business planning apc questions

PROPERTY JOURNAL

An A–Z of business planning for APC

Planning ahead is an essential requirement for any successful business. What do you need to know about the Business planning competency when completing your APC?

• Jen Lemen FRICS

24 February 2023

Commercial property

Corporate real estate

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Business planning, a mandatory competency for all APC candidates, requires an understanding of the principles and tools used when devising a business plan, as well as how the process contributes to achieving corporate objectives.

But in addition to this general understanding, you should appreciate the importance of business planning and processes at the firm where you work, as detailed below.

Analysis: analysing a business is a key part of planning for it. This can involve the analysis needed to set up a new business, to manage change in an existing one, or to identify areas for growth or investment. Among the many tools that can be used is a strengths, weaknesses, opportunities and threats (SWOT) analysis. This is a framework that can be applied to any business, helping to identify internal and external factors that affect its performance and to understand current and future potential (see Figure 1).

Figure 1: Example SWOT analysis matrix for a new surveying business

Business types: businesses have a variety of structures, including sole traders, limited companies and partnerships, and understanding the type is important when planning ahead. Being a sole trader is a very simple way to set up a business, but you are then personally liable for its debts. To avoid such liability, you could form a limited company or limited liability partnership (LLP), each of which has its advantages and disadvantages. For example, both are treated very differently for tax purposes, with the former paying corporation tax, and the partners in a latter being taxed individually on their share of the profits. Advice from a tax specialist is always recommended when business planning or considering company structure.

Competition: typically occurring between similar companies serving a similar target market, competition could still come more widely from the same industry or sector. Therefore, analysing who your competitors are and how they are performing can help to inform your business planning, including identifying areas for growth or expansion, or where competition may otherwise be eroding profitability or opportunities.

Debtors and creditors: another part of business planning is understanding who owes money to a business – its debtors – or to whom the business itself owes money – its creditors. For example, a business may have taken a loan, in which case the lender is its creditor; alternatively, it may be owed payment of an invoice by a customer, who would be its debtor. Maintaining good payment practices and being aware of when sums become due is essential for business planning to maintain a good relationship with creditors. Likewise, understanding the amount that debtors owe and recognising any red flags that they are not able to pay can help avoid cash-flow issues and keep the business running smoothly.

Related article

An A–Z of accounting practice for APC

Elements: a business plan will typically include some or all of the following elements:

• an executive summary
• a business description
• a market analysis and strategy
• a marketing and sales plan
• an analysis of the competition, including their services
• an operating plan
• detail of company structure
• financial analysis
• objectives or goals
• summary of the strategy.

There is no fixed format or structure to a business plan, however, as this will be tailored to the specific business in question. You should still have read and be familiar with your firm's business plan.

Forecasting: this is an essential part of business planning, allowing consideration of what may happen in the future. However, as business planning can be akin to gazing into a crystal ball, it is often impossible to predict accurately. Using a variety of business planning tools and accurate, up-to-date data will help you make forecasting as useful as possible. You may for instance use work-in-progress schedules or forecast planned billing for instructions on which you are currently working.

Goals: these are what a business wants to achieve in the short, medium and long term, and could include improving service quality or profitability, or simply completing a project on time. Goals are most effective when they are specific, measurable, achievable, relevant and time-bound (SMART). For example, a goal of delivering reports within seven days of instruction is SMART whereas one that requires reports 'as quickly as possible' is not; the former is measurable and will be far more effective than the latter when considering whether the business has achieved its goals or not.

Horizons: businesses should plan to short-, medium- and long-term horizons, as their goals will apply not only to tomorrow but to longer periods as well – for instance, five to ten years. Planning over these different time horizons will help to keep a business on track and ensure that it is not just focusing on short-term gain – which often results in long-term pain.

Investment: at some stage in its journey, a business will need investment to grow. This could be financial, in the form of a loan or equity finance from a creditor, or it could be investment in training, service development or resourcing, such as hiring more staff or buying better equipment. Planning will identify the investment needs of a business and help develop a strategy to fund and resource these appropriately over the correct time horizon.

Joint ownership: most businesses will be jointly owned, with directors, shareholders or partners – depending on the business type – having a variety of views and goals. Being able to balance the needs of these joint owners will be key to success: a business that is being pulled in more than one direction or facing volatile management and leadership is unlikely to be successful. Having a clearly written plan that aligns the owners' interests to the goals and strategy of the business is therefore essential.

Key performance indicators (KPIs): these are quantifiable measures of performance over time for a specific objective, such as delivering reports within seven days or achieving a certain level of sales per department. Measuring KPIs consistently helps a business to track progress and identify trends, or to put plans in place where the indicators are not met. They can also keep a business focused on the right goals and avoid it becoming side-tracked. KPIs are typically monitored in a monthly report using a bespoke spreadsheet or database, shared with key staff.

'As business planning can be akin to gazing into a crystal ball, it is often impossible to predict accurately. Using a variety of business planning tools and accurate, up-to-date data will help you make forecasting as useful as possible'

Liquidity: this is a measure of how quickly a business can convert assets into cash, thus being able to meet short-term financial obligations. Lacking liquidity can be a problem when payments such as VAT or tax are due. However, holding too much money in liquid sources such as cash can limit a business's capital growth. In contrast, investing in property can make funds particularly illiquid – although this might be a good strategy for capital growth and supporting business strategy.

Market research: this is essential for a business, whether it is at the start-up stage or more mature, to understand the market in which it operates and its trends, as well as potential threats and opportunities. Market research is not just something to do once; it is a continuous process because markets are dynamic, and changes to interest rates, tax or competitors, for example, may dramatically affect business strategy. Any research completed should be summarised in the business plan, and the source documents kept on file for future reference.

Net profit: there is a popular saying that turnover is vanity, profit is sanity and cash is reality. Business health is important to consider when planning ahead and a key measure of this is net profit, also known as the bottom line. This is calculated by deducting operating, interest and tax expenses from growth profit. Net profit gives a good indication of business health and available funds, whereas turnover can mask the actual cost of operations: knowing both figures is essential to robust business planning.

Objectives: when planning, it is essential to align a business's goals with its wider corporate objectives. These are usually developed from the mission statement and set by those at the top of an organisation. Departmental-level objectives can be developed from the main corporate ones, and this helps to align the organisation's work. If a business strategy does not support these objectives, you could question whether it is the right strategy for the business.

Political, economic, sociological, technological, legal and environmental (PESTLE): this is another form of business analysis, based on the six named external factors. A business can consider these to assess the context in which it is operating for planning purposes. For example, what wider economic factors are affecting business performance? What technological innovations might help make the business more effective? And what environmental concerns does the business need to consider?

'Planning will identify the investment needs of a business and help develop a strategy to fund and resource these appropriately over the correct time horizon'

Quantitative and qualitative: business analysis tools can be both quantitative and qualitative. The former are based on facts and figures, whereas the latter use non-numerical data such as opinions or statements. Combining these forms of data can inform more robust business planning: for example, measuring performance data from a variety of sources and then discussing this with the staff or management involved to better understand their thinking.

Ratios: measuring financial ratios, such as working capital, debt and equity, profit margin and current ratio, can help to analyse a business's performance and inform planning. Using these ratios helps when trying to understand how efficient a business is, either by comparing past and present performance or its own performance with the ratios of competitors. These ratios could be included in the financial analysis section of a business plan.

Structure: understanding the structure of an organisation is key to successful business planning. There are various possible business structures, such as vertical, vertical and horizontal – or matrix – and open-boundary. A vertical structure could be functional, with a president at the top and roles such as head of HR and head of finance immediately beneath them. A vertical structure could also be divisional, with divisions beneath the president then split under various heads. Matrix structures have dual command, with employees reporting to two managers: say, one who is head of HR and another who is head of a division. Finally, open-boundary structures are varied and flexible, with connections where they are most effective between teams. There are many other types of organisational structure, though, and you should be sure you are able to explain how your firm operates.

Types of business plan: these include corporate, or top-level; departmental, at a lower level; strategic, with a specific function or service and a longer-term horizon; and operational, concerning how things work on a day-to-day basis. A business may therefore have more than one business plan: it is likely to have an overall corporate plan and then separate lower-level plans for departments, teams or specific services. The lower-level plans should align to the wider corporate business plan, however.

Unique selling point (USP): a USP helps define a business and the way it differentiates itself in the market. This should be included in the business plan, marketing campaigns and in the values set out by the business. Some firms may focus on a high-priced, high-quality product, while others may focus on low-cost, volume services, for example.

Variability: a business's fortunes and prospects will vary from year to year and with business cycles. It is vital, therefore, to monitor and update the business plan on an ongoing basis to help a business remain stable and avoid too variable a performance. All businesses will not only experience but also require change. However, if this can be planned and managed well, a business can remain profitable and efficient.

Working capital: this represents the funds available for a business to meet its current, short-term obligations. The amount of working capital required is calculated by dividing current assets by current liabilities, with the ideal ratio being between 1.5 and 2. This would suggest that a business is healthy and can meet its obligations in the short term.

X-ray: taking an X-ray approach means exploring all data about a business, speaking with relevant personnel and leaving no stone unturned. This will help to ensure that business plans are relevant and offer the best chance of success. While no one can predict the future, having good data available will still help you to manage change when required.

Year-end: knowing when a company's financial year ends can help when business planning, including managing tax payments and staff bonuses. Its year-end may differ to the end of the tax year, which falls on 5 April. Business plans may run on the company year-end, the tax year-end or on calendar years, depending on when a business was registered. Tax advice should be sought on whether staggering year ends may be beneficial, but this will depend on the specific circumstances.

Zenith: the Oxford English Dictionary defines this as 'the time or period at which something is at its best, most successful [or] most powerful'. A plan will help a business to project itself towards its zenith, and aiming realistically high will give it the best chance of reaching this point.

As an example of the aspects of business planning discussed in this article, all candidates should read and be familiar with the current RICS Business Plan . This includes the organisation's corporate objectives, market plans, risks and strategy for the years ahead.

'All businesses will not only experience but also require change. However, if this can be planned and managed well, a business can remain profitable and efficient'

Jen Lemen FRICS is co-founder of Property Elite Contact Jen: Email

Related competencies include : Business planning

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APC Support and mentoring

Rics apc – business planning.

Posted on June 23, 2018 Updated on June 23, 2018

Introduction.

Business Planning is a mandatory competency that APC candidates from all pathways need to achieve at Level 1.

Candidates from the Art & Antiques pathway may elect to take this competency to Level 2 or 3 as part of their optional selection.

Business Planning is a Core Competency at Level 3 for the Management Consultancy pathway.

Please note that the requirements at Level 1 when taken as a Technical Competency within the aforementioned pathways are slightly different from the requirements as a Mandatory Competency. You should refer to your specific Pathway Guide for more details.

What is it about?

The official RICS definition is:

Level 1 = ‘ Demonstrate knowledge and understanding of how business planning activities contribute to the achievement of corporate objectives’.

It includes several topics:

• Legislation and principles of law – See Pg. 33 of the RICS Practice Management Guidelines
• Types and essential elements of Business Plans
• Short term / long term strategies
• Market analysis (SWOT / PEST)
• Organisational structures / Staffing levels – recruitment / turnover
• Business support services – administration, secretarial, HR, IT etc.

Most APC candidates will have come across the key concepts of Business Planning – knowingly or not – at some point during their graduate studies. Some of the largest employers may also offer on-line management training modules. Alternatively nothing stops you from picking up a basic book on business management to brush on your knowledge in strategy, organisational structures, market analysis, etc

I also strongly recommend you to read the  RICS Practice Management Guidelines   to understand how business planning is relevant to surveyors. It has now been withdrawn but we have saved a copy for you!

Those working in the largest companies may recognise some of the tools used by their employers and gain an understanding of why those are in place. Those working in small practices or as self-employed may find very useful advice to grow their business acumen.

Potential APC Questions

Due to time constraints, assessors will only have time to ask you a few questions on Business Planning. As a minimum they will expect you to know what a business plan is, be familiar with your company’s business plan and business model, and understand how you can contribute to the achievement of your company’s corporate objectives.

If you are applying under the Senior Professional Route (SPA), assessors will expect you to have a detailed understanding of the development and implementation of your company’ s business plan.

Some very classic questions would be;

• What is a business plan? What do you find in a business plan?
• Can you tell us about your company’s current business plan?
• What is your company’s management structure / business model?
• What are your company’s values?
• What tools does your company use to manage its business?
• How do you ensure that you contribute to the achievement of your company’s objectives / business plan?
• What is contained within an appointment document? What are your company’s terms of business?
• What is the relevance of a SWOT or PEST analysis to business planning?

Some points that you will have stated in your Summary of Experience may trigger some questions more specific to your experience and personal knowledge .

For example you may state in your Summary of Experience that you have studied Porter’s Five Forces Model, SWOT analysis and PEST analysis as part of a business module at University. This may lead the APC assessors to ask you to explain what they are and to give an example specific to your company.

Business Planning is a crucial competency for those considering setting up their own practice or progressing to a management role after attainment of the MRICS status. I therefore recommend that you do not neglect it, both for your APC and future career development.

Familiarise yourself with your company’s business plan and its management structure and tools. Consider how you personally contribute to achieving its objectives (‘achievement of corporate objectives’ is contained within the definition of this competency). This may be by completing your timesheets and expenses in a timely manner or assessing your own competences and planning your CPD’s to acquire the relevant skills.

Make sure that you understand how to prepare a business plan and what it should look like.

All our past APC candidates will give you the same advice: do not underestimate the time required to revise (learn?) for your APC! It will easily take you 3 months of solid studying every evening.

To make this task a little easier, APC Support Ltd offer on-demand revision webinars covering all the technical and mandatory competencies in Quantity Surveying, Built Infrastructure, Building Surveying, Building Control, Project Management and Facilities Management.

Alternatively, we offer face-to-face training for corporate clients across the UK. Please e-mail us at [email protected] to discuss your requirements.

All the modules are recorded and will provide you with over 30 hours of formal CPD. You can attend them on a pay-as-you-go basis or subscribe to our unlimited revision package .

Best of luck!

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This entry was posted in Mandatory Competencies , Uncategorized and tagged APC , business planning , coaching , Experience , Mandatory competencies , mentoring , Record of Experience , RICS , Summary of Experience , support , tips .

• RICS APC – Accounting Principles and Procedures
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Business Planning - Part I

This blogpost tackles legislations like the Companies Act 2006, which is crucial for RICS APC candidates navigating business planning. With examples like AECOM's PLC status, candidates grasp the implications of business structures. SMART objectives and real-world insights drive effective strategies, ensuring candidates chart a path to professional success.

AREAS OF COMPETENCE - MANDATORY

Mohamed Ashour

2/26/2024 11 min read

Business Planning for RICS APC Candidates – Part I

A guide to help you prepare for the business planning competency in the RICS APC assessment.

1        Introduction

Business planning is a cornerstone of success for professionals seeking chartered status in the Royal Institution of Chartered Surveyors (RICS). Whether you're embarking on the Assessment of Professional Competence (APC) journey or seeking to refine your business acumen, understanding the intricacies of business planning is essential. This blog post serves as a comprehensive guide for RICS APC candidates, exploring vital components such as legislation, types of business structures, strategic planning, market analysis, and more. By delving into real-life examples and referencing RICS guidance notes alongside UK laws, we aim to equip aspiring chartered surveyors with the knowledge and insights necessary to navigate the complexities of business planning effectively.

This blogpost covers the following titles:

Legislation

Types of business – Partnerships, Limited companies, Limited Liability Partnerships (LLP)

Short/long term strategies

Market Analysis

Five Year Plans

Objectives – markets, clients, turnover, staffing, acquisitions

2        Legislation

As a construction professional, you need to be aware of the legal framework that affects your business and your clients. This includes the laws and regulations that govern the formation, operation, and dissolution of different types of business entities, as well as the rights and obligations of the parties involved. You also need to understand the implications of taxation, employment, health and safety, environmental, and contractual issues on your business planning.

Some of the key legislation that you need to know for the RICS APC assessment are:

The Companies Act 2006, which sets out the rules and procedures for forming, running, and closing a company in the UK.

The Partnership Act 1890, which defines the general principles and duties of a partnership, a type of business where two or more people share the profits and liabilities.

The Limited Liability Partnerships Act 2000, which creates a hybrid form of business that combines the features of a partnership and a company, allowing the partners to limit their personal liability.

The Income Tax Act 2007, the Corporation Tax Act 2010, and the Value Added Tax Act 1994, which regulate the taxation of income, profits, and sales of goods and services for different types of business.

The Employment Rights Act 1996, the Equality Act 2010, and the Health and Safety at Work etc. Act 1974, which protect the rights and welfare of employees and employers in the workplace.

The Environmental Protection Act 1990, the Climate Change Act 2008, and the Planning Act 2008, which aim to prevent and reduce the environmental impact of business activities and development projects.

The Contracts (Rights of Third Parties) Act 1999, the Unfair Contract Terms Act 1977, and the Consumer Rights Act 2015, which govern the formation, enforcement, and interpretation of contracts between businesses and their clients, suppliers, and contractors. [1], [2]

3        Types of business

Another important aspect of business planning is choosing the most suitable type of business entity for your objectives and circumstances. There are various types of business entities in the UK, each with its own advantages and disadvantages in terms of legal status, liability, ownership, control, taxation, and administration. You need to consider the pros and cons of each type of business and how they align with your vision, mission, values, and goals.

Some of the common types of business entities that you need to know for the RICS APC assessment are:

Partnerships, where two or more people agree to share the profits and liabilities of a business. There are different types of partnerships, such as general partnerships, limited partnerships, and limited liability partnerships (LLP). Partnerships are easy to set up and run, but the partners are personally liable for the debts and obligations of the business, unless they are limited partners or members of an LLP.

Limited companies, where the business is a separate legal entity from its owners, who are called shareholders. There are different types of limited companies, such as private limited companies (LTD) and public limited companies (PLC). Limited companies have limited liability, meaning that the shareholders are only liable for the amount they invested in the company. However, limited companies are more complex and costly to form and operate, and they have to comply with more rules and regulations.

Limited liability partnerships (LLP), where the business is a separate legal entity from its members, who are similar to partners in a partnership. LLPs combine the benefits of limited liability and the flexibility of partnerships, allowing the members to manage the business and share the profits as they agree. However, LLPs are also more complex and costly to form and operate than partnerships, and they have to disclose more information to the public. [1], [3]

AECOM, a global engineering and consulting firm, is an example of a public limited company (PLC) in the UK. It has over 50,000 shareholders and its shares are traded on the New York Stock Exchange. It has to publish its annual reports and accounts, and it is subject to the rules and regulations of the UK Companies Act 2006 and the US Securities and Exchange Commission. [4]

Buro Happold, a multidisciplinary engineering and design consultancy, is an example of a limited liability partnership (LLP) in the UK. It has over 1,500 members who are also employees of the firm. It has to register with Companies House and file its annual accounts and confirmation statement, but it does not have to disclose its profit and loss account or the names and remuneration of its members. [5]

Davis Langdon, a quantity surveying and project management consultancy, was an example of a partnership in the UK until it merged with AECOM in 2010. It had over 200 partners who were jointly and severally liable for the debts and obligations of the firm. It did not have to register with Companies House or file any accounts, but it had to pay income tax and national insurance on its profits. [6]

4        Short/long term strategies

Another important aspect of business planning is developing and implementing short and long term strategies to achieve your objectives. Short term strategies are the actions and tactics that you take in the next 12 months to improve your performance and position in the market. Long term strategies are the plans and policies that you adopt in the next 3 to 5 years to grow your business and create a competitive advantage.

You need to consider the internal and external factors that affect your business, such as your strengths, weaknesses, opportunities, and threats (SWOT analysis), and your vision, mission, values, and goals (VMVG analysis). You also need to monitor and evaluate your progress and performance, and adjust your strategies accordingly.

Some of the key elements of short and long term strategies that you need to know for the RICS APC assessment are:

Marketing strategy, which involves identifying and targeting your potential and existing customers, and communicating and delivering your value proposition to them. You need to consider the 4 Ps of marketing: product, price, place, and promotion.

Financial strategy, which involves managing your income and expenditure, and ensuring your profitability and sustainability. You need to consider your sources of revenue, your costs and overheads, your cash flow and working capital, and your budget and forecast.

Operational strategy, which involves organising and optimising your resources and processes, and ensuring your quality and efficiency. You need to consider your human resources, your physical assets, your technology and systems, and your standards and procedures.

Growth strategy, which involves expanding and diversifying your products and services, and increasing your market share and penetration. You need to consider the options of market development, product development, market penetration, and diversification. [1], [7]

A marketing strategy for a small architectural practice in the UK could be to focus on a niche market of sustainable and low-energy design, and to promote its services through online platforms, such as websites, blogs, and social media. The practice could also network with potential clients and partners, and participate in industry events and awards.

A financial strategy for a medium-sized civil engineering consultancy in the UK could be to diversify its income streams by offering a range of services, such as design, project management, and supervision. The consultancy could also reduce its costs and overheads by outsourcing some of its functions, such as accounting and IT. The consultancy could also improve its cash flow and working capital by negotiating favourable payment terms with its clients and suppliers.

An operational strategy for a large construction contractor in the UK could be to invest in its human resources by providing training and development opportunities, and rewarding and retaining its staff. The contractor could also improve its physical assets by upgrading its equipment and vehicles, and implementing preventive maintenance. The contractor could also enhance its technology and systems by adopting digital tools, such as BIM, and automating some of its processes. The contractor could also maintain its standards and procedures by following the best practices and regulations of the industry.

A growth strategy for a regional surveying firm in the UK could be to expand its market by entering new geographical areas, such as Scotland and Wales, and new sectors, such as infrastructure and energy. The firm could also develop its products by introducing new services, such as valuation and arbitration. The firm could also increase its market penetration by acquiring or merging with other firms, or forming strategic alliances and joint ventures. The firm could also diversify its products by offering complementary services, such as legal and financial advice.

5        Five Year Plans

A five year plan is a document that outlines your vision, mission, values, and objectives for the next five years, and how you intend to achieve them. It is a useful tool to communicate your direction and priorities to your clients, colleagues, and stakeholders, and to measure your progress and performance. A five year plan should be realistic, flexible, and adaptable to changing circumstances, and should align with the RICS standards and expectations.

According to the RICS guidance note on business planning (RICS, 2017), a five year plan should include the following elements:

A vision statement that describes your desired future state and purpose

A mission statement that defines your core activities and values

A set of SMART (specific, measurable, achievable, relevant, and time-bound) objectives that support your vision and mission

A strategy that outlines the actions, resources, and timelines required to achieve your objectives

A risk register that identifies and assesses the potential threats and opportunities that may affect your plan, and the mitigation and contingency measures to deal with them

A review and evaluation process that monitors and reports on your progress and performance, and allows you to adjust your plan as needed. [8], [9]

An example of a five year plan for a construction project manager could be:

Vision: To be a leading provider of high-quality, sustainable, and innovative construction solutions in the UK and abroad

Mission: To deliver projects that exceed client expectations, enhance the built environment, and create value for society

Objectives:

To increase annual turnover by 10% each year

To expand into new markets and sectors, such as renewable energy and social housing

To achieve a 90% client satisfaction rate and repeat business

To reduce environmental impact and carbon footprint by 20% by 2025

To attract and retain the best talent and develop a diverse and inclusive workforce

To maintain the highest standards of health and safety, quality, and ethics

To invest in research and development, and adopt new technologies and methods

To establish partnerships and collaborations with local and international stakeholders

To implement a customer feedback and improvement system

To conduct regular audits and assessments of environmental performance and compliance

To offer competitive remuneration and benefits, and provide training and career development opportunities

To follow the RICS rules of conduct and professional ethics, and adhere to the relevant laws and regulations

Risk register:

Risk: Economic downturn or recession

Impact: Low demand, reduced income, increased costs

Likelihood: Medium

Mitigation: Diversify portfolio, seek alternative sources of funding, reduce overheads, negotiate contracts

Contingency: Seek financial assistance, restructure business, revise plan

Risk: Competition from other providers

Impact: Loss of market share, reduced reputation, lower margins

Likelihood: High

Mitigation: Differentiate services, enhance quality, increase value, build relationships

Contingency: Rebrand, merge, acquire, diversify

o    Risk: Project delays or failures

Impact: Dissatisfied clients, legal disputes, financial losses, reputational damage

Likelihood: Low

Mitigation: Plan and manage projects effectively, allocate sufficient resources, communicate clearly, manage expectations, resolve issues

Contingency: Apologise, compensate, learn, improve

o    Risk: Environmental or social issues

Impact: Negative environmental or social impacts, regulatory breaches, fines, sanctions, protests, boycotts

Mitigation: Assess and minimise environmental and social risks, comply with environmental and social standards and laws, engage with stakeholders, report and disclose performance

Contingency: Remediate, mitigate, compensate, restore, enhance

Risk: Staff turnover or shortage

Impact: Loss of skills, knowledge, and experience, reduced productivity, quality, and morale, increased recruitment and training costs

§   Likelihood: Medium

§   Mitigation: Recruit and retain staff, offer competitive remuneration and benefits, provide training and career development opportunities, foster a positive and inclusive culture

§   Contingency: Hire temporary or contract staff, outsource, reassign, reskill

Review and evaluation:

Set and track key performance indicators (KPIs) for each objective, such as turnover, market share, client satisfaction, environmental impact, staff retention, etc.

Conduct regular reviews and evaluations of progress and performance, using quantitative and qualitative data and feedback

Report and communicate results and achievements to stakeholders, such as clients, staff, investors, regulators, etc.

Identify and celebrate successes and best practices, and recognise and reward staff contributions

Identify and address gaps and challenges, and implement corrective and preventive actions

Review and update plan as needed, based on changing internal and external factors

6        Objectives – markets, clients, turnover, staffing, acquisitions

Objectives are the specific and measurable outcomes that you want to achieve with your business plan. They should be aligned with your vision and mission, and support your strategic goals. Objectives should also be SMART, meaning that they should be specific, measurable, achievable, relevant, and time-bound. SMART objectives help you to focus your efforts, monitor your progress, and evaluate your performance.

Some of the common objectives that construction professionals may have for their business plan are related to markets, clients, turnover, staffing, and acquisitions. These objectives can be defined as follows:

Markets: The sectors, regions, or countries that you want to operate in or enter, such as residential, commercial, industrial, public, or international markets

Clients: The types, numbers, or segments of customers that you want to serve or attract, such as private, public, or corporate clients, or niche or mass markets

Turnover: The amount of money that you want to generate from your business activities, such as sales, fees, or contracts

Staffing: The number, skills, or roles of employees that you want to have or hire for your business, such as managers, engineers, surveyors, or technicians

Acquisitions: The assets, resources, or businesses that you want to buy or merge with, such as land, equipment, technology, or competitors [8]. [10]

An example of SMART objectives for each of these categories could be:

Markets: To expand into the renewable energy sector in the UK by 2022, and to enter the European market by 2025

Clients: To increase the number of public sector clients by 20% by 2021, and to achieve a 90% client satisfaction and retention rate by 2023

Turnover: To increase annual turnover by 10% each year, and to reach £10 million by 2024

Staffing: To recruit 10 new engineers and surveyors with relevant qualifications and experience by 2020, and to provide training and development opportunities for all staff annually

Acquisitions: To acquire a small competitor in the social housing sector by 2021, and to invest in new technology and equipment by 2022

7        Conclusion

In conclusion, mastering the art of business planning is paramount for RICS APC candidates aspiring to excel in their careers. By adhering to legislative requirements, understanding various business structures, crafting robust short and long-term strategies, conducting thorough market analyses, and setting clear objectives, candidates can lay the groundwork for sustainable success. Real-life examples illustrate the practical application of these concepts, emphasizing the importance of integrating RICS guidance notes and UK laws into business planning endeavors. As future chartered surveyors, proficiency in areas such as resourcing, SWOT analysis, human resources management, data management, administration, health and safety, and equality will not only enhance professional competence but also contribute to the advancement of the profession as a whole. By embracing the principles outlined in this blog post, RICS APC candidates can confidently navigate the intricacies of business planning, setting themselves on a trajectory towards fulfilling and impactful careers in the field of surveying.

8        References

RICS (2019). Business planning. Guidance note, 1st edition. Available at: https://www.rics.org/globalassets/rics-website/media/upholding-professional-standards/sector-standards/construction/business-planning-1st-edition-rics.pdf

Legislation.gov.uk. Available at: https://www.legislation.gov.uk/

Gov.uk. Set up a business. Available at: https://www.gov.uk/set-up-business

AECOM. About us. Available at: https://aecom.com/about-us/

Buro Happold. About us. Available at: https://www.burohappold.com/about-us/

Davis Langdon. History. Available at: https://web.archive.org/web/20100707055738/http://www.davislangdon.com/Global/AboutUs/History/

Gov.uk. Write a business plan. Available at: https://www.gov.uk/write-business-plan

RICS (2017). Business planning. 1st edition. RICS guidance note. London: RICS.

UK Government (2020). Business and self-employed. Available at: https://www.gov.uk/browse/business (Accessed: 15 October 2020).

SMART (2020). SMART objectives. Available at: https://www.smart- objectives.co.uk/ (Accessed: 15 October 2020).

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