Business Planning

Question 1

What is the difference between operation and strategic goals?

Answer 1

Operation goals are basically short term objectives

Strategic goals are medium to long term objectives

Question 2

What are your company’s key objectives in the 5 year plan?

Answer 2

Before the covid-19 pandemic my company had expansion objectives for both turnover and employee numbers
my business is strong in the education and residential sectors, however we were aiming to start working in the healthcare and commerical property sectors
the company business plan is now under review due to the impacts of the covid-19 pandemic

Question 3

What do you need to do to start an RICS accredited business?

Answer 3

1. Inform RICS – Complete firms detail form i.e. Name, address, type of work, staff levels etc.
2. Appoint a contact officer for all RICS communication
3. Register with RICS for regulation of form by Regulatory Board
4. Arrange for PI insurance
5. Set up client account for handling client money
6. Set up complaints policy
7. Appoint a complaints handling officer
8. Staff training and CPD
9. All practice material to be in compliance with RICS rule 13 for firms
10. Regulated by RICS if more than 50% of partners are chartered

Question 4

What typical headings would you expect to see in a company’s written business plan?

Answer 4

1. Purpose of the Document
2. Executive Summary
3. Growth Objectives
4. Market Analysis
5. Growth Strategy
6. Growth Plan
7. Action Plan

Question 5

Give me some examples of the short, medium and long term goals for your company.

Answer 5

Short - maintain profit margin on current projects, retain staff
medium - retain clients through repeat business, employ more employees and train/ upskill existing employees, branch into new sectors
Long - Grow revenue and staff, expand client portfolio across sectors

Question 6

What would you include as a fee proposal to a client?

Answer 6

1. Description of services and fees chargeable
2. Project programme/ period
3. inclusions and exclusions
4. Key personnel, CVs
5. Form of agreement
6. PII - level applicable
7. Project references

Question 7

What is the role of marketing in business planning?

Answer 7

Company branding, bidding for new work, attracting clients, staff, networking, target marketing towards business objectives/ goals

Question 8

How do staff appraisals influence business planning?

Answer 8

Open communications, identify strengths and weaknesses, setting objectives, training etc

Question 9

What does your director cover at your monthly meetings?

Answer 9

From a business planning perspective - new business wins, update on bidding activities, quarterly financial performance - revenue, profit
training, staff counts, charity and social updates

Question 10

What does EBITA mean?

Answer 10

Earnings before interest, taxes, depreciation, and amortization, is a measure of a company’s overall financial performance.

Question 11

What does the latest RICS chart book say?

Answer 11

A substantial rise in unemployment is likely towards the end of the year
House prices look likely to edge higher
Commercial Property Sector - Rental values look likely to decline, Firms are expected to scale back their office footprint

Question 12

What market factors can influence business planning? Explain these

Answer 12

Enable companies to identify business opportunities and critical success factors in their markets and industry

Question 13

How do you contribute to your company’s goals?

Answer 13

Focus on safety
Excellence in my work
Sharing knowledge in integrated teams
Keeping up with new technologies