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According to a study done by Palo Alto, the software manufacturing company. Businesses that have a business plan are 50% more likely to grow to the revenue in their business. Over and above entrepreneurs that do not have a plan at all.
And especially since small business owners have a lot of obstacles that are difficult to overcome. Having a business plan can help entrepreneurs overcome obstacles. So that they can be more likely to succeed in their small business in Canada.
Industry Canada says the number one reason why entrepreneurs fail. Is because they are unable to find enough customers to sell their products and services to. Therefore, a great business plan will have a sales and marketing component.
By helping entrepreneurs find the customers that they need. They can not only be more likely to avoid the failure risk. Of not growing their revenue because they cannot find enough customers to sell their products and services to.
And at the same time, help increase the revenue quickly enough. To remain viable in business. Therefore, this is one of the ways that having a business plan can help small business owners in Canada succeed.
Something else that is important to include in a great business plan according to Vancouver accountant. Is ensuring that they have figured out their pricing head of time.
Not only do they need to ensure that their prices are going to cover not just their direct costs. But they are covering their overhead costs as well. Because if entrepreneurs prices are too low, no matter how many products they sell.
They will not be able to cover all of their expenses, and remain in business. At the same time, business owners should ensure that their prices are not too high. Because while they should not aim to be the lowest price.
They should also not be the most expensive option, and price themselves out of range of their ideal and likely customers. By having an idea of what the pricing should be ahead of time. Can help entrepreneurs ensure that they are not making critical errors early on in their business.
One of the third things that Vancouver accountant recommends entrepreneurs have in their business plan. Is figuring out there differentiation factors. They can do that by writing out all of the things that make them unique from their competitors.
And when they have this list, business owners can focus on no more than three of these things. That they are going to do better than anyone else. And can attract their ideal and likely customers, based on what they do differently and better than their competitors.
By creating a business plan. Entrepreneurs will be able to be more likely to succeed in business. Because they will be able to more easily overcome obstacles. So that they can succeed in business, and grow their revenue.
Many business owners either do not have business plan says Vancouver accountant. Or that they have started to create one, and stopped before it was complete. This is often because they are not sure what information should be put in a business plan. Or they think it will take them more time than they have to create.
However, the good news is business owners who did not start their business with the plan. Can it create a plan at any time. To help them follow-up proven path to success in their business.
However, there are three main reasons why entrepreneurs may want to consider writing a business plan. The first reason is if they are planning on making major changes to their business.
Such as generating a new revenue stream, planning a large business growth. Or purchasing new technology for their business.
These changes are going to require a business owner planning on how they are going to navigate these changes. With their customers, with their staff. And ensuring that they are not going to run out of money while they make these changes.
Another reason why Vancouver accountant recommends business owners create a business plan. Even if they have been in business for many years. Is if they are struggling in their business.
They may be running out of money, even though they have been in business for several months or years. They might be struggling because they are having a hard time finding or keeping staff. Or they may simply be having a difficult time finding their ideal and likely customers.
Regardless of the reason why these business owners are struggling, having a business plan can help them overcome the obstacles that they are running into. So that they can be more likely to overcome them. And then increase the revenue.
And the third reason why business owners should create a business plan. Is if they need financing for any reason. Typically, banks and financial institutions require a plan in order to decide whether to loan money to a business or not.
Therefore, if a business owner may need alone in the future. Or is planning on alone, whether it is for purchasing a new building, leasehold improvements. Or if they are purchasing an asset that can help them grow.
This is a great reason for business owners to create a plan, so that the banks can see what they are going to do with the money. And be more likely to loan the business owner the funds they need to keep their business growing.
And while it is very important to create a business plan. Business owners need to be aware that creating it is important. But following that plan and reviewing it on a regular basis is just as important to succeed.
If business owners have any questions about how to create a business plan. Or what information to put in it, they should contact their Vancouver accountant for consultation, they can ask all of their questions.
