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In fact, the importance of having a business plan can help entrepreneurs succeed. We’re other business owners who have had to shut their business down. Industry Canada did a survey and discovered that half of all Canadian entrepreneurs failed. And the number one reason why these businesses failed is that they couldn’t find enough customers for their business.
This most likely is not because there weren’t enough customers to support their business. But more likely that they didn’t have a marketing plan, so they were unable to find the customers they needed. CFO Services says that if entrepreneurs can do one thing that will increase their chances of succeeding in business. It’s creating a business plan.
Entrepreneurs should figure out what their differentiating factors are says CFO services. So that they will be able to attract customers away from their competition. These differentiating factors don’t have to be great big massive changes in the way they do their business. But can be small things as well.
A business owner should sit down and write out every single difference that they can think of that sets their business apart from their competition. They should think of all aspects of their business from location, to customer service, two features of their products, and even their competitive advantages.
Once a business owner has this list, they should narrow the list down to about three things they are going to focus on doing exceptionally well. Business owners might not be able to excel in all of those areas. But by choosing a few that they’re going to focus on. They can become experts in those areas.
And when clients come to their business because of those differences. Their ability to do them to an extremely high degree is going to ensure that the clients that are going there because of those differences. Are blown away with the entrepreneur’s ability to do it extremely well. And will inspire repeat business. As well as customers and telling their friends and family about their experience.
Once an entrepreneur has figured out what their differentiating factors are. And which ones they’re going to focus on. The next thing they should do says CFO Services. Is include those factors into the executive summary of their business plan.
The executive summary is a synopsis of the most important aspects of the business plan. And the differentiating factors not only helped create the marketing plan. But can impact the ability to accomplish the business plan. Therefore, putting the differentiating factors into the Z executive summary can be important. So that the entrepreneur will always remember what makes their business stand out from the rest.
Business owners who do not have a business plan might have a difficult time accomplishing their business schools says CFO services. In fact, it might even be difficult for an entrepreneur to specify what those goals are. Because while many business owners have an idea of what they want their business to look like. If they don’t make those goals concrete. It can be very hard to achieve.
Not only will it be very hard to achieve goals that are not defined. It can be very difficult for an entrepreneur to know what they have to do each day in their business. In order to accomplish those goals if they are not well defined. This is why creating a business plan is so important.
In fact, the software Manufacturing Company Palo Alto wanted to find out how effective business plans were at helping entrepreneurs succeed. What they discovered says CFO Services. Is that businesses that have a plan are 50% more likely to grow their revenue. Then entrepreneurs that do not have a business plan at all.
One important factor in the business plan and of the marketing plan as well. Is the ability to identify what sets the business apart from their competition. This can often be a determining factor on whether a consumer is going to use the entrepreneurs business or a competitor.
This is why it’s very important to understand what those differences are. And how to use those differences to attract their ideal and likely customers to their business. Therefore, an important activity for an entrepreneur to do before they open the doors to their business. Is to figure out what their differentiating factors are.
These don’t have to be extremely large differences. And are more likely going to be small and subtle ways that they are different from their competition. Such as some of their competitive advantages. Like insisting on only using the highest quality materials or ingredients when producing their products.
could be the fact that they have more training for their staff than any other competitors. It could be the fact that they have the most years of experience in the industry among their staff. Or even that an entrepreneur already has several contracts in place.
A differentiating factor could also be something like focussing on a niche customer base. For example, if an orthodontist was only focussing on Servicing putting braces on adults. Or if an optometrist only serviced children. They would get extremely good at serving that customer base. And essentially becoming an expert in it says CFO Services. Therefore, customers who fit that Niche would go see the business because of how well they are able to do their job.
The unique features of the entrepreneurs’ product or service can also be a differentiating factor. For example, having a warranty on a product that typically doesn’t get a warranty in the industry. Or having an extended warranty like three years on a product that typically only has a one year warranty.
By understanding their differentiating factors. Business owners can do very well at those differentiating factors. And ensure that they grow their business significantly.
