Edmonton Accountant | How Important Is A Business Plan
Entrepreneurs should not overlook the importance of a business plan according to Edmonton accountant. Because this is one of the most vital things they can have in their business that is going to help them succeed.
Not only is a business plan a tool that can help entrepreneurs define their goals, and plan their business growth.
It also because a business plan is a document that is going to significantly help an entrepreneur overcome significant challenges. That most entrepreneurs in business face.
In fact, according to industry Canada, there is a significantly high percentage of business failures among the small business community in Canada.
Industry Canada found through their surveying, that 15% of all Canadian entrepreneurs fail within their first year of owning a business.
30% of all small businesses in Canada failed within their second year of owning a business. And an extremely startling 50% of all entrepreneurs failed within five years of owning their business.
When industry Canada ask these failed entrepreneurs that the various reasons why they failed. They discovered that there were three common reasons why entrepreneurs said they failed in business.
The third most common reason why entrepreneurs said they were not successful. Was because they could not find or keep staff in their business.
The second most common reason why entrepreneurs and set their business was not successful, was because they ran out of money.
And the single most common reason why entrepreneurs were not successful in their small business in Canada. Was because they were not able to find enough customers to sell their product and service to.
Not only is a business plan in important documents that can help entrepreneurs overcome these obstacles. But by following their business plan diligently. Business owners may not even encounter them at all. Because they are doing the things that will help them overcome those problems before they get to them.
However, no matter how many entrepreneurs understand how important a business plan is says Edmonton accountant. They still might not take the initiative to create one for a variety of reasons.
The first reason is entrepreneurs do not know what information should go into a business plan. Or they start, and get stuck or discouraged partway through. And give up without completing the task.
Another reason why business owners do not create a business plan. Is because they assume it is going to take them dozens of hours. And they already do not have enough hours in their day. Because their working twelve hours a day, six days a week. And so they do not start.
However, Edmonton accountant says by reaching out to them, and using a business plan template. It can take for meetings, and four additional hours. For business owner and their accountant to create an effective business plan. That can be used to help them succeed.
Ideally, business owners should create this business plan before they even open the doors to their business. However, if business owners do not have a business plan, or have not touched their business plan in months or years.
Anytime is the next best time to get started creating this important document. Is going to be so beneficial and will help an entrepreneur succeed.
Edmonton accountant | how important is a business plan
Business plans are extremely helpful for entrepreneurs in growing their business according to Edmonton accountant. And in fact, has been proven by the software manufacturing company Palo Alto.
Palo Alto did a survey in order to find how successful business plans were helping entrepreneurs succeed. And there survey showed that business plans helped entrepreneurs be 50% more likely to grow their business then entrepreneurs who did not have a business plan at all.
However, many business owners struggle with creating a business plan. Either because they do not know the information that should go in one. Or because they do not have the time to create one.
However, by contacting their Edmonton accountant, they can end up with an extremely effective business plan. In just a few meetings, and a few hours of additional work.
The first meeting will be designed for helping the accountant understand business owners personal circumstances. By knowing all of their streams of revenue, dependants, and all of their debt servicing. Can help the accountant create financial and tax plan based on the entrepreneurs own circumstances.
The second meeting will be a month later, and will be showing the entrepreneur the tax and financial plan to ensure that it is accurate. And introducing the business plan template to the business owner. So that they can put in their own vision and goals.
This is where Edmonton accountant recommends that business owners block four hours of time personally. In order to put their vision into the business plan. By understanding exactly what they want to accomplish in their business.
What they want their business to look like. And solidifying goals. Can help the accountant and up with a great marketing plan for the business owner.
There meeting will be for the accountant in the business owner to review the marketing plan, to ensure that the business owner is ready willing and able to accomplish the objectives.
And finally, the last meeting will be for the business owner and the accountant to review the entire plan. Trying to poke holes in it, before the business owners own time and money are on the line.
By fixing mistakes, and ensuring that it represents the business owners circumstances, and that they are willing to accomplish the marketing plan. Can help a business owner and up with the best possible business plan. That will help them succeed.
However, once an entrepreneur has created this business plan. They need to ensure that they are reviewing it regularly. And that they are updating it as well. Spending four hours and for meetings each year doing this exercise.
Can ensure that a business owner is doing the best in their power each year to end up with the business plan that is going to significantly help them succeed.