RICS Business Plan Flashcards
What is the current Business Plan?
RICS Business Plan 2021-2022
Are you aware of some the aims highlighted within the RICS Business Plan?
1) Support the profession as economies recover (C19)- minimise any increase in subscription costs.
2) Any surplus cash to pay back furlough monies.
3) Maintain/increase demand for RICS qualification- remain relevant for future generations.
4) Members use RICS to meet their knowledge/training needs.
What has the current Business Plan superseded?
COVID-19 Recovery Business Plan 2020-21
What is a business plan?
Provide an outline of goals and objectives along with how and why these are achievable.
What are the main headings you would see under a business plan?
- Executive summary
- Company description
- Market & Competition analysis
- Organisation structure + services offered
- Strategy and Financial records
What are your Business milestones?
Short term - High level of service and Recruitment
Medium term - Make sustainability a key driver.
Long term goals - Build relationships with new clients to continue the business, continue new revenue streams
How would you prepare a long term strategy?
Identify Key stakeholders + needs.
SWOT analysis, PEST analysis, SMART goals.
Marketing strategy/organisation resources (funding/staff).
Monitor/Review progress regularly.
How can/have you measure performance on a project?
KPI’s.
What is the SMART criteria you mention?
Specific, Measurable, Attainable, Relevant and Time specific
How does a feasibility study differ to a business plan?
A feasibility study will carried out before starting a business to determine the viability of it.
A business plan will then detail how it operates and done on the basis that the feasibility study was positive.
What is the difference between a Sole Trader, Partnership, Limited, and a LLP?
Sole Trader = Exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses.
Partnership = two or more individuals manage and operate the business. (Both owners are equally and personally liable for the debts from the business.)
Limited Company = shareholders’ liability is limited to the capital they originally invested.
Limited Liability Partnership = 1 partner is not responsible/liable for another partner’s misconduct or negligence.
How would you assess a contractors financial accounts?
Request a copy of the contractors company accounts for the last 3 years (3 statements).
• profitability
• Calculate their liquidity ratio assets vs their liabilities (if they would be able to cover losses under a contract and stay solvent.)
•Further advice is sought through financial reports/qualified accountant.
How could you check a companies financial standings pre tender ?
A credit check, check companies house, news articles and a google search.
What might be included in a SWOT analysis?
Strengths, Weaknesses, Opportunities and Threats.
How often might you update a business plan?
at least once a year
What are the different types of business plans?
Start up plan – how the business will operate long term
Annual Growth Plan – financial, marketing and operations
Scenario Plan – for companies in rapidly changing industry
Do you know what is included in your employer’s business plan?
- Sustained growth
* Meet market requirements
What are some of your business targets & objectives for the current year?
Sustainable approach plus increase staff count.
Give me some examples of some new business areas you could considering moving into.
- Drones
* Thermography
Explain how you manage your own time to ensure you deliver projects in a cost-effective manner.
Align my diary and share calendar. I logically assess inspection locations and delegate to individuals who live nearer.
What current challenges is Covid and/or Brexit bringing to Business Planning?
Shortage of staff/materials.
Increased prices of material
How can/have you measure performance on a project?
KPI’s (Key Performance Indicators)
What is your understanding of a succession plan?
Replace senior members
What is a mission statement?
Formal summary of the aims and values of a company
What is a fee forecast?
Future financial position to be assessed and ensures records are maintained for potential fees.
What is the difference between LLP and Ltd?
Ltd company can be non-profit/charity whereas LLP is always profit making. Ltd pays Corp tax and LLP doesn’t as they are classed as self employed.
What is a SMART Goal ?
To make sure your goals are clear and reachable, each one should be:
- Specific (simple, sensible, significant).
- Measurable (meaningful, motivating).
- Achievable (agreed, attainable).
- Relevant (reasonable, realistic and resourced, results-based).
- Time bound (time-based, time limited, time/cost limited, timely, time-sensitive).
What is PEST analysis ?
PEST stands for : • Political • Economic • Social • Technological factors
Once these factors are analysed organisations can take better business decisions
What are the different types of business set ups ?
- Sole Trader
- Partnership
- Limited company
- Limited liability company
Where would you find details of a company’s assets ?
Business assets are itemized and valued on the balance sheet, which can be found in the company’s annual report.
What affect has Covid 19 had on your business planning ?
High contractor demand, material delays, labour shortages etc
Why would you create a business plan?
- To help achieve funding
- Set business objectives
- Create a business direction
What is a Key Performance Indicator?
A measurable value to determine the success of project.
What is PESTLE analysis ?
External marketing factors: • P- Political • E- Economic • S- Social • T- Technological • E- Environmental • L- Legal • E- Ethical
How did you generate the fee? what other methods could you use?
- Hourly charge
- % of project value
- Fixed fee
How feedback been dealt with if the feedback was negative?
- Discuss initially with the client
- Consider in reflection what could be done differently
- Implement these into future project and share with the team as lessons learnt
How do you protect yourself?
- Correspondence is documented.
- Clear and understood service agreement.
- Suitable PII cover.
- Agree limitations, timescales, a break down of the fee so its clear (fee proposal) and reference my firm operates a complaint handling procedure.
What do you do to help you business remain solvent ?
- Forecasting
- Reviewing profit margins
- Marketing
- Ensuring repeat custom
- Working within my competence.
What is solvency ?
The possession of assets in excess of liabilities; ability to pay one’s debts.
Why was the business plan redacted?
There was personal information regarding colleagues and their envisaged growth within the company.
Why enrolling in frameworks is important?
Better working relationships.
Procurement over extended period of time
Reduced transaction costs.
What are the benefits of public sector projects?
Safe and consistent.
What is a framework?
Agreement between one or more contracting authorities e.g. Local Authorities or an NHS Trust and one or more suppliers e.g consultants.
