Business Plan Writing

[kjv1611]

I have been approached about writing up a business plan for a person who is wanting to star their own business. From what he has told me so far, he is wanting to be able to get Federal Grant money. I'm doing research on the project right now.

However, he said he'd pay me whatever would be a fair price for the service, and he said he'd leave that up to me (his statement along these lines, was as he believes me to be an honest and trustworthy person).

So, my question is:

Does anyone have any suggestions as to valid/fair rates for writing business plans? I did write some in college, but never thought I'd actually put something like that to use, unless I were to do that for myself.

I do not yet have an idea as to what any "going rates" are, or how best to determine a rate.

Does anyone have any suggestions along these lines?

Thanks in advance for any advice/info/references.

--

"If to err is human, then I must be some kind of human!" -Me

 

[AlexCuse]

KJV - I would do some research on consulting rates people are getting in your area.

Is this person a friend, or just an acquaintance?

Ignorance of certain subjects is a great part of wisdom

 

[kjv1611]

My prospective customer used to be in my area (South Carolina), but moved to California for the business opportunity. He already has prospective clients there, and may have already carried out some business with at least one of them.
So, for this, I am not sure whether a regional approach is quite the same.

Secondly, this person is not really a "friend", I would say. But that probably depends upon each person's connotation of the word. I would say I would consider him an acquaintance. He is related to a friend, and I have met him and talked with in on a few occasions about various topics.

Also, my prospective customer told me about one person or company who he had originally paid to do this, and they "up and ran" with his money without giving anything in return. That was why he ended up contacting me - his relative who is a friend of mine suggested he contact me.

One more note: I can't say that this friend is exactly a "best friend" or a really close friend, but I would still call him friend - and he would be a better friend to have around than many I've known in the past for sure.

--

"If to err is human, then I must be some kind of human!" -Me

 

[chiph]

I'm wondering what kind of entrepreneur would outsource something as vital as writing the business plan for their new business.

Chip H.


____________________________________________________________________
If you want to get the best response to a question, please read FAQ222-2244 first

 

[rjoubert]

I'm wondering what kind of entrepreneur would outsource something as vital as writing the business plan for their new business.

Probably one that doesn't feel too confident about their ability to write a decent business plan.

 

[chiph]

Download the template provided by SCORE, and modify as needed. Easy.

http://www.score.org/template_gallery.html

Chip H.


____________________________________________________________________
If you want to get the best response to a question, please read FAQ222-2244 first

 

[monksnake]

I'd be cautious about making sure he pays you once you quote him a price you both agree upon.

I say this because of the idea that he needs someone else to write up his business plan, I wouldn't really trust that he knows what he's doing in terms of running a business.

Sad but true, most small businesses fail. I could see him wanting to pay you later for your work after he's gotten all his starting costs out of the way. His excuse could be, oh I know you through our mutual friend, you can keep tabs on me. His business folds without having the equity to pay you for the work you did in writing up his business plan.


Or I could be totally off here.

<.

 

[kjv1611]

monksnake,

No, that's a good suggestion. The customer has already offered to pay some now, but I just told him we'd discuss that once I've gotten to having a finished product, or at least pretty close to finished. I'm sure I won't be asking much for it, and I frankly can't see much being involved once I actually sit down and write it.

I'm just doing some research on the side at the moment, and will hopefully get the thing written up fairly soon.

One thing I'm still trying to find out about is how to determine rates. So far, I've seen everything from $50 per double-spaced page to $500 as a starting price. I LIKE the $500 starting price idea, but I'm not terribly sure my effort will be worth it for one like this. I guess I'll have to keep digging to find what I really think will be fair for both of us.

--

"If to err is human, then I must be some kind of human!" -Me