Many entrepreneurs may not understand how important having a business plan is to their success says Edmonton bookkeeping. But, studies have shown that those that complete a business plan are 50% more likely to grow the revenue in their business. Then business owners who do not complete a business plan at all.
This is extremely important, especially as business owners consider that 50% of all Canadian entrepreneurs. And up failing in business by year five. That statistic could be impacted if more Canadian entrepreneurs completed business plans. Prior to opening their business.
However, one reason why many business owners do not complete a business plan. Is because it can seem like an extremely overwhelming or insurmountable task. Although if business owners stop looking at it as one giant plan. But specific sections at a time. They could break it down into smaller pieces that were easier to accomplish.
One of the first things that business owners can do once they have broken down their business plan into specific categories. His figure out what sections are best done by the business owners themselves. And which ones can be outsourced to another business professional such as an Edmonton bookkeeping company or an accountant.
The financial plan and cash flow projection are two examples of a section of the business plan that is better left to an accountant. The reason why is because only an accountant will be able to get accurate and realistic cash flow projections. And while in entrepreneur might spend a significant amount of their time working on this. They likely will not end up with an accurate cash flow projection. And their projection will likely be too optimistic.
Optimistic projections might be based on things such as hundred percent occupancy. Or based on selling out of a product every single day. Which is a lofty goal for even a seasoned business? Let alone a brand-new entrepreneur. Therefore, business owners will end up with a better cash flow projection to use in their business plan. If they hire an accountant.
One example of a section in a business plan that cannot be done by anybody but the business owner says Edmonton bookkeeping. Is the mission and vision statement. Nobody knows the business like the entrepreneur. they should start by creating a list of all of the ways that they are different from the competition.
They should look at that list and choose three things on that list that they extremely good at. Or things that they want to focus on doing exceptionally well. When they understand this, Edmonton bookkeeping says that entrepreneurs will be able to attract clients to their business because of the things that they do well. This can also help an entrepreneur figure out what their unique sales proposition will be. And what problem their customers are solving by purchasing products and services from them.
Once an entrepreneur knows what makes them different. They can use that through the rest of their business plan, to set goals. And to help focus the rest of their business plan in the direction that makes the most sense to them.
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Business plans are extremely vital to the success of all business says Edmonton bookkeeping. And as Abraham Lincoln, former president of the United States of America was known for saying. The business plan should be considered the prep work to the business. Just the way that sharpening the acts was to the efficiency of being able to chop down the tree.
Not only is grading a business plan going to help an entrepreneur succeed in business. But while many entrepreneurs have a general idea of what they want to accomplish in their business. Creating a business plan can them to actually define what that is and what it looks like. So that they can create a step-by-step plan of how they are going to get there.
There are many different aspects to the business plan. So by looking at it piece by piece, can keep an entrepreneur from feeling overwhelmed at the task says Edmonton bookkeeping. A great place to start would be with the mission and vision statement. Because these statements can actually focus the entire business plan. And the unifying voice.
The mission statement is going to be a one-sentence phrase that explains how the business is going to solve their customer’s problems. Edmonton bookkeeping says what it does not need to include, is what the industry is. For example, Burger King’s mission statement is a habit your way. They do not need to specify that they are fast-food chains. They will explain that they are looking for consumers who want fast food. But they want fast food prepared in the way that they desire.
The vision statement is next says Edmonton bookkeeping. And the vision statement will explain exactly how they are going to accomplish that goal by giving a measurable and quantifiable goal that is time-sensitive. Is is owners also should keep in mind that this goal is going to be long term. And it should not be easily achieved in a short amount of time.
Bot the mission statement and the vision statement should be a single sentence long. Because longer than that is going to be difficult to understand or remember. And the power of these statements is that they are easily read, understood, and communicated.
Once an entrepreneur has a mission and a vision statement. It is going to focus the rest of the business plan. Allowing business owners to figure out what goals they have, and how they are going to accomplish them. As well as who their ideal and likely customers are. And how to find them.
If business owners look at the business plan as something to be tackled one task at a time. It can seem more achievable. As the complete one section, it will help them get the next section complete says Edmonton bookkeeping. And once the business owner completes all the sections. They will have a great plan that is going to help them succeed.