Business Management for Builders

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Business Management for Builders 2182GG

• Prepare A Business Plan

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Business Environment pp3 - 4

• What factors can affect business
• Economy
• Interest Rates
• Boom or Recession
• Consumer Confidence
• Government Stimulus
• Industry
• Availability of Skilled Employees
• Undersupply or Oversupply
• Government Regulation

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What is Business Planning

• Is a process to forecast and facilitate the
  activities of you business in a defined period in
  the future
• Check the Feasibility of Your Idea
• What is your long term plan
• Prepare full Business Plan

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What is a Business Plan

• Formal statement of a set of business goals
• Plan for reaching those goals.
• It may also contain background information about
  the organization or team attempting to reach
  those goals.

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Determine Feasibility pp-7
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Components of Business Plan

• Executive Summary
• Business Goals
• Management Plan
• Market Research and Analysis
• Marketing Plan
• Operational Plan
• Financial Plan
• Action Plan

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Business Goals

• Your business goals should provide a clear
  picture of the business you will be in over the
  next years, covering
• what products and services you are going to sell
  
• the customer groups and their requirements you
  will be targeting
• the basis of your future success.  What will make
  customers buy from you rather than your
  competitors?
• what business returns you are aiming to achieve.
• Finalise your business goals after completing
  your market research.

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Business Goals Builders Speak

• what products and services you are going to sell
  
• New Houses, Renovations, Spec Houses etc
• the customer groups and their requirements you
  will be targeting
• High Quality, Budget, Disabled, Ethnic
• the basis of your future success.  What will make
  customers buy from you rather than your
  competitors?
• Workmanship, Customer Service,
• what business returns you are aiming to achieve.
• What Profit do you expect
• Finalise your business goals after completing
  your market research.

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Management Plan

• This covers how your business will be structured
  and run and what management capabilities will be
  developed. 
• Cover any legal matters in relation to structure,
  intellectual property rights, licensing and
  contractual matters, eg with suppliers.
• What type of Business Structure
• Sole Trader
• Partnership
• Company
• Conduct SWOT Analysis 

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What is a SWOT Analysis

• SWOT Analysis is a strategic planning method used
  to evaluate the
• Strengths,
• Weaknesses,
• Opportunities
• Threats
• involved in a project or in a business venture

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SWOT ANALYSIS
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Marketing Plan

• Your marketing plan needs to identify
• Your product/service offering  What are you
  offering your customers?  What is its likely life
  cycle?  Are there substitutes available in the
  market?  Will it meet your customers' needs?
• Your market  Its size, geographic location,
  demographics and trends?
• Your customers  Who are they?  What, why, where
  and how often do (will) they buy?
• Your competitors  Who are they?  How do they
  compete on price, services, quality?

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Marketing Plan

• Your marketing plan needs to cover the strategies
  you will put in place to capture and keep
  customers.  This includes how you will make your
  product/service available  how you will promote
  them and build your business image (including
  networking)  and your pricing policies

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Organisational Plan

• People  Will you employ or use contract staff? 
  If so, how will you manage them?  What other
  expertise will you need?
• Processes  What systems and procedures should you
  put in place?  What production output and methods
  will you use?  RD initiatives.
• Suppliers  Who should they be?  Cost and quantity
  of supplies?
• Equipment/technology  What equipment and IT
  requirements do you have?  What skills will you
  need to maintain or upgrade these?

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Organisational Plan

• Premises  Will you purchase or lease property or
  work from home?
• Licences, Permits
• Government Regulations
• Reporting  What is the most suitable reporting
  system to put in place to allow you to monitor
  your performance?

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Financial Plan

• how much money you need to start the business
• financial analysis - projected profit and loss
  over the next one to two years
• cash flow analysis - projected cash in and out on
  a monthly basis so that you can check whether you
  will be able to pay your bills
• balance sheet
• sources of finance - who will lend you money and
  how much will you need?
• what your business break-even point

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Financial Plan

• Cashflow and Budgets
• Difference between Budgeted Cashflow and Actual
  Cashflow
• How do you control budgets
• By efficient account procedures
• Comparing Actual v Budget and taking timely
  actions
• Cash or Accrual Accounting

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Financial Plan

• What is Breakeven Analysis- A point where you
  income equals all your costs
• Including
• Supply Costs
• Employee Costs and On Costs
• Overheads
• Depreciation
• Statutory Costs
• Any Funds above this is Profit

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What If Analysis
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