6) Business Planning - L1 Mandatory Flashcards
My Level Answer
Through my experience as a surveyor, I am aware of why companies require business plans and how they play a key part in setting and achieving targets. I am familiar with RICS’ business plan and remain up to date with RLB’s 10-year strategy, actively contributing to ensure performance objectives are met.
I am aware of RLB’s business plan, RLB 2030 strategy and have undertaken CPD on Business Planning.
What is a business plan?
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.
Why is it important for a company to have a business plan?
- To communicate with employees
- To share with external stakeholders/shareholders/lenders/investors – to get funding.
- To set out a clear direction to compare against your competitors
- To set goals objectives and how they will be achieved
What are the key elements included within a business plan?
Executive summary
Company description
Market analysis
Competition analysis
Description of organisation structure
Breakdown of services offered
Marketing plan strategy
Funding requests
Financial records
Why does a company want to have a business plan?
What is your company’s business plan and how do you contribute to it?
What is your company’s organisational structure?
What is a SWOT analysis?
Why is a SWOT analysis important?
What is a PESTLE Analysis?
Why is a PESTLE analysis important?
What is the difference between a Sole Trader, Partnership, Limited, and a LLP?
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 is your company (RLB) owned?
RLB is a Private Limited Company which is employee-owned.
This ownership structure allows employees to become shareholders.
