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Virtual Accountant | Components Of A Great Business Plan
One of the reasons why businesses may not be growing the way they expect says virtual accountant is that they do not have a business plan. Statistics say businesses who completes a plan in their business will be 50% more likely to grow their business. Creating a business plan is one of the easiest ways that business owners can be more likely to succeed in business. Despite having a plan in place will make business owners more likely to achieve their goals, and having a great business plan can help business owners even more likely to achieve those goals in their business.
Here are some important things business owners can consider when they are creating their business plan in order to create a great tool for their business. Ritual accountant recommends using the online software live plan in order to create their business plan. The reason for this is because itís online, business owners can work on it anywhere. But that they are at home work or somewhere else, this makes working on it and updating it simple and easy. Many business owners have used Microsoft Word or Excel which may work, but the new software is more efficient and has better features.
Another thing to include in a business plan says virtual assistant is including the executive summary. Executive summary will include most aspects of the business plan, which is important because many people may not read past that section. So itís very important to put it first as the primary focus says virtual accountant. Important parts of the executive summary include the mission statement, a description of what the product or service being sold is, as well as a company overview. The company overview will include who is the owner of the company, when the company incorporated, whose insurance provider, who the banker is, when year end is. Often executive summary and company overview is only used for finance purposes so itís important to include at the very beginning.
Even though they may have included what the products of the company were in the executive summary says virtual accountant, itís also very important to include a products section that includes a very comprehensive list of all of the products in the company from the smallest to the largest. Should also include the costs and margin for each one.
Business owners should also include a market risk analysis. The reason for this is itís very important for a business owner to have a plan on how they are going to avoid and minimize those risks in their business. Even though they tend to know very well their own risks, it may be important for business owner to outline how they plan on avoiding those risks to the banker in order to be more likely to secure a loan.
My including very specific sections in their business plan, businesses be better able to follow that plan like a roadmap and achieve their goals and go the revenue in their business.
Businesses who do not have a business plan are missing out on a great opportunity to grow their business says virtual accountant. The reason for this is businesses who have a business plan are 50% more likely to grow their revenue than businesses who donít. Simply by creating a business plan for their business, entrepreneurs can increase their odds of succeeding in business. And by creating a great business plan, business owners can increase those odds even more.
Even though almost all business plans tend to have cash flow projections in them, they may not be as effective as they could be says virtual accountant. Rather than having a yearly cash flow projection, recommendation is to have a month-to-month projection. The reason for this is because money is very crucial especially at the beginning of the business. If care isnít taken to plan out how business owner is going to spend their money, they could run out of money. A year plan may have a business running out of money before the year is over and not even be aware that they have a cash flow problem because the business owner only did their cash flow projections once. In addition to that, business owners should also include in their business plan monthly income statements as well as monthly balance sheets. All of those reports will mesh together and give business owners even more information. Itís also very important that these cash flow projections do not go longer than 2 to 3 years. Because five year plans are very difficult to be accurate and are only speculations. The reason for this is there are too many variables that can happen in a small business over five years. Itís better for a business owner to not waste their time doing more work that wonít be helpful to them.
Business owners should also include a time blocked calendar in their plans. This is something that is very different that business owners donít usually do. But having calendar that includes all the specific dates and times of all of the important information such as milestones and marketing initiatives, but a business owner should also include the tasks that theyíre going to work on and when so that business owners can use this like a very specific roadmap to get to their goal. Business owners can include specific things like when they plan on working on their quotes and estimates, attending working events, their marketing plan. By being very specific, business owners can create a plan that is very easy to follow.
All of these parts of the business plan will come together and help business owner create an extremely specific straightly helpful guideline of not only what theyíre going to do to become successful but when and how they are going to get there as well says virtual accountant. By following this plan, business owners can succeed.