A barter service business plan is a unique document because it requires you to identify the way your bartering program works and, in a sense, to justify the business model itself. If you plan to use your business plan to seek a loan from a bank through the Small Business Administration, you will need to show that you can cash flow the loan and make regularly scheduled payments in accordance with the prevailing rates and fees. For a private placement, your partners' investment needs to be displayed in the tables as something that will generate a steady year-over-year return, resulting in a reasonable net profit within five years and accordingly a substantial up-front percentage of the action (most investors will want something in the neighborhood of 50 percent for their equity stake). Beyond that, a barter service business plan needs to explain:
• The service or product you envision offering
• The details behind the barter arrangement
• The legal issues associated with a barter contract
• The costs of company incorporation, insurance, etc.
• The other ongoing (monthly) expenses
There are a number of issues that will have to be modeled into the pro forma for this business plan, and only you can know for sure what elements need to be covered. A consultant partnering with you will inquire about the various contingencies and obligations and if you don't know for sure what costs you will face, at least be prepared to examine some competitive comparables for ideas. The business plan will need to have a competitive landscape section looking at similar business models and an industry analysis that investigates the state of the industry and market for what your service/product will be. This can require some deep research and if you lack the tools, the time, or the expertise, there's no harm in outsourcing the business plan development to the team at MasterPlans. We have a broad base of experience in the market and can help get you a solid barter service business plan in no time. Call a consultant now at 877-453-2011.
