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In this blog you will learn about the importance of choosing the right pricing strategy for a successful business plan.

price of premise in business plan

Why is a pricing strategy important for a business plan?

A business plan is a written document outlining a company’s core business practices – from products and services offered to marketing, financial planning and budget, but also pricing strategy. This business plan can be very lengthy, outlining every aspect of the business in detail. Or it can be very short and lean for start ups that want to be as agile as possible.

This plan can be used for external investors and relations or for internal purposes. A business plan can be useful for internal purposes because it can make sure that all the decision makers are on the same page about the most important aspects of the business.

A 1% price increase can lead to an 8% increase in profit margin.

A business plan could be very lengthy and detailed or short and lean, but in all instances, it should have a clear vision for how pricing is tackled. A pricing strategy ultimately greatly determines the profit margin of your product or service and how much revenue the company will make. Thorough research of consultancy agencies also show that pricing is very important. McKinsey even argues that a 1% prices increase can lead up to an 8% increase in profits. That is a real example of how small adjustments can have a huge impact!

It is clear that each business plan should have a section about pricing strategies. How detailed and complicated this pricing strategy should be depends for each individual business and challenges in the business environment. However, businesses should at least take some factors into account when thinking about their pricing strategy.

What factors to take into account?

The pricing strategy can best be explained in the marketing section of your business plan. In this section you should describe what price you will charge for your product or service to customers and your argumentation for why you ask this. However, businesses always balance the challenging scale of charging too much or too little. Ideally you want to find the middle, the optimal price point.

The following questions need to be answered for writing a well-structured pricing strategy in your business plan:

What is the cost of your product or service?

Most companies need to be profitable. They need to pay their expenses, their employees and return a reasonable profit. Unless you are a well-funded-winner-takes-all-growth-company such as Uber or Gorillas, you will need to earn more than you spend on your products. In order to be profitable you need to know how much your expenses are, to remain profitable overall.

How does your price compare to other alternatives in the market?

Most companies have competitors for their products or services, only few companies can act as a monopoly. Therefore, you need to know how your price compares to the other prices in the market. Are you one of the cheapest, the most expensive or somewhere in the middle?

Why is your price competitive?

When you know the prices of your competitors, you need to be able to explain why your price is better or different than that of your competitions. Do you offer more value for the same price? Do you offer less, but are you the cheapest? Or does your company offer something so unique that a premium pricing strategy sounds fair to your customer? You need to be able to stand out from the competition and price is an efficient differentiator.

What is the expected ROI (Return On Investment)?

When you set your price, you need to be able to explain how much you are expeciting to make. Will the price you offer attract enough customers to make your business operate profitable? Let’s say your expenses are 10.000 euros per month, what return will your price get you for your expected amount of sales?

Top pricing strategies for a business plan

Now you know why pricing is important for your business plan, “but what strategies are best for me?” you may ask. Well, let’s talk pricing strategies. There are plenty of pricing strategies and which ones are best for which business depends on various factors and the industry. However, here is a list of 9 pricing strategies that you can use for your business plan.

  • Cost-plus pricing
  • Competitive pricing
  • Key-Value item pricing
  • Dynamic pricing
  • Premium pricing
  • Hourly based pricing
  • Customer-value based pricing
  • Psychological pricing
  • Geographical pricing

Most of the time, businesses do not use a single pricing strategy in their business but rather a combination of pricing strategies. Cost-plus pricing or competitor based pricing can be good starting points for pricing, but if you make these dynamic or take geographical regions into account, then your pricing becomes even more advanced!

Pricing strategies should not be left out of your business plan. Having a clear vision on how you are going to price your product(s) and service(s) helps you to achieve the best possible profit margins and revenue. If you are able to answer thoughtfully on the questions asked in this blog then you know that you have a rather clear vision on your pricing strategy.

If there are still some things unclear or vague, then it would be adviceable to learn more about all the possible pricing strategies . You can always look for inspiration to our business cases. Do you want to know more about pricing or about SYMSON? Do not hesitate to contact us!

Do you want a free demo to try how SYMSON can help your business with margin improvement or pricing management? Do you want to learn more? Schedule a call with a consultant and book a 20 minute brainstorm session!

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price of premise in business plan

More From Forbes

How To Start Writing A Business Plan That Works

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For the entrepreneur, knowing how to start writing a business plan can be as exhilarating as it is overwhelming. The business plan is a foundational document and the blueprint of your business and is critical for securing funding, setting clear goals, and communicating your vision to the world.

Let’s explore the significance of a business plan, the essential elements it should include, and strategies to forge a plan that resonates with stakeholders and steers your business toward success.

Whether you are about to launch your first business or need to revitalize an existing business strategy, a business plan provides the foundation that supports your entrepreneurial journey.

Why a Business Plan Is Needed

A business plan is not solely for the benefit of a bank manager or an investor . The business plan is a document that helps bring clarity to your vision and can guide every decision and strategy within your company.

A well written business plan forces you to put your goals and ideas into concrete, manageable steps. It cuts through the noise, ensuring you stay focused on what truly matters for your business’s growth.

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For startups looking to secure that critical initial investment, a business plan is often the first point of reference for potential backers. It’s a chance to sell your vision, show your financial acumen, and demonstrate a roadmap to profit.

Identifying potential pitfalls early is a vital aspect of proactive business ownership. A good business plan helps you prepare for the unexpected and develop strategies to mitigate risk and safeguard the longevity of your business.

Setting clear, measurable goals in your business plan provides a framework for tracking your progress. This will give you the insight needed to pivot or double down on strategies as the market dictates.

Creating Your Story

Before you start drafting sections and compiling data, step back and consider the story of your business. Your plan should be like a good book, with a clear narrative arc that compels the reader from the first sentence to the last.

Any good story is rooted in an understanding of the world it inhabits. Your business's narrative begins with a comprehensive analysis of the industry in which you operate, as well as the consumers you aim to serve.

Think about how you define your unique selling proposition (USP) . What sets your business apart from competitors? All good stories have a unique twist, and your business plan should articulate what makes your venture different from, and better than, the competition.

Introduce your team into the story. Highlight their expertise, experience, and any relevant achievements that lend credibility to the business’s ability to execute on its vision.

Writing Your Business Plan Is Just the Beginning

A business plan can span from a quick roadmap sketched on the back of a napkin to a hefty document carefully crafted to align with industry standards. Regardless of size, it should contain certain fundamental elements .

The act of writing a business plan, while pivotal, is just the first step in an ongoing process of refinement and execution.

Here’s how to make sure your business plan is a living document:

1. Regular reviews and updates

Markets shift, consumer behavior changes, and your business will grow. Your plan must evolve with these factors, which makes regular reviews and updates a must-do.

2. Be realistic

It’s essential to be both ambitious and realistic in your plan. Don’t over-inflate projections or underestimate costs. An unrealistic plan is as unattractive to investors as a lack of vision and ambition.

3. Seek professional input

Don’t be afraid to ask for help. Experienced business advisors, accountants, and mentors can provide invaluable feedback and spot issues you may have missed.

4. Start small

Your first draft doesn’t have to be perfect. Write down your initial thoughts, outline your ideas, and refine them over time. Starting with a large plan can be intimidating but working on it gradually can be a more manageable and effective approach.

The bottom line is that writing a business plan can feel overwhelming, but with the right approach and attention to detail, you can create a document that not only articulates your vision but actively works to make that vision a reality. It’s a living, breathing narrative that outlines your business’s course of action, and should be treated with care and enthusiasm.

Melissa Houston, CPA is the author of Cash Confident: An Entrepreneur’s Guide to Creating a Profitable Business . She is the founder of She Means Profit, which is a podcast and blog . As a Finance Strategist for small business owners, Melissa helps successful business owners increase their profit margins so that they keep more money in their pocket and increase their net worth.

The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever.

Melissa Houston

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How much does a business plan cost?

entrepreneur assessing the cost of writing his business plan

You need a business plan and are wondering how much creating one costs? 

You’ve come to the right place: in this guide, we’ll look at the factors that influence the cost of a business plan. 

This will help you figure out exactly how much you should pay for a business plan software , writer, or even a template. So, let’s get started.

In this guide:

What are the factors that influence the cost of a business plan?

How much does a business plan software cost, how much does a business plan writer cost, how much does a business plan template cost.

  • The final verdict

First, let’s agree on the scope. In this guide we’ll look at the cost of putting together the business plan itself and exclude the costs associated with preparatory research. 

There are a number of things you need to do before you begin drafting your business plan: gathering data, assessing budget lines, and iterating on multiple scenarios to find the best strategy for your business. 

Needless to say, all of these things require both time and money. However, these tasks are performed before creating the business plan itself, and are therefore excluded from the scope of our guide.

Now that we know what we are solving for, let’s get to it. 

We will first look at the tasks that need to be completed to create the business plan, then we will look at tools that can be used to speed up the process, and finally at who can perform these tasks.

What jobs need to be done when drafting a business plan?

Fundamentally a business plan is composed of two main parts:

  • A financial forecast which highlights the business’ funding requirements, growth prospects, potential profitability and cash generation
  • A written presentation which presents the business operations and strategy in details, and provide the context needed to judge the quality of the forecast

Both of these parts are essential and contribute to the cost of creating the business plan. 

Let’s look at both of them in a bit more detail.

Creating the financial forecast for your business plan

A financial forecast helps assess the business’s viability. This section of a business plan contains at a minimum the following financial tables:

  • A cash flow statement - a document that details how money comes in and goes out of the business. 
  • A Profits and Loss (P&L) statement - a document that provides information about the expenses and revenues the business has generated over a given time period.
  • A balance sheet - a document that details the assets and liabilities of the business at any given point in time. 

There are two ways to create your forecast. You can either opt for that old fashioned spreadsheet method or use a financial forecasting software instead.

The main driver in terms of cost when it comes to creating your forecast is the complexity of your business. 

Modeling a simple brick and mortar business is relatively straightforward. Modeling a complex business organization with multiple processes (manufacturing, storage, distribution, etc.), lines of products and services, and locations or legal entities will require more work and, therefore, increase the cost.

Writing your business plan itself

The written part of a business plan is without any doubt the most time-consuming, and contributes to the cost of creating the plan.

The time required (and, therefore, cost) to draft your business plan will first be influenced by the size of your business. 

Your business plan includes valuable strategic and financial information. If your business has multiple locations or products and services, you’ll have more information to include. This means writing about the business as a whole will take longer, require more effort, and will increase the overall cost. 

Then comes the complexity of the industry your business operates in (or/and your business model). A business plan is argumentative and needs to demonstrate that there is a viable business opportunity to be seized by you on the market. 

To do this you’ll have to provide in-depth explanations backed by market research, so that your reader can understand:

  • What you sell
  • Who you sell to
  • Who you compete against
  • Whether the market is large enough and your business correctly positioned to compete effectively 

This is quite straightforward to do if your business operates in an industry your potential readers are familiar with. If your reader is unfamiliar with your niche, however, then you will need to do more explaining. 

Adding these details will help make sure your readers - investors or banks, usually - understand that a commercial opportunity is ripe to be seized on the local market. However, this will require time and will add to the cost. 

Justifying the amount of funding you need for your business is the last factor that can increase the cost of writing your business plan. A funding requirement of $10 million will need more explanation and convincing than that of $10,000. Needless to say that it’ll also take more time and effort. 

Now that we understand the factors that influence the cost of creating the document, let’s have a look at the tools which can be used to create a business plan.

What tools can be used to write a business plan?

There are two ways to put together a business plan: 

  • Using a spreadsheet and word processor

Using an all in one business plan software

Using a spreadsheet and a word processor.

Creating a business plan using a spreadsheet and a word processor was the way to go in the 1990s. 

However, this method is quickly falling out of fashion, and for good reasons: 

  • It’s incredibly long and needlessly complicated
  • It requires knowledge of accounting in order to create the forecast on a spreadsheets without making errors
  • Investors and banks are skeptical of figures modeled by entrepreneurs themselves on spreadsheets 
  • Formatting such a long document on a word processor takes time and effort

Nowadays, the way to go is to use an all in one business planning software.

Along with being affordable, using an online business plan software has numerous other benefits. 

Some of them include: 

Creating a financial forecast for your business plan without manual calculations

The financial forecast is the most technical part of the business plan. 

Working on this section without adequate knowledge of finance can lead to critical mistakes which endanger the business’s future. 

Making such a forecast using online business plan software enables you to de-risk the process as the calculations and accounting treatments are done for you by the software using best in class modeling assumptions.

Furthermore, good online business plan softwares, such as the one we offer at The Business Plan Shop , come equipped with scoring algorithms which help identify issues within a financial forecast (such as insufficient cash or inventory, for example). 

This ensures that your forecast is free of modeling errors, and provides reassurance to the readers that the numbers can be trusted. 

entrepreneur enquiring about the price of a business plan from a writer

Getting access to instructions and examples throughout the process  

As mentioned, creating a business plan is a complex process for those who’re not familiar with creating such documents. 

Using online business plan software allows you to have access to expert guidance as you write. 

This means your business plan will be effective and completed faster than with a word processor. 

Being able to use downloadable templates to create a business plan 

Good online business plan softwares, such as the one we offer at The Business Plan Shop, come with dozens of downloadable business plan templates you can use as inspiration to write your business plan. 

Being able to look at concrete examples of business plans helps avoid writer’s block and speed up the writing process, thereby reducing the overall cost of putting the plan together.

Saving time on formatting

Good online business plan softwares, such as the one we offer at The Business Plan Shop, also come with professionally designed themes and color schemes which enable you to quickly get a stunning document matching your brand colors, while delegating the bulk of the formatting to the software.

Software also automatically integrates your forecast into the document, saving hours of manual formatting compared to using word processors. 

done for you formatting helping reduce the cost of your business plan

Now that we understand what tools can be used, let’s have a look at the last factor that influences the cost of creating the business plan: the person writing the document.

Who’s writing the business plan?

No matter what tool you use, writing a business plan is time consuming and the cost per hour of the person doing the actual writing will have a serious impact on the overall cost.

Here you have two options: either do the writing in-house using your team’s time, or outsource it to a professional business plan writer .

Outsourcing is usually much more expensive than doing the writing in-house as you have to cover the writer’s time, software, marketing costs, and profit margin. But it frees your team’s time which can be used elsewhere.

Now that we’ve covered the factors that influence the overall cost of a business plan, let’s have a look at the concrete price of the most popular options.

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Using online software to create a business plan is undoubtedly the best approach, and you’ll probably end up paying for software anyway - whether you pay for software yourself or the software’s cost is included in your business plan writer’s fee.

There is a common misconception that business plan software might be quite expensive. However, that’s not the case with our online business plan software. 

As a publisher, The Business Plan Shop is committed to leveling-up the playing field between small businesses and large corporations by making our solution affordable to businesses of all sizes.  

You might think we’re a bit biased when it comes to talking about our own pricing. But you’re not bound to take our word for it: see our prices for yourself .

If you’re thinking of outsourcing the writing of your plan your next option will be to hire a business plan writer. 

However, you need to know that when you hire a writer to draft a business plan, the cost of the plan will depend on the factors we’ve mentioned earlier in this guide. 

In addition, the pricing structure for writing the business plan varies among writers: 

  • Hourly pricing - the writer charges a fixed hourly rate for their services. The hourly rate is multiplied by the hours they spend working on your business plan. 
  • Fixed pricing - in this structure, the writer will charge a fixed price based on creating a business plan. The price may depend on the length, level of details, and complexity of the document. 

While getting a fixed price is easier for budgeting purposes, you need to remember that you get what you pay for. 

Business plan writing is a for profit activity, which means that if the price seems low, then there is probably a catch. The writer might either be inexperienced (a business student for example), or take shortcuts and not spend enough time on your document, or the result might be incomplete (only include a P&L in your forecast for example).

If you are writing a business plan to secure funding, you also need to remember that investors want their money to be used to grow your business, not wasted on consulting fees. So the amount you spend on your business plan needs to be reasonable in relation to the amount of financing you are looking for.

For example, if you are trying to secure $100k and spend $10k on business plan writing services and $10k in legal costs, then you’ve wasted 20% of the capital you are trying to secure, which will not impress investors.

Finally you also need to remember that outsourcing your plan is not a completely hands-off process. You still need to provide the writer with the inputs and the research materials needed to write your plan.

You are the only one who knows: how your business operates, what strategic and commercial actions have been planned, and how much sales are expected, and what employees are paid.

So, while we are discussing the amount spent on the actual business plan writing fee, it’s not a total cost by any means, nor a like-for-like comparison with the cost of using software discussed above.

With that in mind, let's look at how much hiring a writer would actually cost. 

How much would a business plan writer cost per hour? 

The hourly rate for a business plan writer is usually around $100 to $300. This might not seem that much at first. However, you must understand that a minimum of 20 hours is usually required to create a business plan. 

So, if your business plan writer charges $100 per hour and works for 20 hours, you’ll pay $2,000 for the document. If they charge $300 per hour, you’ll pay $6,000. 

However, these are just for simple business plans. Depending on your business size and the complexity of your industry, the total price might end-up being much higher.

Another factor is the amount of revisions needed on your business plan. It’s quite common for your plan to require several updates as you gain more information on your market conditions and feedback from lenders and investors.

When you use hourly consultants these revisions can quickly add-up as you have to pay extra for them.

How much would fixed business plan writing services cost? 

When it comes to fixed pricing, the actual cost may vary from one writer to the other. 

However, the price is generally based on their years of experience, level of expertise, and the amount of work they put in. 

Packed-based pricing service might start around $2,000. However, you’ll only get basic-level business plans at such a price. 

If you need a complex business plan with in-depth market analysis, detailed plans about business operations, and three to five years of financial projections. Package services offering such business plans might cost as much as $30,000. 

Considering these prices, it’s safe to say that you should only opt for this approach if you aim to secure a significant amount of funding. 

If you’re in the starting phases of your business, it is better to use online business plan software instead. The money you spend hiring a writer can be used for other business operations such as marketing and product development. 

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

The Business Plan Shop's Business Plan Templates

The last alternative to write your business plan at a low cost is to use an Excel and Word business plan template.

Most people often think a business plan template will not cost anything at all. They’re right to a certain extent. 

You can find loads of free business plan templates on the internet, but here also: you get what you pay for. These free templates are usually either: very basic, not properly maintained and outdated, or prepared by unknown “experts” who don’t seem to grasp the basic principles of accounting.

The cost of some business plan templates might go to $300. These templates are more detailed. In addition, some of these paid templates might even have visual aesthetics making them more presentable. 

Before you opt for this approach, you need to understand that these are just templates. This means they’ll provide you with a structure and format. However, you’ll still have to do all the work yourself. 

In comparison to using online business plan software, templates are more expensive and extremely low value for money. Furthermore, using a template still requires you to have a certain level of expertise and is an approach that’s not free from error. 

The final verdict 

When it comes to creating a business plan, you have three options: online software, a business plan writer, or templates. 

Professional software usually offers the best return on investment. Templates are low value for money and should be avoided. And writers can be worth it, if you intend on raising a significant amount of capital. 

Also on The Business Plan Shop

  • Business plan vs budget: what's the difference?
  • Do I need a business plan? Your questions answered

Know someone who wants to create a business plan? Share this guide with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How to select and set up business premises.

Illustration of office building with the headline BUSINESS PREMISES in black font.

One of the most exciting aspects of starting a new business is often setting up a physical, brick-and-mortar location for your new company to call its home. That’s why we’ve created this handy guide to tell you all about how you select and set up business premises, as well as the different options you might want to explore.

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In this day and age, not every company actually needs a physical location that people can visit regularly. However, a huge number of business owners continue to find the process of opening up premises enthralling.

After all, not only does setting up business premises enable you to take a huge, tangible step towards achieving your business ambitions, but it also allows you to create a new and very public face for your business.

Why is it important to set up business premises?

Various companies elect to set up their own business premises for a variety of reasons. Your own reasons will depend entirely upon your business plan and the type of company you’re envisioning. So, before you start shopping around for potential workspace, you should always brainstorm what you could hope to achieve when you set up your premises.

You might need warehouse space in order to manufacture products, retail space to sell products directly to customers, office space to offer business services, and house staff workspace, or you might simply want a bit of space to physically separate your new company from your personal life. After all, most of us don’t like taking work home – which is 100% unavoidable if you’ve set up your new company in your garage.

Draw up a list of pros and cons

When in doubt, produce a detailed pros and cons list, consult friends and family, and ask anybody you already know in the industry. If you can avoid opening business premises, you will save a whole lot of money on running costs. But if you think your business might benefit from opening up a brick-and-mortar location, then the overheads associated with that location are normally outweighed by all of the other potential benefits.

Perhaps that’s why there are still a huge number of UK businesses opting to invest in brick-and-mortar premises in order to attract footfall. According to PwC’s Total Retail Survey 2017 , some 59% of consumers say they want an inviting ambiance when they shop – and 37% of businesses are responding in kind by either expanding or creating new in-store experiences for members of their target audience.

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But let’s not get ahead of ourselves, here. Before you start dreaming up fantastic window displays and immersive customer experiences, you’ve got to do some level-headed research about what it is you’re looking for, when you need it for and how much you should be paying for it.

How do I research and price workspace?

When conducting research into the type of premises that’s perfect for your company, you should always start out by creating a wish list.

After figuring out what it is you need your business premises for, you’ll need to work the numbers and develop a ballpark figure in terms of how much you’ll be able to spend on commercial rent or purchasing a business property. Just like paying rent for accommodation, most commercial or retail space can be paid either monthly or multiple times throughout the year – for example, quarterly.

Create a budget

Based on your projected income, how much do you think you’ll be able to spend renting or purchasing a property without putting a substantial dent in your income?

Combined with rent or property purchase, premises-based overheads like utility bills and insurance form the second largest overhead most UK companies experience. For reference, staff wages usually form the biggest company overhead.

But that’s not all. You’ll also need to take into consideration having to pay a deposit, local authority business rates, and any potential service charges. For example, you might need to completely renovate a workspace or shop to realise your vision or make it habitable.

After you’ve developed a ballpark figure relating to how much you’re allowed to spend on a monthly or annual basis, think about the other considerations specific to your company that will impact your choice of workspace.

What space is right for your business?

How much space do you actually need? How much room do you need for equipment? How much power will you need? How many employees do you predict will work in this space, and do you need space for a shop floor? Do you want the flexibility of an open plan, or do you want your premises split up?

Depending upon your industry, there might even be legal health and safety requirements you must fulfil.

price of premise in business plan

Potential requirements could relate to the well-being of staff members you’re employing, customers, or accessibility requirements relating to individuals living with a disability. That could mean setting up shop on a ground floor, or setting up multiple entrances.

If you need help getting started identifying potential legal requirements, the UK Government’s Health and Safety Executive has a checklist online

The best way to figure all this is out is by drafting a property spec illustrating your dream location, why it’s perfect, and – crucially – what in your wish list you can live without.

Location, location, location…

The next step is location, location, location. In your market research , you should have developed an idea of who your customers are, where they’re currently shopping and how they get there. When shopping around for your own brick-and-mortar location, you must bear all that in mind.

Do you need to be close to public transport? How close is the nearest competitor, and will that help or hurt your business? How remote is too remote, and what sort of infrastructure or logistics will you need in place for deliveries?

And at a far more material level, will the neighbourhood property is in impact the way customers or potential clients view your business? Again, conduct research about your target market, what they like to see in a business, and what they don’t. If you’ve found a cheap deal with the perfect amount of space, but that space is in a run-down neighbourhood far away from where your customers are shopping, you should probably sacrifice price over image.

Once you’ve figured out your budget, and property specs and understand what’s expected of your business from a legal standpoint, you can start hunting. Property websites, trade publications, and local media outlets are usually the best place to commence searching.

Just remember: when in doubt, always explore your options and avoid jumping up at the first opportunity you encounter. Don’t be afraid to ask developers or estate agents tricky questions, and take your time before entering into a service agreement. This is a big step in your company’s development, and you don’t want to rush into a bad deal.

What are business incubators and accelerators?

The vast majority of small businesses in the UK choose to set up premises or business locations independently. That being said, there is a wide range of organisations across the country that offer start-ups and first-time business owners a creative space to develop their business and start trading.

One of these types of organisations is called a business incubator. Incubators are essentially groups that offer small businesses shared working space. By setting up a shop in a shared space occupied by multiple enterprises, you’ll be able to join a collaborative work culture that is designed to try and generate new ideas and innovation.

Business incubators also generally offer various types of funding support and business mentoring services – as well as learning opportunities and access courses for first-time business owners. Some incubators in the UK include built-in support on marketing and analytics, access to professional accounting services, and legal advice. Several have been set up in coordination with UK universities, which means business tenants enjoy discounted courses or access to library resources.

price of premise in business plan

In order to gain tenancy at a business incubator, you will normally be asked to fill out an application. This could include submitting a business plan. Just like organising workspace independently, you should also bear in mind all of your business premises requirements and what was on your wish list before you apply to join an incubator. In particular, think about whether compromises on location or space will directly impact your trading.

Incubators aren’t the only organisations in the UK that offer support services and funding opportunities to new UK companies. You could also explore accelerators.


Accelerators are organisations that work by enrolling business owners in a time-limited programme that offers them mentoring, supply chain resources, and various types of office space.

How is this different from a business incubator? Accelerators normally ask for equity in your start-up in exchange for offering you access to capital or investment. That means your business will start off with an all-inclusive workspace, access to financing, and a brilliant start in life – but you may be asked to sign over shares or a stake in your business as payment for that brilliant start.

Because a lot of business incubators are associated with UK universities, they actually enjoy various degrees of charitable status. In turn, you won’t normally be expected to hand over a piece of your business in exchange for workspace and support – but you won’t get the same level of services at your new premises, either.

It’s worth pointing out that neither incubators nor accelerators are typically permanent homes for a business. Tenancies at incubators are often limited to a couple of years, and accelerators sometimes only house your business for a matter of months.

As with every other aspect of hunting for your permanent company home, you’ve simply got to do your research. If this sounds like something you’re keen to explore, the UK Government has conducted all-encompassing research on the country’s accelerator and incubator scene – including where you can find them.

The bottom line

At the end of the day, the type of premises your company needs in order to thrive will depend on your own, bespoke requirements. Start by figuring out whether you even need a brick-and-mortar location, and then proceed by developing a wish list. You’ve also got to do lots of research and come up with a list of any legal requirements you’ll need to fulfil by opening up premises.

Finally, if your company is totally new, it could be worth checking out the UK’s thriving incubator and accelerator scenes. These organisations aren’t for everyone, but they might be able to offer your company the perfect temporary home – along with some fantastic services you might not otherwise have access to.

Just remember to stay true to your company’s needs, and your vision for how that company should progress and thrive. This is a huge step in your company’s development, and it’s incredibly exciting. Make the most of it.

John Carpenter 1st Formations.

Author:  1st Formations

John Carpenter is Chief of Staff at 1st Formations. He is in charge of ensuring all departments meet their targets to allow us to provide all of our customers with an exceptional level of service. Outside of work, John spends time with his wife, young son and cat. He enjoys reading history books and going to rock gigs.

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The Price Proposal That Won't Scare Customers Away [Template]

Jay Fuchs

Published: November 19, 2021

Handing over a price proposal to a potential client is a nerve-racking moment. Price things too high, and potential clients cut and run. Price things too low, and you leave money on the table.

Price proposal template

Gauging the right price is one of the trickiest parts of business. But there's good news — a successful price proposal isn't always about what you charge, but also how you present your prices.

Let’s explore what price proposals are, how to determine a fair price point for them, and how to write them effectively.

Download Now: Free Sales Pricing Strategy Calculator

What is a price proposal?

A price proposal is a contractor’s preliminary bid for the price for a potential customer’s job. It’s a document that identifies a single price the contractor will charge after calculating the potential costs they will incur as a result of completing the customer's project.

It’s important to bear in mind that a price proposal is not an estimate. An estimate is a rough, educated guess about how much a project would potentially cost a prospect. A price proposal is a detailed document containing accurate quotes for the price of raw materials, labor, taxes, and other general overhead.

It also features a contractor’s proposed markup and is often submitted in competition with other contractors vying for the same job.

Ideally, a price proposal is thorough and comprehensive in covering any potential costs that may arise throughout the course of completing the project. It should also strike a balance between value for the customer and financial feasibility for the contractor.

As a contractor, you want to be able to demonstrate every cost you detail in the proposal is valuable and relevant to your prospect’s needs. In some cases, you might have to offer a competitive deal or rely on an exceptional reputation to differentiate yourself from the competition.

At the same time, your price proposal still needs to be worth it for you. Don’t drastically undersell yourself for a contract that ultimately won’t be worth your time financially. Understand your customers’ budget and see if a potential contract is viable for you or your company.

price of premise in business plan

Free Sales Pricing Strategy Calculator

Determine the best pricing strategy for your business with this free calculator and template.

  • Cost-Plus Pricing
  • Skimming Strategy
  • Value-Based Pricing

You're all set!

Click this link to access this resource at any time.

How can I determine a fair price point?

When it comes to pricing products, you have a dozen ways to crunch the numbers. But depending on your industry, it may take some trial-and-error to land on the best strategy. Here are three common ways to gauge the right price.

1. Value-Based Pricing

One of the best ways to gauge your potential price point is through value-based pricing . It’s a pricing strategy used by businesses to price products and services at a rate that they believe consumers will be willing to pay. A value-based pricing model doesn’t just consider production costs with a fixed markup tacked on.

Getting a feel for that figure can be a difficult process. It takes customer analysis , competitive analysis , and market research to really nail down what you should be charging for a particular service.

For instance, say you represent a civil engineering firm vying for a contract to install a new septic system at a city park. You estimate the system will take ten days to install at a cost of $2,000 per day. How do you go about determining a price for your proposal? And how do you decide whether to take the job or not?

Based on prior outreach to previous customers to see how much they would pay for similar services, market research that speaks to how much new customers might pay for the same job, and competitive analysis to see what your competitors are charging, you determine your competitive value for this project is $25,000.

If a $5,000 profit is worth it to you, and you can demonstrate your services are worth $25,000 to your prospect, that’s the price you should lead with. Don’t be quick to rashly undercut that price in order to try to win business. That could come off as cheap and undermine your prospect's faith in or respect for what you have to offer.

Value-based selling may be a complicated process, but it’s the best way to determine a reasonable, effective price for your services. To learn more about it, check out this article .

2. Competitive Pricing

As the name suggests, competitive pricing involves setting prices relative to those of your competition. Once you know what they're charging, you can set lower, similar, or slightly higher prices in response.

If you opt to sell at a higher price than the competitors, make sure it can be justified in some way — whether that's with a money-back guarantee or a higher-quality product or service.

Let's look at an example. Suppose you're the owner of a local bike shop that sells a mountain bike for $600. You check the competitive landscape and discover the big-box retailers like Target and Walmart sell the same bike for 15% less. But this is to be expected — they have more purchasing power to buy at a greater volume.

Next, you check the specialty bike shop in your area. They sell the mountain bike for 15% more. However, after more research, you discover that they include a custom bike fitting with each sale, which is a service you don't provide. This justifies the price increase.

Lastly, you check the local bike shops that are of a similar size to yours. You find they price the mountain bike similarly. With this information, you can safely assume the price is fair in relation to your closest competitors.

Of course, competitive pricing has its drawbacks. Most notably, if you only focus on competing with the other players in your market, you may not cover production and overhead costs. This is why competitive pricing should be part of your strategy instead of the central focus.

3. Cost-Plus Pricing

Cost-plus pricing is one of the simplest ways to determine prices, and many businesses use it as their primary pricing strategy. It focuses on the cost of producing your goods or services ( COGS ).

With this method, apply a fixed percentage to your production or service cost when calculating prices. For example, let's say you sell wireless headphones. The headphones cost $50 to produce, and you want to make a $50 profit on each sale. Using the cost-plus pricing strategy, you would set a price of $100, which is a 100% markup.

Using the cost-plus pricing, you can guarantee that your operating and production costs are covered. It works well for businesses that sell physical products, or when the competition uses the same model. But it's not the best fit for service-based or SaaS companies whose products typically offer more value than the cost to produce them.

Another disadvantage is that it doesn't factor in the customer's willingness to pay or the perceived value of your products. These are two important influences to consider when setting prices.

Price Proposal Writing Strategies

1. use the bundle pricing technique..

What's a McDonalds burger without fries and a drink? Or a phone without a data plan? These are examples of price bundling — and it's become so commonplace that we rarely notice.

Bundling pricing pairs two or more complementary products or services together and sells them for a single price. In other words, you sell more value in a single purchase than if each item in the bundle was purchased separately. It’s a smart way to upsell and cross-sell your offerings to benefit your customers and revenue goals.

If you want to try the bundling technique, ask yourself these questions first — do I have enough products/services to bundle? Would customers prefer to buy things separately? And do customers truly need all the bundled products?

Price bundling can seal the deal for many potential customers. But it requires some serious thought to execute — so consider whether your business is the right fit for this technique.

2. Present a benefit or solution.

Here's the problem with price proposals — they communicate the price, not the value. To get around this, try presenting benefits or solutions in your proposals.

Let's look at an example. Suppose you design websites. Instead of simply compiling a list of prices for your proposal, consider describing the benefit of each item. Take a look at it in action:

  • Website design, $8,000

We'll strategically overhaul the content, structure, design, and navigation of your website. Then, we'll integrate an e-commerce shopping cart to your website to funnel your leads into sales .

  • Logo, $3,000

We'll refresh your logo with a new design that not only compliments your overall brand aesthetic, but also appeals to your target audience.

This proposal does a great job conveying your value, expertise, and competency, which is far more appealing than a spreadsheet of numbers.

3. Offer multiple options or packages.

By listing only one pricing option in your proposal, potential clients may feel cornered into giving a yes or no answer. Instead, you can offer more flexibility by presenting multiple options or packages. The best way to do this is with tiered pricing.

Potential clients can weigh different tiers or packages, giving them more power and flexibility in the decision. But for it to work, the prices in your tiers should make sense from a value perspective— and potential clients should know exactly what to expect from each option.

For example, you may present clients with a value, standard, and premium package. The value package is enough to meet their minimum requirements. The standard package closely aligns with their budget and meets their goals. And finally, the premium package provides all the bells and whistles but extends beyond their budget.

To state the obvious, customers like choice. But it's also worth remembering that too much of it can have a negative effect. If you've ever been to a restaurant with a 10-page menu, you know what I mean. Try sticking with two or three options. Any more than that, and you run the risk of overwhelming the prospect.

Price Proposal Template

You can download this template to help guide you through the price proposal writing process here.

free price increase letter template

Though writing price proposals can be tedious, it's an essential part of being a contractor. Hopefully, with a better understanding of what these documents are and how to approach them, you can make the process of writing them smooth, efficient, and painless.

Editor's note: This post was originally published in January, 2020 and has been updated for comprehensiveness.

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7 Pricing Strategy Business Plan Tips and Its Importance

If you price your offer too low, you will lose money. If you overprice it, you may lose sales that could have made your year. Finding the best price entails deciding on a pricing strategy that is appropriate for your company’s situation. The following article explains pricing strategy business plan and its importance .

Read also: Top 5 Business Strategy Examples to Increase Sales Faster

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Why Determining Pricing Strategy Is Important for Business?

price of premise in business plan

A business plan is a written document that details a company’s core business practices, such as products and services offered, marketing, financial planning and budgeting, and pricing strategy. This business plan can be very detailed, outlining every aspect of the company. For start-ups that want to be as agile as possible, it can be very short and lean.

This plan can be used for both external investors and relationships as well as internal purposes. Internally, a business plan can be useful because it ensures that all decision makers are on the same page about the most important aspects of the business.

Read also: 5 Top Elements of a Business Plan That Determines Success

A business plan can be long and detailed or short and lean, but it should always have a clear vision for how pricing will be handled. A pricing strategy marketing ultimately determines the profit margin of your product or service as well as the amount of revenue generated by the company. Pricing is also very important, according to extensive research of consulting firms. 

A 1% increase in price can result in an 8% increase in profit margin. That is a prime business plan pricing strategy example of how minor changes can have a significant impact!

Each business plan should clearly include a section on pricing strategies. The level of detail and complexity in this pricing strategy should be determined by each individual business and the challenges in the business environment. But businesses should consider some factors when developing their pricing strategy.

Pricing Strategy Business Plan

When making a marketing plan in business plan, you also need to consider pricing strategy marketing plan. Choose the most suitable marketing plan price. There are a lot of marketing plan pricing strategy examples available on the internet which can be used as a reference. Here are pricing strategies for business plan.

Price Skimming

price of premise in business plan

Skimming is the practice of initially charging a high price for a product and then gradually lowering the price as more competitors enter the market. This type of pricing strategy for new business is ideal for companies entering emerging markets. 

It allows businesses to capitalize on early adopters and then undercut future competitors as they enter an already-developed market. A successful skimming strategy is heavily dependent on the market you want to enter.

Pricing for Market Penetration

price of premise in business plan

Pricing for market penetration is the inverse of price skimming. Instead of starting with a high price and gradually lowering it, you take over a market by undercutting your competitors. When you have a solid customer base, you can raise your prices. Netflix is an example of penetration pricing: it enters the market at a low price and gradually raises prices.

Many factors go into deciding on this strategy, such as your company’s ability to take losses upfront in order to establish a strong footing in a market. It is also critical to cultivate a loyal customer base, which may necessitate additional marketing and branding strategies.

Premium Pricing

price of premise in business plan

Premium pricing is reserved for businesses that create high-quality products and market them to rich consumers. The key to this pricing strategy is to create a high-quality product that customers will regard as valuable. To appeal to the right type of consumer, you’ll most likely need to develop a “luxury” or “lifestyle” branding strategy. There are numerous instances of premium pricing strategies, such as Nike, Rolex, and Tesla.

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Economy Pricing

price of premise in business plan

An economy pricing strategy focuses on customers who want to save as much money as possible on the product or service they’re buying. Big-box retailers such as Walmart and Shopify are prime business plan pricing examples of economy pricing models. 

For example, Shopify distinguishes itself through the features it offers users and the prices it charges for them. Customers can choose from three thoughtfully priced versions of their product, each with a number of customizable and flexible features. Adopting an economy pricing model, like premium pricing, is determined by your overhead costs and the overall value of your product.

Pricing for Bundles

price of premise in business plan

Bundle pricing occurs when a company groups several products together and sells them for less money than they would individually. Product mix pricing strategies are an effective way to move a large amount of inventory quickly. Profits on low-value items outweigh losses on high-value items included in a bundle in a successful bundle pricing strategy. 

Pricing Based on Value

price of premise in business plan

Premium pricing is similar to value-based pricing. A company’s pricing in this model is based on how much the customer believes the product is worth. This pricing model is best suited to merchants who sell unique products rather than commodities.

How do you know how much a customer thinks a product is worth? It’s difficult to get an exact price, but you can use marketing techniques to understand the customer’s point of view. During the product development phase, collect customer feedback or hold a focus group. Investing in your brand can also assist you in increasing the “perceived value” of your product.

Dynamic Pricing

price of premise in business plan

Dynamic pricing allows you to adjust the price of your products based on market demand at any time. The surge pricing implemented by Uber is an excellent pricing example business plan of dynamic pricing. 

A customary pricing example of Uber during low seasons can be a very cost-effective option. However, if a rainstorm hits during morning rush hour, the price of an Uber will skyrocket due to increased demand. Pricing strategy for small business can also do this, depending on seasonal demand for your product or service.

Pricing strategies must be included in your business plan. Having a clear vision for how you will price your products and services allows you to maximize profit margins and revenue. 

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Enhancing Your Business Premises: the Importance of Good Business Premises

Many business owners in the business world are searching for ways to enhance their business premises. Good business premises are important because they can help a business retain loyal customers and attract new ones.

Most businesses in America have poor business premises, which means they aren’t getting the most out of their operations. This blog post will discuss how business owners can use good business premises to their advantage and why having them is so important.

Why Good Business Premises Matter

Business premises have a significant impact on your business. Having good business premises can help you thrive, whereas bad ones can hinder your growth. The truth is that many businesses do not put enough thought into their office space and end up paying for it later on down the line! Below are the reasons why good business premises matter:

  • Business premises can impact business success: Contrary to popular belief, business premises affect the employees and staff. The ambiance of your office space will also affect customers. A well-designed business with good business premises often has a higher conversion rate for customer prospects than one without because they are more likely to see it as trustworthy or reliable, which can lead to business success.
  • Employee productivity is affected: A lack of good business premises will, in turn, affect the employees’ or staff’s productivity and performance at work and their happiness levels. Think about all the distractions that could impair their ability to be productive. For example, a noisy office space with no soundproofing or ambient noise control will make it hard for the employees to concentrate. Therefore, employees will end up compromising their productivity because of the unideal business premises.

Customers will not want to come to unappealing business premises: People’s first impression of a business is usually based on its premises, so customers will likely avoid it and go elsewhere if it does not look trustworthy or reliable. The result? Less business for the business and less income, which could eventually lead to closure — something nobody wants!

Cost of business: A business with good business premises is more likely to succeed and thrive, which will impact the cost that a business pays. For example, if you run an office space rental business, your costs will be lower as business premises will be more appealing to potential tenants . Therefore, it is worth it to invest in good business premises.

open office design

How to Achieve Good Business Premises

Most business owners don’t think about the importance of good premises until it’s too late. Good business premises are important for several reasons, including increased productivity and employee satisfaction. Below are the ways on how entrepreneurs can achieve the best business premises:

  • Investing in space: Spacious business premises allow employees to focus on their specific business tasks and gives them ample room for creativity. Having enough space in the office is important because it has a positive impact on business productivity.
  • Investing in aesthetics: Installing good business premises designs such as landscaping, a coffee machine, or even artwork can boost morale among the business owners and staff members. This is because business premises aesthetics could make clients believe that the business is worth investing in. In addition to this, a good ambiance will make a business appear more professional and welcoming compared to businesses that have not invested in good business premises.
  • Taking advantage of natural lighting with windows: Natural light increases employee happiness levels because they can enjoy the natural light and get fresh air. In addition, business premises with windows allow employees to be more productive due to increased daylight levels that help them stay awake longer than if they were in an office without any windows. You can use materials like polycarbonate sheets  to make windows more energy-efficient and raise the business’s environmental awareness by ensuring they are installed properly.
  • Keeping the office clean and organized all the time: This is very important because business premises that are neat and clean generally have a positive business vibe. This will help employees focus more on their work and inspire them to be more productive every day.

Investing in Business Premises

Working on your business’s premises is a worthy investment because it promotes business-building and productivity. Many services focus on the business premises, from designing to repairing them or even giving advice on how they can be improved so it would be great to consider hiring these professionals for your business needs. The more appealing your business premises are, the more likely your business will succeed.

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Changes to Dynamics 365 Business Central on-premise licensing: What you need to know

Changes to Dynamics 365 Business Central on-premise licensing: What you need to know

Apr 11, 2023

Microsoft announces changes to Dynamics 365 Business Central on-premise pricing and licensing

Dynamics 365 Business Central can be deployed either on-premise or in the cloud, with most deployments of Business Central being in the cloud. Microsoft recently announced major updates to the pricing and licensing policies for the on-premise version of Business Central, marking a significant shift in the way customers can license and deploy this system. These changes are part of Microsoft’s ongoing efforts to modernize licensing for on-premise solutions and bring greater simplicity and choice to customers. In this blog post, we will outline the key dates and what these changes mean for customers.

  • October 1, 2023 – Price increases for subscription and perpetual licenses of on-premise Business Central. Additionally, Enhancement Plans and Advantage Plans will increase by 1 percent
  • April 1, 2025 – Perpetual licensing will no longer be available for new customers purchasing Dynamics 365 Business Central on-premises. New customers will only be able to license BC on-premises via subscription licensing.

Pricing updates

Over the next three years, Microsoft will aim to align subscription prices for Dynamics 365 Business Central on-premises with their Dynamics 365 online CSP pricing. The initial adjustment will take place on October 1, 2023, where the price of Dynamics 365 Business Central on-premises subscription licenses will increase by 4% in the United States and 10% in Eurozone and Africa. On the same date, perpetual licenses will increase by 9% in Great Britain and India, 11% in Eurozone, Denmark, and Norway and 15% in Sweden and Japan. There will be no BC perpetual license increase in the United States. 

Additionally, Annual Enhancement plan (EP) and Advantage Plan (AP) rates will increase by 1 point for renewals and new sales. The rate for a three-year Advantage Plan will also increase from 57% to 60% of the protected price list (PLP).

Licensing updates

Effective April 1, 2025, new customers purchasing Dynamics 365 Business Central on-premises will be limited to subscription licensing as perpetual licensing for BC on-premises will be discontinued. This means that new Dynamics 365 Business Central on-premise customers will not be able to select perpetual licensing. Instead, they will need to subscribe to the solution on a recurring basis with the subscription licensing model.

This announcement will not affect existing Business Central on-premises customers using perpetual licensing. With an active enhancement plan, these customers will continue to be able to add functionality or users to their perpetual licenses. The on-premise version of Dynamics 365 Business Central will still be available for customers who need it, however Microsoft is encouraging businesses to consider moving to the cloud, which it believes is the preferred approach for most customers.

Want to learn more?

Microsoft’s licensing and pricing updates represent a significant shift towards the subscription-based model for licensing Dynamics 365 Business Central on-premises. These updates may cause some confusion among customers so Microsoft recommends that customers work with a certified Microsoft partner to navigate these changes and to determine the best course of action for their business. Additionally, the  right Dynamics 365 Business Central partner  can provide additional insight, support, and enhancements to your system.

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Planning Premises: Meaning, Process and Types

price of premise in business plan

After reading this article you will learn about:- 1. Meaning of Planning Premises 2. Process of Planning Premises 3. Types.

Meaning of Planning Premises:

The process of planning is based upon estimates of future. Though past guides the plans in present, plans are made to achieve the goals in future. Therefore, forecast of future events leads to efficient plans. Since future events are not known accurately, assumption is made about these events. These events may be known conditions (changes in the tax laws as announced in the budget) or anticipated events which may or may not happen (entry of competitor in the same market with the same product).

Though these assumptions are primarily based on scientific analysis and models, managers also use their intuition and judgement to make assumptions about future events. Identifying the factors (assumptions) that affect plans is called premising and the methods used for making premises are called forecasting.

The forecast or the assumptions about future which provide a base for planning in present are known as planning premises. They are “the anticipated environment in which plans are expected to operate. They include assumptions or forecasts of the future and known conditions that will affect the operation of plans.


The estimates about future markets, consumer preferences, political and economic environment are the planning premises on which business plans are developed but if plans are made and their efficiency is judged in terms of future market demands, revenues and costs, they are mere expectations of plans. Such plans provide planning premise for other plans.

Process of Planning Premises :

Wrong premises can lead to failure of plans.

Since environmental factors affect business plans (also non-business plans) to a great extent, premises must be developed rationally and scientifically through the following process:

1. Selection of the premises:

Though there are innumerable factors in the environment, all of them do not affect operations of the business enterprise. Top managers should select the premises which have direct impact on developing organisational plans. There are many factors that affect business decisions, some of which are general in nature while others are selective.

The general factors affect all the firms alike but specific factors affect different firms differently. While developing premises, organisations should focus more on specific factors (or its micro environment) as they have immediate impact on making the plans.

In order to analyse the factors that affect developing the premises, two factors have to be taken into account:

I. The probability of impact of factors:

If represents whether the factors under study affect or do not affect the planning premises. This probability can be high, medium or low.

II. The degree of impact of factors:

Given the factors which have the probability of developing planning premises, it represents the degree to which these factors affect the planning premises. This can also be high, medium or low.

Based on these two broad factors, nine different combinations can be formed which broadly result into four categories:

1. Critical factors

2. High priority factors

3. Factors to be watched

4. Low priority factors

1. Critical factors:

These are the factors with:

(i) High probability of impact, and

(ii) High degree of impact.

These factors must be thoroughly analysed as they significantly affect making of the planning premises.

2. High priority factors:

Though these factors are not as important as critical factors, they rank high in priority in developing the planning premises.

(i) Medium probability of impact, and

High degree of impact

(ii) High/Medium probability of impact, and

Medium degree of impact

These factors also must be thoroughly analysed by managers as they significantly affect the making of planning premises.

3. Factors to be watched:

(i) Low probability of impact, and

Thus, while these factors may not affect the planning premises, but if they affect, their degree of impact is high. A close watch must be kept on these factors so that their impact may not be ignored.

4. Low priority factors:

These factors rank low in priority in affecting the planning premises as either their probability of impact is low or the degree of impact is low.

(ii) High/Medium/Low probability of impact, and

Low degree of impact.

These factors do not significantly affect making of the planning premises and, therefore, do not require extensive scanning by managers.

The factors covered under various categories are not generic and determination of these factors depends upon the judgement of managers, nature and size of the organisation and nature of environment in which the organisations are operating.

Degree of Impact of Factor

2. Development of alternative premises:

Since factors affecting organisational plans cannot be perfectly predicted, managers should develop alternative premises i.e., plans under different sets of assumptions about the future events. This helps in developing contingent plans. Contingent plans are the alternative plans for alternative premises. Since the premises keep changing, some slowly and some fast, to keep pace with such changes, alternative plans must be developed.

As developing too many plans is costly in terms of time and money, the following factors should be considered in developing contingent plans:

(a) They should be made for those factors which are important for corporate decisions like economic factors, competitors’ policies, consumers’ tastes etc.

They should be made in the order of priority of factors like:

(i) Critical factors,

(ii) High priority factors,

(iii) To be watched factors,

(iv) Low priority factors, and 

(b) They should be made on the basis of cost-benefit analysis, that is, the alternative whose cost seems to be more than its benefits should be dropped out.

(c) Though maximum details should be covered in each contingency plan, all the plans cannot cover extensive information. Contents or details should depend on the order of priority of plans. Important plans made for critical factors should cover maximum information while plans for low priority factors should not contain extensive details as the degree of their impact on organisational plans is low.

Collecting details or information about the factors that affect the premises is based on forecasting techniques. The choice of technique (simple or complex) depends upon the need of the organisation, resources, the period in which information is collected, the sample size, to what degree is the sample representative of the general population etc.

Every technique has costs and benefits and a thorough cost-benefit analysis should be undertaken before adopting a specific technique of forecasting. In some cases, this information is available through secondary sources like published journals, magazines and information agencies. The relevance of such information should be considered before using it for development of premises.

3. Verification of premises:

Planning staff at different levels of different departments makes plans according to their judgement. These premises are then sent to top executives for their approval. The premises which involve both staff and line managers are more consistent than those that are developed by executives alone.

4. Communication of premises:

After the premises are developed, they are supported by budgets and programmes and communicated to all those concerned with development of plans at different levels in different departments. Planning premises are contained in documents like environmental threat and opportunity profile (ETOP) and communicated to managers concerned. The premises, thus, help to develop sound plans followed by strategies, policies, procedures etc. which further help in effective implementation of plans.

Types of Planning Premises :

Different types of planning premises are:

1. Internal and External premises,

2. Controllable, Semi-controllable and Non-controllable premises, and 

3. Tangible and Intangible premises.

1. Internal and external Premises:

Internal premises originate from factors within the enterprise. They relate to premises about the company’s internal policies and programmes, capital budgeting proposals, sales forecasts, personnel forecasts (skills and abilities of personnel) etc. These premises may be strengths or weaknesses of the organisation.

Strength represents a positive attitude which provides strategic advantage to the company over competitors and weakness is a limitation or constraint that provides strategic disadvantage. Managers analyse their strengths and weaknesses through corporate analysis and when corporate analysis (internal) is combined with environmental analysis (external), it is called SWOT analysis (Strength, Weaknesses, Opportunities, Strengths).

External premises originate from factors outside the organisation. These are the indirect- action environmental factors (social, political, technological etc.) which affect the organisation. They are also non-controllable premises beyond the control of the organisation. The external environmental factors represent opportunity or threat to the organisation.

Opportunity is a favourable environmental condition which helps the organisation to improve its operational efficiency and threat creates risk for the company. It is the environmental challenge that weakens the organisation’s competitive strength. This is done through SWOT analysis. It identifies environmental variables which help to formulate plans and policies.

2. Controllable, semi-controllable and non-controllable premises:

Controllable premises are within the control of a business enterprise, such as, men, money, materials, policies, procedures, programmes etc. They can be controlled by a business enterprise to ensure better sales of products. Such premises are usually internal to the business.

Semi-controllable premises are those which can be partially controlled by a business enterprise like, labour position in the market, prices of the product, market share of the company etc. For instance, increase or decrease in the price of the product is neither totally controllable nor non-controllable by the managers.

The extent to which prices can be increased or decreased depends upon market sentiments, prices charged by competitors, cost structure of the company etc. Thus, change in prices can be controlled but subject to constraints of the variables that affect the price of the product. Similar is the case with change in wages paid to the labour or labour turnover (labour turnover is greatly affected by the wages offered by other companies.

Non-controllable premises lie beyond the control of the business enterprise. Wars, natural calamities and external environmental factors (economic policies, taxations laws, political climate etc.) are the non-controllable premises. These premises are usually external to the business.

3. Tangible and intangible premises:

Tangible premises can be estimated in quantitative terms like, production units, cost per unit etc. For example, production forecast and sales forecast can be expressed in monetary terms. How many units of product A can be sold in a year and, therefore, produced, how much raw material is needed for production can be estimated in units and monetary terms.

Intangible premises cannot be quantified, for example, goodwill of the firm, employer-employee relationships, leadership qualities of the managers, motivational factors that affect employees’ performance etc. Though the planning premises have been classified as above, this classification is not mutually exclusive.

Different types of premises tend to overlap each other. For instance, internal premises may also be controllable (organisational policies) and tangible premises (cost of product), external premises can also be non-controllable premises (economic policies).

External premises can also be tangible (rate of inflation) or intangible (value system of the society). Therefore, various types of planning premises have to be viewed in the context in which they need to be used in making the plans.

Related Articles:

  • Planning Premises: Meaning and Types | Management
  • Marketing Planning Premises | Planning | Marketing Management
  • Notes on Planning Process of an Organisation: 9 Steps
  • 8 Main Steps Involved in Planning Process

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Premise Business Plans Samples For Students

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WowEssays.com paper writer service proudly presents to you an open-access directory of Premise Business Plans intended to help struggling students deal with their writing challenges. In a practical sense, each Premise Business Plan sample presented here may be a pilot that walks you through the essential stages of the writing process and showcases how to develop an academic work that hits the mark. Besides, if you need more visionary help, these examples could give you a nudge toward an original Premise Business Plan topic or encourage a novice approach to a threadbare issue.

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Spotify to raise prices of plans in some markets, Bloomberg News reports

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Nelson Peltz founding partner of Trian Fund Management LP. speak at the WSJD Live conference in Laguna Beach, California

Fed has time to mull rate cut in face of 'less encouraging' data, Barkin says

The U.S. central bank has "time for the clouds to clear" on inflation before starting to cut interest rates, Richmond Fed President Thomas Barkin said on Thursday, comments that endorsed a careful approach to the start of a monetary easing cycle.

Goldman Sachs analyst impact fund competition in New York

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How to Choose a Business Premise

price of premise in business plan

Finding a perfect business premise can be a daunting task. You need to find something that meets your standards, allow room for expansion and satisfy the board’s necessities. And as you choose the premise, you need to factor in things like set up costs, maintenance and repair needs. 

There is an array of factors to consider when looking for a commercial property. These factors include: 

Property Location 

The shop location has a significant impact on your business. The site will determine business accessibility and even security. If you want a set up in a prime location, be ready for higher costs. 

You should also consider your employees. The location should allow staff members to commute easily and cheaply. More so, consider the future impact of the chosen location. 

Will the rent skyrocket in future? What kind of building are underway, and which impact can they have on traffic? The more you understand the topography of the area, the more you’ll be able to make an informed decision. 

If you want to run a successful business , you need to factor in the premises’ security. You might have what your target audience wants, but with poor security, clients will fear coming to your shop. 

Often, the security of commercial property is linked to the location. If the area is affected by crime, the insurance will consider your business as a higher risk. This means the premiums will increase. 

You’ll also incur higher costs of installing security measures such as smart locks, CCTVs, and hiring security personnel.  

Be vigilant and explore the number of crimes reported in that location. 

Rates and Cost 

It’s essential to be aware of land rates, local pay rates, rent prices, and utility bill costs. Ensure you’ll be in a position to afford the required costs regularly. 

If you’re relocating to a new office, you need new furniture, phones, cabinets, and other necessary office equipment. 

Create a list of all the supplies and equipment you need, and then prioritize the list. Once you sort the list, order the required items in large quantities for a bigger saving. 


Business competition is good because it fosters the delivery of high-quality products and services. More so, it leads to price regulations and initiates innovation. However, the proximity of your competitor’s premises might affect you. 

Working in the same location can impact your day-to-day operations. 

Should You Buy or Lease? 

The idea of buying or leasing business premises will depend on the stage you’re in the business. For a well-established company, you can either buy or rent. But if you’re a start-up renting the premises is a viable idea. 

Buying will tie you down, and it can be a hindrance when you want to expand the business . However, it gives you financial and future security. You might incur a high initial cost, but it will provide your business with long-term security. 

The Bottom Line 

Choosing the right business premises helps you operate effectively. The right location can also boost your sales. So, there you have the best factors to consider when looking for a commercial property. 

price of premise in business plan


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Rate cuts are coming: Gold prices hit a record high

  • Gold prices surged Monday to a record high of $2,265.73 an ounce.
  • The Fed's preferred gauge of underlying inflation came in as expected Friday, affirming 2024 rate-cut hopes.
  • The yellow metal is generally seen as an inflation hedge, and it trades inversely to consumer prices.

Insider Today

The price of gold rallied to another record high on Monday, following fresh inflation data from Friday that boosted rate-cut hopes . 

The yellow metal climbed as much as 1.6% to a new high of $2,265.73 an ounce.

The year-over-year index of personal consumption expenditures rose 2.5% in February, in line with economist expectations. Core PCE, which excludes food and energy prices, rose 2.8% for the month, also in line with estimates. The results have fueled anticipation that the central bank's first rate cut will come in June.

Typically, a lower-rate environment makes holding gold more alluring compared with other assets such as bonds, which yield lower returns when interest rates drop. 

Federal Reserve Chair Jerome Powell also applauded the latest US inflation data, saying it's "along the lines of what we would like to see" during his speech on Friday, which echoed his reiteration in last month's policy meeting of a rate cut for this year .

The surging bullion price was also pushed up by its robust overseas demand, as global central banks are shifting away from dollar reserves because of geopolitical risks. 

On the other hand, China's struggling stock and real-estate markets have forced many investors to pivot to the "safe haven." In February, the People's Bank of China acquired about 390,000 troy ounces of the precious metal. Overall, China's central bank now holds about 72.58 million troy ounces of gold, equivalent to about 2,257 tons.

Get the latest Gold price here.

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Disney Fends Off Activist Investor for Second Time in 2 Years

Nelson Peltz had campaigned for two seats on Disney’s board of directors, as he sought to shake up the company’s growth plan.

 Robert A. Iger, Disney’s chief executive, gesturing and speaking from a royal blue stage.

By Brooks Barnes

Reporting from Los Angeles

The activist investor Nelson Peltz and Ike Perlmutter, the former chairman of Marvel Entertainment, have failed to infiltrate Disney’s board for the second time in two years, losing a tensely fought contest for support of the company’s shareholders as part of a campaign to alter its direction.

The Walt Disney Company said on Wednesday that shareholders had voted to elect its entire slate of board nominees by a “substantial” margin — thus rejecting a demand by Mr. Peltz’s hedge fund, Trian Partners, for two seats and endorsing a growth plan that the company’s chief executive, Robert A. Iger, has laid out.

Trian controls about $3.5 billion in Disney stock, a vast majority of which is owned by Mr. Perlmutter. He and Mr. Peltz, both 81, had also tried to shake up the Disney board last year, abandoning the effort after Mr. Iger unveiled a sweeping turnaround plan .

“With the distracting proxy contest now behind us, we’re eager to focus 100 percent of our attention on our most important priorities: growth and value creation for our shareholders and creative excellence for our consumers,” Mr. Iger said.

Mr. Peltz received 31 percent of the vote from shareholders who thought he should join the company’s board, according to a preliminary count. In a statement, Trian said that it was “disappointed” with the outcome but that it was “proud of the impact we have had in refocusing this company on value creation and good governance.”

Disney shares dropped 3 percent on Wednesday.

The latest Disney-Trian contest devolved into one of the largest, priciest and nastiest in history. Trian spent about $25 million on its offensive, while Disney priced its defense at up to $40 million, according to securities filings. Both sides inundated investors with political-style campaign materials, including mailings, emails, social media ads, videos and phone calls.

Trian harshly criticized Disney’s streaming strategy, lagging stock price and succession planning. Disney denounced Trian as “disruptive and destructive” and portrayed Mr. Perlmutter as being driven by revenge.

Mr. Perlmutter sold Marvel to Disney in 2009 for $4 billion and joined the company’s leadership team. In 2012, Disney negotiated settlements with three Black consumer products executives who accused Mr. Perlmutter of mistreatment. In 2016, Mr. Perlmutter sought to fire Kevin Feige, Marvel’s movie chairman, for spending too much ($250 million) to make “Captain America: Civil War,” which sold $1.2 billion in tickets. Mr. Iger overruled him. Mr. Perlmutter also resisted making inclusion-oriented movies like “Black Panther,” which collected $1.4 billion.

Mr. Iger finally ousted him last year.

By winning the support of shareholders on Wednesday, Mr. Iger can push forward with his growth plan for Disney — one that includes overhauling ESPN for the streaming era , spending $60 billion on new theme park attractions and cruise ships and finding a new generation of hit movies.

But the victory did not leave Mr. Iger, 73, without bruises.

At first, he seemed poised to easily win. Prominent Disney investors like George Lucas and Laurene Powell Jobs publicly offered support. Disney family members, including Abigail E. Disney, blasted Mr. Peltz and his associates as “wolves in sheep’s clothing.” Analysts (Guggenheim, Macquarie) and shareholder advisory firms (Glass Lewis, ValueEdge) threw cold water on Trian’s campaign.

It became a much closer contest after ISS, an influential shareholder advisory firm, partly sided with Trian. Mr. Peltz also won the backing of Egan-Jones , another advisory; it faulted Disney for unnecessarily veering into what it called “the killing fields of the culture wars,” a reference to Disney’s blowup with Gov. Ron DeSantis of Florida over an education law that opponents labeled “Don’t Say Gay.”

One large investor that backed Mr. Peltz, the California Public Employees’ Retirement System, or CalPERS, which owns about 6.6 million Disney shares, said the company would benefit from “fresh eyes.” It added that Mr. Peltz was “capable of leading needed change in corporate governance.”

In the end, Disney’s two biggest shareholders, Vanguard and BlackRock, which own a combined 12 percent of the company’s shares, ignored ISS and voted for Mr. Iger’s slate of directors. Mr. Iger also won crucial backing from small-fry investors: An unusually large amount of Disney shares (up to 40 percent) are held by individuals, many of them fans of the company’s movies and theme parks. (On average among public companies, individuals own closer to 15 percent of the shares.)

Roughly 75 percent of individual shareholders voted to elect the Disney slate, according to the preliminary tally.

Mr. Iger returned to run the company in 2022 — two years after he had retired — when the Disney board fired his hand-selected successor, Bob Chapek . During his earlier, 15-year stint, Mr. Iger delayed his retirement four times and seemed reluctant to leave when he did.

Ever since his return, Mr. Iger has encountered a seemingly nonstop array of challenges: repeated attacks by activist investors, sparring with Mr. DeSantis over control of government services at Disney World in Florida, two union strikes that shut down Hollywood for six months, the collapse of Walt Disney Animation films at the box office and even rebukes voiced and written by Elon Musk.

Should Disney sell ABC? How does ESPN navigate a transition to full-bore streaming? Who will take over as chief executive when Mr. Iger retires again?

Some of those questions remain.

“Regardless of the outcome of today’s vote, Trian will be watching the company’s performance,” Mr. Peltz said at the meeting before the results of the vote were announced. “Trian still has continuing concerns about the current strategy,” he said. “All we want is for Disney to get back to making great content and delighting consumers — and for Disney to create sustainable long-term value for all of the shareholders.”

In other news from Disney’s shareholder meeting, the company said investors had also voted against giving Blackwells Capital, a smaller activist hedge fund, seats on the board; it had campaigned for three.

“The company would have benefited from any one of our candidates for the hard work needed over the next few years to advance this iconic company, but we respect the will of the shareholders and the outcome,” Blackwells said in a statement.

Lauren Hirsch contributed reporting from New York.

Brooks Barnes covers all things Hollywood. He joined The New York Times in 2007 and previously worked at The Wall Street Journal. More about Brooks Barnes

Spotify is reportedly going to get more expensive later this year

  • Be prepared: Your Spotify bill could go up again this year.
  • The streaming service is hiking prices in several markets, including the US, Bloomberg reported.
  • The company is also working on a new basic tier and a "supremium" plan, Bloomberg said.

Insider Today

Spotify is reportedly planning price increases and working on new tier offerings.

The music-streaming service plans to raise monthly prices by roughly $1 to $2 in five markets, including the UK, Australia, and Pakistan, by the end of this month, Bloomberg reported, citing people familiar with the matter who asked not to be identified because of the plans' confidentiality. In the United States, a price hike will come later this year.

Spotify is also working on new plans. One is a new basic tier that'll include music and podcasts at $11 a month for an individual premium plan, but users would need to pay extra if they also want audiobooks, Bloomberg reported. The other is a "supremium" plan that would include features such as high-fidelity audio, Bloomberg reported.

Related stories

The efforts are part of Spotify's push to become consistently profitable.

The company has said it pays out $0.70 for every dollar it makes to music owners, and it's shelled out hundreds of millions for podcasts. The "Joe Rogan Experience" podcast alone cost the company at least $200 million for a multiyear deal.

Spotify last raised prices in July , hiking the cost of most plans by $1 a month.

Competitors have also raised prices in recent years. Apple Music's individual plan got $1 more expensive a month in 2022, and YouTube Premium's individual plan rose by $2 a month the following year.

Spotify did not immediately respond to a request for comment from Business Insider.

Watch: Why single-origin coffee can cost $30 per pound. More than 5 times the US average.

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Spotify Plans More Price Increases in 2024: Report

The streaming service will raise the cost of monthly subscriptions again in a handful of key markets, including the U.S., according to Bloomberg

By Elias Leight

Elias Leight

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Spotify will increase prices in five markets later this month and do the same in the U.S. later this year, Bloomberg reports . Spotify previously raised the price of premium individual plan by $1 in North and South America, Europe, and Asia last year.

The initial round of new price hikes — $1 a month for individuals, $2 a month for duos and families — will hit the U.K., Australia, and Pakistan, among others, according to Bloomberg . 

Trending on Billboard

Spotify q4 2023 earnings: revenues up 16% as monthly users reach 602 million.

“We are the lowest (cost) form of entertainment,” Kyncl said of music. “We have the highest …engagement, highest form of affinity and lowest per hour price. That doesn’t seem right. It should change in an orderly fashion.” 

Last year, Barclays estimated that a 10% price increase by all music subscription services would increase Universal Music Group’s revenue by $430 million and Warner Music Group’s revenue by $256 million. 

Spotify moved to raise prices — $10.99 a month for individuals, $16.99 a month for families — in July of 2023. “The market landscape has continued to evolve since we launched,” the company wrote in a blog post. “So that we can keep innovating, we are changing our Premium prices across a number of markets around the world. These updates will help us continue to deliver value to fans and artists on our platform.”

Bloomberg also reported on Wednesday (April 3) that Spotify plans to introduce a new payment tier: $11 a month for individuals who only want access to music and podcasts. Those users will have to pay separately for audiobooks.  

Spotify turned a profit in the third quarter of 2023, its first in a year. The company posted an operating loss of €75 million (around $80 million) in the fourth quarter. It now boasts more than 600 million users.

Spotify’s stock price is up about 5.5% ($284) in morning trading, following a brief spike of as much as 7.4%.

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Amazon buys 234 acres of Pickaway County land for potential data center expansion

price of premise in business plan

Amazon Web Services is turning to Pickaway County to play a potential role in its $7.8 billion data center expansion in central Ohio.

The company bought 234 acres of land for $49.1 million on state Route 104, just outside of Southern Point and between Commercial Point and Lockbourne, according to Pickaway County property records. The deal closed on Dec. 28.

“We are constantly evaluating new locations based on customer demand. We recently purchased land in Pickaway County and are performing due diligence in exploring possible data center locations," the company said in a statement released Tuesday night.

The latest purchase comes following Amazon's announcement last summer that it was expanding its data center operations in central Ohio.

Amazon's data operations here date to 2015, and it has data centers in New Albany, Dublin and Hilliard .

Last fall, Amazon struck a deal to spend $3.5 billion in New Albany to expand its data center operations there.

Under that agreement, Amazon will build five data centers and related buildings totaling 1.25 million square feet on 85 of 439 acres the company  bought along Beech and Miller roads  early this year.

Central Ohio is now home to more than 50 data centers, according to a new report from commercial real estate firm Cushman & Wakefield.

Amazon, Facebook, Google are among the companies that have data centers in New Albany.

But the concentration of data centers in New Albany may be reaching a tipping point and could be a factor in Amazon searching elsewhere for its continued expansion.

"As with many other major markets, power availability is becoming a growing constraint in the New Albany cluster," the Cushman and Wakefield report said. "Power delivery times are increasingly several years away, incentivizing operators to search for available sites farther from the development frenzy."

The report cites the usual reasons why central Ohio has become a major data center player: low risk of natural disasters, affordable land, favorable tax incentives and access to electricity.

"While the Columbus region is already home to more than 50 data centers, including those owned by AWS, Google Cloud and Meta, billions of dollars in new investments are pouring into the metropolitan area," the report said.

Dispatch reporter Jim Weiker contributed to this report.

[email protected]



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