| This article shows how to prepare business plans for | | | | business venture? |
| developers or owners of a small or home business. | | | | * Have they investigated the legal and insurance |
| You also may want to use the information in this article | | | | requirements for their startup? |
| to prepare a plan for your own business startup. | | | | * How do they expect their product (goods, services, |
| Qualifications | | | | or information) to meet the needs of the marketplace? |
| You need to be skilled in using a business planning | | | | * What market research have they conducted |
| program on a computer. You may want to purchase | | | | * What are their competitive advantages, if any? |
| some reference books on business startups and/or | | | | * What financial resources do they have available |
| preparing business plans at or some other online or | | | | * Who are the principal players in the business venture |
| local bookstore. | | | | and what are their skills? |
| Getting clients | | | | * What functions are assigned to these principal |
| Place classified advertisements for your services in | | | | players? |
| your local newspaper or on the local craigslist.org | | | | * What is their marketing plan? |
| website. After the initial contact with prospective | | | | * What is their pricing policy, and is it flexible? |
| clients over the telephone or using e-mail, you normally | | | | * Do they have an itemized list of their estimated |
| would drive over to their home or office for a personal | | | | startup costs? |
| meeting. When meeting with them, you need to do the | | | | * Do they have a realistic projection of their monthly |
| following: | | | | sales for their first two years of operation? |
| * Review the status of their business startup | | | | * Do they have an itemized list of their estimated fixed |
| * Determine if you and the prospective client can work | | | | and variable operating expenses? |
| together | | | | * What fixed operating expenses will they defer until |
| * Agree on the specific services desired, including the | | | | the business has passed the break-even point? |
| types of business plans and other reports | | | | Performing your services |
| * Determine when to perform the services | | | | Here are the preliminary services you might perform: |
| * Agree on an hourly or fixed fee you will receive for | | | | * Prepare a tentative business plan on your computer |
| your services (if the client expects you to develop | | | | * Review your tentative plan and make a list of |
| some of the background information, you should | | | | questions, possible problems, and suggestions |
| increase your fee accordingly) | | | | * Arrange for the next meeting with the client |
| You probably want to formalize this agreement about | | | | Here are the main services you might perform: |
| your services and its limitations in an engagement letter | | | | * Meet with the client and go over the plan you |
| that can be signed by both you and the client. | | | | prepared |
| Getting background information | | | | * Request any additional information needed to finish |
| You need to know some details about the client and | | | | the tentative business plan |
| their business objectives. Here are some questions | | | | * Develop any missing information, if this service is |
| you might ask: | | | | included in the scope of your engagement letter |
| * What are the client's name, address, telephone | | | | * Make any changes to the business plan as |
| number, and names of people to contact about routine | | | | requested by the client |
| matters and about confidential matters? | | | | * Print copies of the revised business plan for the client |
| * What is the purpose of the business plan? | | | | Here are the final services you might perform: |
| (Examples: raise money, guide the business startup, | | | | * Resolve any final questions the client may have |
| determine if the business idea is doable and | | | | * Accompany the client to meetings with the people |
| worthwhile, etc.) | | | | who want the business plan (bankers or investors) |
| * Who will be reading and/or using the business plan? | | | | * Make any final changes to the business plan |
| * What are the goals of the business venture? | | | | * Print copies of the final business plan for the client |
| * What type of business entity will they use for the | | | | and other interested parties. |