How much would you charge for a business plan?

A new prospect approached me to assist with preparation of multi year financial forecasts and a business plan in respect of a new business venture.

setting up the business will cost several hundred thousands of pounds, for some of which he requires secured bank borrowings.

He is fairly wealthy and not a "dreamer", having been in business before.

Basically he wants a fair bit of input into his business plan, and hand holding in approaching different banks for his new venture to get the best deal on the table.

I got on pretty well with him, and felt I had established some rapport.

After a fair bit of time probing his exact requirements I concluded it would take quite a few hours, so quoted £1,950 for this work. I thought this might be on the tight side, but balanced this against a new client aquisition.

However, when I phoned him to follow up, he said he had another quote for the same work of £350+VAT and would be going with that!!

No way could I have done what is required for that fee. Am I out of synch with other peoples views on this.

Comments
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Cannot be done for £350

Tosie |

Cannot be done for £350

Steve McQueen |
Steve McQueen's picture

Buying the work?

zarathustra |
zarathustra's picture

there are business plans and business plans

memyself-eye |
memyself-eye's picture

Focus on the value add

brianheg |

He doesn't want the plan

Bob Harper |
Bob Harper's picture

@Bob

zarathustra |
zarathustra's picture

Asking

Bob Harper |
Bob Harper's picture

options

mr. mischief |
mr. mischief's picture

£2k

Kent accountant |
Kent accountant's picture

I might do it for nothing if ....

Steve Holloway |
Steve Holloway's picture

What service is being offered?

Jekyll and Hyde |

Charge 5% to 10%

David Winch |
David Winch's picture

Once quoted

The Black Knight |

Irrespective of the charges

david13 |

More of this value based £%&*?

mackthefork |

"Isn't this part of the

mackthefork |

right drivel

mr. mischief |
mr. mischief's picture

If you are successful......

mackthefork |

Correction

mackthefork |

Contingent fees

BKD |
BKD's picture

Okay i can accept that, but......

mackthefork |

Straying from the point

BKD |
BKD's picture

Yes I am straying from the point, but.....

mackthefork |

safeguards

BKD |
BKD's picture

outright No

The Black Knight |

At what point is the accountant involved?

Jekyll and Hyde |

You seem a very reasonable fellow.....

mackthefork |

Point taken

BKD |
BKD's picture