Business Planning

Question 1

What is a business plan?

Answer 1

“1) A document provided to lenders/investors which sets out the reasoning and evidence to obtain funding.

2) It highlights the reason for the business and provides an outline of the goals and objectives and how and why they are achievable.

The plan assesses the benefits and value of the business idea to investors.
States:
Main idea,
Objectives
Sales Report
Financial forecasting
Potential issues,
Goals
Dates to achieve.
“

Question 2

What is included within a SWOT analysis ?

Answer 2

“Strengths, Weakness, Opportunities and Threats Eg. Business Plan
S - New Client
W - Could take resource away from existing workload.
O - Could lead to further work
T - Removal of resource.”

Question 3

How is SWOT analysis useful for business planning ?

Answer 3

Helps you assess and identify your business’ strengths, weaknesses, opportunities and threats.

Question 4

What are the main headings in a business plan?

Answer 4

“1) Exec summary
2) Company description
3) Markets the business will operate in.
4) A SWOT analysis of the business
5) Details of management team/personel.
6) The products or services offered.
7) Marketing
8) A financial plan.”

Question 5

What are the different types of business plans?

Answer 5

“Start up plan - how the business will operate long-term
Annual Growth Plan - Financial, marketing and operations
Scenario Plan - for companies in rapidly changing industry.”

Question 6

What is included within your organisations business plan?

Answer 6

“Sustained growth
Meeting market repirements “

Question 7

What are some of your businesses targets and objectives?

Answer 7

“1. The company has set a financial target
2. Set growth target
3. Sustainability target

Question 8

How do you measure performance?

Answer 8

With the Use of KPIs.

Question 9

How does a feasibility study differ from a business plan?

Answer 9

“A feasibility study will be carried out before starting a business to determine the viability of that business.
A business plan will then detail how it operates and is done on the basis that the feasibility study was positive.”

Question 10

What is a fee forecast ?

Answer 10

The method for assessing a businesses future financial position and keeping track of potential fees.

Question 11

What is a mission statement ?

Answer 11

A formal summary of the aims and objectives of a company.

Question 12

What would typical short/medium/long-term plans for a company?

Answer 12

“Short - Continue to provide a high level of service
Medium - Continue with a large rate of enquiries to see through financial turbulance.
Long - Build relationships with new clients to continue the business and create new revenue streams.”

Question 13

How would you prepare a long-term strategy ?

Answer 13

“1. Create a description of the strategy
2. Identify the key stakeholders and their needs.
3. SWOT analysis, strengths, weaknesses, opportunities and threats.
4. PEST analysis - Political, Economical, Social and Technological Factors
5. SMART Goals - Specific Measurable, Attainable, Realistic and Time.
6. Prepare a marketing strategy - identify audience, market research, promotions etc.
7. Organise resources - Funding, staff
8. Monitor and review the progress on a regular basis.”

Question 14

What goes into a long-term strategy ?

Answer 14

A description of the strategy, identification of stakeholders SWOT/PEST/SMART, potential marketing strategies, resources, KPIs, regular review.

Question 15

What is a sole trader?

Answer 15

A person who is the exclusive owner of a business, entitled to keep all profits after tax but liable for all losses (unlimited liability).

Question 16

What is a partnership ?

Answer 16

A business organisation in which 2 or more individuals manage and operate the business. Both owners are equally and personally liable for the debts from the business.

Question 17

What is a limited company?

Answer 17

When the shareholders liability is limited to the capital they origionally invested. If the company becomes involvent, the personal assets remain protected. Shares are not offered to the public (unlike PLC).

Question 18

What is a Limited Liability Partnership?

Answer 18

“A partnership in which some or all partners have limited liabilities.
A partners liabilities are limited to the amount they put into the business.
One partner is not liable for anothers conduct or negligence.
LLP members are both owners and managers of the business.”

Question 19

What issues face companies with a high staff turnover ?

Answer 19

“Training costs
Recruitment costs
Lose clients
Loss of knowledge
Poor morale
Loss of profits

Question 20

What process and procedures do firms have to ensure they remain profitable?

Answer 20

“Resources tracker
targets
timesheets
fee forecasts
project reviews”

Question 21

Who wants to see a business plan?

Answer 21

“Investors
Lenders
Stakeholders
Insurers “

Question 22

What current risks should a business take into consideration?

Answer 22

“Inflation
Fuel Costs
Recession.”

Question 23

How do you set your fees?

Answer 23

Add up outgoings - Rent, OH, Profit. Anticipate workload to take on and state your hourly/daily rate.

Question 24

What is the SMART criteria?

Answer 24

SMART goals are Specific, Measurable, Attainable, Relavent and Time specific.

Question 25

What is porters 5 forces?

Answer 25

“A tool to analyse the attractiveness and profitability of a business. The forces include:
1. Competitive rivalry (amount of competition)
2. Supplier power (how easy it is for supply cost to increase)
3. Buyer power (how easy it is for buyers to drive your prices down).
4. Threat substitution (likelihood of customers finding a different way of doing what you do).
5. Threat of new entity (ability for others to enter the market).”

Question 26

How would you assess a developers financial accounts?

Answer 26

“Request a copy of the developers company accounts for the last 3 years which would include profit and loos, balance sheet and cashflow statement.
I would then be able to assess:
If the developer had been profitable in the last few years.
Calculate their liquidity ratio.
I would always caveat any advice given to a client on a developers financial position.
“

Question 27

How could you check a companies financial standings pre tender ?

Answer 27

A credit check, check companies house, news articles and google search.

Question 28

What do you look for when analysing consultant fee proposals?

Answer 28

“1) Total fee and how it was calculated.
2) Level of resources; seniority, experience and allocation;
3) Fee drawdown;
4) Agreement of client Terms and Conditions;
5) Agreement of client payment terms / period;
6) Agreement of scope of services;
7) Exclusions;
8) Assumptions e.g. programme.”

Question 29

What would you need to set up as a company?

Answer 29

“public liability.
buildings insurance.
employer liability cover.
directors and officers cover.
contents insurance.
business interruption insurance
register with companies house
suitable policies
register with RICS for regulation”

Question 30

What current challenges is Covid and/or Brexit bringing to Business Planning?

Answer 30

Brexit has caused a shortage of staff and materials. It has changed the prices of material and resources causing prices to increase. This has also caused issues with working from home, companies becoming insolvent and closing down.

Question 31

What is your understanding of a succession plan?

Answer 31

The procedures in place to replace senior members of the team/company.

Question 32

What’s a fee forecast?

Answer 32

Allows the future financial position to be assessed and ensures records are maintained for potential fees.

Question 33

Why are budgets, cash flows and fincancial/audit controls important to business planning ?

Answer 33

They ensure the correct allocation of resources and expendature.

Question 34

How does AY incorporate sustainability into their business decisions?

Answer 34

“AY have just agreed a lease to move their London HQ to a retrofitted office and has been fitted out using recycled or sustainable materials.
They also offers a cycle to work scheme.”

Question 35

What is a debtor?

Answer 35

A company or individual who owes money

Question 36

Why is the use of fee forecasting crucial for business planning ?

Answer 36

They help plan future business activities and ensure attainment of desired minimum profit margin.