Edmonton Accountant | Important Reasons To Create A Business Plan
There are many reasons why a business owner should have a business plan according to Edmonton accountant. And if business owners do not have one, not only are they compromising their ability to grow their business.
But they may not have the skills needed to overcome many obstacles. That entrepreneurs today are facing. Therefore, any entrepreneur who does not have a business plan. Should take the time to contact their Edmonton accountant. And get this important document. That not only will help them avoid problems. But also can help them grow their business as well.
The first thing that entrepreneurs should take into consideration, is that there are three most common reasons why entrepreneurs fail in Canada. A business plan is effective at giving an entrepreneur a plan. On what they are going to do when they encounter these obstacles. So that they will be more likely to overcome these problems and succeed.
The third most common reason why business owners fail in Canada. Is that 23% of them are unable to find staff, or keeps staff in their business.
This is a significant problem. Especially because in the current job market. The average employee stays approximately two point three years. Which is two years less than the previous average. Not only is finding the best fit difficult. But keeping those great employees once they are found is a challenge.
However, an entrepreneur can include in their business plan. How they are going to find their staff. And how they are going to build that staff up. So that not only are they more successful in finding staff. But they are better equipped to keep the staff that they do get.
The second most common reason why entrepreneurs fail in Canada. Is 29% of them simply run out of money. There are many reasons why entrepreneurs end up running out of money according to Edmonton accountant.
It could be that they do not know where their pricing needs to be. And they might price their products and services to pay for all of their direct expenses. Leaving themselves unable to pay for their overhead.
Once they get their pricing fixed, they are going to be more likely to not only breakeven. But grow the revenue of their business. Which is one thing a business plan can help them with.
They might not be selling enough products and services. Because they cannot find enough customers. And the part of the business plan that will help them accomplish that. Is the sales and marketing plan.
Many business owners might have a good idea about their marketing plan. But lack finite numbers. Such as how many times they are going to market, to what area specifically, and what their ideal and likely customers look like.
By using a business plan. Entrepreneurs not only can help themselves know what they need to do in their business. But they will have a plan in place for overcoming common obstacles. And when business owners know what they are going to do when up against obstacles. Can make them more likely to overcome those reasons. And make them more likely to succeed.
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Business owners who have plans are 50% more likely to grow their business says Edmonton accountant. Over and above entrepreneurs that do not have a business plan at all. The reason why, is because a business plan will help an entrepreneur know exactly what they are needing to do in their business. Not only to grow their business. But to overcome common obstacles.
According to industry Canada, there is a one reason why business owners fail in Canada. That is so significant, that almost half of all failed entrepreneurs say come to this problem. By learning how to overcome this issue. This is owners will be more likely to succeed in business.
Single most common reason why entrepreneurs in Canada are not succeeding. Is because 42% of failed business owners are not able to find enough customers to sell their products and services to.
This problem can be overcome with the business plan. Because entrepreneurs will be able to create an effective sales and marketing plan. That not only identifies who their ideal and likely customers are.
But they will know how to reach their customers. And what messaging they are going to use when looking for them. This is not to just done in a sales and marketing plan within the business plan says Edmonton Accountant.
But by understanding their own differentiating factors. Understanding what is unique about their business. And then choosing three things to focus on doing better than anyone else. Can help attract their ideal and likely customers to them. Because they will be servicing their customers in a unique way.
As well, the part of the business plan that can help them find customers and sell their products and services. Is understanding pricing. This is owners need to know how much to price their products and services so that they are covering their costs.
But they also need to know what pricing they should have, so that they can be attractive to their ideal and likely customers. And this is a very important and critical balance. Which is why getting help doing this, ideally from their Edmonton accountant is so important.
And even if business owners have been running their business for many years without a plan. Getting a plan can be especially helpful. If they are planning on making changes in their business in the next couple of years, or if they need financing.
By creating a business plan, business owners can help not only overcome common obstacles. But can help them be proactive themselves. So that they know what they need to do in order to increase their business and grow their revenue.
And especially if entrepreneurs are planning on making changes, such as purchasing a larger building, or doubling their business. Knowing exactly what they need to do and not making mistakes. Is important to help them succeed.