Business Planning Flashcards
What is business planning?
Business planning is the process of setting goals, defining strategies, and outlining actions to achieve those goals.
Name types of analysis tools?
SWOT - strengths, weaknesses, opportunities, threats
PESTLE - political, economic, social, technological, legal, environmental
Porters 5 factors - analysis of industry, barriers to entry, sub products, bargaining power, rivalry pestl
Why have a business plan?
Analyse market
Identify opportunities
Develop competence in critical factors
Seeks goals and objectives
Why have planning sessions?
Review workload, resources and fees
Identify job opportunities
Identify areas to improve business relations
Review pipeline of opportunities
What is in an appointment document?
Scope of works
Fees
Terms of business
Agreement amendments
Contact details
What are found in terms of business?
General obligations of services
Client obligations i.e not to solicit staff
Additional services
Liability
Payment term and interest
Force majeure
Intellectual Property Rights
Assignment and subcontracting terms
Formal communications
Complaints handling procedure
What is the Coops business plan?
Strategy 2024
Housing and health
Grow food sore sites
Cyclical refresh of stores
How are you assisting with coops plan?
Knowledge
Networking
Excellence of work
How can up to date business plans help?
Assist within investment/funding
Give instructions
Priorities
Respond to change
Budget
Covid recovery
Staff targets
Procedures to ensure profitability
Timesheets
Resource planners
Fee/cost reconciliation tools
Project reviews
Performance reviews
Team meetings
One to ones
Business development strategy
Pipeline monitoring
Issues with high turnover?
Increased recruitment costs
Increased training costs
Inconsistent production/performance
Poor staff morale
Lower customer satisfaction
Loss of custom/repeat business
Higher operational costs
Reduced profitability
Fee earner vs non fee earner
Fee - QS, values, builder surveys
Non - admin, IT support
What is an investment appraisal?
Determine if business/project generates required level of return
Considers: rate of return, payback period, NPV
Competents in a business plan
SWOT
PEST
Executive summary
Marketing strategy
Vision and mission statement
Products and services
Team/structure
Financial forecast
Responsibility and targets
How business plans enable companies to be profitable?
Secure funding
Grow client base
Highlight key business objectives
Assist with change
Grow market share
Supports accurate forecasting
Allows resource planning
What is a business model?
Strategy to generate revenue and make profit from its operation.
Included in a business model
Products and services offered
Business niche/sector
Target clients/customers
Route to market entry
What is a business strategy?
Outlines actions and decisions company plans to take to reach goals and objectives
Includes what not to do
What is a business plan?
Goals
Why attainable
Plan to reach
PEST analysis
Analyse key factors influencing markets
Political
Economical
Socio-demographically
Technological
Porters five factors
Analyse supply side
What is in a business plan?
Vision
Objectives and goals
Strategies and actions
Contents of an appointment document?
Scope of works
Fee bid assigned to works
TopB
Agreement amendments
Contact details
To B incl
Intro
Our Obligations
Your obligations
Additional services
Liability
Remuneration
Termination
Force majeure
Intellectual property rights
Types of business plan
Strategic - to achieve overall goals. Provides framework. Provides benchmarking. Goals and objectives. Foundations to achieve goals. Looks at the future = resources, restrictions, demands.
Departmental - specific to department. Review periodical. Individual metric.
Operational - iSO9001 - international standard for quality management. Working (requirements of services, criteria, resources, processes) and delivery (service, communication to make, requirements of customer, manage changes, review)
Corporate - similar to strategic but focused on operations. Vision, mission, resources, objectives, strategies to reach
Organisation structure types
Functional - hierarchical
Divisional - groups functions into divisions
Matrix - grid not hierarchy, dual reporting
Flatarchy - not flat or hierarchical
What is working capital?
Ability to pay current liabilities with current assets
What is a stock?
Security represents ownership of fraction of company. Profit = stock
Types of debtor?
Loan - company loan is debtor to bank
Trade - customer/client not paid you for service
What is a current radio
Current radio = current assets/current liabilities
Below 1:2 - concern to meet debts
1:1 typical
What are quick ratios/acid test?
Quick ratio = current assets - stock / current liabilities
Measures liquidity = not include value of stock
What is gross profit margin?
Gross profit = gross profit / turnover x 100
Break even?
Level of sales needed to achieve to break even
B/E = fixed expenses / gross margin
What is net profit?
N/P = net profit / turnover x 100
N/P = all costs, declining (which cost increase the most)
What is return on capital employed?
RoCE = net profit/ net assets x 100
Profit v value of net assets
Timescales of plans?
1 yr - project planning
2-4 yr - operational
5-10yr - strategic
Types of plan
Strategic - mid to long terms goals
Departmental - department goals, projects, focus areas
Operational - key objectives and plan, how to achieve
Corporate - strategies to meet goals and mission
What is an organisational structure?
Show roles within company and reporting
What is working capital?
Current assets to be converted into cash in a year
What are stocks?
Share of ownership in company
Corporate planning?
Create strategic to meet goals and objectives
Helps decision making. Measure performance
What is return on investment
Income v investment - cost of goods and services from revenues / cost of goods and services sold
What should be included in a business plan?
Executive summary
Overview
Management background
Service/product provided
Value proposition
Strategic marketing
Market evaluation/analysis
Costs
Cash flow projections
What does a business plan help with?
Seeking funding
Gaining new clients, instructions
Focus on priorities
Respond to change
Budget
Set targets
Types of business structure?
Hierarchical
Functional
Flat
Divisional
Matrix
How to calculate working capital?
Current assets - current liaibilities
