7. Business Planning

Question 1

What is a business plan?

Answer 1

This is a document provided to lenders or investors which sets out the reasoning and evidence to obtain funding.

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

Question 2

Tell me about your involvement with business planning?

Answer 2

In my current capacity, my involvement with business planning has been fairly limited. I understand the importance of researching, client communication, networking and reporting figures to line managers and stakeholders.

Question 3

What does your employers business plan involve?

Answer 3

1) Researching - Potential opportunities.
2) Client communication - Discussing potential projects
3) Networking - Attending events such as Schools and Academies Show
4) Reporting figures

Question 4

Why are typical things you would find in a business plan?

Answer 4

• Executive summary
• Business description
• Market analysis
• Product development
• Marketing strategies
• Financial plans

Question 5

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

Answer 5

Short - Provide a high level of service
Long - Build relationships with new clients to continue the business and new revenue streams

Question 6

What is Porters 5 Forces?

Answer 6

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

1) Competitive rivalry
2) Supplier power
3) Buyer power
4) Threat substitution
5) Threat of new entry

Question 7

How have you measured performance on a project?

Answer 7

Key Performance Indicators (KPI) - Reviewing the project programme and ensuring the contractor was on schedule, I was able to measure the project against how well the project was meeting the KPIs.

Question 8

What is SMART criteria?

Answer 8

SMART goals are:

S - Specific
M - Measurable
A - Attainable
R - Relevant
T - Time specific

Question 9

What is a SWOT / PEST analysis?

Answer 9

SWOT

S - Strength
W - Weakness
O - Opportunities
T - Threats

PEST

P - Political
E - Economical
S - Social
T - Technological

Question 10

Why are these useful?

Answer 10

They present a business standing and position (whether weak or strong)

Informs about both internal and external factors that affect a firms success and failure.

Provides a mechanism for identifying threats and opportunities.

Question 11

When have you used these in your role?

Answer 11

SWOT - When reviewing CIF projects from the previous year.

Question 12

Explain the objectives of the RICS Covid-19 Recovery Business Plan

Answer 12

Delivered sustainability and resilience, enabling the institution to maintain strategic focus and continue supporting professionals.

Question 13

What is the strategic review called?

Answer 13

Define our Future

Question 14

What is business continuity and why is this important?

Answer 14

This is an organisations readiness to continue functioning during times of disruption.

It is important as it reduces the potential impact of disruption. It minimises downtime. It helps maintain resilience.

Question 15

Explain how the apprenticeship levy works?

Answer 15

This is tax paid by employers. This is then stored in a fund to help pay for apprenticeship training.

Question 16

Why might the apprenticeship levy by beneficial to a business?

Answer 16

Gives employers greater control of training.

Increase quality of apprenticeships.

Question 17

When is the apprenticeship levy payable?

Answer 17

Employers with a payroll of over £3m must pay a 0.5% levy of their total payroll.

Question 18

Why is business continuity important?

Answer 18

Ensures an organisation stays on its feet during disruption.

Allows an organisation to respond quickly in times of crisis.

Question 19

How do you use networking to further your business planning skills?

Answer 19

Improve self confidence

Increase professional support

Open new business opportunities

Question 20

Why is relationship building important for your role?

Answer 20

Could open new business opportunities.

Access to experienced resources.

Question 21

How could you check a companies financial standing pre-tender?

Answer 21

Credit check (D&B).

Companies House.

Google Search.

Question 22

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

Answer 22

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.”