Question

Topic: Strategy

What's It Worth?

Posted by Anonymous on 4/26/2005 at 4:28 PM ET 125 Points
A friend referred one of his clients to me for help with a business plan. I wrote a few business plans while in MBA school but have no real-world experience and told this to my friend and his client. Still, his client wants me to review her business plan and suggest changes, etc.
She has asked me how much I charge for this service. If it turns out to be a simple review, I won't charge her anything. However, if this ends up taking several hours, what is a fair price to charge?

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RESPONSES

  • Posted by Pepper Blue on 4/26/2005 at 5:02 PM Accepted
    Hi jghux,

    Business plans can take a very long time especially if you have to do the research, proformas, etc.

    If it is for a company looking for outside funding, it becomes even more critical.

    Ballpark estimate I would say between 75-100 hours. This is from experience.

    Hourly, I'm not sure what you feel your time is worth, especially to a friend, but a range of +-$75 - +-$100 an hour "depending" is street price.

    Final project cost $5700-$10,000.

    The friend part is tricky, as is who will be looking at this business plan as you only have once chance to make a great impression to a potential investor.

    Also, you will need to include a summary as a 40 page plan is too large for what some investors want to see up front.

    Hard to tell about the review part. What if you feel the entire plan should be scrapped? Many times this is easier than try to patch it together so it is presentable.

    I hope that helps!

  • Posted by Peter (henna gaijin) on 4/26/2005 at 7:03 PM Accepted
    I agree with the comments on hourly rates - between $50 and $100.

    Not sure I agree with the total cost part nor the hours required. That would much more be based on where the business plan stands right now. I've seen some that were pretty good to start with, so you would only be talking a few hours of work.

    Then again, I've seen ones that were half done, and in that case if they wanted you to finish, the time required could be much more than 100 hours.
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