Although it is very important and can take a lot of time for an entrepreneur to create a great business plan says Edmonton bookkeeping. It’s just as important that an entrepreneur actually uses that business plan. Instead of putting it on the Shelf once their financing has been approved.
A business plan should be considered a living document, that not only can help a business owner plan what they need to do in their business to be successful. But one that they should review often, and update as they get financial information. And accomplish their goals.
Just like Abraham Lincoln cent, give me six hours to chop down a tree, and I will spend the first 4 hours sharpening the axe. This quotes illustrates how important the tool is for a job. And as good a business plan might be. Is not going to help an entrepreneur achieve their goals. If they don’t use it.
One of the more important aspects of the business plan is the differentiating factors of the business. Edmonton bookkeeping says this specifies how the entrepreneurs business is different from the competitors businesses. And not only can help set the business apart. But it can actually inform the entire marketing plan. And focus the business plan as well.
There are so many different areas of a business that might have differentiating factors. That anyway that an entrepreneur can think of should go onto a list that they create in order to help understand how they are unique. Once they have this list, Edmonton bookkeeping recommends that entrepreneurs look at it and narrow it down further.
Because even though they have a wide variety of ways potentially that today are different from their competition. Entrepreneurs should focus at excelling in around three of those areas. It can be very difficult for an entrepreneur to grow their business, develop their products and services, do their marketing and customer service. All while trying to excel in all of the differentiating factors they have.
By choosing three that they are passionate about, or extremely skilled in says Edmonton bookkeeping. Can help an entrepreneur focus on what they are best or most passionate as. So that they can focus on other areas of their business as well.
If an entrepreneur is focussed on doing certain aspects of the differentiating factors very well. And they attract customers based on those differentiating factors. An entrepreneur should be doing them to an extremely high degree of excellence. In order to impress those customers and turn them into repeat business.
What’s an entrepreneur has their list of three differentiating factors that they are going to focus on. Not only should they put that within their marketing plan. So that they have a consistent message to their ideal and likely customers.
But a business owner also should put it into the executive summary of their business plan. So that they, and anyone else who reads their business plan can see how important it is that they know how they are unique in business.
Edmonton Bookkeeping | How To Use A Business Plan
While having any business plan can help an entrepreneur succeed says Edmonton bookkeeping. According to the study done by software Manufacturing Company Palo Alto. They discovered that entrepreneurs that had any kind of business plan or 50% more likely to increase the revenue of their business. Then entrepreneurs that did not have a plan at all.
But it stands to reason, that’s the more researched and well put together a business plan is. Can help a business owner significantly succeed. More than that 50% as described in the Palo Alto survey. And the better the business plan is, the better an entrepreneur can achieve their business goals.
Therefore, a business owner should not put time into just any business plan. But by understanding the most important parts of the business plan. And what parts they should spend a lot of time on is extremely important as well.
For example, a business owner might want to hand off the financial plan and cash flow projections to an Edmonton bookkeeping company, or an accountant. Because they might spend a significant amount of time working on there cash flow projections. Only to have them inaccurate, or unrealistic.
While their accountant works on that part of the business plan, an entrepreneur can instead work on their differentiating factors. Which honestly only a business owner is going to be able to work on. Because no one knows the business quite like the entrepreneur does.
These are all of the ways that an entrepreneur is difference from their competition. And can attract customers based on that difference. Because if no other businesses in the same industry are offering it. Chances are, there is a need that is going unserviced.
It could be as big as the location of the business. Whether it is in a particularly convenient location. Such as a daycare in a busy City Centre. We’re a lot of parents are working. Who want to avoid driving out of their way to drop their child off at daycare. When they can bring them to work with them and leave them at the daycare there.
Or the location could be specifically strategic says Edmonton bookkeeping. Such as an entrepreneur opening up their Chiropractic business next to a naturopath, an acupuncturist, and a massage therapist. Chances are, that some customers will wants to go to many of those businesses. Or that it will turn that area into a go-to location for people who are looking after their health.
Even the entrepreneurs branding and marketing can be considered a differentiating factor. If it helps the entrepreneur Stand Out. Edmonton bookkeeping says that business owners need to remember that branding and marketing does not just mean logo. But the way they conduct business, and they’re unique messaging.
By understanding a differentiating factor of their business. Can help an entrepreneur understand how they are unique in their business. But also, how they can find their ideal and likely customers. By focussing on Servicing I need that is being under serviced in the industry that they are working in.