L1 business planning COPY Flashcards
What are the components of a Business Plan?
Division of the business into service type / client segment
Financial performance targets
Plan business opportunities and allocate staff resource
Budgeting and cash forecasting money in vs. money out to understand what you can afford to pay
because you estimate what you will earn
Plan business opportunities, identify the resources required
How is a business plan laid out / structured?
- Executive summary
- Mission Statement
- Business Description
- Objectives
- Market Analysis
- Financial projection
- Sales and Marketing Strategy
- Risks
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 business description cover in a business plan?
What is the business model (customer base, revenue sources, products / service)
Special business relationships?
Location
Key principles – who runs the business / makes key decisions
Legal structure
Market opportunities – how will you thrive?
Growth – how will you grow
What do the objectives cover in a business plan?
Profit targets
Specific client targets
Types of projects
Marketing
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.
In terms of Business Planning, how does your management ensure that you make a profit?
Identifying opportunities by way of properties that come our way through our network
By keeping rents in line with market rents and reviewing at every tenancy end / renewal
By identifying properties that can meet the needs of current market trends and audience
By buying larger properties / developments through higher gearing in order to make a wider margin on profit
What do you do when starting up a business?
Develop a business plan which looks 3-5 years ahead
What would you expect to be included within this business plan?
o Mission Statement
o Goals and Objectives
o SWOT analysis
o Key Performance Indicators (KPIs)
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
E.G.:
My organisation’s strength lies in acquiring unique buildings which separate themselves from the standard new build stock
Though our weakness is that we do not have a large team which are fully charted / trained in certain areas
A new opportunity arose when we had investors seeking to block purchase our developments
One threat we face is the current COVID market and how we can recover from vacancies and property price reductions
What goals and objectives would you likely see?
o Expected profit margin
o Expected Turnover
o Markets the company are looking to move into
