Edmonton Accounting Firm | 4 – 2019.02.02 #BeatTheOdds Boot Camp – Planning
4 – 2019.02.02 #BeatTheOdds Boot Camp – Planning | Edmonton Accounting Firm
Yeah, I know. Read it out loud and proud. Loud. Proud. Well, that’s the only bad for your draw. Five,
four, two, nine, two, six, two.
Well, simple section.
Or how do you all to visit planning four hours. Business Planning, walking around with a, uh, of just slowly used to carry today, but it’s given it to me a section for people are maybe a little overly scared of business planning and they make it into something that it’s not a business plan is not something that you should spend 40 hours in your first year of business and never do again. You’d be better off spending four hours a year rather than 40 hours in their first year. It’s just going to learn so much. You’ll never get it right for here, but the plan itself is beneficial. The cool, you know, it’s an Abraham Lincoln quote. We go way back and these, these, these are just principles and you’ll see them over and over and over again. Give me six hours to chop down a tree and I’ll spend the first four sharpening the ax and like that it’s four hours to just say, here’s the goodness.
Um, business planning, you know, it, uh, uh, business owners would do a plan, are 50% more likely to grow. The revenue tells me no matter how big the plastics business owners who complete a plan or 50% more likely to grow their revenue. So what’s the number one reason why businesses fail customers? There are 50% more likely not to have that problem if you do a plan. Um, so some of the mistakes that are made are, you know, we do not want to focus on creating a perfect financial and cash flow projection. You know, that it’s the easiest thing to pay someone else to do. And the only thing that no one else can do besides yourself, only you can get the vision for the company on paper. Um, but you know, if you want someone else to do projections on it, it’s the easiest thing to pay someone else to do.
And it’s the hardest thing for you not to do. They’ll go to try and do yourself. Really, I have never in over a decade in public practice, never, never, not once. Not once seen a client come in with a business plan where their cashflow statement was right because never happened. Someone’s going to prove you wrong some day, but it has never happened. Most rookie CPAS, so these are people who’ve already, you know, went through seven years of school, they did a cash flow projection. Most of them, it is going to be wrong. So, you know, the clients are coming in thinking that they’re doing good cashflow projections. They’re not, but I cannot do a business plan for them and I don’t know what vision is. He got to get your vision down on paper. Um, so where it starts is we want to start with a mission and the mission, what we want to do is you want to write a succinct mission that communicates a singular most important value or differentiation factor.
Don’t include characteristics that are expected for your industry. Don’t try to be everything for everyone. Focus on the one thing you want to be the best in the world. At one thing. You want to be the best in the world. That’s a pretty big statement for a small business owner. I didn’t want them. I got an example of how not to do this mission statement. I don’t even have to pull one up there. They’re almost impossible to memorize and that’s the point. Provide a safe, stimulating and caring environment for children ages 11 months to 12 years. Our focus is to provide and encouraging educational experience, promoting physical, social, emotional and cognitive development committed to the founders we serve. We strive to give parents complete peace of mind while being a shining exemplary of what quality care should be. Quality childcare should be. Repeat that statement for me. Oh, this is garbage as a mission statement. It is garbage and is what the norm is for all associates mission statement, helping Canadian business beat the odds. Repeat it for me.
Wow. Which one is going to get used on a day to day basis? Chris, which tag line or service and installation? That’s just too strong. Kevin were Kevin Go. Okay. Kevin’s not here. Matt, what’s Kevin’s tagline? Building. Building Trust, bringing value. Matt knows it. He’s not even in the room. One sentence. It’s got to be a meaningful statement that you can use every single day that the lowest level employee that you’re going to have in your business can memorize and apply every single day. Do not put this Kumbaya of literary masterpiece. It’s one sentence. If it can fit on one line, throw it Vernon, they go outside, shoot it. That doesn’t work. Okay, so we’re going to how I’m going to have you always, um, always bookkeeping come up here and you’re always going to help me break down some of the stuff that we see in business points. So, um, what you’re going to do, and it ties into this next, uh, page is going to get a little complicated here.
And if we have to stop for a little bit of question, we’ll even throw some people around if you have your hand, but you put your hands up and come in and we’ll give you a little bit more. Let’s, let’s try this or all tried in a group even. We want to break your business down into no more than three revenue groups. Okay, great. Your business down to no more than three or I’m in or groups. I A contractor may have one group for fixed fee projects and another group for hourly service work. I he had, Jim may have one group for monthly membership costs and another group for personal training time. You might just have one that’s fine. You know, I get dentists, we can do business plan dens and we’ve done a lot of work in the medical field and a lot of them only have, it’s not unusual for them to have one of her doctors is probably the better example.
Dentist only have two but doctors are coming. It’s patient visits. That’s it. The patient visit could be $20 or the patient visit could be $1,000. It doesn’t matter. We just need patient business. At the end of the day it’s a patient business, so business owners are often too precise in establishing categories. This increases the cost and time track performance. However, it rarely results in better choices as even if the categories are tracked accurately. Most small businesses don’t have enough data points for the information to be reliable. I e. A small restaurant does not need to know how much you’re making on each board, honey and ratings, but they should know how much they make off of each table visit into the restaurant. You start to see that the onion rings. So even if you had the data, even if you spent the $20,000 a year to track each item on your men, okay, you want to pay something to do that.
Guess what? That information is not reliable because you don’t have enough data, but you’re not Mcdonald’s in selling on board as a hundred rigs for that, you know are reliable projector, but how much you’re making, how many people spend every time they come in and what your food costs are every time they come in, that number is pretty reliable. So then you want to figure out the average per revenue per transaction. For each group, you’re going to identify the direct costs of each revenue. Now, direct costs are costs that vary based on how many units produced and how many customer serve materials. Direct job later subcontracts. They do not include costs that remained relatively constant, regardless of volume I II rent and ministrative for fixed costs. So direct costs or things are going to change depending on how many more units you produce. How many more people coming to my table, I’m going to have to buy more food.
How many more jobs than I have? I’m going to have to pay up more hours for my guys on those jobs. Um, if you have a year of history, count the number of transactions prior year by Revenue Group. Okay. So I’m, I’m a contractor and I only have one. I’m just doing service, electrical work. Okay. The phone rings and I go over and I knew hourly service. Okay, great. If I don’t, I don’t know how much this, I just count how many invoices from last year, my account online, and then I take my revenue for the entire year. And then I divided by how many service bells I had. Now I have the average revenue per service here, maybe an electrician. They had to have one for project work. So work that I bid and another one for service calls. Okay. So I need you count the number of clients that I had where I did work and count the number of clients that have words an alley, so service called divided by those revenue numbers and I got my average. That’s a powerful powerful number and it’s a meaningful number. It’s small. This is how much you make on each individual set of under Greece is not useful, not useful. It’ll take you way too long to track and even if you do track it, you don’t have enough data points for it to be, you’re liable to projected he would be bored. Okay.
We want to get the average revenue per trip per transactions to buy. The gross revenue for the revenue group has prior year by the number of transactions in that revenue group of the prior year to get the average direct cost of the direct costs for the revenue group in the prior year by the number of transactions and that revenue group the prior year. If you’re starting from scratch, figured out the revenue per transaction by working backwards, start with the average transaction costs, then add the desired profit per transaction to get a proposed average revenue project per transaction thing compared to the industry average and estimated amount, subtract atmospheric costs from average revenue per transaction to get the average gross profit per transaction. That’s a lot. And know that’s a lot. So we’re gonna work through some examples. So revenue group one who wants it? Who wants to be getting big and wants to put their businesses?
Yeah, I don’t do it. Social media. Great. Uh, graphic design. Graphic design. Okay. So you’re doing graphic design, um, all the work. It’s just that you probably only have one widget or are you doing any websites right now or just scrapping cause just doing a website right now as well. Do you have, uh, hours or do you bill by the hour? Do you build a flat fee or combination of both? A flat fee, flat fee, and then hourly after they want more revisions beyond what I’d over hourly after more revisions. Okay. I think you have one weekend and it’s just project. Okay. Price of that project. Okay. Um, that would be your only widget. Okay. So all you have to, do you have a year history at this point or not quite no. No. Quick, quick. How long, how much history do that’s meaningful? Six months is meaningful.
So what you need to do is you need to count every project. So every time you sent the ability probably billed once per project rate. Twice per project. Yeah, I take 50% and then got it. Okay. So every project you’re going to have two bills. So, um, you want every project, don’t, don’t, uh, don’t separate. Okay. So you want to count up the number of projects in six months and you want to see your total revenue in six months. Take that total revenue divided by the number of projects you do. You have your average project and site. Okay. That’s powerful number. Don’t worry about trying to differentiate between, you know, did they call me to do this? You know, did they call me to do a Dolby type document or a, uh, a picture image? That’s where entrepreneurs are going to get sucked in. So that same graphic design is one of your competition out there and they’re trying to trap, you know, how many times did I do a banner?
How did times that you do a print dad, how many times they do that at the end of the day we’re gonna have to track the customers. You have no idea. Do they want something for my website that they want something for a flyer? Do they want something for this or that? You just know on average, every time the phone rings I’m going to charge this much. Right? That’s the number you nothing. Okay. Um, we have, what are we gonna do? So you had the supply store, right? Do you sell stuff online too or just in stuff? Yeah, just on the star. So every time someone walks through the door, you can do walk through the door or just the transaction receipt depending on how hard that is to track. Right? So every ticket out you want to know the revenue for a year and how many tickets up near and you know, they your average sale, that is a more powerful number. Do you do any installations on site or just in store?
So you’re doing like medical stuff perhaps about back and forth for an ambulance? Yes. Jocelyn, like yeah, but they just take it, walk up the door. You never go and put it in the ambulance for them. Yeah. So that’s probably your only way. It’s not uncommon have one widget and you need to know that number. Right? Um, don’t think like three is almost the extreme on, we’re almost getting a little too detailed. Limited to three. No more than three. Does that make sense? You’ve got one ticket I bought a second. How do you measure your waist? Such great people like us from a number of monthly recurring customers. Yeah. So your rep, do you charge the same price for everyone? Awesome. Do you already know? You don’t even have to you to know that where you just me rephrase appraisal rating, right? Yeah. So you don’t even have to divide. If you have the same one. If you’ve got very Texas or your then you go to go through the exercise of count the number of subscribers and then you wanted to buy by the revenue. You might have to divide that number of months if it changed. Right. Cool.
I have a, I have an example of how I’m getting very detailed about choosing your revenue schemes can actually impair you or business planning. Um, I’m going to go back to the mission statement that you have, which is the childcare there first, um, analysis was how many kids in an age group they need to be able to make their monthly sales while in fact they actually just need to know how much monthly fees or how many kids that they’re going to get monthly fees from, um, to get their business goal because um, the first time they were doing it, they were trying to limit how many kids they will have for age group will impact on your first year. You just want to get home, wait, how many kids do you need to get into the door to get your business going? Um, for them they were thinking, okay, which one is more profitable? Having five kids in kindergarten or no kids in kindergarten or, or none at all. One five. They just needed to know how any monthly fees are fixed monthly fees the, to get into the door, they limited their, uh, decision into how many kids do need for the child when they could have made that revenue. And so, yeah.
And then think about how hard that would be. I, I’m, I’m opening a daycare and I only want kids from four or five because that’s my most profitable. And you’re trying to market that and they come in for a Casa. Uh, it’s not, it’s just not doable if you can’t get more detailed but not in the business planning process at this stage or an annual business planning process. If you’re viewing these numbers month to month, that’s something you can look at the market deeper analysis. But the buying process, you always have a hundred percent correct. And you know, it’s a common thing there where they’re planning on so many variables. This is a plan, this is a projection. You’re just not going to have enough data. Anybody else’s struggling to find their widget in their business.
Hmm. I like kind of going back these things that I offer when I offered like just one really super simple thing. Things were flowing. It was good. Yeah. Now like, because my customers kept asking me for more stuff, I was like, yeah, okay. And I found somebody to don’t do that. But now I just kind of feel like I’m gummed up in managing either my contractors trying to find all this other things and I don’t have the momentum anymore than I did four and it’s kind of really annoying. I kind of just want to just get rid of all my contractors and be like, Hey, sign Arra I know to focus back on this and if my customer has asked me if I’d be like, I don’t know, uh, maybe you could find a white label agency that can do it and that’s a little bit more professional or just not include that. My package would be like, no, this is just me.
Yeah. But in order to make that decision, you need to know what the average contract was, right? Cause as soon as you approach them to do a white label, they’re gonna well, how big is each project? Right? That’ll affect how much they’re going to charge. Right? Maybe all your average project that was bucks and they’re happy. You don’t charge you 600 bucks in and you make 400 bucks or just passionate paperwork across. Right? But if the average project as 100 bucks, they’re like, I don’t even want to touch it for less than 300 per grade. So that average number, it’s a powerful, powerful number, right? Is that what you can afford? Ultimately we is the marketing initiative. But if you don’t know it, you don’t know how much you can spend to get someone in because you’re marketing niches aren’t going to target, you know, break down detail.
Right. Most business have, you know, big bronco mean prop. How many inventory items? Uh, well I guess like right now. Yeah. Yup. Grapevine you how many inventory? Thousands. Right? Yeah, no idea what they’re coming in the store. But if you knew how much an average they spend into a store, now let me know how much an average we can stand to get somebody out. Right? Um, okay, so that’s where we’re starting there. No one’s started. Everyone knows their widget treats. Doctors don’t need to look at different kinds. Just the dog treats total. You sell them in the store only per box. Per Box. Okay. All retail in the store or I just do markets. I don’t have this. Okay, so you’ve got markets, so, okay, so they, yeah, so every trans, so some of your clients, some of your customers might buy one box and they might buy three boxes, right?
Right. So you probably want to know what that average ticket size is, right? So when you ring them up, how much is that? Right? So you’re just looking at all of your transactions, count up the number of transactions, divide that by the total divide. Take total revenue divided by the number of transactions. And that’s your average sale size. That’s what you want to know. Because they might you, even though you have a set, the price per box is it different types, different prices, but you might find that my buy more than one box, right? Yeah. So that’s good enough that you want to know that.
I don’t have a business, but it’s more of a hypothetical. So say it’s a service industry, maybe a small per second, you would have massage or a pedicure or your retail sales. Yeah. So what’d you do? Average, average in walking through the door. That’s a good one. Because you have a retail sales I, I’d call the new teachers because the chancellor, the margins on that are drastically different. Yeah, right. You might be marking on the products by three x three and the massage therapist and all of the times they’re getting 60 or 70% of their ability. So you probably want to have to for that home. And that’s the reason why there is a flexibility to the three because then the margins might be grossly different from a or B or c. You might make significantly more or less all of the product sales and they do have a person providing the service as a great example. Anyone else have an example of there might be more than one revenue stream in their business or proposed business? Yeah, I would call the company the website.
Yeah. So clothing company and you pop up shop and website sales, right? I mean that’s not to eight till two. Yeah. I don’t actually think it’s online and in person sales. So I would probably want to know those two budgets because they might look like in your online marketing and be slightly different than we probably are going to pay it. So I would have two weeks in a year I’d have to revenue accounts for online sales and you know, pop up market or wherever you said just in person says right. I was doing that. Um, anyone else who were more so and then you get your average gross profit per transaction as well. That’s one of the things on the validation, really curious on this one, who actually knows what that number is. Um, and don’t feel embarrassed.
I usually, if you probably did. So we got that widget. Now the attention spent, the next part that deals with differentiation, the attention span of your ideal, like the buyer is short, trying to communicate to them that you’re everything to everyone is impossible and not prof will pick no more than three. Differentiation strategy to focus on delivery and marketing, uncommon diff delivering and marketing on a call. Differation [inaudible] strategies and we have them listed out. So everyone wants to say that they’re good at all of these, but in reality you might be good at all of them. But what are the three that you are the best at, you know, if you’re an electrical company or do you do most that critical trickle company argued the quickest to get out to the job site. Um, do you specialize in a specific type of lighting? Maybe you do data cabling.
So we’re going to go through them because your customer doesn’t want to know everything. They’re just going to ignore your ad. If you’re trying to market to these people, even if you’re trying to sell them on something, they want to know what you do better than everyone else. So the focus on a niche customers. So we put it here, describe a niche. The niche focus helps the business differentiate itself from its competitors. Describe how it would be difficult for the competitor to replicate your business in this area. Um, so you need niche customers. If you are an electrician that only did a wiring for a surgical groups, very different work or breweries, I think you told me about apple before, right? Various specialized, very specialized, right? Um, well that’s a, that’s a, a really niche customer. Um, unique features. Okay, so you need features. So you have an exclusive, I’ll just run rate through it as anyone else.
Another business would we go. So unique features, you’re the only one who carries a certain type of lighting that has this many lumens, right? It’s good. I’m just going to be brighter. You have it. This is the feature that you have that you can sell those people. Maybe you’re not the only one, but you’re one of a few can do it. That’s, that’s fine too. Location. And again, you might not be the only one, but you know, it’s there. Is it particular to your location? You know, you’re really responsive. And this location, the only one providing just in this location in the city of Edmonton and the province of Alberta. Um, so is it location, facilities, equipment and software? Soul, you’re an electrician, but you have a huge picker truck and you can go 50 feet up in near other competition doesn’t need to be to have to rent it and he’s going to, he’s going to have to price that job higher.
Okay, so you have a particular piece of equipment or software or a facility that’s going to help you do the project to a higher quality or faster, uh, branding and marketing. You’re super memorable. Okay, so branding and marketing, um, you know, cars cost less in Wetaskiwin. Everybody remembers that you’re a car dealership in aspect. Is that what you’re, you’re banking on? If you’re going to go in and Randy and mark made, you got to keep doing it, you can’t live off of it. And um, payment methods in terms. Okay, so maybe you’re the only one who offers financing. Maybe you offer a monthly B and everyone charges by the project. Okay. Um, maybe you would give a 60 day terms and other, okay. Um, the number certification, the experience, 10 or longevity of staff. So this is different. This can be a startup business to soul.
You’re an electrician and this is a startup business, but you’re a master electrician for 30 years experience. People probably are going to want to know that, right? But it’s different than organizational longevity. Organizational longevity is the company has been around for longer and that could be something as well. Convenience and customer experience. Maybe there’s something involved, you know, coming into that spot that’s completely unique than everywhere else, right? They’re getting the warm hand towels and the way in, you know, they’re getting a chart of, you know, the pressure points on the body and what’s, what’s tidy wants nod or whatever. So there’s a different metric of customer experience. Pick no more than three. Everyone’s going to go through their business and say they’re going to define ways that they differentiate themselves in all of these categories. But what are the three, no more than three that you’d want the best? Then
everyone gets free circle.
Then identify the geographical area and three main characteristics for your ideal and likely buyers. Consider age, gender, income, marital status, family status, interests, et cetera.
That’s really straight forward. Um,
what I see are business owners and they’re going so deep into their market, uh, a third target market. If you got to remember, you are a small business. You are not coca cola. You’re not going for 48% of the market. You’re going for probably less than 1% of your market.
He’s have to know, lose enough in who you have to target. You know, some of you might have in theories specific business. You’re right, there’s only a hundred ideal and likely buyers. There’s only less than a hundred. That’s going to change everything, right? Um, can you spell, send, sell, um, you transport, you, you serve as railcars well, there’s an old niece, so many people who own rail cars, you’re not going to sell it to everybody. Right? So we’re in that pocket.
One to three sentences concerning the market, uh, the market trends in your industry, one to three sentences, market translators. So her market is soft free. Now, uh, the trend in the electrical industry is people are moving to led lights cause the more energy efficient,
it doesn’t have to be overly complex.
Identify three main risks with your business. Is it your profitability, cash flow, business occupant of owner or acquiring new customers, losing customers and embracing pressures, legal, regular results list and supply chain human resources. You know, which ones have you seen?
Let me see all the time. Um, well first of all, our cashflow as he said, it’s one of the three. Yeah. Um, and acquiring new customers for sure. Um, what did they do on the profitability and cash? Like, what are some ways that we’re actually going to mitigate those risks or profitability and cash flow or profitability and cashflow. Her first of all have a business plan. Yeah. The actual projections. Uh, you get someone that actually consults with you and I’m walking through your business plan and um, ever meet that projection should be able to tell you, um, that their assumptions I should be, uh, goes in line with your vision because they can have a totally, completely hits the spot. And again, when example, going back to ditch out here, you might have a, let’s say your vision is to have or to reach people that are, are parents that are earning more than the average. Um, um, Edgar you won’t be able to mark it on or sorry, project that. I’m sorry. You won’t be able to mark it on. Um, lowering your prices and having that projection. So those, um, those inefficiencies, it has to be in line with your, um, with your, your business.
This is one of the business owners don’t consider they’re all high on their business. They’re talking about everything go right. You need to identify the top three things I’m going to go wrong and what you were going to do to mitigate those risks, what are you going to do to mitigate those risks? What are you going to do when that happens so you can survive. So do you have it considered those risks that, do you have an list of the non, this is the one word you need at least three need to do for you. What are the top three risks that you think you’re going to have the business, what you’re going to do to mitigate those risks or you know, survive and things come to fruition. Um, go to the next page. I mean a little further in this section I talked to Mike.
Um, you wanna identify five competitors in the same or similar industries along with competitors, a singular main differentiation or competitive advantage. So usually there’s one person in your industry has been around forever. There’s another person in your industry, the cheapest. Um, there was another person in your industry. You guys are going after a niche crowd. You want to identify five. And he might be a similar like similar industries. Um, we have clients who do all kinds of things, but we have one client who owns the all pulse studios in editing and uh, you know, there is identifying competitors. We’ll, there’s not that many most of use, but there’s other crossfit places in when we’re competing for fitness doublers right. Um, so we’re looking at the fees for that. That will be one of the competitor. So it’s not something I don’t always someone doing exactly the same as you.
Usually the people buying from you over there, you’re competing for a singular source of funds. Right. So consider that same or similar industries as well. Uh, we want to identify how many existing customers are likely to repeat in the next two years. So how many customers do you have on your list atlas right now? Every service to date and how much do they will buy in the next two years. Okay. So you, uh, you had a hundred customers today and maybe in the next two years, 20 of them are going to buy it again, you know, pretty easily up the next sort of 24 of them, one every month it’s going to fly from that previous list. And then, you know, start looking at how many new customers we need to hit our projections. Um, and then you want to consider, and we’re going to get there, there’s another section coming up above marketing is, and it might change your mind on some of these, uh, but you want to quantify the number of typeline initiatives per month.
So business owners always come to us to say, I’m going to do referral marketing or I’m going to drop flyers or I’m going to run Google ads. And they come up with the how, but they don’t come up with the how many. Okay, I’m going to drop flyers and get a hundred customers. Okay, are you going to drop 100,000 flyers? That’s kind of that you go on to have the math that’s got tie, I’m going to do networking. That’s not a good enough goal. How many networking events am I going to do? A 10 for fun, that’s better. I’m going to run Google hours, I’m going to spend thousand dollars a month and be the last one. That’s a real goal. It was that sort of initiatives. You know what you’re going to do to market your business and then how many in the marketing section we have coming up might change your mind on some of the notions that you have.
Um, you want to scrap that one cause I don’t know what it is, right? All the steps in the sales and followup process know that I’m going to sell this way. These are my steps. Customer calls in a, you don’t want to go, I drive out to the site. I did email and Nicole I call back on the phone or I go back up to present. What is that sales process look like? Write it right out. Okay. Write a paragraph concerning the locations and facilities, right? A pair paragraph concerning the equipment and software. Write out the steps in production for all the steps and providing your product conserves. So once they sign, now do I have to do, now I’ve got to pull the permit now I got a regional materials and then I got to do a site visit and I got into a followup visit when the project’s done.
What are those steps? And delivering the service for out and not spend more than four hours on this. So we’re not writing masterpieces on each one of these because whatever you had this year, um, if you’re running a business, you probably going to change next year and that’s, that’s a good thing. Um, great out the top 10 milestones. So milestones are extremely important in the projections. Let me break that down. I want to hire my first staff member by this date. I want to acquire my storefront by this day. I don’t want to acquire the major piece of equipment by that date. You need to know that because that’s going to affect your projections. If you don’t know what those are, if you don’t attach dates to those milestones, those projections are completely wrong. So what are those major milestones? You know, you don’t have to have a milestone for everything.
I would say no more than 10 major milestones. I want to have my website up by this time. I don’t want to have a staff recruited by that time. I’m going to have a new storefront by this time. You don’t even need 10. I would say no more than 10. Um, you know, I would have the least execute by this time. Uh, identify key staff, their title, experience, like this, length of service, cases of responsibilities, identify the general staff, identify how you’re going to recruit and retain them. And we have a section coming up on that as well. Then if I, the current key suppliers, but what they provide and potential replacements, and then it’s in bold rate at the end, you’re going to hire someone to critique him for my projections on this vision. Do not do the projections on your own vision. So y’all, when we do business plans, do I ever do that myself?
No. I normally, when would you business class? Uh, our team would be um, uh, sorry, assigned to do the business plan and it gets reviewed by manager and then it gets reviewed by Josh. Yeah. I could not do the business plan as well. If I had to do it myself was supposed to be the expert. I can’t do it as well because you know, staff number one is going to have some input in it. First of all, the owner has a lot of input and staff number one has an input. Then manager number one hasn’t been implemented. It’s going to be a better plan. It’s a more comprehensive plan. The idea of business plans is to poke holes in it before we execute strategy. Dr Pat Yourself on the back and what can go wrong in this thing? Where are the holes on it? What can we, what can we poke at it?
Um, that’s really the way to do it. If you can’t afford to hire someone to do projections on your business plan, you might want to consider your gear. If you should be working, first of all, but if you can’t afford, you’re going to go for it and you want to do it for free. Get someone else to do it. For you to get a friend to do it for you, get then the vocals on, cause you have absolute tunnel, you’re just going to have tunnel vision. You can’t poke holes in your own strategy. It’s like anyone ever lost their keys and then someone else found it, found it for them right away.
Yeah. Well imagine if there’s $100,000 in the line. That’s what you’re doing by doing your business plan yourself. No. The one time, um, you know, instead of taking another hour to find your keys and you’re going to lose $100,000 when someone else would have picked it up five minutes. That’s kind of the reality of doing business funds is, you know, you’re in a a, uh, you’re basically looking at it in a tunnel, right? Um, and most business owners, they only seen lots of times they’d never seen any business. This is the first time when they’re seeing, maybe it’s the second one, maybe they’ve worked in business and now they’re seeing this one and they’re using a wealth of experience of two companies are using two companies. I’ve done hundreds of these things, hundreds and was still learning something. Um, so there’s no way you can poke holes in your own.
You want to show it to someone else that they can vocals on it and then someone else can do reasonable projections based on those visions because what someone else thinks that you can get out of that vision, what you think might be two different things. So that would be the desired approach to business planning. And the big key is is that it’s never more than four hours. I just don’t think it’s not that necessary. I mean cans been more but not to the extent that you should be delaying some of your marketing initiatives. Okay. You’re better off doing and how data visible every single year rather than doing 40 hours the first year because you’re going to learn so much, you know he, I mean you’re over there, you’re considering using a white label and that was it in year ones, business plan and it might make perfect sense in year to visit by changes. How valuable would be that first year of business plan that you spent three weeks on it and I mean you better off maybe, you know, sending you off to another hundred cold emails, great opinion, much better off, right? There’s little time is valuable, but to a point it hasn’t been. It is a super valuable tool but it’s not something that you don’t really, the more time on the better. You’re getting too precise as anyone have any questions on that?
Hello? I just want to add on, um, just going back to the quantifying your stuff, most of the business owners that are moving to face days like, um, have a mindset that’s very enthusiastic and very excited. And most of the times the, the projector, the projection is when you’re appointed by a dog is a little bit too optimistic. Um, and, and most of the time, um, do you plan on capacity as opposed to, um, Yo realistic goal if you have, again, if you have, let’s say, uh, I care you won’t stop your, um, your daycare based on, um, a full, um, a full daycare, you’re going to have five, you’re going to start at five, six, seven. It’s all going to start, uh, very little. And, um, with, in terms of mark, uh, marketing initiatives, make sure it actually goes with your schedule. Yes. You have, um, let’s say you have on your marketing initiative, I’m going to go into a networking group, um, 10 times a month. What if you don’t have that time in your schedule?
Yeah, that’s a great one. And that’s one of the reasons why we ordered this, this one, uh, you’ll this whole presentation in this order, remember this schedule, personal finances and business plan is if you say, you know, you’re going to have, you know, a thousand electrical projects next year, that means you have a big 3000 jobs. Where is that on your calendar? And he’s no sense. Right? Um, so you know, thinking about that, that’s an excellent one you way brought up is tying that people’s projections back to your schedule. We put a rate on our visit planned that schedule that you see, we’ll put rate on our business plan. And the bank always asks me, they’re like, Josh, why do you put the on her schedule a plan that’s like, they don’t understand that the projection is not realistic. I don’t understand the schedule. I have a business owner wants to go from a million to 2 million and then oftentimes in lots of types of visiting, they have to do twice as many estimates. Where are those estimates in their calendar? If not, who we are they going to hire you to do them? I don’t know what it’s about. It makes sense that business owner’s time, 168 is the most important number. Um,
these projections that we have tied back to that as an excellent. Anything else?
Okay, so I think that’s, uh, uh, we’ll reconvene at 1:00 PM. And what we’re going to teach you after lunch is either I’m going to give you $100,000 worth of value after less. I’ll take the line out of the people that I’ve heard, I’ve heard, I’ll go, I’ll keep bragging on what’s wrong. He said, Billy Mills of the value goes up. I will show you what the guys who charge $10,000 a month for Seo and how simple it is.