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Many business owners might not even need financing to start their business. Which is why many entrepreneurs end up having a business plan at all. However, it is important that all business owners have a plan. Regardless of if they needed financing or not.
Because a business plan is going to help a business owner formalize all of their goals for their business. Especially since if entrepreneurs do not write their goals down somewhere. They may not even have a crystallized idea of what they want to accomplish in their business.
And if they have no goals, part-time CFO says it can be very difficult to know what they have to do each day in their business. Which will end up with an entrepreneur working extremely hard? But not really ending up with the business that they are expecting to.
By creating a business plan with goals. Business owners will be able to figure out what they need to do in their business in order to achieve those goals.
However, entrepreneurs need to understand that they need to do more than just create the business plan once, and then put it on a shelf and forget about it. Which is what the majority of entrepreneurs do who make a business plan for obtaining financing.
They might end up spending forty hours on this plan, and end up not reviewing it regularly. Or even looking at it again. In this is not going to help them accomplish their goals either.
It is much better for an entrepreneur to commit to spending four hours on a business plan every year. So that they can continue to update the plan as they achieve goals. As they grow the revenue of their business. And as they learn more information. About their business through experience.
Not only should an entrepreneur set the time aside in their calendar every year. But also do so with their accountant. Because their accountant will be able to help them and up with realistic tax plans, financial plans, and cash flow projections.
In fact, part-time CFO says that cash flow projections are extremely hard. Even for experienced chartered professional accountants. That if an entrepreneur tries to do this themselves. They are most likely going to end up with not only a wrong cash will projection. But when that is optimistic as well.
And optimism is not beneficial when basing numbers and plans for a business plan. Therefore, getting realistic cash flow projections. Can ensure that the business plan is achievable. So that entrepreneurs can feel good about following the objectives that are laid out in their plan.
This way that they can be more likely to grow their business. By contacting their accountant, and setting up some meetings every single year. The owners can be more likely to achieve success in their business.
If you fail to plan, you are planning to fail according to Benjamin Franklin says part-time CFO. And those words were never more true with entrepreneurs. Not only are entrepreneurs who use business plans more likely to overcome common problems that their colleagues face. But there also 50% more likely to grow their business then business owners who do not have a plan at all.
However, it can be very overwhelming for business owners to think about creating a business plan. Because they often do not know what information should go into the plan. Or how much time they should spend creating one.
Part-time CFO says by going to their accountant. They will be able to use the business plan template and the accountant’s expertise in creating a great business plan. That will only take for meetings, plus approximately four hours of homework time. For the business owner to and up with a great plan.
In the first meeting with their accountant, the business owner is going to explain all of their personal circumstances. Such as all of their debt servicing, such as mortgage, car payments, and credit card bills for example.
But also if they have income from other sources. or if the family member or spouse contributes to the household bills. So that has an entrepreneur is not the sole provider for the family.
The accountant will be able to take all of this information and create a great tax and financial plan. So that a business owner understands how much money they will be able to take out of their business. And when they will be the take that money. In order to be able to pay their bills.
The second meeting will be the entrepreneur reviewing that tax plan. And then looking at the business plan template itself. In order to put their own vision of what they want to accomplish in their business. As well as their own goals into the template.
Part-time CFO says it is important for an entrepreneur to spend about four hours of time outside of the meeting. In order to ensure that their entire vision is represented in the template. By crating a block of time in their schedule, it should be fairly easy for a business owner to accomplish this within a month.
The third meeting is going to be the business owner reviewing all of the tasks and strategic priorities. That the accountant has created for the business owner to follow to accomplish their goals.
The business owner must look to ensure that it accurately reflects their vision and goals in the business. As well as if they are willing and able to do all of those tasks.
By the fourth meeting, the business owner and accountant are reviewing the entire plan to fix mistakes, and ensure nothing was missed. This way, a business owner can spend these for meetings and four hours each year. Ensuring that they have a great business plan that is going to be helpful in them reaching their business goals.
