Business Planning

Question 1

In terms of business planning, what tools does your company use to ensure you are making a profit?

Answer 1

• Timesheets
• Resource planners (to ensure full utilisation)
• Yearly performance reviews
• Team meetings

Question 2

What is benchmarking?

Answer 2

A process by which the estimated performance of a project is compared to other similar projects. This can highlight areas of design that are not offering good value for money, or if the price offered by the contractor is in line with the current market.

Question 3

What is a PESTLE analysis?

Answer 3

An acronym for political, economic, social, technological, legal and environmental.
- It is a way of understanding and reviewing how external forces may impact the business.

Question 4

What is a SWOT analysis?

Answer 4

It is a strategic planning method used to evaluate strengths, weaknesses, opportunities and threats involved in a project or business venture.

SWOT analysis can be used as a basis for business strategy.

Question 5

What are the issues relating to staff turnover?

Answer 5

• It can be expensive and time consuming to hire staff, often having to pay agency fees to help find the right people.
• Training new people is time consuming and expensive
• Turnover can also affect team dynamics, productivity and continuity.

Question 6

What are SMART targets / objectives as part of a business plan?

Answer 6

Objectives which are:
Specific
Measurable
Achievable
Realistic
Time related

Question 7

What things do you need to consider when setting up a business?

Answer 7

• Advise RICS that you are starting a business and comply with the Rules of Conduct
• Create a business plan
• Create a H&S policy
• Register the business with companies house and inform HMRC
• Set up company and client bank accounts
• Set up a complaints handling procedure

Get relevant insurances such as:
- PI and run off cover
- Directors liability
- Building insurance
- Public liability insurance

Question 8

What is an investment appraisal?

Answer 8

Is used to assess whether a business or project would be a worthwhile investment in terms of return.

Question 9

Give examples of fee earning and non-fee earning staff.

Answer 9

Fee earning - QS, PM
Non-fee earning - Administration staff, IT Technician

Question 10

What is the purpose of an organisation chart?

Answer 10

• A graphical representation of the roles, responsibilities and relationship between individuals within the organisation.
• It can be used to depict the structure of an organisation as a whole or broken down by smaller business units.

Question 11

How do you contribute to your company’s goals?

Answer 11

• Sharing knowledge within my team
• Keeping up to date with industry news
• Delivering and exceeding my responsibilities
• Understanding my personal and project objectives and exceeding expectations where possible
• Bringing in new business

Question 12

What is your company’s mission statement?

Answer 12

Engineering a better future for our planet and its people.

Question 13

What are your company’s values?

Answer 13

Safety
Innovation
Excellence
Collaboration
Integrity

Question 14

What is meant by business strategy?

Answer 14

A business strategy is an outline of the actions and decisions a company plans to take to reach its business goals and objectives.

The strategy defines what the business needs to do to reach its goals, which can help guide the decision making process for hiring and resource allocation.

Question 15

What is meant by strategic planning?

Answer 15

The managerial process of developing and maintaining a strategic fit between the organisation objectives, resources and changing market opportunities.

Question 16

What is the difference between business strategy and business planning?

Answer 16

A business strategy is concerned with the entire organisation. It deals with the fundamental choices that will affect the entire organisation.

Business plans are concerned with the detailed implementation after the big choices have been made. A business plans deals with the detailed implementation of specific aspects of the overall strategy.

Question 17

What is the difference between a business vision statement and mission statement?

Answer 17

A vision statement focuses on tomorrow and what an organisation will ultimately become.

A mission statement focuses on today and what an organisation does to achieve it.

Question 18

What is a business plan?

Answer 18

A business plan is a document that summarises the operational and financial objectives of a business. It is a businesses road map to success with detailed plans and budgets that show how the objectives will be realised.

Likely timescale of 3-5 years at least.

Written business plans are often required to obtain a bank loan or other financing.

Question 19

What would typically be included in a business plan?

Answer 19

• executive summary
• marketing strategy
• vision and mission statements
• products and services
• management team and personnel
• financial forecasts
• responsibilities and targets
  Training, resource and hierarchy plans
• SWOT analysis

Question 20

What is a business model?

Answer 20

A business model is the plan implemented by a company to generate revenue and make a profit from operations.

A business model may contain:
- The product / service the business believes has value for the customer
- The market niche and main target demographic
- The expense of bringing your product / service to target market

Question 21

How can a business plan help a company in the current economic climate?

Answer 21

• help secure additional funding from banks or external investors
• to gain new clients and commissions
• to help focus the business priorities and respond to change
• focus on key priorities
• for budgeting
  for setting targets for staff