[Deejay1]

I am helping a friend who is a model set up a Modeling Agency. She has lots of friends who are models who want her to represent them and she has lots of clients who want models. She does not however have the knowledge or time to put together a professional agency to take care of the legal side of her business, as well as the promotional side. I have found her an investor, and would like to help her present him with a business plan in order to get her business started in a professional manner, therefore helping her to keep the business going!
Can you direct me on how to make a business plan for her, what it should cover, and how to make it as professional as possible. Thank you!

[jeffinnport]

Sounds like your friend wants to/can handle the sales and marketing aspects. As far as the legal side, you should be able to handle that by having an attorney draw up a standard contract that has all the standard terms and conditions, references an an addendum or exhibit that will be attached for each job that states economics of that job (i.e what's being provided and the cost).

As far as writing a business plan, if you want to obtain details, Google "business plans" and you'll get ton of hits that you can search through. Some are just explanatory, some are selling a DIY kit for making a plan.

Here are the elements that need to be in a plan:
- Description of business. What services/products are provided
- What's the market, and the size of that market?
- What market need does your company address? Why are your products/services unique or better than other available solutions?
- How will you market and sell your products/services?
- How will your company be organized to produce and/or deliver the services?
- financials - projected income statement, cash flow and balance sheet for the next 5 years
- initial capitalization costs how much capital is needed to get the operation off the ground, and support the expenses of the company until revenue reaches a self supporting level
- exit strategy - are you going to keep the business forever, or will you sell it some day? Go public? The latter is extremely important if an investor is involved - they do want a payback some day.

You should have this all worked out before you have any discussions with investors so that you know what you're asking for in terms of capitalization, and why. If you're fortunate, the investor you have identified is a friend or family member, and can work through some of this with you. If that is not the case, then get your ducks in a row first.

Keep in mind that an investor is going to want a percentage ownership that could be as high as 50%. You need to understand what the investment is going to do for you as far a jump starting or accelerating the growth of the business.

Do you really even need investment? It sounds like your friend knows models who trust her, and she also knows people that need models. So she has a network in place. Sounds like all she needs to get started is a laptop, a cell phone and some expense to cover legal fees for company formation papers and a basic contract.