Business planning Flashcards
What is a business plan?
It is a written document that describes your business. It covers objectives, strategies, sales, marketing and financial forecasts.
A business plan helps you to:
• Clarify your business idea
• Spot potential problems
• Set out your goals
• Measure your progress
Why is a business plan important?
You’ll need a business plan if you want to secure investment or a loan from a bank.
It can also help to convince customers, suppliers and potential employees to support you.
What are the three levels of business management?
- Corporate Level
- Management Level
- Operational Level
What are the business objectives of your company?
- To develop and grow the business sustainably
- Retain existing and gain new clients
- Retain and train staff
- Grow team to support senior members of staff
How do you manage your time so that you do not work beyond your fee allowance?
Recording my time weekly in timesheets spent against each job allows my workload to be reviewed by senior managers in monthly team meetings.
What is a fee proposal?
A proposal prepared by a consultant for a prospective client describing the services that the consultant proposes to undertake and the fee that will be charged. This may be in the form of a letter, or may be a more detailed document accompanied by a cover letter.
Why is a fee proposal important?
It is important that the nature of an appointment is set out in detail before work commences to avoid potential confusion or misunderstanding of what is expected, how much it will cost, and what is not included, and to prevent scope creep.
What would you expect to find in a fee proposal?
Depending on the complexity of the project and whether the client has already provided a written description of the project and the services required, a fee proposal might include:
• Details of the legal entity that is making the proposal.
• A description of the project (inc. project programme,
anticipated cost and anticipated procurement route).
• A schedule of services to be provided.
• Key personnel on the project and their roles.
• Identification of any sub-consultants.
• Form of agreement and conditions of engagement.
• Level of Professional indemnity insurance required.
• The hardware and software that will be used.
• The fee chargeable (if VAT is charged), broken down
against stages of the project.
• Chargeable expenses.
• Hourly rates to be applied to any work outside the
proposed scope of services.
Submission of a fee proposal might be followed by a period of negotiation and clarification, and then the signing of a formal agreement that sets out the exact terms of the appointment.
What is the difference between a fee quote and a fee estimate?
The main difference between a quotation and an estimate is that:
• A quotation is an agreed fixed price.
• An estimate is approximate price that may change.
What is a Key Performance Indicator?
A measurable value to determine the success of project/venture.
What is a Mission Statement?
A formal summary of the company aims and values.
What is a SWOT analysis?
Internal study undertaken by a business to identify its strengths, weaknesses, opportunities and threats.
It helps you to build on what you do well, to address what you’re lacking, to minimise risks, and to take the greatest possible advantage of chances for success.
What is Employers Liability Insurance?
EL insurance will help you pay compensation if an employee is injured or becomes ill because of the work they do for you.
When must you get Employers Liability Insurance?
You must get Employers’ Liability (EL) insurance as soon as you become an employer - your policy must cover you for at least £5 million and come from an authorised insurer.
What is Pubic Liability Insurance?
If a customer or member of the public makes a claim against your business relating to injury or property damage.
Covers the cost of compensation for: personal injuries. loss of or damage to property. Not a requirement for businesses but recommended.
