Requesting Feedback for Business Plan Writing Service.

[Sean808]

Hello!
New member here but have been reading and love the energy and interaction on this forum so I thought I jump in and ask a question.

My brother and I (MBA and a degree in finance) are considering offering business plan writing services catering to start-ups. (this is not a solicitation we are seeking input)

Our own personal plan seeks to target millennials with a limited budget and high ambition. Through our market research we have discovered that creating the financials are the most challenging aspect for start-ups as well as forming a clear value proposition, cost structure and revenue streams.

Of course I agree that writing your own business plan would be ideal and feel that everyone should write their own plan in some manner, even if it is just one page. With that in mind I also realize that some do not have the skill sets or time to create one and need something a bit more professional for funding.

There are a wide range of individuals online offering business plan writing services on and offline from $20 to $50,000. With software and online fill in the blank forms galore.

With that in mind if I may ask as entrepreneurs what would you find valuable in a business plan writing service? What needs would compel you to purchase one and at what price point?

Our goal is to create an effective means via business plan writing to truly assisting individuals interested in business.

Any input or suggestions you can provide will be greatly appreciated.
Thank You!
Sean

[vangogh]

Welcome to the forum Sean. Good question. I'm not sure I have a great answer, but I'll try.

I'm not sure how well a business offering only business plan help will do. From what I've observed, mainly through this forum, is that lots of people starting out don't value business plans all that much, which I think would make them a hard sell. However, most people just getting started have a lot of questions about how to get started. I do see a lot of people come through here with a vague idea of how they'll start a run a business, but they're often lacking a lot of the details that will help them get there.

What if you offered services to help people get started, not specifically business plan writing, but that could be part of the services. You'd be more of a consultant helping people fine tune their ideas and you could do that through writing a business plan with them or better guiding people through writing the plan themselves. That probably allows you to charge more per client/customer and it allows you to more closely work with them. You'd likely be able to form longer lasting relationships too and have people come back to you when they're ready to grow their business.

Just a thought.

[Sean808]

Thank you for the warm welcome Vangogh!
That is great feedback! We both really appreciate it!

We have looked into at what you described such as consulting work prior to this new concept and found it very competitive. Prior to this business plan writing concept I founded, owned and operated a coffee shop for some 9 years and with this experience attempted to start a coffee shop consulting venture. We created packages ranging from start-up to existing marketing to expansion and offered everything from logo development to website development, social media marketing and of course coffee shop business plans. However within the year we soon discovered the niche market was too small. (at most 1000 searches a month (usually less) for coffee shop related topics) and with 2% conversion the traffic was not there and the budgets were too small for most start-ups to budget, so we couldn't do the high margin low volume.

At that point we attempted to compete in the larger consulting marketplace, however we soon realized that even with degrees and business experience did not have the skill sets to compete effectively. Hence we narrowed it down to what we knew best which were the business plans.

As you mentioned most startups only have a general concept and have no idea how they will get there. They have the concept but no way to implement it effectively nor a means to validate unless they use the lean startup validation board or other tools. Our assumption was that with a business plan we could help them narrow down the idea and get it on paper to share with others. Almost like a live whiteboard, however we provide the foundation for the idea to build upon.

With that in mind do you feel a business plan venture could work if we focus on the fleshing out of the concept and then delivering the final plan? Just brainstorming but perhaps a online chat to help them answer the business plan questionnaire in turn helping them flesh out their issues?

Thank You again
Sean

[Harold Mansfield]

To get straight to it, the only way I'd consider paying someone to write a business plan for me is if I was shopping for funding. Period. And I would look for someone with experience in writing plans the way investors want to see them.

So with that in mind, I really don't see self funded or DIY start ups as your market or being very lucrative. I do think that helping people to create entire presentations, including the plan, maybe some legal like Trademark, Patent and Copyright help, can be a worthwhile market to try. I honestly don't think there's a market in just doing business plans alone.

People on tight budgets aren't going to pay you to do it, and people with budgets and need a plan that they can present to investors also need more help and services.

Look, every business "expert" and book says you need a business plan, and not many people will disagree that it's preferable to have one. But, it's kind of like hiring a font specialist. Yes fonts are important, but most people will choose their own at the start up stage. When they get to the point where they're hiring a font specialist, budget is not the problem.

[Sean808]

Thank You for the reply and feedback Harold! This helps us greatly.

If we may ask, based upon your premise of having a business plan solely for funding do you feel the concept could work if we created a "funding package" where it includes a business plan as well as a powerpoint investor presentation (pitch deck), start-up and financing guide and investor pitch guide, along with specific legal docs for their venture. Such as a terms and conditions doc for an online business or a liability doc for a gym etc.

We do agree that start-ups tend to either not have a business plan or try to create one themselves to save money, however we also do not have the experience to compete directly with the large business plan firms. We attempted a few niche markets, coffee shop, vending machine however we could not get the traffic we needed to make it work nor the type of clients we needed to make the margins.

Thank you again,
Sean

[Harold Mansfield]

Thank You for the reply and feedback Harold! This helps us greatly.

If we may ask, based upon your premise of having a business plan solely for funding do you feel the concept could work if we created a "funding package" where it includes a business plan as well as a powerpoint investor presentation (pitch deck), start-up and financing guide and investor pitch guide, along with specific legal docs for their venture. Such as a terms and conditions doc for an online business or a liability doc for a gym etc.


Yeah, now you're thinking. It's a very targeted market. You'd be looking for people with some money, who want to go to the next level, but not as large as the powerhouses who have entire legal teams to do those things for them.

I'd be willing to bet there's a market for people who are looking to market a new product, expand a business, franchise, and all kinds of things that businesses do that aren't as sexy as the cool new tech start ups that get all of the press.

[Fulcrum]

As someone who would have fit your target demographic when I started (, I would not have called or contacted you. It would not have been due to not wanting or needing your services, rather it would have been a waste of my time and what limited cash I had available. I went 8 weeks before I had any cash coming in, I didn't realize any profit for the first 6 months, and the government decided to reevaluate my taxes from a few years earlier and hit me with a $3K penalty at around the 12 week mark. I survived by using my credit line for rent/food/taxes and using my credit card to bring in supplies.

I think Harold's on to something. Those of us in the non tech, non cutting edge (not referring to tooling here but I need to remember the pun) fields get left behind when it comes to 3rd party funding - especially if it's a service type business. Rarely is what we do glamorous or high profile and low skilled moonlighters give our trades a bad name, yet when we do our jobs properly we're virtually invisible and appear as interchangeable to the non-discerning eye.

You could also expand outside of the coffee shop niche and venture into other food service related areas. What differentiates a coffee shop (Starbucks) from a fast food joint (McDonalds) from a more formal restaurant (The Keg)? In my opinion, not a whole lot from a basic standpoint. Good product, good service, and fair prices, all of which need a solid marketing plan and inventory control.

[Sean808]

Thank You Harold and Falcrum. This helps us immensely and we really appreciate it. **I wrote a reply, however I did not see it posted so I am replying again in hopes it takes this time. If it double posts I apologize**

So to clarify based upon your experiences (and those in your circles) the key markets are more smaller established ventures (grossing under 1 million/year) such as landscaping, cafes, pool cleaning, small restaurants etc. Looking for expansion via product development, brick and mortar expansion or service expansion and diversification. Does this sound about right? We just wish to better understand the market that you experienced as underserved in regards to the business plan and funding assisted services.

Also if we may ask once established what price point would you spend on a "funding package" consisting of a investor ready business plan, powerpoint pitch deck and investor guide?

Thank you again for the input, we both sincerely are grateful for the insight.
Sean

[Harold Mansfield]

I'm not saying to target a specific industry, although you could specialize in one in which you have the most knowledge and experience. That would also limit a target market that is already small. For instance, I have about 20+ years experience in Restaurants, Bars and Nightclubs. I know liquor, gaming, and music more than I do food. So if I were to do it I'd probably target gaming bars, taverns and club start ups.

What I'm saying is that the market in between DIY low budget start up, and millions in seed funding may be the one to target. The mid range businesses and start ups.

I don't think you should cancel people out by industry. A salon owner could very well want to expand to multiple locations and needs a well written plan to present to his bank, or investors.
A landscaper may have dreams of expanding to corporate accounts and needs investment to buy more equipment.
And of course there's the start up tech company that doesn't need $50 million, they just need $100k.

Anyone in that window could be your target audience.

People in your industry tend to either want to scrape all of cheap garbage off of the ground and compete on price, or shoot too high and want to start dealing with billion dollar companies right away. I'm saying there's more businesses that are in between...existing and start ups that need services too.

You definitely need to know your target audience well in order to start a service targeting them. You can't just pick a group out of the blue and open for business.

[Sean808]

Thank You for the follow up Harold,
That makes sense and I can see how the current business plan writing firms are either offering low cost $20 plans or $2,000+ plans and nothing really in between.

So our niche could be those seeking funding under 100K. So something along the lines of:

Business expansion and growth business plans for funding under 100K. Business Plans with 16 financial metrics, VC and lender ready and Powerpoint pitch deck, all specifically written and developed for you to help you get the funding you need to start or grow your venture. That sound about right?

How would you feel it would be best to locate and offer to this market?


Also may we get your thoughts on getting more specific such as offering "sub plans" such as feasibility reports and more focused forecasting/modeling for things like user acquisition channels, or proxy markets. For example, utilizing rough data from an early stage startup and forecasting what some various growth strategies might look like. I am just brainstorming things other than a traditional business plan that could be useful for entrepreneurs in decision-making and impressive to investors. Any thoughts on something like this? Or would it be too "corporate" for the average buyer?

Thank You again Harold!
Sean

[Harold Mansfield]

Thank You for the follow up Harold,
That makes sense and I can see how the current business plan writing firms are either offering low cost $20 plans or $2,000+ plans and nothing really in between.

So our niche could be those seeking funding under 100K. So something along the lines of:

Business expansion and growth business plans for funding under 100K. Business Plans with 16 financial metrics, VC and lender ready and Powerpoint pitch deck, all specifically written and developed for you to help you get the funding you need to start or grow your venture. That sound about right?

How would you feel it would be best to locate and offer to this market?


Also may we get your thoughts on getting more specific such as offering "sub plans" such as feasibility reports and more focused forecasting/modeling for things like user acquisition channels, or proxy markets. For example, utilizing rough data from an early stage startup and forecasting what some various growth strategies might look like. I am just brainstorming things other than a traditional business plan that could be useful for entrepreneurs in decision-making and impressive to investors. Any thoughts on something like this? Or would it be too "corporate" for the average buyer?

Thank You again Harold!
Sean

Not necessarily just businesses seeking under 100K. Don't cancel anyone out. Honestly how much they're seeking isn't the issue or your concern. The fact that they need a well written strategy is the service you're providing and you should be able to offer that service to anyone.


all specifically written and developed...to help you get the funding you need to start or grow your venture.

Is more of the target. Just remember people need plans for all kinds of reasons, not just funding. Some times (as you said) they need it for direction and so that all parties are on the same page and maybe even incorporates partnership agreements.

They may just need something to file, or submit. Yes you want to target, but let them tell you why they need it and cater your services according to their needs.

Once you fine tune what you're offering and for who, then you can start to price services. Can't just ask "What would you pay?" without the deets of who you are, what you're offering and why I need it.

[Sean808]

Thank You again Harold,
So basically just offer the funding packages to start and see what type of clients we receive and based upon that feedback begin to cater the marketing.

Thank You again Harold, this type of feedback is vital to us as a start-up ourselves.

Sean

[stevenfies]

Hi Sean, I would tend to agree it's a pretty competitive area. There are a lot of options for someone who wants to start a business.

For example, there is a ton of really high-quality free information available online (blogs, forums, etc.), inexpensive books that go into even more depth and detail, templates and software programs that are very cheap, and an abundance of other resources to choose from.

Another concern is the targeting. If you're going after millennials with a limited budget, many of them also just won't have the funds to pay you a high consulting fee. And if you're not commanding a decent hourly or project rate, what's the point?

I had (and still have, I suppose) dreams of helping others start their first business, and even went as far as to author my own ebook on validating one's initial concept and putting together a basic plan, after I made the transition to running my own biz FT. But beyond collecting the two bucks per sale on Amazon when someone buys the book, I honestly feel the market is pretty limited.

Unless, perhaps, you've got a high-traffic blog with a well carved out marketing/sales funnel offering a higher price tag start-your-first-business type course, like some popular gurus offer. And those guys tend to have a very specific system or process they're selling, which is a bit different than just helping someone write a plan.

Nonetheless, if you could get in front of enough people and position yourself as an authority, provide testimonials, proof of success, etc., anything is possible. I'm just wondering if there might not be more lucrative and interesting ventures for you to look at instead.

[Mont Ellis Consulting]

Hi Sean,

Are you thinking of offering something like Liveplan.com?

I am the co-founder of an early stage tech startup, currently in an incubator... here are a few thoughts, briefly:

* Startups are told to go 'lean' and not write 40+ page business plans. They use The Lean Canvas methodology
* When a startup gets to the point of needing a detailed business plan (for funding), they typically have mentors who can help them
* They don't have money
* They try to do it on their own, or they use online tools like liveplan.com
* They are in incubators and accelerators, where help is available

Why don't you start talking to some startups and getting feedback? I'm sure there is a niche for you there somewhere...

[Sean808]

Hi Stevenfies,
Thank you for the great feedback and very good points. I have been trying for many years to get something/anything going online and even at being a "guru" myself. Previously I owned a brick and mortar coffee shop for 8 years and tried to be a "guru" in that field after selling it, however found that the coffee shop market was too small (Starbucks wiped out a lot of them) and there were actual live coffee/barista schools out there that i could not compete with for that limited market. Even though coffee shops might seem like a large market there are only about 850 searches per month for anything that has to do with starting a coffee shop/espresso bar. The pool was just to small to make it work.

I am trying to put together a business plan that is unique but I am not sure if that is enough of a unique differentiator, also as you mentioned with so many free resources it is a difficult market. If I may ask do you have any suggestions on how to find that niche or venture? I do have a passion for automobile design and modern architecture (more of a visual learner and person) but do not have a degree in either.

Thank you again,
Sean

[Sean808]

Hi Tanja Mimica,
Thank you for your reply and thoughts. It is nice to meet someone on here that deals with the start-ups directly.

I was considering something like liveplan.com but more template based than online plan building. I do not currently have the resources to create something as complex as Liveplan.com.

I think your thoughts are spot on. I have been talking to start-ups and based on the feedback the issues that I have heard are 1) A way to monetize their concept and 2) Funding. Which I would think the business plan would cover but for some reason they do not think that far ahead. They just need funding and think a pitch will be good enough which I hear for many Angel investors a pitch deck and some financials are all that is needed now. Also I 100% agree that they just do not have the money and look for free tools or learn themselves.

If I may ask as a co-founder of an incubator are there any other urgent "needs' that the start-ups are seeking?

Thank you again,
Sean

[Mont Ellis Consulting]

If I may ask as a co-founder of an incubator are there any other urgent "needs' that the start-ups are seeking?



Sorry Sean, just to clarify - I am not the co-founder of an incubator, I am the co-founder of a startup currently IN an incubator.

So I'm probably not the right person to speak on behalf of other startups, but what I am seeing in the space we're in, is a heavy focus on development, with very little attention given to idea and market validation. Most of the advice coming from the mentors ends up being "speak to your customers", and most startups don't seem to listen to it. It's amazing how many mentors are just 'sitting around' and no one is taking advantage of them being there.

Later stage startups, the smart ones who HAVE actually listened to this advice and validated their idea, are constantly improving their product based on feedback from customers. Their focus seems to be on proving to VC's that they have a scalable product, so they are collecting emails. That's kind of the gold standard - how many users you can get to sign up.

Once they have this, along with their pitch and a deck, they are networking and trying to get in front of VC's, but my impression is that even at that point the details of the financial plan are pretty vague.

I may be wrong, we've been in this space for a couple of months only.

Good luck and keep us updated, would love to have a look at what you come up with!

Tanja

[Sean808]

Thank You for the reply Tanja Mimica as well as your insight. It helps me a great deal try to utilize the skills sets I have to provide a service that people will find true value in.

Thanks also for the clarification. I must have misread it, being a start-up yourself your input is invaluable to me and I appreciate your input greatly.

Following up from your perspective do you feel there is a need for services such as market evaluation and growth strategy reports? After talking to a few start-ups I am finding as you mentioned that many find demonstrating/proving the market difficult as well as a way to scale it and identifying barriers to entry. My thought process is to offer specialized reports such as feasibility reports, acquisition channel reports and forecast/modeling reports. Basically very specialized reports to show investors and VCs that the numbers are there.

That is the concept for now, however I am not sure 1) How to market it and explain the value proposition to these start-ups, I am sure they are Not googling "market evaluation and growth strategy reports for start-ups" and 2) How to price such a service as these start-ups tend to be cash strapped.

Do you have any thoughts on this if I may ask?

Thank You again Tanja!
Sean

[Fulcrum]

I'm enjoying this thread.

It seems to me that you may want to focus your efforts on established micro-companies (let's say less than 5 people though this is not a limiting factor) looking to expand into new territories.

Using myself as an example, if I were to shift from a service focus to a manufacturing focus your services in providing market size, helping me remain focused, risk analysis, ensuring that I have the capabilities to produce at the volumes provided and deliver on time, etc.

[Sean808]

I'm enjoying this thread.

It seems to me that you may want to focus your efforts on established micro-companies (let's say less than 5 people though this is not a limiting factor) looking to expand into new territories.

Using myself as an example, if I were to shift from a service focus to a manufacturing focus your services in providing market size, helping me remain focused, risk analysis, ensuring that I have the capabilities to produce at the volumes provided and deliver on time, etc.

Hi again Brad Miedema, I am glad you are enjoying this thread, it is proving very helpful for me as well. I specifically enjoy the detail that is being provided.

Yes what you described is similar to what I was thinking. Providing specialized reports such as market evaluation, growth strategy, keyword research reports and forecast reports for start-ups and small ventures. Of course it would all be hypothetical forecasts but as close as you can get given the research out there.

I think the major hurdle for me would be that many of these small companies and start-ups do not know to ask these questions of themselves let alone order a report on it. It is not as if they are searching for a feasibility analysis for their new "smart watch concept" or a growth strategy report on their small cafe. I see these niche plans/reports as a subset of the business plan market, however I feel since the majority of those searching for a business plan are doing so for funding (the lender told them they needed one) I am not sure how to target those that will find such market evaluation and growth strategy reports valuable.

Thanks again for the reply Brad!
Sean

[mistysage]

Hi! Thought I would add onto the point about creating business templates, like privacy policies and terms and conditions. They are now required on every website in the United States per US FDA website compliance rules. They are something that every website needs, but every self-owned website owner dreads doing, including me! I put mine on at the last, when it should have the first thing on it! It would be a great add-on service or something like that...

[Sean808]

Hi! Thought I would add onto the point about creating business templates, like privacy policies and terms and conditions. They are now required on every website in the United States per US FDA website compliance rules. They are something that every website needs, but every self-owned website owner dreads doing, including me! I put mine on at the last, when it should have the first thing on it! It would be a great add-on service or something like that...

Thank You for the suggestion Mistysage! We were thinking of having an "executive package" where it included things like a terms and conditions and privacy policy along with some specialized plans.

[Anoura929]

I would'nt throw away what you two have done thus far even if it wasn't lucrative and in a niche market because who would hire someone that doesn't claim experience?
I don't know how to quote yet but Harold mentioned targeting mid-level companies... you could charge 2k and get it. You could also reach out to those wanting to start their own legal firms and dental offices. Restaurants are a great idea too, he mentioned that.

[Sean808]

Thank you for the feedback Anorura that helps us greatly and gives us some optimism.

We have been trying hard to get something off the ground and like most startups are getting very discouraged. We know we have the skill sets to do it, however we at times feel its like a mom and pop store going up against a giant like Walmart but for the business plan market. There are huge companies with software that are business plan machines and undercut our margins so that our model is no longer viable. For example one of our previous competitors charged just $11.99 to start and had a whole website that created the plan for you.

We want to target the mid level companies, however we do not know how to 1) Locate which ones are in need of a plan, most mid level companies are not actively publically seeking business plan services. 2) How to approach them in a way that is viable for them. From my experience most mid-level companies, legal firms, dentists and restaurant owners want face to face meetings which can be done, however we then run into issue #1 of how to locate them. I hope that makes sense.

Thank You again!
Sean

[Sean808]

On my team I have a person doing business plans, and out of all the services I offer those are the least sought out for. I don't know if it's because small businesses don't have enough money to pay for them, or think they have it all in their heads and don't want to pay for that.
It's something that no one knows why people don't opt in for, although they could really profit from a well built business plan.
Hope you have better luck though.

Thank You for the insight Movadobgd!
If I may ask what approaches have you done to promote your business plan services? Also when you do get business plan clients what are they usually requesting of you? I am trying to narrow down WHY the customers seek business plans so I can target them.

For example do they come to you and say "I need a business plan because my bank told me I needed one" or "I need a business plan to improve my business" or "I need a business plan to calculate my costs". I am just trying to figure out the motivation of those seeking business plans.

[Sean808]

Thanks again for the input and insight Movadobgd.

That is very true about the keywords. We looked into it and there is a lot of competition for it, which is a bit discouraging. Thank you for the suggestions.

We were considering offering other "add on" services such as privacy policies, terms and conditions as mentioned above by Mistysage, as well as specialised market research and demographic research services. However they all also fall into the general "business plan" or document creation umbrella. Which I am not sure is a lucrative one.

From a financial perspective we want to approach established businesses as they have less budget concerns than startups. However are finding that targeting them is even more difficult as they are not as active in searching for such services.

If I may ask what is your average cost for a business plan? I have seen it vary from $11.99 for a template all the way to $11,000. I am sure price plays a role in this demographics decision.

[chris maxwell]

I have worked with entrepreneurs, investors, and business owners and a comprehensive Business Plan carefully drawn out will make the difference in deciding if an investor will invest in the project or not. Consider this, Business Valuation Appraisers have to fully demonstrate in a comprehensive report of a business they are appraising a conclusion of value for the business and then explain how they derived to that conclusion. Investors want to know the cost of capital, the projections on the capitalization rate, how you derived at that cap rate,...so on and so on. It is very complex but the deep pockets who will be investing will want to analyze and assess the investment and will judge you not only on your business savy but your knowledge. We do valuations for all types of companies as well as business plans, feasibility studies, due diligence reports and they are all tied. I think it is absolutely essential.