Business Planning Flashcards
LEVEL 1
What is a Business Plan?
A document that defines in detail the objectives of a company and how it will achieve them.
Why are Business Plans important?
Business plans are important to keep firms accountable to their short-term and long-term objectives.
Can you list the different types of Business Plan?
- Strategic
- Departmental
- Operational
- Corporate
What are the essential elements of a business plan?
- Company description
- Mission Statement
- Market analysis
- Organisation structure
- Breakdown of services offered
- Marketing plan strategy
- Financial records
What can business plans be used for?
1) raising funds or finance
2) gaining new clients
3) responding to change
4) setting staff targets
How often should you review a business plan?
Ideally annually but also anytime there are market or business changes which need to be captured
Can you list the different types of organisational structure?
- Sole Trader
- Partnerships
- Private Limited Company
- Public Limited Company
What are some methods for financial benchmarking?
What is forecasting?
Forecasting is a method used to predict future outcomes such as sales and supply and demand.
What is working capital?
Money that is immediately accessible for day-to-day activities which isn’t tied up in investments or property. It is calculated by subtracting current liabilities from current assets.
What are some forecasting techniques?
1) Time series model
2) Econometric model
3) The Delphi method
What is stock?
Any item stored by a business for use in production or sales, including raw materials and components and finished goods.
What are debtors and creditors?
1) Debtors - is someone who owes me money
2) Creditor - is someone who provides me with money
What is SWOT analysis?
An analytical tool which considers an organisations strengths, weaknesses, opportunities and threats.
What is PESTLE analysis?
An analytical framework for assessing the influence of the external environment. These influences include - Political, Economic, Social, Technological, Legal, Environmental.
What is a SMART objective?
Specific
Measureable
Achievable
Realistic
Timed
What is a Sole Trader?
A person carrying on in business with sole responsibility for his/her actions. He/she is personally responsible for all debts and liabilities of the business and is not a separate legal entity.
What is a Partnership?
What is a Private Limited Company?
What is a Public Limited Company?
Is a company limited by shares or limited by guarantee and having a share capital.
What are Financial Ratios?
They are basic calculations using quantitative data from a company’s financial statements. They are used to gain insight on the company’s performance and financial health.
Can you name some Key Financial Ratios?
1) Liquidity ratios
2) Leverage ratios
3) Efficiency ratio
4) Profitability ratios
5) Market value ratios
What are Porter’s five forces?
What are some available options for raising finance or investment for businesses?
1) bank finance
2) peer-to-peer lending
3) crowdfunding
4) equity finance
5) government loan
6) venture capital
What is Market Research and why is it important?
How might you conduct Market Research?
Explain the concept of supply and demand
How do you contribute towards your firms business plan on a day-to-day basis?
What are the characteristics of a good business plan?
1) short concise and to the point
2) regularly updated
3) includes relevant information
4) realistic
5) formal presentation
What is the key legislation that relates to businesses in the UK?
The Companies Act 2006
What is VAT?
When is VAT payable?
What is a liability?
What is an asset?
What are the short, medium and long term goals of your company?
Short term,
Medium term,
Long term,
What is a feasibility study and how does this differ to a business plan?
How would you assess a contractor’s financial accounts?
What steps would you take to set up a new surveying business?
What information would you include within an appointment document?
share of the company
name of the appointee
address of the appointee
