Part-time CFO | writing an effective business plan
Business plans are extremely effective at helping entrepreneurs succeed according to part-time CFO. In fact, the software manufacturing company called Palo Alto. Wanted to find out exactly how effective business plans were at helping entrepreneurs succeed.
What the company found out, was not only were business plans beneficial to help entrepreneurs succeed. Entrepreneurs that had a business plan are 50% more likely to grow their business. Then business owners did not have a plan at all.
However, while many business owners are definitely convinced that having a business plan will help them succeed. They still struggle with finding the time in their already busy schedule in order to create one.
Therefore, learning about our business plan. Can help ensure that they get a great business plan. Without feeling like they have to spend forty hours working on a plan in order to get what.
A great way to get a four-hour business plan is to set up a meeting with a part-time CFO. Who is knowledgeable in creating business plans. By spreading out the for meetings over the course of four months. Allows an entrepreneur the time needed to think and reflect on their business plan.
The first meeting that they have is going to be dedicated to understanding the business owners’ personal circumstances. Perhaps the business owner will need to take money out of the business right away. Or, they might have another source of income. And they do not need to take a salary or dividends for a long time.
By understanding their personal circumstances including their debt servicing, family, thoughts on taking time off, and plans for the future. Can help the accountant put together the financial and tax planning part of the business plan.
When the entrepreneur and the accountant meet for the second meeting. They will show the business owner what they have finished already in terms of financial and tax planning. This is also the meeting where the part-time CFO will be able to introduce the business owner to the business plan template. Where the business owner can put their own vision of the business into the plan.
By the time they get to meet three, the part-time CFO in the business owner will review what is in the business plan so far. With the accountant putting in all of the information that they believe will help the entrepreneur bring their vision to fruition. Including what recommendations they have that will help them achieve their goal.
And finally, meeting for is completing the business plan, and doing a final review with the business owner. To ensure that it makes sense and that everyone agrees with the direction that it is going. And make sure that the business owner does not have any questions on executing it.
This planning process can ensure that it does not take up so much of an entrepreneur’s time. But that they can end up with an effective business plan that is effective at helping them succeed and achieve their business goals.
Part-time CFO | writing an effective business plan
Creating a business plan is an extremely important way that business owners can achieve their business goals says part-time CFO. Unfortunately, many business owners think that the only reason why they would need to have a business plan. Is in order to get financing.
And once they have their financing, they put their business plan on the shelf and forget that it exists. While the most effective business plan even if it is more poorly written than another. It is going to be most beneficial if people use it on a regular basis to help them succeed.
Another misconception that some business owners have about their business plan. Is that they need to have one even before they open the doors to their business. Part-time CFO says this is not accurate. Business owners can create a business plan at any time at any stage in their business. To help them succeed.
In fact, a business owner who does not have a business plan. And then takes the time to create one, and actually use it. Is better than any business owner that has a plan before they open the doors to their business. Never look at it.
Therefore, it is very important for business owners to understand that for hours a year on a plan that they use. Is better than forty hours they spend at the beginning of their business on a plan. That they never look at.
The reason why says part-time CFO, because the most effective business plans are living.. And if an entrepreneur continues to refine their plan, they have learned so much each year that they are in business. That they are going to be able to put more expert advice into their plan. As they grow their business.
Once a business owner has taken the time to create their plan. They need to ensure that they have somebody else look over there plan. This can be a part-time CFO, a friend, family member. But having anybody else look over the plan. Can help point out different points, views, and help them fix errors and omissions.
In fact, the part-time CFO helps a business owner complete their plan. Will typically have their colleagues and coworkers review their plan before they present it to the business owner. To ensure that they have not overlooked something important as well.
Another important consideration that business owners need to make. Is that it does not need to be perfectly polished, because nobody can look at their plan except for themselves, and perhaps their bank. So they should spend less time refining it. And more time creating it and executing it.
Therefore, business owners not only need to spend time creating their business plan. But reviewing it and updating it. So that it can continue to be a great tool that they can use to help them achieve success in their business. The sooner they can get a business plan, the sooner they can find success.