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Not only is it important for entrepreneurs to have a business plan since virtual see a phone. But it needs to be well thought out and written very carefully in order to be successful. As Benjamin Franklin, the Founding Father of the United States of America was famous for saying. If you fail to plan, you are planning to fail.
Palo Alto, the software company did a survey in order to find out if entrepreneurs that had business plans were more likely to succeed. The results of their study found that business owners that had business plans were 50% more likely to grow their revenue and entrepreneurs without a plan.
If this does not convince business owners that they needs to create a business plan, maybe if they understand that a business plan can include an effective marketing plan that can help them grow their business. Virtual CFO says hopefully they will understand how important it is to do this in their business.
Even before they open the doors to their business, entrepreneurs should have a business plan. This will help them obtain the financing that they need in order to start their business. And it can help ensure that they know exactly what they’re going to do. And when they are going to do it when they start their business.
But the most important thing that they should be figuring out early as possible says virtual CFO. Is who their target market is. The reason why this is so important. Is because it is going to influence the rest of an entrepreneur’s business plan. Therefore, entrepreneurs should figure this out, so that they will be able to create an extremely effective marketing plan.
Once they have figured out there marketing plan, they’re going to be able to write the rest of their business plan. And once they have the rest of their business plan written says virtual CFO. They should summarize everything that is included in it. In a very well written executive summary.
The executive summary is one of the most important aspects of the business plan says virtual CFO. Because it is often the only part of the business plan that gets red. Whether it’s by a financing company, who is going to help an entrepreneur get a piece of equipment they need to grow their business. Or if it is a bank, giving them a loan so that they can either purchase a building to operate out of. Or that they can do leasehold improvements to help ensure that’s their business and grow.
By including not just synopsis of the entire business plan, but strategically the target markets that they’ve chosen. Can be incredibly beneficial. This will tell whoever is reading just the executive summary alone. That’s the entrepreneur has a target market, which means that they have a well-thought-out business plan and marketing plan as well.
And as it’s important for an entrepreneur to be reading their business plan on a regular basis. In order to ensure that they are following the plan correctly. When business owners get extremely busy. They may not have the time to read their business plan. But virtual CFO says they won’t be too busy to look at the executive summary and remember the most important aspects of their plan.
The most successful entrepreneurs will have business plans to help them succeed says virtual CFO. In fact, business plans are extremely beneficial to helping entrepreneurs overcome the number one reason for business failure. Which is not being able to find enough customers for their business.
In fact, industry Canada did a survey in order to discover why entrepreneurs were failing. What they discovered, was that 15% of entrepreneurs failed in their first year of business. 30% of entrepreneurs failed in their second year of business. And by the 5th Year in business, 50% of all Canadian entrepreneurs had failed.
The most common reason why business owners say that they failed is that they were unable to find customers for their business. This is why creating business plan that includes a target market is so important. They’re going to be able to specify who their Market is. And how they’re going to reach them.
By specifying these things in a business plan, entrepreneurs will be far more likely to succeed in business and grow their organization. If business owners do not have target market written in their business plan. They could very easily be one of the 42% of entrepreneurs who failed because they don’t know how to get in touch with their ideal and likely customers.
When does its owners are creating their marketing plan. They often have a tendency to try to make their target market as large as possible says virtual CFO. For example, many entrepreneurs say that their entire target market will be the whole of the city that their business is in. This can be millions of people that they’re trying to Market to simultaneously.
Not only is this not an effective marketing strategy. Because it can be very difficult and expensive to markets to millions of people. But if business owners cannot do this several times. It’s not going to give them a return on investment.
Similar to how entrepreneurs should avoid saying everyone is their ideal and likely buyer. When business owners are able to avoid saying everyone in the city is their target market. They will be far more likely to succeed as well
virtual CFO recommends that people stick to the geographical location of their business as their first target market. This is great for several reasons. Because as they do the marketing in the area that their business exists. As people here the advertisements, and see their fliers. As they drive past the business itself with the sign out front. It’s going to reinforce that message even more.
When customers are able to see the messaging of business more often. They will be more likely to make a purchase sooner. and when business owners are able to encourage their ideal unlikely buyers to purchase sooner. Then they’re going to be able to increase their revenue early on in their business. And avoid the high failure rate that entrepreneurs face. Because they are unable to find the correct target market for their business.
