Business planning Flashcards
What is a PLC?
Public limited company - public can buy shares on the stock market.
How do you determine a company’s financial status?
- Balance sheet.
- Profit ratio.
- Debt ratio.
What insurances could you have in place [wanted 2 types of Performance Bond - type of surety bond]?
- Conditional: client provides evidence contractor didn’t meet their contract obligations.
[Provides financial protection to the client if contractor fails to meet their contract obligations, but payment only triggered if certain conditions are met] - On-demand: no conditions need to be met.
What critical things do you need to put in place if you’re setting up as a sole practitioner?
- Register with the RICS [required if at least 50% of firm’s principals are RICS members].
- PI and run off cover.
- CHP.
- CMH: separate client account, follow RICS CM protection rules.
- CPD [training provisions].
- ROC [must follow].
- 25% of employees chartered.
- Use the designated ‘Regulated by RICS’ on all practice material.
- Locum: Appoint another firm to step in if you are incapacitated.
What do you need to close a business?
- Run-off cover.
- Resolve finances.
- De-register your business.
What are the three minimum levels of Professional Indemnity Insurance?
£250k: Up to £100k turnover.
£500k: Turnover between £100,001 and £200,000.
£1mil: Turnover above £200k.
What are the minimum levels or amount of RICS members for a firm to be registered?
If 50% or more of the principals (owners, partners, or directors) in your firm are RICS members, the firm must be registered as a Regulated Firm.
[Can apply at 25% of principals but not mandatory].
Are you aware of what an RICS regulated firm is?
Company that commits to following professional standards, ethics, and rules.
You had CPD last year on recent wins and overviews of each PDS team. How can that help with your team’s business plan?
Shows what worked and what needs improving which helps improve income and resourcing for the team.
If your turnover is £90,000, what level of PII cover do you need?
£250k fo each and every claim.
What is run-off cover and for how long should you maintain PII for?
- Insurance that protects against claims made after a business has stopped trading.
- Min six years (under hand), 12 years (deeds) after they cease practising.
