Select selecting a business plan writer can be a complex process. There are numerous highly qualified professionals that specialize in the development of both business pans and pitch decks that are appropriate for seeking capital from private investors, through the SBA loan program, or through conventional business loans. In this article, I am going to provide an overview of the specific attributes that you should review when potentially working with a business plan writer for your entrepreneurial venture.
It goes without saying that experience is typically the most important aspect when selecting someone to work with for the development of a business plan. As it relates to experience, they should have a complete understanding of the industry in which you are developing a business. For instance, if you were establishing a restaurant then you should ensure that the business plan writer has a comprehensive understanding of the anticipated revenues, contribution margins, and underlying expenses that are common for this industry. One of the best ways to determine whether or not the potential business plan writer has the requisite experience is to request samples. The vast majority of highly experienced professionals in this field will typically have several samples specific for each industry that you can review.
Beyond experience, it is important to ensure that the writer takes a market research focused approach to the development of your business plan. This is primarily due to the fact that almost all financial institutions and private investors want to see an assumptions driven business plan. An experienced plan writer will focus very heavily on first conducting an extensive amount of analysis regarding the amount of competition that your business will face, the population size of your market, the median household income, as well as population density. Highly talented writers will often conduct an extensive economic analysis of the local market as well, including review of how changes in major metrics such as GDP, consumer spending trends, interest, rate trends, and unemployment rates can potentially impact your startup venture. If this is going to be an enterprise, that is e-commerce focused or will be conducting its operations on a nationwide basis, this type of analysis should be conducted on a broad-based basis.
The most important segment of any business plan is the financial model. Most business planning firms will take a three-year to five-year approach when creating the profit and loss statement, cash flow analysis, and balance sheet. It is very important to ensure that the business plan writer has the ability to create a customized financial model specific for the needs of your enterprise. Although all financial statements have numerous similarities in common, there are specific components of that need to be addressed through custom analysis and financial modeling. The writer should be able to use program such as Microsoft Excel in order to provide a fully customized solution specific for the needs of your organization.
Another thing to know when interviewing potential candidates to write your business plan is to make sure that they have a deep understanding of marketing. As this is the way that your business will become highly visible and successful, it is extremely important that the firm that you potentially hire is able to clearly delineate strategies not only for online marketing, but also for traditional advertising channels as well. The individual should have a comprehensive understanding of search engine optimization, pay per click marketing, use of social media, targeted social media ads, as well as working with third-party firms in order to engage in public relations. The business planning firm should have a component of their documents that include a return on advertising expenditures so that it can understood which channels are most likely to produce the most revenue.
An additional consideration is to make sure that the writer focuses very heavily on the risks associated with your business startup. One of the common mistakes that is made when writing a business plan is to provide an overly optimistic picture of the potential revenue and profits. Any well written business plan is going to focus very heavily on the numerous risks that are associated with establishing a new for-profit venture. The scope of this analysis should include economic risks, financing risks, competitive risks, as well as issues that can occur during the startup process. If this is a business that is going to be focused on software or any other intellectually driven discipline, a discussion regarding the risk of automation should also be included in the business plan.
Beyond these core components, a highly talented business plan writer will also be able to provide a unique aesthetic feel to the business plan. As many financial institutions, angel investors, venture, capitalists, and private equity firm professionals often receive hundreds of business plans on a daily basis, it is imperative that the document have an aesthetically pleasing feel so that it stands out. Many firms will often have staff associates or independent contractors that are talented graphic designers that can assist with providing unique graphic elements within the document.
Now we come to price. If you conducted any amount of research regarding how much a business plan writer charges, you have probably come to realize this can vary substantially. On the low end, you can expect a fee of $500 to $700 for a business plan that its appropriate for a small business, such as a new retail store or service base enterprise. If you are developing a software as a service business, healthcare firm, or any other complex enterprise then you can expect a fee of $1,000 to $5,000. Typically, more experienced firms and professionals that are involved in this field will charge significantly more given their ability to apply their business acumen when developing your document. It should be noted that lower cost options do not always mean that the business plan will be of a lesser quality. There are numerous business plan firms to operate on a smaller scale with very little staff that are able to more cost-effectively price their services as compared to larger scale firms.
One of the other considerations is the amount of time that is necessary to create a business plan. The vast majority of reputable and experienced business planning firms are typically able to produce the first draft of the document in 7 to 14 days. There are exceptions to this timeframe. For instance, if you were developing a business that encompasses a wide range of healthcare services then you can expect a three week to one month turnaround time given the significant amount of additional research that needs to be completed as well as the complexities of developing a financial model for this type of business.
Finally, it is important to make sure that you have an individual that is excited to work with you and will deliver exceptional results that will impress a potential funding source. Most business plan writers should be available not only by phone but also for ongoing video conferences so that they can showcase their abilities to you and how they can create a document that would be appropriate for numerous different types of financing scenarios.