What is a buisness plan and explain its contents?
Written document which outlines the key aims and objectives of a buisness and covers numerous aspects including strategy, resouce and operation including the following:
Exec statement
Aims and Objectives
Structure / Organisation
Market Analysis (consumer habits and trends)
Products
Financial Forecasts (based on previous
Operational Plan
Resource
SWOT
PEST
Can be provided to investors to secure funding
Provide a summary of your firms buisness plan, the opportunies and risks they face?
There mission is to provide high levels of client care and solve construction problems
There aim is to be a leading multi disiplinary consultancy and ensure diverificationa across multuple sectors to comab against supply chain pressures, inflation and political factors
There objectives are to expand geogrpahically, expand in new markets and meet employee needs
What is PEST, give examples of use
PEST – can be used alongside SWOT
A method used to help businesses to identify factors (political, economic, social and technological which could impact its performance and therefore profitability. It allows for better strategic planning
Pros – increase competitiveness, innovation, leadership, compliance
Cons – Not very prescriptive or single method, hard to fully determine the outcome of an event
Political (Government) – Building Safety Act 2022, COP29, Housing and Development, new labour might indicative new investment in housing and education
Economic (inflation, interest) – Average 2.5%, following Covid where it has rose to 9%it impacted construction material industry like steel
Social (demographics, culture, lifestyle) – Following Covid, work from home became norm, gen z want more support, and work life balance
Technological (Ai, drone use) – Changes the way in which projects are delivered
What is SWOT, give examples of use
SWOT – review of an organisation to help determine its current position and its potential future position (planning) based on SWOT. Can be applied to any stage of a business to determine any factor.
Frist set the objective i.e introduce new team, gather all associated data i.e internal and external, SWOT, refine findings then develop strategy
Pros – complex problems become more manageable, cheap
Cons – If one answer is incorrect it can mislead the strategy
Ridges acquisition of Jubb
Objective – determine whether to acquire Jubb (structural and civil engineering)
Data – Business data, financial statements, external data
SWOT – Determine SWOT against the data in line with he objective to develop a strategy
Why is a buisness plan important?
Allows for investment
Ensures tracking on the various arms of the buisness which are otherwise too complex
Improves marketing
Improves operation
Improves finances
What sort of financial planning would you use?
FP is process of setting finanical goals
i.e future cashflow statements can be used, or ratios
Why is it important to forecast fees?
Allows for resource allocation, determine the buisness stragety and be adaptable
What is Corporate Social Responsibility?
Buisnesses have a responsbility to ensure there operations are not affecting communites, enviroment and staff
How does your firms objectives pass to individual teams?
Quarterly buisness updates via teams
What is the modern slavery act 2015
It is ilegal to use labour which is trafficked or savery
Buisnesses should ensure they reveiw supply chains
What is your companies short and long term goals?
Short term:
Provide high level of service to clients
Encorage diversity and inclusion within firm by setting up an internal board
Long term:
Expand geographically into Wales region
Expland services in data centres and defence
Meet sustainability and lower emissions
What is the difference between aim, objective and mission statement?
Mission Statement - Key purpose (Braod)
Aim - Key desiered outcome which is a long term goal (Strategic)
Objectives - Are seperate statements which help to acheive the aim and are short term (Specific) - SMART
What is a KPI, give an example
Something used to measure performance against meeting a SMART objective.
I.e objective might be to complete works to a certain time
therefore the KPI is time
How can business planning improve buisness operation and efficencies?
Provides clear strategy on mission, aims and objectives looking at PEST and SWOT (SMART)
Tell me what you would include in a fee proposal?
Exec Summary
Project Descrition and Location
Scope of works and what will be provided and deliverbles (what will be provided)
Programme
CVs of those involved
Fee proposal and full breakdown
Payment Terms
Exclusions and Limitations
Termination
CHP
What factors might affect the fee value you come to?
Expertise required
Location
Access
Sub consultancy
Programme / Time
How would you approach a conversation with a Client where they are trying to knock down your fee?
Substantiate Fee and Justify
Ethically wrong
Look to reduce scop, phased work, alter payment terms
What are the typical ways of calculating a fee?
Time charge
%
Lump sum
Differecne between liquidation, adminstration and insolvency?
Insolvency (condition) = cannot pay debts it triggers adminstration or liquidation (the latter of which are process)
Adminstration is to re structure and save
Liquidation = closing out company
