Business Planning Flashcards
What is an organisation structure and why is it important?
It helps determine who reports to who, and who makes decisions about what.
An organisational structure defines how job titles /roles, and responsibilities are assigned within a company.
What type of organisational structure does your firm have?
Team-Based structure
– Each team contains both leaders and workers.
– All teams work towards one common goal while performing their own specialist tasks.
What are your firms short and long-term goals?
Short term:
Continue to provide a high level of service and achieve KPI’s (26% profit and 80% utilisation).
Build relationships with new clients to continue the growth and development of the business.
Long term:
Open more offices to become the leading building surveying consulatncy in the North.
What is financial benchmarking?
Financial analysis to assess the company’s:
– Competitiveness
– Efficiency
– Productivity.
‘Benchmarking’ refers to the process of comparing the business practices and performance standards to other firms within the same industry.
Quality, time, and cost are the most common values that are measured.
What are the 4 types of benchmarking?
- Internal
- External
- Performance
- Practice.
What is a Business Plan?
A statement of the business’s goals and objectives.
The reasons why they are thought to be attainable and the plan for reaching the goals.
What’s the difference between a goal and an objective?
- Goals: Achievable outcome typically broad and long term.
- Objective: Defines specific measurable actions to achieve the overall goal.
How do companies write a business plan?
Analyse the market to identify business opportunities and success factors.
Outlining the development of goals and objectives with their associated strategies and actions.
What should a business plan include?
- Executive summary.
- Description of the business.
- Marketing strategies.
- Management team and personnel.
- Operations.
- Financial forecasts.
- Setting corporate objectives.
How do you think an up to date business plan can help an organisation in the current economic climate?
- to seek funding;
- to gain new instructions, new clients, new customers;
- to help focus on key priorities;
- to allow the organisation to respond to change;
- for budgetting; and
- for setting targets for staff
What is your firms business plan?
Vision: To become the North’s leading independent building consultancy.
Goals: Expansion of the team and offices and growth within certain sectors for example sustainability and modern technology.
What is a SWOT analysis?
A SWOT analysis can be used to analyse the internal strengths and weaknesses and external threats and opportunities of a company.
What is a PEST analysis?
Analysis of Market Conditions (Remember Estate Agents are PEST’S)
These factors are:
- Political.
- Economic
- Social.
- Technological.
What are Porter’s five forces?
They are used to analyse the competitiveness of an industry and the barriers to entry.
These typically include:
- Substitute products.
- Bargaining power of suppliers.
- Bargaining power of customers.
- Rivalry amongst existing firms.
How do you contribute to your company’s goals?
– Maintain excellence in my work.
– Sharing knowledge within integrated teams.
– Keeping up with new technologies.
– Upskilling new and junior team members.
What are your firms Terms of Business?
The Engagement Letter & the T&C’s form the contract between our Firm and the Client.
The terms of business include:
- General Obligations to the client outlining the agreed service.
- The Client’s General Obligations (payment terms).
- Additional Service terms /additional fees if the work scope varies.
- Complaints handling procedures.
Would you be able to interpret & understand an annual account?
At a high level I would but I would seek further advice from my firms internal Accountant if necessary.
What is contained within an appointment document?
– Scope of service
– Payment terms
– Complaints Handling Procedure
– Insurances and limit on liability
– Limitations
Does your firm produce an annual account?
Yes; this is submitted to Companies House in accordance with the Companies Act 2006.
What is the purpose of a business plan?
- Create a strategy for growth
- Determine future financial needs
What is a sole trader?
A Self employed person running their own business as an individual. There is no separate legal identity to the owner. The sole trader is liable for the business’s debt.
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.
What is a limited company?
General form of incorporation that limits the liability undertaken by shareholders.
The liability of a company’s members is limited to their stake in the company.
What is the difference between LLP and Ltd?
Ltd company can be non-profit/charity.
LLP is always profit making.
LLP must have a minimum of 2 partners,
Ltd pays Corp tax
LLP doesn’t as they are classed as self employed.
What would you need to set up as a company?
- Public liability insurance.
- Professional indemnity insurance.
- buildings insurance (if required).
- Employer liability cover (if required).
- Registration with companies house.
- Suitable policies in place such as complaints handling procedures.
- Register with RICS for regulation.
How often might you update a business plan?
Business plans should be reviewed and possibly updated at least once a year, especially for younger companies.
What are the different types of business plan?
Start up plan – how the business will operate long term
Growth Plan – financial, marketing and operations
Scenario Plan – for companies in rapidly changing industry
Do you have a profit target and how is this determined?
Yes, this is 26%.
This is determined to help achieve the financial goals of the business.
What are the financial goals for the company?
The Building Surveying team has a goal to achieve £1million this financial year.
What is an organsational structure?
This is a framework to allow employees to understand:
- Job responsibilities
- Who to report to
- How to interact with the relevant teams
What are financial ratios?
Values taken from financial statements to give information to analyse a company’s relevant finances into ratios.
This can be used to compare company finances with competitors.
What is working capital?
The difference between a company’s curent assets and current liabilities.
That can be converted into cash within a year.
Name some types of business plan?
- Strategic Plan: Focused on mid /long term goals.
- Departmental: Focuses on a specific team or department within a company.
- Corporate: Defines strategies on how employees will meet the goals of a business.
- Operational: How the business will achieve the goals usually throughout the year.
What are stocks?
Share in the ownership of a company.
What is the difference between debtors and creditors?
Creditors: People the firm owe money to for goods /services.
Debtors: Owe money to the firm.
What is business forecasting?
Prediction of future outcomes.
Based on past and present data.
This can include market conditions and historical trends.
Describe corporate planning?
Strategies for meeting business goals and achieving objectives.
How does business planning contribute to the success of a company?
Facilitates decision making by setting a time frame for achieving goals.
Measure performance against goals and whos responsible.
What is Return on Investment?
RoI is the ratio between income and investment.
