Creating an effective business plan takes strategy says Edmonton bookkeeping. But the work is well worth it. Not only has the software Manufacturing Company Palo Alto found that business plans help entrepreneurs succeed. Businesses that have a plan are 50% more likely to grow their revenue. Then entrepreneurs who don’t have any plan at all.
However, all of the efforts that an entrepreneur puts into creating a great business plan. Needs to not go to waste once they open the doors to their business. A business plan should be considered a living document. That is often read, updated with financial information as it becomes available. And new goals are set when old ones are reached.
One of the most important factors of a business plan is specifying the differentiating factors between a business and its competition. The reason why this is important says Edmonton bookkeeping. Is because not only can It influence the marketing plan. But it can also go by the entire focus of the business plan as a whole.
However many entrepreneurs are confused as to what areas they might be able to have a differentiating factor in. It is a lot more broad-range than a lot of people assume. And can include a lot of different things that might be important to the customer no matter how big or small it might be.
One differentiating factor could be the location. It might be in an extremely convenient location, such as in an easy to get to the place. It might have great parking where parking is hard to come by. And location might even be strategic says Edmonton bookkeeping. Such as a daycare opening on the ground floor of a business high-rise.
Other strategic locations could be if an entrepreneur decides to open their business close to businesses that serve the same clientele. Such as an entrepreneur opening there Fitness apparel store next door to a gym, chiropractor, and health food store.
Branding and marketing can be another differentiating factor. Because it can help an entrepreneur get noticed and to stay Remembered. In fact, Edmonton bookkeeping recommends that marketing and branding should be one of the top three differentiating factors that businesses focus on.
Not only can this help entrepreneurs differentiate themselves in an oversaturated market. Where the barrier to entry is extremely low. And so there are a lot of other similar businesses. But it can help inform the entire identity of the business, including the way they conduct their business.
Other aspects of an entrepreneur business that might have different factors could be payment methods and terms, qualifications training, and education. It might be a unique feature of their products or services. Or the materials or ingredients used to manufacture those products. Even if an entrepreneur is in a state-of-the-art building, using cutting-edge technology and the most up-to-date software. Can be a differentiating factor.
When entrepreneurs understand all of the ways that they can stand apart from their competition. They will be able to easily come up with their differentiating factors. And figure out which ones they want to focus on.
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If a business owner does not know how they stand out from their competition says Edmonton bookkeeping. They can struggle with not only coming up with their own identity. But what message they should send to their ideal and likely customers.
Business plans are an extremely effective tool at helping an entrepreneur achieve their business goals. And just like Abraham Lincoln, former president of the United States of America was famous for saying. If you give me six hours to chop down a tree. I will spend the first four sharpening the ax.
That quote illustrates how important the right tool for the job is. And how important that that tool is maintained well. And A business plan is an entrepreneurs tool to accomplish their business goals. How well they put their business plan together is going to impact how effectively they’re going to be able to grow their business.
Understanding their differentiating factors not only can help an entrepreneur pick an identity for their business. But it’s also going to help them have a consistent brand message to their ideal and likely customers.
There are many areas that an entrepreneur could have differentiating factors. However when they sit down to write their list. They might not be able to think of all of the areas themselves. By looking at this list, Edmonton bookkeeping says that business owners should be able to consider their own business and see if they have any differentiating factors in those areas.
The first one is having a niche customer base. This is very important, because if entrepreneurs are servicing a specific industry or specific type of customer. There are going to be extremely good at serving those customers. And much better than their competition. Who may not be servicing them as well because they don’t know them as well.
This might be a business that Services athletes, seniors, or children just to name a few. Or they could serve a particular industry. Such as a contractor who only builds restaurants. Any restaurant owners who are building a new building would want to go see the contractor who only does restaurants. Instead of the company that might do two or three and their entire history.
The payment methods and terms can be a differentiating say Edmonton bookkeeping. Particularly if they are in an industry that typically bills or accepts payments in one particular way. Such as a business that builds its clients on an hourly basis. An entrepreneur might decide to offer them a contract, and Bill them a flat monthly rate.
This would be beneficial because it gives the customer a consistent bill that they can budget for. And it gives an entrepreneur the consistency of knowing how much they’re going to be able to bill every month. And that becomes a win-win as well as a differentiating factor.
Once an entrepreneur knows what they’re differentiating factors are. They can create their entire marketing plan based on that aspect. And communicating it to their ideal and likely customers.