This blog will give you a clear idea about business plan cost and other relevant factors associated with it.
What works for someone else might not work for you. The same goes for a business plan and the type of services you take to write one.
You might have heard and read about the importance of business plans from various resources, so the next step would be to decide upon the method and budget for writing your plan.
Depending on your business, you might not need to spend hundreds or thousands of dollars on a business plan. As effective spending matters for businesses, it is the best practice to go through all of your options and pick the one that fits your business and budget the most.
In this article, we’ll discuss different sources for writing a business plan, and normally how much writing a business plan costs.
How much does writing a business plan cost?
Hiring a business plan writer to help you write a business plan generally costs anywhere between $1,000 and $25,000, depending on the level of experience and the type of business plan. Expect to spend $25,000 to $50,000 when hiring a consultant.
However, using AI-powered tools to write your business plan costs much less. AI business plan generators like Upmetrics cost between $7 and $15 a month.
Traditional vs. AI-powered business writing
Working with professional business plan writers or consultants can be costly and requires a great deal of back-and-forth communication. It can be quite overwhelming at times.
With AI-powered business planning tools like Upmetrics, you can easily create comprehensive and investor-ready business plans in just about a few hours.
Business plan writers or AI tools, which are more budget-friendly?
Hiring a professional business plan writer to draft your plan is a pricey affair. Experienced writers generally charge anywhere between $1000 to $3000 and even more. Whereas, Upmetrics’ pricing starts from $7/month.
Generic or unique professional-looking plans?
Business plan consultants and writers generally use a one-size-fits-all approach. The odds of your business plan ending up looking exactly the same as dozens of others are pretty high.
Modern AI tools, however, allow you to customize your business plan and presentation to meet the uniqueness of your business model.
Both are great options to consider, but at the moment, business plan tools seem to have an upper edge.
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Understanding business plan writing costs
Let’s explore and understand the various processes/methods of writing a business plan to help you find the most suitable one.
Hiring a business plan writer
Entrepreneurs often consider it as the go-to business planning solution as they may not have the time to write a business. If you have a budget to spend a few thousand dollars on creating a business plan, It’s surely a trusted and proven way of writing a business plan.
How much does the business plan writer cost?
A business plan writer costs anywhere between $1000 to $3000. It is the appropriate method for businesses that need above $50,000 in investment and have complex planning and staffing needs.
Pros and cons of hiring a business plan writer
Pros
- Time-saving.
- Well researched with added points.
- Business plan writers know the jargon and style investors prefer.
- Let you focus on other aspects of your business.
Cons
- Might look homogenous with other plans in the same industry.
- You might have difficulty including your own vision in the plan.
- Would be a big drawback if the writer doesn’t know enough about your industry.
- Can be difficult to present as you’ve not written it.
- Doesn’t help you answer an investor’s tangent questions.
- Can be expensive, especially if you’re just starting out.
Hiring a business plan consultant
Hiring a consultant is one of the popular options, especially if you are trying to attract a particularly large sum of investment. A consultancy company would help you at every step from research to strategizing, business plan writing, and updating the plan.
But on the downside, consultancy services can be pretty expensive and isn’t for every business.
How much does the business plan consultancy cost?
Consultancy services may cost anywhere between $25,000 to $50,000. This also depends highly upon the firm you’re approaching and their level of expertise in the industry.
Consultancies also charge on an hourly basis. The rates also depend upon the complexity of the work.
Pros and Cons of hiring a business plan consultancy
Pros
- Consultants are usually experts in the niche and can give out-of-the-box ideas.
- They look at things from an unbiased perspective.
- They charge a predecided fixed amount.
- Help with updating and improving business practices and plans.
Cons
- They handle multiple clients and struggle with availability.
- They don’t give a guarantee of success.
- Consulting services are expensive and not viable for everyone.
- It can be difficult if the company leaves the organization.
- Many consultants go for generic solutions which might not work.
Using an AI business plan generator
Using an AI business plan generator can be considered the most reliable, efficient, and cost-effective way of creating a business plan for new-age entrepreneurs.
Business planning software like Upmetrics can help you create a detailed business plan in less than an hour.
The subscription includes 400+ sample business plans, AI business assistants, video tutorials, well-written documentation, and guides to ensure you are on the right track.
Upmetrics costs just $7/month on an annual subscription, making it an affordable option for startups and small businesses compared to other business planning processes.
Pros and Cons of using an AI business plan generator
Pros
- AI-powered text generation to write your business plan.
- AI-powered revenue and expense stream suggestions.
- Automatically generates financial statements and visual reports.
Cons
- It is time-consuming.
- You might need additional help.
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Using Combined Services to Reduce Business Plan Costs
Now if you don’t want to spend a huge chunk of money on a business plan writer or consultancy, but need a little more help than a business plan software would provide then you can also use a combination of services to write your business plan. If you need more help with the leg work you can do so with the help of a consultant and business plan software.
And if you can do the initial research and create the first draft of your business plan, you can use a combination of business plan software and business plan writer.
This might be a good choice for entrepreneurs who have the initial idea and a rough plan of how to set goals and milestones but would need more help with writing a business plan.
Why Does Your Personal Touch Matter in Your Business Plan?
All of us know that a business plan is much more than a 20-30 page long document. It captures the essence of your business and acts as a roadmap on your business journey. So, even if you’d save loads of time by using a business plan writer or consultant, your business plan would lag in a personal touch and unique vision.
Also, it is important to note that you can’t rely too much on consultants. No matter how good they are at their job, they’re still an external source and can leave your business anytime, and that would be a major setback for your business if you rely solely on your consultant.
Hence, taking part in your business plan writing process would ensure that you have a strong grip on your business from the beginning.
Conclusion
In conclusion, if you look through your options, you can not only save money but also pick a method that would be the best for your business.
A business plan is perhaps the most important document for your business.
Hence, it is essential for you to think through these 4 steps:
- Figure out the time and resources you have.
- Figure out what you can do by yourself and the areas you would need help in writing.
- After you find out what services you’d need, study the different software, writers, and consultants available on the market.
- Look through the services and what their previous clients say about them before you go ahead and take your pick.
At the end of the day, do your research, pick the right services, and take part in the process with full force and determination.
After all, your business dreams deserve all of it and more!
