Did you know that entrepreneurs are willing to pay writers $3,000 – $6,000 (and even more!) to write a business plan for them?
There are many reasons why. But one of the most important is that most banks and investors need to see a well-written business plan before they even consider investing in a business.
My guest for this episode is Jessica Oman, founder of Write Ahead and an expert on writing business plans. In this interview, Jessica explains the opportunity in writing business plans for clients.
She details the basic elements of a business plan:
- What you can charge
- The demand for these services
- How to get clients
- And what type of writer is best suited for this work
The notes that follow are a very basic, unedited summary of the show. There’s a lot more detail in the audio version. You can listen to the show using the audio player below. Or you can subscribe in iTunes or on Stitcher to get this show delivered straight to the Podcasts app on your smart phone, tablet or iPod.
About This Show
The High-Income Business Writing podcast is a production of B2B Biz Launcher. It’s designed for business writers and copywriters who want to propel their writing business to the six-figure level (or the part-time equivalent).
To learn more about the opportunity in writing business plans for clients — I interview Jessica Oman for this episode of The High Income Business Writing podcast.
Jessica is the owner of Write Ahead a business writing firm that specalizes in writing business plans for start-ups and also teaches other business owners to write their own business plans.
In this episode, Jessica explains what a business plan is and what it is used for by business owners.
What is a Business Plan? Who Uses Them? What Are They Used For?
Traditionally a business plan has been used to get a loan from a bank or attract financial investors to start or grow a company.
A business plan is a road map for start-up success. It guides your operations, provides metrics to benchmark your progress, outlines your goals and objectives and defines your ideal customer by putting all the parts and components into one place. The document guides the business owner as the business grows and helps them stay on track when they are trying to make important decisions. It is dynamic, can be referred to and revised as needed.
Basic Elements of a Business Plan
There are five major components of any business plan.
- Customer – The most important element is defining your ideal customer
– Who is buying?
– Who is your perfect customer?
- The Market/Industry –
– How many of your ideal customers exist?
– How much potential is there in the market place?
– Where are they?
– Who else is targeting them?
- People –
– Who is managing your company?
– Can the business owner run it? If not, who will fill in the gaps?
– How much staff do you need?
- Money –
– Where is it coming from?
– How much can you make?
– What does running the business cost?
Staff, tools, rent, systems, fees, etc.
- Format –
– How are you presenting your business plan?
– Depends on your audience
Once each of the five elements are defined, the business plan isn’t always a document. For visual people it could be a collage, a vision board or even a collection of post it notes. For others it will be a more formal document.
While all of this can seem intimidating, it actually is very exciting and motivating, because you’re working on defining your ideal client and the potential of your business.
Length and Cost of Having a Business Plan Written
The length of the plan will vary depending on what it will be used for. If it is an internal guideline then it typically will be less than 20 pages. If it is going to be used to present to a bank or investors 20-30 pages is typical.
No one has the time to read a lengthy business plan. The sections that a bank or investors will focus on are the Executive Summary, Cash Flow, Market Research, and Management Overview. These sections tell them what they need to know to be able to make a decision.
Jessica has a basic template for writing a business plan, but every business plan is different. Every business is a puzzle starting with 5-7 sections and then it is customized for each one.
Starting from scratch a basic business plan starts at $3,000.00. The cost includes all the research and follow-up which includes these items and sometimes more:
- Help figure out strategy
- Background research
- Complexity of business model
- Number of products – each has to be evaluated
- Multiple locations – research is necessary to figure out what the demand would be for each location
- How much funding will be needed?
Business plans can go up to $6,000.00-$7,000.00 depending on the audience requirements and the amount of money needed for a loan.
Write Ahead works with start-ups or any business that is about to undergo a financial transition.
What Are Clients Looking For in Their Business Plan Writer?
Are they looking for a writer or a consultant?
Many of Jessica’s clients are immigrants and need someone to write the plan in a clear, concise, understandable and grammatically correct way. They have the business knowledge and they can provide the content. In this case, this type of client is looking for a writer.
Others that don’t have any financial knowledge or need strategic and consulting
help come to Jessica for help too. In this case, she sometimes teams up with others who have the expertise in those areas. This type of client is looking for a consultant.
Can Writing Business Plans Be One of Many Services a Writer Can Offer?
Ideally to be an expert at writing business plans, you need to be comfortable advising business owners in the different component areas or knowing someone that can help you.
To gain that experience, you can start by writing reviews and offering editing services for existing business plans. This way you can acquire essential business knowledge by reading what others have already written. You’ll start to notice patterns and gain a lot of knowledge about writing them.
Additionally, because writing business plans is so specialized sometimes it is better to simply offer reciprocal services with your connections.
What type of writer is best suited for this?
A writer who is very detail oriented with strong research skills; someone who is really good at digging up data and statistics. A life-long learner who loves to discover new information and read.
The Intangibles That Keep You Going
The most exciting thing about writing a business plan is seeing the grand opening of the business. While the entrepreneur takes the business plan to the bank and they execute the plan, being involved in the foundation is extremely rewarding. Being able to work into the brick and mortar or buy something online is really exciting knowing you contributed to making it possible.
How many plans can you have in the works at one time?
Jessica works with a colleague who handles the financial projections while she handles the writing and strategy sections of the plans. They have found that 12
business plans in the works at once is the maximum number they can handle. Twelve sounds like a lot, but they have been preparing business plans for a long time now and have everything streamlined and have become very efficient.
Training Program for How to Write Business Plans
The training program was inspired by potential clients who couldn’t afford to work with Jessica. Consequently, she started the program as a starting point with them in mind. It helps them work on the concept of their business and to understand their ideal customer. It guides them through the process, so they can create a complete and well-researched business plan to be to the banks or financial investors.
Items mentioned in this Podcast include:
- Jessica’s eBook: How to Write a Business Plan to Launch Your Entrepreneurial Journey
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Till next time,