ARE YOU THE BOSS?

are you the boss?: Programs

Steps to run a business

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Companies Interviewed

1.0 SETTING UP AN OFFICE

2.0 FINANCE

3.0 PREMISES AND EQUIPMENT

4.0 MARKETING

5.0 STAFF MANAGEMENT

6.0 RISK MANAGEMENT

1.0 SETTING UP AN OFFICE

A business plan serves as a road-map that provides direction to the business.

It describes the nature of the business, background information on the company, financial projections, and the strategies to achieve the stated targets.

Business plans may be internally or externally focused. Externally-focused plans draft goals that are important to outside stakeholders, particularly financial stakeholders.

Statement of the objectives of the practice
- is a formal written document containing the short-term & long-term goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals.
Methods of management for organizing the practice
- Roles of the principals (working or overhead)
- Staffing levels - current and intended
- Workload - current status & booked sales for the next year/target sales
Financial status and profitability
- Budgeting and funding requirements
- Written business plans are often required \ to obtain a bank loan or other kind of financing
- It could build a convincing case for the company's ability to repay the loan.

2.0 FINANCE

Public Voting Questions

If you are going to start a company, which of the following methods will you choose to secure your initial capital?

A. Use your own personal saving

B. Find an investment partner/company

C. Have a full time/part-time teaching job in a university

D. Request loan from a bank

E. Win a competition and get its prize money

A new practice is almost certain to need cash for its establishment costs, including premises, equipment, etc., and ongoing costs, including salaries, lease, and other running costs, as income is unlikely to flow for some months. This cash can come from a variety of sources:

The partners’/directors’ own money (self-funding)
Borrowings usually from other sources e.g. bank
Personal saving

It is common for the initial costs of establishing the practice to be secured from a combination of these. Once a loan/overdraft facility has been agreed the new practice will need to open a bank account(s), usually with the lending bank.

You need careful planning and realistic budgeting. For things to be started, considering:

The initial capital required;
The relation between turnover and profitability;
Payback period;
Assets and liabilities;
Factors that may affect financial position (e.g. turnover, rent, profit, margin, expenditures, inventory and credit period, etc.)

It is also recommended to:

Forecasting the coming 12 months budget
Being alerted to any financial risk from both internally and externally

Directors or partners are there to manage the business, market the practice and get work in the door
- will not be undertaking design work
- More involved in overseeing design work or undertaking high-level concept design

When a project has been won by the practice
- based on the practice program and who is best placed to undertake the work in terms of skills and availability
up to the assigned manager or senior landscape architect to complete the work within the program, budget, and to the client's satisfaction and preferably with the agreed profit margin
Staff time is recorded on a timesheet basis

3.0 PREMISES AND EQUIPMENT

Public Voting Questions

Do you think a physical workspace is necessary for a landscape firm?

A. Yes

B. No

Premises generally refer to the physical location for the daily operation of your business

Studio and offices
Office location - accessibility to clients/address
Physical size/requirements and facilities
Suitable working conditions
Health and Safety
- Occupational Safety and Health Ordinance (Ch 509)
- Occupational Safety and Health Regulations
- Factories & Industrial Undertakings Ordinance (Ch 59)

Hardware and software equipment are listed below:

Furniture
Stationery & Drafting Equipments
Computers
- Servers/networks - back up, sharing, and storage
- Software licences - word processing/ accounting / drafting (AutoCAD & MicroStation) / graphics
- Internet and e-mail/plotters and printers
Technical Library
- Books/magazines (subscriptions)
- Products library
- Technical guidelines / statutory rules & regulations
- Design standards - BS / ASTM etc
- Standard Forms
- Referencing systems - LI system
- Circulation and use

The Internet / Intranets / Extranets
BIM (Building Information Modelling or Management)
Drawing Office Standards / Manual

the process of generating and managing building data during its design, construction and during the building or assets life cycle

Why use BIM:

1. Creation of Working Drawings
2. Share the models with the Construction team
3. Use Visual Tools
4. Ensure the design team members are modelling to the correct standard for the appropriate stage of the project

set up by each firm to allow a more cohesive and readable set of drawings
contribute to a better workflow
- Consistency
- Templates
- Drafter’s Understanding
- Plotting
- Time Saver
- Makes Training Easier
- Conversion of Standards Between Firms is Easier
- Technical Office Procedures

Public Voting Questions

What kind of platform would be most favorable for ideas exchange and collaborative working to you?

A. Physical office

B. Online conference e.g. Microsoft Team

C. Digital text or messages e.g. emails, Whatsapp, etc.

4.0 MARKETING

Public Voting Questions

If you are setting up a firm, which marketing strategies would you use?

A. Repeating Client

B. Networking

C. Promotion on Social Media

D. Building Portfolio

gather information about target markets and customers
- identify and analyze the needs of the market, the market size, and the competition
- Identifying main competitors in the current market
- Target client (Government, Real estate agent, Private client etc...)

Analyze and set your market position/competitive edge (specialist skills and market niche)
- SWOT analysis: analysis of the Strengths, Weaknesses, Opportunities and Threats to the company

Public Voting Questions

Which of the following is NOT an appropriate way of managing client relationship:

A. Sending seasonal greetings

B. Meet up with client even not currently working with them

C. Update the client with company information

D. Ignore client request

Potential clients can be reached by marketing. Preparing promotional material will be vital to this and will take time to develop if you are a new practice.

Set up website
Project portfolio, staff CVs and business cards
Joining competition
Application for awards and design prizes
Becoming a member of professional institutes

5.0 STAFF MANAGEMENT

Handling company personnel changes, assisting company-related personnel information inquiries
Labor and health insurance, processing employee leave, late arrivals, overtime, salary, income tax, new employees or resigned employees
Preservation of company personnel documents, various personnel, and administration support

Implement pre-employment and on the job training for employees
Plan learning courses, research, review and provide employee career development
Create a learning organization, and allow employees to learn and train to improve work quality and efficiency

Select through interviews, the goal of effective recruitment is to match the personal characteristics (Experience, Technical, Communication skills etc.) to recruit talent

Public Voting Questions

Do you think you are ready for work?

A. Yes, i am ready

B. Not yet, until my graduation

C. Never thought of that

6.0 RISK MANAGEMENT

Risk Identification
Risk Management Strategies
Common Risk to Practice

To identify the hazard, the chance of loss, or injury as a result of the threat of, or an actual claim against the practice, arise from alleged negligence
Weighing the importance of its components against all the activities of the total enterprise
Ranking the risks
Developing and manage the strategies

Managing risk in practice:

Identify risk and assess those risks in a matrix format
- Severity of impact
- Likelihood of occurrence
Identify the highest risk categories

Potential risk:

Risk Profiles of the profession
Inter-professional risk
Check accounts at the companies register
Client references/ testimonials from other consultants
Check credit rating systems
Planning for risk management,

Marketing strategies adopted should be revised and updated regularly

Strategies do not solely rely on the single market sector
Ensure the staff are familiarized with those strategies and their corresponding knowledge and skills acquired in training has shared among several numbers of staffs
Keep contact with the recruitment agencies and an updated job recruitment files

Public Voting Questions

What are the most common risks found in practice?

A. Leakage of projects’ drawings

B. Liability related to delayed project program
(due to the Green ratio, Tree Preservation didn’t get approval in time)

C. Resignation/ Pregnant leave of staff

D. Cashflow

Company Perspective

Professional indemnity insurance
e.g. the client of the company suffers a severe financial loss and files a claim for compensation against the construction firm.
In this case, a Professional Indemnity Insurance policy would normally provide coverage for the costs of the legal defense, and the liability of the construction company towards their customer's financial loss.

Employee’s Perspective:

Employees compensation insurance (mandatory)
Third-party insurance
Medical insurance (Not legally mandatory)

For Government’s Submission

Greening Ratio requirements
Tree Preservation and Tree Removal applications should be acquired in advance

Resignation of staffs

Ensure the project duty and skill set or client liaison is not solely rely on one individual member

Cash Flow

Clear invoicing structure
Be aware of the tax systems in different countries

7.0 EXPERIENCE SHARING SESSION