Vancouver Accounting Firm | Are You Ready to Create a Business Plan?
Ideally, the best time to create a business plan is even opening the doors to their business says Vancouver accounting firm. But this simply is not the case for many business owners.
And often, entrepreneurs create business plans simply because they need financing. And they know that they need to have a business plan in order to qualify for the loan they need to start their business.
However, if business owners do not need that financing. They often start their business without a plan. Even though they may realize that it is a risk.
What keeps some entrepreneurs from creating this extremely important document. Is being overwhelmed, and not knowing what information should be put in the plan. Or thinking that it is going to take them a significant amount of time, and they stop creating one.
This is where hiring an expert can come in very handy. Because it can help business owners understand what information they need to put in their plan. In fact, if business owners want to create an extremely thorough business plan. They should hire Vancouver accounting firm.
Not only have the experts at this accounting firm has been creating business plans for a long time. They have also become so good at it, that they have created a template. So that they do not have to start the business plan from scratch with every new client.
And what that means, is that the information that they get is very thorough. And that the time that they save not having to create the plan from scratch.
Means that the Associates can spend more time on the parts of the plan that cannot be done using a template. Such as the financial plan, tax plan, and budget.
While it can be very beneficial to create a business plan. So that entrepreneurs know exactly what they need to do. In order to accomplish their goals and grow. Another very important reason why business owners should create a business plan.
Is because there is an extremely high failure rate for small businesses in Canada. With 15% failing within the first year of opening their business. 30% failing by year two. And half of all entrepreneurs that start their business will have failed by year five.
And while that is a significant amount of entrepreneurs that will not be successful. Industry Canada did a survey, and found that there were only three reasons why business owners in Canada were failing says Vancouver accounting firm.
42% of failed entrepreneurs were unable to find the customers they need to sale of products and services to. 29% of the failed entrepreneurs ran out of money. And 23% of entrepreneurs that were not successful. Were unable to find or keep staff in their business.
Therefore, while a business plan can be an important document that can help entrepreneurs grow. It is also an extremely important document that can help entrepreneurs overcome common obstacles. So that they can be more likely to be able to grow their revenue.
While the ideal situation is for entrepreneurs to create a plan before they open the doors to their business says Vancouver accounting firm. The next best time to create a business plan is now.
However, if a business owner has been successful in running their business, and are happy where it is at. And is not trying to grow their business by any significant amount. They may be content to not create a business plan, and maintain their revenue.
However, there are three main reasons why businesses that did not create a business plan. Should seek out Vancouver accounting firm to create a business plan now.
The first reason is that they could be making large changes to their business. Such as adding a revenue stream. This might require a lot of thought and plan. Ensure that they can carry this off, and find the customers, set their pricing. And ensure that this move can help them become successful.
Whether it is a restaurant that is adding a catering side, or a food truck. Or perhaps it is a clothing company that is adding jewelry. Any time a business is deciding to add a new revenue stream, they can benefit from a business plan that can help them role of those changes successfully.
Other changes they might be making in their business might be planning a large business growth. Such as doubling their square footage, so that they can produce more products and services. Or so that they can bring on double the customers.
And that changes also going to require getting the marketing out to their ideal and likely customers. So that they can sell more products and services. And get more customers, to pay for those changes.
Another reason why business owners might want to do with business plan. Is that even if they run their business for several years. They might now be struggling. It could be because there was downturn in the economy.
Or could be that a large competitor moved into the area. Such as a big box store. And now they find it is difficult to find the customers that they were finding easily before. Are there finding that once they grew to a certain size, there struggling finding and keeping staff.
By going to their Vancouver accounting firm and explaining why there struggling. Can help entrepreneurs end up with a business plan that can help them overcome these obstacles.
And finally, it could simply be that they need to finance their business. Whether they are purchasing a business, doing leasehold improvements. Or even purchasing a large asset that can help them grow their business. Financial institutions need to see that business plan in order to loan money to a business.
There is no better time than now for entrepreneurs to create a business plan. Whether they have had their business for many years though to plan.
In fact, even though business owners might be running their business successfully. Having a business plan make 50% more likely to grow their revenue. Which can be significant enough to create this important document.