Most founders know their business better than anyone else will. What they often do not know is how a lender, investor or endorsing body reads a business plan, and what makes the difference between one that gets funded and one that gets a polite no. That gap is what a professional business plan writer fills.
Here is what the role involves in practice, and how to tell whether it is worth paying for.
Turning what you know into what a reader needs
A good writer spends most of the first conversation asking questions: who buys, why, at what price, how often, what it costs you to deliver, who you compete with, what the money is for. You already know most of the answers. The writer’s job is to organise them into the structure a reader expects, fill the gaps, and put the emphasis where that particular reader will look first.
That last part matters more than it seems. A bank reads for affordability and security. An investor reads for the size of the outcome. A visa endorsing body reads for innovation, viability and scalability. The same business needs a different plan for each, and an experienced writer knows the difference. There is more on this in who reads a business plan.
Building projections that hold up
The financial section is where most self-written plans are weakest, and where a writer with a finance background adds the most. A credible forecast needs:
- sales built from customers, prices and volumes you can evidence, not a target
- costs that include the easily forgotten lines: employer’s National Insurance and pension, VAT, Corporation Tax, owner’s drawings, working capital
- a monthly cash flow that shows the lowest point, not just the year-end total
- a sensitivity test showing what happens if sales are slower or customers pay later
These are the figures a lender turns to first. There is a detailed account of how they are read in what a lender checks in your cash flow forecast.
Testing the idea before you commit
One of the most valuable things a writer can do is tell you something you did not want to hear. Building the forecast properly sometimes shows that the rent is too high for the turnover, the price too low to cover the costs, or the funding request too small to reach break-even. Finding that out before you sign a lease is far cheaper than finding it out afterwards, and a writer who has no stake in the answer is well placed to spot it.
Market research and competitor analysis
A plan needs evidence of demand and an honest view of the competition. A writer can gather published market data, but the most persuasive evidence usually comes from you: conversations with potential customers, letters of intent, early sales. A good writer will tell you what evidence would strengthen the plan and help you present it. See why market research is crucial and how to do a competitor analysis.
What you still have to do
Hiring a writer does not mean handing the business over. You will need to supply the facts, answer questions, review drafts, and above all understand the plan well enough to defend it. Lenders ask questions, investors probe, and visa endorsing bodies interview. A plan you cannot explain in your own words is a liability in that room, however well written it is.
When a writer is worth it
A professional writer is usually worth the cost when:
- the plan is supporting a significant loan, an equity raise or a visa application
- the business is complex, or the financials are beyond your experience
- you are short of time and the deadline is fixed
If the plan is mainly for your own use, or your business is simple and you are comfortable with numbers, writing it yourself with good tools is often the better choice. There is a fuller comparison in business planning software vs professional business plans, and a guide to the different kinds of help available in business plan writer, consultant or advisor.
How SquarePlan can help
Our business plan writing service is led by a chartered accountant and writes plans with full financial projections from £499, turned around in anything from 48 hours to four weeks. If you would rather write it yourself, SquarePlan’s software takes you through each section and builds the forecasts as you go. And once you are trading, our business management support turns your monthly figures into a short report on profit, cash and whether you are on track.