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Consult an Experienced CPA to Develop a Strategic Business Plan
July 18, 2023
Most entrepreneurs have an excellent vision for their businesses. However, to successfully execute the vision, one must develop a viable strategic plan, which requires knowledge of multiple business proficiencies. The most critical of these proficiencies is the financial component, as a strategic plan consists of multiple financial goals.
When developing your strategic plan, it is best to consult an experienced Certified Public Accountant (CPA) to assist with the financial information and all other components. This will help ensure a thorough analysis of your business's financial information and how that drives the entire strategic plan.
A CPA is in the perfect position to assist in the development of a strategic plan as they typically have a high business acumen developed from years of working with clients across many industries. By consulting with them, you gain access to the deep well of experience they have cultivated throughout their career.
What Is a Strategic Plan?
A strategic plan is a high-level road map for achieving the vision and mission of a company. It is a document that captures a business's "big picture" and describes where it is going over the next three to five years. In addition, it outlines how a company plans to measure its success and achieve its goals.
A strategic plan does not only focus on a particular section of business but on the entire company. It considers the trends, threats, changes, and opportunities in the wider environment. It also factors in feedback from various stakeholder groups, as well as the legacy and resources of a company.
Components of a Strategic Plan
Whether you are developing one from scratch or updating an existing one, there are key components you must include in a strategic plan. The following are the major components of a standard strategic plan:
- Vision statement: provides a short and clear summary of what your company will look like in the future.
- Mission statement: defines the purpose of your business; why your business exists in the first place.
- Goals and Objectives: includes short- and long-term goals as they relate to your overall business vision.
- Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis: enables you to identify and list the strengths, weaknesses, and opportunities of, as well as threats to your business. This is vital because it allows you to identify potential obstacles to reaching your business goals. In addition, it will help you determine how to overcome them.
- Action Plan: You can develop an action plan using insights obtained from a SWOT analysis. Action plans include strategies for achieving short- and long-term objectives and overcoming challenges.
- Key Performance Indicators (KPIs): KPIs are measurable components that enable businesses to monitor the progress of specific initiatives concerning business objectives.
Why Businesses Should Consult an Experienced CPA When Developing a Strategic Plan
CPAs play an increasingly vital role in strategic planning, both in terms of finance and development. Here are three ways an experienced CPA can help a business develop a strategic plan:
Establishing Viable and Profitable Goals
Business owners are tasked with generating company profits while keeping investors satisfied. Considering what is at stake, seeking advice from an experienced CPA eliminates the possibility of leaving financial outcomes to chance. A professional CPA will gather financial data and transform it into information the business owner can use to make decisions and set feasible and profitable goals.
Financial Risk Management
Risk is an inherent part of operating any business. To prevent losses, you must constantly monitor the financial market and have a backup plan if you experience losses due to circumstances beyond your control. And this is where consulting an experienced CPA is crucial because they are experts in carrying out this function.
CPAs help ensure a business has an effective financial risk management system in place without depending on subjective data. They achieve this by quantifying risk management goals, creating financial reports, and providing exact numbers to the business executives.
Developing Feasible Acquisition Plans
Ambitious business owners may intend to arrange a profitable acquisition deal or a merger for expansion, and finances are crucial in this context. CPAs can be extremely helpful here because they can provide accurate financial projections of the outcome due to their aptitude for numbers and data.
Not only will CPAs forecast the outcome of a potential merger, but they can also carry out a market survey for prospective companies for profitable acquisitions. Thus, helping the company develop an effective strategic plan in this aspect and other areas involving beneficial purchases.
Achieving Success with a Well-Written Strategic Plan
Benefits of a well-written strategic plan include:
Promoting Proactivity
Businesses can predict unfavorable situations and take the necessary steps to avoid them with the help of a well-written strategic plan. Rather than reacting to events as they happen, a sound strategic plan allows a business to adapt to changing market trends and remain ahead of the competition.
Creating a Sense of Direction and Enhancing Productivity and Efficiency
A well-written strategic plan gives a business the framework needed for expansion, measuring success, compensation of employees, and creating limits for effective decision-making. With a sense of direction, a company is more likely to achieve long-term success. Furthermore, a well-written strategic plan directs management discussions and decision-making in budget and resource estimation required to meet set goals, thus enhancing productivity and efficiency.
Boosting Profitability and Market Share
A strategic plan is a vital component in planning for growth. It provides valuable insights into customer categories, market trends, and product and service offerings that impact a business's success. Using this tool, businesses can focus on the most profitable areas of their business and make decisions to increase profitability. A well-written strategic plan also includes strategies to maximize sales and marketing initiatives, which help boost profitability and market share.
Developing a sound strategic plan can be the difference between failure and success in a business. Failure to build a strategic plan based on experienced, professional consultation can lead a business to wander haphazardly, lacking priorities and leaving workers confused about their roles. Be sure to secure professional advice from an experienced CPA to develop a successful strategic plan, so your business can be prosperous for years to come.
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