Business Planning Flashcards
Tell me about your involvement with business planning.
Go over
What are the corporate objectives of your firm?
- Berkeley’s strategic business plan is the 2030 vision. One of the priorities is Climate Change and to reduce GHG emissions by 50% on 2019 levels.
- And we want to become net zero by 2040.
How do you work towards these in your role?
Answer
What are some of the typical things you’d find in a business plan?
Fee forecasts - to plan future business activities and ensure attainment of a desired minimum profit margin
Budgets, cash flows, financial/audit controls - ensure correct allocation of resources and expenditure
How can an up to date business plan help an organisation in the current economic climate?
An up-to-date business plan helps organizations in the current economic climate by providing a clear roadmap, assessing risks, allocating resources wisely, adapting to changes, building confidence among stakeholders, measuring performance, gaining a competitive edge, ensuring compliance, engaging employees, focusing on customers, and promoting sustainability and resilience.
What is a SWOT / PEST analysis?
PEST analysis refers to Political, Economical, Social, and Technological factors which influence the business environment.
SWOT analysis refers to Strengths, Weaknesses, Opportunity and Threats
Can you tell me about when you have used one in your role?
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What insurance types have you dealt with and what risks have they protected against?
Check
Explain the objectives of the RICS Covid-19 Recovery Business Plan.
The COVID-19 Recovery Business Plan 2020-21 seeks to continue the existing strategic direction for RICS and the profession, and delivers on our strategic objectives. However, it plots how to achieve this in the context of a significantly changed environment.
Why are the RICS consulting on their business plan?
RICS has been responding to the immediate financial implications of the pandemic and reshaping itself over the last year to cope with an agile shift to new ways of operating. RICS is also developing plans to better support the profession and the leadership contribution it can make to society in a post COVID-19 world as part of our work following the major consultation with members and stakeholders undertaken in early 2021.
Given the review of governance, purpose and strategy that will be delivered towards the end of this plan period, the structure of our corporate objectives for 2021-22 represents an evolution from those in previous years only. Future plans will be based on the outcome of decisions taken by Governing Council following the review and may look significantly different.
Output of COVID 19 and the Independent review of RICS Governance undertaken by Alisson Levitt
What is this strategic review called?
unsure?
What is business continuity and why is it important?
Business continuity is a proactive plan to avoid and mitigate risks associated with a disruption of operations. It details steps to be taken before, during and after an event to maintain the financial viability of an organization.
Explain how the apprenticeship levy works.
The government apprenticeship levy is a tax paid by employers. It is then stored in a fund which can be accessed to help pay for apprenticeship training costs.
It applies to those with a payroll of more than £3 million (the apprenticeship threshold)
It is used to fund apprenticeship training
The levy is charged at 0.5% of an employer’s total payroll (apprenticeship levy allowance)
It is collected monthly through PAYE.
Why might the apprenticeship levy be beneficial to a business?
The government apprenticeship levy is a form of taxation designed to help companies offer more apprenticeships. It was introduced to benefit businesses by boosting essential training and developing apprenticeship programmes
When is the apprenticeship levy payable?
You pay Apprenticeship Levy every month as part of your PAYE bill
How would you set up as a sole practioner
Ensure firm meets RICS registration requirements
Appoint locum to act as CHP and in the event that you can no longer continue to trade
Sole Practitioner?
Partnership?
LLP?
Limited Company?
PLC?
Sole Proprietorship (Sole Practitioner):
Ownership: Owned and operated by a single individual.
Liability: The owner has unlimited personal liability, meaning their personal assets are at risk to cover business debts.
Taxation: Business income is typically reported on the owner’s personal tax return.
Partnership:
Ownership: Involves two or more individuals or entities (partners) who share ownership and management responsibilities.
Liability: Partners share in the profits and losses, and they typically have personal liability for the partnership’s debts.
Taxation: Partners report their share of the business income on their personal tax returns.
Limited Liability Partnership (LLP):
Ownership: Similar to a general partnership, but with limited liability protection for the partners.
Liability: Partners’ personal assets are protected from business debts and liabilities, except for their own professional negligence or misconduct.
Taxation: LLPs often pass income through to individual partners for tax purposes.
Limited Company (Ltd):
Ownership: A separate legal entity distinct from its owners (shareholders).
Liability: Shareholders have limited liability, meaning their personal assets are generally protected from business debts.
Taxation: The company pays taxes on its profits, and shareholders may pay taxes on dividends they receive.
Public Limited Company (PLC):
Ownership: Similar to a limited company, but with shares that can be publicly traded on stock exchanges.
Liability: Shareholders have limited liability.
Regulations: Subject to more stringent regulatory and reporting requirements due to being publicly traded.
Capital: Easier access to capital through public stock offerings.
Berkeley share price?
Profit
42.09 - up 5% in last 6 months
Profit before tax - £604m
Importance of share price?
Reflects investor perception of ability to earn and grow its profits. More favourable media
