Part-time CFO | How To Write A Business Plan
When all reasons why business owners do not end up creating a business plan says part-time CFO. Is because they do not know where to start. Or what information should be put in a business plan? And get overwhelmed, or do not even start.
Therefore, it is extremely important that entrepreneurs know what professionals they should turn to ask for help. So that they can end up with a great business plan. That is going to help them succeed in business.
For example, if entrepreneurs try to do all aspects of their business plan themselves. They might end up with a cash flow projection that is not just incorrect. It is also overly optimistic. Which can skew the rest of the business plan? And end up with objectives that are hard to accomplish because of that optimistic number.
In fact, part-time CFO says that even very experienced chartered professional accountants. A cash flow projection is difficult to get accurate. So that entrepreneurs who try this themselves. Are never going to be able to have an accurate cash flow projection.
Since the accuracy of the rest of their business plan depends on this. They should ensure that they are getting the right professional help with their business plan. So that it is as accurate and realistic as possible.
Part-time CFO says that an accountant also is able to help with many different parts of the business plan. Making them a great resource for an entrepreneur to call upon. To help them write their business plan.
In fact, great accountants will have a business plan template. That will be able to help entrepreneurs get a business plan created in just a few meetings and about four hours of time.
The key to the success of this kind of plan. Is that an entrepreneur must do this exercise every single year. That they can update not only their personal circumstances. It the updated financial circumstances of the business. And to update any goals that they have achieved since the last business plan.
Working on their business plan with their accountant for four hours in the first year. Entrepreneurs will be able to end up with a business plan that will help them know what tasks they need to work on each day in their business. In order to reach their goals.
But in future years, the knowledge that they gain from running their business in the past year helps ensure that the information they put into their business plan and the second air is even more effective than the time they put into that plan in the first year.
As the business owner does this every year, their plan will continue getting better and better. Because they will continue to learn so much about their business.
By taking the time to spend on their business plan each year. Can be far more effective than if they had spent forty hours on their business plan in the first year. And then put that business plan on the shelf and never looked at it again.
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Business plans are so instrumental in helping entrepreneurs succeed in Says part-time CFO. That according to Palo Alto, a software manufacturing company. Entrepreneurs with a plan are 50% more likely to grow their business. Then entrepreneurs who do not have a business plan at all.
And if that does not convince business owners to take the time to create one. They should realize that the top three reasons why Canadian entrepreneurs fail. Can be avoided with the right business plan.
For example, 23% of entrepreneurs who go out of business. Say they fail because they cannot find or keep enough staff in their business. 29% say that they failed because they ran out of money. And 42% say that they cannot find enough customers to buy their products and services. Making this the single most common reason why entrepreneurs fail.
These things are all easily overcome the right business plan. Making it an extremely important reason why business owners should take the time to create a plan for their business.
Part-time CFO says that they can use a business plan template provided by their accountant. And in about four meetings, can end up with a great business plan that will help them succeed.
The first meeting will be the entrepreneur explaining what their personal circumstances are to the accountant. Such as what their debt servicing is, if they have any other income. If they have dependence or family members that are helping contribute to the household bills.
This will allow the accountant to create a tax and financial plan. So that the entrepreneur can pull a salary if they need it. And start taking that money out as soon as it is needed
The second meeting with their part-time CFO will be reviewing those tax and financial plans to ensure they are realistic. And then allowing the entrepreneur access to the template, so that they can put their own vision of what they want the business will look like. And what goals they have into the business plan themselves.
The third meeting with their accountant will be the entrepreneur reviewing what plans, objectives, and tasks the accountant has said the business owner needs to accomplish. In order to reach their goals and bring the vision of their business to fruition.
Business owners must be ready willing and able to execute those tasks that the accountant has put into their plan. To achieve their goals. And if not, they can figure out what needs to change. Either the tasks or the vision.
By the fourth meeting, the business owner and the accountant will be reviewing the final plan to ensure that there is no mistakes. Or there is nothing that was inadvertently overlooked.
And this is how just a few hours and a few meetings. An entrepreneur can end up with a great business plan. That is going to not only help them overcome common obstacles. But grow their revenue and succeed in business.