Part-Time CFO | How Much Time is Needed to Make a Plan
Even though many business owners understand that a business plan can help them succeed says part-time CFO. They still are not creating one. End that has caused people everywhere to wonder why.
Why would a business owner not take the time to create something that’s going to be so helpful and them succeeding. In fact, Palo Alto who is a software Manufacturing Company surveyed small business owners. In order to find out if having a business plan was in fact a predecessor of success.
What the company found. Was that entrepreneurs that had a plan or 50% more likely to not only grow their revenue but Succeed in Business. Over and above entrepreneurs who did not have a plan at all.
With this kind of success levels. It’s sometimes shocking to find out that some business owners are still resisting creating a business plan. Part-time CFO wanted to find out why.
It turns out, that the reason why many business owners still aren’t rushing out to create their business plan. Is because not only did they not know how to create an effective one. They also think it’s going to take around 40 hours of work. And I’d only do business owners not have 40 hours. They don’t have 40 hours to put for the tasks they don’t know how to accomplish.
Which is why it’s extremely important for an entrepreneur to find a part-time CFO that has a business plan templates. Because if they do, a business owner should be able to take for meetings over the course of four months. And four hours in order to create the best business plan ever.
The first thing to keep in mind is that a business owner doesn’t need to make it perfect or even pretty. Because outside of a financial institution. Nobody’s going to read the business plan but the entrepreneur.
In addition to that, the business owner is going to change it in a year. To reflect their new circumstances, economic situation and what goals they’ve reached. So it’s more of a working document. That can afford to be less polished.
The reason why an entrepreneur should find an accountant who has a business plan. Is so that when it comes to the tax plans, financial plan, and cash flow projection. They will be able to do it accurately. In fact, accountants who are extremely experienced have a very difficult time creating a cash flow projection that is accurate.
Therefore, business owners with not the same training will have a much more difficult time with this task. And having an accurate cash flow projection will ensure that the rest of the plan is realistic as well as achievable.
Therefore, it’s business owners understand that having a business plan is extremely important to their success. They don’t have to spend 40 hours. They just have to find a great accountant and a business plan template.
When You Need Help From A Part-time CFO?
If business owners are reluctant to create a business plan say part-time CFO. Because they think it’s going to take them 40 hours or more. They should realize that a great business plan shouldn’t take them that long. And in fact, the longer a business owner spends on their business plan. Doesn’t make it any better. Therefore it has diminishing returns
In fact, with the right part-time CFO, templates, and 4 hours. A business owner can create an extremely effective business plan. That is better than an entrepreneur who spends 40 hours without the help of an expert.
The first meeting they have with their accountant or part-time CFO is going to be discussing the entrepreneurs personal circumstances. The reason why, is so that they can tell the accountant what their debt servicing is, if they have other streams of income. If they have dependents, or if they have a spouse who is bringing home the majority of the money.
this will ensure that the tax plan and financial plan is specific to the entrepreneur’s needs. And if the business owner needs to take money out of their business immediately. This will help an accountant create a plan that will allow them to do that.
The second meeting will be the business owner reviewing their tax and financial plan. Ensuring that it reflects their reality. And then an opportunity for the business owner to put their Vision into the business plan template.
Business owners should consider what they want their business to look like, certain goals they want to achieve. And what they want their business to look like in a year. This is very important for the business owner to do. Because they are the only ones that are going to have the ability to do that. Because no one has the vision for their business like they do.
A new third business meeting with the accountant will be for the accountant to show the business owner what recommendations, marketing plan, and schedule they would advise for the business owner in order to meet those goals and to bring their vision to life.
The need to ensure that the business owner agrees that it reflects their wishes and their vision. And that they contain things that the business owner is willing to do in order to find success.
And the last meeting will be for the business owner and the accountants to sit down and ensure that there are no mistakes in the business plan. That it reflects what the business owner wants, and they are going to agree to adhere to it in order to find success.
That’s it, and just for meetings. A business owner can have a well-thought-out functional business plan that makes sense both financially, and otherwise.
My spending only for meetings within 4 months, can help a business owner make the most efficient use of their time. To get a business plan that is going to help them succeed. As long as they follow the plan, and remind themselves to review it on a regular basis.