Business Planning (L1) Flashcards
(34 cards)
1
Q
What are some typical headings you’d expect to see in a business plan?
A
- Business goals, strategies and financial projections
- Executive summary
- Company description
- Market analysis
- Product and services
- Marketing and sales strategy
- Operational plan
- Organisation & Management
- Financial Projections
- SWOT / PEST Analysis
- Milestones & Timelines
2
Q
Tell me what you could Inlcude in a fee proposal?
A
- Scope and services
- Free breakdown, including fee calculating mechanism
- Timeframes for services
- Team and expertise proposed
- Exclusions and assumptions
- Project description
- Terms and conditions
- Methodology / approach
- Project risks
- Acceptance signatures
3
Q
What factors might affect the fee value you come to?
A
- Level of expertise required
- Timeframe / time to be undertaken
- Scope and complexity
- Specialist requirements
- Distance to travel
- Risks associated with the project
- Scale of project / length of service
- Market and industry rates
- Inflation and economic conditions
- Payment terms and structure
4
Q
How would you approach a conversation with a client where they are trying to know down your fee?
A
- I would look at avenues to adjust the scope or services to fall within budget whilst still providing them with their requirements
- If this was not possible, I would refuse
- Lowering fees provides an unfair advantage
- Could lead to de value of the profession
- Rates are based on business OHPs and in line with the business scale
5
Q
What are the typical ways of calculating a fee?
A
- Percentage basis of project costs
- Time charge basis, hourly, daily etc
- Fixed sum
- Framework rates
- Commission based fee
- Milestone or phased payments
- Value based fee
6
Q
What insurances do you need to have in place as a chartered surveyor?
A
- Professional Indemnity Insurance
- Public liability insurance
- Employers liability insurance
- Car insurance
- Gadget / equipment insurance
- Office building insurance
7
Q
What is the difference between sole trader, LLP, Ltd and Partnership?
A
Sole Trader
- Owned and opened by one individual with unlimited liability
Partnership
- Two or more individuals run business together with unlimited liability, less control for each than sole trader
Limited Liability Partnership
- Combines elements of a partnership and a limited company, have limited liability, personal assets are protected, more formalities, filing and accounts
Limited Company
- Separate legal entity from its owners, limited liability company, directors not liable for debts beyond the company’s assets, more admin, annual accounts and tax returns
8
Q
What are business plans, and why are they important?
A
- Outlines a company’s goals, strategies for achieving them, financial projections, target markets, products or services, and structure, typically 3-5 years
- Ensures that owners and investors understand how the company intends to grow and achieve its objectives
- Increases chance for business success and longevity
9
Q
What is a SWOT analysis and how is it used?
A
- Can be used to form part of a business plan
- Used to set targets and understand limitations to promote growth of the business
- Strengths
- What the organisation is good at and advantages over competitors offering similar services - Weaknesses
- What the organisations weaknesses are in comparison to competitors - Opportunities
- External factors the business can capitalise on - Threats
- External challenges that could negatively impact the business, I.e changes in regulations, competition, consumer behaviour
10
Q
What are 5-year Business Plans?
A
- Outlines the companies goals and objectives over a 5 year period
- Specific actions and resources to achieve them
- Roadmap for the business
- Medium term 5 year plan
11
Q
What are 10-year Business Plans?
A
- Long-term strategy that outlines a company’s vision, goals, and path it intends to follow over the next decade
- Long term industry trends
12
Q
What do you include in a fee proposal?
A
- Scope and services
- Fee and fee calculating mechanism
- Team and expertise
- Timelines / programme
- Proposed methodology
- Assumptions / exclusions
- Project risks
- Terms and conditions
- Project background
- Signature and acceptance
13
Q
What do you do in Business Development workshops?
A
- Network and improve marketing and sales skills
- Discuss market trends and technological advancements
- Legal and regulatory compliance changes
- Identify target areas for growth
- Discuss weaknesses and put plan in place to strengthen
- Set action points for next meeting
14
Q
What is a balance sheet?
A
- Financial statement required for business to submit to government authorities as per relevant legislation, Company Act 2006 and GAAP and IFRS
- Shows everything a business owns, owes, or is owed
- Current assets and liabilities
- Shows financial health of a business
- Allows to make informed decisions on future of business
15
Q
What is a cashflow statement?
A
- Statement required to be submitted as per relevant legislation Company Act 2006, GAAP and IFRS
- Shows all cash outgoing and all cash incoming during a specific timeframe
- Allows business decisions and understand the trend of the business in any given timeframe
- Business financial health over a period of time
16
Q
What is a profit and loss account?
A
- Financial statement required under Company Act 2006, GAAP and IFRS
- Shows business revenue, costs and expenditure during a time period
- Shows whether business is making a profit or a loss
- Informs on financial health of the business
17
Q
What would be included on a Business Plan?
A
- Executive Summary
- Goals and objectives
- Services offered
- Marketing and sales strategy
- SWOT / PEST analysis
- Management structure
- Strategy on achieving goals
- Financial projections
- Milestones and timelines
- Market analysis / trends
18
Q
Tell me about your involvement with Business Planning?
A
- As a senior surveyor, I track resources within the team
- Feed into fee schedule which is shared with the business managers
- Understand whether projects are in profit or loss
- Attend business development workshops
- Attend student workshops
19
Q
What are the corporate objectives of your firm?
A
- Expand commercial sector services, offices, retail
- Employee development and upskilling
- Marketing and brand recognition
- Good place to work scheme
20
Q
How do you work toward your businesses goals in your role?
A
- Help develop younger professionals and apprentices
- Social media posts on project successes
- Action plan during business development meetings
21
Q
What are the typical things you’d find in a business plan?
A
- Executive summary
- Goals and objectives
- Services and expertise
- Market analysis
- SWOT / PEST analysis
- Financial projects
- Marketing and sales strategy
- Business / management sructure
- Operational plan
- Timeline / milestones
22
Q
How can an up to date business plan help an organisation in the current climate?
A
- Disaster recovery plans
- Business longevity
Navigate to adapt to;
- Incertainty
- Inflation
- Change in consumer preferences
- Rapid technological advancements
23
Q
How do you use networking to further your Business Planning skills?
A
- Improve communication and collaboration skills
- Improve confidence and public speaking skills
- Develop marketing and sales skills
- Develop commercial awareness
- Learn from others
- Build relationships
24
Q
Why is relationship building important in your role?
A
- Helps improve communication and negotiation skills
- Develops collaboration and promotes diversity and inclusion
- Develops client facing skills
- Trust and credibility
- Building long term relationships and business opportunities
25
What is a PEST analysis?
- Mechanism used to assess external factors of a business and how it can impact the business positively and negatively to develop business further
1. Political
- Government polices, regulations
- Taxes, trade profits, industry specific regulations
2. Economical
- Overall economy
- Interest rates, inflation, exchange rates etc
3. Social
- Cultural, demographical, society trends
- Population, age distribution, social attitudes
4. Technological
- Emerging technologies, innovations
- Advances in AI, digital infrastructure, new devices
26
Can you tell me when you have used a PEST analysis in your role?
- Commercial business development workshops
- Used SWOT to understand the strengths and weaknesses of Ridge compared to competitors
27
What insurance types have you dealt with and what risks have they protected you against?
Ridge PII Insurance
- Protects the firm against claims for negligence
Contractor Insurances, Public Liability Insurance,Employers Liability Insurance
- Protects existing structure and contents during building works
28
Explain the objectives of the RICS Covid-19 Recovery Business Plan?
- Support members and industry through pandemic challenges
- Supporting members through crisis recovery
- Promoting health, safety and wellbeing
- Driving digital transformation and innovation
29
What is the Covid-19 strategic review called?
- Covid-19 Recovery Business Plan
30
What is business continuity and why is it important?
- Maintain essential functions and operations during and after disruptive event or crisis
- Includes natural disasters, pandemics, cyberattacks, economic downturns
- Minimise downtime
- Protects reputation
- Protects employees and stakeholders
- Improved decision making
- Reduces financial losses
- Supports long term growth
31
Explain how the apprenticeship levy works?
- UK government initiative introduced in 2017
- Encourage businesses to invest in training and development of their workforce
- Create more apprenticeships and opportunities
- Improve skills across industries
- Aimed at larger employers
- Employers with annual pay bill over £3m pay 0.5%
- Employers access digital account to pay for apprenticeship training and assessment costs
32
Why might apprenticeships levy be beneficial to a business?
- Invest in workforce development
- Access to government funding for training
- Increased employee retention and loyalty
- Improved productivity
- Improved diversity and inclusion
- Long term cost savings
33
When is the apprenticeship levy payable?
- For businesses with an annual pay bill of over £3m
- 0.5 of anything over this amount before tax and benefits
- £15,000 annual allowance to offset costs
34
Why is business continuity important?
- Employee retention
- Business growth and longevity
- Trust and confidence
- Business reputation
- Minimised disruption
- Improves decision making
- Reduces financial losses
