Business Planning Flashcards
What are different building types / company structures?
Businesses have a variety of structures, including sole traders, limited companies and partnerships, and understanding the type is important when planning ahead.
- Being a sole trader:
Is a very simple way to set up a business, but you are then personally liable for its debts.
-Limited company:
Avoids debt liability and pays corporation tax.
- limited liability partnership (LLP):
Avoids debt liability and the partners in being taxed individually on their share of the profits.
Advice from a tax specialist is always recommended when business planning or considering company structure.
What is a SWOT analysis?
- It is used to analyse a companies internal strengths and weaknesses as well as business opportunities and external threats.
- This is carried out with a view to exploiting internal strengths and business opportunities while mitigating weakness and threats.
What is a PEST analysis?
- This is a structured method of analysing key factors which influence market conditions.
- These factors include:
1. Political influences.
2. Economical influences.
3. Socio-demographical influences.
4. Technological influences.
5. Environmental influences.
How do companies write a business plan?
- They undertake an analysis of the market and industry to identify business opportunities and critical success factors.
- Companies should focus their resources on developing their skills, knowledge and ability in relation to these critical success factors.
- This then leads to the development of goals & objectives with associated strategies and actions.
What is a Client Account Planning session?
- They include a review of the current workload, resources and fees.
- They include identifying key client employees who have influence over work opportunities and the identification of who the firm should look to build relationships.
- A review of pipeline opportunities with that Client.
What is contained within an appointment document?
- It includes a clarification of the work scope.
- The agreed fee bid.
- The firms terms of business.
- Any agreed amendments to the firms’ terms of business.
- Contact Details.
Does your firm produce an annual account?
- Yes it produces a statement of turnover, gross profit & net profit.
- This must be submitted to Companies House in accordance with the Companies Act 2006.
Would you be able to interpret & understand an annual account?
- At a high level but I would seek further advice from one of our internal Chartered Accountants if necessary.
What are your firms Terms of Business?
Together with the Engagement Letter, the T&C’s will form the contract between our Firm and the Client.
Our terms of business are made up of around 14 Sections including:
- Our firms General Obligations to the client which is to provide ‘Services’ detailed in the Engagement Letter with the skill, care and diligence expected of a professional person.
- The Client’s General Obligations for example they are not to solicit any Partner or Employee with a job offer, if this occurs, they must pay £35,000.00 compensation.
- Additional Service terms for example this sets out the entitlement for additional fees if the work scope varies.
- My firms’ liability for example any claims raised are to be against the company and not any Partner or Employee.
- Payment terms and interests’ entitlement in the event of late payment.
- Termination and Suspension terms which have a minimum 7 days notice to suspend the works.
- Force Majeure terms for example the company is not liable for failure to carry out its service works.
- Intellectual Property Rights relating to copyright of documents provided by the firm.
- Assignment and Subcontracting terms set out the requirements for written consent from other either party.
- Formal communication is to be in writing to the addresses set out within the Engagement Letter.
- Problems and Complains handling procedures are included within the terms of business.
What is contained within an appointment document?
- It includes clarification of work scope.
- The agreed fee bid.
- The terms of business.
- Any agreed amendments to the terms of business.
- Contact details.
Does your firm produce an annual account? and would you be able to interpret and understand one?
- Yes it provides a statement of turnover, gross profit & net profit.
- This must be submitted to companies house in accordance with the Companies Act 2006.
- I could interpret and understand one at a high level and would seek detailed advise from a chartered accountant.
What is within your companies business plan?
Vision: - To be our clients trusted partner in the property industry, recognised for our unwavering commitment to delivering exceptional service and creative solutions.
10 year plan : - after a period of expansion in to England over the last 5 years, our company is looking to consolidate and grow the new offices while improving ESG credentials.
Our goals include:
- Developing and upskilling our existing staff.
- Improving our ESG credentials and service offerings.
- Expanding our existing offices to increase our market share.
BUSINESS PLANNING: What methods and processes are you aware of which inform business planning and understand market conditions?
- SWOT analysis and PEST analysis help to inform business planning and market conditions respectively.
- SWOT analysis helps to assess internal strengths and weaknesses as well as business opportunities and external threats.
- PEST analysis helps to understand key factors which influence market conditions (Political, Economical, Socio-demographical, Technological and Environmental influences.)
BUSINESS PLANNING: What methods and processes are you aware of which allow you to understand current workload and fee intake from clients?
Client Planning Sessions, which review of the current workload, resources and fees.
They also include identifying key client employees who have influence over work opportunities and the identification of who the firm should look to build relationships.
And a review of pipeline opportunities with that Client.
