Every new business owner knows that a business plan is critical – it is being penetrated by potential investors and every banker they encounter. So why is it so important to start a new company so difficult to write? Good question! In this article I will try to answer when you must go out and hire a business plan writer, and you undertake this task yourself. Entrepreneurs often tend to sit down and write a business plan. Some spend 6 months in confusion in each period and a coma, and even worse people spend 6 months in postponing and doing nothing. The same goes for booty and see where planning companies are planning:
Who will read the business plan and why?
First you need to understand the purpose of the business plan and the audience (readers). This is an important point because the business plan written for $ 100,000 is very different from the $ 10 million venture capital document! Since this article primarily addresses small business owners, I will focus on preparing business plans to raise less than $ 1 million in equity. For this business plan “starter” or “seed” 30-35 pages are excellent. Do not expect to deliver a thick book (and no one will read it!). When you do this, you can honestly judge which sections are qualified / comfortable to write and that may need consulting assistance.
This is what you should write yourself
It is important to write a basic outline of the project / business plan. Without this address you will probably ask many of your consultants. When you have reflective conversations on paper, you can see what you have to do. Here are some suggestions:
Summary: Be prepared to open your business plan – then hire a professional and re-enter it. Your abstract will be read first and first impressions are critical!
Marketing: You have to write your own definition of the target customer / recipient. To conduct a market research on growth and imagination, hire a consultant.
Competitive Analysis: The first draft of this section should be prepared, because it is almost as important to understand the competitors as they are the customers. If you find a consultant who is an expert in your field, you can collaborate and add to your initial list.
This is the most difficult part of your home business plan as it is making predictions and assumptions about products / services that have not yet produced or sold! If you are blocked in this section, you can hire a business plan consultant to help you with your forecasts (income statement, cash flow and balance sheet). Cost of goods, delivery and rates of return can be simplified by dividing into “light” spreadsheets. Then you have to understand the start and operating costs – things like electricity, travel expenses, telephones, etc. Again, organize these and your consultant can draw up all the fancy graphics and graphics. Just make sure you understand all the assumptions – for example, if you open a retail business, do not look in the direction of the consultant to “guess” the rent – go out and meet real estate and come back with real data. If you work closely with your consultant, funding is a big part of bringing professional help.
Now that you know more about this when you hire a business plan writer, you also need to manage your expectations. You cannot expect a $ 1000 business plan to have 20 pages of competitive analysis and complete marketing strategy! If you carefully analyze which sections of the business plan need outside help and then work closely with the consultant, the final document will be a success! My next two articles will focus on “How to find / hire a business planning consultant” and most importantly “When to establish a business plan