Business Planning

Question 1

What does a business plan typically focus on?

Answer 1

Profit and risk.

Question 2

What are the different types of business plan?

Answer 2

• Financial - which is a budget projected per month for the next 2 months.
• Marketing - which is what drives your financial plan.
• Operations - which describes how you will carry out the company objectives.

Question 3

What are the different types of legislation that govern business?

Answer 3

• Employment law
• Consumer rights
• Competition law

Question 4

Prominent acts relating to running a business?

Answer 4

• The Companies Act 2006
• The Employments Rights Act 1996
• The National Mininmum Wage Act 1998
• National Minimum Wage Regs 2013
• Working Time Regs 1998
• The Equality Act 2010
• The Health & Safety at Work Act 1974

Question 5

What is equality?

Answer 5

Ensuring that every individual has an equal opportunity to make the most of their lives and talents. Each individual or group of people is given the same resources or oppotunities.

Question 6

What is equity?

Answer 6

Recognises that each person has different circumstances and allocates the exact resources and opportunities needed to reach an equal outcome.

It seeks to address the imbalance by ensuring that each person has the right tools and support to fulfil their potential whatever their starting point.

Question 7

What is market analysis?

Answer 7

A quantitative and qualitiative assessment of market. It looks into the size of the market both in volume and in value.

Question 8

What is a SWOT analysis?

Answer 8

Matrix used for strategic planning and decision making. Covers internal factors (strengths and weaknesses) and external factors (opportunities and threats).

Question 9

What is included within a business plan?

Answer 9

• Goals and objectives
• Analysis of opportunities & risks (SWOT analysis)
• Resources required to undertake work
• Method statement
• KPIs

Question 10

What is the purpose of KPIs?

Answer 10

They are quantifiable meaures of an organisation’s peformance against a set of tarkets or objectives.

Question 11

What is working capital?

Answer 11

The capital used in day to day trading defined as current assets minus current liabilites

Question 12

Define stock?

Answer 12

The capital raised by a company or corporation through the issue and subscription of shares.

Question 13

What are debtors?

Answer 13

An individual or company that owes money to the company.

Question 14

What is a creditor?

Answer 14

An individual or company to whom the company owes money.

Question 15

What are three main types of business?

Answer 15

• Partnership
• Limited Company
• Limited Liability Partnership (LLP)

Question 16

Business partnership…

Answer 16

…simple way for 2 or more people to own and run a business. Each partner is ‘jointly and severally’ liable for the partnerships’ debts.

Question 17

Limited company…

Answer 17

…incorporated into Companies House as a legal ‘person’. It is completely separate from its owners, it can enter contracts in its own name and is responsible for its own actions, financies and liabilities. The liability of members and subscribers of the company is limited to what they have invested or gauranteed to the company.

Question 18

Limited Liability Partnership (LLP)…

Answer 18

…where some or all partners have limited liabilities. Each partner is not responsible for liable for another partner’s misconduct of negligence.

Question 19

What could be strategic objectives?

Answer 19

• Increase revenue
• Manage costs
• Maintain profitability
• Focus on research and development
• Grow shareholder value
• Increase share in the market
• Improve & maintain workplace safety
• Reduce waste

Question 20

Internal SWOT factors…

Answer 20

• financial resources
• human resources
• facilities
• equipment
• processes
• systems

Question 21

External SWOT factors…

Answer 21

• market trends
• outside funding
• customer demographics
• supply chain
• economic climate
• political issues
• environmental issues