Paying for a Business Plan
Business plans are usually not an inexpensive matter. Therefore, paying for a business plan is often a catch-22. New business owners or those in the planning stages, many times do not have the funds or liquidity to pay for a professional looking plan. First these owners need investors so that they can help front the cost of the plan. However, obtaining investors is virtually impossible without first presenting them with a business plan.
Luckily, there are some options business owners have in paying for a business plan. If the company is ran as a separate entity from the owner, then the owner can personally give the business a loan. That means that the owner would use their own liquidity or credit card to buy the plan out of pocket, and then pay themselves back once the company had the necessary funding.
There are also lower-cost business plan options, like software programs, wherein the owner would write the plan themselves using the purchased software, or through low-cost business plans, usually in the form of a questionnaire driven plan. It should be kept in mind that these two types of plans will not be as thoroughly researched or as expertly written as a custom plan and most often can not be taken to venture capitalists or professional investing firms. However, there is a chance that they will be enough to at least get investors interested and pledge some funds, so that a higher quality business plan could be purchased down the road.
Alternatively, if the entrepreneur has the means, a professionally written business plan will mean a quality presentation and thorough research with sound financials. These plans can be built for all types of lenders, banks, SBA, venture capitalists, or angel investors.
Ultimately, it will be up to the entrepreneur to weigh the options of a higher or lower cost business plan for their particular situation and what their end goal is with the plan. This will, and should dictate how they would like to handle the issue of paying for a business plan. As with business in general, though, nothing is ever free, and that includes business plans.
If you need help writing a business plan and are wondering how much it would cost to create a custom plan for your business, contact MasterPlans at 877.453.2011 and ask to speak with a consultant for a free consultation.
