Edmonton Accountant | The Importance Of A Business Plan
While statistics show that business plans will make business owners 50% more likely to grow the revenue of their business according to Edmonton accountant. Still, many business owners do not have business plans yet. Either because they do not know how to create one, or they do not end up finishing one.
However, this is incredibly important for entrepreneurs to have. Not just because having one will make an entrepreneur 50% more likely to grow their business. But because there are three common reasons why businesses in Canada fail. And a business plan can help entrepreneurs overcome these obstacles.
The number one reason why Canadian businesses fail, according to industry Canada. Is because they cannot find customers for their products and services. By having a business plan, entrepreneurs can figure out exactly who their ideal and likely customers are.
And once they know who their ideal customers are, they will be able to figure out how to find them. And come up with a marketing plan around that. Helping them overcome the number one reason for business failure in Canada.
The second most common reason why businesses in Canada fail, is because they run out of money. And business plans can help entrepreneurs avoid that, because a business plan works as the business is budget. And helps entrepreneurs see if their spending is reasonable.
They can cut expenses, increase pricing, and know when to engage in some revenue-generating activities. By paying attention to what their business plan is saying.
And the third most common reason why businesses in Canada fail is that they cannot find or keep staff in their business. This can also be addressed in a business plan. Helping entrepreneurs come up with strategies on how they should find their ideal staff members, and how to keep them as well.
If entrepreneurs are struggling to start or finish a business plan. They can always make an appointment to see their Edmonton accountant. Who will be able to help them significantly. Especially if business owners are already struggling. Or are hitting roadblocks that they are having trouble overcoming.
Their accountant will build to help them with the business plan because they will have a great template. Filling in the template together with their accountant is going to help them significantly. And when a business owner gets stuck, or is not sure how to proceed than their accountant will be able to help them figure out what should be next.
Having help with the business plan can also ensure that they have a second set of eyes on their plan. Because before an entrepreneur uses that plan to try to grow their business. They should ensure that it is as error-free as possible.
If business owners do not have a business plan. Or if they have business plan and are not using it. Or if entrepreneurs are struggling at any point in their business. They should work with their Edmonton accountant to get a business plan created. And help themselves succeed.
How Can You Learn With The Edmonton Accountant?
One of the best things that any entrepreneurs can do that can help themselves succeed is create a business plan according to Edmonton accountant.
Not only because entrepreneurs that have a business plan are 50% more likely to grow the revenue in their business. But because business plans can help entrepreneurs overcome typical business obstacles.
This is why it is very important for entrepreneurs to create a business plan as early on in their business as possible. And ideally, even before they open the doors to their business. But if an entrepreneur has already been in business for a while. There are three main reasons why they should take the time to create a plan if they do not already have one.
If an entrepreneur is making major changes to their business. A business plan can significantly help them navigate those changes. Perhaps they are developing a new revenue stream, they are planning huge business growth, such as wanting to double their size or their revenue it the year. Or perhaps they are navigating a large change in technology in their business.
Another reason why business owners should create a business plan. If they fit running their business for a while and do not have already. Is if they are struggling. Perhaps they are finding that they are running out of money, they cannot find or keep staff. Perhaps they are struggling to find customers, or close sales.
And finally, another important reason why business owners might need to create a business plan is because they need financing. Most financial institutions and banks will require looking at an entrepreneurs business plan. In order to improve their financing.
Therefore, working with an Edmonton accountant to create an effective business plan. That can help them appear as desirable to banks as possible. And allow them to answer all the questions that their financial institutions will have. Can help ensure that they are increasing their chances of getting approved for the financing.
Also, business owners should understand that a business plan can actually help keep them focused. So many entrepreneurs end up getting pulled in many different directions. Especially by people that seem very important. Such as the is is owners suppliers, customers or employees.
Having a business plan can help remind a business owner what is most important. So that when they get pulled off track, they can easily get back on track. And to continue to do what is most important in their business in order to succeed.
Once a business owner has a business plan. They need to make it a regular exercise to review and revise the plan every year. This way, they can updated as they hit revenue goals, and as their needs change. Spending four hours every year on a business plan. Is much more effective than an entrepreneur spending forty hours of the beginning of their business. And then never reviewing their plan again.
With how effective business plan is it helping entrepreneurs succeed. All business owners who are currently operating their business without a plan. Should contact their Edmonton accountant. In order to help create a business plan. That will significantly help them succeed.