Business Planning Flashcards
(29 cards)
What is RLBs business plan?
£150million by 2030
A single document presentation
RLB has a 5 year plan, 30 year plan and a 2030 business plan. This involves:
i. Building trust with clients
ii. To be global leader in the market
iii. Grow confidence in market
iv. Empower our people
v. Have a culture to allow employees to succeed
What is a business plan?
A forward lookahead and plan to achieve goals, to achieve profit, grow the company, increase staff count and expand the business, empowering its employees and making the company a good place to work
What is a business model?
a. Market analysis
b. Strategy to generate revenue
c. Products services being offered
d. What sector/niche
e. What clients
Tell me about RLB’s business plan
RLB has a 2030 business plan, which the aim is to expand the company and build on our service offering by this date. The business also has sort term yearly goals, and a consistent 10-year plan which is reviewed annually.
This includes building client relationships and finding and building new ones. Empowering the employees of the company to use knowledge and skills
How do you contribute to RLBs business plan?
Doing a good job, to encourage repeat work, get RICS accredited
- How do you make a business plan?
Identify what’s critical to the business an how to better this.
If you realised the fee proposal was incorrect and the job was losing money what do you do?
Assess if the scope has changed and why the time spent is more than the income, is there additional works, or are the people on the project too senior for the work, and see to amend this, and learn from it for future fee proposals.
What are the 3 categories of a business plan?
Short-, Medium- and Long-term plans
What is a SWOT analysis?
Analysis of internal strengths and weaknesses, and external opportunities and threats.
What is an appointment document?
Appointment of scope of services for an agreed fees to a consultant, Includes service agreement (T&C’s)
What is the purpose of an audit?
To ensure companies are adhering to standards and procedures according to ISO9001
Why is it important to look at revenue as well as profit?
Revenue looks at the “top line,” reflects growth and demand, while profit, the “bottom line,” reveals financial health after expenses. Revenue can reflect how a business is doing, the total income a business generates from sales of goods or services. Indicates the demand for a business’s products or services and its ability to attract customers. Can be used to create budgets, project future earnings, and track sales performance.
What issues would a company experience with a high staff turnover?
- Increased recruitment costs. Increased training costs.
- Inconsistent production / performance.
- Poor staff morale.
- Lower customer satisfaction / reputational damage.
- Loss of customers / repeat business.
- Higher operating expenditure.
- Reduced profitability.
What procedures does your firm adopt to ensure they are profitable?
My firms procedures include:-
Timesheets.
Resource planners.
Fee & cost reconciliation tools.
Project reviews.
Yearly Performance reviews.
Team Meetings.
Director one-to-ones.
Business Development Strategy.
Project pipeline monitoring.
Please provide some examples of fee earning vs. non fee earning staff at your company?
Fee earning members of staff would include:-
Quantity Surveyors.
Architects.
Project Managers.
Building Surveyors.
Valuers.
Commercial Real Estate Consultants.
Non fee earning members of staff would include:-
Administration staff.
Business Development Managers.
IT support staff.
What issues would you expect a company to experience with a high staff turnover?
Key issues encountered by the company could include:-
Increased recruitment costs.
Increased training costs.
Inconsistent production & performance.
Poor staff morale.
Lower customer satisfaction.
Loss of customers and repeat business
Higher operating expenditure.
Reduced profitability.
What is a Client Account Planning session?
This comprises a review of the current workload, resources and fees associated with an existing client appointment. It typically involves the identification of key client personnel who have influence over job opportunities and identification of who the firm should look to build relationships with. A review of pipeline opportunities with that client is also undertaken.
What are your firms Terms of Business?
Together with the Engagement Letter, the T&C’s will form the contract between our Firm and the Client. Our terms of business are made up of around 14 Sections including:-
General Obligations to the client which is to provide Services’ detailed in the Engagement Letter with the skill, care and diligence expected of a professional person.
The Client’s General Obligations for example they are not to solicit any Partner or Employee with a job offer, if this occurs they must pay £35,000.00 compensation.
Additional Service terms for example this sets out the entitlement for additional fees if the work scope varies.
My firms’ liability for example any claims raised are to be against the company and not any Partner or Employee.
Payment terms and interest entitlement in the event of late payment.
Termination and Suspension terms which have a minimum 7 days notice to suspend the works.
Force Majeure terms for example the company is not liable for failure to carry out its service obligations if this occurs.
Intellectual Property Rights relating to copyright of documents provided by the firm.
Assignment and Subcontracting terms set out the requirements for written consent from either party if actioned.
Formal communication is to be in writing to the addresses set out within the Engagement Letter.
Problems and Complaints handling procedures are included within the terms of business.
What is a Business Plan?
A business plan is formal statement of the business’s goals, strategies and financial projections. It contains detailed descriptions of the business including:-
Products or services.
Target market.
Competitive landscape.
Marketing and sales strategies.
Management and organisation.
Logistics and operations plans.
Financial Plans.
What is contained within a client appointment document?
A client appointment document would typically include:-
Clarification of the scope of services being provided.
The agreed fee bid and payment terms.
The terms of business.
Any agreed amendments to the firms’ terms of business.
Contact Details of key personnel who are working on the appointment.
Details of the firms complaints handling procedure.
Does your firm produce an annual account?
Yes it produces a statement of turnover, gross profit & net profit. This must be submitted to Companies House in accordance with the Companies Act.
Would you be able to interpret & understand an annual account?
At a high level but I would seek further advice from one of our internal Chartered Accountants if necessary.
How do you think an up to date business plan can help an organisation in the current economic climate?
Maintaining an up to date business plan can assist with analysing external threats and opportunities for example the increasing adoption of artificial intelligence, the impact of policies introduced by the labour government, high inflation and subsequent high interest rates. An up to date business plan can also assist with focussing on key internal priorities, responding to market changes, supporting with compiling financial projections and setting of targets for staff.
What procedures does your firm adopt to ensure they are profitable?
Procedures adopted include:-
The maintenance and review of weekly timesheets to identify both profitable and non profitable commissions.
Resource planners are used to support with efficient utilisation of staff and to ensure each commission has sufficient resources to meet client objectives.
Fee & cost reconciliation tools are used to monitor profitability levels.
Yearly performance reviews with client input are undertaken to support with gaining repeat business, improving on any weak areas and identifying any opportunities to cross sell additional services.
Business Development Strategy meetings are undertaken to identify new target clients and review upcoming pipelines of work that can assist with future forecasts.
