Business Planning Flashcards
What do you understand by Business Planning?
A business plan is a document which sets out the specific goals of the business over a set period.
Why is business planning important? (4 Points)
To identify training needs
To seek investment if needed
To show resource needs
To determine financial needs
What would be included in a business plan? (4 Points)
Short, medium and long term market goals
Measure/evaluate cash flow
KPI e.g growth targets
The risks of the business
What is an example of a tool used for business planning?
SWOT analysis - helps identify internal and external factors affecting business performance e.g. competition from firms, pressure on fees, resourcing
How is your firm performance measured?
Listed on the stock exchange, so monitored via the share price and company accounts.
Why is it helpful to use fee forecasts? (2 points)
Plan future business activities and a desired minimum profit margin. You may for instance use work-in-progress schedules or forecast planned billing for instructions on which you are currently working.
Why is it helpful to make a budget or cash flow in terms of planning?
To allocate resources and expenditure correctly
What is benchmarking?
‘Benchmarking’ could be defined as the overall process of improvement over time aimed at providing better value for money, or a systematic method of comparing the performance of an organisation against other organisations in the same field.
What are SMART goals?
Goals are most effective when they are specific, measurable, achievable, relevant and time-bound.
what is savills strategy and objectives?
