Business Planning Flashcards
What is a business plan
Document that outlines your business goals, the strategy to achieve them, and the resources you’ll need
Why is a business plan important?
- It clarifies your vision
- Attracts investors and partners (funding)
- Identifies risks
How does goal setting contribute to achieving corporate objectives?
- It clarifies your vision
- Allows you to strive for something
What are the key elements of a business plan?
(CSMOFO)
- Executive Summary (mission statement)
1. Company description
2. Sales & Marketing Strategy
3. Market Analysis (industry research, target market, competitors)
4. Operational (day-to-day ops)
5. Financial Plan (financial projections)
6. Organisational Structure
What is a SWOT analysis?
Strategic planning tool which shows internal capabilities and external factors that could impact success.
What other tools are used in business planning?
- PESTLE analysis: external factors affecting the business: political, economic, social, technological, legal and environmental
- KPIs (e.g ROCE – how efficiently company uses its capital to generate profits. ROCE = EBIT / Capital employed
What are Ballymore’s corporate objectives/BP?
- Build good quality homes & remain committed
- Create special and unique places
- Make profit to sustain and grow the business
How would a short-term plan be different to a long-term plan?
- If poor economy, may be difficult to plan long term, so may just be how to survive financial year if poor economic climate
- If good economy, seek how to build long-term growth
What about your business plan if you were working at a surveying firm?
- Short term = pitching for business
- Long term = nurturing client relationships
How do you monitor a business’s performance?
Monitor business performance:
* Set clear KPIs: define measurable goals
* Regular financial reporting: track financial performance
* Performance reviews: assess staff performance
* Benchmarking: compare business performance against industry standards & competitors to understand S/W
How would you set up a firm as a sole practitioner?
- Inform RICS of your new practice using a Firm Detail Form
- Register with RICS for regulation
- Arrange PII and send to RICs
- Set up procedures for handling client money and protections scheme
- If Valuing - Register for RICS Valuer Registration Scheme
- Obtain RICS approval for complaints handling procedure
- Use logo kit from RICS
- Plan for succession
- Ensure CPD is logged on RICS CPD management system
- Ensure completion of online RICS annual return at end of each year
How would you prepare a business plan as a sole practitioner?
Refer to RICS SME Business Support Hub
CS MOFO
What forms of business vehicles are there?
Sole Proprietor
Partnership
Limited Company (private and public)
Corporation
What is a sole proprietor?
- Owned and operated by single individual
- Simple to set up and manage, owner personally liable for business debts
What is a partnership? (LLP)
- Owned by 2+ individuals
- Can be general partnership (all partners share responsibility) or limited liability partnership (partners have limited liability)
- LLP: Partners in an LLP have limited liability, meaning they are only liable for the debts of the partnership up to the amount they have invested. Their personal assets are generally protected.
What is a limited company?
- Offers personal liability protection for owners (for amt invested)
Private Limited Company = shares are privately held, not available for public trading
Public Limtied Company = shares available to the public on stock exchange – easier to raise capital, subject to ^ public scrutiny
How does a PLC differ from an LLP?
- LLP managed by the partners who can have a say in business operations. Shares are privately held, ownership is divided amongst partners.
- PLC the shareholders (owners) do not necessarily have to have management powers. Shares are publicly traded.
