The Role Professional Business Plan Writers Play in Creating Financial Projections

Although the role of Professional Business Plan Writers may seem straight forward or one-size-fits-all, the role they take in your business plan can take several different forms. This may apply to all aspects but, can be particularly evident when it comes to the Financial Projections of the business plan. They will most likely approach their role in one of the following ways.

Incorporating Your Projections

The most popular arrangement with professional business plan writers is for you to provide them with finalized projections. The financial projections for your business plan will, or should be, well supported by other information in the business plan. However, if this is the arrangement, professional business plan writers will only take the information you provide and write the best Business Plan as possible with what is provided. They will not scrutinize your financial projections or any other aspect of your business plan.

Validating Your Projections

Another common arrangement for professional business plan writers in terms of financial projections in the business plan is to validate them. Some professional Business Plan Writers will act as a second set of eyes and may even take on an advisor role for your business plan. They have seen numerous business plans as well as financial projections in business plans, and they can quickly identify when something is not aligning, missing, or contradictory. While they won’t advise you on the overall creation and business concept, they will express their opinion when they realize the information provided will not create a fully sound business plan and make suggestions for improvement or further research and consideration.

Creating Your Projections

Some professional business plan writers go a step further and will actually act a consultant. They don’t just write your business plan or create the financial projections for your business plan, they will actually help you plan out your entire business and craft the resulting financial projections. This is likely to include doing some initial groundwork such as market research. This arrangement can have its advantages as the final business plan often ends up being more cohesive because the person writing it is also researching and planning it. The financial projections in the business plan are apt to be more solid as well. Unlike in the other arrangements when they are taking your information and trying to read between the lines, in this relationship they will understand the intricacies and fine details.

The role that professional business plan writers play in creating the financial projections for your business plan will vary. The only way to ensure they are going to be involved in Your Financial Projections Business Plan the way you are expecting is to have open communication.

Many professional business plan writers are explicit about the role they will play. However, don’t be afraid to ask if it is unclear. If you and your business plan writer are not on the same page prior to beginning drafting your business plan, it can lead to frustration on both sides. The only way to avoid this is to be very clear about the expectations prior to having professional business plan writers begin your project.

Connecting Financial Modeling to the Pitch Deck

 

Whether you realize it or not, financial modeling is closely tied to a pitch deck. When you create a pitch deck, the last thing on your mind is probably Financial Modeling. Yet, it plays a very important underlying role in the pitch deck’s creation. Financial modeling may even be used to facilitate a conversation with a potential investor following a pitch deck presentation.

Financial Modeling Defined

The first step to understanding how financial modeling ties in with the pitch deck is to fully understand financial models. Unlike Financial Projections, which are static and do not change once set, financial models are dynamic, adaptable tools used to evaluate multiple scenarios. Financial modeling is a key component of decision making in everyday business as well as initial business planning.

The Role of Financial Modeling in Financial Projections

Financial modeling will be used to determine the final financial projections which will become part of the business plan. The Pitch Deck, of course, is a presentation of the overall business plan. One of the main components of the pitch deck will be the financials. As expected, this is one of the main interests of potential investors.

When determining the financial projections, they are not as concrete as many people realize. They are based on a number of assumptions. These assumptions must be supported but are open to interpretation and can usually be within a wide range. Pair that information with the number of variables and it’s easy to see how there could be thousands of possible outcomes. It is all about how you put the numbers together.

When you set out to create a business plan and ultimately a pitch deck, you are doing it because you believe the business can be profitable. Financial modeling allows you to prove that to yourself and see under what circumstances it can happen. It also allows you to understand the potential, both the lower and upper limits, of your potential expenses and revenues.

The process of financial modeling makes it possible to either confirm your decisions or, to make more informed decisions about your business plan. You may, for instance, decide to change the location of your office or decide to be fully remote. It allows you to eventually understand exactly how much money you need to launch or grow. It will also allow you to see where you can cut expenses or where you may need to focus your sales efforts or ramp up your sales goals.

Facilitating Investment Conversations

Ultimately, the Pitch Deck will hopefully lead to investor interest in your business. Often, potential investors will run numbers themselves after the meeting to determine their investment and potential return under various scenarios. However, if you can anticipate these questions, you can prepare financial models that you can use in real time to facilitate a preliminary conversation. This can help speed things along and demonstrate you are prepared, thorough, and taking your business seriously.

Financial Modeling may seem removed from the pitch deck but, as you can see, it actually plays a very imperative role. It forms the foundation of your financial projections, facilitates you making important business decisions, allows you to support and defend these projections and decisions and can even help you facilitate the investment conversation.

Why Not to Skimp on Market Research in Your Bank Business Plan

When you are preparing your bank business plan to apply for a bank loan or line of credit, it is imperative that you do not skimp on market research. Market Research is a very powerful aspect and tool of any business plan but, this is especially true when you are applying for outside funding through the likes of a bank or investors.

Loan officers will be reviewing your Bank Business Plan with two questions top of mind.

1. Business Viability

The first is if your business or business idea (if not yet established) is viable, likely to succeed, and likely to be able to support repayment of a loan. The key to proving this is market research. Market research takes many shapes and forms and is both qualitative and quantitative in nature. The current figures of your business if it is already up and running will factor in but, that is not nearly enough.

Proving business viability and demonstrating that you have thoroughly considered your business or future plans will rely heavily on market research. Solid, comprehensive market research that is incorporated throughout your bank Business Plan is the best way to prove viability. Naturally, market research will be covered in depth in the market overview section of your business plan. However, you should use supporting elements in other appropriate areas of the business plan to back up your points. This could be when you are discussing the products/services and will certainly be included in your financials. The importance of supporting your entire business plan with market research cannot be stressed enough.

2. Personal Credit

The second major area of concern for a bank officer is your personal credit and that of any other business owners. Unlike in investments, when it comes to bank loans, you will be personally liable for the debt should the business fail. They are unlikely to extend a loan or credit if they feel the business is not likely to succeed but, no one can predict the future and banks are aware that businesses fail for all sorts of unpredictable reasons.

Especially if your personal credit history or personal finances are not in the best shape, you are going to have to rely on your bank business plan overall to carry you through. Proving a viable business is important regardless but, it becomes even more important in this case. As already stated, the key to crafting a solid bank business plan is market research.

Mitigating Risk

Overall, a bank loan officer’s purpose is to mitigate risk. In this case, mitigating risk is two-fold. It ensures the business is likely to succeed, which should be largely supported by market research, and if the individuals are likely to be able to cover the loan if the business is not successful. The bank business plan is the perfect format to address both of these aspects. Unlike other types of business plans, the bank business plan should focus on being very risk adverse and that must include issues around personal credit and Market Research. Addressing these issues and tying them in will make the strongest possible case for your business bank loan or line of credit application.

 

Understanding How Financial Modeling Leads to Financial Projections in Your Business Plan

 

One of the most mysterious parts of a business plan to those that are unfamiliar with business is often the financials. Despite appearances, the financial projections in a business plan are not a work of magic. Rather, they are a work of art and logic derived from other information that will go into the business plan combined with Financial Modeling.

Financial Models & Financial Projections Defined

The first part in understanding how financial modeling leads to financial projections in a business plan is to understand the difference between the two. Financial projections are static, unchanging goals or targets. Once set, new financial projections, forecasts, or budgets may override them but, they themselves do not change. In essence, they are locked in time.

Financial modeling on the other hand is intended as a tool to review various scenarios and help in making decisions. It is a template, customizable tool, that will change with various inputs. It is meant to review possibilities of a financial scenario or multiple scenarios. When it comes to a business plan, financial models are used to help create the Financial Projections. They are also used in everyday business for a plethora of reasons and to consider multiple circumstances and understand how they will financially impact the business.

Financial Modeling in Financial Projections

Market Research will play a very large role in the financial projections in the business plan. The market research process will hardly answer all questions about whether or not a business can be financially successful. However, it does give a strong indication of the potential open market for a business and will help a company pinpoint a reasonable range for what they may expect in revenue.

Expenses typically seem more concrete than revenue but, they too will vary within a reasonable range. It is through the process of financial modeling that you will run various financial scenarios to determine where your comfort level is for your business. This process of financial modeling does establish the financial projections in the Business Plan but, it is doing something even more important. It is setting the sales goals and expense budgets as well.

In terms of the financial projections for the business plan, financial modeling will allow you to settle on numbers that can be supported and are realistic but, will also paint a positive picture of the business. After all, you wouldn’t be trying to start or grow a business if you don’t believe it is going to work out. Your projections are just as useful to setting goals for you as they are presenting your business to a potential lender or investor. One important thing to remember is regardless the various models or projections you have come up with, the core numbers of your business plan should not change regardless who they are being presented to.

Financial modeling and Financial Projections Business Plan will both be used to guide your business. You will likely use financial modeling daily or weekly to help guide business decisions. The projections, though static, will set goal posts for the business, especially in the early stages and for the short term. Both are important to running a successful business.

 

How Your Bank Business Plan Can Translate to a Pitch Deck

Typically, a pitch deck is used when approaching investors. It is much less common when appealing to potential lenders. The Pitch Deck is an abbreviated, typically more visual, presentation about your business idea. Although it is a rare and not expected, it can be a unique and beneficial way to gain interest in your bank business plan.

Memorable

When it comes to appealing to potential banks and other lenders, doing something out of the norm for the application process can be a little risky. However, a pitch deck, especially one that can stand on its own and doesn’t require an accompanying presentation to be understood, can help your application stand out. Part of lenders’ core responsibility is to review any small business loan application and Bank Business Plan that may cross their desk. However, that can be a lot of business plans and they will only choose the most appealing of the lot. Your bank business plan must be solid and appealing but, translating that to a pitch deck to capture attention on its own or during a presentation can be a game changer.

Top Line Financials

In a pitch deck, you may likely only present top line and summarized financials. However, you will still need to back all of these up with realistic, detail financials in the bank business plan. Presenting the top line without the detail immediately accessible will help them see the “forest for the trees” at first sight. Depending on your specific business, this may be a huge advantage. If your situation is the opposite, you can position the financials you include in the Professional Pitch Deck differently and give relevant detail before showing overall, top line numbers. The order in which some financials are presented can make a difference to perception and are much harder to control in the business plan.

Business Highlights

It’s not just the financials that will likely benefit from being presented in a pitch deck format but, rather the entire bank business plan. A pitch deck by nature is a highlight of your business. While it should be a fair and accurate representation of your business, it is also your chance to make a first impression. The bank Business Plan could also be considered your opportunity to make a first impression, but a pitch deck is even more abbreviated. It allows you to be very strategic with what information a lender first sees. It is a way to give a carefully curated introduction to your business that will hopefully lead to a lender wanting to dig into the full bank business plan.

Although a pitch deck is rarely required or even expected in a bank business plan presentation, it can certainly be an added benefit. It is a powerful way to make a quick introduction to your business to gauge or perhaps influence the interest of the lender. However, as with most things in business, if you know your audience, tailor your presentation to them. If you know the bank manager or other bank associates that will consider your Bank Business Plan, use that information to your advantage. A pitch deck may not always be appropriate for a bank presentation but, in cases where it is, it can create an advantage when done well.

4 Reasons to Have Professional Business Plan Writers Prepare Your Information Memorandum

If you are an investment banker or M&A advisory firm, and especially if you are an individual, you may want to consider hiring Professional Business Plan Writers to create your information memorandum, also knowns as the confidential Information Memorandum (CIM). There is a great deal of benefit to involving these professionals in the process.

Efficiency

In most cases, a third party will negotiate the sale of a business. If you are one of these third parties, taking time to produce the information memorandum could very likely create a bottleneck in your business. In instances like this, it is often best to outsource some portion of the work required to other professionals in order to efficiently prepare a business for sale while still running your own business.

Although you will likely dictate what is featured and highlighted in the information memorandum, your time is likely better spent focused on recruiting new clients and negotiating sales prices instead of writing up the official documents. Even if you are an individual, hiring Professional Business Plan Writers may be the best way to proceed for a number of additional reasons.

Sales-Minded

Professional business plan writers write business plans for a wide range of purposes. However, the most common reason is to secure outside funding from lenders or potential investors. When writing business plans for outside parties, professional business plan writers write with a sales mentality. It is not just about presenting the details of a business. It is about writing a plan, or in this case information memorandum, that will command the attention of the outside parties and presenting the business in the most saleable way possible.

Professional

One of the main reasons to hire professional business plan writers is in the term itself: they are true professionals. Serious businesspeople like investors, bankers, and lenders expect to see information presented in a specific way. They don’t like “fluff” but, they do expect information to be presented with a certain level of formality and formal business language. Professional Business Plan writers are used to writing in this style by default.

Visual Appeal

In addition to being sales-minded and producing a professional information memorandum, professional business plan writers will also make sure the information is presented in a way that highlights the most important aspects of a business in a way that is visually appealing and memorable. Potential investors or acquirers may see dozens of information memorandums or business plans per day. It is important that your document, regardless the format, quickly captures their attention and is as easy to look at and follow as it is informative. Professional business plan writers know how to meld these aspects together seamlessly.

Regardless your role, if you are responsible for creating the information memorandum, there are multiple reasons to hire professional Business Plan Writers. This is just a highlight of some of the most obvious and practical reasons. It is always best to consider all of your options when you are planning to sell or seek majority share investors in your business. Involving professionals in every aspect, if feasible, will almost always lead to better results.

 

The Impact of Market Research on a Business Plan

Outside of the financials, market research may the most important aspect of a business plan. However, this may not seem obvious from the outset, especially if you are new to writing a business plan. Market Research is an extensive process that should inform many of the decisions you ultimately make about your business.

Market research should be one of the first steps in writing a business plan. It may seem like one of the final aspects to round out a specific section of the Business Plan but, it is actually more fundamental than that.

Market research covers a lot of ground. It isn’t just about understanding the size of the market. It’s about understanding the key players in the market, otherwise known as your competitors. It is only through understanding the competition that you can truly decide how to position yourself. You must have a point of differentiation. Whether that is through pricing, difference in product, or a differentiated marketing approach, market research will create the foundation for all of these decisions.

The first part to market research for your business plan is usually getting information about the overall market. This is imperative as it proves there is an appetite for your product or service. This can be difficult when you are starting something completely new but, the most informative market data providers should be versed in whatever your market/industry is if it is truly something where this is potential. Those market research resources are at the top of their game and usually well ahead of the curve in terms of trends. If you can’t find valuable information through them you need to question if there is a real market for your products or decide if you are truly just that ahead of the curve.

In pricing analysis, there are a number of factors that will go into setting your price. Part of it will be based on your costs. You have to ensure you are going to make margin on what you sell. Beyond that, pricing will largely be informed by Market Research. Things like what competitors charge and what the market will tolerate are vital considerations. These things will be revealed through Market Research.

Another key in market research is competitor analysis. If there is a market for your products or services that is half the battle but, the next question is whether or not there is space in the market for your business. The only way to understand this is through knowing the main competitors in the space. These competitors could be on a national or local level. It all depends on the scope of your business. The important thing is to identify who these key competitors are and to study them. You need to have a rough idea of how much of the market they currently capture and whether or not you can carve out part of the market for your business to be successful.

There are a number of important considerations when writing your business plan. However, Market Research will have an impact on numerous portions of the plan and influence a great deal of your early decisions. This is necessary to ensure that you aren’t just considering your business in isolation but, rather how it will fit into the overall tapestry of the full market and economy, regardless what scale that may be at for the entire business. If you’re unsure how to conduct meaningful market research, consider hiring an expert. It’s worth it to ensure your plan is truly viable, not just on paper for your Business Plan but, in reality and execution as well.

The Importance of Market Research in an Information Memorandum

An Information Memorandum, also commonly referred to as a confidential information memorandum (CIM) or offering memorandum (OM), is a document used in the sale of a business. It is a document used to present information about the business that is up for sale. It gives vital information about the operations, management team, financials and includes a great deal of other information as well. One of the other pieces of particularly important information is market research.

Purpose

The ultimate purpose of the information memorandum is to make the business as attractive as possible to potential buyers. It’s not just about selling the business but ensuring you get the best possible price for the business. There are many elements involved in making a strong case for the business, one of the keys to achieving this is Market Research.

Components of Market Research

In the information memorandum, market research will likely be concentrated in the section intended to overview the market, though it will be incorporated other places. Within the main section overviewing the market it will cover many components.

Overall market size is likely how this section will begin. It is important to demonstrate that there is a general appetite among consumers for the product or service that is offered. It demonstrates not only the size of the market but, also trends occurring within the market that have already or are likely to impact the business.

Beyond that, this section covers competition. Regardless the size of the market, a great deal of success will rely on how open the market is and what established or upcoming competitors are doing. You cannot truly present a picture of your company without discussing the competitors that are capturing other parts of the market share.

Another part of the overview of the market section may include other aspects of market research which include things like addressing your pricing. There are a number of factors that go into setting prices but, part of the equation is usually what the market will tolerate and what competitors are already charging.

All of these aspects are just a sampling of how market research will directly influence the decisions a business makes in the beginning and how it will justify and support those choices when it is time to sell the business.

Market Research in the Information Memorandum

Market research may not just play a part in the market overview section of the information memorandum. It will likely be referred to either subtly or directly in other sections. It will also be used to back up and solidify the Financial Projections. The future outlook on the company is not just based on the historic performance but, also the state of the market.

In some cases, the market is more indicative of the future potential of a company than nearly anything else. If there is no future market to support the business, it will not be successful no matter how great the products or services the company offers may be.

All sections in the Information Memorandum are important. Cohesively, much like a business plan, an information memorandum gives a solid and complete overview of a business. Market Research will inform many aspects of the entire document. It is certainly not the only important aspect but, it is a key that needs to be carefully considered, thoroughly researched, and incorporated throughout.

Tying Financial Projections from Your Business Plan into a Pitch Deck

When you sit down, or give instruction to a business plan or Pitch Deck writer, to create your pitch deck, one part of the consideration will be representing your business’s financial projections. Although you will likely only present a top-line summarized version of your financial projections from your business plan, they will have a big impact on your overall pitch deck.

Overview of Financial Projections in a Business Plan

The standard expectations for Financial Projections Business Plan align with the three primary financials statements you will regularly utilize to understand the state of your business and make informed business decisions. These include:

1. Income Statement – The income statement, also commonly known as the profit & loss (P&L) statement, shows the revenue and expenses of a company between two points in time. It shows how income transforms into net profit (or loss).

2. Statement of Cash Flow – This statement shows how income and balance sheet items - called accounts in financial accounting terms – impact the amount of cash and cash equivalents. Like the income statement, this represents the movement over a specific time period.

3. Balance Sheet – The balance sheet, as the name implies, shows the balance of specific financial components of a business. It is broken down into assets, liabilities, and shareholders’ equity. Unlike the income statement the balance sheet is not a document that shows movement between two points in time. Rather, it is a snapshot of a financial position at a given point in time.

4. Other Financial Projections – Beyond projections of three primary financial statements, you are likely to have other financial information like a break-even analysis. Also, depending on your specific business model, you may choose to include others. All Financial Projections in your business plan will not necessarily need to be included in your pitch deck.

Connecting Financial Projections to the Pitch Deck

Everything you are presenting explains the reasoning and rational behind the financial projections of your business plan. Although you will not focus heavily on the detailed projections, your pitch deck presentation will be touching on the elements that ultimately comprise and support the numbers. With any luck, your pitch deck presentation will lead to further interest in your business and your audience will view your entire business plan. This is when they will get into the full financial projections. They will have a deeper understanding of where your numbers come from because of the other elements of your Business Plan and what was covered in the pitch deck.

Most of the time, when you need a pitch deck, it is because you are approaching a potential investor. The financial projections overall are incredibly important but, they will be most interested in your balance sheet. Why? Because in terms of financial statements, it is only in the balance sheet that they get a glimpse into the expectation of business ownership. This is, of course, going to be something that is negotiated but, the balance sheet is the formal, organized way of representing how the business is to be funded in total beyond their potential investment.

Though the financial projections from your business plan may not be included in the pitch deck in detail, they are still intimately tied together into all aspects of it. You cannot separate a business from the numbers and the Pitch Deck, despite not usually being number-centric, is evidence of that.