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However, despite the fact that many entrepreneurs understand that a business plan is necessary in order to help them not just meet their goals and succeed. But avoid obstacles that can harm their business. They still do not have one in their business.
The reason why business owners still do not have a plan. Is because they either do not know how to go about making a business plan says part-time CFO. Or, they think it is going to take them forty hours or more. And they do not have that kind of time. Especially if they work twelve hours a day like most business owners.
However, business owners should understand that they should not be spending forty hours on a business plan. Because it is not true that the more time a business owner spends on their plan, the better it is.
In fact, part-time CFO says that a great plan can be achieved in four hours. And if an entrepreneur spends forty hours on one. It is less likely to be ten times better than the four-hour plan.
And a business owner can be far more effective by spending only four hours on a business plan, and the rest of their time working in their business accomplishing their strategic priorities.
Also, for an extremely effective business plan. Entrepreneurs can get into the habit of updating their business plan every year. So that once a year, they are spending the same for hours revising goals, and updating financial information.
Since a lot of the people who spend forty hours on a business plan, tend to do that once, and then never revise it, Or even review it. It is much more effective for a business owner to commit to four hours each year. So that they continue to ensure that the business plan that they have is current, and can help them succeed.
In fact, because an entrepreneur will learn so much in the first year of their business. And then each year after that. By updating their business plan yearly. Can ensure that a business owner is using the knowledge that they have gained through experience. To put that into their plan. To make it even better than it was before.
Therefore, it is important that if business owners are creating a four-hour business plan. They need to be reviewing it on a regular basis and then updating it every year. So that they do not have to spend forty hours on a business plan. But spend more time accomplishing all of their objectives.
By knowing this, can help many business owners find that four hours each year. So that they will be more likely to create their business plan and succeed.
Business plans are extremely important in helping entrepreneurs succeed according to part-time CFO. This was proven in a survey that a software manufacturing company, Palo Alto did.
They surveyed small business owners, in order to find how effective business plans were in helping them succeed. And what they discovered was that entrepreneurs that had a business plan. Were 50% more likely to grow their business than entrepreneurs who had no plan at all.
By knowing this, and how important business plans are. Business owners can contact their accountant and utilize their business plan template. In order to end up with a great tool that is going to help them succeed.
In fact, in just for meetings and for hours of homework. A business owner can have this document. That is going to allow them to not just set goals. But know what tasks they need to work on in their business each day to achieve them. And to have formalized what those goals are.
The first meeting with their accountant will be the entrepreneur explaining all of their personal circumstances to them. So that they can end up with a financial and tax plan that is realistic and achievable.
The business owner will explain if they have any income from another job or investment. And what their debt servicing is like much their mortgages, car payments and other debt levels. The leave and discuss dependence that they have, or if other family members our country reading to household bills.
One month later at the second meeting. Part-time CFO says the entrepreneur will review those tax and financial plans that the accountant has created. To ensure that they do reflect the entrepreneurs needs.
And the entrepreneur will then get a copy of the business plan template so that they can enter their goals and vision of the business. Part-time CFO recommends that entrepreneurs should block about four hours of time in their day. And spend four hours ensuring that the vision and goals of their business are accurately reflected in the template.
Meeting three will be the entrepreneur to review what objectives and tasks that the accountant has put into the business plan. In order to help them accomplish their goals and achieve their vision. A business owner must be on board with accomplishing these tasks. So that they can bring their vision to reality.
And finally, the fourth meeting will be doing the final review of the plan for both how to do the business owner. In order to ensure that there are no mistakes. And that it reflects business owner’s circumstances and their vision for the business.
This is how in four hours and for meetings. A business owner can end up with a great business plan. But it is also important that they know they must review this plan regularly. And then in the next year, do the exercise all over again with their accountant.
To end up with a plan that reflects goals that were achieved, and the new economic circumstances of the business in the next year. This is important to help an entrepreneur continue to grow and achieve success in business.
