How do I find companies that need business plans and a start-up capital?
March 17th, 2009
veronika asked:
I would like to start my own business writing business plans, creating financial models and asssisting small and medium size companies in rasing a start-up capital. Any ideas how to find clients? Would really appreciate your advice..
I would like to start my own business writing business plans, creating financial models and asssisting small and medium size companies in rasing a start-up capital. Any ideas how to find clients? Would really appreciate your advice..
The business plan writing service is an exciting business that demands a combination of writing skill, business expertise, and creativity. Your task is to help new or existing businesses develop an overall blueprint that includes medium-term and long-term strategies, market positioning, financial requirements and start-up costs. This business is ideal for areas where many new businesses are starting and existing businesses are expanding.
However, not all new entrepreneurs prepare a business plan: many find the process too tedious or they lack the knowledge to make one. Your most probable clients will be those entrepreneurs who are seeking loans, attracting investors, looking for franchises, or businesses at the point of being acquired.
To start in this business, you need a strong business background, good knowledge of financial statements, good business writing style and the ability to see a business both from the perspective of the owner and the financial source. It would help if you have already put together business plans before so you know what questions to ask and what information to find. Study the various business plan software available in the market, but learn to adopt it to your client’s particular situation.
Start-up costs for this business can be low particularly if you already have equipment like computer, fax, and Internet access. Your biggest cost may be professional liability insurance to help protect you when your recommendations for the future direction of the business turn south. Earnings, on the other hand, can range from $2,500 to $5,000 per project depending on the time it takes to write the plan (usually three to four weeks) and the amount of research you need to do. Your price can increase to as much as $25,000 per project, particularly for big corporations seeking new funding. You can also supplement your income through business editing and revising existing plans because of the change in your client’s circumstance.
Like any new business, finding the first client is the hardest. Networking and referrals are the most effective ways of finding clients. Join chambers of commerce and economic development groups. Make contacts with bankers, venture capitalists, angel investors and organizations that offer business mentor programs or entrepreneurship centers. Hone your skills by preparing business plans free of charge at the beginning, in order to have a portfolio of plans you can show to prospective clients.
Recommended Books:
How to Write a Business Plan (5th Ed) by Mike P. McKeever
The Prentice Hall Encyclopedia of Model Business Plans by Wilbur Cross, Alice M. Richey
The Complete Book of Business Plans : Simple Steps to Writing a Powerful Business Plan (Small Business Sourcebooks) by Joseph A. Covello, Brian J. Hazelgren