Business Planning (Level 1) Flashcards
What is the 3-horizon model?
Horizon 1 – 1-3 years (maintain strength of core business)
Horizon 2 – 2-5 years (explore new expansions)
Horizon 3 – 5-12 years (create new possibilities)
What is a business plan?
Document that defines the business objective and suggest strategies.
What can a business plan help achieve?
Funding
Gain new clients
Focus on priorities
Set budgets
Targets for staff
Public v private sector business plan?
Public: Maximise social benefit
Private: Profit for shareholders
Public sector business plan?
Value for money
Affordability
Deliverability
Commercial viability
What are the essential parts to a business plan?
Executive summary
Company description
Method statement
SWOT
KPI
Services
Market analysis
What are the methods for financial benchmarking?
Benchmarking performance against peer group
Profitability – management performance
Liquidity ratios – ability to pay current obligations
Leverage ratios – extent company rely on debt
Efficiency ratios – companies use of credit, assets, inventory
What forecasting techniques are there?
Delphi Technique – expert questionnaire
Subjective forecasting – subjective opinion
Time series – quantitative data over time
What is a KPI?
Measurable value that demonstrates how effectively company is achieving business goals. Track performance.
SMART
What is market analysis?
Qualitative and quantitative assessment of market.
Short term planning?
Present company characteristics
Develops strategies for improving them
E.g. skills of employees and attitudes
What is Long Term planning?
Want to solve problems permanently in long-term
Aligning company to long term goals and targets that take time
E.g. Net Zero 2050
What is a PLC?
Public Limited Company – public company, ownership open to public. Anyone can buy shares.
What is Royal Charter?
Granted power by the monarch
What is a Private Limited Company (Ltd)
Cannot be owned by public. Owned by small number of shareholders
What is a LLP?
Limited Liability Partnership
Partnership where partners have limited liabilities
Each partner is separately liable
What are the levels of business management?
Corporate
Management
Operational
How do you respond to business planning within your company?
QBR requirements, reporting data in
How do you record your time?
Recording internal time sheets weekly
What is the RICS business plan?
Build, maintain, promote chartered surveyors
What should you do when starting a business?
Create a business plan 3-5 years
What is a mission statement?
A formal summary of the company aims and values
Why is it important to forecast fees?
Plan future business activities and ensure you hit your desired minimum profit margin
What are the different forms of business vehicle?
Sole practitioner, partnership, LLP, limited company and PLC
What is your firms vision?
Sector agnostic, operate across a range of sectors and markets
What is Corporate Social Responsibility?
Businesses considering their role in relation to the community, the environment, customers and staff
Why does your company have a Slavery and Human Trafficking Statement?
Have a responsibility as a global corporate citizen
* Comply with the Modern Slavery Act 2015
How does your firm comply with the Modern Slavery Act 2015?
Group procurement policy defining minimum standards when procuring goods or services
Whistleblowing policy
Training and awareness
Corporate responsibility policy
