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Having a Clear Business Plan Will Lead to Achieving Goals

Author: Keith Huggett

Whether you're a one-man shop or a small business with several employees, setting business goals is necessary for success, especially in the first several years of operation. Knowing where you want your business to be, and how you plan to get there, can help you achieve success more quickly and instill confidence in employees, customers and other stakeholders.

Creating a comprehensive business plan can be intimidating, but it doesn't have to be. Set smaller, achievable objectives to make the process less overwhelming; you can create business goals in virtually any area:

• Operational: Improving efficiency can help you dramatically reduce overhead costs. Explore new tools and cloud-based resources to help you streamline operations. Start by analyzing the current time and costs associated with tasks such as bookkeeping, payroll, tax filing and other necessary business operations. How can you make these tasks more efficient? Consider outsourcing, especially if you are doing this work yourself. As a business owner, you should spend your time developing and implementing strategies for growth, not handling the mundane (but necessary) day-to-day tasks.

• Sales: For most businesses, this is the key metric that defines success. Set monthly or quarterly sales goals that include plans for growth. Work with your sales team to set goals that are both realistic and challenging. Your employees will thrive when they know what is expected of them, and everybody will benefit from the financial gains.

• Marketing: Increasing sales requires targeted marketing. Setting concrete business goals such as increasing website traffic, bringing strategic allies on board and expanding your social media presence are effective ways to keep marketing efforts on track.

• Financial: Set targets for both short and longer periods of time. When you set financial business goals, it's important to understand the steps and costs associated with getting there. Working with a qualified financial planner can help you set realistic goals that will result in profits.

The professionals at The Tax Office Inc. can help you create a solid financial plan that includes tax strategies and much more. We also offer online bookkeeping and other cloud-based services. Contact us today to schedule a consultation.

Business Plans Necessary In Early Stages of Operation

Author: Keith Huggett

Business plans are frequently created in the start-up stages of a company, then ignored after it is up and running. Your business plan should serve as a guideline for all of your business activities, whether you are in your first year or your tenth.

While the early months and years are often dedicated to setting up operations, finding new customers and marketing your products and services, there is still important work to be done after all the excitement dies down. You can use your business plan to help you make smart financial decisions that will allow your company to grow. Imagine how a well formed plan can help you make the following decisions:

• Buy or lease - Whether it is property, vehicles or office equipment, having a strong understanding of the financial health and direction of your company can help you decide whether to make these types of investments, or to save your cash for other business needs.
• Tax planning - Have you implemented the best retirement plan strategy? Does your company donate to charities? Do you take advantage of all the tax credits and tax-free benefits available? Smart tax planning can save your business a lot of money in the long run.
• Change of entity - The decisions you make now concerning your business structure can affect your tax liability in the future. Perhaps switching from a C Corporation to an S Corporation would make better financial sense for you and your shareholders.
• Hiring - Can you afford to hire new full- or part-time employees? Have you factored in all of the costs associated with a new hire?
• Investors - It's not only start-ups that require capital. Having a solid plan will make your business more appealing to investors, and may also make it easier for you to obtain a bank loan, if necessary. 
• Selling - A sale is a common exit strategy, and sometimes even the ultimate goal.

Is Your Business On Track?

Author: Keith Huggett

Many business people write a business plan, start a business and then put that business plan in the filing cabinet. If you are doing this, you're wasting your business' greatest asset. Your plan is more than a tool you use to get started. It's a living document that helps keep you accountable, guides you as you grow your business and provides you with inspiration as to how you can evolve your business.

Now that we are entering the fourth quarter, dig out your business plan. See how your company is doing relative to the goals found in your plan. If you haven't reached all of your goals, figure out why. This exercise will help you look at your business not from a day-to-day operational perspective, but by comparing it to the big-picture goals that you set when you wrote the plan.

If you're ahead of your goals, do the same thing. If you're ahead of your plan because of good luck or outside influences, you know that you may not be able to plan on that in the future. On the other hand, if your business is performing better than you have expected, figure out where and why, and use what you learn to focus your improvement efforts for the rest of your business. It may be time to expand into a new business structure.  The Tax Office, Inc. is presenting Destination: Incorporation, a seminar on the A-Z's of Incorporating your Business at the end of October.

Analyzing your business can also help you plan what you will need in the coming year. You might be able to shift capital expenditures or other expenses to better plan your cash flow or manage your tax liabilities. If your company needs additional help, you can also get started on recruiting new employees or contractors.

When you are done with the process, update your business plan. Your plan isn't set in stone -- it should represent where your business is and where it's going, and those things can, and should, change. For help updating your business plan, talk to the business and accounting experts at The Tax Office, Inc. Getting professional input can help you better ground your plan in your business' operating and accounting realities.

Solid Business Plan Critical for Success

Author: Keith Huggett

For many companies, growth comes with forming a business partnership. Combining forces with another individual or company that complements your strengths and weaknesses is an excellent way to expand quickly and with less capital. However, no matter what business path you decide to take, having a strong business plan in place is critical. Consider it a road map to success. A solid business plan will be helpful in not just enticing investors, but also for keeping your business running smoothly.

Your business plan should include the following components in a clear, concise document:

• Describe the marketplace gap that your company fills. Whether you offer an innovative product that no other company has, or simply provide an unparalleled customer service experience within your industry, the first step is defining the gap your company aims to fill.

• Explain how your company fills this gap. What product features or unique service offerings does your company provide that others do not?

• Define your market. It is important to fully understand the size of your industry and how your company fits into it. You should also describe your target customer in this section.

• Outline your business model. You are presumably in business to make money; your business model defines how you will do this effectively.

• Understand your competition. Who else sells a product or service similar to yours? What advantages do you have over them and are they sustainable?

• Describe your sales strategy. In real life, "If you build it, they will come" is not an effective marketing strategy. You need to know how you will generate new customers and promote sales growth from year to year.

• Have an exit strategy. Do you plan to form a business partnership, keep it in the family or sell to a competitor in five years?

If you need help with developing a new business, forming a business partnership or tax planning for your existing company, contact the professionals at The Tax Office, Inc. We can help you with the day-to-day tasks of bookkeeping and the bigger picture strategy issues that every business faces. Contact us today to learn more.

7 Things You Must Include in Your Business Plan

Author: Keith Huggett

Whether you run a startup or an established enterprise, having a business plan will help you stay focused and keep you on track. Outlining your business goals and the steps you will take to reach those goals is the most direct path to success. Having a document that you can regularly refer to and improve will keep you moving in the right direction.

While every business plan is unique, there are some common factors that each one should have:

1. Executive summary: Although you write this last, the executive summary is one of the most important components of your business plan, especially if you are seeking outside investment.
2. Business description: What products or services do you offer? How are they different or better than your competitors' products or services?
3. Goals and objectives: What do you want your business to achieve, and in what time frame do you want it to happen?
4. Target market: Who is your target customer? Perhaps one of the most important components of your plan is understanding who you are trying to reach and what they need most. Even the most innovative business idea is dead in the water if nobody wants or needs it.
5. Market strategy: After you identify your target customer, you have to come up with the best strategy for both reaching them and converting them into a customer.
6. Management team: Describe the organization of your business and the key people who are involved with managing it. Don't forget to account for growth. Even if you are not yet fully staffed, describe the positions you intend to fill and the requirements for each.
7. Financial plan: Coming up with budget projections and tax planning can be challenging, but with the help of qualified professionals and adequate research, you can create realistic estimates based on your industry.

5 Things You Should Avoid 

Author: Keith Huggett

The executive summary is a key part of your business plan. It's the point where a potential investor decides whether to continue learning the details of your business, or whether to move on to the next business plan. The purpose of the executive summary is to give an overview of your business and grab the attention of the reader. This is often more difficult than you may expect, especially since you only have a couple of pages to work with.

When preparing your executive summary, avoid these five common mistakes to improve your chances of success:

1. Don't get too detailed. While the details of your business may be very compelling, the executive summary is not the right place to elaborate. Stick to an overview of the content included in the report and leave the details for later.
2. Don't make it too long. If you follow the first rule, this shouldn't be a problem. There is no set guideline for length, but in general you want to keep it between one and four pages.
3. Don't have unrealistic expectations. The purpose of the summary is not to land an investor, but to generate interest in your business and start a conversation.
4. Don't overstate your selling points. Investors can see right through superlatives and selling language. Simply state the problem, the solution and how your business idea solves it. The facts should be enough to convince a reader that your business is worth the investment.
5. Don't set the wrong tone. Every business is different, and so is every business plan. While it's important to stand out from the crowd, it's also important to understand your target audience. Consider the background of the type of person reading your business plan and use language that they are likely to respond to.