Established businesses are different from startups. They have a history. They have products, services, and processes that work, and some that don’t. They have a mix of happy customers and not-so-happy customers. They usually have a small executive management team, some employees, and probably some contractors. The big difference is that established businesses have something to lose. A new business plan has to transition the business from the old to the new without breaking all the things that already work.
What is the process?
SDG Associates works with small businesses, ranging from 5 to 50 employees. Our business planning process is intense, thorough, and highly collaborative. We provide an objective view, so your final business plan is based on reality, not pixie dust.
We work closely with you to understand your goals and vision, and then develop a clear roadmap for your business for the next few years.
Unlike many of our competitors, we expect — even demand — several iterations. We understand that the first version is rarely perfect. If you are not happy with our work, we aren’t either.
We question assumptions, perform independent research, and explore and propose alternative ways to help you achieve your business objectives. We are business consultants, not just writers or “reporters.”
If you need to raise capital, we’ll evaluate your business plan from the viewpoint of a prospective investor or partner. Our experience allows us to quickly spot problems and fix them long before you meet with your first investor.
What all is included?
Our writing style is clear, direct, and simple. A typical startup business plan includes all or most of the following components, but has less detail than a more established business would require.
Industry Overview — a general introduction to the industry
Market Opportunity — How large is the business opportunity is in terms of revenue, number of customers, growth trends, etc.?
Customers — Who are they, where are they, how many are there?
Competition — Who is doing the same thing -- or something similar -- to what you are doing? How are you unique (and better!) than they are?
Products & Services — What products and/or services will the business supply to customers?
Business Model -- Who are your customers, what are your revenue streams, and how will you make money?
Sales & Marketing — How will you attract and retain customers, deliver your product/service to them, and earn their loyalty? How will you position your products and services relative to competitors?
Operations — How will you get things done on a daily basis? This includes everything from research through pricing and promotion to production on to sales and billing.
Management & Staff — Perhaps the single most important factor in any effective business plan, what are the skills, talents, experience, and connects of your team? What additional human resources will you need to make the business succeed?
Investment Opportunity and Exit Strategy for Investors — What will potential investors get for their money or their time? When and how will they be compensated?
Financial Projections — Focuses on cash flow projections (with major revenue sources and expenses included). We also map out the assumptions behind the financial projections.
As professional business plan consultants, we see a variety of business plan types. The three most common business plan types are:
Bank financing
Internal planning, or
Investor financing.
Despite the rumors, business planning is rarely easy. It is inherently nonlinear. By that, we mean it doesn’t follow a neat set of orderly steps, and each step depends on the others, so “minor” changes to one part of the plan can often result in “major” changes in another part, which then cascade through the rest of the plan. Be sure to avoid these common mistakes when creating a business plan. We do not offer any fixed price packages and we generally avoid templates. Before we can estimate the fee for completing your business plan, we need to understand your individual situation. This generally requires a brief conversation about your project goals, timetable, budget, scope, and other issues. Our startup business plan services typically fall between $3,000 and $10,000 depending on a number of factors. Although we are far from being the most expensive, we are also rarely the least expensive.
Do I need a business plan?
Every business needs a plan! And, almost every business that has used SDG Associates will tell you there’s no better place to go if you want a business consultant to help you develop your business plan. But if you decide to go it alone, here are a few guides and books that can help you:
Be very wary of “business experts” who claim a business plan isn’t necessary. Every business needs a business plan. The level of detail required may be up for debate, but the idea of just throwing spaghetti at the wall to see what sticks is foolhardy in the extreme. A solid business plan by no means guarantees success, but it greatly increases your odds.