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Edmonton Business Consultant | Business Plan Sections

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Let’s call them the common missed opportunities. The things that people don’t think about. You know there, there’s, there’s common strategies that a lot of businesses can deploy and they’re just not thinking about it. You know, marketing initiatives that work almost in every industry. Having a separate pleatable calendar that that works in on every single business. Yeah, I can see why with these two I can be [inaudible] cause it’s not, hi, thanks for joining us for another episode of asks. SPERL CPA today is the Edmonton consultants. We’re talking about business plans sections again at the end with the business consultant. We’re talking about the business plan sections. I Have Tyson here with me again. I said how you doing? Good. All right. Tyson, any a and you get to do anything interesting over the weekend we’re finally having some good weather here. No smoke, no. This is the place to contact these guys now at Edmonton Business Consultant!

I was just helping a friend set up for a music festival [inaudible] putting on next weekend. Wow. A music festival next week and it’s a set nothing equipment and stage or painted the stage and like painted a bunch of stuff and set up a slit, a 200 meters slip inside. So 200 meters slip and slides. And now you know, when accountants do in their free time secrets l a the quote that we have here today, his bedroom and frank can pool in on one of the founding fathers in the United States and he says, if you fail to plan, you are planning to fail. And the statistic that we always throw up when it comes to business plans is that business owners who complete a business plan are 50% more likely to grow their revenue. Then business owners that don’t. But the story that we have here is, you know, business owners, you know, they think that doing a business plan is a good idea. Now they’ve gotten to the point where they think doing a business plan is a good idea, but they have no idea of what should be included in a plan. Um, so Tyson, what are the questions that these business owners should know?

The asking at first started, most business plan templates are developed for lenders are entrepreneurs. If you do some searches on the Internet, you’ll find that most of the business plan templates out there are designed by the lenders for the lenders. They have all of the things in there that are necessary for the banks to get the information they need to determine if that person is going to qualify for the loan, um, and determine their risk level on the loan. Um, but I, I don’t think there’s specifically develop as much for the entrepreneur when it comes beyond, you know, you’re qualifying for a loan. You will love the Edmonton Business Consultant that these guys can do for you! I think they’re very heavily geared towards, uh, you know, the benefit of the lender.

Yeah. Wait, well, in developing your planning template, where were you trying to [inaudible] great. All right. I was trying to eliminate all of the, let’s call them the common missed opportunities. The things that people don’t think about. You know, there, there’s, there’s comments, strategies that a lot of businesses can deploy and they’re just not thinking about it. You know, marketing initiatives that work almost in every industry. Having a separate pittable calendar that, that works on, on every single business. Um, and, and a lot of the common pitfalls too. You know, what a lot of the common mistakes that business owners often make and how can we get them out in the open marina right off the offset and make sure that, uh, we can eliminate those problems before there’s money on the line. You know, identifying what the three major risks are, the business and how we’re going to eliminate those risks. Um, so I, I think that was our focus is not just to qualify for financing, but you know, how do we guide them to those, uh, common missed opportunities and prevent those common missteps as Edmonton Business Consultant.

Yeah. What is the bank’s reaction when they see your requirements? Believe it or not, the banks, they, they get the information they need and our plans are very much designed that they can get financing with a, with the plans. And they have all of the things in there that are necessarily to the plans. But some of the items that we put in there are, you know, the banks will look at them and they always ask, you know, Josh, why did you include this in the plan? Like why is this necessary? The things like the owner schedule, why did you put the owner’s schedule on the plan? And I tell them, I was like, well, how can I possibly do realistic projections if I don’t know the business I wanted to schedule? If that construction guy is trying to grow his business from half a million to $1 million a year, and you know, where is it in this schedule that he’s going to do that many more estimates and that many more job site visits. So there’s a complete disconnect. I think the bank likes you to grab projections out of thin air so they can check their checkboxes on the ratios. Uh, but I’m more concerned, are those projections realistic? Can we actually hit those projections? Uh, not just making them up to satisfy the, the lenders ratios. Please call us no at 780-665-4949 or please check out as you able to!

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Alright. What’s in the executive summary Section? So the executive summary Section is, you know, we’re starting to look at, you know, what’s the problem, vision, mission and values of the business. You know, what are the products that we’re going to sell, what’s the revenue per transaction, the cost per transaction, the gross margin project per transaction. We’re going to start to look at things like what are those differentiation factors? What sets this business apart from its competitors? Who that target market is, who are we trying to sell this, you know, product or service to. And then usually tying it back to a, you know, if there’s any financing required, if we’re asking for a credit card or a line of credit or a mortgage or term loan, um, or if we’re asking for investment capital, we’re trying to be specific about how much we’re asking for and what the terms of that arrangement are going to be Edmonton Business Consultant.

Yeah. All right. What’s in the company overview section? The company overview section is, is almost one of those sections that’s primarily developed for external users. So this is, you know, telling people what the legal name of the business is, what the year end of the business is, who the shareholders of the business are, and what percentages that you own. You know, who is the accountant, who is the lawyer, who is their banker, who is their investment advisor? These are all of the really granular things that the business owner already knows. But anybody who’s looking at this plan for the purpose of providing financing or investment capital, they’re gonna want to know these items. So rather than create that unnecessary dialogue back and forth, let’s make it as simple as possible for the people that we want money from. Okay. What’s in the market and risk analysis section? So the market risk analysis, normally we look at it in the market, you know, who we look at, you know, how many customers that, that person actually uh, has, you know, uh, how many more customers that they need.

And then the risk analysis is, that’s one of those really specific areas that I feel that’s forgotten in a lot of plans. You know, people are always talking about the positives. And the growth initiatives, but we got to look at the risks and I tend to focus on what are the three most significant risks of the business. And it’s different for every business. You know, some people allow problems with acquiring customers or cash flow or human resources. Uh, there tends to be, you know, a list of four or five, you know, common risks that recur over and over, but rather than wait for them to occur, let’s just, you know, realize that they are a problem off the offset and how they’re going to rectify them. Right. What’s in the sales and marketing plan? Yeah. The sales and marketing plan, we were really drilling into, you know, how many customers we’re need and exactly how we’re going to get them, you know, what exact advertising initiatives we’re going to do to capture those new customers. You know, how many and how much we’re gonna spend, how many times, you know, not just we’re going to do networking, how many networking events we’re going to do, not just we’re going to drop flyers, how many flyers we’re going to drop and how much we’re gonna spend on that. Not just do online advertising, how much we’re gonna spend. Um, you know, I find it, you know, rather bizarre how someone can possibly do projections on growth without truly understanding the metrics of how they’re going to achieve that growth and what strategies they’re going to do, uh, to grow. Right. What’s in the operations strategy section, the operations strategy section. Now we’re starting to look at, you know, where they operate the business from. You know, what’s the square footage of it? Cause there might be operational constraints. For example, if we’re trying to do growth, uh, let’s say if we have a medical clinic, you know, they can only see so many patients at once or a daycare as Edmonton Business Consultant.

They can only house so many kids at once. We have to know what those logistical constraints are. Um, then we start looking at if there’s any, you know, specialty equipment or software, uh, that’s, uh, they have for this business that might be providing them a strategic advantage or maybe, you know, this equipment is going to have a significant upfront cost if we have to purchase it or, or maintain it. Uh, but we’re looking at a lot of those real logistical, um, issues and, and limits. They’re really like constraints and sometimes there are opportunities to, but a lot of times that there’ll be guiding, you know, what that capacity of the whole organization is. Okay. What’s in the staffing piece of fires section, the staff at key suppliers. Now we’re going to break down. At first I start where the owner and I start with the owner’s actual schedule. Um, and a lot of people think is bizarre, but you know, every business has, you know, an owner who only has 168 hours in the week. And it doesn’t matter how much cash you have, you know, you’re bootstrapping it with no money or you have $1 million to start it up. You only have 168 hours in the week. So that’s the constraint. So let’s identify how that business owner is going to spend those hundred and 68 hours and how many are going to be used for business and what functions that they’re going to do. Because then once we establish what functions they are going to do, we know what they don’t have time not to do. So we, we know what time, you know, what time they have available and what time, you know, it was impractical. So then we start to determine who are the, what are the tasks that they’re going to delegate to and who are those staff and how much they’re going to make Edmonton Business Consultant.

So who are those key staff and who, what are those other general positions that they have to delegate things to? Um, and, and those will effectively guide costs too. Cause we figured out, you know what the business owner can do, what they’re going to have to pay other people to do. And it’s going to tell us, you know, how much we’re going to need to fork out for employment expenses for wages. Yeah. All right, well what’s in the projection section. Now when we get to the projection section, I really like to do monthly projections. Um, and I, I see a bit of a disconnect sometime is you know, some financial statements, they’ll just do monthly projections for the cashflow, but they won’t do monthly projections for the income statement or balance sheet. And I find that bizarre because if you don’t have the income statement and the, and the cashflow and the balance sheet all working together, you debt tend to have a cashflow projection that has littered with errors. It just doesn’t work. It doesn’t balance. And if you don’t get to the end of it, it doesn’t work. So I like those, you know, monthly income statement, monthly cashflow projections, monthly balance sheet. And then I’ll tie it back to an annual income statement at an annual balance sheet and an annual cashflow statement. But we get those monthly projections going because a lot of stuff that can happen mid year, and although it works out at year end, you might be broke in the middle of the year and that’s not going to help anybody. So we want to flush that out from that from the get go. 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 you tips on how to beat the odds at business. And as always, please leave some comments below so we can respond back and use your input for future videos. Make sure to call us now at 780-665-4949 or please check out as you are able to! Thanks very much.