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How To Write the Funding Request for Your Business Plan

What goes into the funding request, parts of the funding request, important points to remember when writing your request, frequently asked questions (faqs).

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A business plan contains many sections, and if you plan to seek funding for your business, you will need to include the funding request section. The good news is that this section of your business plan is only needed if you plan to ask for outside business funding. If you're not seeking financial help, you can leave it out of your business plan. There are a variety of  ways to fund your business  without debt or investors. Below, we'll cover how to write the funding request section of your business plan.

Key Takeaways

• The funding request section of your business plan is required if you plan to seek funding from a lender or investors.
• You'll want to include information on the business, your current financial situation, how the money will be used, and more.
• Tailor each funding request to the specific funding source, and make sure you ask for enough money to keep your business going.

The funding request section provides information on your future financial plans, such as when and how much money you might need. You will also include the possible sources you could consider for securing your funds, such as loans or crowdfunding. Later, you can update this section when you need outside funding again for business growth.

An Outline of the Business

Yes, you've done this already in past sections, but you want to give potential lenders and investors a recap of your business. In some cases, you might simply share the funding request section so you need to have your business details such as what you provide, information about your target market, your structure (i.e. LLC), owners' and members' information (for partnerships and corporations), and any successes you've had to date in your business.

Current Financial Situation

Again, you've provided some financial information in the financial data section , but it doesn't hurt to summarize. If you're submitting just the funding request, you'll need this information to help financial sources understand your money situation.

Provide financial details such as income and cash flow statements, and balance sheets in your funding request section.

Offer your projected financial information as well. If you're asking for a loan for which you'll be offering collateral, include information about the asset. If the business had debt, outline your plan for paying it off. Finally, share how you'll pay the loan or what sort of return on investment (ROI) investors can expect by investing in your business.

How Much Money Do You Need Now and in the Future?

Indicate what type of funding you're asking for such as a loan or investment. Outline what you need now and what you might need in the future as far as five years out. 

How Will the Funds Be Used?

Detail how you'll be using the money, whether it's for inventory, paying a debt, buying equipment, hiring help, and more. If you plan to use the money for several things, highlight each and how much money will go to each.

Most financial sources would rather invest in things that grow a thriving business than things that pay for debt or overhead expenses. 

Current and Future Financial Plans

Current and future financial plans include items such as loan repayment schedules or plans to sell the business. If you're getting a loan, outline your plans for repayment (although most lenders will have their own schedules). If you have plans to sell the business, let the lender know that and how it will affect them. Other issues to consider are relocation (if you move) or a buyout. Finally, let investors know how they can exit the deal, such as cashing out (and how long before they can do that).

You're asking for money, so you need to always be professional and know your business inside and out. Here are some other things to keep in mind:

• Tailor your funding request to each financial source : Lenders and investors need different information, such as loan repayment versus ROI, so create different reports for each. 
• Keep your funding sources in mind : Each resource will have different questions and concerns. Do a little research so you can address them in your report.
• Ask for enough to keep your business going : Don't be stingy, as you don't want your business to fail from a lack of money. At the same time, don't be greedy, asking for more than you need. 

How do you request funding for a nonprofit?

Most nonprofits seek funding in the form of grants. Write a grant proposal that includes information on the project or organization, preliminary budget needs, and more. Be sure to format it with a cover letter, proposal summary, the introduction of the organization, problem statement, objectives, methods, evaluation, future funding needs, and the budget.

What are three methods of funding?

Grants and scholarships, equity financing, and debt financing are the main three methods of funding for small businesses . Grants and scholarships do not need to be repaid and are often best for nonprofit organizations. Equity financing is when you receive money in exchange for ownership and profits. Debt financing is when you borrow money that needs to be repaid.

Want to read more content like this?  Sign up  for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!

Small Business Administration. " Fund Your Business ."

Congressional Research Service. " How To Develop and Write a Grant Proposal ."

Library of Congress Research Guides. " Types of Financing ."

How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated April 17, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of business planning

If you’re reading this guide, then you already know why you need a business plan . 

You understand that planning helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After completing your plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

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• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

This is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

The operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

Last, but certainly not least, is your financial plan chapter. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI for your business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).

But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

Free business plan templates and examples

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How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

What’s the difference between a business plan and a strategic plan?

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan
• Templates and examples

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Write the Funding Request Section of Your Business Plan

Free Startup Fundraising Checklist

Aayushi Mistry

• December 12, 2023

While writing a business plan to seek funding, you must be clear about what needs to be written under the section where you would request funding. This is an important and essential section of your business plan.

What Is the Funding Request?

A funding request section of your business plan allows you to ask for the required fund. While writing the request, you always have to mention the timeline in which you will utilize the funds. Usually, this timeline is up to the next 5 years from the request.

The funding request may differ on the age of your company. If your company is only a start-up, it will have to provide more details than any older company. Generally, any business up to its 7th year is called a startup company. Although this criterion may differ with respect to location and industry.

Step-by-Step Guide to Writing the Funding Request of Your Business Plan

Before you start writing your requests, be clear about your requirements. And, in the same line, be very clear explaining it. Your readers want you to get to the point. So, they can make accurate decisions just in time. Moreover, it will also save you a lot of time and effort.

Once the facts and figures are drawn (accurately), you need to draft them properly into your business plan. And you have to be very careful and precise while doing it.

So ideally, you need to figure out your requirements. And then put it into the context of the business plan.

So, How to derive your funding requirements?

Deriving funding requirements get a little overwhelming. But if you take it one step at a time, it starts getting easier.

First, determine what you need money for

It could be for hiring new staff, getting new equipment, or starting your business at a new location . Just be very clear with the goals. Then list down the requirements and the required fund for it. In the end, sum it up. If you want funds for recovering your debts, explain all your debts in detail.

Now, It Is Time to Know How Much Amount Can You Get on Your Own.

• Calculate the financial resources: Look out for your saved capital in cash as well as in personal assets. Other than that, see if you can gather the funds from friends and family.
• Grants and subsidies: Check if your company is eligible for any government grants and subsidies. If yes, apply for it and add the amount. Calculate and find the difference between the required amount and the amount you can already put together. And that will be the amount you will be needing from the third party, investors, or from the bank. Once you have the right fund requirement at hand, list out the investors, moneylenders, and loans who can provide you with the sum.

Now, Let’s Start Writing Your Funding Request

1. Provide Business Information

Yes, you still have to give this brief even though you have already explained it in detail. No, it does not get redundant-It does not have to be. In fact, you can take it up as an opportunity to give a little recap to your potential prospects and moneylenders.

Moreover, sometimes, you might have to only send the funding request section and not the entire business plan. In such cases, such information comes handy.

So, here’s what you will have to explain in the funding request section of your business plan-

• Target Market
• Your business structure like LTD, LLC, or more
• Brief about your product/service
• Partners involved
• Business heir, if there exists.

2. Mention the Current Financial Situation

You might have provided some financial information in the financial section. But, you have to add some figures here anyway. Not only will make it contextual, but even easier to have a clear picture in one place.

Here are some financial details that you will have to include in this section:

• Quarterly as well as yearly cash inflow and outflow
• Balance sheets
• P&L statement
• Expected financial condition in the upcoming quarter and year
• Include the list of assets and their ownership details if you are asking loan from the bank
• If your business is in debt, explain the situation in the detail and a brief plan for paying it.
• Mention how much return on investment can they expect.
• In the end, mention how will you pay off the loan or transfer the ownership of the business.

3. Announce How Much Funds Do You Need?

When you explain the situation in brief and have all the facts and figures put aside, narrow it down to your requirements. Mention how much money you need.

4. Discuss Briefly How Will You Use the Money?

Here, you have to narrow down what you need the money for and how you are going to use it. Just list down the details and put the figure for it- so much like how you do your billing. If they are taking the money for multiple things, highlight every detail.

5. Dive Deep into Current and Future Financial Planning

You must have explained a little about the inflow and outflow in the financial section. But over here, you have to get into the details like-

• If you are getting a loan, outline your timelines for payments.
• If you are looking forward to selling, mention how it will affect the investors.
• And then, finally, mention the exit strategy . Your exit strategy includes how you will transfer the business ownership at the end.
• You only have to add the funding request if only you want the funding from outside. If you don’t want to raise your funds from a third party, then you don’t have to include them in your business plan.
• Your investors would like to invest in your business if only it is thriving or promising. They are less likely to lend money if you are in debt.
• You see, you are asking for money. So don’t take this section casually. Know your business inside out and only involve people who know everything about your business.
• Be as specific about your requirements and the funding that you require.
• If you are planning to send it to different investors, tailor your funding request according to the reader.
• All your sources have different mindsets and different funding criteria. Be very specific about it. Do detailed research before starting to write your funding request.
• Don’t hesitate while asking for the funds. Be open and ask just as much as your business really requires. But at the same time, don’t be greedy.

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Home > Business Plan > Funding Requirements in a Business Plan

Funding Requirements in a Business Plan

… our funding requirements are …

The summary given in the funding requirement section should be consistent with the rest of the business plan. The amount needed, and when it is needed should follow from the detailed financial projections, and the purpose of the funding, sales and marketing, hire of employees, to achieve a milestone etc. should again link in with the rest of the plan,

Funding Requirements Presentation

This is part of the financial projections and Contents of a Business Plan Guide , a series of posts on what each section of a simple business plan should include. The next post in this series is the final section, and deals with the planned exit for investors.

About the Author

Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.

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How to Write Your Business Plan to Secure Funding

Unlock funding for your business! Master the art of writing a funding-worthy business plan with our ultimate guide.

Introduction to Writing a Funding-Worthy Business Plan

When it comes to securing funding for your business, a well-written business plan plays a pivotal role. It serves as a roadmap that outlines your goals, strategies, and financial projections, giving potential investors or lenders a comprehensive understanding of your business. In this section, we will explore the importance of a well-written business plan and delve into the purpose it serves.

Importance of a Well-Written Business Plan

A well-crafted business plan is essential for multiple reasons. Firstly, it showcases your professionalism and commitment to your business idea. It demonstrates that you have thoroughly thought through every aspect of your venture and have a solid plan in place.

Additionally, a well-written business plan acts as a communication tool between you and potential investors or lenders. It allows you to effectively convey your business concept, market analysis, and financial projections, helping them understand the viability and potential of your business.

Moreover, a comprehensive business plan can help you identify any potential pitfalls or gaps in your strategy. By thoroughly analyzing your business model, market conditions, and financial projections, you can proactively address any weaknesses and make necessary adjustments.

Understanding the Purpose of a Business Plan

The purpose of a business plan extends beyond just securing funding. It serves as a strategic document that guides your business operations and helps you stay focused on your goals. Some key purposes of a business plan include:

• Attracting Investors and Lenders: A well-written business plan provides potential investors or lenders with the information they need to make an informed decision about whether to invest in your business or provide financial support. It showcases the potential return on investment and outlines the steps you will take to achieve success.
• Setting Clear Goals and Strategies: A business plan helps you define your short-term and long-term goals, as well as the strategies you will implement to achieve them. It provides a roadmap that keeps you on track and allows you to measure your progress along the way.
• Identifying Strengths and Weaknesses: By conducting a thorough market analysis and assessing your business's strengths and weaknesses, a business plan helps you identify areas where you excel and areas that require improvement. This enables you to develop strategies to leverage your strengths and mitigate any weaknesses.
• Guiding Financial Decision-Making: A business plan includes financial projections and analysis that help you make informed financial decisions. It provides a clear understanding of your revenue streams, costs, and potential profitability, enabling you to allocate resources effectively.
• Facilitating Collaboration and Communication: A business plan serves as a tool for collaboration and communication within your organization. It ensures that all team members are aligned with the business goals and strategies, fostering a cohesive and unified approach.

Understanding the importance and purpose of a well-written business plan is the first step towards creating a document that effectively communicates your vision and secures the funding you need. In the following sections, we will explore the key components, step-by-step guide, and best practices for crafting a funding-worthy business plan.

Key Components of a Funding-Worthy Business Plan

To create a business plan that attracts funding, it's essential to include key components that provide a comprehensive overview of your business. These components will help potential investors understand your business's potential and make informed decisions. Here are the key components you should include in your funding-worthy business plan:

Executive Summary

The executive summary is a concise overview of your entire business plan. It should provide a clear and compelling summary of your business, highlighting its unique selling proposition, market opportunities, and financial projections. This section should be written in a way that captures the attention of potential investors and encourages them to read further.

Company Overview

The company overview section provides an introduction to your business. It should include details about your company's mission, vision, and values. Additionally, this section should highlight key information such as the legal structure of your business, its history, location, and any notable achievements or milestones.

Market Analysis

The market analysis section presents a thorough examination of your target market, industry trends, and competitors. It should showcase your understanding of the market dynamics, customer needs, and competitive landscape. Including market research, data, and relevant statistics can strengthen your analysis and demonstrate the market opportunity your business intends to tap into.

Product or Service Description

In this section, you should provide a detailed description of your product or service. Explain how it addresses a need or solves a problem in the market. Include information about its features, benefits, and any unique selling points. Use this section to showcase the value proposition of your offering and differentiate it from competitors.

Marketing and Sales Strategy

The marketing and sales strategy section outlines how you plan to promote and sell your product or service. It should include your target market segmentation, pricing strategy, distribution channels, and promotional activities. Demonstrating a well-thought-out marketing and sales strategy can instill confidence in investors regarding your ability to reach and attract customers.

Organizational Structure and Management

In this section, provide an overview of your organizational structure, including key personnel and their roles. Highlight the qualifications and experience of your management team, as well as any advisors or board members. Investors want to see that your team has the expertise and capabilities to execute your business plan successfully.

Financial Projections and Analysis

The financial projections and analysis section is crucial for illustrating the financial viability of your business. Include projected income statements, balance sheets, and cash flow statements for at least the next three years. Additionally, provide a detailed analysis of your financial assumptions and key performance indicators. It's important to present realistic and well-supported financial projections.

Funding Request and Use of Funds

In this section, clearly state the amount of funding you are seeking and how you intend to use it. Break down the allocation of funds, highlighting specific areas such as product development, marketing, operations, or expansion. Providing a detailed breakdown of the use of funds demonstrates your ability to effectively utilize the investment.

The appendix section serves as a supplemental section that includes any additional information that supports your business plan. This may include market research data, product samples, patents, licenses, permits, or any other relevant documents. The appendix provides investors with access to more detailed information without overwhelming the main body of the business plan.

By including these key components in your funding-worthy business plan, you can present a comprehensive overview of your business and increase your chances of securing the funding you need to bring your entrepreneurial vision to life.

Step-by-Step Guide to Writing a Funding-Worthy Business Plan

Writing a business plan that is compelling and attractive to potential investors is a crucial step in securing funding for your venture. To help you navigate this process, here is a step-by-step guide to writing a funding-worthy business plan.

Research and Gather Information

Before diving into the writing process, it's essential to conduct thorough research and gather all the necessary information. This includes understanding your industry, target market, competitors, and potential investors. Collecting data and market insights will provide a solid foundation for your business plan.

Define Your Business and Goals

Clearly define your business and outline your goals. Describe the nature of your business, the products or services you offer, and what sets you apart from your competitors. Additionally, establish both short-term and long-term goals for your business, focusing on specific, measurable, achievable, relevant, and time-bound (SMART) objectives.

Conduct a Comprehensive Market Analysis

Perform a comprehensive market analysis to gain insights into your target market, customer demographics, and industry trends. Identify your target audience's needs, preferences, and purchasing behavior. Analyze your competitors to understand their strengths, weaknesses, and market positioning. Presenting this information in tables can help organize and present the data effectively.

Market Analysis Factors                                       Data

‍ Target Market Size

Customer Demographics

Industry Trends

Competitor Analysis

Develop a Strong Marketing and Sales Strategy

Outline a robust marketing and sales strategy that highlights how you plan to reach and attract customers. Define your unique selling proposition (USP) and outline your pricing strategy, distribution channels, and promotional activities. This section should demonstrate your understanding of your target market and how you plan to position your business in the competitive landscape.

Outline Your Organizational Structure and Management

Describe your organizational structure and management team. Provide an overview of key personnel, their roles, and their qualifications. Highlight any relevant industry experience, expertise, or accomplishments that make your team well-equipped to execute the business plan successfully. A clear and concise organizational chart can help visualize the structure.

Create Financial Projections and Analysis

Develop financial projections that estimate your business's future revenue, expenses, and profitability. Include a projected income statement, balance sheet, and cash flow statement. Use realistic assumptions based on your market research and industry benchmarks. Additionally, conduct a comprehensive financial analysis that evaluates the financial health and viability of your business.

Craft a Compelling Executive Summary

The executive summary is a concise overview of your entire business plan and should entice readers to continue reading. Summarize the key elements of your plan, including your business concept, market opportunity, competitive advantage, and financial projections. Craft a compelling and engaging executive summary that captures the attention of potential investors.

Polish and Revise Your Business Plan

Once you have completed the initial draft of your business plan, take the time to polish and revise it. Review the content for clarity, coherence, and accuracy. Ensure that your plan flows logically and presents a compelling case for investment. Proofread for grammar and spelling errors. Consider seeking feedback from trusted advisors or professionals to refine your plan further.

By following this step-by-step guide, you can create a comprehensive and compelling business plan that increases your chances of securing funding for your venture. Remember to tailor your plan to the specific needs and preferences of your target audience, providing them with all the necessary information to make an informed investment decision.

Tips and Best Practices for Writing a Funding-Worthy Business Plan

Writing a business plan that is compelling and effective in securing funding requires careful attention to detail and adherence to best practices. Here are some tips to help you create a funding-worthy business plan:

Keep it Clear and Concise

When writing your business plan, it's essential to communicate your ideas clearly and concisely. Avoid using unnecessary jargon or technical terms that may confuse your readers. Use straightforward language and structure your content in a logical manner. Remember, clarity and simplicity are key to ensuring that your business plan is easily understood by potential investors.

Tailor Your Plan to the Target Audience

Each business plan should be tailored to the specific needs and expectations of the target audience. Consider the preferences and priorities of potential investors or lenders and customize your plan accordingly. For example, venture capitalists may be more interested in growth potential and return on investment, while traditional lenders may focus on cash flow and collateral. Understanding your audience will allow you to highlight the aspects of your business that are most relevant to them.

Support Claims with Data and Research

To instill confidence in your business plan, it's important to back up your claims with data and research. Provide market research, industry trends, and competitive analysis to support your assertions about the viability and potential of your business. Including relevant statistics, market projections, and customer surveys can help validate your assumptions and demonstrate that your business plan is grounded in reality.

Seek Professional Help if Needed

Writing a funding-worthy business plan can be a complex and time-consuming task. If you are unsure about certain aspects or need assistance in crafting a compelling plan, consider seeking professional help. Business consultants, accountants, or industry experts can provide valuable insights and guidance to ensure that your business plan is comprehensive, accurate, and persuasive.

Remember, a well-written business plan is not only a tool for securing funding but also a roadmap for the success of your business. By following these tips and best practices, you can increase your chances of creating a business plan that effectively communicates your vision and attracts the attention of potential investors or lenders.

Q: What is a funding-worthy business plan?

A: A funding-worthy business plan is a comprehensive document that outlines your business concept, market opportunity, competitive advantage, financial projections, and other key components to attract potential investors or lenders.

Q: What are the key components of a funding-worthy business plan?

A: The key components of a funding-worthy business plan include an executive summary, company overview, market analysis, product or service description, marketing and sales strategy, organizational structure and management, financial projections and analysis, funding request and use of funds, and appendix.

Q: How long should my business plan be?

A: While there is no strict rule on the length of a business plan, it's generally recommended to keep it concise and focused. A typical business plan can range from 15 to 30 pages. However, the most important thing is to provide all the necessary information in a clear and compelling manner.

Q: Do I need professional help to write my business plan?

A: While you can certainly write your own business plan with careful research and attention to detail, seeking professional help can provide valuable insights and guidance. Business consultants, accountants or industry experts can offer specialized knowledge that can enhance the quality of your business plan.

Q: How often should I update my business plan?

A: Your business plan should be viewed as a living document that evolves over time. It's recommended to review and update your plan regularly to reflect changes in your industry or market conditions. You may need to update it annually or even more frequently if significant changes occur in your business operations or financial performance.

By addressing these frequently asked questions about writing a funding-worthy business plan in your document or during presentations with investors or lenders can demonstrate that you have thoroughly thought through the planning process.

As an entrepreneur seeking funding for your business, a well-crafted and comprehensive business plan is essential. By following the step-by-step guide outlined in this article, you can create a funding-worthy business plan that effectively communicates your vision, market opportunity, competitive advantage, and financial projections to potential investors or lenders. Remember to tailor your plan to the specific needs and expectations of your target audience, keep it clear and concise, support claims with data and research, and seek professional help if needed. With a compelling business plan in hand, you'll be one step closer to turning your entrepreneurial dreams into reality.

https://blog.hubspot.com/sales/how-to-write-business-proposal

https://www.etu.org.za/toolbox/docs/finances/proposal.html

https://www.mybusiness.com.au/how-we-help/grow-your-business/increasing-sales/how-to-write-a-funding-proposal

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Business Plan Funding Request Section: How to Write Guide .

Sep 17, 2023 | Business Consulting , Business Growth , Business Performance , Business Plan , Financial Plan , Funding Needs , Funding Request , Small Business , Startup , Strategy

How to Write the Business Plan Funding Request

“It is more rewarding to watch money change the world than to watch it accumulate.” –Gloria Steinem.

By now, you’ve made significant progress in developing your business plan. With this, the eighth article in our Creating a Detailed Business Plan series will focus on including a funding request.

Business plans are generally the catalyst for requesting banks, lenders, and investors to invest money into a company . Usually, the business plan and funding help support business growth or rapidly scale a startup company.

As you can imagine, this makes the funding request section extremely important . Business plans can be written even with ample existing funding and can be in stages to support different business expansion phases. You can omit a funding request if you aren’t looking for outside investment.

The funding request section of your business plan is required if you plan to seek funding from a lender or investors.

Benefits of including a business plan funding request section

A business plan typically consists of various areas, and if you intend to secure funding for your business, it’s crucial to include the funding request section. Fortunately, this part of your business plan is only necessary if you plan to seek external financial assistance. If you don’t require any funding, you can skip this section.

There are various ways to fund your business without debt or investors. This article will help you create a persuasive funding request for your business plan.

What information is needed for the business plan funding request?

The business plan funding request section of your plan outlines your financial needs for the future, including how much money you require and when you will need it. You should also mention the various sources you could use to secure funding, such as loans or crowdfunding.

Remember that you can constantly update this section in the future if you require additional funding for business expansion.

How much money and how much duration must you include in your funding request?

A funding request is no time to be shy. Your readers will know what funding you’re after when they get to this section, so be forthright. Declare your business funding needs now and in the future. Give exact figures, and spell out any further infusions you’ll require over the next five years.

Explain how long the funds will be needed , when you plan on repayments, and when the investor can expect a return. It’s also helpful to spell out whether you’d prefer a loan, a grant, a direct investment, and any other relevant terms you would like included . For example, are you willing to give up equity in your business to secure the loan, or will you be personally underwriting the loan from your assets?

How do you plan to use the requested funds?

It’s unlikely that anyone will give you money if they don’t understand how you plan on using the funds. So be explicit when explaining the purpose of your request. For example, note whether the funding will go toward working capital, additional equipment, or business expansion to new premises or regions.

Describe your plans if you are growing your team or expanding your operation. If you plan on buying another company, explain what this will do for your bottom line and cash flow.

You might also use the funds to retire debt, create and market a new product line, or combine things. Whatever the use, be rigorous in your explanations.

Business banks and investors aim to secure a reasonable return on their investment. So, they’re far more likely to fund businesses that plan to use the money to grow and become more profitable.

But, on the other hand, if they get the sense that the money is just helping to string along a failing enterprise or the owner is not clear on the funding required, they’ll stay away.

What are your long-term plans for the business?

If you have any solid, situational plans for the business that might positively impact investors, you should spell them out.

Consider your plans for scaling your business. If there’s an expectation of a lucrative buyout or acquisition after meeting specific benchmarks, mention this. Describe your goals if you plan on selling a portion of the company to focus your efforts on more profitable areas.

Mention any primary debt service you plan to make, mainly if it will put your company on a firmer footing for the future.

Why should investors trust you?

This question is critical. It would help convince your readers that you would be a good steward of their money and your business. It’s essential to remember that those who are providing you with money are doing so with the expectation of being paid back and making a profit. If they don’t trust you or doubt your ability to make this happen, they may not be willing to get involved.

Explain the assumptions you’re making in your plans and provide the proper financials to support your contentions. Let the data speak. If you’re correct, the research will bear out our position.

Planning for your finances now and in the future

When it comes to financial planning and funding your growth , it’s essential to consider factors such as loan repayment schedules and potential business sales. If you are seeking a loan, it’s wise to detail your repayment plans, although lenders will likely have their agenda in place. If you plan to sell your business, it’s crucial to inform the lender and explain how this may impact them. Additionally, you should consider possible relocation if you plan to move or a buyout if that’s on the table. Lastly, informing investors of their exit options, such as the ability to cash out and the timeline for doing so, is essential.

Our upcoming article will focus on creating financial projections for a business plan.

You can achieve your goals, and Noirwolf is here to assist you.

Putting together a funding request can be daunting. Asking your accountant for help is always a good idea. You can also use tools like Microsoft Excel and financial planning software like LivePlan . If you need further assistance, we’re ready to help out.

Contact us today to learn more about Noirwolf Consulting services and how we can significantly help you .

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How To Write A Convincing Business Plan When Seeking Funding

March 20, 2023 • 5 min read

SMALL BUSINESS

Having a business plan is not only important to create when starting your business, it's essential to keep updated when you're seeking funding for your business. Not every lender or grant committee will ask for your business plan, but many do.

If you plan to seek out venture capitalists or angel investors, they will almost always ask for your business plan. In addition, many grant applications require a business plan. Here's how to write a convincing business plan for any funding situation.

📌 Pro-tip: Want a starter business plan you can begin to use for grant and funding applications? Book direct 1-1 business plan help from our team of experts or become a Skip member .

When You Will Need A Business Plan

The most common situation where you will be asked for a business plan is if you seek out capital from investors. According to Accion , "no investor will put money in without one (business plan)." They need to see that you are serious about your business and are capable of making them money.

Another situation that you may need to present a business plan is when applying for business grants. Grant requirements vary greatly, but some (such as the Live Music Society Grant, Inc File grant, Alibaba grant, KKR Grant, and others) require partial or full business plans as part of the application process.

Most lenders do not need to see a full business plan when requesting a loan, but creating one helps you determine how much to borrow and calculate the return on your investment you plan to get. In some cases, the SBA will ask for one if you apply for an SBA loan, such as an EIDL loan or 7(a).

Tips Before You Write Your Business Plan

Before you write your business plan (or revamp it), here are some tips to keep in mind.

• Keep It Short and Concise. Investors, loan officers, and grant committee members who look through hundreds of applications do not want to read a novel. They want to know right away whether or not your business is set for success. A business plan around ten to fifteen pages is sufficient. It may be less than ten if you are a brand new startup looking for seed capital.
• Customize It To Your Audience. Your essential business plan elements will stay the same, but customize it to your audience. If you're applying for a loan, make sure to address your plan to pay the amount back, speak about your credit history, include your collateral, etc. For investors, explain your investment proposition. For grants , explain how your business aligns with the organization's values and how your use of the funds will further their vision.
• Proofread Your Plan. Nothing is more off-putting than a document riddled with errors. While a couple of grammatical or spelling errors will be mostly overlooked, having a lot of errors will turn off your prospective lenders or investors. If writing is not your strong suit, consider hiring a professional writer.
• Use Free Resources to Help You. If you feel overwhelmed by writing your business plan, there are options your can pursue. SCORE is a non-profit association funded by the SBA. They have a lot of free resources and locations nationwide to help you with your business plan. You can also contact your local Small Business Development Center for assistance.

📌 Reminder: We have limited spots to help entrepreneurs directly create or update their business plan. You'll have a starter business plan created within 72 hours.* Book direct 1-1 business plan help from our team of experts or become a Skip member . *If you're able to get us the information requested

How To Write Your Business Plan

Now that we've covered some tips to consider before you write your plan, here's what you should include in your business plan.

Executive Summary

The executive summary is essentially the summary of your whole business plan. It gives the reader a snapshot of your business and an understanding of your business's mission and goals. Your executive summary should describe what your business does, who it caters to or serves, who the leadership is, and a high-level growth plan.

Company Description

This is where you can go into more detail about your business. Explain the mission, vision, and purpose of your company and discuss the goal(s) of your business. Specify the problems that your business solves as well as the customers, clients, or other businesses that your business serves. Highlight the strengths of your business (busy location, experts on the team, patented product, etc.) and why you can be (or already are) competitive in your market.

Market Analysis

If you are a new startup, this section is going to be crucial to explain well. Investors want to know if you understand the market you are trying to enter.

In this section, you need to explain in detail the total available market (total number of potential customers), your segmented market (the customers you intend to target within the total market), your estimated share of the market (the number of customers your company can reasonably serve), who your competition is, and how your product or service will differ (and improve) from what exists already.

Business Structure

This section is rather straightforward. You need to explain your business structure, who the key members are, the responsibilities of your key members, and the ownership percentage for each member or owner.

Products and Services

Your products and services have already been touched on in your market analysis and company description, but here is where you can go into detail. Explain how they benefit your customers, what the product lifecycle looks like, the cost of production and gross profit margins, your distribution strategy, and why your product is superior to your competitors.

It's also important to mention the patents, copyrights, and trademarks your business owns.

Marketing and Sales Plan

There are numerous ways to approach marketing and sales, so this is your opportunity to explain your marketing strategy. What have you been doing? What has been successful? What do you want to do? How are you going to attract more customers?

These are the questions you should answer in this section. Additionally, explain how your sales work so your investors/lenders understand how you make a profit.

Funding Request

Here is where you will explain your funding need. If you are seeking a loan, reiterate the amount of your loan request and your amortization plan. If you are seeking investments, be specific on the amount of investment you are seeking and what equity your investors will receive in exchange.

In all scenarios, the fundamental information to convey is why you need this funding and how you are going to use it.

Financial Projections

The financial projection section of your business plan is arguably the most important. It outlines how your business is going to generate profit and how much. Investors want to know that there will be a return on their investment and lenders need to know that you can repay the loan.

Provide your business sales, either monthly or quarterly, along with your expenses and profit for at least the last three to five years. These figures will also guide your projections into the future so you can provide accurate profit estimations. Having aggressive goals is fine, as long as they are realistic.

The appendix to your business plan will contain all of the documents that you mention in your business plan. Your resume and those of the other owners, financial statements, profit projections, equipment leases, businesses licenses, permits, insurance cards, patents, contracts, business credit history, and anything else that you reference in your plan needs to be attached here and clearly marked.

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Do you need help writing a business plan or getting funding for your business? We can help with EIDL, SBA loans, grants, or other business financing options. Get ongoing personalized help from our team. Join Skip Premium today and get 1-1 support for your business.

How Else Can Skip Help? Whether you need help navigating small business funding–like SBA loans, grants, or other financing options–or help with other government-related services–like TSA PreCheck or DMV appointments — skip the red tape .

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Blog » Business » How to Write the Funding Request Section of Your Business Plan

How to Write the Funding Request Section of Your Business Plan

So you’ve got that idea and you’re ready to launch your business . You started to prepare your business plan, but… Not every business plan will need a funding request section. If you’re looking for outside funding though, you’re going to need to ensure this section goes in. You’ll need it whether you’re going to apply for a loan for your business or approach an investor . Here’s how to write your funding request and get the cash you need.

Write an Outline of Your Business

This may sound as though it would be rather pointless, as your entire business plan will be outlining your business. However, you’ll need to outline your business as this section may be used separately from the rest of your plan.

Create an outline that focuses on giving your readers the main points of your business plan. In short, you’re going to want to summarise what your business does and how it plans to operate. This should be enough for your reader to move forward but won’t be repeating anything if they do happen to have the entire document to hand.

Spell Out What You Need in the Funding Request

When it comes to the funding section of your business plan, there’s no point beating around the bush because the reader is going to know exactly what you’re there for and may not have the time to play games trying to figure out what you’re asking for.

Nor are they going to bother to call or email you asking what you meant. Your funding request will simply be denied.

You’ll need to ask for the amount of money you need straight, but that won’t be everything you include in this funding request. Here’s a full list of what you’ll need to include:

• Amount needed: Ask for the full amount you’ll need. Will you use this cash in one lump sum, or will you need further investments over time? Consider this when thinking of how much you need to ask for.
• Loan or investment: How do you want this money? Both a loan and investment have benefits and downfalls, so make sure you’re researching each possibility to see what works best for your business.
• The terms you’re asking for: These will need to be agreed upon before you put this funding request forward and will be a defining factor in your contract, so you’ll want to make sure that you’re investing a good amount of time in ensuring these terms and conditions work well and in favour of your business.

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How you will use the funds.

If you know how much money you need, then it’s safe to say that you’ll have an idea of what it’s going to be used for.

However, make sure that you’re only outlining what your funding is going to be used for. If you’re going to be using it for several different reasons, perhaps dividing it into several areas of your business, such as product development, marketing, and staff costs, make sure that you take the time to outline each use and explain how much will go towards it.

Always remember that the vast majority of investors and lenders would give their money to help a business grow. Rather than trying to help you scrape through on a failing business idea in which they’ll see very little, potentially no, return on investment.

That means you’ll find they’re more likely to fund staff or equipment, rather than help you pay down debt.

Use Tools to Help You Write the Request

The more professionally and comprehensively you’ve written your business funding request, the more likely it is to be fulfilled by your potential investors. This means you’ll need to check your proposal before sending it to ensure that it’s free from errors and mistakes that could seriously damage the credibility and reputation of your business.

Here are some tools that will help you get it written to the highest quality possible:

• State Of Writing and My Writing Way : These writing guides are full of good advice.
• Assignment Help : This service can edit and proofread your request.
• Via Writing and Grammar Check : Get help with your grammar here to ensure a professional standard in your funding request, and your entire business plan.
• Boom Essays & Academized : Writing agencies recommended by the Huffington Post that will help you with editing and proofreading.
• Cite It In : Cite any sources you use correctly and professionally using this free online tool.
• Essayroo and Big Assignments : These writing agencies can help you put your requests together.
• Easy Word Count : Keep your writing concise with this tool by monitoring its word count to ensure you don’t bore your reader.

Include Financial Information

If someone is to invest in your business, they’ll need to have all the information at hand before they make a decision. You need to be including your business’ financial information in this document, to show them how you handle the income you get. You’ll need to include income statements. Such as cash flow statements, balance sheets, and any other information that may be relevant.

If you’re taking a loan, you’ll need to think about how you’re going to pay the money back, and when. If it’s an investment, what can you offer the investor to show them you’re worth investing in?

Read Your Request Over Before Submitting It

“Finally, you’ll need to proofread and edit your request before you send it out. It’s an essential part of the writing process. No matter how careful you were, you can still make errors in your writing,” says Jenna Gallivan, writer at Elite Assignment Help . Give yourself enough time to sit and read your request through carefully. Give it several passes, to ensure you catch everything. The more you edit, the more professional your request will be.

These tips will help you write finance requests that are reasonable, thorough, and help you get the cash your business needs. Follow this advice and you’ll be able to get the help you need easily. Write it well and you’ll be on your feet in no time.

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• Entrepreneurship

How Do I Create a Funding Request in My Business Plan?

As a business owner, you may need to seek funds from investors or lenders to fuel your business growth. To do so, you will need to create a funding request in your business plan. This section of your plan should clearly outline how much money you need, what you will do with the funds, and how you plan to repay the loan or provide a return on investment to your investors.

1. Determine Your Funding Needs

The first step in creating a funding request is to determine how much money you need. This will depend on the size and stage of your business, as well as your growth plans. Be realistic about your funding needs and provide a detailed breakdown of how you will use the funds.

You may also want to consider the type of funding you are seeking and the terms you are willing to accept. For example, if you are seeking equity financing, you will need to provide a clear valuation of your business and the percentage of ownership you are willing to give up.

To organize this information, you can create a table that outlines your funding needs, the type of funding you are seeking, and the terms you are willing to accept.

2. Explain Your Business Model

Investors and lenders want to understand how your business operates and generates revenue. In your funding request, provide a clear overview of your business model, including your target market, revenue streams, and pricing strategy.

You may also want to include a SWOT analysis to show your strengths, weaknesses, opportunities, and threats. This will give investors and lenders a better understanding of your business and the potential risks involved.

To organize this information, you can create a bullet point list or table that outlines your business model and SWOT analysis.

3. Highlight Your Competitive Advantage

Investors and lenders want to know what sets your business apart from the competition. In your funding request, highlight your competitive advantage, whether it is a unique product or service offering, a proprietary technology, or a strong brand.

You may also want to include a market analysis to show the size of your target market and the competition landscape. This will give investors and lenders a better understanding of the potential growth opportunities for your business.

To organize this information, you can create a table that outlines your competitive advantage and market analysis.

4. Provide Financial Projections

Investors and lenders want to see that your business is financially viable and has the potential for growth. In your funding request, provide financial projections that show your revenue, expenses, and cash flow over the next three to five years.

You may also want to include a break-even analysis to show how much revenue you need to cover your expenses. This will give investors and lenders a better understanding of the potential return on investment or loan repayment timeline.

To organize this information, you can create a table or chart that outlines your financial projections and break-even analysis.

5. Outline Your Use of Funds

Investors and lenders want to know how you plan to use the funds they provide. In your funding request, provide a detailed breakdown of how you will use the funds, whether it is for product development, marketing, or hiring additional staff.

You may also want to provide a timeline for when you will use the funds and the expected outcomes. This will give investors and lenders a better understanding of how their investment or loan will be put to use.

To organize this information, you can create a bullet point list or table that outlines your use of funds and timeline.

6. Provide a Loan Repayment Plan

If you are seeking a loan, you will need to provide a clear repayment plan that shows how you will repay the loan over time. In your funding request, provide a detailed repayment plan that shows the amount of each payment, the interest rate, and the timeline for repayment.

You may also want to include a calculation of your debt service coverage ratio to show that you have the ability to repay the loan. This will give lenders a better understanding of the potential risk involved in providing the loan.

To organize this information, you can create a table or chart that outlines your loan repayment plan and debt service coverage ratio.

7. Explain Your Management Team

Investors and lenders want to know that your business has a strong management team in place. In your funding request, provide a brief overview of your management team, including their experience and qualifications.

You may also want to include an organizational chart to show the structure of your team and the roles and responsibilities of each member. This will give investors and lenders a better understanding of the management team’s ability to execute on the business plan.

To organize this information, you can create an organizational chart and bullet point list that outlines your management team’s qualifications.

8. Provide a Risk Management Plan

Investors and lenders want to know that you have identified potential risks and have a plan in place to mitigate them. In your funding request, provide a clear risk management plan that identifies potential risks and shows how you plan to mitigate them.

You may also want to include a contingency plan to show how you will respond if a risk does occur. This will give investors and lenders a better understanding of the potential risks involved in providing funding and your ability to manage them.

To organize this information, you can create a table or chart that outlines your risk management plan and contingency plan.

9. Show Your Progress to Date

Investors and lenders want to see that your business has made progress to date and has the potential for growth. In your funding request, provide a brief overview of your company’s history and any significant milestones you have achieved.

You may also want to include a summary of your current financials to show your revenue and expenses to date. This will give investors and lenders a better understanding of your business’s current financial position and potential for growth.

To organize this information, you can create a bullet point list or table that outlines your company’s history and financials to date.

10. Conclusion

In conclusion, creating a funding request in your business plan requires careful planning and organization. By following these steps and organizing your information into tables, charts, and bullet point lists, you can create a compelling funding request that will attract investors and lenders to your business.

Remember to be realistic about your funding needs, provide details on your business model and competitive advantage, and show your potential for growth through financial projections and milestones achieved to date. With a well-crafted funding request, you can secure the funding you need to take your business to the next level.

Frequently Asked Questions

Here are some common questions about creating a funding request in a business plan.

What information should be included in a funding request?

When creating a funding request in your business plan, you should include a clear overview of your business, including your mission statement, target market, and unique selling proposition. Additionally, you should provide detailed financial projections and a breakdown of how the funding will be used. It’s also important to include any potential risks and how you plan to mitigate them. Finally, make sure to include information about the owners and management team, as well as any previous successes or experience in the industry.

Overall, a successful funding request will provide potential investors with a comprehensive understanding of your business and its potential for growth and profitability.

What are some common mistakes to avoid when creating a funding request?

One common mistake to avoid when creating a funding request is being too vague or generic. Investors want to see a clear and detailed plan for how their money will be used and how it will benefit the business. Another mistake is being unrealistic with financial projections or underestimating potential risks. It’s important to be transparent about potential challenges and how you plan to overcome them.

Finally, it’s critical to avoid making unrealistic promises or overhyping the potential for success. Be honest and transparent about your business and its potential, and provide realistic projections and goals that investors can feel confident in.

What are some strategies for making a compelling funding request?

One key strategy for making a compelling funding request is to clearly articulate your unique selling proposition and what sets your business apart from competitors. Investors want to see what makes your business special and why it has the potential for success. Additionally, providing detailed financial projections and a clear plan for how the funding will be used can help investors feel confident in your business.

It’s also important to have a strong team in place and to highlight their experience and qualifications. Finally, be passionate and enthusiastic about your business and its potential. Investors want to see that you are committed and driven to make your business a success.

What are some potential sources of funding for a business?

There are several potential sources of funding for a business, including angel investors, venture capitalists, and crowdfunding platforms. Angel investors are typically high net worth individuals who invest in early-stage startups, while venture capitalists are professional investors who provide funding to high-potential businesses in exchange for equity.

Crowdfunding platforms allow businesses to raise funding from a large number of individuals, typically through online platforms. Additionally, traditional bank loans and lines of credit may be an option for established businesses with a strong credit history.

How can I increase my chances of securing funding for my business?

There are several strategies for increasing your chances of securing funding for your business. One key factor is having a strong business plan that clearly articulates your vision and potential for success. Additionally, having a strong team in place and highlighting their experience and qualifications can help investors feel confident in your business.

Networking and building relationships with potential investors can also be helpful, as can having a clear understanding of your target market and how to reach them. Finally, being flexible and open to feedback and advice from investors can help build trust and increase your chances of securing funding.

How to Write a Business Plan Funding Request by Paul Borosky, MBA.

To create a compelling funding request, it’s important to clearly define your business goals, target market, and competitive advantages. You should also provide detailed financial projections and a breakdown of how the requested funds will be used to achieve your objectives.

Remember, a well-crafted funding request not only helps you secure funding, but it also serves as a roadmap for your business. By taking the time to create a thorough and persuasive funding request, you can set your venture on the path to success.

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How to create a funding-request business plan

If you’re ready to launch a new business, you have to know how to ask for funding. Even the most entrepreneurial spirits understand the value of planning, especially when it comes to convincing investors and banks. There are many kinds of business plans , but some have a special section dedicated to funding requests.

What to include in your funding request business plan

• Start planning your business’s financial future

For more detailed funding requests, you’re convincing investors and banks your business is worthwhile. Seeking out sources of external financing requires extra work. With nearly three-fourths of new businesses funded by business loans, credit cards, and lines of credit, you need to know how to ask for funding.

Read on and discover everything you need to include for your funding request business plan. By the end of this guide, you’ll have every important funding detail covered to win investors over.

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Lengthy business plans include many things. Some plans are shorter and more of an overview, while other plans are more detailed. For funding requests, you’ll need to deep dive into each section of your outline, with an emphasis on financial details.

A funding request highlights both your current financial situation and future goals with each aspect of your plan. The financial data included in a funding request is broken up over other parts of your business plan, including:

Business summary

Amount requested, purpose of funding, financial data.

Aside from current and future financial needs, these sections clarify other possible sources of funding. After securing funding, you can always update your funding request for future requests.

Your funding request business plan may be a standalone document. If not, you’ll need to include a summary of your business. This summary explains what your business does.

It also establishes your operating location(s), what goods or services you offer, and who your customers are. If your business is incorporated, you’ll also define the type of corporation in this section, its owners, and key stakeholders. Feel free to list any successes or accomplishments if your funding request is for a business expansion.

Financial projections or forecasts are critical for a funding request business plan. If you’re unclear about how much money you’re requesting, now’s the time to crunch those numbers. Make sure to plan your amount along a timeline, too.

Consider how much financing you need for the initial growth period of your business. Then, think about what you’ll need potentially years down the road—the more clarity in your planning process, the more accurate your funding request.

Make sure you clearly define the type of funding you need, too. There’s a big difference in the requirements between a loan or investment, especially in payback and usage terms.

Explaining how you’ll use any loans or investments is a critical part of asking for funding. If you need extra working capital to expand your business, explain it. If you want to pay off a high-interest loan, purchase new equipment, buy a building, etc., describe this purpose.

The clearer picture banks or investors have of your financial motivation, the more convinced they should support your business. Planning out every anticipated need also helps you  think ahead for your business’s future growth.

Easily the most important part of your funding request business plan, financial data is critical. Any current and future funding information should be quantified and explained in this section. Let’s further explore which elements are part of this section.

• Balance sheet: a statement of assets, liabilities, and capital with past income balance and expenses
• Breakeven analysis: when you’ll cover all your expenses and begin profit generation
• Income statement: information on the income and expenses covering a specific period (i.e., profit and loss)
• Cash flow statement: the amount of cash on hand and spent during a specific period

Information like this can also help your financial projections or forecasting . When you request a certain amount, projections can help you assess current and future needs. The clearer your business growth timeline, the easier it is to estimate future needs.

Start planning your business’s financial future

With a better understanding of how to ask for funding, it’s time to start planning. Setting timelines is only a small part of building your company’s future. If you’re unclear before you create a funding request, you’ll have a better understanding of where your business can move forward.

Outlining payment timelines and planning your company’s financial future isn’t the only way to think ahead. If you truly plan for the long-term, you can also consider things like an exit strategy. A succession plan can even include the transfer of ownership much farther down the line.

You may not be anywhere near this kind of planning yet, but it’s a great way to consider a healthy work-life balance, too. How far ahead you plan can impact more than your business growth but your personal growth, too.

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As an animal lover, you’ve likely dreamed of working with animals for a living. Perhaps you’ve applied to work at an animal shelter or doggy daycare center. If you want to care for pets, you don’t have to wait to be hired by someone. Plenty of animal lovers start their own grooming salons or pet daycare center. Whether you can start your business at home or a licensed facility depends on the legal requirements in your state. But you can still get started on your business with the help of some useful products. If you’re planning to start a business that serves animals or already have a business of your own, you might consider incorporating some practical pet equipment to get you started.

It’s important that your business evokes feelings of calm and safety for your furry clients. Pet owners might be more inclined to support your business if it has a professional, yet inviting environment that’s suitable for their pets. Having a spacious and organized space can help anxious pets get more acclimated during their stay. With the help of these handy pet tools, you can bathe and groom your furry friends without the fuss. They’re functional and affordable so not only will they benefit your customers, but they’ll benefit your wallet as well. Make your new pet business one where pet owners and pets can feel safe and excited to visit.

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You enjoy an easy and relaxing life; every person feels the same way. You are officially working at home while you are already a full-time parent. You work as an event planner, and you know what is best for people. It is human to ease your mind, and it depends on what eases your mind. It is also human to need items to start your new path as a new parent, college student, or moving to a new home. The positive changes are a part of you are, and it is up to you on which path you take. If you prefer, you can even take all three. You require the necessities to continue your new chapter.

The five supplies are the introductions to the new chapters of each person’s life. It is the items for your new home, apartment, or dorm room. You would enjoy your next chapter and have the supplies that ease you into the next chapter. The string light poles are for the backyard you always wanted. The travel bartender kit is for those friends you spend all night talking about life. The light clip hooks will keep your lights organized and add that glowing light to your room. The sliding barn door kit is for someone trying to create the best celebration for their family or friends. The noise-canceling muffs will help ease your baby into a deep slumber with any disturbances.

The yard is a person's space, and it is therapeutic to take in that fresh earthy air. People enjoy spending time outside so much that they treat it like a room. The five items listed below help you create the backyard they have been dreaming about for a long time. Their backyard is the area where they can clear your head, meditate, breathe, and relax in their space. They need to take in the beauty of nature and have what they need to fulfill that peace of mind in your backyard. The backyard is the place of sanctuary.

It will benefit your peace of mind to create a hobby for yourself to connect to nature and create your business. It is important, to stabilize the reconnection to nature in their backyard. The listed above items would make their outdoor experience in their home more relaxing and well organized. Organization and decorative items will create the dream yard; they have always wanted. The backyard is the perfect area for birthday parties, family gatherings, and even late-night parties with their friends. Personality, I enjoy sitting out in my backyard. It is the yard that helps me keep calm. I learn to connect myself to nature.

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6 Effective Funding Strategies for Startups Navigating startup financing is complex. Entrepreneurs find themselves at the crossroads of innovation and survival, where a single decision can either fuel their dreams or extinguish their aspirations. Here we look at six ways you can finance your startup to support your business for long-term success.

By Nicholas Leighton • Apr 18, 2024

Key Takeaways

• Beyond personal investment and loans, startup funding options include venture capital, government incentives and strategic partnerships.
• Emerging financing methods like ISAs and blockchain offer innovative alternatives but come with their own set of challenges.

Opinions expressed by Entrepreneur contributors are their own.

For entrepreneurs, launching a new startup is an exhilarating experience. It's what we live for. One of the biggest hurdles of starting a new venture is making sure the business has enough funding to not only keep the doors open but also invest in future growth. Unfortunately, nearly 40% of businesses fail because they run out of cash.

Without proper funding, it's impossible for startups to invest in the right technology , equipment, product development and other resources they need to expand and grow. For this reason, entrepreneurs must have a strategy in place to secure the funding they need to unlock the full potential of their business.

Traditionally, most small business owners fund their startup in three ways — personal funds, loans from friends or family, or a bank loan. While these are good options, there are a number of other effective ways to get funding in today's business world.

Related: 7 Ways to Fund Your Startup in 2024

1. Venture capital

Venture capital seems to be one of the most common buzzwords in the startup world — and for good reason. In addition to cash injections in the business, venture capital often comes with strategic guidance and industry connections. The challenge is that landing a VC deal is extremely difficult. Only 5 out of every 10,000 startups will successfully secure venture funding. Entrepreneurs will need to prove themselves through rigorous due diligence, relinquishing partial ownership and living up to high growth expectations.

2. Government grants and incentives

There's nothing better than free money for an entrepreneur. To help encourage business growth in their area, many state, local and federal agencies offer grants, incentives or tax breaks to businesses that meet certain criteria such as operating in a specific industry. Securing government funding can be time-consuming and come with strings attached, so entrepreneurs should carefully consider their options before applying for government funding.

3. Strategic partnerships

Financial resources don't always need to be in monetary form. Forming a strategic partnership with a complementary startup can enhance growth by providing access to a pool of shared resources, expertise and market reach. The right strategic partnership can enable an entrepreneur to accelerate growth without putting a financial strain on the business. For the partnership to work, both entities must work closely together to ensure their goals, values and expectations are aligned.

Related: Want to Grow Your Business? Here's Why You Need Strategic Partnerships to Succeed.

4. Income Share Agreements (ISAs)

The downside to raising capital through traditional debt financing is that it requires the business to accrue debt with interest. To avoid over-leveraging the business, ISAs offer an innovative alternative. Under this model, investors provide funding in exchange for a percentage of the startup's future revenue. While this does offer flexibility and allows investors and entrepreneurs to share in the incentives, ISAs may come with strict milestones that must be reached within a specific timeframe.

5. Crowdfunding

Crowdfunding is a method of funding a business or venture by receiving small amounts of money from a large number of people who believe in the project. While crowdfunding can be an effective way to raise capital, it will require the business to convey its brand through compelling storytelling, strategic marketing and aggressive promotion.

In addition to financial resources, crowdfunding can also help the business build an excited and loyal community around the company's products and services. It can also simultaneously validate if there is demand in the market for your business early in the startup process.

6. Blockchain-based financing

Blockchain technology has unlocked new avenues for fundraising, including tokenization and decentralized finance (DeFi). These innovative approaches enable startups to access capital in a decentralized and transparent manner, separate from the traditional banking sector. It's important for entrepreneurs to keep a pulse on this trend as the regulatory landscape is always changing and there is inherent risk with blockchain-based financing.

Related: Decentralized Venture Capital Will Transform Startup Investing Forever

Securing the funding you need for your business may require a lot of time and effort. By exploring a range of funding strategies — from venture capital to blockchain-based financing — entrepreneurs can optimize their chances of success. There are also pros and cons to consider with each of these options. If possible, it's wise to adopt a strategy of diversifying funding to mitigate or reduce any potential risk. As you embark on your entrepreneurial journey, you might consider enlisting the guidance of a strategic business coach to help navigate the nuances of startup funding and propel your venture toward success.

Entrepreneur Leadership Network® Contributor

Best-selling author, speaker & business owner executive coach

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Business Plan Section 8: Funding Request

These guidelines will help you prepare a funding request to present to a potential lender alongside your loan application.

We’ve talked before about the benefits of having a business plan for every business, but the truth is, most companies don’t put one together until they want to apply for funding, whether from a bank or investor. Sometimes, even if you don’t need a full business plan when applying for a loan, you will be asked for a funding request. You can also follow the guidelines below to prepare a stand-alone proposal to present to a potential lender with your application.

If the purpose of your business plan is NOT to get funding, feel free to skip this section.

As we’ve said before about writing a business plan, it’s important to keep your audience in mind. You can certainly prepare different versions of your funding request depending on whether you’re applying for a loan or approaching an investor. The terms of each would be different, and you might be looking for different amounts of money or types of funding, especially if you’re approaching several potential partners.

Be clear about whom you’re directing the request to, and think about the questions they might have and what they would want to see. Make sure you’ve done your homework regarding the costs involved with your plans. This is where the financial section of your plan will work hand in hand with this one. Be consistent with your numbers, and ask for enough to cover your needs fully so you don’t fall short and remain unable to complete your goals. At the same time, don’t ask for more than you need.

What to Include in Your Funding Request

1. a summary of the business.

If the request is part of your business plan, you will have already put together all the information found in a business summary. If you’re creating a funding request as a stand-alone document, explain what the company is, where you’re located, what you sell or what services you offer, and who your customers are. Mention whether you’re incorporated, and if so, what type of corporation it is, along with who the owners and key staff members are. Briefly list your business successes and accomplishment thus far.

2. How much money you’re requesting

How much cash are you looking for now, and if you anticipate this being the first part of an ongoing growth plan, how much more money do you plan to request over time? What would the specific timeline look like? The Small Business Administration suggests thinking as far as five years down the road when putting your funding request together. Also spell out what type of funding you’re looking for, whether a loan or investment, and the terms you’re asking for. (As we suggested above, you can put together different versions of the request for different types of funding.)

3. What you will use the money for

Do you need some extra funds for working capital to buy more inventory? Are you paying off a high-interest loan? Buying a building, new equipment, or another company? Expanding your advertising campaign, or hiring more staff? Whatever it is, explain how much each aspect will cost.

4. Financial information

This will be the heart of the financial information section of your business plan , but you need to include it here if you’re putting together a stand-alone funding request.

You’ll need historical data on the company (if it’s an established business), like income statements, balance sheets, and cash flow statements for the last three to five years. If the funding request is for a loan that requires collateral, document what you have to offer. If you’ve invested your own money in the company or there are other investors, state that along with how much.

Offer realistic projections for the future, and explain how this new funding would help you reach those goals. Prepare yearly forecasts for income, balance sheets, cash flow and capital expenditure budgets for the next five years. Be even more specific for the first year, with projections for each month or quarter.

You also need to cover how you plan to pay off the debt, or what kind of return on investment you can offer a potential investor. Potential funders will pay particular attention to this, wanting to maximize their gains and minimize their risk as much as possible. If the plan is targeted to investors, what would their exit plan be? Can they cash out in a specific number of years? Do you plan to go public and offer stock?

Finally, address anything that might affect your ability to repay, whether positively or negatively, such as being acquired, buying out another business, relocating, etc.

Getting money to fund your business may very well be the point of creating your entire business plan, so take the time to carefully prepare your funding request, making sure to include all the information a decision-maker will need.

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Creating a Strategic Funding Plan for Your Business

1. defining your business's funding needs, 2. developing a strategic approach to funding, 3. identifying potential funding sources, 4. crafting a compelling funding request, 5. building a strong support network, 6. managing the funding process, 7. monitoring your progress and evaluating results, 8. adjusting your plan as needed, 9. celebrating your successes.

It is no secret that small businesses have a hard time securing funding. In fact, according to a report by the National small business Association, only about half of small businesses that applied for funding were approved for a loan or line of credit in 2017. This leaves many small business owners wondering how they can create a strategic funding plan that will increase their chances of getting the funding they need.

There are a few things that you will need to take into consideration when creating your strategic funding plan. The first is to define your business's funding needs. This can be done by creating a list of all of the expenses that your business will have in the next year. This should include things like rent, salaries, inventory, marketing, and any other costs that you can think of. Once you have a good understanding of your business's expenses, you can start to look for ways to reduce them.

One way to reduce your expenses is to negotiate better terms with your suppliers . If you are paying too much for the products or services that you are buying, you may be able to get a lower price by negotiating with the supplier. Another way to reduce your expenses is to cut back on some of the non-essential costs that your business has. This could include things like entertainment expenses, travel costs, and office expenses.

Once you have a good understanding of your business's funding needs and how you can reduce your expenses, you can start to look for sources of funding. There are a few different options that you can explore, such as bank loans, venture capital, and government grants. Each of these options has its own set of benefits and drawbacks, so you will need to carefully consider which one is right for your business.

If you are having trouble securing funding from traditional sources , you may want to consider alternative financing options such as crowdfunding. With crowdfunding, you can raise money from a large group of people who are willing to invest in your business. This can be a great option if you have a solid business plan and a product or service that people are interested in.

Once you have found a few potential sources of funding , you can start to put together your strategic funding plan. This should include a detailed budget that outlines all of your business's expenses and how you plan on funding them. You should also create a timeline for when you expect to receive the funding and how you will use it. Having a well-thought-out plan will increase your chances of getting the funding you need to grow your business .

Let me say that I think the economic history of the last 150 years clearly shows that if you want to industrialize a country in a short period, let us say 20 years, and you don't have a well-developed private sector, entrepreneurial class, then central planning is important. Manmohan Singh

In order to ensure your business has the best chance for success , it is important to develop a strategic approach to funding . This means thinking about the big picture and how all of the pieces fit together.

One of the first steps is to identify your goals. What do you want to achieve with your business? Once you have a clear idea of your goals, you can start to develop a plan for how to achieve them.

One important aspect of this planning process is to consider the different types of funding that are available. There are many options, including loans, investment capital, and government grants. Each has its own advantages and disadvantages, so it is important to carefully consider which option is best for your business.

Another important consideration is timing. When is the best time to seek funding ? It is often best to wait until you have a solid business plan in place and you have some early success to show potential investors. However, if you need funding to get your business off the ground , you may need to seek it out earlier.

Once you have a good understanding of your funding options and your timeline, you can start to develop a more detailed plan. This plan should include a budget and a timeline for seeking and acquiring funding. It should also identify the specific sources of funding that you will pursue.

developing a strategic approach to funding can be complex, but it is an important part of ensuring the success of your business . By taking the time to carefully consider your options and develop a plan, you can increase your chances of getting the funding you need to achieve your goals.

We need to encourage investors to invest in high-technology startups. James Dyson

As a business owner, you know that funding is essential to keeping your company afloat and growing. But where do you start when it comes to creating a strategic funding plan?

There are a number of potential sources of funding for businesses, both traditional and non-traditional. To create a strategic plan, you'll need to identify which sources are the best fit for your company.

One of the most common sources of funding for businesses is bank loans. If you have a strong credit history and a solid business plan, you may be able to qualify for a loan from a bank or other financial institution .

Another option is to seek out investors. This could include family and friends, venture capitalists, or angel investors. If you go this route, you'll need to have a strong pitch to convince potential investors to put money into your business.

You can also look into government grants or loans . These can be a great option for businesses that are working on innovative or socially responsible projects .

Finally, don't forget about crowdfunding. This is a relatively new option, but it's become increasingly popular in recent years. With crowdfunding, you can raise money from a large number of people, typically through an online platform.

Once you've identified potential sources of funding, you can start to create a more detailed funding plan. This should include a timeline for when you'll need the money and how much you'll need to raise. It's also important to have a backup plan in case your first choice doesn't work out.

Creating a strategic funding plan can be daunting, but it's essential for the success of your business. By taking the time to identify the best source of funding for your company, you can ensure that you have the money you need to keep your business running smoothly .

Securing early funding doesn't have to be difficult

FasterCapital helps startups in their early stages get funded by matching them with an extensive network of funding sources based on the startup's needs, location and industry

When seeking funding for your business , it is important to remember that you are essentially asking someone to invest in your company. As such, your funding request should be carefully crafted in order to give potential investors the greatest possible chance of seeing a return on their investment.

There are a few key elements that should be included in any funding request in order to make it as compelling as possible. First, it is important to clearly articulate the problem that your business is solving. Potential investors need to see that there is a real need for your product or service in the marketplace.

Second, you should explain how your business plans to solve this problem. This should include a detailed explanation of your product or service and how it will address the needs of your target market.

Third, you must demonstrate that you have a solid plan for growing your business . This includes outlining your marketing strategy and showing how you plan to scale your operations in order to meet the demands of a growing customer base .

Finally, you should provide financial projections that show how much money you expect to generate in the future. This will give potential investors an idea of the potential return on their investment.

By including these key elements in your funding request, you will increase the chances of securing the funding you need to grow your business.

Don't know how to start building your product?

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When it comes to business, it's not all about the money. In fact, one of the most important aspects of any successful business is building a strong support network. This includes family, friends, co-workers, mentors, and even strangers.

Why is a strong support network so important? First, it provides you with a sounding board for your ideas. It's always helpful to have someone to bounce ideas off of, and a supportive network can give you that. Second, a supportive network can provide you with invaluable resources, whether it's information, connections, or even just moral support.

Third, and perhaps most importantly, a supportive network can help you weather the tough times. Every business goes through rough patches, and it's during those times that a supportive network is most helpful. They can help you keep your head up and remind you of why you're doing what you're doing.

So how do you go about building a strong support network ? Here are a few tips:

1. Get involved in your local business community. There are often networking events and other opportunities to meet other business owners and professionals in your area. Attend as many of these as you can and get to know people.

2. Join relevant online communities and forums . There are often online communities for different industries and businesses. These can be great places to meet people and learn about resources that can help you.

3. Attend industry conferences and events. This is a great way to meet people in your industry and learn about the latest trends and developments .

4. Get involved in social media. Social media is a great way to connect with people, both in your industry and outside of it. Use it to build relationships and learn about new opportunities.

5. Be generous with your time and knowledge. When you help others, they are more likely to help you in return. So offer your help and advice freely, and you'll be surprised at how many people are willing to reciprocate.

Building a strong support network takes time and effort , but it's worth it. A supportive network can provide you with invaluable resources, help you weather the tough times, and even give you a sounding board for your ideas. So get out there and start building those relationships!

Building a Strong Support Network - Creating a Strategic Funding Plan for Your Business

It can be difficult to get started when you are looking for funding for your business. You may have a great business idea, but not have the funds to get it off the ground. The good news is that there are a number of ways to get funding for your business . The first step is to create a strategic funding plan.

There are a few things to consider when creating your plan. The first is to identify your goals. What do you want to achieve with your business? What are your long-term goals? Once you have identified your goals, you can start to look for sources of funding.

There are a number of sources of funding for businesses. The most common are banks, venture capitalists, and angel investors. Each has their own requirements and process for funding businesses. It is important to research each option to see which one is the best fit for your business.

Once you have found a few potential sources of funding, you need to create a pitch deck. This is a document that outlines your business plan and presents it to potential investors. Your pitch deck should include information on your business model, your target market, your competitive advantages, and your financial projections.

After you have created your pitch deck, you need to start pitching to potential investors . This can be a daunting task, but it is important to remember that you are presenting your business to people who are looking to invest in businesses. They want to see a return on their investment, so you need to be able to show them how your business will make money.

Once you have secured funding for your business, you need to start working on your business plan. This document will outline how you will use the funds you have raised to grow your business. It is important to remember that your business plan should be flexible. As your business grows, you may need to adjust your plan.

After you have created your business plan, you need to implement it. This means putting together a team of people who will help you execute your plan. It is important to remember that not everyone on your team needs to be an expert in every area of your business. You just need to have a group of people who are willing to work together to help you reach your goals.

If you follow these steps, you will be well on your way to creating a successful business . Remember, it takes time and effort to succeed in business. But if you are willing to put in the work, you can achieve great things.

As your business grows, so will your need for funding. To ensure that you have the money you need to keep your business running smoothly, it's important to create a strategic funding plan. This plan should include both short- and long-term goals, as well as a system for monitoring your progress and evaluating results.

One of the first steps in creating a strategic funding plan is to assess your current financial situation . This will give you a better understanding of how much money you need to raise and what kind of timeline you're working with. Once you have a clear picture of your financial situation, you can start setting fundraising goals.

Your fundraising goals should be specific, measurable, achievable, relevant, and time-bound. In other words, they should be SMART goals. For example, a goal might be to raise $50,000 in seed funding within six months.

To reach your fundraising goals , you'll need to develop a fundraising strategy. This strategy should include a mix of different fundraising activities, such as pitching to investors, applying for grants, and running crowdfunding campaigns.

Once you've started implementing your fundraising strategy, it's important to monitor your progress and evaluate your results. This will help you see what's working and what's not, and make necessary adjustments to your plan.

Monitoring your progress can be as simple as keeping track of the money you've raised and the number of investors you've pitched to. You can also track the results of your crowdfunding campaigns and grant applications.

Evaluating your results is a bit more complicated. In addition to looking at the money you've raised, you should also consider how much time and effort you've put into your fundraising activities. If you're not seeing the results you want, it may be time to make some changes to your strategy.

Creating a strategic funding plan is an important step in ensuring that your business has the money it needs to grow and thrive. By setting SMART goals , developing a fundraising strategy, and monitoring your progress, you can make sure that your business always has the funds it needs to succeed.

As your business grows and changes, your funding needs will inevitably change as well. That's why it's important to revisit and adjust your funding plan on a regular basis.

There are a few key things to keep in mind as you adjust your plan. First, don't be afraid to change your sources of funding as your needs evolve. If you're relying too heavily on one source of funding, you may find yourself in a tough spot if that source dries up.

Second, always be prepared to pitch your business to potential investors. Even if you're not actively seeking investment, it's important to be able to articulate your business's value proposition and funding needs in case an opportunity arises.

Finally, don't be afraid to ask for help from your network of family, friends, and colleagues. They may be able to provide valuable insights or even connect you with potential investors .

By regularly revisiting and adjusting your funding plan, you can ensure that your business has the resources it needs to thrive.

As your business grows, it's important to take time to celebrate your successes. Doing so not only gives you a much-needed break from the day-to-day grind, but it also allows you to reflect on how far you've come and set your sights for the future.

One of the best ways to celebrate your success is to create a strategic funding plan for your business . This will ensure that you have the resources you need to continue growing and achieving your goals.

1. Define your goals.

Before you can start raising funds, you need to know what you want to use the money for. Do you need to hire new staff? expand your product line ? Open a new location? Whatever your goals may be, make sure they are specific and measurable.

2. Research your options.

There are a variety of ways to raise funds for your business . You can take out a loan, issue equity, or sell debt. Each option has its own advantages and disadvantages, so it's important to do your research before deciding which one is right for you.

3. Create a timeline.

Once you've decided how you're going to raise the money, you need to create a timeline for doing so. This will ensure that you stay on track and reach your goals in a timely manner.

4. Set a budget.

In order to ensure that you don't overspend, it's important to set a budget for your fundraising efforts. This will help you keep track of your expenses and make sure that you don't put your business in financial jeopardy.

5. Track your progress.

As you work towards raising the funds you need, it's important to track your progress. This will help you stay on track and make adjustments to your plan as necessary.

By following these tips, you can develop a strategic funding plan that will help you achieve your business goals . So what are you waiting for? Get started today!

Celebrating Your Successes - Creating a Strategic Funding Plan for Your Business

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How to Write an Online Business Plan in 2024

Written by Vanessa Petersen on July 26, 2023 Blog , Sell Online .

You’ve committed to turning your ecommerce or online business idea into something real. You want your small business to produce revenue and change the course of your life, but what’s your first step in realizing your dream? Developing a plan. If you’re not sure about how to write an online business plan, you’ve come to the right place.

One of the most essential tasks involved in starting any kind of business is to write a business plan. An online business plan won’t look that different from a traditional business plan and will include many of the same elements.

In this post, we’ll show you how to write an online business plan, including all the components and sections. We’ll also walk through how WooCommerce can help you put your plan to action and achieve your business goals.

Why write a business plan? 

Starting your own business is a great experience and something that will shape your life, fill you with self-confidence and independence, and inspire other people around you. A new business is also a serious endeavor that will take time, money, sweat, lots of decisions, and a degree of risk.

A traditional business plan template helps you document and keep track of your business goals, challenges, opportunities, and all the steps and processes involved with making your idea work. It will help you conduct thorough market research and set you up for success.

When you write a business plan, it can confirm that you’ve found the best online business to start , or provide clarity about the need to pivot.

It details all the things you will need to do in order to successfully launch and grow your business, and may include revenue projections, timelines for specific goals, concept art for products, and architectural drawings for any brick and mortar aspects of your business. 

Business plans help create a structure for your company’s development and keep you grounded in reality, focused, and not distracted by less important matters. 

If you have more than one person helping run the business, the business plan also keeps everyone unified around the same set of goals and objectives. 

Another reason to write a business plan is for situations where you are presenting your idea to someone else and asking them to invest. In that scenario, your business plan is also a sort of sales document. It makes the argument for why your business idea is so good and well-considered that an investor should want to be a part of it. 

But even if you’re self-funding your entire business — which is more common with online businesses — you still want to write the plan for the reasons given earlier.

The benefits of running an online business

Starting an online business or ecommerce store offers many of the same great benefits as any other business, but without as much risk. If you’re thinking of starting a business, here’s why an online one is a great option:

It has low startup costs

Without a storefront, you eliminate so many costs of running a business. With all the bills that come with having property — like rent, parking, furnishings and decor, etc. — there’s a much higher investment required to start a brick-and-mortar-based business. Online businesses still have startup costs, but they are much lower. 

It gives you freedom over your schedule

With an online business, you have more freedom to set your own hours, because you don’t always have to be open during the usual times. You can build your business to suit the lifestyle you want. Rearrange your time to get things done in the fastest possible way and take time off when you need it. 

You can start small

Once you have a location, it’s yours, and you have to make it work. With an online business, you can start very small, offering just a few products or even just a single service. You can more easily test the waters without making huge commitments with inventory, and other physical investments.

You can more easily pivot

If your online or ecommerce business doesn’t do as well as you expected, it’s easier to pivot and adapt to something new because you haven’t committed so much to making your original idea work. There are many business success stories where the business owner adjusted their idea after gaining some experience, and then it took off. It’s a lot easier to do that when you aren’t tied to a physical location.

But, there’s one thing online businesses have in common with every other type of business: You need a robust business plan to help guide your idea from concept to a successful reality that makes money and fulfills your dreams and goals. 

So, let’s get into business planning. 

How do I write my own online business plan?

Most formal business plans and business plan templates include seven sections, plus an executive summary. You’ll need to keep in mind who you’re writing your business plan for. If you are taking this to potential investors or will be seeking a business loan, your business plan needs to sell the idea of your business as a great investment opportunity and communicate the skills, expertise, and commitment you personally bring to the table. 

Here are the key sections of a traditional business plan format:

• Executive summary
• Company description
• Market analysis
• Organization and management
• Service and product line
• Sales and marketing plans
• Financial projections
• Funding request (if working with investors or partners)

Here’s a brief look at each step of creating an online business plan:

Draft an executive summary

In the executive summary, the first section of almost every business plan template, you’ll present your vision and focus on building excitement. If the business plan is a sales document, the executive summary is the lead. It gets the reader engaged and excited to hear more. 

Your executive summary should achieve two goals:

• Deliver the basic facts about your business
• Motivate the reader to keep going and get them excited about your idea

What facts should you include? Whatever helps the reader understand your business idea. Describe the industry and niche. Mention the target market. Briefly state the needs or problems your products and services will be solving. Touch on the potential for growth in terms of revenue and customers. 

For motivation, describe your mission statement and company values. What will set you apart from the competition? What is your value proposition as a business owner? What makes you different? Again — keep this brief. You’ll elaborate later. 

It might be a good move to write all the other sections first, then finish with the executive summary so it will be the most concise and best version of how you describe your business.

Write a company description

Here, you’ll give a brief overview of your company. What are your strengths, skills, and areas of expertise as a business owner that will position you for success? If you have a compelling story behind why you’re starting your business, you can include that too.

Conduct a SWOT analysis 

If you’re not sure where to start, consider doing a SWOT analysis , which is a diagram outlining your strengths, weaknesses, opportunities, and threats. 

It’s a common part of many business plans and will help paint a realistic picture of what your business can achieve, and what stands in the way. You won’t include all of this in the company description, but your strengths and opportunities may fit here. 

Create a mission and vision statement

The company description is also the place to create a mission statement and a vision statement. What’s the difference between these? 

The vision is where you’re going, the mission is how you’ll get there. A vision statement paints a picture of a future reality for your customers and perhaps the world at large, as a result of your company’s influence. A mission statement expresses how you will achieve that.

The company description can elaborate on your vision and mission beyond just a single sentence, and later you can fine-tune what you write into a succinct pair of statements. Feeling some writer’s block? See company description templates by industry for some inspiration.

Include any unique attributes

If your company will involve particular attributes such as manufacturing, supply chains, dropshipping, affiliates, coaching or advising, online courses, or other relevant particulars, include that in your company description, too. 

State your business location, industry, niche, and other details

Also, state the location of your business, even though it’s online. Name your industry and niche target market again, and describe the nature of your company. For example, is it an ecommerce business, a consulting firm, delivery service, wholesale, or ad-based website? These are just some of many types of online business structures. 

You may also want to include whether your business is in any special class of business that might position it for special loan or grant opportunities like women-owned businesses or veteran-owned businesses.

After reading your description, readers should have a good understanding of what your business is about, why it exists, and how it works. Here’s a detailed look at company descriptions , with an example.

Perform a market analysis

A market analysis uses industry research to assess the scope of your business’s target market and describe the current competition in your industry. It can help you estimate the potential for success and prepare for the challenges you may face when you launch your online business or ecommerce shop.

Doing this research, and including it your business plan, can also help you:

• Identify industry trends
• Pinpoint opportunities 
• Diminish risks and reduce costs
• Generate new ideas for products and services
• Learn from the failures and shortcomings of your competitors
• Find ways to stand out from your competitors
• Discover new markets
• Refine your marketing plans

Now let’s dig into the elements involved in a thorough market analysis.

Understand your audience

Here, you will explain in detail who your target customers are and why they want or need what you’ll be selling. What problems or needs does your product solve? What will motivate people to buy from you? And why can’t they get it somewhere else just as easily? An ecommerce business competes against other ecommerce businesses as well as brick-and-mortar stores and shopping malls. Stores with omnichannel strategies compete with both. Why would someone choose you?

Share your key customer demographics, psychographics, and interests. Who will you be serving? What drives them? 

What are their values? If your product, service, or personal brand will appeal to a customer segment that also shares particular values, that’s a strength, not a weakness, and you can use that to win them over. 

Perform customer segmentation

Break down different categories of target customers your business plans to serve. One category could be age. Another might be life situations such as retirees, parents, divorcees, or living with older relatives. You could create a segment of people with particular health conditions, or who live certain lifestyles. 

But you can also get way more specific than that. Runners are different from hikers, who are different from bikers, yoga enthusiasts, and gym enthusiasts. Different supplements, philosophies about food, motivations for eating various foods — all of these present near endless possibilities for more narrowly defining your customer segments, all under the broad category of ‘health.’ And you might serve multiple segments. 

The more customer segments you know, the more effectively you can market to them. In an online store, good product descriptions call out the various customer segments that product is designed for.

Also, give a sense of the potential size of your target market. How many people need what you’re selling? Show how this market is large enough to justify your business and drive revenue. You might do this by studying revenue reports from other companies in your industry. Or look at specific products related to yours and research their sales and revenue performance. 

You may also perform a survey of some kind, or an online quiz, and use that to express the needs your potential customers have that aren’t currently being met.

Perform a competitive analysis

Study your competition. What are they doing well? What areas are they underserving? Where are they underperforming? Make note of what other companies in your industry are struggling with or failing at so that you can deliver something more valuable and gain a competitive advantage.

It could be product quality, customer service, or selection. Maybe their ecommerce store is badly designed and hard to use. Perhaps there’s a huge industry serving the masses, but customers who have more particular tastes or needs aren’t being well-served by the big companies. Those customers might spend more on something that delivers what they really want. 

Maybe your key competition has been rocked by scandal. Maybe a company went out of business, was sold, or closed down due to retirement and there’s an opening in the market you want to leverage. 

The main point of the competitive analysis is to persuade investors that there’s an underserved market that your business plans to cater to. You must be able to promise something that no one else is currently delivering. Otherwise, why should your business exist? Put them at ease by demonstrating proper market research.

Refer to your SWOT analysis and present any potential threats from the competition here, too.

Outline management and organizational structure

Next, present your management and legal structure. Is your company an LLC, sole proprietorship, S corporation, partnership, or some other arrangement? Who’s in charge of what? If you have different departments, list out the leadership for each one. If relevant, you might even include some information about the expertise of your leaders concerning the areas under their charge and the tasks they’ll be performing.

Remember — if your business plan will be used to persuade investors to help fund your business idea, this sort of information will reassure them that your company has strong and competent leadership. 

If there’s a chain of command, use a diagram or other method for laying out who reports to whom. 

List your products and services

What are you selling? You’ll touch on this briefly in the earlier sections, but here is where you’ll expand on the details. If you have an array of similar products, such as food flavors or clothing variations, list as many as seem relevant. But focus on the spirit of the business plan — you’re simply communicating what your business is about, not listing every SKU in your projected inventory. 

Also, include information about your products such as quality, durability, expirations, patents, and whatever else will give a clear picture of what you’re selling.

For service businesses and memberships that may include multiple packages, bundles, or tiers, describe each of these so your readers get a sense of how you’ll appeal to different types of customers and price points. 

Develop a sales and marketing strategy

Having products is great, but how do you intend to sell them? How will people find your business? How will anyone know you exist? And once they know, what will motivate them to buy from you and not from your competition? What is your unique value proposition — the thing that sets you apart from your direct competitors?

You’ll need to develop an initial marketing plan to help promote your business, products, and services to your target customers.

And remember, competition isn’t limited just to other businesses. Sometimes, competition is against the customer’s time, or their budget, or mere indifference — the conflict between doing something and doing nothing. Your SWOT analysis should touch on several of these potential barriers to the success of your online business.

Your marketing plan will obviously change over time, but give your readers and potential investors a sense of how you plan to launch and grow your business. 

Discuss media channels you plan to use, such as pay-per-click (PPC) ads , social media , email marketing , affiliate marketing , direct mail, referrals, joint ventures, search engine optimization (SEO), webinars, influencer marketing , and live events. Describe the ones you actually plan to use, and explain the core strategy you’ll begin with and how you will measure success. 

Also, include a sense of your marketing budget. If you will have a dedicated marketing team, or actual sales professionals using a particular process or sales script, discuss that as well. 

For ecommerce businesses, include a discussion of how you plan to leverage platforms like WooCommerce, which features a host of extensions that can help manage your business , engage customers, save money, and promote growth .

Make financial projections

You’ve made a lot of claims in your business plan, but how will your investors be convinced of your future success? At some point, you have to show them the money. 

If this is a brand new business with no income, where will your finances come from for the first year? Give realistic financial projections for anticipated profits and losses, as well as growth expectations for the first five years. Include financial documents if you have them, including profit and loss statements, balance sheets, and cash flow statements. Include costs of employment, manufacturing, and other investments both one-time and ongoing.

Your financial projections should reference your:

• market analysis 
• anticipated sales volume 

Investors will feel more confident when they can see your business plan does not rely entirely on just one or two ‘wins.’ For example, if your entire plan hinges on selling on eBay or Amazon , what happens if Amazon suspends your store, changes the terms, or you struggle to get noticed there? 

If your plan depends on winning over a few Instagram influencers, what if they don’t come through? It’s really easy to say what you hope will happen. But actually making it happen is another thing. Business success happens more easily when you apply a multi-channel marketing and sales approach. 

Your financial projections will feel based in reality, when you can demonstrate some prior successes, either in other businesses you’ve already launched, test audiences, local sales you made, prior experience, or data from other businesses. 

Explain your funding request — if applicable

If you intend to ask investors to help fund your business idea, present your request in the final main section of your business plan. If you’ve already secured funding from other sources, include that here as well. An investor will feel better knowing they are not the only one who believes in the potential of your business. 

Will your funding request be for a one-time payment, monthly, annually, or at some other interval? How do you plan to repay their investment? Will you allow them to charge interest? How much ROI can you promise them? 

How WooCommerce can help

WooCommerce can help you build a scalable online business that supports your business plan. No matter what you’re selling, WooCommerce offers a suite of flexible tools that allows you to customize your store to meet your needs and goals. 

Here are just some of the benefits your business will enjoy when you choose to build your store with WooCommerce:

• Sell absolutely anything you can imagine . From physical items and digital downloads to subscriptions, memberships, bookings, courses, and affiliate products, WooCommerce provides everything you need. Want to run a wholesale store? You can do that, too!
• Harness the power of WordPress . Since WooCommerce is a plugin specifically for WordPress, you can take advantage of powerful features like the block editor and blogging capabilities. 
• Capture payments securely. Choose from a large number of payment gateways, from popular options like PayPal and Stripe, to more niche processors for specific locations and types of regulated products. And with tools like WooPayments , you can keep customers on-site, capture a variety of currencies, and even accept digital wallets like Apple Pay and Google Pay.
• Customize your shipping options. Offer free shipping, charge based on weight, set fixed prices, or calculate shipping costs based on real-time carrier rates. You can even use extensions like Table Rate Shipping to create complicated shipping rules based on conditions that you set. And with WooCommerce Shipping , you benefit from discounted shipping labels and the ability to print right from your dashboard. 
• Connect to your social media channels. Use extensions to sync your store with social media platforms like Facebook, Instagram, and Pinterest. You can even sell on those platforms alongside your store without having to update inventory and information manually.
• Integrate with marketing tools. Quickly connect your store to any number of marketing tools, from email platforms like MailPoet to CRMs like Jetpack CRM . You can also implement a number of marketing strategies, from abandoned cart emails to loyalty programs.
• Keep track of your numbers. Ecommerce accounting is a big part of running an online business. While you can easily view data in your dashboard, you can also sync with tools like QuickBooks to make your accountant’s life a little bit easier.
• Manage inventory. Update your inventory levels manually or connect to tools like Scanventory to sync with your warehouse. Running low or out of stock? Add a wishlist option so customers get an alert as soon as it’s available.

As you can see, WooCommerce is well-equipped to handle any type of online store and support you as you grow. Here are a few more reasons that WooCommerce should be your go-to choice for implementing the ecommerce side of your online business plan:

WooCommerce itself is free! Many extensions for WooCommerce can also be found for free in the WordPress.org plugins library or on the Woo Marketplace . If you need to start your website with a limited budget, but want to build on a platform that can grow to support a thriving, high-traffic store, WooCommerce is an excellent option.

You have full control over your store

Unlike other ecommerce solutions that are tied to the platform’s own web hosting, WooCommerce is designed to be used with WordPress along with any hosting provider of your choice. You are also free to use whatever payment processor you want without any additional fees from WooCommerce. You can also customize your site’s appearance and functionality more extensively than you can with other ecommerce platforms and with less (or no) coding knowledge.

Thousands of free and premium extensions

There are over 800 free and premium extensions for WooCommerce on WooCommerce.com alone and over 1,000 in the WordPress.org plugins library . There are also hundreds of independent developers and agencies that offer premium and custom extensions for WooCommerce so that you can customize your store with the exact features you need. 

Excellent support and large community of users

WooCommerce is used by over 3.9 million stores — 23% of all online stores worldwide . The support team is available to answer questions and the documentation library is extensive and thorough. There are also plenty of independent resources for learning how to use WordPress and WooCommerce.

Dedicate time and resources to put your online business plan in action

A successful business plan is one that empowers and guides the business owner to launch their online or ecommerce business, and possibly secure funding. But it only works if you use it.

One advantage of starting an ecommerce store or online business is that you aren’t as locked down by deadlines. With a physical location, once you start paying the rent, you better have your business plan ready to put into action. 

But the beauty of being online is that you have more flexibility on the front end. Despite having more wiggle room with your timelines, you still need to keep your momentum going forward. Staying on track with your business projects and goals is one of the keys to reaching profitability sooner and turning your business plan into reality. A few quick tips:

• Schedule your time. Block out hours and specific days to work on your business.
• Treat it like a job, not a hobby. Build on your momentum week after week.
• Always keep learning. Research your industry, competition, target audience, and potential customers. Learn marketing — you can never know too much.
• Try stuff! Take risks, make calls, create campaigns, write content.

Your business plan template should give you a concrete list of tasks and business objectives. Once you write a business plan, then you can implement it.

Frequently asked questions about writing an online business plan

What are the seven steps of a business plan.

The seven key elements of a business plan are the executive summary, company description, market analysis, organization and management, services and products, marketing plan, and financial projections. If you’re making a funding request, that would be an eighth section.

Where can I find business plan templates?

You can find a free business plan template online, for general business plans as well as for specific industries. However, since each business is different and your plan must be authentic and specific to your company — a business plan template can only get you so far. 

If you need design inspiration for your own custom business plan template or want to start with a pre-designed template that you can customize, you can purchase one for a relatively low cost through a stock resources site like Envato Market or Creative Market .

Do I need a business plan if I am already running an online business or ecommerce shop?

Business plans aren’t only for people who are launching new businesses. You can create a business plan at any time to help you maintain or change the direction of your store or just to get a better picture of the health of your business. Below are a few different types of business plans that you might want to consider for your established online business:

• Operational business plan. Outlines the structure of your business operations, staffing, and logistics.
• Feasibility plan. Feasibility plans are like mini business plans that cover new business ideas and outline steps for implementation.
• Growth business plan. This plan is for businesses that want to demonstrate opportunities and plans for growth to attract investors.
• Maturing business plan. This plan is for businesses looking to merge with or acquire other companies, significantly expand, or go public.
• Strategic business plan. Any time your business wants to shift strategies regarding products or marketing or any other major changes to your previous business plan, you’ll want to create a new strategic business plan to address your new goals and the steps involved in achieving them.

What software should I use for my online business plan?

Your business plan should include some images, graphs, and graphic elements in the layout, so you’ll want to at least use word processing software to put your business plan together. If you have access to Google Workspace, Microsoft 365, Canva, or Adobe Creative Cloud, you’ll have some other options that might lead to a more professional layout.

Here’s a list of free and paid software that can help you put together your online business plan outline:

What do investors want to see in a business plan?

The most important piece of information to show investors in your business plan is potential for profitability. Investors don’t want to throw money at a sinking ship, no matter how cool and exciting the business sounds. 

Most investors also want to make sure that they’ll see a decent return on their investment in a relatively short time period — probably around 5-7 years. How much of a return they’ll expect will depend on your industry and what kind of investor they are. 

Investors will also want to see that you clearly understand your business, your industry, and that you have concrete, actionable steps for achieving, maintaining, and growing profitability. They’ll want to make sure that the key people on your team also understand your business and the roles they play and they’ll want to see that each person has a good amount of experience in their field and the required skill sets to fulfill their job duties, if not go above and beyond. 

Any details you can include that highlight unique aspects of your business will also be important. Any area where you have a competitive edge, are offering a unique or proprietary solution, have established any celebrity endorsements, have the backing of other investors, or have secured special grants will be of special interest to investors.

Create your plan for success

Now that you understand what goes into creating a formal business plan, it’s time to write one! Take the time to think through and consider each aspect of the list included in this article, and you’ll be well on your way to finding success.

And WooCommerce is here to support your business every step of the way, with powerful and flexible tools that help your business grow. Start selling online today !

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IRS delivers strong 2024 tax filing season; expands services for millions of people on phones, in-person and online with expanded funding

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IR-2024-109, April 15, 2024

WASHINGTON — With the April tax filing deadline here, the Internal Revenue Service highlighted a variety of improvements that dramatically expanded service for millions of taxpayers during the 2024 filing season.

Through Inflation Reduction Act funding, the IRS continued to expand taxpayer service levels not seen in more than a decade with double-digit gains occurring in critical areas. Compared to a year ago, the IRS answered over 1 million more taxpayer phone calls this tax season, helped over 170,000 more people in-person and saw 75 million more IRS.gov visits fueled by a new and expanded Where’s My Refund? tool.

“Taxpayers continued to see major improvements from the IRS during the 2024 tax season,” said IRS Commissioner Danny Werfel. “A well-funded IRS is like night and day for taxpayers. With the help of more funding and added resources, service for taxpayers this filing season eclipsed levels seen during the past decade. This tax season meant real-world improvements for people looking for help, whether calling, visiting in-person or using IRS.gov.”

“We still have much more work to do, both to finish the 2024 tax season as well as put in place continued improvements made possible by Inflation Reduction Act funding,” Werfel said. “But this filing season marks another important chapter where we’ve improved service for taxpayers, continuing an accelerating trend in the story of transforming the IRS.”

Through April 6, the IRS processed more than 100 million individual tax returns. Tens of millions more will come in advance of the April deadline, the busiest time of the year for tax returns. The IRS also projects about 19 million taxpayers will file extensions, which will be due Oct. 15.

Since the start of the January tax season, the IRS has delivered more than $200 billion in refunds through early April. The average refund was $3,011, a 4.6% increase from last April’s average of $2,878.

Here are major filing season numbers in 10 key areas. These numbers, generally from late March and early April, reflect the historic 2024 tax season taking place at the IRS:

• Improved phone service . Continuing a trend seen last year following the addition of 5,000 new telephone assistors, the IRS level of service on its main phone lines reached more than 88%. That’s above the 84% level seen last year and more than a five-fold increase from the phone service levels seen during the pandemic era period, when the level of service was at just 15% in 2022.
• More calls answered. The IRS answered more taxpayer calls on its live assistor lines this year, a 16.8% increase from 2023. IRS assistors handled 7,608,000 calls, up from 6,513,000 the year before. IRS automated lines handled another approximately 7 million calls, 280,000 more than the previous year.
• Faster response times. Taxpayers waited, on average, just over three minutes for help on the IRS main phone lines. This is down from four minutes in 2023 and 28 minutes in filing season 2022.
• More callback options. The IRS offered callback options on 97% of the phone lines this filing season. The agency offered call back for over 4 million taxpayers this tax season, more than double the 1.8 million calls in 2023. This option, offered when phone lines were busy, saved taxpayers nearly 1.4 million hours of wait time on the phones.
• More in-person help. The IRS helped 170,000 more taxpayers in-person this filing season than in 2023. IRS employees at Taxpayer Assistance Centers (TACs) served 648,000 taxpayers this year, up from 474,000 in 2023, a 37% increase.
• Expanded in-person hours . The IRS added extended hours at 242 TAC locations across the nation, generating more than 11,000 extra service hours for taxpayers during the 2024 filing season. In addition to extended service hours, IRS also offered taxpayer assistance on Saturdays in more than 70 locations. These evening and Saturday hours made it more convenient for thousands of hard-working taxpayers to get help.
• Additional free help at volunteer sites. The IRS saw tax return preparation work at volunteer sites increase to more than 2.3 million returns this tax season, up 200,000 from last year following work at Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites.
• More taxpayers file for free. In addition to volunteer sites, the IRS saw more taxpayers file for free this year; in all, there were over 450,000 more returns filed between volunteer sites, Direct File and Free File. The new Direct File pilot, offered on a limited basis in 12 states, generated more than 60,000 tax returns after opening widely in mid-March. At the same time, the IRS partnership with the Free File partners offering free private-sector software via IRS.gov saw growth with more than 2 million tax returns filed, an increase of 11.2% or more than 200,000 more Free File returns than 2023 .
• Higher usage of IRS.gov. Driven by increased use of the expanded information on the Where’s My Refund? for the 2024 filing season, IRS.gov saw large increases in traffic. The website had nearly 500 million visits, an 18% increase. And Where’s My Refund? accounted for more than 275 million of those visits, up 62 million from 2023 representing a 29% increase.
• More chatbot use. The IRS saw more use of its virtual assistant tool on key IRS.gov pages. There were 832,000 uses this filing season, up nearly 150% from 330,000 uses in 2023.

“These numbers illustrate the strength of this year’s filing season, but the IRS needs to continue working hard to make more improvements and continue transforming to serve taxpayers – not just through the April tax deadline but throughout the year and into the future,” Werfel said.

With the April deadline approaching, the IRS reminds taxpayers there are many ways to get last-minute help. They can visit the special free help page on IRS.gov.

For taxpayers who need an extension of time to file their taxes, there are several options to get an automatic extension through Oct. 15. Although an extension grants extra time to file, it does not extend the obligation to pay taxes due on April 15, 2024. To avoid penalties and late fees, taxpayers who owe should pay either their full tax bill or at least what they can afford to pay by the April 15 deadline.

The IRS estimates 19 million taxpayers will file for an automatic extension.

Taxpayers in Maine and Massachusetts have until April 17 to file and pay taxes due this year. This is because these states observe the Patriots’ Day holiday on April 15 this year and April 16 is the Emancipation Day holiday in the District of Columbia.

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News Analysis

Johnson Needs Democrats on Ukraine, Handing Them Power to Shape Aid Plan

The Republican speaker’s elaborate strategy for passing a foreign aid package over his party’s objections will require the cooperation of Democrats to push it through — and possibly save his job.

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By Annie Karni

Reporting from the Capitol

Speaker Mike Johnson’s elaborate plan for pushing aid to Ukraine through the House over his own party’s objections relies on an unusual strategy: He is counting on House Democrats and their leader, Representative Hakeem Jeffries of New York, to provide the votes necessary to clear the way for it to come to the floor.

If Democrats were to provide those crucial votes, it would be the second time in two years that Republican leaders have had to turn to the minority party to rescue them from their own recalcitrant right-wing colleagues in order to allow major legislation to be debated and voted on.

Given Republicans’ opposition, Mr. Johnson will need Democrats’ support on the aid for Kyiv itself. But before he even gets to that, he will need their votes on a procedural motion, known as a rule, to bring the legislation to the floor, something the minority party almost never backs in the House.

That puts Democrats once again in a strange but strong position, wielding substantial influence over the measure, including which proposed changes, if any, are allowed to be voted on and how the foreign aid is structured. After all, Mr. Johnson knows that if they are unsatisfied and choose to withhold their votes, the legislation risks imploding before it even comes up.

The dynamic also increases the likelihood that Mr. Johnson will need Democrats again — to save his precarious speakership, now under threat from two members of his party, Representatives Marjorie Taylor Greene of Georgia and Thomas Massie of Kentucky. They are enraged at his strategy for sending aid to Ukraine and every day appear to be edging closer to calling a vote to oust him from his post.

“We’re steering toward everything Chuck Schumer wants,” Mr. Massie said on Tuesday, referring to the Democratic Senate majority leader. (Without Democratic help, Mr. Johnson could afford to lose no more than two Republicans on the rule, if all members were present and voting, or the aid bill for Ukraine would be blocked from the floor.)

Republican leaders on Wednesday released the text of the four bills that together will make up the aid package for Israel, Ukraine and other American allies, and Mr. Johnson said there would be votes over the weekend . There are still plenty of opportunities for the bipartisan coalition of support that would be needed to push it through the House to be derailed.

But Democrats had begun laying out their terms.

Mr. Jeffries told his caucus on Tuesday during a closed-door meeting that he would not be willing to support any package that included less than the $9 billion in humanitarian aid that was part of the national security bill passed by the Senate.

House Republicans previously pushed through an aid bill for Israel that omitted humanitarian aid for Gaza , and some have recently suggested that any further aid for Ukraine should be restricted to military funding. But Mr. Jeffries called preserving humanitarian aid a “red line” for Democrats, according to a person familiar with his private remarks who described them on the condition of anonymity.

“We need $9 billion in humanitarian aid,” said Representative Rosa DeLauro of Connecticut, the top Democrat on the Appropriations Committee. “That’s what is required to deal with Ukraine, Sudan, Somalia, Haiti and Gaza.”

Representative Tom Cole, the Oklahoma Republican who leads the spending panel, said on Tuesday that he expected the humanitarian aid to be included in the bill.

Democrats also made it clear that they would not support a rule that allowed Republicans a chance to attach amendments to the legislation that they consider “poison pills,” including their hard-line immigration and border security bill that would revive some of the most severe policies of the Trump administration.

Representative Chip Roy, a hard-right Republican from Texas, for one, has vented about the lack of border security measures in the foreign aid package. On Wednesday, Mr. Johnson said those provisions would be considered separately from the aid package.

For more than two decades, the “rule,” a bit of congressional arcana that few who work outside Capitol Hill ever pay attention to, was treated as a foregone conclusion and a straight party-line vote. Even if lawmakers planned to break with the party on a bill, they would stay in line on the rule to bring it up, voting “yes” if they were in the majority and “no” for the minority.

But that quaint tradition has fallen by the wayside during this Congress , as rebellious House Republicans have routinely tanked rule votes to exert their leverage and win concessions in a slim majority where they hold outsize power.

“It’s the only tool they have in the toolbox,” said Representative Tim Burchett, Republican of Tennessee. “It’s legal; it’s in the rules.”

When the procedural resistance of the hard right has threatened to scuttle legislation that Democrats consider existential — a bill to defuse the threat of catastrophic debt default, for one, or one to arm a democratic ally facing an invading dictator — they, too, have shown a willingness to break with convention on the rule.

“Every single time in this 118th session of Congress, the Democrats have put the priorities of the American people over everything,” Representative Katherine M. Clark of Massachusetts, the No. 2 Democrat, said on Wednesday.

Last year, 52 Democrats voted in favor of the rule to bring up the debt ceiling bill negotiated by the speaker at the time, Kevin McCarthy, and President Biden, helping the hamstrung G.O.P. leader push through the measure. In the end, 29 Republicans voted against the rule.

Ms. Clark called the debt ceiling crisis “completely manufactured by the G.O.P.,” just as the delay on aiding Ukraine has been.

“We provided the votes on the rule because we thought it was the right thing to do,” Ms. Clark said.

Far-right Republicans have been enraged by the results. After Mr. McCarthy struck the debt deal, Representative Matt Gaetz, Republican of Florida, said, “We’re going to force him into a monogamous relationship with one or the other,” referring to his cohort of right-wing Republicans or Democrats. “What we’re not going to do is hang out with him for five months and then watch him go jump in the back seat with Hakeem Jeffries and sell the nation out.”

Ultimately, Mr. McCarthy ended up in a relationship with no one; Democrats did not vote to save him when Mr. Gaetz called a snap vote to oust him and was joined by seven Republicans in voting for him to go.

Mr. Johnson is also walking a delicate line. He has to tend to the politics of his own fractured conference without alienating the Democrats whom he will need to pass the security package — and, potentially, to save his job.

In an interview on Tuesday morning with Fox News, Mr. Johnson accused Democrats of turning their backs on Israel and of “appeasing the pro-Hamas wing of their party.”

For now, Democrats are willing to overlook such statements and appear to be leaning toward doing what they think is right: supporting Mr. Johnson’s Ukraine aid play, and the speaker himself. While they have yet to see the plan and are reserving judgment on it, many said they would like to find a way to make it work.

“I’m more optimistic than I have been before,” Representative Hillary Scholten, Democrat of Michigan, said of the House actually moving ahead with aid to Ukraine.

Representative Jared Moskowitz, Democrat of Florida, said: “If what the speaker is bringing is the Senate bill chopped up — just procedurally different but policy-wise the same — I can’t see why we would get in the way of that.”

They are also aware that their backing, in and of itself, is a political liability for Mr. Johnson.

“There are enough who would support him if he wants it,” Representative Dan Goldman of New York said of his Democratic colleagues. But of the G.O.P. he said: “There are probably more people who would be upset if Democrats helped keep him as speaker than there are people in the Republican Party who want him to leave.”

For Mr. Johnson, he added, “there’s no good option.”

Catie Edmondson contributed reporting.

Annie Karni is a congressional correspondent for The Times. She writes features and profiles, with a recent focus on House Republican leadership. More about Annie Karni

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