Business planning Flashcards
How does a business plan for the future?
Review market conditions & Understand clients’ needs
Understand employees’ needs
Assess their finances
Devise a strategy to aquire sales
How can an up to date business plan help an organisation in current economic climate?
Secure new funding Gain more clients Focus on key priorities Respond to change Set staff targets The news
What is PEST analysis?
Political Economic Socail Technological Environmenal Legal
What is SWOT analysis?
A business planning tool which looks at; Strengths, Weaknesses, Opportunities, Threats
What effects have recent changes to legislation had on business planning?
Change of requirements of plant machinery - many business has to update and renew stock - demand has created a long wait times for new machines and increased prices.
IR35 - business cannot freely use freelance consultants in the same way - costing business’ more in tax liabilities.
VAT Reverse charge - retraining existing teams, updating systems
COP26 - elec cars
What impacts have covid-19 & brexit had on business planning
Covid-19 - promoted flexible working, changed layouts & social distancing. Pressures on hauliage of materials & increased demand on materials & huge increases in prices in 2021. Many manufacturers closed during lockdown still trying to catch up. Forced business online - those not already using systems had a sharp learning curve and had to make prompt investments into staff WFH & remotely accessible servers.
Covid - Impacts on business planning on workforce locality & availability.
Covid - Buisness being more flexible & working across multiple markets to reduce risk - increase in demand for more warehouses for e-commerce.
Covid - Business plans to reviewed more often.
Brexit & covid enhanced reluctance to work with contractors / client you dont know as well.
Brexit - loss of foreign labour from industry, hauliers.
Brexit- exchange rates & value of £
R&D constantly innovating to keep up with fast changing world and markets (AI, IT, Data- making best use of skills and diversifying)
Enhanced working H&S so entended programmes. More realistic & detailed contingency & back up plans in event of a change.
What would you include in a Business Plan if you were setting up on your own?
Training
Organagrams
Vision & Misson statements - vision (tomorrow), misson (today & how to achieve)
SWOT
What are the objectives of your company’s business plan?
5% profit this year Double turnover Team of 4 (FT) by Sept 2022 70% repeat clients 1 new client every 1/4
What external factors beyond the control of the company would consider when constructing its business plan?
Covid Brexit Flexibility Investment Sickness / absence of staff
What current challenges is Covid and/or Brexit bringing to Business Planning?
Buying IT equipment
forecasting
flexible working
Investment in AI / technology / software
How is your company dealing with this challenge?
Cloud based systems - increased use of software - bluebeam, Xero accounting software linked to timesheets, video calls, promoting elec cars, minimal / no printing /
What are some of the key things to include in a business plan?
- Analysis of some of the key risks and opportunities facing the business
- Resources required to service clients
- Market/competitor analysis
- Products and services
- Marketing and sales strategy
- Financial plan
What sort of financial planning would you use?
Budgets, cash flows and financial/audit controls
How does your firm comply with the Modern Slavery Act 2015?
- Group procurement policy defining minimum standards when procuring goods or services
- Whistleblowing policy
- Training and awareness
- Corporate responsibility policy
Whats the apprentaship levy
Apprenticeship Levy: A UK tax on employers to fund apprenticeship training. Employers with a pay bill over £3 million annually pay 0.5% of their bill into the fund.
Benefits: Encourages workforce training, enhances skills, attracts talent, and businesses can reclaim funds for their own apprenticeships.
Payment: Payable monthly through PAYE alongside income tax and National Insurance.
Tell me about the RICS Business Plan
Purpose: The business plan for 2021-2022 outlines RICS’ goals and strategies for the year.
Focus: RICS emphasizes trust, professionalism, and public interest.
Strategic Goals:
Build trust through transparency and integrity.
Influence global standards.
Stay relevant by updating qualifications.
Promote sustainability in the industry.
Key Actions:
Develop and promote global standards.
Produce industry research.
Offer educational opportunities.
Enhance digital services.
Financial Goal: Aim for a balanced budget by year-end.
What is a business plan?
- a guide that defines objectives and details the steps to take to achieve a particular business goal.
What does it do?
- Business plans are used throughout the growth of a company from its startup to its expansion to provide a path to success.
What types of business plan are there?
Start up - business plan a new company gives to potential investors in the hopes of receiving startup funding.
Strategic - details the strategies a company will use to achieve its overall goals. Five main components.
Feasibility – written when a company is seeking a new business venture such as selling current products to a new market.
Operations - focuses on mapping out the day to day operational activities.
Expansion/growth - used when a company is looking to grow.
What if plan - a business is seeking financing, considering an acquisition or contemplating another possibly risky move.
One page - highlights the most important parts of a lean plan, summarizing a business, and is used to brief potential investors.
Essential elements?
Exec summary; business description; market analysis; marketing plan; sales strategy; competitive analysis; management & organisation; products & services; operating plan; financial projections & assumptions; requests for funding; and exhibits & appendices.
Why are they important?
Prove viability; guides through business cycle; make better business decisions; eliminates mistakes; secures finance; and attracts top people.
Best way to maintain business turnover?
Concentrate on both existing and new business.
