Business Planning Flashcards
What is a business plan?
A business plan is a document provided to lenders/investors which sets out the reasoning and evidence to obtain funding.
The plan will highlight the reasons for the set up of the business as well as provide an outline of the goals and objectives along with how and why these are achievable.
The plan will assess the benefits and value of the business idea for investors/lenders.
The plan will cover: the main idea, objectives, sales reports, financial forecasts, any potential issues, goals and dates to achieve said goals.
What are the main headings you would see under a business plan?
- Executive summary
- Capital Value and Med term plan
(setting out completed, live acq and disposals and strategy for future disposals and acquisitions)
How does a feasibility study differ to a business plan?
A feasibility study will carried out before starting a business to determine the viability of it.
A business plan will then detail how it operates and done on the basis that the feasibility study was positive.
What is a sole trader?
Sole Trader - A person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses (unlimited liability).
What is a partnership?
Partnership A business organization in which two or more individuals manage and operate the business. Both owners are equally and personally liable for the debts from the business.
What is a limited company?
In a limited company, the shareholders’ liability is limited to the capital they originally invested. If such company becomes insolvent, the shareholders personal assets remain protected. Shares in a private limited company are not offered to the general public (distinguishing it from a public limited company - plc.)
What is a LLP?
A limited liability partnership. This requires 2 or more members. Each member pays tax on their share of profits and is liable for their responsibilities within the partnership.
How could you check a companies financial standing?
A credit check, check companies house, news articles and a google search.
How often should business plans be reviewed / updated?
Business plans should be reviewed and possibly updated at least once a year, especially for younger companies
What are the different types of business plans?
Start up plan – how the business will operate long term
Annual Growth Plan – financial, marketing and operations
Scenario Plan – for companies in rapidly changing industry
What are some of your business targets & objectives for the current year?
How can/have you measured your performance on an instruction?
**How do you check managing agents comply
- KPIs
(Complaint response, Void rates,
What is PEST analysis?
Definition: PEST Analysis is a measurement tool which is used to assess markets for a particular product or a business at a given time frame.
PEST stands for :
* Political
* Economic
* Social
* Technological factors
. Once these factors are analysed organisations can take better business decisions.
What are the different types of business set ups ?
- Sole Trader
- Partnership
- Limited company
- Limited liability company
Where would you find details of a company’s assets ?
Business assets are shown on a balance sheet, which can be found in the company’s annual report.
