Business Plan Executive Summary Problem & Mission | Edmonton CPA

You’re not doing this for the bank. Um, you doing this for the business owner?

Yeah, I can see why cause it’s not,

hi. Welcome to another edition of ask spurl CPA. Today we’re talking about a m it’s an accounting firm, business plan, executive summary, problem and mission. So we’re talking about business plan, the executive summary and specifically the problem in mission section of the executive summary. I have coal here with me again. So call how you find it popping the content out to the door. It’s a lot of work, isn’t it? Yeah. It’s something you got to do every day that if you want him to be successful. Yeah. One of the Kpis, how many words can you get up on the site? Right? So, um, the, the court that we have here at Benjamin Franklin quote, and this is if you fail to plan, you are planning to fail, Edmonton CPA , to statistic that we have on this subject that we would bring up is the survey that Paulo Alto did.

And you know, they surveyed small business owners and they found that small business owners were 50% more likely to grow their revenue if they completed the business plan. Edmonton CPA , so 50% more likely to grow the revenue if they completed a business plan versus the orange who don’t complete a business plan. And the story that we have here are business owners. They underestimate the value of having the problem, the vision and the mission on the business plan. That’s the problem, the vision and the mission on the business plan. Um, so court, what are the questions that these business owners should be asking? Um, you don’t want to sound like this business plan. I will. The first one would be what is the executive summary Section of the business plus, so the executive summary, if you watch any other episodes in this and this series is, is the most important section of the business plan. It’s at the front of the visit planning and it basically summarizes the most important components of the business plan into one section. A. So good. It’s red at the front and it’s all of the, the most important items in one spot of the business plan.

Okay,

we’ll banks need to know the problem, vision and mission of the business and the banks, they don’t need to know the problem, vision, mission of the business. In fact, I’m sure they read our business plan. Sometimes they look at that section and I like the rest of the plan and look at that and wonder why the heck do we have the problem, vision and mission of the business? You’re not doing this for the bank. Um, you doing this for the business owner?

Yeah.

Then why do you believe it’s important? So I believe it’s important because you know, when we’re, when we’re talking about a business, you know, I used to not think that the, the problem, vision and mission of the business is important, but those are the most critical fact of the business. You know, what problem are we trying to solve? You know, what’s our vision? What’s our strategy for the organization? What are we telling our employees to remember every single day? It’s basically the essence of the business. Boiled down into three sentences. I mean it, what can be more powerful than that doesn’t take up a lot of room on the executive summary. It’s good to keep the rest of the executives, the rest of the business plan itself, focus on those objectives and that those set of, you know, that way of thinking. So I think it’s important that it needs to be there.

And if you’re trying to build something that’s scalable that you can actually bring on team members to help you on it, you need to be really clear on what those, with the problem, the vision and the mission for the businesses. Why do people buy things? People buy things for generally only one reason. And it’s to solve a problem. They buy things to solve a problem, then hire an accountant because I want help them. The filings, they don’t know how to do it themselves. They hire a contractor because they know they don’t know how to rewire their house and they’re worried it’s gonna burn down and hire a plumber because I have a flood. And you might say, well there’s other thing people would buy things for fun too is that, you know they buy, why do they buy a Rolex watch the cause. The problem is they don’t think they look cool enough so they buy the Rolex watch cause I think it’s going to solve the problem with making him looking cool.

It really always boils down to a problem. You know, any purchasing decision, it’s usually it’s to solve a problem. So be really clear on what problem you are solving for your customers with your business. That’s you don’t step one. It’s the only reason why people buy things. Why do people buy $87,000 Ford Raptors? Because they want a giant moving and billboards to promote the youtube channel and businesses for sale at Edison. That’s, that’s why it had a problem. We want to vote it and that’s, that’s why we’re, what’s the problem we’re trying to solve? A should your problem, vision and mission be short or long? They all should be long. They all should be short to the 0.1 sentences. You know, if they’re too long, nobody reads it. Nobody cares about them. Nobody’s wondering if you should, would, Edmonton CPA , um, you know, fuel the surprise. I’m being the best writer.

I, that’s not what this is about. This is not an English test unknowns grading you on how memorable is it? And if it’s too long, it just will not be memorable. You know, not even the business owner is going to remember that. A lot of times they get visiting learners in there and say, Oh yeah, I’ve written down my problem and my, Edmonton CPA , my vision of emission. And I say, Oh yeah, what is it? And they get that blank look of despair where they can’t remember it themselves, but they think their employees are somehow going to remember it. It’s gotta be short, succinct to the point. Memorable. What does a vision statement have that is not in the mission statement? The vision statement is going to have a, basically a longterm, and I encourage it to be a longterm, quantifiable goal. You know, our vision, uh, you know, the problem that we’re solving and scrolling associates is 50% of the kidney businesses go out of business in five years.

The vision that we had is to help a thousand businesses for five years or more. So extremely quantifiable, a thousand businesses, four or five years or more. And it’s a vision. It’s a longterm goal. That’s not a goal we can hit this year. Um, and it’s something that it’s going to take us a while to get to it. It’s something that we can measure our progression throughout time. So that vision, it basically has a longterm goal. Something that you generally can’t accomplish in the next year and it’s something that you can count something, you can quantify it. That’s what I recommend putting in your vision statement and you don’t very, Edmonton CPA , succinctly is the mission statement the most important thing for employees to remember? Yeah, that’s it. I mean, you’re going to have policies and procedures and checklists and training that you’re going to put people through, but someday that that employee, they’re going to be deer in the headlights and you know, they’re going to be overwhelmed or you’re not going to have a policy or procedure and they’re going to have to make a decision and they’re going to have to make a professional judgment decision.

And it boils down to that mission statement. Our mission statement is helping Canadian business beat the odds. So if you’re confused and if you’re an employee, what, what can I do to help the business owner a same business? What can I do to help them beat those odds? I, that’s the one thing that they’re going to remember if all else fails. You know, we don’t have anything specific, you know, that it’s almost like our decision making criteria. Which decisions should we go? Which path should we take that’s most closely aligned to our mission? Edmonton CPA , that’s the one thing. If you can get any employee to remember, if you get them one sentence to remember throughout the whole day and apply that, it’d be the mission statement. Why should you think of your lowest level employee when writing down in mission? So, you know, occasionally business owners that they write their very sophisticated, Edmonton CPA , but they have to remember that sometimes their employees aren’t as sophisticated or maybe they’re very sophisticated but it’s not in the literary fashion.

Um, so it’s got to be that mission statement has gotta be something that your lowest level employee, not that’s just the under. They can understand some of them that they can memorize and something that they can apply every single day. So I always tell people, you know, someday you’re going to be big enough to have someone making minimum wage stocking shelves somewhere in your business. What does that mission statement you can give them? They could memorize. And like I said, if it’s too complex, they’re not going to remember it at all. So think of that, that lowest level employee in your organization. And what does that mission statement that would be, you know, a that they can memorize and be that would be practical for them to use each and every day to guide them on any decisions where there’s some uncertainty. How often should you communicate the mission employees?

Um, every single day as much as humanly possible. I don’t know if anyone we have the mission statement is written on every single whiteboard. You, you, you can’t escape it. You have to communicate it more than you think you should because there’s so much things going on in the business. You know, employees have time pressures, you know, on work projects and they have, you know, roles that change and they have their personal lives too that are affecting their, their decision making. It’s, it’s almost on the business owner. If it’s on you as a business owner to make sure you get that mission statement in front of them rather than tell them once on their first day and expect that they remember it forever because you got to remember you’re, you’re almost sometimes giving them advice that can, can seem conflicting. You know, you give them a training session here and a checklist there.

And just remember the consistent message is always that mission. Um, and you know, almost how you deploy that checklist of that template. It should be consistent with that mission. So it, it’s, it’s something that should be, it almost can’t be over communicated and it might seem strange. Um, but you want to write it down everywhere in your office. You want to go over it in staff training meetings, Edmonton CPA , you know who you want to relate it back. If you’re doing a high level of technical training program, you know what in the application of how you’re going to roll it out to customers. Well, how does it, how does it tie into the mission? What’s consistent with the mission? Do most businesses look at the desire for profit and emission backwards? Yeah, I do think that’s, Edmonton CPA , it, it takes a while and know. Most business owners, why do you do what you do, you know, when you do what you do to make money as well.

I mean, do we help businesses to make money or would it be better off of us thinking we make money so we can help more businesses. We can’t operate at a loss. That’s not how it works. And that’s not how any business can work. Um, you know, or eventually you just won’t be able to accomplish your mission. So, but if you can rearrange the thinking and your business, so you’re actually thinking about the, and the making a profit as a means to accomplishing your mission. It’s amazing how customers start to get on board with that. Um, and they really realize that there’s, there’s something bigger going on here. Not just the customers, but the people working in the business. You know, we are, I always tell the people, and we’re working here now it’s, you know, we make money so we can help more business owners.

You know, rather than when I started out, I thought, ew, ew, ew. You help business owners so you can make some money. But if you can switch that thinking around, now you’ve got something that you can probably scale and the profit is almost a, it’s a byproduct of that. So I think that’s what we have here today on your business plan, the executive summary, and specifically the problem and vision and mission statement in the executive summary of a business plan. Edmonton CPA , you know, thanks so much for tuning in. As always, please leave some comments below so we can respond back to you and know what to address in future videos. And as always, please hit the like and subscribe button so we can continue to deliver you videos on how to beat the odds of business. Thanks very much.