Virtual Accountant | Creating Practical Business Plans
Business owners are working exceptionally hard in the business and yet seem to never be able to achieve their goals may wonder what they are doing wrong in their business says virtual accountant. However businesses have a completed business plan are 50% more likely to grow their revenue than businesses with no plan at all. Struggling businesses need to understand that they can immediately eliminate their struggle if they choose to create a business plan in their business. Not only can business plans help businesses grow their business as well as their revenue, business plans can help businesses avoid the three most common reasons why businesses fail in Canada today. 50% of all businesses close the door to their business within five years, and the top three reasons business owners give for why their business failed are: who 42% couldnít attract new customers, 29% ran out of money, 23% couldnít find the right staff members. Itís extremely easy for business owners to implement a business plans in their business in order to become successful but also to avoid common pitfalls. For each of the most common reasons why businesses fail, there is a component in the business plan will deal with how to avoid that problem.
42% of failed business owners could not attract new customers says virtual accountant. The aspect of a business plan that addresses that is the sales and marketing plan. Itís a known fact that the only an effective marketing strategies are the ones that are not done consistently. Itís extremely important for business owners to detail out all of their marketing plans. They need to be very specific on each initiative they want to undertake, they also needs to be very specific such as: when theyíre going to do it, how they are going to do it, how long they will do it for. They need to be very specific including specific dates to start as well as how to evaluate how well it is working. By creating a business plan with a sales and marketing section, business owners can avoid one of the major reasons why businesses have gone out of business.
29% of business owners say the reason why their business failed was that they ran out of cash. Section in the business plan that deals with avoiding that circumstances virtually accountant is the projections. Itís extremely important business owners to include projections in their business plan, because this is the part of the business plan that deals specifically with money. A great cash flow projection can help business owners plan out there year in business to avoid running out of money. A poor projection will have a business owner run out of money before the year is over. Not only does business owners need to create a great to projection, but they need to regularly review and update it in order to stay on track. If they are successful in this can avoid the second most common reason why businesses fail.
Being the business owner is extremely difficult says virtual accountant. 50% of all businesses close the door to their business, and each of the reasons why business owners say that business closed could be completely avoided if it was addressed in a business plan. Businesses who have business plans are 50% more likely to grow their business and businesses who donít, but itís also easy to see that not only can businesses grow their business they can also avoid very common pitfalls.
23% of all business owners that close their business within five years said the reason they failed was they were unable to find the right staff members to join their team. Virtual accountant says this is an extremely avoidable issue is dealt with in a business plan under the section of this staff and key suppliers. A business owner can come up with strategies and how to find hire and keep the best staff members in order to not only avoid not having staff, but to help them grow their business. Many business owners are reactive when it comes to finding staff, only looking to hire people when they have an immediate need in their business, which leads them to hiring out of desperation and not because they are the right fit. Great to hiring strategies can be outlined in the business plan so that businesses can be implementing the greates hiring strategies from day one.
The second most common reason that businesses close the doors to their business in Canada is that they ran out of cash. Virtual accountant says this can be avoided by having great projections. They recommend having a month-to-month projection instead of a year projection because there are so many variables when it comes to small business, as well itís extremely important that businesses have a good handle on their finances because this is so scarce when they first start to. But having a great cash flow projection with regular reviews, businesses can avoid running out of money in their business.
When the most common reason that businesses close the doors to their business within five years was a whopping 42% of them could not attract customers. For this reason, the sales and marketing components of the business plan is one of the most important sections of the business plan. Virtual accountant recommends that even though business owners may have really wonderful ideas when it comes to how they plan to market their business, but they should specify each one in great detail. In addition to detailing them out in depth, a business owner should also include specifics such as timelines on when they are going to do them and how often. Since ineffective marketing strategies that are implemented regularly, business owners can avoid the problem of not being able to attract new customers by implementing a consistent marketing strategies.
These are the reasons why businesses will be able to avoid common problems simply by having a business plan.