A survey of Canadian small business owners by Ownr, an RBCx venture, reveals the key benefits of business planning and the pitfalls entrepreneurs experience.
Toronto, May 15, 2024 /CNW/ – Creating a business plan may seem like an obvious asset to have when running a business, but it hasn't always been a top priority for many entrepreneurs. According to recent research, owneris a leading small business legal management platform that reveals changing sentiment around the value of business planning to support entrepreneurs' success, the key barriers to starting or finishing a plan, and different approaches to the business planning process. I am.
Over the past three years, market conditions have changed and business competition has increased, with 58.7% of entrepreneurs surveyed Canada We recognize the role and importance of having a business plan. But when it comes to putting it down to paper, 67 percent of entrepreneurs admit that the financial planning and cash flow forecasting section is a difficult area to tackle. As a result of this planning impediment, only 26.8 percent of survey respondents were able to utilize a business plan as an effective tool for fundraising and financing opportunities. Such challenges in the business planning process, whether it is due to lack of knowledge, experience, or resources, often prevent entrepreneurs from completing their business plan or even starting it completely. hinder.
To fill the gap, owner started Owner Blueprintis a free, tailored business plan that helps aspiring and existing entrepreneurs create a comprehensive business plan that includes sections on financial planning, customer insights, competitive and market analysis, brand and marketing, and operational strategy. is a step-by-step digital business planning tool.
“Our mission has always been to make business ownership accessible to both parties. and Achievable. “Having a solid business plan is a critical component to success as an entrepreneur.” Shane MurphyCEO of owner. “However, we also know that the business planning process can feel difficult and tedious, especially for those who have never experienced it before. Owner Blueprint It has been specially designed to help aspiring and existing entrepreneurs turn their business ideas into viable business strategies in a simple, digitally accessible and educational manner. ”
Entrepreneurs prefer to “walk the pavement” before “putting pen to paper”
The survey revealed that entrepreneurs are divided in the number of people who have or feel the need to have a business plan to get their business off the ground. According to respondents, 54.3% of entrepreneurs started their businesses without a formal plan, while 45.7% had a plan in place. The most common reasons for entrepreneurs who start a venture without a business plan are not knowing where to start (34.1%) and believing their business idea is easy enough to implement (33.5%) ), and that they did not feel the need to do so as individual entrepreneurs. (30.1%).
There are also different approaches to business planning when it comes to putting pen to paper. Of the entrepreneurs surveyed with business plans, 28.7 percent used traditional spreadsheets to create their business plans, while 19.5 percent relied on intuition or informal methods. Only a minority (6.8%) used a planning template.
“While every business and preferred planning style is different, there is a basic framework for building a clear and compelling business plan that meets the key needs of potential investors, partners, and financial institutions. There are elements,” Murphy said. ”owner blueprint The step-by-step business plan generator allows entrepreneurs to think through and understand that information so they can create a comprehensive and clear business plan focused on achieving their goals. ”
business case for business plan
Although creating a business plan requires active and dedicated effort on the part of a time-pressed entrepreneur, 77.7 percent of entrepreneurs surveyed who said they had a business plan said their business plan provided direction. They say it has helped them gain clarity and stay focused on business priorities. . Additionally, almost half (45.4%) of respondents said they now have more confidence to make informed business decisions.
Of those respondents who have focused on business planning in recent years, 65.6% are motivated by a strong desire to achieve sustainable long-term growth and competitiveness in a rapidly evolving market.
As entrepreneurs navigate the complexities of business ownership; owner remains committed to providing the simple, digitally enabled and effective tools and resources you need to succeed.
For more information, owner blueprint, visit www.owner.co/blueprint.
Research method
This study was conducted among: April 2, 2024to April 12, 2024based on the responses of 922 participants. Canada Through an online survey provided to ownercustomer database. All participants admitted to starting their own business. The results in this report have an estimated margin of error of 3%.
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owner is on a mission to help Canada's small and medium-sized businesses become big businesses. Our all-in-one digital platform allows everyday entrepreneurs to streamline registration and formation, automate paperwork, and maintain ongoing compliance without expensive legal fees or confusing jargon. can do.Join over 160,000 Canadians as he launches his dream business owner.
owner is a venture of RBCx, a division of Royal Bank. Canada. For more information, please visit: www.owner.co.
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RBCx powers bold ideas, founders, and technology companies. We know that building a great business takes more than just finance. That's why his four pillars of our company – Banking, Capital, Platform and Venture – combine to make us a trusted supporter of innovation in Canada. We leverage our deep expertise to support businesses of all sizes and stages, leveraging RBC's deep experience, network and capital to solve tomorrow's big problems.
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