Part-time CFO | creating a business plan for success
A business plan is exceptionally helpful for entrepreneurs who want to succeed says part-time CFO. And not only are business plans great for helping an entrepreneur reach their goals. As Palo Alto found out in their survey. When they discovered that entrepreneurs that had a business plan are 50% more likely to grow. Over entrepreneurs who did not have a plan at all.
But also, business plans can help entrepreneurs avoid common obstacles or problems. They face will running their business. Such as the three most common reasons for business failure in Canada. Running out of money, not being able to find staff, and not being able to find enough customers to purchase their products or services.
However, despite the fact that a significant number of business owners understand that a business plan will help them succeed. They still do not have one in their business. That is due to a number of different factors according to part-time CFO.
They do not know what all of the information that needs to go into a business plan. And get overwhelmed when they try printing plan. Or, they think it is going to take them or time than they actually have. Such as forty hours or more.
And when business owners are already working twelve or more hours a day in their business. Thinking of trying to find forty hours more can be very overwhelming.
However, it does not need to be complicated. And it absolutely does not have to take a business owner that long. In fact, business owners will get diminishing returns on the time that they spend. If they are creating a plan in forty hours or more.
Because if an entrepreneur can create a rate plan in four hours, spending forty hours is not likely to be ten times better. The reason why is because an entrepreneur only has so much information before they start their business.
That there is a limited amount of time that a business owner can work on their business plan. To make it better. This is why part-time CFO recommends entrepreneurs spending four hours creating their business plan. But then revise that every single year. So that as they achieve goals. And increase in revenue. They can update that plan. To ensure that it will still help them achieve their goals.
They can do this by contacting their accountant. Because their accountant should have a business plan template. And that templates can help demystify the complexities of a business plan.
But also, because their accountant is likely going to be able to help them get accurate cash flow projections as well as financial plans and tax plans.
That is paramount in helping the business plan have realistic and achievable tasks and goals in them. So that it can actually help an entrepreneur reach those objectives. So that they can succeed.
Therefore, if an entrepreneur truly wants a business plan. They should know that by setting aside for hours of time and working with their accountant. He can end up with a great plan. That will help them succeed.
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Business plans are extremely important in helping an entrepreneur succeed according to part-time CFO. But they often do not have one. Because they are already having a hard time figuring out how to do all of their tasks in a single day. Without adding grading a business plan into the mix.
Therefore, part-time CFO says it is very easy for entrepreneurs to learn that they can end up with a fantastic business plan. By working with their accountant. And in four meetings, plus four hours of work at home. Can be enough time to create an extremely good business plan that will help them succeed.
The first meeting that they have with their accountant will typically be them explaining their personal circumstances. Such as how much money they need every month to take a salary in order to live off of it.
They will do this by spending their debt servicing, such as a mortgage, car payments, credit cards, and bills. As well as any other debt that they have. If they have any income coming from any other sources. Or if they have family members that contribute to household bills.
The second meeting says part-time CFO will be for entrepreneurs to review the tax plan and the business plan that the accountant has created based on how much money the business owner needs to take out of their business
The business owner should ensure that this reflects their reality. So that they will know exactly how much they can take as a salary. And when an entrepreneur can start drying that salary from their business.
The second meeting will also be showing the entrepreneur the business plan template. So that the entrepreneur can take it home, and put in their vision, their goals, and but they want to their business to look like into the plan.
Since an entrepreneur is the only one who can do this. It is important that they take time. Whether they spend four hours at home. Or block four hours of time within their day and get it done. This is important to do. Because the accountant will not be able to fake these answers on behalf of the business owner.
The third meeting will be the entrepreneur finding which tasks and objectives, as well as strategic priorities the accountant, recommends that they do. On a daily, weekly, and monthly basis. To reach their goals.
The business owner needs to ensure this is a plan that they can approve of. As well as it is a plan that they are going to be okay implementing and working on the tasks every day in order to reach their goals.
And finally, meeting for is the final plan. Where the entrepreneur and the accountant can do a final review of the plan. To make sure nothing was missed or overlooked. And that there are no mistakes.
This is how a business owner will be able to ensure they have a great business plan. That will help them grow their business. Just for meetings and for hours of their time.