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Even though many business owners understand how important a business plan says part-time CFO. Many businesses still do not have one. Which can impact their success? Palo Alto, the software manufacturing company wanted to find out how important business plans were to entrepreneurs. What they found was that those who had a business plan are 50% more likely to grow their business. Those entrepreneurs without a plan at all.
However, entrepreneurs need to understand that if they have a better business plan, that can continue to impact the success of their business. And one way that they can have a great business plan is to include a problem, mission, and vision statement within it.
Many business owners do not understand how important their problem, mission, and vision statements are. And even those who have one. May not understand how important it is to put women within their business plan. Part-time CFO says that business owners need to understand that these statements can actually keep the entire business plan focused. As well as help keep the business owner themselves focused on accomplishing their business is goals.
Therefore, not only should they take the time to write these important sentences. Once they have them, part-time CFO recommends including them in the executive summary of their business plan. The reason why is because the executive summary includes a brief synopsis of all of the most important aspects of an entrepreneur’s business plan. Since the problem, should and vision statements are extremely important. They should be included here as well.
This way, even if an entrepreneur does not have the time required to read through their entire forty-page business plan. Even if they simply read through the executive summary. They will be able to be reminded of the most important aspects of their business.
Part-time CFO says the first step to creating effective problems, mission, and vision statements. Will be to understand why their customers are buying the products and services from them. Ultimately, consumers are all solving a problem when they make a purchase. The business owner needs to understand what problem they are helping their customers solve.
Once business owners know what they are solving. They can write an effective mission statement that will explain how they are planning on helping those customers. And grow their business. Part-time CFO says one of the most asked questions they get about the mission and vision statements is what the differences are put in the two.
Ultimately, the vision should include a quantifiable goal. As well as a timeframe in which to accomplish that goal. It should be a long-term goal, that is not going to be easily achieved in a short period of time. Once a business owner has its vision and mission statements written down. They should revise them until they are a single sentence long.
It is easy to communicate a complex idea in many words says part-time CFO. And much more difficult to express that same complex idea in as few words as possible. But it is important to keep it brief. So that it can be easily remembered. Not just for the business owner. But for their staff as well.
When entrepreneurs understand that well-written problem, mission, and vision statements can help their business says part-time CFO. They may take more time in order to write these important sentences. And then utilize them in their business.
One of the biggest mistakes that many entrepreneurs make. Is when the right to their mission and vision statement. They do not end up using it. And while the mission and vision statements can help keep the business plan and the entrepreneur themselves focused. They are not going to accomplish anything sitting on a shelf.
Therefore, after a business owner has taken the time to write effective problems, mission, and vision statements. Part-time CFO says that a business owner needs to ensure that they are communicating those statements on a regular basis.
It is not just the business owner that needs to remember the mission and vision of the business. But every employee needs to understand that as well. So that they can understand the goals of the business. And how they should be conducting themselves. When employees can understand exactly what the goals of the business are.
They can conduct themselves in such a way, that every task they complete can be done with helping an entrepreneur accomplish their business goals in mind. Part-time CFO says that it means they must communicate this not just once. But more often than a business owner ever assumes they have to.
This means communicating the mission and vision of the business on a daily basis. And at every staff meeting and staff training session. Many business owners ensure that it is written and visible and every single room of their office. So that not only do all employees know what the mission and vision statements are.
But so that they can memorize them, and use those mission and vision statements to guide their actions while they are at work. If they ever have a problem that needs solving and the entrepreneurs not available. They should be able to think about the mission and vision statements. And be able to come up with a solution themselves. That will allow them to address the problem in a way that helps the business accomplish their goals.
Once a business owner has its mission and vision statements. And are regularly communicating with their staff. They should include in the executive summary of their business plan. So that they can ensure that whoever reads the executive summary. We will know what is most important to the business. That includes the business owner, as they reread the executive summary. To remind themselves of what is most important in their business.
When business owners are able to not just write a problem, mission, and vision statement. But utilize it effectively. They will be able to help themselves accomplish their goals. Help ensure that their employees are also working to help them accomplish those important business goals as well.
