Edmonton Accountant | Why Writing A Business Plan Is Important
There might be many reasons why an entrepreneur would want to write a business plan. Whether it is to obtain financing, help them grow their business. Or if entrepreneurs want to be prepared when they encounter obstacles in their business.
However, many business owners do not have this important document. And their business often suffers because of it. Palo Alto, the software manufacturing company. Did a survey in order to find out how effective business plans were for entrepreneurs.
What they discovered, was that entrepreneurs who had business plans. Were 50% more likely to grow their business. Then entrepreneurs who did not have a plan at all.
In addition to that, 50% of all entrepreneurs end up failing within five years. And the three most common reasons why these business owners fail. Our easily overcome with the business plan.
Therefore, for all of the great reasons why entrepreneurs would want to have a business plan. The entrepreneurs that do not have a plan. She take the time to contact their Edmonton accountant. And get this important document made up.
The business owners that do not have a plan think that it is going to take them dozens of hours to create. And they do not have that kind of time. Another business owners are overwhelmed at the prospect. And do not know what information needs to be in the best business plan.
However, in four meetings with their Edmonton accountant. And four hours of homework. Can be all that it takes for an entrepreneur to end up with this vital document. That not only will help them succeed. But can help them overcome significant challenges as well.
A business owner can expect the four meetings to be held one month apart. With the first meeting being for the accountant to hear all about the entrepreneur’s personal circumstances.
They should explain how much their debt servicing is and how many bills they have to pay. Including mortgage and car. They should also explain what their other sources of income are. How many dependence they have, and if they have any other family members that are helping pay household expenses.
Meeting to be for the accountant to show the business owner but their financial plan in tax plan is. Based on those personal circumstances. It is very important that this part of the business plan be rooted in reality. So that an entrepreneur can ensure that they are able to earn an income while they are running their business.
The second meeting will also be for the business owner to input their own vision into the business. What they want their business to look like, and what goals they have.
Once the Edmonton accountant understands the entrepreneurs’ vision and goals. They will be able to put the marketing plan together. Ensuring that a business owner knows exactly what they need to do each day. And how they need to market their business to accomplish their goals.
The final meeting will be for the business owner and the accountant to ensure that there are no mistakes, and nothing is overlooked.
This is how in just four meetings, the business owner can end up with a great business plan. But as long as they utilize often. Can help them overcome common challenges. And know what they have to do in order to grow their business and succeed.
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One of the biggest challenges that Edmonton accountant says business owners have when they come to see them for the first time. Is that they have been working for months or even years a very hard in their business. And yet they do not understand why their business is not growing.
These entrepreneurs typically do not have a business plan. Or if they have one, they are not using it, or do not have a very good one.
In fact, business owners with plans are going to know exactly what they need to do in their business. To help them increase the revenue and reach their goals.
Even if business owners have been operating their business for several months or even years. Edmonton accountant says it is never too late for them to create a business plan for themselves.
This is especially true if a business owner is planning on making major changes to their business in the next couple of years. Whether this is increasing their volume, purchasing a large asset. Or moving into a much larger facility, that will increase their capabilities.
In order to manage those massive changes successfully. Business owners can benefit greatly from having a business plan. That can outline exactly what they need to do on what days. To manage those massive new changes.
Another reason why a business owner may need a business plan when they previously had not had one. Is that they need financing. It could be because they are purchasing a building, purchasing a large asset that will help them grow.
But most financial institutions and banks are going to require entrepreneurs to supply a business plan. In order for the bank to make their decision on whether to loan the money or not.
And the better the business plan is, the more likely the bank will be at loaning the money. Which is why entrepreneurs can benefit greatly from going to their Edmonton accountant to get help creating a business plan.
And finally, even though business owners have been in business for months or years. This does not make them immune to struggling. Or to encounter difficult problems that entrepreneurs face in business.
Business owners could be struggling because there running low of money, they are unable to find or keeps staff in their business. Whether finding it a challenge to find customers to purchase their products and services.
This is the single most common problem that business owners and counter. And can be over come with the right business plan. The sooner business owner can talk to their Edmonton accountant and get a business plan.
The sooner they are going to know what to do in order to overcome these problems. So that they can stay in business, and achieve their goals.