Business Planning Fees

Hi,

I've been asked by the CEO of an existing high-tech business to create
a business plan and financial projections to obtain capital to operate
and grow the business.

He is willing to pay me a percentage of the capital that he actually
raises, and has asked me what is a reasonable percentage.

Does anyone know what is usual in such a case?

Thanks.

You are being asked to become an investor my friend. No problemos.

He should expect a Bill for $10,000 to $40,000 from you, a percentage of
the profits for a time, and no less than a 10% Draw on that before you
lift a pen. (Perhaps $3,500.00).

This last amount also needs to be the KILL FEE if for any reason
(impending divorce, shark in bathtub, inlaw troubles, submarine screen
door leaking) they change their mind about needing the work after day
one. This amount should also be billable as a flat research fee should
the market change before the work is done, through no fault of your own.

I'm sure someone else will drop a standard % on you for a case such as
this.

If you don't understand these figures, just ask.

If s/he does not want to pay that much money, he can buy a template for
49.95, have you clean it up/ customize in two evenings for 500.00, put a
attractive cover on it, then have a pretty 549.95 BP that raises a few
personal angel bucks before taking the business six feet under.

Just 1 guys opinion.
My contingency work days are long over.

In any event, if you do this gig, make sure you perform due diligence on
said company and CEO, also get "pitch" rights. The right to attend/
participate in funding presentations and negotiations, to protect your
time investment.
If you guys produce anything worth it's salt. it will eat up 6 months to
one year of your life.
This time is non-refundable.

~zion~