Part-Time CFO | Creating a Great Business Plan
Even though many business owners understand that having a business plan would significantly help them say part-time CFO. They often don’t end up creating one. Because they believe an effective business plan will take them 40 hours or more to create. And they have no available time to spare. Especially as they work 12-hour days, six days a week.
However, business owners need to understand that it doesn’t need to take 40 hours to create an effective business plan. And in fact, any business plan at all. Is better than no business plan.
the software manufacturing company called Palo Alto did a survey to find out how effective business plans were at helping entrepreneurs succeed. What they discovered, was business owners that had a plan for 50% more likely to grow their business. Over and above entrepreneurs that did not have a plan at all.
The interesting thing about this survey was that having any sort of business plan was better than none. Therefore, if business owners I have four hours to spare. They can end up with an effective plan that can help them grow their business.
Business owners contact their part-time CFO and ask if they have a business plan template that can help them create a business plan. These business plan templates can be extremely effective. Because all of the hard work has gone into creating the template. And all the entrepreneur needs to do is sit down with their part-time CFO and fill it in.
These meetings should take approximately one or two hours each, and there should be a boat 4 hours. The first meeting is going to be the entrepreneur telling their accountants what their personal circumstances are going to look like. They will let their accountants know if they need to take any dividends or salary out of the business immediately.
They’ll also let their accountants know if they have any other income coming in, let them know their mortgage, car payments, and debt levels. So that the accountant can ensure that the business plan reflects the business owners’ reality. So that it can be more likely to be achieved.
meeting two will be where the accountant has filled in within the template. All of the entrepreneur’s personal circumstances. They will review financial and tax planning. To ensure that the business owner has no problems with what the accountant has put into the plan.
and then the entrepreneur will be introduced to the business plan template. So that they can enter their own vision of the business into the documents. This is very important. Because only the business owner knows what they want their business to look like. How they want it to grow, and what they want to accomplish.
Therefore, in just two meetings and a little bit of homework time. Can have an entrepreneur with a great business plan. That’s going to be significant and helping them accomplish all of their goals and succeed in business.
When You Are Looking For The Part-time CFO?
One of the biggest myths about business plans according to part-time CFO. Is that a business owner needs to have one before they start their business. And if they don’t, there’s no point in creating one. This is very untrue. Because of no matter when a business owner creates a business plan. It’s going to significantly help them succeed.
And in fact, it can be far more effective for an entrepreneur to have some experience running their business. So that some of the goals that they can put into their business plan. Will have the chance to be a little bit more realistic.
This is often because business owners tend to have extremely ambitious ideas about what they’re going to be able to accomplish in the first year of business. But then underestimate what they’re going to be able to accomplish in 10 years says part-time CFO. My running their business for a little bit before creating the business plan. Can help ensure that they have a more realistic idea of what goals can be accomplished.
And while many business owners tend to work 12-hour days, six days a week. Or at least that’s what the successful business owners do. They may think that they don’t have the time that it takes to create a business plan. And so they don’t even try.
However, with four meetings once a month with their part-time CFO. And business plan templates. Can help a business owner get that business plan that they need. In order to help them accomplish their goals.
Without A business plan, entrepreneurs often end up working extraordinarily hard and their business. But never end up accomplishing what they want. Or never end up achieving their goals. A business plan is a document that can tell an entrepreneur exactly what they need to do every single day in order to achieve those goals.
And in fact, business owners that don’t have a business plan often don’t know what their goals are. Simply because they have not crystallized or formalized their goals. A business plan is a great place where entrepreneurs can actually Define what their idea of success looks like.
After an entrepreneur has had their first two meetings with their part-time CFO. And then put their own vision of the business into the plan. The next meeting is all about reviewing that Vision with the accountant. So that they can understand what the business owner wants. And ensure that the business plan reflects that Vision.
The accountant will be able to make recommendations and put action plans into place that can help the entrepreneur bring that Vision to life.
The fourth meeting is all about sharing with the business owner what the final plan looks like. And ensuring that there are no glaringly obvious errors within that plan. Once an entrepreneur has a plan, however. They need to ensure that they regularly review it. And update it. Because the power in it is that it is a living document. That only works if an aunt nor uses it.