Costs of Hiring a Business Plan Consultant

Writing a business plan on your own can be overwhelming, especially if you're new to business planning or juggling a busy schedule.

In situations like these, hiring a business plan consultant can be a good decision.

While they bring years of experience and specialized expertise, their deep understanding of planning makes them the ideal choice for creating business plans, financial forecasts, and pitch decks.

But how much does it cost to hire a business plan consultant?

Let’s get you an answer:

The cost range for hiring a business plan consultant is quite open. But why is it so?

Let’s figure out in the following segment.

Factors influencing the cost of a business plan consultant

The cost to hire a business plan consultant varies significantly due to certain factors.

Of course, the length, complexity, and urgency of the plan are a few factors influencing the cost of hiring a business plan consultant. However, these aren't the only factors.

Let’s understand each of the factors in detail:

1. Experience

Whether you plan to hire an individual consultant or an agency to work on your business plan—their experience in the industry will highly influence their costs.

Business plan consultancies with decades of experience will definitely charge more than emerging business plan writers or smaller agencies.

Moreover, consultancies specializing in niche industries or geographies can charge higher rates owing to their expertise in particular aspects.

For instance, consultancies that have an inherent understanding of e-commerce businesses will charge much higher for their nuanced understanding.

That said, experience is a trump card for consultancies to charge higher. However, if the budget is a core issue for you, give emerging consultancies a try. Their dedication and flexible approach will help you get an actionable business plan.

2. Geographic location

Business plan consultants in developed nations or metropolitans tend to charge more than consultants in developing or low-cost areas.

That said, a planning consultant in the US might charge anywhere from $50-$1,000 for an hour. However, consultants with similar experience and qualifications might be making much less in developing regions like Bangladesh.

Additionally, whether or not the consultant works remotely affects the cost. However, not significantly.

3. Complexity of a project

No two business plans are the same. So how can the cost be?

A business plan consultant typically quotes for their services depending on the complexity of your business model.

Consultants can charge higher for business plans that require in-depth research, planning, and strategic analysis. Besides, if your business idea is relatively new and requires all-round validation and analysis, the costs would soar high.

Further, the costs for investor-worthy plans with detailed financial projections and modeling are higher than regular template business plans.

Most consultants would evaluate your project on the following basis before quoting their price:

• Need for market research
• Need for analytical expertise
• Need for financial modeling
• Length of a business plan
• Time to finish a business plan
• The urgency of a plan

That said, if yours is a relatively simple business model, the costs of hiring a consultant would be much lower.

4. Turnaround time

Business plan consultants take anywhere from 4 weeks to a couple of months to produce a complete business plan. If the given timeline works for you, you can get the work done for competitive rates.

However, if you require quick services, be prepared to pay a premium.

5. Additional services

Another factor determining the costs is the scope of services offered by a business plan consultant.

Do you want a consultant to just write a business plan or do you want them to play an active part in the entire business planning process?

If it’s the latter, the charges are going to be significantly higher.

A consultant can help you conduct in-depth market research, prepare financial models, and build a strategic roadmap. Additionally, they can help you get in touch with the right investors and VC firms for your funding.

These services are going to take your consultant fees higher.

Further, will you require their services on a retainer basis? If so, the overall costs would remain higher.

6. Portfolio

Lastly, a consultant with a portfolio of successfully completed business plans stands to charge higher than the market.

A portfolio proves the efficiency and efficacy of a consultant in your field.

For instance, if you want to secure $50 Million in funding with your business plan, your business plan needs to prove that worth to the investor. A consultant who has helped other businesses secure such funds with a business plan can demand higher charges for their proficiency.

That said, the costs you pay to your business plan consultants are largely influenced by a mix of these factors.

Typical pricing models for business plan consultants

The factors influencing the pricing are so wide that they vary for each business plan consultant. There is no exact approximation one can get from the web.

However, here are a few pricing models commonly adapted by consultants. Understanding these will help you budget for business planning.

1. Hourly rates

As simple as the title suggests.

A consultant offers an hourly quote and gets paid for every hour of work they put into your business plan.

To offer an overview, the cost to hire a business plan consultant per hour ranges anywhere from $100-$300. Although, the same for business plan writers is between $25-$75.

Now, this method is only suitable if you have a clear scope of work. That is if you require very specific changes in your existing plan or want to rewrite specific sections.

Other than that, if you want the consultants to help with full business planning services, this pricing model isn’t suitable. This is because of the complicated work scope and undefined methods to track time.

2. Flat fee

Here, you pay an upfront fee for an entire business plan as decided.

A consultant evaluates your project needs and quotes a flat fee for their services.

This is the most suited method for paying business plan consultants as the unnecessary fluctuations wouldn’t disrupt your budget.

3. Project-based pricing

Here a consultant charges you for different phases of a project. In this case, a business plan.

For instance, instead of quoting you an entire price for a business plan, they would break it down into phases like:

• Market research and analysis
• Strategic planning
• Financial modelling
• Operational framework
• Marketing strategies

This way you can pay for your business plan in phases over time. Also, this gives you a chance to choose consultant services for selective aspects.

4. Retainer pricing

If your business constantly requires the services of a business plan consultant, this pricing model is suited for you.

Here, a consultant charges a fixed amount every month as a part of their continuing services.

Sometimes, a consultant can charge variably depending on the amount and complexity of work undertaken each month.

Now, most business plan consultants will resort to one of these pricing options while quoting their services. Depending on your requirements, you can evaluate the pricing that will suit you the best.

How to budget for a business plan consultant

As established, the services of a business plan consultant can be found costly by many entrepreneurs. However, for the value they bring, these costs are quite justifiable.

Here’s how you can budget for these consultants to ensure value for your money.

1. Evaluate your needs

First thing first, why do you need a business plan consultant?

Do you want them to help you with end-to-end business planning or with specific aspects of a business plan? Besides, do you want to secure funding with your business plan or do you want to write one for a strategic roadmap?

Evaluate how much experience and expertise a consultant should have to prepare a business plan for you. As discussed, complex business plans with detailed nuances cost more than simpler plans.

Once you evaluate the needs for business plan consultants, go ahead and research a bit about them.

2. Do a research

Here you study and research different business plan consultants suited for your business.

Evaluate the consultants based on their scope of work, experience with your industry, turnaround time, and of course pricing.

Check their portfolio and customer testimonials to understand their work thoroughly.

Get in touch with the consultants or agencies to see if their work approach can streamline with yours and get their quotations for further comparisons.

3. Evaluate the return on investment (ROI)

Now, that you have the pricing of consultants, determine if the benefits of hiring a consultant will outweigh the costs.

Consider the value a professional business plan can add in terms of attracting investors, securing loans, or guiding strategic decisions.

For instance, if a business plan consultant can help you secure significant funding, i.e. $5M for a $50K fee, the benefits surely outweigh the costs.

4. Set a realistic budget

Based on your needs and market research, set a realistic budget to hire a business plan consultant. While setting a budget, buffer for a 20-30% increment.

Have a sincere look at your finances to ensure you don’t spend more than your capacity.

Further, decide the payment terms for the consultant’s fees. That is, will you pay the consultant upfront or in installments through project phases? Additionally, if you’re hiring a consultant on a retainer basis, budget for their monthly payments.

That’s how you budget for a consultant and get them on board.

Tips for finding the right consultant within your budget

Now, finding the best business plan consultant within your budget requires careful research and strategic planning.

Well, we have a few tips to help you choose the right consultant for your business.

• Evaluate the consultant’s portfolio to choose the one with the most relevant experience.
• Don’t limit your options geographically. Avail advantage of remote and international consultants.
• Have a clear scope of work to avoid paying for unnecessary services.
• Leverage your network to find consultants with better rates and recommendations.
• Opt for flexible payment terms to manage your budget.

Keep these tips in mind to avoid overspending and choosing the right consultant.

How PlanGrowLab can help

Let us save you the hassle of finding the right business planning consultant. PlanGrowLab can be your guiding force to help you get your business up and running.

Regarding your requirements, we provide an array of planning services to meet your requirements, including business plan consulting, review, writing, financial forecasting, pitch deck creation, and more.

Got more questions? Isn’t that obvious? Book a free consultation call with our advisor, and discuss your plan. (It’s just a free consultation with no strings attached!)