Part-time CFO | Great Business Planning
This is plans are an important aspect of business ownership says part-time CFO. Because these are the blueprints that entrepreneurs will use to help them grow their business.
Not only will business plans help entrepreneurs understand what they need to do to grow their business and increase their revenue. But also, what things they should avoid doing as well.
For example, industry Canada reports that half of all Canadian entrepreneurs will fail. And they found out that there are three most common reasons why this occurs.
Business owners cannot find enough staff to work or stay in their business. They run out of money, and they cannot find enough customers to write their products and services.
However, the most interesting thing to note says part-time CFO. Is that all of these things could be avoided if they were addressed in a business plan.
Therefore, it is important that entrepreneurs take the initiative to create a business plan. However, many entrepreneurs assume that it will take them or time than they actually have. And so they do not even try once they have opened the doors to their business.
Or, business owners might think that since they did not need a business plan to obtain financing. And now that they have been running their business for a few months or a few years. That it is too late for them to have a business plan.
Part-time CFO says that it is never too late for an entrepreneur to have a business plan for the first time. And in fact, if an entrepreneur is more experienced. It can help ensure that their business plan is more realistic and therefore effective. Then if they had created it before they had any business ownership experience.
And by using the templates from their accountant. Business owners will be able to end up with a great business plan. In just four hours of time outside of the meetings with their accountant. So that they do not have to put aside forty hours in their business. To make their business plan.
Instead, they can spend four hours on the plan. And then get back to running their business. Which is how they are going to succeed in the first place.
Also, the reasons why it is very important that they contact their accountant to help them. Because their accountant will also be able to help them get accurate and realistic cash flow projections. In addition to realistic and accurate financial and tax plans.
Even the most experienced chartered professional accountant thinks it is a tough task to end up with accurate and realistic cash will projections.
Therefore, business owners who try to do this task themselves. Might be putting the rest of their business plan in jeopardy. Because not only will their numbers not be accurate.
But they are also more likely to be very optimistic. Which can end up within an achievable business plan. Therefore it is very important that a business owner let us their accountant help them out with this aspect of the business plan. So that their business plan can help them accomplish their goals.
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Business plans can help entrepreneurs succeed. As well as grow their revenue says part-time CFO. Even more than entrepreneurs who do not have a plan at all.
According to the software manufacturing company, Palo Alto. Business owners who have planned are 50% more likely to grow their business. Then business owners who run their business with no plan in place at all.
They can get a great business plan by contacting their accountant. And using their business plan templates and expertise.
The first meeting that they have their accountant will be explaining the entrepreneur’s unique personal circumstances. Such as how much money they need to take out of their business, and when they need to start drying that salary.
They will discuss things such as income they may have from other sources. To their debt servicing, including mortgage, car payments, credit card bills, and household bills as well.
The second meeting will be the entrepreneur reviewing the tax and financial plan that the accountant creates. Based on their circumstances. So that a business owner will know how much money they will be able to take out of their business. And when they should be able to start taking that drop.
The second meeting is also when the business owner gets a copy of the business plan templates says part-time CFO. So that they can put their own goals into the plan. Because only they know the vision of their business. And what they want their business to look like.
The recommendation is for an entrepreneur to do this all at once, and about four hours of time. They can do this at work or at home. Just as long as they block that four hours of time. So that they can have the time they need to devote to considering all the most important goals they would like to achieve.
The third meeting will be the business owner reviewing the plan, especially the strategic priorities and tasks that the accountant put in on what they need to do in their business to accomplish their goals.
A business owner has to be okay with doing all of the tasks outlined in the business plan. Because that is going to be there a roadmap for reaching their goals. If the goals need to be tweaked, to make the tasks a bit more realistic. This is perfect in the third meeting.
And finally, part-time CFO says the fourth meeting will be a final review by both the business owner and the accountant. In order to ensure that there is no mistakes and that truly reflects the business owners’ vision for the business.
This is how a business owner can take for meetings, and four hours and have a great business plan. As long as they are reviewing this plan intermittently throughout the year. As well as doing this exercise at the beginning of every year. They will be more likely to succeed in business than their counterparts without a plan at all.