SUPPORTING NOTES

WHAT STAGES DOES THE LANDSCAPE STARTUP NEED TO COME ACROSS?

From a landscape firm’s perspective, the videos provide an example of the following issues:

• Planning ahead: business plan, market position, staffing level

• Finance: business funding, profit-loss budget, cash flow

• Office setup: office equipment acquisition, computer software & software setup, document storage & retrieval, safety working condition

• Hiring staff: staff hiring, resume review, staff rate, statutory holiday & overtime arrangement

• Staff insurance & contract: contract of employment, valid signature, medical insurance, staff travels & reimbursement

• Staff management: staff training, staff workload, staff records, discipline & termination

• Quality assurance:

• Year-end summary: year-end financial report

1. Business Plan

A business plan is a road map that provides direction to the business. Except what mentioned above. It also contains:

• Statement of the objectives of the practice

• Methods of management

• Roles of the principals (working or overhead)

• Market position - specialist skills and market niche

• Staffing levels - current and intended

• Workload - current status & booked sales for the next year (period) / target sales

• Financial status and profitability

• Budgeting and funding requirements

• Marketing strategy

• Planned growth

2. Finance

When considering Business Funding and  Financial Management, there are a few points to be aware of:

• Sources of Business Funding (Self-funding, Bank Loan and Shareholder)

• Good book-keeping (Profit and loss budget and Cash flow forecast)

• Regular monitoring of financial position - income and expenses

• Forecasting at least 12 months ahead

• Positive action to address problems

3. Office Setup

Basic setup consists of:

• Communication setup: contact number, official email address, business card

• Information management: document storage & retrieval, letter template, file naming format

• IT equipment & technical library subscription: computers & printers, drawing software licenses, photo library/ material library

• Office furniture, stationary & drafting equipment

The employer is generally responsible to comply with Cap 509. Occupational safety and health ordinance. Occasionally, they are required to follow the safety and health requirement in accordance with Cap 59 seb. leg. Factories and Industrial Undertakings Ordinance when the persons employed are in the factories or comply with the requirement in accordance with  Cap 59 seb. leg. Constructions Sites (Safety) Regulations when the persons employed are in construction sites.

4. Hiring

When you are hiring someone, it is important to understand the basic regulation listed on the Employment Ordinance. Here are the list of basic regulations:

• Employment Ordinance (Ch 57) – addresses staff statuary right and benefits

• Employees' Compensation Ordinance (Ch 282) – provides for compulsory insurance in relation to compensation for work injuries;

• Immigration Ordinance - prohibiting the employment of illegal immigrants in Hong Kong

• Employment of Children and Young Persons (Industry) Regulations

5. Staff Insurance & Contracts

The employment of staff (as opposed to consultants or contractors) radically changes the nature of a business and involves a business in a much greater degree of administration. Employment is controlled by the Hong Kong Labour Department through application of the following legislation.

STATUTORY RIGHTS OR PROFIT ON EMPLOYMENT CONTRACT

• Maternity leave

• Rest days

• Sickness allowance

• Annual leave

Keeping record are required by the employment ordinance.

Before signing the contract, you should know the types of liability that an employer takes on in practicing landscape architecture, expressed through the forms of insurance that have to / may be taken out.

INSURANCE TYPE FOR RUNNING BUSINESS:

• Employees compensation insurance (compulsory) - employer’s liability for protection of staff in office and on site

• Third party insurance (optional) - vicarious liability for the actions of your employees

• Medical insurance (optional) - employee medical benefits cover the health of your employees for conditions which are not work-related. While there is no legal obligation.

• Motor vehicle insurance (optional)

• Professional indemnity insurance (optional)  - against negligent actions of the firm

6. Staff Management

How to effectively lead staff management in the workplace so that your employees are happy and committed to the business?

It’s important to assign moderate workload and set time control to the staff.

Set out regular office meetings, no matter professional or technical, to discuss staff issues.

Proper training is necessary for ensuring the safety of employees and the professionalism of the company.

If an office owes money to an employee because of mistreatment, then this counts as a liability for the business. Slow or non-payment may become an issue of workers rights and ethics.

7. Quality Assurance

Quick facts about quality assurance:

• Not statutory required and beneficial to attract large clients

• 6 to 12 months to develop and implement a QA system before being certified by Certification by Accredited Quality Assurance Body (HKQAA)Setting out quality policies and procedures in a QA Manual

• Working procedures are implemented by the staff and monitored by quality assurance personnel

Pros:

• Improving discipline in the company’s procedures

• Improving consistency

• Attracting clients and improving efficiency by ‘client driven approach to quality’

Cons:

• Usually heavy manuals

• Time consuming especially on senior staff

• Expensive to develop, implement, get certified and maintain (~> $200,000 for initial certification

• Reduce the quality of the end product of design offices by stifling innovation and creativity

8. Year End Finance

Every year the firms have to submit profits tax return and any required supplementary forms and file to the Inland Revenue Department, they need to carefully manage their tax liability / tax avoidance, it will be calculated based on their profit and loss.

Q&A QUOTES & NOTES

01. Financial management mainly focuses on ...

A. Efficient management of every business

B. Brand dimension

C. Arrangement of funds

D. All elements of financial activities

Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise.  So it need all elements of acquiring and using means of financial resources for financial activities.

02. As a boss of a landscape consulting firm, which of the following sites should you make sure that they are safe for your workers ?

A. Office

B. Construction site of a project

C. The factory assembling materials used in a project

D. All of the above

The Occupational Safety and Health Ordinance is compulsory for employer. It provides for the safety and health protection to employees in workplaces. For instance, fire accident in Paul and Rae’s office under the fire precaution category of this ordinance.

Yet, you should also take note of Factories and Industrial Undertakings Ordinance and Constructions Sites (Safety) Regulations when the persons employed are in the factories and construction sites. That's why you should make sure they are ALL SAFE as the boss.

03. The following statement is TRUE / FALSE:

Part Time staff will be entitled to statutory holidays.

A. True

B. False

Employees, be they designated as full time, “part time”, casual or substitute employees, and irrespective of their working hours, are entitled to the following rights under the Ordinance:

• Wage payment protection

• Restriction on deductions from wages

• Statutory holidays

• Maternity protection (prohibition of assignment of heavy, hazardous or harmful work)

• Employment protection (unreasonable and unlawful dismissal)

• Provision of information on conditions of service by employers

• Protection against anti-union discrimination, etc

04. What is the hourly minimum wage of Hong Kong ?

A. $ 32.5

B. $ 35.5

C. $ 37.5

D. $ 38.5

05. Which insurance is covered by statutory regulation for the employees in HK ?

A. Third Party Insurance

B. Medical Insurance

C. Employees Compensation Insurance

According to the Employees Compensation Ordinance (Ch 282) - which provides for compulsory insurance in relation to compensation for work injuries, Employees Compensation insurance is statutory for employees in Hong Kong, which protect employees from accident in work time.

06. How many hours does the Mandatory Basic Safety Training Course for Construction Industry take ?

A. 3.5

B. 5.5

C. 7.5