Business Planning Flashcards
Can you define what a business plan is and explain its main purpose in a commercial property environment?
Business plan – an outline of a company’s objectives, strategies and actions to achieve its financial and operational goals.
It helps focus on revenue generation, market positioning (expanding into new markets/service lines) and risk management.
How does your company’s business strategy align with its overall growth objectives? Can you provide examples of specific goals outlined in your firm’s business plan?
Colliers is a PLC so first and foremost is to be profit for its shareholders.
As a wider business, in the short term for example, Colliers follows the ‘Enterprise 2025 Growth Strategy’ aims to grow the business through acquisitions and expanding service lines - specific goals include expanding client relationships across departments, scaling internationally and innovation through technology.
In the long term, it is to be Net Zero by 2030.
How do you work towards these and your firms strategic objectives in your role?
I ensure that I meet my firm’s core values in my everyday work, such as upholding ethics and working effectively as a team.
I contribute by cross-selling and referring opportunities from lease advisory to industrial agency team.
What are your firms core values?
(ECIED)
Enterprising,
Collaborate
Invest in relationships
Experts
Do what’s right.
How does your firms being a PLC differ from an LLP or Sole Practitioner?
PLC is a company that offers shares of stock to the general public.
LLP is a company where every partner has limited ownership in the company.
Sole Practitioner is an individual who operates a business independently.
What role do regular meetings play in keeping teams aligned with the company’s business plan?
Quarterly updates – provides an overview of company progress towards goals and ensures employees understand the financial performance and areas needing focus.
Weekly team meetings – break down into more manageable tasks and monitor short-term progress, e.g. fee generation, new leads and sq ft goals to align with annual targets.
What is the difference between a business strategy and a business plan?
A business strategy – outlines long-term vision and actions the company plans to achieve its goals.
A business plan – is a document that supports the strategy, explaining specific actions, financial forecasts and milestones.
At Colliers, the ‘Enterprise 25 Strategy’, the business strategy, set out the vision for expanding into new markets and scaling client relationships. The business plan breaks this down into quarterly revenue targets and specific departmental objectives.
How can a business monitor performance and use management tools to track progress?
A SWOT analysis – to understand its merits and opportunities, risks of the business and resources required to service clients.
The use of fee forecasts – to plan future business activities and ensure attainment of a desired profit margin.
Budgets
Can you describe the key elements of a SWOT analysis and how you have seen this used in business planning within your firm?
Strengths, Weaknesses, Opportunities, Threats – assesses where best to allocate resources and address potential issues.
Colliers use SWOT during strategic planning sessions to identify which areas/service lines are performing well and where the market is presenting growth. E.G. expanding our focus on ‘Occupier Services’ due to growing demand for flexible office spaces.
What is PESTLE analysis and why is it important?
Political – changes in tax regulations or governmental policies.
Economic – inflation and interest rates
Social – workplace trends or consumer behaviours
Technology – AI or PropTech
Legal – compliance with laws, e.g. GDPR UK
Environmental – sustainability practices and climate change concerns.
Important because it helps anticipate market trends and adjust accordingly.
Can you describe how you use business planning tools (like SWOT or PESTLE analysis) in team meetings?
SWOT – use to evaluate both our internal strengths and weaknesses as a department, as well as external opportunities and threats. For example, we might identify the trend in flexible office space as an opportunity and discuss how to tailor our services.
PESTLE – used to evaluate external market conditions. For example, we might analyse how technological innovations could help improve business.
What are the main business planning challenges you observe in the commercial property sector, and how does your firm address them in its strategy?
One challenge is market volatility driven by economic factors like political instability and interest rate fluctuations.
To address this, Colliers focuses on diversifying service lines to reduce the reliance on one income stream.
How would a business plan alter for individual, departmental and company?
Individual – this is specific to the person e.g. fees and referrals.
Departmental – this needs to reflect the wider team and consider wider costs and pressures e.g. target profit over a quarter.
Company-wide – this needs to factor in all service lines, e.g. target profit over a year for each department.
When have you used/made a business plan within a team or department?
During monthly meetings – here as a team, we would discuss fee targets or use a SWOT analysis to identify where we are strong and weak.
How do your company’s values influence its business planning?
Being enterprising – drives us to be innovative in our service offerings
Collaboration – encouraging cross-departmental selling.
Expertise – staff training and development.
Assume you are about to set up a firm, how would you prepare a business plan?
I would undertake a SWOT analysis to target key areas of growth and address potential weaknesses.
I would identify where fees will be coming from
I would put in place KPI’s to hit.
I would also create fee forecasts to estimate revenue streams and ensure the financial sustainability of the firm – this would allow me to plan for cash flow management and set realistic financial goals.
How would you set up an RICS firm?
Well a firm must set up with the RICS if 50% of the Principles are MRICS. If a firm has 25% or more are MRICS then it can apply as an RICS firm.
I would start by detailing the types of business and staff, the nature of clients, I would name a Responsible Principal to ensure compliance of the firm and its members, I would ensure statutory regulated activities, I would set up a complaints handling procedure and appoint a CH Officer, I would ensure I had PII cover.
