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RICS APC Competency

Business Planning — RICS APC Competency Revision Guide

The RICS APC business planning competency requires candidates to understand how professional surveying businesses and project organisations set objectives, allocate resources, manage risk, and measure performance. It is mandatory on most commercial and management-focused pathways. Assessors expect you to move beyond textbook definitions and demonstrate that you can contribute to or critically evaluate a real business plan — covering market analysis, financial forecasting, risk assessment, and key performance indicators. This competency frequently overlaps with accounting principles, client care, and ethics, so integrated thinking is rewarded.

21 articles in this competency · Browse with filters on the main library

What the RICS APC expects at each level

L1 Knowledge

At Level 1, you need to understand the core components of a business plan: mission and objectives, market analysis (including tools such as SWOT and PESTLE), operational planning, financial projections, and risk registers. You should know what a profit and loss forecast is, how cash flow differs from profitability, and why a business might produce separate capital and revenue budgets. Understanding the purpose of KPIs and how they are set in a surveying practice context is also required.

L2 Application

Level 2 evidence comes from participating in, or contributing to, actual business planning activity. Diary examples might include preparing a fee forecast for a new instruction, contributing to a department budget review, carrying out a market analysis for a proposed service expansion, or helping to assess the commercial viability of a new office location. You should be able to describe the planning cycle used in your organisation and explain how decisions were informed by data.

L3 Reasoned advice

Level 3 requires you to give reasoned advice on business planning matters. An assessor might ask you to evaluate a business plan that shows ambitious revenue growth but weak cost controls, or to advise a client business on whether their expansion strategy is financially sound. You need to identify risks that are not explicitly flagged, apply relevant analytical frameworks, and communicate your conclusions clearly — including where the plan requires revision before you could recommend it.

Level 1 — Knowledge & Understanding articles

Foundational articles on Business Planning. These cover the principles, definitions and documents assessors expect a Level 1 candidate to know.

MEMBERS L1

Accounting Techniques and Examples for a Surveying Practice

RICS surveyors utilise various accounting techniques to manage their finances effectively and meet specific industry requirements. Here...

2 min readPreview →
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Balancing The Cost and Value of Resources

As a business manager, striking the right balance between the cost and value of resources is critical for achieving organisational...

2 min readPreview →
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Business Forecasting for an RICS Firm

Several business forecasting methods can be applied to RICS businesses, depending on the specific area of focus and desired scope. Here...

2 min readPreview →
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Conducting a SWOT and PESTLE Analysis for a Surveying Practice

Strategic analysis tools such as SWOT and PESTLE are not just management-school exercises — they are the backbone of any credible business plan. At R…

3 min readPreview →
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Effective Organisational Design and Communication Strategies for RICS Businesses

Building a successful RICS business requires thoughtful organisational design and effective communication practices that foster...

2 min readPreview →
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Example Business Plan for an RICS Surveying Business

Executive Summary: [Your Business Name] is a newly established RICS-accredited surveying firm seeking to provide comprehensive and...

2 min readPreview →
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Examples of SMART Business Objectives

SMART Business Objectives for Typical RICS Businesses: 1. Increase Market Share: Specific: Increase market share in the residential...

2 min readPreview →
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Financial Benchmarking Methods for Businesses

Financial benchmarking compares your company's financial performance to others within your industry or size category. It helps you...

2 min readPreview →
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Forecasting Techniques When Managing a Business

When managing a surveying business, accurate forecasting is key to making informed decisions about resource allocation, staffing, marketi...

2 min readPreview →
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Key Business/Accounting Terms

Relevant terms for RICS surveying businesses: Working Capital: The difference between a company's current assets...

1 min readPreview →
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Leading Through Change: Managing a Team Through Organisational Transition

Change is an increasingly routine feature of professional life for surveyors. Mergers, restructures, new compliance regimes and technology transition…

4 min readPreview →
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Obtaining Resources and Monitoring Their Use

A business manager has a responsibility to obtain and effectively manage resources to ensure the smooth operation and success of their...

2 min readPreview →
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Organisational Structures in a Business

The organisational structure of a business refers to the framework that defines how employees are organised and how work flows within the...

2 min readPreview →
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Personal Resource Management

As a business manager, effective personal resource management is crucial for maintaining peak performance, avoiding burnout, and...

2 min readPreview →
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Planning to Meet Business Objectives

An RICS business plan plays a crucial role in aligning and achieving corporate objectives. Here are some key ways how an RICS business...

2 min readPreview →
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Preparing Reports and Recommendations To Optimise Resources

Preparing Reports and Recommendations To Optimise Resources

2 min readPreview →
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Procurement Strategies and Supply Chain Management for Surveying Practices

Procurement sits at the heart of Managing Resources: every pound a surveying practice spends on materials, software, sub-consultants, or support serv…

4 min readPreview →
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Setting Personal Objectives

Here are some examples of personal objectives a manager of a project management consultancy might set for themselves: Professional Skills...

2 min readPreview →
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Types of Business Plans

In the context of an RICS surveying business, different types of business plans serve distinct purposes and should be tailored to...

2 min readPreview →
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Types of Resource Required to Run a Business

In addition to human resources, a successful RICS business relies on a range of resources to operate effectively and deliver high-quality...

2 min readPreview →
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What is a Business Plan?

A business plan is a formal document that outlines the future goals and strategies of a business. It serves as a roadmap for guiding your...

2 min readPreview →

Frequently asked questions

What does RICS expect candidates to know about business planning at Level 1?

At Level 1, RICS expects you to understand the structure and purpose of a business plan — objectives, market analysis, financial forecasting, operational planning, and risk identification. You should be familiar with tools such as SWOT and PESTLE analysis, understand what KPIs are and why they matter, and know the difference between a cash flow forecast and a profit forecast. You do not need MBA-level strategy knowledge, but you must be able to discuss these concepts fluently.

How do I generate Level 2 evidence for the RICS business plan competency?

Look for opportunities within your current role to participate in budgeting, fee forecasting, or departmental planning processes. Even preparing a fee estimate for a significant instruction, or compiling market data to support a new service line, counts as applied experience. Document what you did, what data you used, what the outcome was, and what you learnt. Assessors want specific examples, not generalisations about your organisation's planning cycle.

How does RICS business planning relate to professional ethics?

Business planning decisions regularly intersect with ethics. Fee structures, client-acquisition strategies, and resource allocation all carry professional obligations — for instance, you must not plan to secure work through inducements or misrepresent your firm's capabilities. At Level 3, assessors may ask how you would handle a business plan that relies on aggressive fee-bidding that compromises service quality, and how that conflicts with your duties under the RICS Rules of Conduct 2022.

What KPIs are most relevant for a surveying practice business plan?

Common KPIs in surveying practice include fee income per head, utilisation rate (chargeable hours as a percentage of available hours), debtor days, write-off rate, and client-satisfaction scores. At Level 2 you should be able to calculate and interpret these. At Level 3 you should be able to identify when a KPI is being gamed or when a set of KPIs gives a misleadingly positive picture of performance.

A senior partner asks you to prepare a business plan for a new service line. The financial projections rely on three large client commitments that are not yet confirmed. How do you present this plan to the board?

You would present the plan with clearly labelled scenario analysis: a base case using only confirmed income, and an upside case showing the impact if those three clients are secured. The risks must be quantified and disclosed, not buried in assumptions. Presenting unconfirmed revenue as if it were certain would mislead the board and could lead to poor resource decisions. Your professional duty is to give honest, evidence-based advice even when that makes the plan look less attractive.

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