Business Planning (L1)

Question 1

What is the Countryside’s homes business plan/Mission Statement?

Answer 1

High growth, capital light partnerships model. Targeting 40% ROCE in the medium term. Revenue growth of 7%. £1 billion of capital returned to shareholders over next three years.

Maximising the opportunities from recent merger to generate sustainable value all stakeholders, including sector-leading ROCE in the medium term

Three Strategic Pillars - People, Places and Partnerships

Question 2

What can you find within a business plan? What is a business plan?

Answer 2

A formal statement of the business goals, reasons why they are attainable and plan for reaching the goals. It provides employers with a common ground to focus on. It is made up of a vision, objectives and goals, strategies, and actions in place to achieve those goals.

Marketing/ Sales strategy
Breakdown of product and services to be used by the business

Question 3

What are the main risks to your firm going forwards?

Answer 3

Increasing interest rates = more expensive mortgages = slower sales rate

Increasing build cost = lower land values

Increasingly slow planning system.

Question 4

What components are included in an appointment document?

Answer 4

Clarification of scope, agreed fee, terms of business, agreed amendments, contact details

Question 5

What are the different types of business plan?

Answer 5

Operational, departmental, strategic, corporate

Question 6

What are the essential elements of a business plan?

Answer 6

Executive Summary, Company Description, product and services, Market Analysis, Organisation, and management, financials

Question 7

Can you outline the key principles of the Clapham Park LLP business plan?

Answer 7

The principal purpose of the Partnership is to lead on the regeneration of the Clapham Park Estate with the overarching project objectives set out below:

1. Proactively facilitate the physical delivery of the strategic vision for the Clapham Park Estate
2. Deliver new residential and commercial uses that support the ongoing regeneration of the Clapham Park Estate creating a mixed community
3. Resident Involvement
4. Affordability
5. Deliver development of high design quality, setting the bar for further development in the area
6. Speed of delivery
7. Sustainability
8. Financial Return for the Partnership

Question 8

What is a SWOT Analysis? PESTLE?

Answer 8

Demand side - structure analysis (Strengths, Weaknesses, Opportunities, Threats)

Demand side - influencing markets (Political, Economic, Social, Technological, Legal, Environmental)

Question 9

How would you prepare a business plan as a sole practitioner? Why is business continuity important?

Answer 9

Business continuity planning is the development of a strategic management plan to prepare an organization for responding to and recovering from various crises, such as natural disasters, pandemics, or cyberattacks. Inadequate management of a business crisis can lead to significant expenses and reputational damage.

Question 10

What are Countryside’ strategic pillars

Answer 10

Strong market position across all housing tenures
Deliver high quality sustainable homes
Leverage assets to maximise overall returns
Utilise brand portfolio to increase target market
Maintain operational land bank
Maximise opportunity from timber frame factories.

Question 11

What are some of the typical things you’d find in a business plan?
How can an up to date business plan help an organisation in the current economic climate?

Answer 11

Actions and decisions a company plans to take to reach its business goals and objectives. It will help guide executives and departments as to what activities should and shouldn’t be undertaken in order to execute its objectives.

Question 12

Why are the RICS consulting on their business plan?

Answer 12

RICS has been responding to the immediate financial implications of the pandemic and reshaping itself over the last year to cope with an agile shift to new ways of operating. RICS is also developing plans to better support the profession and the leadership contribution it can make to society in a post COVID-19 world as part of our work following the major consultation with members and stakeholders undertaken in early 2021.

Question 13

Why might the apprenticeship levy be beneficial to a business?

Answer 13

Employers develop a skilled workforce better suited to their business needs with a Registered Apprenticeship Program. Additionally, Apprenticeships offer a cost-effective way to recruit, train and retain skilled talent, improve productivity and safety, and comply with industry standards.

Question 14

How can a business plan help a company remain profitable

Answer 14

Assist with securing new funding and investment. Growth of existing client base, highlight key business objectives and allow for resource planning.

Question 15

What is a business model?

Answer 15

A business model is the strategy implemented by an organisation to generate revenue and make a profit from its operations.

Question 16

What are the benefits of an LLP when compared to a sole trader?

Answer 16

Being a sole trader is a very simple way to set up a business, but you are then personally liable for its debts. To avoid such liability, you could form a limited company or limited liability partnership (LLP), each of which has its advantages and disadvantages. For example, both are treated very differently for tax purposes, with the former paying corporation tax, and the partners in a latter being taxed individually on their share of the profits. Advice from a tax specialist is always recommended when business planning or considering company structure.

Question 17

What are KPIs?

Answer 17

these are quantifiable measures of performance over time for a specific objective, such as delivering reports within seven days or achieving a certain level of sales per department. Measuring KPIs consistently helps a business to track progress and identify trends, or to put plans in place where the indicators are not met. They can also keep a business focused on the right goals and avoid it becoming side-tracked. KPIs are typically monitored in a monthly report using a bespoke spreadsheet or database, shared with key staff.

Question 18

What is liquidity?

Answer 18

this is a measure of how quickly a business can convert assets into cash, thus being able to meet short-term financial obligations. Lacking liquidity can be a problem when payments such as VAT or tax are due. However, holding too much money in liquid sources such as cash can limit a business’s capital growth. In contrast, investing in property can make funds particularly illiquid – although this might be a good strategy for capital growth and supporting business strategy.

Question 19

Quantitative or Qualitative data?

Answer 19

business analysis tools can be both quantitative and qualitative. The former are based on facts and figures, whereas the latter use non-numerical data such as opinions or statements. Combining these forms of data can inform more robust business planning: for example, measuring performance data from a variety of sources and then discussing this with the staff or management involved to better understand their thinking.

Question 20

What is contained within an appointment document? What are your company’s terms of business?

Question 21

What legislation is relevant if you were to set up on your own?

Answer 21

Business Names Act 1985

Companies Act 1985

GDPR

2017 Money Laundering Regulations

Consumer Credit Act 1974 (for certain activities)

Financial Services and Marketing Act 2000 (for certain activities)

Question 22

How did you prepare the Clapham Park business plan?

Answer 22

where I considered anticipated revenue, cost movements and cashflow

my clients key KPI’s include profitability, peak debt and ROCE

This fed into my business units 5-year plan and my firm’s group plan.

Question 23

What is the difference between a strategic objective and a mission statement?

Answer 23

Mission statements and objectives are part of a business’s goal planning. A mission statement describes what the company is trying to accomplish and what its main purpose and focus are. Objectives are milestone goals to meet on the way to accomplishing the mission and are often financial.

Question 24

What is the profit margin, ROCE and peak funds set out in the Bracknell Forest Cambium Partnership business plan you helped to prepare?

Answer 24

This is confidential and have not received prior approval from my client to disclose this information, I can however set out that the Clapham Park LLP Business Plan

> Progress update
Objectives - speed of delivery, financial return and sustainability
Summary of services
Financials viability affordable baseline value
Risk register