Business Planning Flashcards
What is a business?
A business is an organization involved in the trade of goods or services to consumers usually to earn a profit for their owners.
What is a business plan?
Describes a companies goals and how they aim to achieve them
What types of business plan are you aware of?
A strategic plan - Outline goals for next 5 years
Operational Plan - Near future 1- 4 years for departmental strategy
What is included within a business plan?
1) description of business
2) SWOT analysis (Strengths, weaknesses, opportunities and threats)
3) set goals / SMART Goals (Specific, Measurable, Attainable, Relevant, Time-based)
4) Measure progress
5) Financial forecasting
6) Risks
Why is a business plan important?
- Sets targets and assess performance
- Outline steps required
- Helps to convince customers, suppliers and potential employees.
- Seek funding from investment
What is a SWOT analysis?
- Strength
- Weaknesses
- Opportunities
- Threats
When would undertake a SWOT analysis.
When setting up and business or looking to provide a new service line.
What other forms of analysis are you aware of?
PESTLE analysis
- Political
- Economic
- Social
- Technical
- Legal
- Environmental
Can you tell me about your company’s current business plan?
C&Ws UK 5 year business plan:
Vision - to be:
- The most insightful firm in the industry
- The company that provides superior performance for our clients by understanding the changing needs of end users and investors.
Objectives / goals:
-Financial - revenue to grow 5% per annum. Become the second largest consultancy.
- Business - increase in alternative sectors (Healthcare sector) and service lines (recently a capital allowance service line, proposed new party wall service line)
- People - retain and attract talent.
Is there any changes to the plan as a result of Covid?
- Adjusting the business plan
- Align with current market
- Reduce staff
- Save cash
What is your company’s management structure?
C&W is a Public Limited Company (PLC)
How do you personally contribute to achieve your company’s objectives / business plan?
- Achieve my personal fee targets
- Raise my invoices in a timely manner and prevent debtors
- Promote business development
- Assist with hiring new talent
What business vehicles are you aware of?
Sole practitioner / trader- exclusively operates and owns the business, entitled to keep all profits and liable for all losses. He / she pays income and capital gains tax.
Partnership - between two or more individuals who own and operate the business, sharing the management, profits and losses. Partners pay income and capital gains tax.
The next step is to become ‘incorporated’: company has a separate legal entity, registering at Companies House so have to submit statutory accounts, but this makes it easier to borrow money. Limited liability now applies - only the amount invested by investors/owners can be lost, personal assets are off limits.
Limited company - (most frequent in the UK) owned and operated by shareholders (often director(s)) who are legally responsible for its debts. Pay corporation tax on their profits. Directors have a salary and pay income tax.
Public limited company (PLC) - similar to private limited company however, shares are sold and traded to the public and listed on the stock exchange e.g. C&W’s recent IPO (Initial Public Offering).
Limited Liability Partnership (LLP - newest UK business vehicle which is a hybrid between limited companies and partnerships i.e. owned and operated by members (not shareholders or directors) who are legally responsible for its debts but only to the extent of capital they invest AND member spay income and capital gains tax.
What is your department business plan?
- Expand service line into new industry (healthcare)
- include a greater proportion of our work from other C&W service lines
- Increase our rev by 5%
What is your company’s target?
15.5mil for London PDS
