Edmonton Business Consultant | Business Plan Problem Vision & Mission
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I have them at the beginning, those financial projections, I’m always doing the financial projections at the end. We’re working through all of the sections of the business plan. You’re flushing out what we’re going to do, how we’re gonna do it, you know, what are our strategic advantages, what our marketing initiatives are. And then we’re doing some projections there on, yeah, I can see the whole why with these two. I can be [inaudible] cause it’s not, hi, thanks for tuning in for another episode of ask Sperl CPA today as the Edmonton business consultant, we’re talking about the business plan executive summary again is the having a business consult. We’re talking about the business plan executive summary. I Have Tyson here with me again. Right? Tyson, you, you’ve done it a few business plans now how many of you think you’ve been, you know, really, I dunno, 10 10 business lines. Yeah, they started to learn a couple of the INS and outs of different sections that they have. Right. Um, so the court that we have here today, is it Benjamin Franklin quote one of the founding fathers, United States. And we use it a lot when it comes to visit plants and it says if you fail the plan, you are planning to fail. Paulo Alto has run the numbers for us and they’ve come up with the business owners who do a plan are 50% more likely to grow their revenue from top Business Consultant!
The business owners don’t do a business plan. And the story that we have here it we’re up. We have entrepreneurs who are making business plans often don’t realize how important the executive summary Section is and how much information you can get into it, you know, in a, in a short little area. Uh, so tasted what are the questions that these business owners should be asking? Yeah. First, do you start with the executive summary and all your business partners? 100% executive summary is section number one in each and every business plan. Uh, you know, previously now and I was suspect in the future. We’re not going to deviate from that strategy. We’re always starting section one executive summary First. I am, well, some bankers and investors only read the executive summary Section. That’s why we always start with it first. So I mean, some people could argue that you should start with the company overview saying you know who the company is, what the year end is, what this, who the shareholders are.
The problem is there is a lot of bankers, uh, and you know, potential investors out there who won’t read. They’re too busy, they won’t read anything else other than the executive summary. So if you don’t get it in front of them quickly and get the information that you need in it, um, they might not see anything else. So you want to hit them with that hook, that executive summary that has a little bit of everything and the most important stuff in it right up front. Okay. Should it include the most important information about the business? Yeah. You gotta have everything you need. You gotta write it as if someone is, you know, you need to a, educate someone on what you’re doing. Uh, B, give them enough information to make a decision on if this is a worthwhile investment or if you’re worthwhile a lending risk to them. Uh, because that might be your only opportunity, uh, to talk to someone really, uh, you know, these are your opportunity to communicate with someone that you’re not going to get to have a, a one-to-one on at some point. So you’ve got to put everything you need, the most important information about your business in that executive summary. And you can also use it for yourself. And when you go back and review your business plan, um, you might not have the opportunity to read all of 20, 30 pages of it, but maybe you can go back and brush up on the executive summary when you’re busy and make sure we are we on unfocus are we, you know, accomplishing what we set out to do. All right. Why do you put the problem, vision and mission at the top? Uh, I, the problem, vision and mission I think has to go with the top cause it really speaks specifically about who you are so just call us now to get top Edmonton Business Consultant today!
You know, people only buy things to solve a problem. You know, your vision is something that’s a longterm goal that you can count into. Your mission is the things that you’re going to do each and every day, if it’s written correctly. So if you, if they’re written ethic effectively, the problem, vision and mission are going to, they’re going to, um, really established a whole heap of information to the other parties. Now, if they’re generic Babel that a lot of people use you right, then they’re not going to contribute anything. Um, you know, if there are eloquent paragraphs that say nothing and they’re everything to everyone and it’s not really going to be useful, but if they’re really succinct statements, they can, you know, um, give a whole bunch of information very quickly. What do you include or what do you include in products, services and margin section? So the products and service and margins are really, really good. Normally gonna look at three different types of, uh, revenue streams or transaction types of the business. So not everything on the menu, but I’m going to group like items into one revenue stream and I have no more than three groupings normally is, is useful too. Um, and then we’ll talk about, we’ll give a description on exactly what you’re selling, you know, description of that product and service. Um, and then we’re going to talk about what the average transaction prices. So the average revenue pool, uh, for that, uh, um, revenue stream. And then we’re going to give it a description about what the costs are, you know, is it subcontractors, is the cost, the materials, um, you know, w we’ll talk about what those actual direct costs are and then we’ll give an average transaction cost, uh, for each transaction and then we’ll finish it off with the average gross margin per transaction. Like I said, we’re normally doing that for no more than three revenue streams will group common transactions into a single revenue stream. Uh, because you don’t want to make it too complex. It is a plan. Okay.
Should you have a graphic cool. Overview of financial projection in this section. It’s nice. I think it’s nice. I, I, it’s hard to do if you don’t have the right software, it’s going to take a lot of time. Uh, you know, we have software that you know, is going to generate a little bit of revenue growth and net income of the business, and we’re going to put that so it’s not, you know, the really comprehensive information that’s in the financial projection, but it’s a good overview. It’s going to be that eye catching hook to make them keep reading to the rest of the business plan and the detailed financial projections. So the making it visually based, uh, easy to read at the top. Please reach out now to get top Edmonton Business Consultant today! And the executive summary is, I think it’s a, it’s a good thing to do. Okay. Do you make these financial projections at the beginning or the end of the process? Please give us a
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Yeah, so even though we have the let the beginning, those financial projections, I’m always doing the financial projections at the end. We’re working through all of the sections of the business plan, you know, flushing out what we’re gonna do, how we’re gonna do it, you know, what our strategic advantages, what our marketing initiatives are, and then we’re doing some projections they’re on. So to do any projections in the executive summary, although I want those high level projections there, I can’t do them until you get to the end of the planet process. And then you do your detail projections, then you go back to the executive summary and put that overview of the financial projections, you know, in graphical form, easy to read there. Uh, so it shows up first. Um, you know, to Hook people, but you certainly can’t tackle it first when you’re actually doing the business plan. So just give these guys a call now to get the best Edmonton Business Consultant today!
Right? What is included in the market? Differentiation factors of the executive summary. So the market differentiation factors, this is really going to drill through what he knows sets you apart from your competitors. Um, so you want to look at the things that you do better. Now there’s, there’s a list of things you know, people are gonna focus on. You know, [inaudible]. Some people are gonna go after niche industries. Some people are going to have unique qualities and features of their product or service. Some people, you know, have really experienced staff. Some people, businesses have been around for a long time. You know, some people have, you know, really good payment terms or really effective branding, but in that market differentiation factor, you know, in that executive summary, we’re going to establish what those differentiation factors are and we want to be specific about it. So the key is, is that, you know, all of these things, there’s probably a number of things that you’re doing to set yourself aside from your competitors. Um, but you want to boil down which ones are the most important, which ones are you truly committed to being the best at? Because when you try to do be the best at all of them, you only be good at some of them. Uh, you’ll only be good and, but which ones can you truly be great at? Let’s flush which ones those are. And let’s put that rate in the executive summary. Uh, cause that really clarifies what sets us apart.
Alright. Um, what is included in the target market? And maybe so the target market of the executive summary. Most small businesses, it doesn’t have to be this, you know, details, statistical analysis with graphs and charts, you know, it can be as, as simple as, you know, we’re outlining, you know, we’re targeted on the, you know, businesses in the Greater Edmonton area or the Greater Vancouver area or the Greater Calgary area. And maybe we go just a little bit deeper. And then we were looking at homeowners in that area. Or maybe we’re looking at, you know, female homeowners in the Greater Edmonton area with income, household incomes above $100,000. You know, it’s really just a, it’s an overview of exactly what we’re doing. Uh, you know, the problem is a lot of people, they either don’t look at that at all or they go way too detailed into it because they think that they’re, you know, Pepsi trying to beat coke and they need a lot more detail on the subject. Do you want top services and Edmonton Business Consultant ?
Right. What is included in the financing required section of the executive summary, the financing required section. You know, we gotta be specific on what we’re asking for. You know, are we asking for credit card? Are we asking for a line of credit or are we asking for a term loan or asking for a mortgage? Just so you know, what’s the mortgage going to finance, what’s the property, the cost of the property that’s going to finance. And then you know, we want to know things like what’s the interest rate that they’re requesting along with the amortization period or the the, the tire payback period, if you will. Um, because we don’t just want to ask make asks, but we also want to be specific on those aspect because someone could say, yeah, I’ll lend you $1 million because I lend you $1 million. That 15% you’ve got to pay it back in five years.
Well that doesn’t matter. They might as well as said no because you needed something that was at 5% and you had 20 years to pay it back. Um, it’s not going to work for the cashflow perspective. So I think it’s important to, you know, include that financing, ask rate in the executive summary and be very specific on the ask. So I think that’s what we have here today. Thanks so much for tuning in. As always, please hit the like and subscribe button so we can continue to deliver your tips on how to beat the odds at business. Be sure to call us now if you need the top services and amazing Edmonton Business Consultant today! And you know, as always, you know, we would enjoy any comments that you have. Please leave them below so we can respond back and use your input for future videos. Thanks very much.