Business Planning Flashcards
1
Q
Business Plan
A
- CAMSGR
- Clients – Size, Type e.g. owner occupier or developer (sale or rental), procurement e.g. D&B, MC, Traditional
- Acquisition – e.g. Arcadis purchase IBI group. Increase geographical region. Future growth potential (aligns with existing business streams)
- Market – Growth Trends e.g. Distribution sector, Opportunity – larger market, Threats – simple build = high competition, Clients, Competition – significant due to high growth and ease of build
- Staffing– Identify essential requirements to generate revenue (new & existing business), holidays/absence/seasonal business trends
- Goal – Win on a bid for a new job, grow the team Long Term Goals – - Grow profit by 100%, enter a new sector
- Resources – Recruit (sales, operational, admin (what level), Training (increase existing capability), Finance (organic or raise funding), Technology (systemisation, resourcing, added value (BIM)).
2
Q
Business Structures
A
- Sole Trader; Individual.
- Don’t publish accounts.
- Low admin cost.
- Liabilities NOT limited.
- Partnership; As sole trader but require Partnership agreement.
- Limited Company;
- Separate from personal assets.
- Tax advantages (e.g. Corp not income tax).
- Register company & publish accounts.
- LLP; Like a partnership but as a Limited company.
i.e. split responsibility (Limited company based on shares; control is defined by roles)
3
Q
Ratio Analysis
A
Business performance metrics (PAG)
- Profitability; Returns after costs.
- Asset; £150k (asset)/£100k (liability) =1.5 (below=risky above=stable).
- Gearing Ratio; Equity / Debt
4
Q
Working Capital
Stock
Debtors
Creditors
A
- Working Capital; Current assets – current liabilities e.g. £200k-£150k= £50k
- Stock; Product held within the company e.g. Fuel for a petrol station.
- Debtors (asset); Party who owes a company money without immediate payment (sale of goods and services) e.g. Arcadis £100k agree to provide their service over the next year
- Creditors (liability); Goods/service without immediate payment (future payment required)
5
Q
Accounting techniques
A
- Cash; Transactions are recorded at receipt of funds
- Accrual; Transactions recorded at the point of sale. e.g. Lender agrees to pay Arcadis fees of £100k which become due over next year but £100k is recorded today. Accrual is subject to change (increase if project extended or reduce if appointment not needed e.g. early refinance
6
Q
Legislation in Business:
A
- EU Working time (40hrs PW).
- Equality act
- Companies Act 2006 – Makes clear company obligations e.g. must keep accurate records primarily for tax purposes
- Bribery Act 2010 - Liability for corruption; Bribing, being bribed, failure to prevent bribery (10 year prison, unlimited fine, director disqualification)
- GDPR - Must have systems to manage public information. Duty to disclose a data breach within 72 hours.
- Money Laundering 2017 – Prevent exchange of money obtained from criminal activity. Identify customers, keep records, report suspicious behaviour
7
Q
Short Term Strategy;
Medium Strategy;
Long Strategy;
A
- Short Term Strategy; 1- year improvements e.g. Hire new employee to better manage workload
- Medium Strategy; Diversify e.g. QS also offer PM/EA service, widen sector experience
- Long Strategy; Capital expenditure e.g. relocate / expand offices, marketing (new website), develop reputation through excellent service delivery
8
Q
5-year plan
A
CAMSGR
- Clients - Market, Size
- Acquisition; Arcadis IBI (Architect)
- Market analysis; Growing, retracting
- Staffing; Capability and numbers
- Goals; Win bids, relocate office, revenue, profit
- Resource; Finance (organic or funded), Technology (efficiency)
Think Construction consultancy
9
Q
SWOT
SMART
PESTLE
How beneficial to businesses?
A
- Basis for identifying changes that can be made in a balanced way in order to achieve goals through analysis
SWOT e.g. Warehouses
- Strength (experience ),
- Weakness (not diversified - expertise in only one sector),
- Opportunity (growing market),
- Threat (competitive).
SMART
- Specific - £1m Turnover
- Measurable - £500k to £1m
- Achievable - Not unrealistic e.g. £500k to £50m
- Realistic - Focus on growth
- Time - 2 years
PESTLE - Entering into a new sector
- Political - Is it subject to change through government intervention?
- Economic - Could the opportunity reduce if the economy does not perform?
- Social - Why is the sector changing e.g. Distribution trends due to online retail vs in store shopping
- Technology - Can be implemented to drive efficiency? e.g. Drones for roof surveys, reduced H&S issues
- Legal ; will other parties take legal action for involvement? Controversial clients/ organisations
- Environmental ; is the opportunity sustainable?
10
Q
HR
A
- recruitment,
- staff performance
- labour law (working hours),
- staff benefits (bonus, buy back a/l)
11
Q
Data management
A
- Improve transparency and security of data held about individuals.
- Companies must have and demonstrate complaint policies.
- Option to delete data.
- Obligation to state data breaches within 72 hours.
- Data should extent to that only of what is required in detail and time.
12
Q
Administration
A
- Keeps trading.
- Assets protected (owner can’t sell).
“Rescue” function. - Restructure to pay debtors.
13
Q
H&S in Business
A
- HASWA Health & Safety at Work Act (1974);
- Welfare of employees and customers.
- Protect from hazards.
- Display H&S poster.
- Carry out risk assessment of premises (fire escape).
- Office - Adjustable monitors, back support chair, kitchen & toilet facilities
14
Q
Equality in Business
A
- Cannot make decisions that discriminate groups:
- Age; Minimum wage (£9.50ph 23+ 2022).
- Race Relations Act.
- Sex Discrimination Act.
- Disability Act.
- Gender; Equal Pay Act
- Religion
15
Q
Arcadis Business Plan
A
- PIC
- People First - retain & grow staff
- Innovation - increase efficiency & value
- Client service - Ensure satisfaction of existing clients
