Business Planning Flashcards
How long should the period of a typical business plan be across?
3-5 years
What should be included in a Business Plan for a new starting Business?
- Executive Summary
- Financial Forecasts and performance targets
- Management Team
- Description of Business Operations
- Market and Sales Strategy
What should be within a typical Business Plan?
- Division of Business into service type or client
- Financial Performance Targets
- Plan business opportunities and allocate staff resource
- Money in vs Money out cash flow
- Plan opportunities + identify resources required
CPC’s include
- Revenue growth (turnover)/ profit levels/
- Client metrics like turnover per sector/ nr of gold clients
what is a SWOT analysis?
S - Strengths
W - Weaknesses
O - Opportunities
T - Threats
What can business planning assist with?
- Clear strategy planning
- Help seek funding
- Help get new clients
- Set new targets for staff
- Focus on key priorities
What is RICS latest corporate strategy?
2021 - 2022
Financial benchmarking?
Compare performance vs similar firms within the industry
Why are timesheets important?
Confirms whether the fee allowance is being stuck to - is the job losing or producing a profit?
What levels of Business Management are there?
1- Corporate Level
2- Management level
3- Operational level
What’s the difference between a 3 and a 5 year business plan. Or a short and long term target business plan
Short term - Short-term planning looks at the characteristics of the company in the present and develops strategies for improving them. Examples are the skills of the employees and their attitudes. The condition of production equipment or product quality problems are also short-term concerns. Quality fixes, employee training are short term solutions.
Mid-term - Medium-term planning applies more permanent solutions to short-term problems. If training courses for employees solved problems in the short term, companies schedule training programs for the medium term. If there are quality issues, the medium-term response is to revise and strengthen the company’s quality control program.
Where a short-term response to equipment failure is to repair the machine, a medium-term solution is to arrange for a service contract. Medium-term planning implements policies and procedures to ensure that short-term problems don’t recur
Long term - In the long term, companies want to solve problems permanently and to reach their overall targets. Long-term planning reacts to the competitive situation of the company in its social, economic and political environment and develops strategies for adapting and influencing its position to achieve long-term goals. It examines major capital expenditures such as purchasing equipment and facilities, and implements policies and procedures that shape the company’s profile to match top management’s ideas.
When short-term and medium-term planning is successful, long-term planning builds on those achievements to preserve accomplishments and ensure continued progress.
What can a business plan be used for
Funding
Gain new clients and customers
Help focus on priorities
Help to focus on organisational change
To set targets for staff
Set budgets
How would a public sector business case differ from a private one
A public sector business case would look to maximise net social benefit within its available funds.
A private sector business case is typically focused towards profits for shareholders.
What areas would be included in a public sector business case
Strategic Case - The case for change
Economic Case - Value for money
Financial Case - Affordability
Commercial Case - Commercial viability
Management Case - Deliverability
What are the different types of organisational structure?
Hierarchical Structure - In a hierarchical organization structure, employees are grouped with every employee having one clear supervisor.
Matrix Structure - It is a type of organizational management in which people with similar skills are pooled for work assignments
Horizontal/Flat Structure - The most important thing about this structure is that many levels of middle management are eliminated.
Line Organizational Structure - Its authority flows from top to bottom.
Team-based Organizational Structure - Team-based organizational structures are made of teams working towards a common goal while working on their individual tasks.
Are you aware of what the Levitt Review is?
This review forms part of the latest RICS business plan. It’s conclusions and recommendations were accepted by the Governing council. The events which led to the review damaged trust and confidence in RICS, amongst members. The report concluded with 18 recommendations.
