How to Choose a Business Plan Writer

How to Select a Business Plan Writer

While the end product you seek is a document, the quality of the writer will be puntuated by his or her ability to provide strategic consulting during the process.

The business plan writing industry is highly fragmented with several agencies and many independent consultants. There are advantages and disadvantages with agencies. Some agencies actually provide a beneficial team approach, and others only purport to provide a team when in fact the project is ultimately only driven by one person. The vague nature of online consulting has led at least one agency to repeatedly overcharge clients' credit cards. Pay by check to avoid such fraud, and quickly address unauthorized alterations to the signed contact.

Another disadvantage of agencies is they typically only pay 20%-50% of the fee to the consultant. Therefore, while you may pay $5,000 for a business plan, the consultant is only motivated to provide a $2,500 effort.

Regardless of whether an agency is used, you will want to know the consultant's background in your industry. Previous experience in your industry will provide a better foundation and allow the consultant to focus on customization, rather than spending time learning and developing the basic market industry section. Note, however, the more experienced a consultant is in your industry, the more opinionated he or she will be. Playing Devil's Advocate and subjecting the client to rigorous questioning is part of the process to make the plan "investor ready."

There is a great range of prices charged in the market, with some correlation to quality. One means of judging a consultant's product quality is to request a sample plan. However, viewing a single sample will not provide a clear indication of how much language is computer generated "boilerplate." The quality you require is also determined by your goals. You might have trouble raising $50 million in venture capital with a $300 business plan. But if seeking a $250,000 collateralized SBA loan to start a Laundromat, you probably don't need to pay $20,000 for the business plan.

When interviewing a potential consultant to prepare fund raising documentation, he or she should inquire about the financing strategy. There needs to be agreement between revenue projections, market share, the offering structure and return on investment expectations. Make sure the consultant has a firm understanding of these variables, which must correlate.

Good business plan writers have a broad skill set. The following is a list of attributes to consider:

1) Command of the written language
2) Ability to present a compelling story in the narrow confinds of financial writing
3) Understanding of the industry
4) Knowledge of Excel
5) Knowledge of accounting
6) Knowledge of capital markets
7) Graphic design ability
8) Organizational skills
9) Ability to interface with executives, investors and lawyers
10) Research and internet skills

Creativity is a skill unique in its own right. My idea to write an article about how to select a business plan writer, as a way to market my own services has been a successful marketing strategy.

Your consultant's ability to develop creative solutions can result in saving your business millions of dollars. The more time you can spend brainstorming with an experienced consultant, the more intellectual property is developed.

I have clients approach me with a very wide range of preparedness. I would be wary of a consultant providing a quote without at least a cursory overview of current documentation. Be prepared to provide as much information, especially in soft copy, for the negotiation process. The more you can demonstrate certain work is already done, the more you can negotiate the price down.

Michael Robbins has worked in financial services for 20 years, and he has written over 350 business plans. He can be contacted through http://www.msrplans.com.