Business Planning Flashcards by Daniel Baines

What is business planning?

Business planning is the process of setting goals, defining strategies, and outlining actions to achieve those goals.

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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

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Why have a business plan?

Analyse market
Identify opportunities
Develop competence in critical factors
Seeks goals and objectives

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Why have planning sessions?

Review workload, resources and fees
Identify job opportunities
Identify areas to improve business relations
Review pipeline of opportunities

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What is in an appointment document?

Scope of works
Fees
Terms of business
Agreement amendments
Contact details

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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

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What is the Coops business plan?

Strategy 2024
Housing and health
Grow food sore sites
Cyclical refresh of stores

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How are you assisting with coops plan?

Knowledge
Networking
Excellence of work

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How can up to date business plans help?

Assist within investment/funding
Give instructions
Priorities
Respond to change
Budget
Covid recovery
Staff targets

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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

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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

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Fee earner vs non fee earner

Fee - QS, values, builder surveys

Non - admin, IT support

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What is an investment appraisal?

Determine if business/project generates required level of return

Considers: rate of return, payback period, NPV

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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

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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

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What is a business model?

Strategy to generate revenue and make profit from its operation.

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Included in a business model

Products and services offered
Business niche/sector
Target clients/customers
Route to market entry

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What is a business strategy?

Outlines actions and decisions company plans to take to reach goals and objectives

Includes what not to do

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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