Business Planning

Question 1

What are the different types of business plans?

Answer 1

Start up plan
Strategic plan
Growth plan
Operational plan
What if plan

Question 2

Talk about the structure of your business

Answer 2

Currently director level, commercial manager, site level
Previously you had group level, company director level, division management, region management, site level

Question 3

How do you plan for long term future?

Answer 3

Plans need to be in place for the next 3-5 years including current projects, pipeline of work, target market and goals to reach

Question 4

What might you find in a business plan

Answer 4

1. Directors summary
2. Current performance and financials
3. Projected performance and financials
4. Previous targets
5. SWOT analysis
6. Company organogram

Question 5

What is working capital?

Answer 5

The capital available to a business during its day to day operations

Question 6

What is stock?

Answer 6

Stocks or shares are the units of ownership of a company

Question 7

What is a creditor?

Answer 7

A creditor I someone that the business owes money to either through loans or unpaid invoices etc

Question 8

What is a debtor?

Answer 8

A debtor is someone the business can collect debt from usually through invoices for work completed

Question 9

How do you forecast cash flow?

Answer 9

Cash flow forecasts are made up of all the incomes and outgoings of a business. Start with the project cash flows by analysing the spend on a project based on the programme and adjust for retention. An S curve might be a start point as recommended by the RICS practice standard on cash flow forecasting