This article shows how to prepare business plans for developers or owners of a small or home business. You also may want to use the information in this article to prepare a plan for your own business startup.

Qualifications

You need to be skilled in using a business planning program on a computer. You may want to purchase some reference books on business startups and/or preparing business plans at Amazon.com or some other online or local bookstore.

Getting clients

Place classified advertisements for your services in your local newspaper or on the local craigslist.org website. After the initial contact with prospective clients over the telephone or using e-mail, you normally would drive over to their home or office for a personal meeting. When meeting with them, you need to do the following:

* Review the status of their business startup
* Determine if you and the prospective client can work together
* Agree on the specific services desired, including the types of business plans and other reports
* Determine when to perform the services
* Agree on an hourly or fixed fee you will receive for your services (if the client expects you to develop some of the background information, you should increase your fee accordingly)

You probably want to formalize this agreement about your services and its limitations in an engagement letter that can be signed by both you and the client.

Getting background information

You need to know some details about the client and their business objectives. Here are some questions you might ask:

* What are the client’s name, address, telephone number, and names of people to contact about routine matters and about confidential matters?
* What is the purpose of the business plan? (Examples: raise money, guide the business startup, determine if the business idea is doable and worthwhile, etc.)
* Who will be reading and/or using the business plan?
* What are the goals of the business venture?
* What type of business entity will they use for the business venture?
* Have they investigated the legal and insurance requirements for their startup?
* How do they expect their product (goods, services, or information) to meet the needs of the marketplace?
* What market research have they conducted
* What are their competitive advantages, if any?
* What financial resources do they have available
* Who are the principal players in the business venture and what are their skills?
* What functions are assigned to these principal players?
* What is their marketing plan?
* What is their pricing policy, and is it flexible?
* Do they have an itemized list of their estimated startup costs?
* Do they have a realistic projection of their monthly sales for their first two years of operation?
* Do they have an itemized list of their estimated fixed and variable operating expenses?
* What fixed operating expenses will they defer until the business has passed the break-even point?

Performing your services

Here are the preliminary services you might perform:

* Prepare a tentative business plan on your computer
* Review your tentative plan and make a list of questions, possible problems, and suggestions
* Arrange for the next meeting with the client

Here are the main services you might perform:

* Meet with the client and go over the plan you prepared
* Request any additional information needed to finish the tentative business plan
* Develop any missing information, if this service is included in the scope of your engagement letter
* Make any changes to the business plan as requested by the client
* Print copies of the revised business plan for the client

Here are the final services you might perform:

* Resolve any final questions the client may have
* Accompany the client to meetings with the people who want the business plan (bankers or investors)
* Make any final changes to the business plan
* Print copies of the final business plan for the client and other interested parties.