc
44
Q

What is a SWOT analysis?

A 
It is a structure analysis of the market (demand side). It is used to analyse internal :
•	Strengths
•	Weaknesses
•	Opportunities
•	Threats
45
Q

What is a PEST analysis?

A 
This is a structured method of analysing the key factors influencing markets (the
 demand side).
 ▪︎These factors are;
 ▪︎Political influences
 ▪︎Economical influences
 ▪︎Socio demographical influences
 ▪︎Technological influences
 ▪︎Environment
46
Q

What are Porter’s five forces?

A

They are used to analyse the competitiveness of the industry. They include :

 ▪︎Barriers to entry
 ▪︎Substitute products
 ▪︎Bargaining power of suppliers
 ▪︎Bargaining power of customers
 ▪︎Rivalry among existing firms
47
Q

What do you find in a Business plan?

A
  • Executive summary
  • Company description
  • Market analysis
  • Competition analysis
  • Description of organisation structure
  • Breakdown of services offered
  • Marketing plan strategy
  • Funding requests
  • Financial records
48
Q

How do companies write a business plan?

A

The analysis of the markets and industry enable companies to identify business opportunities and critical success factors in their markets and industry.

Companies should focus their resources in developing their competences in the critical success factors.

This then leads to the development of goals and objectives with their associated strategies and actions.

49
Q

What is contained in an appointment document?

A
  • Clarification of work scope
  • Agreed fee bid (aligned to work scope)
  • Terms of Business
  • Contact Details
  • Detail of CHP
  • Date
  • Unique identifier
  • Fee basis
  • Inclusions
  • Exclusions
50
Q

What are the three levels of business management?

A
  • Corporate Level
  • Management Level
  • Operational Level
51
Q

Why would you create a business plan?

A
  • To help achieve funding
  • Set business objectives
  • Create a business direction
52
Q

What is a Mission Statement?

A

A formal summary of the company aims and values.

53
Q

What is a Key Performance Indicator?

A

A measurable value to determine the success of project/venture.

54
Q

Why is Market Analysis important?

A

Increase sales through identifying areas of strength, and aligning these with opportunities.

55
Q

What is PESTLE analysis ?

A

Marketing framework or tool used by marketers to analyse and monitor the external marketing factors that have an impact on an organisation. Resulting information then used to identify threats and weakness used in a SWOT analysis.

  • P- Political
  • E- Economic
  • S- Social
  • T- Technological
  • E- Environmental
  • L- Legal
  • E- Ethical
56
Q

Can you give me some example of the Political Factors from PESTLE analysis ?

A 
Examples include :
•	Government policy
•	Political stability or instability
•	Foreign trade policy
•	Tax policy
•	Labour law
•	Environmental law
•	Trade restrictions
57
Q

Can you give me some example of Economic Factors from PESTLE analysis ?

A 
Examples include :
•	Economic growth
•	Interest rates
•	Exchange rates
•	Inflation, 
•	Disposable income of consumer
58
Q

Can you give me some example of Social Factors from PESTLE analysis ?

A 
Examples include :
•	Population growth
•	Age distribution
•	Health consciousness
•	Career attitude
59
Q

Can you give me some example of Technological Factors from PESTLE analysis ?

A

Examples include :
• New ways of producing goods and services
• New ways of distributing goods and services
• New ways of communicating with target markets

60
Q

Can you give me some example of Environmental Factors from PESTLE analysis ?

A 
Examples include :
•	Availability of raw materials
•	Pollution targets
•	Doing business as an ethical and sustainable company
•	Carbon footprint targets
61
Q

Can you give me some example of Legal Factors from PESTLE analysis ?

A 
Examples include :
•	Health and Safety
•	Equal opportunities
•	Advertising standards
•	Consumer rights and laws
•	Product labelling and product safety
62
Q

Can you give me some example of Ethical Factors from PESTLE analysis ?

A 
Examples include :
•	Fair trade,
•	Modern Slavery acts
•	Child labour
•	Corporate social responsibility
63
Q

What is a circular economy ?

A

A circular economy is “a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible”.

64
Q

What are the contents of a business plan ?

A
  • Overview
  • executive summary
  • general company description
  • opportunity
  • industry and market
  • strategy
  • team
  • marketing plan
  • operational plan
  • financial plan
  • appendix
65
Q

What is your companies short and long term goals?

A

Short term is to recover and move on form COVID affects.

Long term to continue to serve out existing a new clients, considerations of future market spaces.

66
Q

How did you generate the fee? what other methods could you use?

A
  • Hourly charge
  • % of project value
  • Fixed fee
67
Q

How would this feedback have been dealt with if the feedback was negative?

A
  • Discuss initially with the client
  • Consider in reflection what could be done differently
  • Implement these into future project and share with the team as lessons learnt
68
Q

How do you protect your client when you are advising them, but they don’t know what they want?

A

Discuss their requirements with them if there is a brief this may require some development. For example, they may request a building survey of a premises they are about to take a new lease on and after discussing with them, a Schedule of Condition may be more beneficial as this can be appended to the lease and limit a dilapidations claim at determination. Their objectives and goals will need to be reviewed so the right service agreement is prepared.

69
Q

How do you protect yourself?

A
  • Ensure that all correspondence is documented, phone calls, emails and messages.
  • Ensure there is a service agreement in place which is clear, transpiration and understood by myself and the client.
  • I will need to ensure I am competent to do the work and have suitable PII cover.
  • Agree any limitations for the survey, agree timescales, a break down of the fee so its clear (fee proposal) and reference my firm operates a complaint handling procedure.
70
Q

What do you do to help you business remain solvent ?

A
  • Forecasting
  • Reviewing profit margins
  • Marketing
  • Ensuring repeat custom
  • Working within my competence.
71
Q

What could you do to help evaluate the business ?

A
  • SWOT Analysis
  • PESTLE Analysis
  • Cash flow forecasting
  • Credit Check
  • Pipeline review
72
Q

What is a business plan and when would you use it ?

A

A business plan is a formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals. It is used when seeking funding or expansion.

73
Q

What is the contents of a business plan ?

A
  • The overview
  • Executive summary
  • General company description
  • SWOT
  • PESTLE
  • Industry and market
  • Strategy
  • The team
  • Marketing plan
  • Operational plan
  • Financial plan
74
Q

What is solvency ?

A

The possession of assets in excess of liabilities; ability to pay one’s debts.

75
Q

When would you use a business plan ?

A

Seeking funding or expansive to justify and explain the case for this.

76
Q

What is a SWOT analysis?

A

SWOT analysis is analysing Strengths, Weaknesses, Opportunities and Threats. Competitors, prices of services, and consumer trends

77
Q

Why might you use this (SWOT Analysis) ?

A

Within a business plan

78
Q

What is the purpose of a business plan?

A

The 3 most important purposes of a business plan are :

  • To create an effective strategy for growth
  • To determine your future financial needs
  • To attract investors and lenders
79
Q

How often might you update a business plan?

A

Dependent on market conditions, growth and the direction of the business. An example could be every 12 months.

80
Q

Briefly explain your employer’s cost recovery fee model.

A

Cost recovery is a method of accounting in which a business only records the revenue it earns from a transaction at the time that the client has paid enough of the invoice that the business has recouped all its costs on the transaction.

apc residential hc (40 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions