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Business plans are so important says virtual CFO. That if entrepreneurs do not have one. They are less likely to succeed. And less likely to grow their business.
Palo Alto is a software company. And they wanted to see how business owners that had business plans were at succeeding over business owners without a business plan. They discovered that entrepreneurs with plans were 50% more likely to grow the revenue of their business and entrepreneurs without a plan at all.
Therefore, all business owners should take the time to contact their virtual CFO. And get an effective business plan created. The best business plans will include a marketing strategy as well as the target market that they needs to go after. In addition to things such as what products and services are going to be selling. Cash flow projections. And what their revenue goal is.
However, business owners who are struggling with creating a business plan. Also tend to struggle about understanding who their target market is. Virtual CFO says a common mistake that entrepreneurs often make. Is thinking that their target market is a lot larger of an area than it actually is.
Many entrepreneurs say that the target markets that they’re going to go after is the entire city that their business is situated in. This is a mistake for several reasons says virtual CFO. The first one is because it can be very difficult to Market to an entire city though I might have millions of people in it.
The second reason why it would be a mistake to markets to an entire city. Is because it can be an extraordinary cost-prohibitive. Business owners must get their message in front of their ideal and likely buyers an average of 4.3 times before they will purchase anything. And to try to get in front of everybody in a city five times. Can be financially crippling for new entrepreneurs.
Most entrepreneurs need to do all of their marketing initiatives themselves in the beginning says virtual CFO. Simply because they will lack the funds to be able to pay somebody else to do it for them. and to try to personally Market to an entire city of a million or more people. Can be so time-intensive. That business owners won’t actually have the time to do anything else in their business.
This is why it’s very important for business owners to starts with a much smaller target market. And increase their efforts with fewer people. Virtual CFO recommends that business owners start with a small geographical area where their business is. Because seeing the signs on the business building. Can count towards the number of times they have to see a business before they will .
By understanding exactly what they need to do in order to start marketing their business effectively. Can help an entrepreneur increase the revenue of their business. And to do it sooner rather than later. When business owners realize that 15% of entrepreneurs fail in the first year. By learning how to market their business more effectively from the start. Can help entrepreneurs succeed, and not be one of the 15% that does not make it in business.
There are many things for business owners to keep in mind before they open the doors to their business says virtual CFO. Creating an effective business plan and marketing plan are some of those things. In fact, business owners need to learn how to generate revenue as quickly as they can in their business. In order to stay viable.
Industry Canada did a survey of small business owners in order to find out what’s the failure rate for entrepreneurs and Canada was. They discovered that 15% of entrepreneurs failed in their first year of business ownership. 30% of business owners failed in their second year of owning a business. And by year five, only half the businesses that opened we’re still in existence.
Therefore it is of Paramount importance for entrepreneurs to create a plan about how and where they are going to Market their business says virtual CFO. The most effective marketing plan will include the areas that a business is going to start marketing in.
If they create a business plan that has a marketing section that details exactly what they are going to do to market the business. But doesn’t include where they are going to do it. Virtual CFO says that when a business owner opens the doors to their business. It may not know where to start. Or how large a target market they need to have.
This is why it’s incredibly important for entrepreneurs to create a marketing plan that includes the target market. Virtual CFO says that by understanding these things. Can help an entrepreneur know exactly what they are going to do and exactly when they open the doors to the business.
The target market is actually so important. Because it actually is going to impacts the rest of an entrepreneur’s business plan itself. Therefore, business owners needs to figure out to the target market first, then their marketing plan. And then they can fill out the rest of their business plan using the information that’s pay got from creating their target market and marketing plan.
The target market that they have will influence the cash flow projections that a business owner comes up with for their business plan. It’s also going to impact the pricing of the products or services that they sell. And it can even affect all aspects of a business owners budget. Therefore, they need to understand how important it is to figure out their target market ahead of time.
Once they have figured out their target market. Virtual CFO recommends that they included in their executive summary. Therefore no matter who reads their business plan. And if they only reads the executive summary of it. They’re going to be able to understand that an entrepreneur has a well-thought-out business and marketing plan.
As entrepreneurs will need to submit their business plan to financial companies in order to get approved for financing. Business owners should include their target markets in the executive summary. So that the financiers can make the determination that they have a marketing plan. And will be more likely to pay back loans if they are granted them.
