Edmonton Business Consultant | Creating an Effective Business Plan
Not all business plans are created equally says Edmonton business consultant. Although businesses that do complete a business plan are 50% more likely to grow their revenue and businesses who donít, doing the best way to create a business plan will help set your business up for success now and in the future. Follow this simple guideline for creating your business plan and wants your business flourish. There are three main things to include in your business plan, and they are the three most common pain points businesses face. These things are identified as the most common reasons for business failure so starting your business with a plan on how to avoid them will set you up for success.
The first pain point to address is not hiring the right people, and not keeping the right people on staff. Without a plan in place on how to keep great staff it is hard to creates the company culture that you desire. And as staff leave for any variety of reasons, not having a plan in place for placing them can be devastating. Most businesses that donít have a plan only start looking for staff when an employee leaves, or when a new position opens up. The amount of time a business spends without that person in place is very difficult to manage. Business owners feel forced to hire to eliminate this painful period. The end of hiring a less than ideal person, and their business suffers. Creating an HR strategy that addresses your business and your needs is of paramount importance. Your Edmonton business consultant will be able to help you with this if youíre stuck.
The second pain point to address is businesses who have a negative cash flow. 29% of businesses said stats running out of cash was the number one challenge they faced in business. Without proper planning, and review of your financials, makes it very difficult for you to plan future spending. Contact your Edmonton business consultant to help you create cash flow projections for your business. They will be able to come up with reasonable cash flow projections for your business. The reason to have conservative cash flow projections over optimistic cash flow projections is to guard against the unpredictable events that your business may face.
The third pain point is the failure to attract new revenue. Edmonton business consultant says this is identified as the number one failure entrepreneurs faced in their business. Creating a sales and marketing plan within your business will help you address the problem of getting new customers before you need to. Identifying who your target market is, their purchasing patterns, and how to reach them will enable you to come up with the great marketing plan so that you can constantly be adding in customers to her business. Along with that create a sales strategy whether itís business owner themselves acting as a salesperson, hiring a sales force, or training all employees how to do inside sales.
Putting all these elements together into a great business plan will set business owners farther ahead than businesses without a plan.
Edmonton business consultant | creating an effective business plan
Creating an effective business plan is easier than most business owners believe it to be says Edmonton business consultant. That is because most people donít know how to create an effective business plan. They try to put too much information into the plan, and get overwhelmed with the vast amounts of information they gather. Or else they create a massive business plan and want a start operating their business they put on a shelf and forget to review or update it. Creating a great business plan does not need to take a lot of time or involve a lot of information. The most useful business plans have a plan to alleviate the three most common pain points businesses face in their business.
The first most common pain points in business is the inability to generate new revenue. Attracting new customers is how businesses grow. Encouraging your customers to be repeat customers is great, but growth comes with finding new sources of revenue. Creating a sales and marketing plan around new revenue generation is vitally important to your business says Edmonton Business Consultant. Identify who your target market is, and how they make their purchasing decisions to start building your marketing plan if you need help contact an Edmonton business consultant who can help you.
The second most common pain point in business today is running out of cash. 29% of business owners identified negative cash flow as a major reason for business failure. Entrepreneurs who have a business plan are less likely to run out of cash because they proactively plan out there cash flow month over month. They know when they have expenditures coming up, and are able to free up cash when they need it based on their plan. Business growth such as landing a new contract, hiring new staff, purchasing raw materials are just some of the examples of why business growth requires positive cash flow. Including cash flow projections in your business plan will help you plan your spending.
The last most common pain point businesses face is not having the right team. An effective hiring practices, not training staff, and no employee retention plan leads to 23% of business owners saying that not having the right team is their biggest business problem says Edmonton business consultant. Having an HR strategy in place will help you plan your staffing proactively instead of we actively which will allow you to build your perfect team. Great team will drive your business forward, uphold your company culture, and will help you achieve your goals.
In four hours you will be able to get the most important information based on these three pain points in your business plan. You may be tempted to spend more time on your business plan, that may give you diminishing returns. Itís more effective planning a little bit every single year rather than lots of time up front. Donít forget to regularly review your you plan to maximize its benefits.