A survey of Canadian small business owners
by Ownr - an RBCx venture - uncovers key business planning benefits
and pitfalls experienced by entrepreneurs
TORONTO, May 15, 2024
/CNW/ - While creating a business plan may seem like an
obvious asset to have when operating a business, it has not always
been a top priority for many entrepreneurs, until now. A recent
study by Ownr, a premier small business legal
management platform, unveils shifting sentiments around the value
of business plans to support entrepreneurs' success, key barriers
to starting or finishing their plans and differing approaches to
their business planning process.
With changing market conditions and competition intensifying for
businesses in the past three years, 58.7 per cent of surveyed
entrepreneurs in Canada have
recognized the role and increased importance of having a business
plan. But when it comes time to put pen to paper, 67 per cent of
entrepreneurs admit that sections around financial planning and
cash flow forecasting are challenging areas to tackle. As a result
of this planning roadblock, only 26.8 per cent of surveyed
respondents were able to leverage their business plans as an
effective tool for financing and funding opportunities. Challenges
like these in the business planning process - whether it stems from
a lack of knowledge, experience, or resources - often prevent
entrepreneurs from completing, or even starting a business plan
altogether.
To bridge the gap, Ownr has launched Ownr
Blueprint, a free, step-by-step digital business planning tool
that is tailored to help aspiring and existing entrepreneurs create
a comprehensive business plan that includes sections around
financial planning, customer insights, competitive and market
analysis, brand and marketing, and operational strategy.
"Our mission has always been to make business ownership both
accessible and achievable. Having a solid business plan
is a critical factor to entrepreneurial success," says Shane Murphy, CEO of Ownr. "But we also
know that the business planning process can feel daunting and
tedious, especially for those who have never done it before.
Ownr Blueprint was specifically designed in a way that is
simple, digitally accessible and educational to help aspiring and
existing entrepreneurs turn their business ideas into an actionable
business strategy."
Entrepreneurs prefer to 'hit the pavement' before putting 'pen to
paper'
The survey revealed a divide in the number of entrepreneurs who
had, or felt the need to have, a business plan to get their
business off the ground. According to respondents, 54.3 per cent of
entrepreneurs started their business without a formal plan, while
45.7 per cent had one in place. For entrepreneurs who launched
their venture without a business plan, the most common reasons
included not knowing where to start (34.1%), believing their
business idea was straightforward enough to execute on (33.5%) and
not seeing the need for it as a solopreneur (30.1%).
There are also varying approaches to business planning when it
comes to putting pen to paper. Among surveyed entrepreneurs with a
business plan, 28.7 per cent used traditional spreadsheets to
capture their business plan, while 19.5 per cent relied on
intuition and informal methods and only a small number (6.8%) used
a planning template
"While every business and preferred planning style is unique,
there's a foundational framework to building a clear and compelling
business plan, and there are important components that potential
investors, partners and financial institutions will look for," says
Murphy. "Ownr Blueprint's step-by-step business plan
generator helps entrepreneurs think through and capture that
information so they can create a business plan that is
comprehensive and clearly focused on achieving their
objectives."
The business case for a business plan
While creating a
business plan requires proactive and dedicated effort on the part
of time-strapped entrepreneurs, 77.7 per cent of surveyed
entrepreneurs who indicated they had a business plan said it
offered them a clearer sense of direction and helped them stay
focused on their business priorities. Nearly half of respondents
(45.4%) also stated that it gave them more confidence to make
informed business decisions.
Among respondents who were more focused on business planning in
recent years, 65.6 per cent were motivated by a strong aspiration
to attain sustainable, long-term growth and competitiveness in a
rapidly evolving marketplace.
As entrepreneurs navigate the complexities of business ownership,
Ownr remains committed to empowering them with simple,
digitally enabled and effective tools and resources they need to
succeed.
For more information about Ownr Blueprint, visit
www.ownr.co/blueprint.
Survey Methodology
The survey, conducted between
April 2, 2024, to April 12, 2024, captures the responses of 922
participants based in Canada via
an online questionnaire provided to Ownr's customer
database. Every participant identified that they have started their
business. The results of this report have an estimated three per
cent margin of error.
About RBC
Royal Bank of Canada is a global financial institution with
a purpose-driven, principles-led approach to delivering leading
performance. Our success comes from the 94,000+ employees who
leverage their imaginations and insights to bring our vision,
values and strategy to life so we can help our clients thrive and
communities prosper. As Canada's
biggest bank and one of the largest in the world, based on market
capitalization, we have a diversified business model with a focus
on innovation and providing exceptional experiences to our more
than 17 million clients in Canada,
the U.S. and 27 other countries. Learn more at rbc.com.
We are proud to support a broad range of community initiatives
through donations, community investments and employee volunteer
activities. See how at rbc.com/community-social-impact.
About Ownr
Ownr is on a mission to help make Canadian small business
a big deal. With our all-in-one digital platform, everyday
entrepreneurs can streamline registration and incorporation,
automate paperwork, and maintain ongoing compliance—all without the
high legal fees and confusing jargon. Join over 160,000 Canadians
who launched their dream business with Ownr.
Ownr is a venture of RBCx, a division of Royal Bank
of Canada. For more information,
visit www.ownr.co.
About RBCx
RBCx powers bold ideas, founders, and technology companies. We know
building great businesses takes more than just finance, which is
why our four pillars – Banking, Capital, Platform, and Ventures –
combine to make us the go-to backer of Canadian innovation. We use
our deep expertise to support businesses of all sizes and stages,
and leverage RBC's extensive experience, networks, and capital to
solve tomorrow's big problems.
SOURCE RBC