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It is extremely likely that any small entrepreneur that opens their business are going to encounter one or all of these obstacles at some point in their business. And their ability to avoid them, or overcome them. We will significantly help them succeed.
According to industry Canada, 15% of all entrepreneurs fail within the first year of owning a business. 30% of all entrepreneurs fail within their second year of business ownership.
And half of all entrepreneurs fail within five years of owning their business. When industry Canada ask these entrepreneurs who failed what reason they could give for why their business was not successful. They found that the most common answers were one of three things.
The third most common reason why failed entrepreneurs said they were not successful. Afflicted 23% of these unsuccessful business owners. And that was they were not able to find or keep enough staff in their business.
The second most common reasons why business owners who were not successful said they failed. Was because 29% of them said that they simply ran out of money.
And the single most common reason why entrepreneurs failed. Was why 42% of these failed entrepreneurs were not successful. Which was they were not able to find enough customers sell their products or services to.
From not being able to find employees, to running out of money, to not finding customers. Edmonton accountant says all of these obstacles can easily be overcome with the business plan for many different reasons.
There are several different components of the business plan that can help entrepreneurs overcome all of these issues. From knowing the best way to build a team, through great interview and human resources practices. Can help entrepreneurs overcome not being able to find or keep staff.
From pricing, tax planning, and financial planning. Can help entrepreneurs overcome running out of money. When business owners know exactly how to price their products in such a way that allows them to breakeven. And then no how many customers they need to bring into their business. In order to turn a profit.
And finally, the reason why business owners are not able to find enough customers. Is not because they simply do not exist. But rather, they are not marketing their business effectively. Or at all. And therefore, a sales and marketing plan as well as pricing and even differentiating factors. Can help an entrepreneur find those customers, and get a consistent message out to them on a regular basis.
The sooner a business owner is going to be able to create a business plan. The sooner they are going to be able to easily overcome these obstacles says Edmonton accountant. And even might make it so that a business owner never encounters them. Because there already working proactively to grow and improve their business.
Many business owners may not realize all of the things that a business plan can help them do says Edmonton accountant. In fact, many entrepreneurs assume that business plans are most beneficial to help them achieve the financing they need to get the loan to start their business.
And while that is one important role of a business plan. There are other reasons that business owners should have a plan in their business.
Not only can business owners overcome obstacles. But they can also use the business plan to plan their business growth. So that they know exactly what they need to do in their business. And when they need to do those things in their business. In order to help them see success.
Some challenges that business owners are facing, that might make them reconsider having a business plan. Include things like making major changes to their business.
Edmonton accountant says business owners might not have a business plan for several years. But now that they are deciding to make major changes to their business, they realize how important a business plan is. Because they want to ensure they do not make any critical errors during this crucial time in their business.
It could be that they are buying a new building to increase their capacity. And they want to get to that capacity as quickly as possible. So that they can start paying for that building.
Or, a business owner might be adding a revenue stream to their business that did not exist before. Such as a restaurant that is adding a food truck or catering component to their business. Or a massage therapist that is adding mobile services to their capabilities.
They might be planning a massive growth to their business by adding a large asset, or are operating their technology. And want to know how to do that, without impacting their revenue very much.
Another reason why a business owner might need a business plan, even after years of owning their business without one. Is because they now need financing. It could be because they are purchasing a building, or purchasing a large asset says Edmonton accountant.
And regardless of the reason why they need financing. Most financial institutions or banks. Require having a business plan. In order to grant that financing. Which makes it very important for business owners to find an Edmonton accountant that can help them create a plan.
And third reason why a business owner might need a business plan. Even if they have been working for years of that one. Is because while they may not have struggled before with running out of money, not being able to find her keep staff, or not being able to find customers.
The economy has changed, they have more competition than ever before. And they are struggling with these obstacles. And need a business plan that can help them overcome those challenges.
The sooner a business owner in these circumstances can get a business plan. Sooner they are going to be able to act proactively to help their business. Instead of acting reactively. Potentially causing their business to stall.
