In starting a new business, a business plan is a key component because it will outline important information about the business, and help secure capital to get the business running. Hiring a business plan writer may or may not be necessary, depending on a number of factors. Let's take a look at the benefits and drawbacks of hiring a business plan writer to help you decide.
Benefits of Hiring a Business Plan Writer
A business plan writer will be able to take an objective approach. The writer will conduct the necessary research to gather important information, saving you time. The time you save can be spent looking into other aspects of the business, gathering new ideas or continuing to work in your current field to help save money for the new business venture.
Business plan writers know what to add to a business plan to make it stand out to investors. They are also familiar with the language and can follow a format investors will expect. The plan will be written within a predetermined amount of time, so the process can be done much quicker with a writer. Many times, people who write their own plans waste time by writing a small amount, and moving on to another task--meaning some business plans take months for people to write themselves.
Drawbacks of Hiring a Business Plan Writer
A business plan writer may not fully understand your business vision and what you are trying to accomplish. It is important to make sure they convey your thoughts and ideas the correct way.
The writer may use a standard template for all the plans they write, and this may not have your industry specific needs. If the writer doesn't have information about your industry, this could create an issue for investors.
The writer will not be with you at meetings to answer questions from investors about the plan. If investors have questions about what was written, you may not know how to answer the questions. If you hire a writer, make sure to ask for clarification on any statements you don't understand, so you're prepared if an investor asks you the same question.
If you're on a tight budget, it could be hard to hire a writer. Rates will vary depending on the writer you decide to hire and their experience. You will have to spend time "shopping around" to get the best deal, but it's important to remember that cheapest doesn't always mean best.
Generally speaking, if you are starting the business on your own and using the plan for your own purposes, it is a better idea to skip the business plan writer and write the plan yourself. If you require more than $500,000 in startup funds and are looking for investors and venture firms, it is a much better idea to hire the writer.
If you can't decide whether or not to hire a business plan writer, you may want to write a plan yourself, and hire a writer to re-write it for you. This way your ideas are still part of the plan, but important language and terminology is included for investors.