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Business owners need to plan if they want to become successful says virtual CFO. And just as Benjamin Franklin, the Founding Father of the United States of America has said. If you fail to plan, you are planning to fail.
Business owners that don’t have a business plan, are not going to be prepared to grow their business. And can actually end feeling instead. Palo Alto, the software company did a survey in order to find out if business plans were an effective tool for entrepreneurs to grow their business. But they discovered, was that entrepreneurs with business plans. Are 50% more likely to grow their business? Then entrepreneurs with no business plan at all.
One of the reasons why business owners don’t have a business plan. Is because they are so excited and passionate about their business. That they think that the product or service is virtually going to sell itself. Virtual CFO says this is generally not the case, and if entrepreneurs things that they don’t have to undertake any marketing to succeed. They will find out the hard way that it is impossible.
However, many entrepreneurs don’t have a business plan. Is because they don’t know what information to include in it. Virtual CFO says that a business plan. Only needs to have cash flow projections, and a list of the products and services that they are going to sell.
The best business plans are going to include a marketing plan. As well as a clearly defined Target Market in that marketing plan. What a target market is saying virtual CFO. Is the area that an entrepreneur is going to Market to their ideal and likely buyers.
Many entrepreneurs make the mistake of thinking that their best target market is going to be the entire city that they are located in. This can be an overwhelming Market to try to advertise too. And business owners may not have the time or the money to get in front of an entire city full of people effectively.
If business owners trying to have this entire target market. They might end up running out of money before they see results. And feeling in their business.
Therefore, a smaller target market is extremely beneficial. Because the more consistently a business owner is going to be able to get in front of their ideal unlikely buyers in one area. The more return on investment they are going to have. And the more they’re going to be able to increase their revenue.
Virtual CFO says that a business owner simply needs to pick the correct small target market area. They recommend business owners use the geographical area directly around the entrepreneur’s business. Not only because it will reinforce the marketing that they do. When people in the target market drive past the entrepreneur’s business and see their sign.
But also if an entrepreneur does deliveries or house calls. Having a Target market in one geographical location. That is closest to the business can help an entrepreneur service that area more cost-effectively.
Many business owners struggle with their business plan or their marketing plan says virtual CFO. And even if they understand the importance of marketing. If they don’t know how to create an effective marketing plan. They might not even try, hoping that they will be able to learn as soon as they open the doors to their business.
However, it’s very important that business owners know how they are going to market their business, and especially who their target market is saying virtual CFO. Because there is such a high failure rate of entrepreneurs in Canada. 15% of entrepreneurs fail within their first year of opening the doors to their business. 30% fail by their second year in business in Canada. And 5 years in business and only half of the entrepreneurs that started are still around.
There are two very common reasons why most of the entrepreneurs in Canada fail. the second most common reason is that business owners run out of money. And this is the reason why 29% of failed entrepreneurs fail.
And the most common reason why Canadian entrepreneurs fail. Is because they are not able to find enough customers for their business. In fact, 42% of all entrepreneurs that fail in Canada. Say this is the reason why their business was not successful.
Therefore, business owners should understand it is one of the most important things that they can do to succeed. Is to find customers in their business. By creating an effective marketing plan. Business owners will know exactly how they are going to Market to their ideal unlikely buyers. And that’s they know exactly where they are going to Market they’re ideal and likely buyers.
By overcoming this obstacle. Virtual CFO says that entrepreneurs will be considerably more set up to succeed. Which well help them stay viable longer. And even increase the revenue of their business so that they can be successful.
However, many entrepreneurs struggle with understanding where their target market should be. And they often think that they needed to markets to a much larger area than is actually possible for a new entrepreneur in business like themselves.
And while it is completely fine for business owners to have a goal of being able to Market to an entire city. This is generally not an effective strategy for new entrepreneurs. Who are very pressed for time. And who have a very limited amount of money.
Therefore, entrepreneurs should focus on a much smaller target market. And marketing to that area in a variety of different ways. Many business owners will choose to use as much of their own labour as possible when marketing. And often go knocking on doors introducing themselves to potential customers. Or by handing out flyers to them, or attending local business mixers in their specific Target area.
All of these marketing efforts can cost next to no money says virtual CFO. But as long as an entrepreneur is consistent and getting in front of their target market. It will generate results. Allowing business owners to see more sales than if they weren’t actively marketing at all.
