6 - Business planning

Question 1

How could you develop your business if working for yourself?

Answer 1

Networking
Website
Actively reach out to perspective clients
LinkedIn premium
Recommendations - get your name in rooms

Plan for growth:
Training
hiring of additional staff
Expansion plan

Question 2

What is the Construction Industry Scheme?

Answer 2

CIS is a scheme create my the HMRC designed to minimise tax evasion within the construction industry.
The contractor dudcts tax from payments to subbies.

Question 3

What is the difference between sole trader, partnership, limited and a LLP

Answer 3

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 loses

Partnership - a business of organisation in which 2 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 SH’s liability is limited to the capital they originally invested. If the company becomes insolvent, the SH’s personal assets remain protected. Shares in a private limited companyare not offered to the general public

Limited liability partnership - LLP - is a partnership in which some or all partners have limited liabilities. One partner is not responsible or liable for another partners misconduct or negligence

Question 4

What is a balance sheet?

Answer 4

A financial statement of the companies assets, liabilities and equity at a point in time.

It shows a businesses assets and liabilities at a given date, usually at the end of the financial year

Question 5

What does IFRS mean?

Answer 5

International financial reporting standards

Question 6

How do you work out working capital?

Answer 6

Working capital = current assets - current liabilities