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Even though many business owners have heard how beneficial business plans can be, they and Vancouver accountant says many businesses do not have them. Which can put their business in jeopardy.
In fact, the failure rate for small businesses in Canada is extremely high. With 15% of small businesses failing in the first year of business ownership. And 30% of all businesses failing within their second year of operating their business.
By the time five years has come around, only half of the business owners that started are still around. And there are very common reasons why small businesses in Canada are not successful.
According to the industry Canada survey, 23% of entrepreneurs fail. Simply because they are unable to find or keep staff in their business.
29% of all entrepreneurs run out of money in their business. And this is the reason why they close the doors to their business and are not successful.
And the single most common reason why entrepreneurs are not successful, causing 42% of them to fail. Is because they are unable to find enough customers to buy their products and services.
It is very important for business owners to note however. That if they have a business plan, they can create a plan around how they are going to avoid all of those obstacles says Vancouver accountant. And when business owners have a plan, they become 50% more likely to grow their revenue as well.
Therefore, business owners should not need any more convincing that a business plan is important to do. The biggest problem, is that business owners do not know where to start. Or what information they should put into their business plan.
This is where setting up an appointment with their Vancouver accountant can help. Because they can help them with knowing what information needs to go into their business plan. It also help them understand that they should not overthink the business plan, or spend too much time on this process.
Ideally, business owners should spend about four hours of time thinking about all of the most important aspects of the business plan. Including the vision that they have for their business. Because more than four hours of time, is not going to help a business owner have a better idea of what put in their plan.
Therefore, there is diminishing returns on their time if they spend more than four hours of uninterrupted time on their business plan. Therefore, business owners who think that it is going to take them and extremely long amount of time to create a plan, can create their business plan quickly.
Another reason why they should have their accountant to help them with this, is because it will give them a second set of eyes on the plan. That will help them fix mistakes, and ensure that plan is sound and can work.
So that business owners can end up having a realistic plan that is going to be likely to help them succeed. And by spending a few hours each year on this, business owners can update the plan. And have a fresh plan each year to use as a blueprint to follow to success.
Business plans are an extremely important and useful tool for entrepreneurs according to Vancouver accountant. But not all business owners have this in their business, because they often get overwhelmed at understanding what information should be put in a business plan.
Since being unable to find customers to sell their products and services to. As the number one reason why entrepreneurs in Canada fail. There are many components that business owners should think about the put into their business plan. That can help them overcome this obstacle.
For example, business owners should have a well thought out marketing plan. And while many business owners have an idea of what they want. That idea is not necessarily quantified. Or have metrics that can help business owners truly use that as a blueprint to succeed.
For example, many business owners may say that they are going to do sales calls, calls or send flyers. As there sales and marketing plan. But have no idea what days they are going to do sales calls, or how many they are going to do per day, per weekend per month.
Vancouver accountant says they might decide that they are going to send out flyers, but do not know how many flyers they are going to send. And they do not know what areas they are going to send or how often they are going to send them out. Which makes it very difficult to follow through with this plan.
By creating a sales and marketing plan contained within their business plan. Can ensure that a business owner is thinking about all of the specifics and metrics. So that it is turned from a vague idea to a plan that they can follow.
Once they have a plan that they can follow, business owners can figure out if there sales and marketing strategies are effective. And if not, what they need to do to make them more effective. And if they are effective, how they can plan doing more of them. So that they can grow the revenue in their business.
Something else that business owners should put in their business plan in order to help them succeed. Will be understanding what their own differentiating factors will be. This is what sets their business apart from their competition.
And it is very important to understand what makes them different, and what they are going to focus on doing better than anyone else. Because this will help them stand out from their competition to their ideal and likely customers.
And also help them identify who their ideal customers are, because they will value those differences. It could also help them fill a unique niche in their industry. If nobody else is focusing on doing those things differently or better than the competition.
There so many things that business owners can put in their business plan help them succeed. And if they get lost or need help, they can contact their Vancouver accountant for help.
