How to Write a Business Plan for a Consulting Business

When you need additional financial backing for a proposed consulting business, you must prepare a well-written business plan for potential investors, venture capitalists, and banks and other lending institutions. You must prepare a business plan that includes an explanation of your business and how you will market it, a detailed financial breakdown and how you will successfully manage the consulting business.

Difficulty: Moderately Challenging

Instructions

1. Prepare the "Statement of Purpose." Be sure to include the following: requested loan amount, amount of your personal investment, how your business will be affected by the loan and the reasons why you are requesting the loan.

2. Write the "Executive Summary." Include a detailed description of the following: specific business activities, marketing plans, an analysis of your competitors, employee background and experience, and how you plan to successfully manage your business. Also, include a mission statement and the goals and objectives for the consulting business.

3. Include relevant financial information. This section must consist of loan applications and a detailed list of capital property, plant and equipment. This section also must include hypothetical balance sheets, break-even analysis, profit-and-loss statements and the basis for your financial inputs.

4. Gather supporting documents. Find all the information necessary to support the information contained in your business plan. Be sure to incorporate all proposed and actual lease and/or purchase agreements, your personal tax returns and resume as well as those of the key employees of the consulting business, if applicable.

Tips & Warnings

• Provide sufficient detail related to your background and the backgrounds of key employees. Include special awards, certificates or special licenses received. Offering this information will demonstrate past success that you will carry into your consulting business.
• Prepare financial statements for every month of the first year of the consulting business and every quarter for the following three years.
• If you do not have professional-level writing skills, buy business plan software. Don't take any chances of getting denied financial backing due to an unprofessional business plan.
• Be realistic with your hypothetical financial statements. Every business takes time to make a decent profit and investors know this. Be sure your numbers are consistent with other consulting businesses.
• Don't forget that you are selling your knowledge and expertise in a consulting business. Highlight this as much as possible in your executive summary, your mission statement and anywhere else in the business plan you think it is relevant.

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