Part-time CFO | The Four Hour Business Plan
Business plans are so vital to the success of businesses says part-time CFO. That they should ensure that they are spending time on their business plan. Not just at the start of their business. But every year to ensure that they have the best plan that can help them succeed.
One problem that many business owners have. Is that they either do not have a business plan at all. Or, they have a business plan but it has sat on the shelf for years and they have never used it. Even the best business plan in the world. Will not be able to help an entrepreneur succeed if they do not use it.
Therefore, it is much more effective for business owners to spend four hours every year working on their business plan. Then spending forty hours at the beginning of their business. To never use the plan that they have created.
When business owners take the time to work about four hours on their plan every year. Not only will they be able to apply what they have learned in the previous year of business ownership. So that they can make their business plan stronger.
But they also will ensure that they can continue to use the business plan throughout the year. In order to achieve all of the objectives that they along with their part-time CFO have put into the plan in the first place.
However, just spending four hours without knowing the most effective way to spend those hours. Is not going to result in a better business plan. Which is why an entrepreneur needs to set of time to meet with their part-time CFO. In order to end up with an effective business plan.
A great business plan will take for planning meetings. And the first meeting will include talking about the business owners personal circumstances. This way, the business plan that they create will be realistic and achievable. By taking into consideration what an entrepreneur needs to take out of their business.
In the second meeting, the plan will already have happened in meeting one in it. So that business owners will already know what they need to be doing in their business from the tax planning perspective. So that the second meeting is review of the current plan. And then allowing the business owners to look at the business plan template. So that they can put their own vision of the business into the template.
This is where an entrepreneur needs to spend therefore hours of time. By blocking off this time in one day. Can help ensure that an entrepreneur is actually taking the time needed. Ensuring that it gets done. They can end up with a great business plan.
Once an entrepreneur has a completed business plan. That not only they, but their accountant has reviewed to ensure it is going to be effective. The next thing that a business owner needs to do. Is to review that plan on a regular basis. So that they can ensure that they are following the plan, and increasing their chances of success.
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Just like Benjamin Franklin, the founding father of the United States was famous for saying says part-time CFO. If you fail to plan, you are planning to fail. Not only are business plans effective at helping entrepreneurs know what they are doing. But without a business plan, business owners are 50% less likely to grow their business.
And while many business owners understand that a business plan is deftly going to help them succeed. They often struggle with this task. And find it difficult to find time to create their business plan. Which is why a four-hour business plan can help them fix this problem.
By meeting with their part-time CFO four times over the course of four months. Can help a business owner end up with a great business plan. That is going to help them know what they need to do to succeed. And also what their goals look like so that they can create a plan on how to achieve them.
One of the most important aspects of a business plan will be the cash flow projections. And this is something that they need to hand off to an expert to do. Because of even the most knowledgeable accountant with years of experience. Have a difficult time in creating cash flow projections for business owners.
Therefore, it is less likely that any business owner, especially ones with no accounting experience. Are going to be able to come up with the cash flow projection that is realistic. Since the rest of their business plan is going to hinge on the accuracy of their cash flow projections. They need to hand this off to an expert.
In fact, part-time CFO recommends that even if entrepreneurs cannot afford to hire a CPA for anything else. They do what they can to ensure that a chartered professional accountant is able to do their cash flow projections. So that they can help ensure the success of their business plan overall.
Once a business owner has created their business plan. Should get separate deals to look through their plan on their behalf. This can be a part-time CFO, the accountant that their cash flow projection. Or even family members and friends.
The reason why this is so important. Is because the business owner will be able to catch potential mistakes or oversights a lot easier. When somebody else looks over the business plan. Other people will also be able to add their own experiences and viewpoint. Increasingly entrepreneur’s ability to see the plan from a variety of different perspectives.
Once they have a business plan. A business owner needs to ensure that they are regularly reviewing it. As well as updating it. That it can be a living document to help them succeed. If they spend the same for hours every year. They will be able to ensure that they are continuing to improve their business plan. So that it can continue to help them succeed in business.