Business Planning Flashcards
(11 cards)
What is SWOT analysis?
SWOT analysis is a strategic tool used to identify and evaluate the strengths, weaknesses, opportunities and threats related to a business or specific project.
What would you need to consider when setting up a business?
Insurances - PI, public liability, employee liability, building insurance.
Compliance with health and safety legislation - providing a safe environment for employees, construction context - providing PPE on site.
Legal structure - private/public, associated reporting requirements.
Payment - PAYE etc.
Market - demand, conditions.
RICS regulation.
What is the benefits of a business plan?
Provides both strategic and operational direction.
Allows for quantitative review against KPI’s to assess business performance.
Risk management.
Decision making.
What is a business plan?
A business plan is a comprehensive document that outlines the goals, strategies and operational details of a business.
- Exec summary.
- Business description.
- Market analysis
- Marketing strategy.
- Organisational / management structure.
- Products and services.
- Financial overview including budgets/revenues/forecasts/expenses.
What is PESTLE analysis?
A PESTLE analysis examines how Political, Economic, Social, Technological, Legal, and Environmental external factors affect a business or an organization.
What is an S-curve in the context of business planning?
An S-curve helps visualize and predict a company’s growth or business performance over time.
What are the essential items of a business plan?
Mission statement.
Target markets.
Marketing strategy.
Operational Strategy.
Corporate governance.
Budgets.
Financial Targets.
What is a gearing ratio?
The gearing ratio compares the company proportion of owner equity to borrowed money. It measures a firms financial leverage.
What is the difference between liquidity and solvency ratios?
Liquidity focuses on a firms ability to meet its short term obligations.
Solvency focuses on a firms ability to meet its medium-long term obligations.
What is an example of a liquidity ratio?
Current ratio = current assets / current liabilities.
What is an example of a solvency ratio?
Debt to equity ratio = all liabilities / all assets.
