Business Planning (Level 1) - General 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.
The investment appraisal would typically consider:
Rate of return
Payback period
Net Present Value
What is a Business Plan?
A business plan is 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
Allow 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 & 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?
SWOT analysis is a framework for identifying and analyzing an organization’s strengths, weaknesses, opportunities and threats.
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 corporate objectives of your firm?
Achieve sustainable and profitable growth.
Expand customer base and meet client’s needs.
Make a positive impact on the communities.
Deliver a high quality of service
Maintain a culture where people thrive and reach their full potential.
How can you influence the creation of new business within your firm?
Cross sell e.g. Building Surveying Team, Procurement team, ESG team
Performance related work generation
Awareness of client procurement
How do you work towards firm objectives?
Deliver a good service through speed and quality of communication and collaboration with other stakeholder.
Work to high standard
Share knowledge
Keep up to date with the industry and new technologies
Cross sell where possible to aid with profitable growth
How is your teams performance measured?
KPIs 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 Practitioner = 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
