If you don't have a business plan and are a little overwhelmed by the prospect of completing one from scratch, there is help. There are consulting firms and accounting firms that specialize in assisting companies with their business plans. Fees can range from about $500 to provide an objective review of your business plan to over $30,000 to research and write a business plan from the beginning. The average consulting fee is about $10,000 nationwide
Should you hire someone to write your business plan? You can do it yourself and do a good job, but writing your plan is time consuming and not easy to do if you've never written one before. Some people simply have difficulty expressing their thoughts on paper. Most entrepreneurs focus on the attributes of their products and ignore their competition. They also assume that customers will come to them with a minimal marketing effort. If money is an issue, you can draft the business plan yourself and then have a professional review your draft and recommend changes and if you wish, polish it up.
How do you find a consultant?
FREE to begin with Some consulting firms that are also finders or intermediaries will complete your business plan for you at no out-of-pocket cost, or a very minimal charge, if you also hire them to find the capital you need. The fees, sometimes called finders, contingency or success fees, to introduce you to investors, can range from 5% to 15% of the total amount of the capital raised. You only pay the success fee when the funds are available to you. Additionally there are intermediary firms which will give a substantial discount on the business plan preparation fee, defer the majority of the fee until the funding is completed or refund the business plan fee completely from the finders or success fee.
Equity Trade There are consulting firms which will accept equity in your company for all or part of the business plan fee. However before the business plan is completed it may be difficult to determine the viability of the company or what a fair equity share would be.
You get what you pay for Most firms that prepare business plans charge fees based upon the complexity of the project, how much research has been done, how much research needs to be completed and how much assistance can be provided by the entrepreneur. This information can usually be obtained in a one hour meeting or telephone call. The fee is based on the number of hours the consultant believes is necessary to complete the project. Most consultants will give the entrepreneurs a firm proposal which includes the total fee, completion date for the draft of the business plan, completion date for the final business plan and schedule of payments.
Don't expect the consultant to prepare the business plan in your absence. Most good consultants insist that the entrepreneur contributes as much as possible to the business plan and knows it backwards and forwards. You, the entrepreneur are writing the business plan with the consultant. After all, the entrepreneur will be responsible for answering the investors or bankers' questions, not the consultant.
The thought process the entrepreneur goes through when writing the plan is important unto itself, apart from the goal of a having a document to present to investors or lenders. You can't expect a consultant, even a brilliant one to create a company for you on paper. The consultant will have the skill of translating your vision for the company into the format investors or lenders are used to seeing, and expressing this vision in a way that gets investors or lenders excited about participating financially in your venture.
But again, the entrepreneur must be the true expert when it comes to the proposed venture.
If you don't' know your company, who does?
Author Resource:-
Get your free Business Plan Format. Dee Power and Brian Hill are the authors of several nonfiction business books. Her company provides the services of professional experts to entrepreneurs.
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