Part-time CFO | Can Business Plan Be Written In Four Hours
One of the biggest misconceptions about creating a business plan according to part-time CFO. Is that entrepreneur need to spend an inordinate amount of time on it. Like forty hours or more. To end up with a great plan that will help them succeed.
However, not only is this not true. But if entrepreneurs end up spending that kind of time on their business plan. It is likely to give them diminishing returns. And a much better way for an entrepreneur to spend their time. Would be to spend it in their business.
For example, part-time CFO says that business owners can end up with a great business plan that will help them succeed. In four hours of time. Business owners who are spending forty hours or more. Or not likely to end up with a plan that is ten times better.
However, many business owners are not sure what to put in their business plan in the first place. Or where to start. So even if they know they do not have to spend forty hours creating one. They still struggle with how to get started.
This is where contacting their accountant can come in handy says part-time CFO. Because they will typically have a template. That will help them end up with a great business plan in just a few hours.
The first meeting with their accountant will be for the entrepreneur to explain all of their personal circumstances. How much and bill payments they have such as mortgage, car payments, and credit card debt. And if they have any other income or another job that is paying them.
The goal of this the two find out if the business owner needs to pull a salary out of their business. And if so, when they need to start taking that money. This will allow the accountant to end up with a tax plan and a financial plan that is realistic to the entrepreneurs’ needs.
In the second meeting, an entrepreneur will view that tax plan and financial plan. And then he uses the business plan template to write in their own vision and goals of the business.
The recommendation is for an entrepreneur to spend about four hours between meeting to end meeting three on putting their vision into the plan. And an entrepreneur can accomplish this simply by time blocking four hours at one point in the next month. To ensure this can happen.
Meeting three will be for the entrepreneur to review the objectives, tasks, and strategic priorities. That the accountant has created in response to the entrepreneur’s vision and goals.
The business owner needs to ensure that they are happy with the tasks that they will need to work on each day, week, and month in their business. In order to accomplish the vision and the goals that they have described.
And this is how an entrepreneur along with their accountant can and up with a great business plan. In four hours, and for meetings. By doing this, business owners will be able to end up with a plan that is going to help them succeed. Without feeling overwhelmed.
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Business plans do not just help entrepreneurs overcome common obstacles says part-time CFO. Can also help ensure that they are achieving their goals, and increasing their revenue.
For example, a software manufacturing company called Palo Alto. Wanted to do a survey in order to find out how effective business plans were for small business owners. What they discovered, was that if small business owners had a business plan. They were 50% more likely to grow their business. Then business owners did not have a plan at all.
And while some business owners spend forty hours or more creating their first business plan. Even before they open the doors to their business. The problem with a lot of entrepreneurs. Is that they but that business plan on the shelf as soon as their business gets going. And they never look at it again.
Part-time CFO says that a great business plan is actually a living document. That not only needs to be reviewed on a regular basis. But also needs to be updated to reflect goals that are achieved and the financial situation of the business.
Therefore, it is recommended that entrepreneurs spend four hours each year on their business first to create their business plan. And then to update it each year after that. So that they can end up with a great document. Each year that is going to help them succeed.
The reason why it is beneficial to spend time each year on this. Is because the entrepreneur is going to be able to learn so much about their business in that first year. That the information that they put into the business plan at year two will be so much better. Then the information they put before they opened the doors to their business.
Also, when business owners continue to update their plan each year. Not only are they making it better each time I updated. But it becomes a living document. That they can help ensure will continue to reflect how their business is doing each year.
By getting help with this each year, part-time CFO says that business owners can continue to ensure that the financial plan and tax planning parts of their business plan continue to reflect the reality of their business as well as their personal circumstances. And that their cash flow projections remain accurate.
Reviewing this on a regular basis will help ensure that an entrepreneur can continue to themselves of all of the most important strategic priorities they must carry out in their business. And be reminded of why they are doing this. So that they can achieve their goals.
Creating a great business plan is not about spending the time once and forgetting about it. But making it a continual opportunity to review, revise, and implement business. In order to help them succeed.