Part-time CFO | Crafting A Business Plan In Four Hours
Many entrepreneurs say that they did not create a business plan because they did not have time to says part-time CFO. And this is based on the assumption that entrepreneurs need to spend forty or more hours on a great business plan.
Not only is this not necessary. But the more time in not nor spends on a business plan does not increase the likelihood of making it better. Being an entrepreneur diminishing returns on the time spent on a business plan.
It is far more effective for an entrepreneur to spend less time, but more frequently on making a business plan. Then spending forty hours once. That way, entrepreneurs can spend the additional time in their business, accomplishing all of their strategic priorities.
Also, part-time CFO says that business owner only has a certain amount of knowledge about their business before they have experience being an entrepreneur. That the forty hours, they spend as a brand-new entrepreneur. Will be less effective than four hours as a more experienced entrepreneur.
This is why business owners should spend about four hours every single year on a business plan. They can create their business plan in about four hours. And then in the future year, update their goals and the revenue information.
Because the information they will have as a business owner in their second year of business, and then the third year of business and so on. Are going to be much better than the knowledge they had in year one.
But the most important part about the four-hour plan says part-time CFO. Is those business owners will have to continue to spend that time on it. Most of the business owners that right a giant forty-hour business plan. Once they open the doors to their business, put it on the shelf, and never look at it again.
Which is not helpful in them achieving the goals, or knowing what strategic priorities they need to work on in order to achieve those goals.
Therefore, business owners that would love to have a business plan, but think they do not have enough time to create one. Should talk to their accountant about the four-hour business plan. By using their financial plan template. In four meetings, and then four hours of homework. A business owner can end up with a great working document. That will help them accomplish their goals.
By utilizing help from their accountant. They can also ensure that they are ending up with accurate cash flow projections. As well as a tax and financial plan that is based in reality. This way, a business owner will be able to have a realistic plan. That will significantly help them succeed.
By knowing who to turn to, and what they can help with. Is fundamental in helping an entrepreneur get a business plan for their business. Because many entrepreneurs want a business plan, they just think it is slightly out of their reach. By learning this, can make it accessible for all business owners. So that they know what they need to do in order to succeed in their business.
What Is The Goal Of A Part-time CFO?
Creating a business plan is so important says part-time CFO. Business owners can significantly improve their chances of success. Simply by creating one. This was discovered by the software manufacturing company Palo Alto.
They surveyed a variety of small business owners. In order to see if business plans were successful and help them accomplish their goals. What they found, was that small business owners had a business plan. Were 50% more likely to grow their business. Then entrepreneurs who had no plan at all.
But many business owners think they do not have the time or the expertise to get a business plan together. But according to part-time CFO, if they have time for meetings with their accountant. And four hours of homework time. They will be able to get a great business plan that will help them succeed.
The first meeting with their accountant will be understanding what the entrepreneurs’ personal circumstances are. Understanding what their debt servicing is, if they have any other income. Or they have any family members that are helping pay for any household expenses.
This way, their accountant will know what kind of tax planning and financial planning they need to put into the business plan. To allow the entrepreneur to take the money they need out of their business to survive.
The second meeting will be the entrepreneur reviewing these parts of the plan with the accountant. To make sure it reflects their reality. And then the second part of the meeting will be introducing the entrepreneur to the business plan template itself. So that they can put in their vision of the business.
Only the business owner themselves are able to fill this section of the business plan template out. Because only they know what they want to accomplish in their business. What goals they have, and what they would like to achieve as an entrepreneur.
The third meeting will be for the entrepreneur to review all of the strategic priorities and tasks that the accountant has put into the business plan. Based on the entrepreneurs goals and vision.
The business owner must look at their plan. To ensure that they are happy to accomplish all of these tasks. In the timeline that has been outlined in their business plan. If the business owner is not willing to do what is outlined.
Then the accountant and the business owner must figure what needs to be revised. To ensure that the business owner is going to be willing to do tasks necessary to reach their goals.
So that when an on sport takes a business plan back to their business. They know exactly what they are going to be doing each day to achieve their goals and grow their business says part-time CFO.
Finally, the last meeting is for the accountant and business owner to review the entire plan. To fix mistakes. And to ensure that there was nothing missed or overlooked. This zone entrepreneur will take for meetings, and four hours of their own time. Order to end up with a great business plan. Even better than one that entrepreneurs made by spinning forty hours on it.