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When Do I Need To Hire A Business Plan Consultant

by: Howard Schwartz

Every new business owner knows that a business plan is critical – it is drilled into them by potential investors also 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 also 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 six months agonizing over each period also comma, also even worse others spend six months procrastinating also do nothing. So lets break it down also see where / when a business planning company should be brought in:

Who will read your business plan also why?

First you need to really understand the purpose of your business plan also 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 also 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 also re-write it. Your executive summary will be read first also first impressions are critical!

Marketing: You need to write your own definition of your target customer / audience. For the market research on industry growth also fancy charts go ahead also 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 also add to your initial list.

The Dreaded Financials

This is the most difficult part of a startup business plan, as you are making projections also 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, also balance sheet). Figuring out the cost of goods, delivery costs, also return rates can be simplified by breaking them down into a “light” spreadsheet. Next you need to understand your startup also operating costs – items like electricity, travel, phone expenses, etc. Again just organize these also your consultant can make all the fancy charts also 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 also meet with a realtor also 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 or else need to manage your expectations. You can’t expect a $1,000 business plan to have 20 pages of competitive analysis also a full-blown marketing strategy! If you carefully work through which sections of your business plan need outside help also 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” also more importantly “When to Fire your Business Plan Consultant!”

About the author:
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 also Angel Investors. Howard’s business plans have secured several million dollars in funding.

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