Vancouver Accountant | Why Create a Business Plan
Although many business owners start their business without a plan at all, having one can be very beneficial says Vancouver accountant. In fact, a study done by Palo Alto, shows that businesses that have plans in their business. Are 50% more likely to grow the revenue in their business. Over and above businesses that have no plan at all.
In addition to being able to grow their revenue. Business owners need to understand that the failure rate for entrepreneurs in Canada is quite high. With 50% of all small businesses in Canada failing in five years of opening the doors to their business.
And there are three main reasons why business owners are not succeeding in their business endeavour. The third most common reason why entrepreneurs fail. Is because they are unable to find or keep staff in their business. Causing 23% of all failed entrepreneurs close the doors to their business.
The second most common reason why business owners fail. Is because they ran out of money in their business. And this causes 29% of all failed entrepreneurs to close their business down.
And finally, the single most common reason why entrepreneurs fail. Is because they are unable to find customers to sell their products and services to. And because of that, are unable to grow their revenue, and remain a viable business. Therefore close the doors to their business.
The reason why it is important to know these statistics says Vancouver accountant. Is because if a business owner has a business plan. They can avoid these three obstacles. By coming up with plans on what they are going to do to avoid them.
They can come up with the sales and marketing plan, to help them identify who their ideal and likely clients are. And then create a plan on what they are going to do to find them, and seller products and services to them.
There are also going to come up with the a differentiation factor, that will help them attract their ideal and likely customers. Have well thought out pricing. So that when they do attract their ideal and likely customers. They will be able to earn money on the products and services they sell.
A business plan also creates a budget for business owner to follow. Which can help them avoid running out of money in their business. Without a plan, business owners may not have any idea whether their spending is reasonable or not.
And finally, business owners will be able to create a plan around how they are going to find and keep staff in their business. And by having a great plan in place, can help entrepreneurs find better and higher quality staff. That are going to be happier to work there. Which is going to produce their turnover rate.
Therefore, whether business is just starting out, or has been in business for many years. They can benefit from creating a business plan.
And while many business owners are stuck with what they need to do in order to create an effective business plan. They can set up a free consultation with their Vancouver accountant. And find out how they can help entrepreneurs create their business plan.
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Business plans are the blueprints for business owners to follow, to help them find business success says Vancouver accountant. And if entrepreneurs do not have a plan at all, they could be at risk of failing.
In fact, 50% of entrepreneurs in Canada are not successful. And shut the doors to their business within five years of starting. And having a business plan can help many business owners avoid this fate in their own business.
However, if business owners do not have a plan when they open their business, there are some common reasons why they might want to create a business plan now. Even if they have been in business for several years.
One common reason that causes business owners to want to seek out help from their Vancouver accountant to create a business plan. Is because they are planning on making some major changes to their business.
Could be that they are adding a brand-new revenue stream, and they need help figuring out how they are going to advertise their new products and services. How they are going to attract their new clientele. And how they are going to train their new staff on the new revenue stream.
Or, business owners could be planning a massive business growth. Either by increasing the size of their operation. Or doubling or even tripling their ability to increase the products and services that they can offer clients.
And they want to create new budget for this huge growth, or create a plan in place to help them attract enough customers. To sell the additional products and services that they can sell.
Business owner may also be making a large technology purchase. Perhaps they are bringing their business into the cutting edge technology of the industry. And this might require large purchase, which might require a budget. They might need to train staff on the new technology. Or find an effective way to advertise the technology to their customers.
All of these changes for the business can take a lot of planning to navigate successfully. And without a business plan, the changes that business owners making to their business might not go well. This could be one reason why business owners want to create a business plan.
Another common reason why business owners would like to create a business plan. Is because they recognize that they are struggling. The three most common reasons for business owners to fail is that they are running out of money, they cannot find or keep staff. Or they are unable to find the customers they need to buy their products and services to grow the revenue of their business.
Therefore, they know that something has to change. And creating a business plan can help them get their business on the right track. And stay on the right track. Whatever the reason why business owners want to create a business plan, they can always contact their Vancouver accountant for the help they need. To get the plan that will help them succeed.