Business Plan Rates

[Yeshanu]

Hi, all!

I'm currently on the Board of Directors for a community orchestra, and we've recently received a grant. Part of that grant is to have a business plan written. While I expect the contract will be tendered, I'd like to get an idea of what folks are charging for the creation of a business plan from scratch, either per hour (with an estimation of number of hours, expressed as a range) or on a per project basis.

More info: we're fairly small at this point, though we do hope to grow. The city in which we're based is just over 100,000 people, and has a city council that's very supportive of the arts.

Also, would a talented writer (i.e. me) with very little business experience be able to create a decent plan with the help of software? If so, what software would you recommend?

Thanks in advance for your replies. If you'd be willing to reply to the rate question, but don't want to post your rates on an open board, I'd welcome a PM.

[Good Word]

Hi Ruth, I'm sure someone will come along, but there don't seem to be a whole lot of writers that specialize in business plans here. I googled business plan writers and got a lot of stuff.

[jenngreenleaf]

I got this from the Writer's Market "How Much Should I Charge" section of their website:

Business plan: $1/word; $200/manuscript page or up to $1,500/project. High-end rates are charged if extensive research is involved. Sometimes research is charged separately per hour or per day.

Business plans are a very difficult thing to write -- as difficult to write as book proposals. If they're not *just* right, they'll lead people in the wrong direction and not achieve their intended goal. I think I have one (maybe two) examples of what a good business plan contains knocking around on a CD-R around here if you'd like me to email it as an attachment. Just drop me a line if you're interested and I'll take a look.

[Yeshanu]

Thanks to both of you. Jenn, I saw that site too, and was a bit suspicious of the top rate listed ($1500). Robert Bly, in a book that's ten years old, gives rates between $1000 and $10,000, with the lower rate being for editing an existing business plan. Plus, our grant is for a whole lot more than $1500, which leads me to think that the project rate on this page is either a typo (which is likely, given the rate of $200/ms page) or just plain wrong...


I'll google, as Lisa suggested. Jenn, I'll PM you with an email addy. I would appreciate seeing an example of a complete business plan.

[jenngreenleaf]

In the case of writer's market, that's for the actual time it takes to write the plan. The time to research is almost always charged separately and that rate is as follows:

Research for individuals: $5-30/hour, depending on experience, geographic area and nature of work.

The last business plan I wrote was for someone in the entertainment business (a book that was turned into a theatrical production) and the total project came to $3500. That was broken down to $1.00/word and $20.00/hour.

I got your PM and will look around for that CD-R this afternoon. :)

[Yeshanu]

Research for individuals: $5-30/hour


Five bucks an hour???

I think I'll go back to working under the golden arches...

[jenngreenleaf]

Five bucks an hour???

I think I'll go back to working under the golden arches...

:ROFL: Tell me about it! That's EXACTLY how I feel when I see posts for writing jobs that ask for $.10 per word or lower . . . give me a break. The problem is, though, that there ARE people who will write and research for beans like this . . . otherwise, the rate wouldn't exist. Pretty sad.

[LloydBrown]

Also, would a talented writer (i.e. me) with very little business experience be able to create a decent plan with the help of software? If so, what software would you recommend?

Business Plan Pro 2005 and Business Plan Writer Deluxe are two of the most popular business plan applications. Both offer a basic version for $99 and an upgrade for a bit more.

The SBA "Elements of a Business Plan is really just a toc, not a complete guide to writing a plan. SCORE has a pretty good business plan template on its website. My preferred model, which includes detailed planning suggestions, is by Stephen R. Lawrence at the University of Colorado. One of the tools I used to decide which elements to include in my own plan is a side-by-side comparison of various plans; I'll send it to you if you e-mail me.

As far as doing it yourself, I honestly don't know. I have good training, reinforced by actual experience in business ownership, but it's more difficult working outside the field of retail because I don't know which questions to ask a client. Once I get a handle on how the business works, though, it usually falls into place.

Is the business plan intended as an operational guideline, or intended to solicit commercial financing? I think you can write a plan that's meant as an internal guide. Obtaining financing is trickier and has some non-obvious hurdles.

[Yeshanu]

Thanks, Lloyd. I was hoping you'd weigh in here. (Maybe I should have just emailed you... :) )

Anyhow, I think in our case, the plan is going to be needed not only as an operational guideline, but in order to solicit funding. Not specifically commercial funding (I'm assuming you mean things like bank loans here), but more likely corporate and other donations. That being the case, then it's probably over my head.

I'll take a look at the stuff you suggested, though. I wouldn't mind learning more about writing business plans, and other business writing. Thanks.

[jenngreenleaf]

Still looking for that CD-R . . . haven't forgotten . . . just can't seem to remember where it is! (It was from 2004 and I've moved twice since then. LOL So, who really knows . . . eep!)

[Yeshanu]

's okay, Jenn. I'm not going anywhere. :)

[jenngreenleaf]

's okay, Jenn. I'm not going anywhere. :)

LOL Thanks! I tend to feel guilty about the silliest things. :o

[wanderson]

Hi, Hi,

I am a grant writer consultant. I have also written several business plans. I believe a flat rate is the best way to go. As a consultant I charge $1,500 per plan. If extensive research is needed and the client has not provided the information, there is a $40 hourly research fee. Yeah, the cost can go much higher. It depends on what you are willing to pay. You have to remember, a business plan is a technical and very detailed document, requiring specific information that only you can provide.
I hope this was helpful. Good luck.
Wendy

[pconsidine]

My preferred model, which includes detailed planning suggestions, is by Stephen R. Lawrence at the University of Colorado. You wouldn't happen to have a link to this, would you? I find myself suddenly in need of such a thing.

Thanks.