Vancouver Accountant | Canadian Businesses Need a Business Plan
Even though many business owners understand that having a business plan can be very important says Vancouver accountant. They still do not have this document in their business. And can end up suffering because of it.
In fact, according to industry Canada, 50% of all small business owners in Canada fail within five years. And the reasons why these small businesses are failing, are challenges that can be overcome. If entrepreneurs had a business plan in place.
There are three common reasons why business owners are going out of business each year. This makes up the vast majority of all business owners that the doors to their business. In the first reason entrepreneurs are failing, is because they are unable to find enough customers in their business.
And this is not because they are opening up a business that does not have a customer base. It is because they are not marketing their business or their products effectively, if at all. Some business owners think that is going to be very easy to sell their products and services. And do not create a marketing plan.
And other business owners do not have a marketing plan, thinking that they will create one later on in their business. Once they have a little bit more experience running their business.
But often do not get the chance. Especially since 15% of entrepreneurs fail in their first year of business ownership. While 30% fail in their second year of owning a business says Vancouver accountant.
Therefore, business owners need to understand that creating a marketing plan is going to be how they find the customers that they sell their products and services to. And that they need to focus on that as soon as they can. In order to sell enough products and services to grow their revenue.
Even if business owners have a vague idea about what they are going to do for their sales and marketing plan. If it is not defined out in a plan itself, they often will not follow through with it. Especially because they are missing important information. Such as the frequency of implementing their ideas.
The second most common reason why entrepreneurs are not successful in their small business in Canada. Is because they are running out of money. There are several different things that business owners can have in a business plan that can help them avoid running out of money.
From having a sales and marketing plan to grow their revenue. As well as spending some time on their pricing, so that they avoid pricing their products to low. And not covering all of their expenses. To having an effective tax plan, so that they know exactly how much money they can take out of their business.
Once business owners have a business plan, and are able to overcome common obstacles. Vancouver accountant says they are going to be able to grow their business. By using the plans that they have created. And growing their revenue. To ensure that when they work hard in their business, they start growing their business.
If Canadian businesses do not think that they need a business plan at all, Vancouver accountant says they might end up in trouble. Or end up failing, because they do not have the right plans in place.
And while many business owners should be creating their business plan before they even open the doors to their business. It is never too late to create a business plan, even if they have been in operation for several months or even several years.
However, if a business owner does not have a business plan created, if they are facing certain scenarios. They should indicate to them that it is a good time to work with their Vancouver accountant in order to create one. So that they do not end up succumbing to problems.
One of the first indications that business owner should have to ensure that they should create a business plan. Is if they are planning on making any major changes to their business. Such as upgrading older technology to cutting-edge technology.
Business owners might be planning on a very large business growth. Whether it is in size or capacity, this can be an indication that business owners might want to consider creating a business plan. So that they can navigate the growth without making mistakes and affecting their business.
And another reason why business owners might want to create a business plan even if they have never had one before. Is because they are adding a new revenue stream to their business. Perhaps they want to find a new customer base. Or just ensure that they can add new services, without causing a dip to their revenue.
The second reason why business owners may want to have a business plan. Even if they have never had one in their business before. Is because they are starting to struggle. It could be because there is a change in the economy. or perhaps a large competitor moved into the area. And business owners have never had to deal with a competitor in their area before.
Regardless of the reason why entrepreneurs struggling. Vancouver accountant says a business plan can help business owners come up with a plan on what they are going to do to overcome the reasons why they are struggling.
And finally, if business owners need financing. This is a great opportunity to create a business plan. Because financial institutions often require business owners to have a plan. In order to decide whether they are going to loan money to a business or not.
Therefore, they can create a business plan, so that they can ensure that they can get the financing they need in their business. And then use the business plan to help them grow their business, especially because if they are needing financing, they are probably going through some changes in their business as well.
By creating a business plan, entrepreneurs can navigate new scenarios that they have never encountered before. And not only navigate successfully through those challenges. But also use the plan to help them grow the revenue, and be even more successful in business.