Part-time CFO | Create A Great Plan In Only Four Hours
Having a business plan is so important to entrepreneurs’ success according to part-time CFO. That not only can help them overcome common obstacles entrepreneurs face. But it can also help ensure that they are able to succeed over and above the businesses that do not have a plan at all.
According to industry Canada, half of all Canadian entrepreneurs fail in business. The three most common reasons why they fail, that they run out of money, they cannot find or keeps staff in their business. And they cannot find enough customers to sell their products and services to.
Interestingly enough, all three of those reasons can be avoided if an entrepreneur had a plan on what they were going to do to overcome those typical problems.
However, part-time CFO says that despite business owners knowing how important a business plan is. They still are not taking the time to create one.
The reason why is because many entrepreneurs do not know what information needs to be put in a business plan. So they get overwhelmed and do not end up finishing a plan. Or, they think that it is going to take them more time than they have. So they do not even start making one.
It is far more effective for an entrepreneur to spend four hours making a business plan then forty hours. The reason why is because if a business owner spends forty hours in their business plan before they have any entrepreneurship experience.
The business plan may not be as realistic as it could be. Especially since entrepreneurs tend to overestimate what they can accomplish in one year.
Therefore, an entrepreneur can have a far more effective business plan. If they spend four hours each year. Updating their business plan. So that as they achieve goals, and grow revenue. They can set new goals to continue to help their business grow.
They should contact their part-time CFO to help them create a great business plan. Not only because they will have a template that of his owners going to be able to use. But so that they can end up with accurate cash flow projections.
Cash flow projections are used to help ensure that the rest of the business plans tax and financial planning is accurate and realistic. And if entrepreneurs are trying to make a cash will projection themselves. Not only is it more likely to be inaccurate. It is also likely to be optimistic.
In good optimism is a great trait for an entrepreneur to have. In a business plan, it can end up with unrealistic or impossible to achieve strategic priorities. That is not going to help an entrepreneur succeed at all.
Therefore, if a business owner knows how important it is to get a professional to help them with their business plan. They can use the expertise of their accountant. And spend four hours of their time. Ensuring that they end up with a business plan that is going to help them accomplish their goals.
Where Can You Go For Our Help Of A Part-time CFO?
Many business owners do not create a business plan says part-time CFO. Because they do not know what information should be put into it. Or they think that it must take them dozens of hours to end up with an effective plan.
However, it does not need to be that way. By getting help from their part-time CFO. Business owners can end up with an effective business plan with only spending four hours.
How they will do that, is by utilizing the business plan template from their part-time CFO. And setting up meetings with them. The first meeting will be for the entrepreneur to explain what their personal circumstances are to their accountant.
They will explain things like how much money they need to take out of the business to survive. And what their debt servicing is, such as their bills, their mortgage, car payments, and credit card debt for example.
It will also explain if they have any other job or income. And how much dependence they have. And if they have a spouse or family member helping contribute to the household expenses.
The second meeting, one month later will be for the business owner to look at the financial plan in the tax plan that the accountant created based on the entrepreneur’s needs. To ensure it reflects their needs.
They will also get access to the business plan templates themselves. So that they can put their own vision into the business. What to goals they would like to accomplish, what they would like their business to look like. And what they ultimately want their business to be able to achieve.
An entrepreneur spend about four hours of their own time on this part of the business plan. So that it can truly reflect everything the business owner wants to accomplish.
The third meeting, another month later. Will be the entrepreneur reviewing what the accountant put into the business plan for tasks they need to do to accomplish their goals. These strategic priorities need to be something that the business owner is ready, willing, and able to do. In order to succeed.
Once they are satisfied with what the accountant has put into the plan. Is something that they are willing and able to do in order to succeed. The next step is meeting for. Which will be another month later.
Where the accountant and the business owner will review the business plan to ensure that has no mistakes and that it is realistic. The entrepreneur should feel good about wanting to execute the plan.
Through for meetings, and four hours. A business owner will have an extremely effective plan that will help them achieve their goals. By doing this exercise every single year. Can help ensure that a business owner is continuing to set new goals as they achieve old ones.
And can reflect their business is finances and the entrepreneurs personal circumstances each year as things change. To ensure that the business plan will continue to help them know what tasks they need to work on a chair to achieve success.