Business Planning L1 Flashcards
What issues would a company experience with a high staff turnover?
- Increased training and recruitment costs
- Poor staff morale
- Reputational damage/ Lower customer satisfaction
What is an investment appraisal?
An investment appraisal is used to determine whether a business or project would generate the required levels of return and be considered financially viable
What would an investment appraisal consider?
- rate of return
- payback period
- net present value
What is a business plan?
A formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals. This provides employers a common ground to focus on.
Advantages of a business plan?
- Provides guidance
- Helps predict problems
- Helps forecast future steps
- Focus on key priorities
- Allows organisation to respond to change
- Can be used for companies to secure funding
What components would you identify within a business plan?
- Executive summary
- Company description
- Marketing strategy
- Products and services
- Market analysis
- Financials
- Budget
What is a business model?
A business model is a structure that a company uses to generate profits and build value.
What is a business strategy?
Outlines the actions and decisions a company plans to take to reach its business goals and objectives
What is a SWOT analysis?
A framework for identifying and analysing an organisations s w o t
What is a PEST(LE) analysis?
An assessment of key external factors, it enables you to spot opportunities and gives you advanced warning of any significant threats.
- Political
- Economic
- Social
- Technological
- Legal
- Environmental
What are the coorporate objectives of you firm ?
- Achieve sustainable and profitable growth
- Expand customer base and meet clients needs
- Make a positive impact on the communities
- Deliver a high quality service
- Maintain a culture where people thrive and reach their full potential
How do you work towards firm objectives?
Deliver a good service through speed and quality of communication and collaboration with other stakeholders.
Work to a high standard
Share knowledge
Keep up to date with the industry and new technologies
Cross sell where possible to aid with profitable growth
How can you influence the creation of new business within your firm?
- Cross sell - Building Surveyor Team, Procurement Team, ESG Team
- Performance related work generation
- Awareness of client procurement
How is your teams performance measured?
KPI’s e,g.
80% rent collection on Day 7
90% rent collection on Day 14
95% rent collection on Day 28
Types of business structures:
Sole practioner = self employed, runs own business
Partnership = two or more people form business and profits are split
Limited Liability Partnership = two or more people form business, but partners not personally liable for debts business cannot pay (their liability is limited to amount of money they invest)
Limited Company = organisation set up to run business, business finances and personal finances are separate. After paying company corporation tax, profits are distributed to shareholders as dividends
Private Limited Company = cannot sell on stock exchange
Public Limited Company = can sell on stock exchange
