*EP APC Business Planning Flashcards
What is a business plan?
A business plan is a written document that describes in detail how a business—usually a startup—defines its objectives and how it is to go about achieving its goals.
A business plan lays out a written roadmap for the firm from marketing, financial, and operational standpoints.
Why is business planning important?
important and strategic tool to help focus on the specific steps necessary to make business succeed.
Helps them to achieve short-term and long-term objectives and plan against any risks.
Why do you have to ensure fee forecasting is accurate?
It will enable you to assess the performance of the team / business
Will ensure you can plan your income and expenditure correctly.
How has COVID 19 affected business planning?
During the pandemic, planning becomes difficult in an uncertain market/economy.
Business activities become short term and reactionary.
Potentially reduce staffing and discretionary expenditure.
Focus on maintaining income rather than growing it.
Post Covid, need to plan for a similar event. Office space, staffing numbers, PPE and H&S policy.
READ UP ON RICS COVID 19
How can a business monitor its performance?
- setting and assessing goals and target
- Monitoring KPIs
- competitor analysis
What was your companies performance last year?
TBC
What are your companies short, medium and long term goals?
TBC
Explain a sole-practioner?
an unincorporated business that has just one owner who pays personal income tax on profits earned from the business.
easiest type of business to establish or take apart, due to a lack of government regulation. As such, these types of businesses are very popular among sole owners of businesses, individual self-contractors, and consultants.
Explain a partnership?
A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits.
There are several types of partnership arrangements. In particular, in a partnership business, all partners share liabilities and profits equally, while in others, partners may have limited liability.
Explain LLP?
Limited Liability Partnerships - LLPs are a flexible legal and tax entity that allows partners to benefit from economies of scale by working together while also reducing their liability for the actions of other partners.
i.e. if partnerships fail, creditors cannot go after a partner’s personal assets or income.
A partner’s liabilities is limited to the amount they put into the business.
Explain PLC?
A public limited company is a public company which offers shares of stock.
Shareholders have limited liability.
Allows a company to raise capital.
However, they are subject to increased scrutiny and regulation?
Explain limited company?
They are incorporated at Company House as a separate legal entity - the company operates separately to the owners.
The company is separate to it’s owners, it’s its own entity.
The liability of shareholders is limited to their stake in the company.
What is corporate social responsibility?
Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public.
By practicing corporate social responsibility companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.
What is your companies CSR policy?
TBC
What is the RICS business plan?
RICS Business Plan 2018 - 21
Long term goal
- wants to remain demand
- will do this by inspiring the next generation
Risks:
- Loss of trust in profession
LOOK FOR 2022 UPDATE
What is the RICS Covid-19 Recovery Plan 20-21?
Details how the RICS is planning to mitigate the risks of COVID.
i.e. acknowledge that some firms might not be able to afford membership fees - will offer concessions for financial hardship and delayed payments.
CHECK FOR UPDATE
What are KPIs and why are they used?
Key performance indicators.
A way of measuring performance and health of your business. Offers an overview of your company.
What are some KPI metrics used?
Individual = Billing - monthly and annual, and fee per job
Company = Revenue, Profit
Estate Agency = Deals, ave fee, Viewings, offers, applicants registered, phones made etc.
What are some of the key things to include in a business plan (An, Re, M/C A, P/S, Ma, FP)?
- Analysis of some of the key risks and opportunities facing the business
- Resources required to service clients
- Market/competitor analysis
- Products and services
- Marketing and sales strategy
- Financial plan
What sort of financial planning would you use (3)?
Budgets, cash flows and financial/audit controls
What are the different forms of business vehicle (4)?
Sole practitioner, partnership, LLP, limited company and PLC