Securing start-up or growth funding – write your own plan or hire a professional?

Securing start-up or growth funding – write your own plan or hire a professional? If you are raising funds for a start-up or to grow your business you will need a business plan - one that includes a financial forecast and a well-written commentary. For micro businesses raising less than £50,000 it is probably best to write the plan yourself. Jonathan Hunt, Lead Consultant for The Business Plan Team (www.TheBusinessPlanTeam.co.uk) says “It doesn’t make sense spending 10% or 15% of the funds you are trying to raise on getting someone to help you write a plan. Most high street banks offer on-line applications or software templates to help you. Also, if you write your own plan you will know every detail which will help you when questioned by a bank or potential investor.” “For larger businesses too there may be value in writing your own plan. If you write your own plan then you will know every detail of it, which will help you when questioned by a bank or potential investor. Writing your own plan might also show your all round commercial ability to appreciate all aspects of the business and with that there is a good chance that you will understand how to drive it towards success,” he says. However, where companies lack the skills or time to write their own plan or where large sums of money need to be raised it is advisable to enlist the help of a professional who will bring specific independent expertise to the table. They will have writing skills and a broad base of commercial experience including financial forecasting. By the nature of their independence they can also provide an objective perspective on your business. As well as offering business plan writing itself (both financial forecasting and the written plan) they may also offer help with “pre-business plan” research and feasibility and “post-business plan” introductions to potential sources of funds. “A business plan expert can help companies who do not have all the financial, sales, marketing, operational skills and experience necessary to construct a good business plan. Where companies do have these skills, they may still lack the ability (or time) to integrate them into a solid business case. Failure to do so may reduce your chances of securing funds,” says Jonathan. “If you do decide to hire a business plan expert, make sure you are fully involved in the process – you need to own the plan at the end of the day and know it inside out - your future is in your hands not theirs!” ENDS Editors notes: For further information or interviews call Jonathan Hunt on 01844 201518 or email him at jon.h@thebusinessplanteam.co.uk. The Business Plan Team was established to offer a flexible and affordable “virtual” alternative to “face to face” business plan writing services. By providing more affordable virtual services it aims to increase access for start-ups, small and medium businesses to help from people with senior commercial experience in the area of business plan development.

Tags: