Edmonton Accountant | Why Right A Business Plan
Business plans are so vital to the growth of businesses says Edmonton accountant. That software manufacturing company, Palo Alto wanted to conduct a study. To find out how effective business plans were at helping entrepreneurs succeed.
In their study, what they discovered was that entrepreneurs who had business plans were 50% more likely to grow their revenue. Over and above entrepreneurs that did not have a plan at all.
However, despite the fact that many business owners understand how helpful business plans are. Many still do not have this important document in their business. And they can end up struggling is significantly when they do not have a business plan to help them.
In fact, industry Canada finds that the failure rate for entrepreneurs in Canada is extremely high. With half of all entrepreneurs failing within five years.
When looking at the three most common reasons why, not being able to find the customers they need to sell their products and services, running out of money, and not being able to find or keep staff.
The first thing those business owners should realize, is that all of these obstacles could easily be overcome. If they had a business plan for their business that they were actively following.
Therefore, if entrepreneurs would like to either overcome obstacles that they are facing. Or if they would simply like to increase their chances of being able to grow their revenue. They should make an appointment with their Edmonton accountant. In order to create a business plan for their business.
Ideally, a business owner will spend about four hours and for meetings with their Edmonton accountant. Figuring out all of the information that needs to go into a business plan.
In the first meeting, the accountant will listen to the business owner, and understand all of their personal circumstances. Such as if they have any other income from other sources. What their debt servicing is personally. And if they have any other income earners in their family.
In the second meeting, the accountant will show the entrepreneur the tax and financial plan that they have come up with based on the business owners personal circumstances. They will also show the entrepreneur the business plan. So that the entrepreneur can put in their own vision for the business.
The third meeting is for the accountant to see what the business owner has put in for their vision of the business. And between needing to end three, the business owner should spend about four hours of time ensuring that they have thoroughly explored this topic in their business.
And finally, the accountant will show the final plan, with all of their recommendations about marketing and scheduling. That the entrepreneur needs to follow in order to bring their vision to fruition.
By following this structure each year. A business owner can end up with a great plan, that can help them navigate typical obstacles. And know what they need to do in their business. In order to grow their business, in the way that they have defined is important in that business plan.
How Can You Learn About An Edmonton Accountant!
Even though many business owners understand that a business plan not only can help them succeed says Edmonton accountant. But it can also help them overcome common challenges that business owners face. However, many business owners still do not have a business plan.
Because they think it will take them much more time to create than they have. Or because they are overwhelmed at the prospect, and do not know where to start. Or what information needs to go into their business plan.
This is by working with an Edmonton accountant can be very beneficial. Their expertise as well as their business plan template. Can demystify this process. And give them the help they need to end up with a great planning document. That will help them succeed.
While the recommendation is for business owners to create a business plan even before they open the doors to their business. This is not always something that has been done. Which ends up with many business owners running their business, often for several years. Without having a plan in place.
There are three main reasons why an entrepreneur would want to create a plan, if they have been running their business without one. And the first reason is that they are planning on making major changes to their business within the next couple of years.
Perhaps they are planning on having huge business growth. From doubling their footprint, or increasing their revenue by 50%, or doubling their business. Having a business plan can help ensure that they are following a plan on how to achieve these huge goals.
The second reason why an entrepreneur should create a business plan, if they do not already have one in their business. Is that they are struggling. Perhaps they are running out of money, or are unable to sell enough their product or service to pay their bills.
Regardless of the reason why they are struggling, making an appointment with their Edmonton accountant and creating a business plan. Can help them overcome whatever obstacles they are facing, so that they can become successful.
And the last reason why a business owner might want to have a business plan. It even if they have never had one before. Is that they are in need of financing. Perhaps they are going to buy a building, or they need to purchase a large asset to help themselves grow.
Since most financial institutions require businesses having a business plan. Even if they have been operating their business successfully without one. Needing financing is a very common reason why business owners will need to create a business plan.
Since business plans can help all entrepreneurs, and matter what stage of business they are in. Anyone who is a business owner, and does not have a plan. Should think about creating one. Because even if they are doing well. They could do even better with a business plan.