Part-Time CFO | Creating a Business Plan
Business owners need to understand that no matter when they create their business plan, it’s going to help them succeed says part-time CFO. In fact, many business owners without a plan end up working extraordinarily hard in their business. But never achieving what their idea of success is.
Not only can a business plan help them crystallized and formalize what does that idea of success is. But also can help them figure out what they need to do in their business every single day. In order to achieve that vision of success.
In fact, Palo Alto is a software Manufacturing Company. Surveyed a variety of business owners in order to find out the effectiveness of business plans. What they found out, was that people who have business plans are 50% more likely to grow their business. Over and above entrepreneurs who did not have a plan at all.
Even business owners who have started their business without a plan. Or have been running their business for years without a plan. Should understand that it is never too late to create a great plan for success.
The first thing that they should do is contact their part-time CFO. In order to see if they have a business plan template. If they do, they should plan for four meetings. Each one a month apart. As well as spending about four hours of their own time working on the visual aspect of their business plan.
The biggest Miss of creating an effective business plan. Is that entrepreneurs must spend 40 hours or more on a business plan. In fact, part-time CFO says there is diminishing returns on spending more time on a business plan. Especially when an entrepreneur is new in the business.
The more time a business owner spends working on their business plan is the last time they are actually spending working on their business. And once they have all of the most important pieces to the business plan down. Spending more time on it isn’t going to help them end up with a better plan.
In fact, business owners who spend so much time refining their business plan. Needs to understand that nobody else is going to see their business plan. Except for maybe Bankers. Who doesn’t care if there’s a flowery language or not? But they simply care if the financial information is solid.
Therefore, by contacting their part-time CFO. And ensuring that a certified accountant works on their business plan. Can ensure that the financial information is solid. And the rest of it is putting their Vision in and knowing what they need to do every single day to achieve success.
Therefore, business owners should not feel like it’s too late for them. If they started their business without a plan. And no matter what their business looks like or how well it’s growing. Having a plan can only ensure that they are able to meet new goals, and continue growing their business towards success.
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It’s very important that business owners have a business plan to follow says part-time CFO. Because just like Benjamin Franklin, one of the founding fathers of the United States of America said. If you fail to plan, you are planning to fail.
It’s the same with the entrepreneur’s business plans. If they don’t make a plan. They don’t know what they have to do in their business every single day. In order to achieve what their idea of success looks like.
Even what’s their idea of success looks like might not be clear. Because an entrepreneur never took the time to really figure out exactly what success looks like. such as how much revenue they want to generate in a year. How many employees they want to have. Or how many locations they would like to grow too.
All of these ideas can be formalized and put into a business plan. So that’s an entrepreneur as well as their part-time CFO can figure out exactly what activities they need to do in their business on a daily basis. To achieve their goals.
An effective business plan will have a financial plan, a tax plan, as well as marketing plan components. So that’s there’s no question about exactly what an entrepreneur needs to do in order to find success.
If a business owner thinks that they would love to have a business plan. And they are convinced of the fact that it’s going to help them succeed. But the thing that’s holding them back is they don’t think they have enough time. They should consider putting in only four hours of work on a business plan. Is it better than thinking they have no time to put 40 hours into it. And so they never try.
If an entrepreneur is using a schedule. They can simply block for hours in one shot. And ensure that they spend the time figuring out what they want for their business. So that they can grow. If an entrepreneur is not willing to put 4 hours into a business plan. They may truly not be interested in succeeding.
Once a business owner has a business plan. They should let some trusted colleagues or friends read it. Because when somebody else takes a look at it. They might be able to see it from a different point of view. That can help entrepreneurs fix errors or omissions. Or find solutions to problems that they didn’t know existed.
Even the part-time CFO and the rest of the accountants that worked on the plan. We’ll have more than one person review it. In order to ensure that it is as accurate as possible. So that the business owner can use it to grow their business.
Even if an entrepreneur tries to do the entire business plan themselves. They should always ask their accountant to create a cash flow projection. So that all of the numbers that are in the business plan are based in reality. And will be more likely to help an entrepreneur succeed.