Business Plan

Business  plans  are  used  to  raise  equity  capital, raise  debt capital, win grants, annual planning and budgeting, to sharpen operational focus, to prepare for business acquisition or selling, and to collaborate with partners or employees. For each end goal the business plan development process is slightly different and they are written in a different way.

They all include several key elements:
 

• Executive summary
• Description of the product
• Market research
• Management team
• Operation plan
• Marketing and sales strategy
• Financial model

When most people write their first business plan  it  reads  like a report about the company, with the executive summary  introducing  the firm,  about  the  company, with the executive summary  introducing  the  firm. However, the  executive  summary  should  summarize the entire  rest of  the plan. The  executive  summary  should  be  able to stand alone as a high level overview of all the key components of the business. You  may  circulate  the  executive summary independent of the business plan. It is often best to write the body of the business
plan first and then write the executive summary.

Business Plan for Disinvesting

Almost half of all divestitures fails to realize value for their shareholders. Effective business planning  will  enable  the  owner  to  both maximize  profits  and  maximize the value of the company.  If  the  exit  strategy  of  the  owner  is  to  sell  the  business, effective  businessplanning during the life of the business will contribute to successfully selling the business at the best possible price.

The information included in a business plan is also of great  interest to a  prospective buyer who is evaluating the business as a possible acquisition. Some of the major business areas that should be included in a prospective business plan are those that  would  decrease risk,
and increase future results to the business.

The growth potential of a business is usually a huge factor  in a buyer’s  decision to acquire that business. Potential can be difficult to prove, but a  well-documented  business plan can give  a  buyer  a  comfortable  level  of understanding about the potential opportunities and
challenges for the business in the future.

Business Plans for Raising Capital

Most  business  plans  are  written  to  raise money so let us describe how   a business plan written to raise capital is read. Investors receive dozens of business plans each week. They simply  do  not have time to do a detailed  review of each one. Typically an investor will skim the Executive Summary  of your business plan (sometimes just the first paragraph and bios of the founders) review the financials and if interested, will want to meet you. If all goes well, the investor may dig into the guts of the business plan.

In light of how a plan is read, you have one paragraph to catch the investors’ interest. If  the investor  is  interested, you  have  the  rest  of the plan  to  sell  the  idea. You must clearly describe what your business does without jargon. You also must explain why  your company is the best investment and why your team is the best team.

Cost and Timeline

An investor-ready business plan written by an  experienced  fund  raiser  will  cost  between $4,000 to $20,000+ with average being $6,000 to $10,000. A good plan will take about 100 hours  of  active work and typically takes 4 to 6 weeks to  complete  from start to finish. The price can range  significantly  based  on amount of market research required, complexity of the  financials, novelty  of the business  model, how much material you have already written or  compiled, and  many others. A  feasibility  study  includes  exhaustive  market  research, and because market research is a significant part of writing a business plan, commissioning both together results in a significant discount versus buying them separately.

We  have  written  dozens  of business plans and have a very good idea what investors are looking for. And if we don’t, we can call them and ask without revealing who you are or your strategy. We talk to investors nearly every day.

Contact Solver Corporate to help your company confidentially explore Business Plan Development  Solutions.