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Topic: Biz Plan Price Advice
| Author | Message |
| Astera | Posted – 6/6/2008 7:27:45 PM | show profile Hi all, What's a fair price for developing a business plan? Some background: A friend/potential client asked me to write a business plan for him. He's put a lot of thought into the business and has made connections with experts who can help him get his business started, but he needs a formal written plan. I was honest with him and let him know that I have only written one other business plan, but he still wants me to do it, in part because I have a personal connection to the topic he's covering (cancer). I told him my hourly rate was $60 (I live in SoCal, not NYC, for what it's worth), but he'd rather get an overall price, and I think it would be easier to just work out a flat fee, rather than trying to track my time. I asked what his budget was, but he doesn't have any sort of number in mind. He has provided me with some background information, but it would be up to me to contact his experts and fully develop the business plan. I'd have about a month to turn this project around. Problem is, I have no idea how long this might take, so I'm having trouble formulating a price for him. I've seen rates around $4,000 or $5,000 for business plan writing, but I'm not an expert, so that seems too high. However, I know I can tackle this project, so I don't want to sell myself short, either. All things considered, I was thinking maybe $2,500 or $3,000. Too high? Too low? Any advice would be greatly appreciated. ------ www.adventuresofastera.blogspot.com |
| Astera | Posted – 6/9/2008 11:34:52 AM | show profile Bumping this up to see if anyone has suggestions for me! |
| foodlit | Posted – 6/9/2008 2:25:09 PM | show profile I could be way off base here, but it seems like this is something he should do himself, developing and laying out the business plan. With business plans it is more about the facts than the writing. Just seems like this is an important part of the process, his own research into whether or not he has a viable plan. That's probably no help...maybe this is something that people do farm out. It's just that I have my own business and have friends who have their own businesses and couldn't imagine not doing this ourselves. That said, if you're doing all the research and the writing, 4-5k sounds reasonable to me. |
| Astera | Posted – 6/9/2008 3:33:31 PM | show profile Thanks for your reply, Foodlit. Yes, ideally this is something the business owner would be doing himself, but apparently he's tried to get started and failed. He thinks that if he gives me the project, it will actually get done, which is true. He'll pay me, and I'll get it done. But I will have to work closely with him and his contacts to put this together, and it will take a substantial amount of time. I'm going to give him a bid this afternoon, and I hope we'll be able to negotiate from there. |
