L1 business planning Flashcards
What are the components of a Business Plan?
Executive Summary
▪ Marketing Strategy
▪ Vision & Mission Statements
▪ Products & Services
▪ Management Team & Organisational Structure
▪ Financial Forecasts
▪ Responsibilities & Targets
▪ SWOT Analysis
▪ PEST Analysis
What does the mission statement cover in a business plan?
A formal summary of the company aims and values
Short statement of an organisations purpose, identifying goal of its operations; kind of product / service it provides, its primary customers / market, and its geographical region of operation
Business plan sets out how you will achieve your mission
What does the market analysis cover in a business plan?
Understand the environment you operate in, and the skills required to be successful
Ensures resource is in place to achieve those objectives
Where do you fit?
SWOT / PESTLE
What does the financial projection cover in a business plan?
Where company currently stands and where it intends to be (financially)
How will the business afford to achieve its strategic goals and objectives?
Create a financial plan - includes;
- Income statement / P & L statement
- Balance sheet
- Cash flow statement / cash budget
What does the sales and marketing strategy cover in a business plan?
Positioning the business
Researching the market
FOUR P’s:
- Product: what is offered
- Price: setting price signals, what to expect from the product
- Place: where the business is located & where it can operate
- Promotion: advertising, spreading awareness, sharing the brand
What is a market analysis and why is it important in a business plan?
A market analysis = a quantitative and qualitative assessment of a market
Helps to identify size of the market both in volume and in value, various customer segments and buying patterns, the competition, and the economic environment in terms of barriers to entry and regulation
The business plan can then align their strategies with the needs of the customer audience
Why are business plans produced up to a 5 year period?
Business plans should be updated regularly to respond to changes in the market, the performance of the company, the release of a new product or service line
A PESTLE analysis can assist with identifying meaningful changes to the business.
What do you do when starting up a business?
Develop a business plan which looks 3-5 years ahead
What is a SWOT analysis?
Internal study undertaken by a business to identify its Strengths, Weaknesses, Opportunities and Threats
Can help shape the business strategy, highlighting areas of concern or advantage for the business
What is a KPI?
A measurable value to determine the success of project/venture
What is a PESTLE analysis and why is it used?
Often used as a broad fact-finding activity
Helps organisations establish external factors that could impact decisions made inside organisation
Political (i.e. Tax policies like SDLT, foreign trade, government policies)
Economic (i.e. Brexit, COVID, recession)
Social (i.e. population increase, change in market demographic)
Technological (i.e. new cheaper materials / construction methods?)
Legal (i.e. planning, regulatory changes, Tenant Fees Act 2019, consumer protection laws etc)
Environmental (i.e. MEES, climate change, obsolescence)
What is a business plan?
A formal statement of the businesses goals, reasons why they are attainable and the plan for reaching the goals
Provides employers with a common ground to
focus upon.
What do you find in a Business plan?
The vision
Objectives and goals
Strategies and actions
How do companies write a business plan?
Analyse industry: to identify business opportunities and critical success factors
Focus their resources in developing their competences in the critical success factors.
Then leads to the development of goals and objectives with associated strategies and actions
What procedures does your firm adopt to ensure they are profitable?
▪ Time recording (TOGGL)
▪ Resource planners
▪ Project reviews
▪ Yearly Performance reviews
▪ Team Meetings
▪ Director one-to-ones
▪ Business Development Strategy
▪ Project pipeline monitoring
How can a business plan help a company remain profitable?
Assist with securing new funding and investment
▪ To grow existing client base and projects
▪ Highlight key business objectives
▪ Assist with responding to change
▪ Grow market share
▪ Supports accurate forecasting and budgeting
▪ Allows resource planning
What is a business model?
A business model is the strategy implemented by an organisation to generate revenue and make a profit from its operations.
May detail the following components:
• The products or services being offered to the client base.
• The business niche or sector being operated in.
• Target clients / customers
• The route to market entry including costs associated with bring the product / service to the target market
What is meant by the term business strategy?
A business strategy outlines the actions and decisions a company plans to take to reach its business goals and objectives.
Key components will include:
• Vision & Business Objectives
• SWOT Analysis
• Resource Allocation
• Performance Monitoring & Review
What RICS guidance could you refer to with business planning?
Practice management guidelines: The management of surveying businesses GN (2010)
Can you tell us about your company’s current business plan?
x
What is your company’s management structure / business model?
x
What are your company’s values?
x
What tools does your company use to manage its business?
Apprais’d - regular appraisals to understand individual PDPs and how these align with wider business goals
Toggl - staying on track with time
Hubspot - client management system
Quickbooks - accounting requirements
How do you ensure that you contribute to the achievement of your company’s objectives / business plan?
Via Apprais’d
Look to seek out new work through existing clients and build rapport with them
25 billable hours per week
Establish ways to crreate more billable work through BTR ideas
Assist on ESG strategy
BTR Insights
In terms of Business Planning, how does your management ensure that you make a profit?
x
What are your business’ goals?
When was the RICS business plan introduced for this year?
December 2021
What is the RICS Business Plan called?
BUILDING TOWARDS A NEW FUTURE 2021-22
What are the FIVE KEY PILLARS of the RICS building towards a new future business plan 2021-22?
1 Trusted by our stakeholders and society 2 RICS qualifications in demand 3 Influential thought leader 4 Involved and engaged members 5 Sustainable 21st century professional body
What was the independent Levitt Review?
was commissioned by RICS to investigate articles in the press that alleged that RICS ‘tried to supress a critical internal report into its finances in 2018/2019 and then unfairly dealt with those who sought to explore the issue’ (Levitt, 2021).
Why did the Levitt Review take place? What happened?
RICS commissioned a Treasury Management audit in 2018 Four non-Executive Board members of RICS then raised concerns that the audit had been suppressed and were subsequently dismissed from the Management Board RICS Governing Council commissioned the Independent Review in January 2021 by Alison Levitt QC
What were the conclusions of the independent review?
Sound governance principles were not followed by RICS. non-Executive Board members’ concerns were legitimate and were wrongly dismissed A key contributing factor was a lack of clarity around the roles and responsibilities of the various RICS Boards, senior leadership and management. This led to a lack of scrutiny over the actions of the RICS Chief Executive and Chief Operating Officer Prior to the report’s publication, a number of key RICS figures stood down; CEO Sean Tompkins, President Kath Fontana, Interim Chair of Governing Council Chris Brooke and Chair of the Management Board Paul Marcuse. Amit Shah, Chair of the Audit Committee, also came to the end of his term.
What were some of Levitt’s recommendations and how many were there?
18 in total RICS to convert its internal review into a wide-ranging examination of purpose, governance and strategy, conducted by an EXTERNAL reviewer all Minutes of all board meetings should be provided to Governing Council once they have been agreed provision of updates to Governing Council is the responsibility of the Chair of the Board or Committee and should no longer be provided by the Chief Executive or any other member of staff
