Business Plans Some Things To Consider

If you are considering starting a company, and as part of this process will be looking for funding, or alternatively, you have a business which is already trading, and is looking to expand, or requires funding for an additional product line, then you will need to develop a business plan. This is a process which is approached with caution by most business owners, as they see that it can time consuming and generally hard work! Is this a process which you complete yourself? Or alternatively, do you hire someone to do it? How do businesses complete this process quickly, and without spending too much money? Finally, will the document which you produce be adequate to secure funding?  
Completing the process in house. If you are looking to secure financing of less than £200,000, we would generally advise that the costs of hiring someone to secure the finance, may be prohibitive, however, if you are to have to learn a whole process, the question remains, how much is your time worth, and finally how much time will it require to complete the process? 
There are a number of different options, including business planning classes which can be arranged with your local council or chamber of commerce. Due to the relatively low cost of these planning days, even if you are to decide afterwards not to write your own business plan, you will have a much better idea of what you are aiming to achieve by completing the process, and also what you should expect.  
First, because you can. If you have previously read some sample business plans and find some of the language and jargon intimidating, you are certainly not alone. If you are able to clearly convey your message and you have some other people who may be able to review your work, including an accountant, before it gets submitted to the lenders or investors, you can do this work yourself. Completing the business planning process will enable you to develop deep analytical thinking skills which are necessary to run your business with an intimate understanding of your own business model, and will hopefully enable you to take your business to another level. Going through the business planning process is considered by many to be an invaluable business experience. 
As part of this process, we will be required to know the business plan inside and out and really understand the process and fundamentals involved. As part of the process of securing funding, there will be tough questions asked. You need to consider elements of your business such as, "What would you do if you lost your main client?", or "What will you do if your website does not generate the proposed levels of revenue as quickly as you project?" 
The Benefits of Outsourcing the Business Plan Process Entrepreneurs are often fighting fires. One of the most important and difficult jobs which a business owner or entrepreneur has to do, is to manage time, and do those things that you are best skilled to do. Many business owners and entrepreneurs decide that hiring someone to complete their business plan on their behalf is cost effective, and if they they have an urgent need for the funding and can't afford the time involved in the learning curve to be able to develop a high-quality plan that will meet the requirement of both potential lenders and investors. 
It is recommended if you are looking to secure in excess of £500,000, you should aim to get some professional help with completing the business plan, even if you do some of it yourself. 
Here are some common reasons why hiring a consultant will be useful: The process will get completed! The time which it takes to generate a professional quality business plan will normally be reduced if it is completed by a professional whom is familiar with the structure and process. Most business owners and entrepreneurs will start the process with good intentions and gusto around getting the business plan completed, but as with all things, this initial activity will soon fade. Planning should be high priority work, but it is hard to get to when customer calls and employee problems require immediate attention. The sooner that the business plan is completed, the sooner the lenders or investors will be able to make their decision as to whether they are happy to provide the required levels of financing. The cost of hiring an external consultant will be relatively low compared to the potential increases in growth of the business, if funding is secured. 
The plan will be completed in a way which financial professionals will identify with and understand, creating a good impression from the outset. Business planning is completed in a more professional manner by an external consultant who is familiar with how the underwriters, or investors will look at the plans and which areas they will and won't question. Once you have completed a number of business plans and secured finance a number of times, then you will be familiar with which areas lenders or investors will want to explore, and which areas to ignore, this experience can be invaluable. 
The consultant's objectivity will allow for non-emotionally-based projections and expectations for the business. An external consultant is more likely to offer an objective opinion throughout the process and will look to question assumptions which you have made, improving your chances of securing the funding. 
No matter what, don't let a business planning consultant talk you into putting any information into your plan that you aren't comfortable with. If it doesn't look right to you, it probably isn't. Ultimately it is your business, and you need to make sure that the plan is proper representation of your business. Make sure it is the plan that you want, one that matches your goals and objectives, and captures the way you look at business and the spirit of your company. 
If you do decide to hire a business planning consultant, here are some of the important questions to ask to make sure you get the greatest value from your investment: 
How many business plans have you written for which are similar to mine? How many of them securing funding? 
How much time of mine will you require during the planning process? 
When will the plan be completed, and how many drafts should I expect to see and have the opportunity to comment on? 
Will you be writing the plan yourself or do you have associates who do the work with you? 
Do you anticipate that there will be an opportunity for a presentation of the business plan either myself or to my other advisors before the final draft is done? 
How do you anticipate working in conjunction with my existing advisors, to ensure that there points and input is taken into consideration? 
Do you do the market research and the financial spreadsheets, or are those things done separately (and charged for separately)? 
Does the price which you comlete the work for include the revisions and also any potential customisation required for different types of funding? E.g. some potential investors will require different information than a bank. 
Does the price include an option for coaching for improving the way in which I discuss my business with financial institutions, or the making of presentations, particularly financial information? 
Will you provide an electronic and hard copy version of the completed business plan? This is particularly where I may need to make further changes to the plan once completed. 
The Optimum Solution: A Blended Approach 
Ideally, the planning process should not be at either end of the spectrum, but squarely in the middle. In my experience, plans that win funding come from a true collaboration between a skilled consultant/facilitator and the entrepreneur's team of employees and advisors. 
A business planning consultant can act as a coach, first assessing the job to be done, and then recommending who is best to do it. The business plan will in optimum circumstances, be a combination of the vision and goals of the entrepreneur, the technical ability of their accountant, taking into consideration the voices of employees and others, and finally the research and writing abilities of the business planning consultant. The consultant should meet with all parties involved, talk about what is needed for the plan, and use all the resources available to get the work done as quickly and cost effectively as possible. Ultimately it will fall under the consultants remit to ensure that they have received all of the required information, and turned the final plan into a well written, and easily accessible plan, which will ideally stand up to scrutiny from either potential investors or lenders. 
For a free business plan template, visit Free Business Plans