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Business Plan Executive Summary Target Market | Edmonton CPA
Yeah, it’s kind of funny. Sometimes they researched there. Then we got there there their plumbing business or they’re selling their their store or something like that and they’re pretending like the coca cola and the research. How many people bought plumbing in Canada and you know what percentage of the national market they’re going to capture and it’s completely irrelevant. It just does not matter what’s done on a national basis. We need to go smaller because you’re just not going to get in front of all those people.
Yeah, I can see why cause it’s mad.
Hi. Thanks for joining us for another episode of ask spurl CPA. Today we’re talking about the business plan executive summary and specifically the target market on the executive summary of the business plan and get an Edmonton CPA spurling associates talking to you about the business plan executive summary and the target market section of the executive summary in business by have coal here with me today. Cool. How many days do we have left before tax by the deadline? A six working days, six working days. That’s stuff we worked Saturday and take Sunday off when we got six working days so that the pressure is on. I need six more miles, six more miles. We’ll, we’ll talk about it as with an Edmonton CPA, the quote that we have here on it, on our topic is, you know, the Benjamin Franklin quote, if you fail to plan, you are by default planning to fail.
If you fail the plan, you are planning to fail. You know, Paulo Alto has as run the stats on that. The software manufacturer know, they’ve surveyed small business owners and found that business owners who complete a business plan are 50% more likely to grow their business. Then business owners, we don’t complete a business plan. So 50% more likely to grow your business like completing a business plan. Now, the story that we have here are business owners. They’re often focused on too broad of a target market and what they really do is they end up diluting the effectiveness of all their marketing initiatives. You know, all of their ability to onboard customers to get in front of their ideal and likely buyers. It’s diluted because they’re going after too big of a target market. You don’t send it to be the common mistake. So cool. What are the questions that these business owners should be asking?
What is the executive summary of a business plan? The executive summary of the business plan. We’ll, we’ll keep going through it. It’s the most important part of a business plan comes right at the front of the business plan and it has the, you know, all of the, the factors of the boil, the of the business plan boil down into one section of, you know, what’s the most important part to remember. Remember that sometimes this is the only section that a high level of investor or banker is going to see. They won’t see the rest of it. And as a busy business owner, sometimes it’s the only section that you’ll have time to refer to a at certain times of the year when you’re too busy. Um, so it’s, it’s the most important part. Should you include this section and the executive summary for your targeted market.
I think that is such a significant part of the business plan that I would, you know, recommend putting the target market as part of the executive summary, you know, for our business plan. So you, your target market is rate in the executive summary because that’s going to guide, you know, how we’re going to, you know, how are we going to market, how we’re going to hire for this thing. You know, what the, the projections are going to be for sure. It’s, it’s good to affect, with an Edmonton CPA, everything, you know, even pricing. So, with an Edmonton CPA, you know, target market is a section that I believe belongs in the executive summary of visit. Do small business owners often do national level research for their plant. It’s kind of funny sometimes they researched there and then we got there there their plumbing business or they’re selling their, their store or something like that and they’re pretending like they’re coca cola and they research how many people but plumbing in Canada and they know what percentage of the national market they’re going to capture it.
And it’s completely irrelevant. It does not matter what’s done on a national basis. We needed to go smaller because you’re just not going to get in front of all those people. You’re not going to go from zero to a national player overnight. That’s not how it works. And in fact trying to do so probably guaranteed your failure. Um, so yeah, they often go, you know, way too broad and they start doing this, you know, national level research that’s completely irrelevant for the average small business is the greater metropolitan area for some small businesses. Even too big. Yeah. Evening, if you boil it down, like for us, we’re in Edmonton and you know, we do business plans for clients who are, and the rest of Alberta or BC or wherever they are, but even that metropolitan area is too big. You know, if you want to be Edmonton electrician, that’s kind of hard.
There’s a lot there. There’s a lot of competition there, right? Sometimes even there, we’re talking about, you know, La Roseli electrician or ehlers Lee dentists, you know, uh, with an Edmonton CPA, clients where we’re helping them out with now, um, you know, more practical, more, you know, they’re going to get more traction on focusing on something even smaller. Um, then, with an Edmonton CPA, something that’s uh, you know, with an Edmonton CPA, something that’s too far away. And for some of our clients, sometimes the, even in metropolitan areas too big, you know, we get a lot of optometrists are dentists and Joe and people don’t want to drive from one end to the city of other to see their optometrists are dentists. So you’re gonna spend a lot of money trying to get from that person from the sell side to come to the north side, uh, to see it that just, you know, focus on, uh, when your backyard first, then you can move outwards.
How often do people need to hear about a company before they buy from them? The stats will tell us that the average consumer is, or your ideal and likely buyer actually needs to hear about you, see your advertisement and get a phone call from me 4.3 times. I don’t see, it’s difficult to contact him those 0.3 times. So we’re talking, we’re gonna call it five times. Um, so they need to hear your message. You’re trying to get in front of them five times. Um, so you, you can, you can start to see how getting as big as possible. Am I going to blanket the entire city of Edmonton five times? I’m certainly not going to blanket the entire country five times. Do people try to get it, get their ad out to as many people as possible? Yeah. Some people will say, well for that sort of spend, if I’m going to spend this much on advertising, let’s take up digital.
Cause sometimes digital is, is difficult for people to conceptualize a little most of the effective marketing and digital these days. But let’s say they’re going to drop flyers. You’d be better off dropping those same flyers five times in the same location. So there’s, you know that you had the choice between dropping 5,000 flyers to 5,000 houses or 5,000 flyers to the same thousand houses, five different times you will do better. People have done this over and over, this experiment over and over, and it always works out the same way. You’d be better off doing that same list over and over again rather than doing a bigger list and doing them once. And so it’s not, when you think about that ad spend and then they spent, they blanket it out, they do a flyer drop, main blanket out to 5,000 people. And nobody called me back. I was like, yeah, no kidding.
Nobody calls you back. Cause that’s not how people work. They get comfortable with you. They start getting that brand recognition, they get a reminder and you know, people are busy. So then they, they finally pick up the phone and it’s no different in the digital landscape where, you know, you want to get your Facebook ad in front of someone, get it in front of the same person five times. You know, if you want to get your, with an Edmonton CPA, your Google hours, get it in front of the same person five times, run the retargeting ad. So after they visit the site, it goes, it retargets them again and again and again. And you know, it’s cheaper and more cost effective, more likely to work. Um, you know, that’s, that’s the way to do it. Is it better to get in front of a smaller list of potential customers more often?
Yeah. Yeah. Just you rather than that bigger list, just smaller, just you want to get in front of them over and over and over and maybe you’ll want to get in front of him every day, but you, you just want to get in front of a smaller list more often than a bigger list. Less often. Remember, they’re not doing anything until you get in front of him five times. So don’t get in front of a market that you can’t get in front of five times in a relatively short period of time. You know, that buying window, um, you know, we want to get in front of that. That’s smaller lists more often. It’s going to be more effective, more cost effective, and it’s going to give you more results. How does that help keep advertising expenses on budget? Um, so if you’re going to get in front of, with an Edmonton CPA, more the customers more often, so let’s say, you know, I got to get in front of these customers five, you know, five times you look at a city like Emma says, 1.3 million people in Edmonton, and it’s like, you know, uh, let’s say half a year in a business where half of them are homeowners and those are your ideal and likely buyers.
So you might have a couple of hundred thousand people that you, you, you’re looking after, you know, in your demographic how much it’s gonna cost to get in front of those people five times. It’s huge. Most small businesses can’t afford that, not, not off the start. That’s something to aspire to. So you have a set number of advertising that you can, you know, get out of the sweat equity or money that you have saved up. Um, you know, it’s good to help you get a reasonable, with an Edmonton CPA, I keep within kind of a reasonable parameters for an advertising budget, but also make sure that advertising budget actually converts people. Let’s just make you feel good by saying I got in front of this many people or they get in front of less people and have some of those people actually convert as customers. Can this focus often reduce the travel time for contractors?
Yeah. That, that’s one of the other aspects of it too, that even if, let’s say you did have the, the budget and you can get in front of a, a bigger geographical location, a lot of businesses there costs increased by how far they get away from their core or their shop. So you know, you’re talking, if you’re thinking about targeting this area or that area, let’s make sure, can we target our own backyard first because our own backyard has the least amount of travel time. So if you’re paying guys by the hour to drive in the trucks and the service van to get up to a location, I mean let’s target the location where we have the cheapest travel costs first and then go out from there. Because if it’s not going to work with the cheapest travel time, how is it ever going to work with the more expensive travel or opinion than an hour to drive through traffic instead of 15 minutes to get somewhere, you know, pretty close by.
So really targeting your advertising initiatives with their old school dropping flyers or, or new age, you know, we’re doing Facebook ads or Google ad words or retargeting hands. We can do that geographically. With an Edmonton CPA, so let’s be really specific about where that target market is. Um, and you know, you’ll be able to reduce your, your costs, your labor costs and transportation costs accordingly. Do some businesses have a very small list of potential customers? Some of them, it’s really small. It’s not, we’re blanketing the whole city. We’re blanking nationally. Some of them, you know, we have copywriters are graphic designers and guess what, most of their business is going to come from other marketing agencies or designers or something like that. So they might have literally a hundred people that they can sell to. You know how you’re going to market for that business that only has a hundred ideal and likely buyers is drastically different of how you’re going to market to that business that has 200,000 ideal and likely buyers in the city.
So let’s be really specific about it. We might choose different marketing issues, we’d go about things differently. We’ll budget for things, forecast things differently in a business plan that we went for someone with a very small list of potential customers and we can get really zeroed in on on what efforts are going to translate to higher dollars and higher profit values for our clients. So I think that’s what we have here today. Thanks so much for tuning in. Again, as always, you know, please leave us some comments so you can respond back to you and you know, let us know what you’d like to see in future videos. And as always, please hit the like and subscribe buttons so we can continue to deliver your tips on how to beat the odds EP business. Thanks very much.