Every new business owner knows that a business plan is critical ? it is drilled into them by potential investors and every banking officer they meet. So why is something that is so important to the launch of a new venture so difficult to write? Good question! In this article I will try to address when you should go out and hire a business plan writer versus taking on the task yourself. First time entrepreneurs often cringe when sitting down to write their business plan. Some spend 6 months agonizing over each period and comma, and even worse others spend 6 months procrastinating and do nothing. So lets break it down and see where / when a business planning company should be brought in:
Who will read your business plan and why?
First you need to really understand the purpose of your business plan and who your audience (reader) will be. This is an important point as a business plan being written for a $100,000 loan is VERY different than a document needed for a $10 million round of venture capital! Since this article is focused on first-time small business owners, I will focus on preparing business plans raising less then $1 million in capital. For this "startup" or "seed" business plan 30-35 pages are perfect. You are not expected to deliver a thick book (and no one will read it anyway!). Once you have this down, you can honestly assess which sections you are qualified / comfortable writing and which may need consulting help.
Here is what you should write on your own
It is important for you to write a basic draft / outline of your business plan. Without this direction you are probably asking too much of your consultant. Once you have your thoughts organized on paper you can see what you are comfortable completing. Here are a few suggestions:
Executive Summary: Draft the opening of your business plan ? then hire a pro to come in and re-write it. Your executive summary will be read first and first impressions are critical!
Marketing: You need to write your own definition of your target customer / audience. For the market research on industry growth and fancy charts go ahead and hire a consultant.
Competitive Analysis: You should put together the first draft of this section, as it is almost as important to understand your competitors, as it is your customers. If you find a consultant that is an expert in your field, then you can work together and add to your initial list.
The Dreaded Financials
This is the most difficult part of a startup business plan, as you are making projections and assumptions on products / services that you have not even produced or sold yet! If you are stuck on this section you can hire a business plan consultant to just assist you with completing your projections (income statement, cash flow, and balance sheet). Figuring out the cost of goods, delivery costs, and return rates can be simplified by breaking them down into a "light" spreadsheet. Next you need to understand your startup and operating costs ? items like electricity, travel, phone expenses, etc. Again just organize these and your consultant can make all the fancy charts and graphs. Just make sure you understand all of the assumptions ? for example if you are opening a retail business, you should not look towards your consultant to "guess" your rent ? go out and meet with a realtor and come back with real data. If you work closely with your consultant, the financials are a great section to bring in professional help.
Managing Expectations
Now that you know a bit more about when to hire a business plan writer you also need to manage your expectations. You can't expect a $1,000 business plan to have 20 pages of competitive analysis and a full-blown marketing strategy! If you carefully work through which sections of your business plan need outside help and then manage your consultant closely, your final document will be a success! My next two articles will focus on "How to Find / Hire a Business Plan Consultant" and more importantly "When to Fire your Business Plan Consultant!"
Howard Schwartz is a partner in several business strategy groups, including HJ Ventures International, Inc. Howard has worked with hundreds of entrepreneurs worldwide with a focus on writing business plans for companies interested in raising capital from Venture Funds and Angel Investors. Howard's business plans have secured several million dollars in funding.
For more information: http://www.hjventures.com
housekeepers near Buffalo Grove ..Most companies that are worthy of raising venture capital have... Read More
Every new business owner knows that a business plan is... Read More
A menu is the foundation of any restaurant; Guests will... Read More
With the help of balanced scorecard strategy map, it is... Read More
So what makes a vision successful? Everyday companies try to... Read More
Many movies have been made about the tragic story of... Read More
Although North Americans were the dominant population on the Internet,... Read More
Please take a moment before you read any further and... Read More
Note to Rite Aid and CVS: It's not about the... Read More
The trick is to determine what uniquely identifies your best... Read More
You know you need a business plan. You probably realize... Read More
You have heard that there is extra money on the... Read More
Growing your own small business can be one of the... Read More
What gets measured gets done.How do you keep your business... Read More
Every decade we seem to come up with a buzz-word... Read More
Possibly THE most frequently asked question of me is "What... Read More
Succession planning, like any business acumen, is both an art... Read More
In 1997, David Steele was making the transition from a... Read More
These may sound like no brainers, but you'd be surprised.... Read More
Richard L. Daft one of the country's recognized academic leadership... Read More
I recently took an organizational behavior class where my professor... Read More
The new check cashing instant clearing will take some time... Read More
The format of a Business Plan is something that has... Read More
Is your business growing as fast and effectively as it... Read More
David E. Gumpert, author of Burn Your Business Plan, often... Read More
custom home cleaning Mundelein ..Strategic planning and consulting is the strategy roadmap to manage... Read More
This week I coached a wonderfully lovely woman I'll call... Read More
With the help of balanced scorecard strategy map, it is... Read More
After 128 years of business, a household word, Montgomery Wards,... Read More
Microsoft Great Plains, former Great Plains Dynamics is excellent fit... Read More
Here's a really simple way to make sure your plans... Read More
In today's rapidly changing and highly competitive markets, many privately... Read More
Ask a small business owner about their strategic plan and... Read More
All investors greatly desire and are motivated by a clear... Read More
Writing a business plan is no easy task, sure you... Read More
One of the quintessential parts to any business is your... Read More
What gets measured gets done.How do you keep your business... Read More
The first step in starting a restaurant is proper planning.... Read More
One of the key challenges for any business is to... Read More
We have been spending many hours surveying the market for... Read More
Experts estimate that 90 percent of Australian businesses are overspending... Read More
This will make some people angry as hell, but it's... Read More
More than $117 billion passed hands from Internet shoppers to... Read More
Business plan financial projections seem daunting because they are so... Read More
Remember reading "Alice in Wonderland?"She asks the Cheshire Cat, "which... Read More
Writing a business plan to help you direct and manage... Read More
A menu is the foundation of any restaurant; Guests will... Read More
ACTION PLANNING: Action Planning is a process to develop strategies... Read More
I read once that something like 30 percent of all... Read More
How important is a vision statement to your company or... Read More
Strategic Planning |