Helping an entrepreneur create an effective business plan has many parts to it says Edmonton bookkeeping. But as long as the business plan can help an entrepreneur crystallize their goals and help them figure out what strategic priorities they need to work on to reach their goals. It can be an important tool that will help an entrepreneur succeed.
In fact, the software Manufacturing Company Palo Alto did a survey on this very topic. And the results of their surveys showed that businesses have a business plan. Are 50% more likely to grow their business? Then entrepreneurs that don’t have a business plan at all.
Therefore, the better the business plan is, the more efficient it is at helping an entrepreneur succeed. This is why a business owner should spend a significant amount of time on this important document. But there are many important aspects of the business plan that includes more than just cash flow projections and financial plans.
Edmonton bookkeeping says that important component parts of the business plan include a schedule, a marketing plan, and the differentiating factors of a business. I want the differentiating factors to refer to are all of the ways that a business is different from their competition.
The reason why this is important to Define is so that entrepreneurs can Market a message to their ideal and likely customers. By luring them to business with something that they is currently not getting at the competition.
A business owner can actually come up with their marketing plan based on the differentiating factors of the business. And it can also help an entrepreneur create a concrete business identity. This is why it’s very important for a business owner to sit down and write all of the ways that their business is different from all of the competitors that are in their area.
Once a business owner has created this list, Edmonton bookkeeping says the next step is to narrow it down to about three ways that they are going to focus on being unique. The reason why it needs to be about 3 is that entrepreneurs may not succeed and excel in all of the areas that they are different.
By choosing the three ways that they are going to focus on being experts in. When business owners are able to draw customers in because of those differences. They can achieve them at such a high level, that the business will generate repeat customers, those who will be happy to leave Google reviews, and tell their friends and family about the business.
What’s an entrepreneur has this list as well, they should put it into the executive summary of their business plan. Because the executive summary is arguably one of the most important sections of the entire planet self. It summarizes all of the most important aspects of the plan. So that when an entrepreneur reviews the plan if all they get to is the executive summary. It can remind them of what’s most important.
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If business owners do not have a business plan, Edmonton bookkeeping says that impacts their ability to succeed in business. In fact, industry Canada found that while 15% of all Canadian entrepreneurs fail within their first year of business. Ultimately, half of all entrepreneurs failed before their fifth year.
When industry Canada wanted to find out the reasons why those businesses were failing. the survey that they did showed that 42% of all failed entrepreneurs said the reason why their business failed. Was because they couldn’t find enough customers to sell their products or services to.
this is most likely not because a business owner had a great marketing plan and implemented it, but there were not enough customers in the area. But more likely because an entrepreneur either had a business plan and didn’t use it. Or didn’t have a business plan at all.
understanding the businesses differentiating factors can be significant says Edmonton bookkeeping. Because it will allow an entrepreneur to understand how they are unique. which can help them form and identity for their business. But most importantly, be a message that they can send out with their marketing to their ideal and likely customers.
There are many areas of a business that can provide differentiating factors. Such as servicing a niche market. Edmonton bookkeeping says that by servicing a small section of customers allows a business owner to get to know those customers extremely well. And anticipate their needs and once. Examples of a niche market that a business might serve might be athletes, children, seniors just to name a few.
Another area that an entrepreneur might set themselves apart from the competition might be as something as simple as payment methods or terms. An industry might be very famous for only accepting credit cards. Or credit card and check. And a business can set itself apart by accepting a wide variety of payment methods including cash, debit, and credit, check as well as electronic transfers, PayPal and even cash app just to name a few.
A business might be set apart from their competition by the level of qualifications, training, education or even years of experience by the entrepreneur. Or the entrepreneur and their staff says Edmonton bookkeeping. They might not have the longest-standing business. But if they have more expertise than the longest-standing business. That can set the business apart in a significant Way.
The facilities, the equipment, and the software can even be a difference. The business owner might use the newest technology, Leading Edge advances, or even software that they created themselves. All of these can work together to be some very important differentiating factors. That no other businesses would even be able to compete with.
When an entrepreneur has their list of all the ways that they are unique from their competition. This can be a powerful list. That can help them figure out not just a marketing strategy. But also help them find they’re ideal and likely clients who share the value of those differentiating factors.