Business Plan Price Traps

It still amazes me that some 40% of those that respond to our advertisements ask for a price on their plan without offering any information about their business, not even the type of business.

* Skin in the Game - That means CASH invested, and the more someone has invested, (25-30% or more) in combination with historical operations/financial statements, the less detail and therefore time/costs involved in preparing a business plan is a general rule.

* Competition and Market Analysis - This is a big, make that huge item that almost never has enough detail and analysis in the 20-25 plans we receive each month. This is easy for a local restaurant in a small town but not so easy for new technology with worldwide sales.

* Web versus bricks and mortar - Web usually means more market analysis, let alone a national versus regional approach than bricks and mortar. In addition, a SEP analysis is important. Hence, more time means more cost.

* The Ask – If you're looking for $100,000-350,000, then 1-2 partners or SBAExpress are good options, and we can complete a plan to address both concurrently that is 18-20 pages in length. If you need a million plus for VC or many investors through a PPM, then 40-50 pages or much more is the rule.

I could go on and on, but there are four reasons that business plan prices vary। So, BE VERY CAREFUL with those that quote rates blindly, as the bait and switch or the trash can plan due to "one box fits all, one price fits all" approach is an almost certain result.

Free consult tim@thebusinessplanconsultants.com available!

Storytelling is for Novels, and not (too much) for Business Plans

First, let me say that to a degree, plans do need to tell a story, but for the most, story implies fiction versus non fiction for too many readers. More importantly, while a business plan is more of a marketing document to investors n small increments within a PPM of Offering Memorandum, even with great legal disclosures that are the nature of these documents, as much transparency as possible is still advisable. This isn't the go go 90's and people with lots of disposable income investing. Investors on all levels are smarter and more prudent, and don't want to be sold as much as they want to see the facts laid out in a logical order.

Nonetheless, there is a sliding scale of "Just the Facts" like Joe Friday of Dragnet fame versus a story depending the business plan audience. For Venture Capital firms, Bankers and Angels alike, the balance leans strongly to just the facts within an organized transparent presentation...not a story.

Transparency is another topic I have written about often, which goes to full disclosure of the background and facts. As business plan writers, we can research and add some facts, but we write non fiction 100% to the best of our knowledge, relaying on clients to provide an open book of factual information (hopefully not in dribs and drabs) that we can build on to create plan of substance.

In conclusion, an organized presentation of facts is in effect, a non fiction story, one that will gain respect, and often, the capital needed when said facts warrant said investment.