writing a business plan for funding

• Search Search Please fill out this field.
• Building Your Business
• Becoming an Owner
• Business Plans

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).

MoMo Productions / Getty Images

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 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

Related Blog Post

Best Construction and Heavy Equipment Financing Loans

April 12, 2024

Discover the best construction and heavy equipment financing loans. Fuel your success with the right financial support.

Heavy Equipment Financing

Boost productivity with heavy equipment financing! Maximize efficiency and unlock long-term cost savings for your business operations.

Considerations in Forming a Limited Partnership

Discover key considerations for forming a limited partnership. From liability distribution to tax implications, make informed decisions.

What Is A Limited Partnership?

Unveiling the secret: What exactly is a limited partnership? Discover the definition, formation, and advantages of this business structure.

Top Line vs. Bottom Line in Business: What's the Difference?

Unraveling the difference between top line and bottom line in business. Understand the impact on success. Learn more!

The Bottom Line and What it Means

Unveiling the essence and importance of the bottom line in business. Discover its significance, strategies for improvement, and industry.

DBA Registration Guide

Master the art of DBA registration - your guide to legitimizing your business, building brand identity, and legal protection.

What is a DBA and When to File One For Your Business

Uncover the power of a DBA for your business! From legal implications to brand identity, learn when to file and unlock new opportunities.

Business Structure: How to Choose the Right One

Unlock business success with the best legal structure! Explore sole proprietorships, partnerships, LLCs, and corporations to make the right.

Guide to Business Structures

Your ultimate guide to choosing the right business structure - navigate the pros and cons of sole proprietorship and partnership, LLC.

Alternative Forms of Business Organizations

April 11, 2024

Discover alternative business organizations and find your perfect fit! Uncover the pros and cons of partnerships, corporations, and more.

Financing Options for Small Businesses

Discover the best financing options for small businesses. From traditional bank loans to crowdfunding and more, achieve your business goals

Non-Bank Small Business Financing Options

Discover non-bank small business financing options and power your business to new heights! Unveil the secrets of alternative financing today

Best Business Loans With No Credit Check Of 2024

Discover the top business loans of 2024 with no credit check. Unleash your potential and secure funding for your business today!

Capital Expenditures vs. Revenue Expenditures

Boost your financial IQ with a clear understanding of capital expenditure and revenue. Discover the crucial difference for smarter decision.

Gains and Losses vs. Revenue and Expenses

Gain insights into gains and losses vs. revenue and expenses. Master financial terms for better financial performance!

Revenue vs. Sales: What's the Difference?

Unraveling the distinction between revenue and sales: What's the difference? Discover the impact on business success and strategies.

Revenue vs. Profit: What's the difference?

Unlock the difference between revenue and profit! Master financial understanding for informed decisions. Revenue vs. profit.

Commercial Truck Insurance Coverage

Discover optimal commercial truck insurance coverage! From liability to cargo insurance, find the perfect protection for your business.

Commercial Truck Insurance

Demystifying commercial truck insurance: Discover the coverage you need to stay protected on the road.

What Is Equity in Business & How Do You Calculate It?

Discover what equity in business is and how to calculate it! Gain insights into maintaining equity balance and its impact on financial.

How Do You Calculate a Company's Equity?

Unraveling the mystery: Learn how to calculate a company's equity and decode its financial health.

Best Semi Truck Financing Options of 2024

Discover the top semi truck financing options of 2024! Accelerate your success with the right financing for your business.

First Time Buyer Commercial Truck Loans

Breaking barriers with first time buyer commercial truck loans. Navigate the loan process and secure your dream truck!

How To Get Zero Down Semi Truck Financing

Unlock the path to successful semi truck financing with zero down options! Discover how to get the best deals for your business.

Learn How To Get Zero Down Semi Truck Financing

April 5, 2024

Unlock the path to semi truck financing success with zero worries. Learn how to get zero down financing today!

Best Equipment Financing Options Of 2024

Discover the best equipment financing options of 2024! Explore traditional bank loans, equipment leasing, online lenders, and government.

What is an Equipment Loan and How Does It Work?

Unlock the secrets of equipment loans! Discover the process, benefits, and tips for success. Get the guide now!

Car Depreciation for Taxes

Maximize tax savings with car depreciation strategies! Learn how to optimize deductions and navigate IRS guidelines.

How To Claim Vehicle Depreciation from the IRS

Unlock savings and maximize your tax benefits with our step-by-step guide to claiming vehicle depreciation from the IRS.

How Much Does An Accountant Cost In 2024?

April 1, 2024

Cracking the code on accountant costs in 2024! Discover the average price range and tips for finding an accountant within your budget.

Best Loans for Bad Credit in March 2024

Discover the game-changing loans for bad credit in March 2024. Find the best options to unlock your financial freedom!

List of Vehicles that Qualify for Section 179 in 2024

Discover the vehicles that qualify for Section 179 in 2024. Drive your business forward with tax savings!

Guide to Small Business Loans for Veterans

Unlocking opportunities with small business loans for veterans. Navigate the world of financing and government support for veteran.

Section 179 Deduction: How It Works

Maximize your business savings with the Section 179 deduction. Discover its benefits, eligibility, and common misconceptions.

Minority Small Business Grants

Unlock financial opportunities for minority small businesses with grants. Discover eligibility, application process, and valuable resources.

What Is A DBA? Everything You Need to Know

Unlock the secrets of DBA! Discover what a DBA is, why you need it, and how to choose the perfect one for your business.

How Do Gross Profit and Gross Margin Differ?

Unraveling the finance puzzle: Discover the distinction between gross profit and gross margin for insightful financial analysis.

Commercial Semi Truck Insurance

Protect your commercial semi truck with insurance. Ensure compliance, financial security, and peace of mind. Get covered today!

National Business Capital

Unlock the keys to success with national business capital. Explore financing options and drive growth for your business today.

Calculating Cost Of Goods Sold

Master the art of calculating cost of goods sold! Discover the components, methods, and importance of accurate COGS calculation.

What to know about Form 4562

Unlock the secrets of Form 4562! Discover what you need to know about this essential tax form.

What Is a Write-Off?

Unveiling the magic of write-offs: Discover how to turn expenses into savings with this guide on personal and business write-offs.

What is Microcredit? How Does it Work?

Unveiling the power of microcredit: How it works and its impact on poverty and entrepreneurship

Revenue vs. Income: What's the Difference?

Unveiling the contrast: Revenue vs. Income. Understand the difference and its impact on financial decisions.

What Is Commercial Insurance?

Unveiling the mysteries of commercial insurance. Discover what it is, its importance, and how to find the right coverage.

Break Even Point (BEP)

Unveiling the Break Even Point (BEP): Achieve financial stability and make informed business decisions with this essential guide!

What Is Bonus Depreciation?

Unveil the secrets of bonus depreciation and maximize your tax deductions. Discover how it differs from regular depreciation and its impact

What Are Small Business Grants and How to Get Them

Unlock funding opportunities for your small business! Discover the secrets of small business grants and how to secure them for success.

Small-Business Grants: Where to Find Free Funding

Unlock the power of free grants and programs for small businesses. Discover funding options and tips for success in securing your dream.

The Basics of Financing a Business

March 30, 2024

Master the art of financing a business with essential basics. Explore debt, equity, bootstrapping, and government funding options.

Types and Sources of Financing for Start-up Businesses

Discover the types and sources of financing for start-up businesses. Crack the code to secure the funds you need for success!

Buying an Existing Business? How to Finance Your Purchase

Discover financing strategies for buying an existing business. From traditional loans to angel investors, unlock the keys to success!

4 Deadly Small Business Mistakes You Must Avoid

Avoid these deadly small business mistakes! Learn how to manage finances, market effectively, listen to customers, and plan for success.

12 Common Financial Mistakes Business Owners Make

Avoid these 12 financial mistakes! Take control of your business's financial future with expert strategies and tips.

Feasibility Analysis for New Businesses

Discover the power of feasibility analysis for new businesses. Minimize risks, make informed decisions, and increase your chances of success

How To Start A Business In 11 Steps (2024 Guide)

Master the art of starting a business in 11 steps! Your ultimate 2024 guide to entrepreneurial success.

9 Documents to Show Investors for Funding

Unlock funding success with these 9 key documents! From business plans to legal docs, impress investors and secure your future.

40 Proven Ways to Fund Your Small Business

Discover 40 proven ways to fund your small business and break through barriers to success. Explore traditional, alternative, and creative fu

Backd Review: High Limit Business Funding

Unlock growth with High Limit Funding: A comprehensive backd review. Discover larger capital, expansion opportunities, and more.

Torro Business Funding Reviews 2024

Discover the 2024 Torro Business Funding reviews! Get insights into the funding landscape and evaluate your options.

Torro Funding Group

Unleash your business potential with Torro Funding Group. Discover flexible financing options and competitive rates to fuel your growth.

Fixed vs. Variable Interest Rates: What's the Difference?

Decoding the difference between fixed and variable interest rates: Make informed financial decisions with our expert guidance.

The Pros and Cons of Fixed-Rate Loans

Discover the pros and cons of fixed-rate loans. Make informed financial decisions with a closer look at stability and flexibility.

The Benefits of Fixed-Rate Loans

Discover the benefits of fixed-rate loans! Enjoy stability, predictability, and peace of mind. No more interest rate surprises!

The Best Ways to Borrow Money

Discover the best ways to borrow money! From traditional bank loans to borrowing from family and friends, find the perfect option for your n

Best Low Interest Personal Loans in March 2024

Discover the best low interest personal loans in March 2024 and march towards financial stability today!

How to Qualify for Low-Interest Personal Loans

Unlock low-interest personal loans! Discover the factors that affect eligibility and learn how to qualify like a pro.

Interest Rates for Small Business Loans in 2024

Unleash the potential of small business loans with 2024 interest rates. Stay ahead of the game and navigate the lending landscape effectivel

SBA Loan Interest Rates 2024

Discover the SBA loan interest rates for 2024. Navigate the financial landscape and secure the best rates for your business success.

A Guide to Finding Angel Investors for Start-Ups

March 22, 2024

Unlock the secrets to attracting angel investors for startups. From crafting pitches to building relationships, this guide has you covered.

How to Raise Venture Capital (the Right Way) in 2024

March 23, 2024

Master the art of raising venture capital in 2024! From crafting a compelling pitch to closing the deal.

What Is the Easiest Loan to Get Approved For?

Discover the easiest loan to get approved for! Uncover the factors that can pave your path to financial assistance effortlessly.

5 Fast Facts about Freedom Cash Lenders

Unlock financial freedom with Freedom Cash Lenders! Discover 5 fast facts about tailored loan options and easy applications.

How Long Will You Have to Pay Back Your Business Loan?

Crack the payback puzzle! Discover how long it takes to settle your business loan and master loan repayment duration.

How Do Small Business Loans Work?

Discover the ins and outs of small business loans. How do they work? Uncover the process, types, and tips for success.

Average Small-Business Loan Amount

Discover the average small-business loan amount and learn how to determine the right funding for your business success.

8 Sources of Start-Up Financing for Your Business

Discover 8 key sources of start-up financing for your business! From personal savings to venture capitalists, we've got you covered.

13 Ways to Get Funding for a Business

Discover 13 proven methods to secure funding for your business. From traditional options like bank loans to alternative sources like crowdfu

8 Steps to Securing Funding for Your New Business

Conquer the funding challenge with 8 essential steps! Learn how to secure funding for your new business and achieve financial success.

How to Buy a Business With an SBA Loan

March 21, 2024

Unlock the path to business ownership with an SBA loan. Discover how to buy a business and thrive!

Advantages and Disadvantages of Bank Loans

Unlock the secrets of bank loans! Discover the advantages and disadvantages for your financial journey.

Banks' Funding Costs and Lending Rates

Uncover the truth behind banks' funding costs and lending rates. Explore the factors that influence rates and their impact on borrowers and

How To Get A Small Business Loan in California?

Unlock your business potential with a comprehensive guide to getting a small business loan in California. Expert tips and important steps re

10 Small Business Loans in California You Can Apply For

Discover the top 10 small business loans in California that can accelerate your path to success! Apply now and fuel your business growth.

Best Banks for Business Loans

Discover the best banks for business loans and fuel your entrepreneurial dreams with ease. Unveiling the top contenders for your financial s

Types of Bad Credit Business Loans

Discover the types of bad credit business loans and unlock your potential for financial growth. Explore secured, unsecured, and more!

Small Business Loans for Low Credit Scores and Bad Credit

Unlocking small business loans with bad credit! Discover strategies, alternative options, and success tips to break barriers and thrive.

4 Best No Credit Check Business Loans of 2024

Discover the 4 best no credit check business loans of 2024! Get the funds you need without the hassle of credit checks.

5 Best Easy Business Loans for 2024

Discover the 9 best easy business loans for 2024 and power your business expansion to new heights. Get the funding you need today!

Net Earnings

March 13, 2024

Unlock business success: Analyze net earnings to evaluate financial performance and profitability.

Auto Repair Loans

Unlock the power of auto repair loans. Get immediate funds for vehicle maintenance and preserve your wheels' value. Find the right provider

Best Small Business Financing Options for Women

Discover the best small business financing options for women entrepreneurs. Unlock opportunities for financial empowerment and equality.

Consider for Your Business Needs

Master your business needs with key considerations for success. Analyze, adapt, and achieve your goals!

Gross Sales vs. Net Sales

Master the numbers game! Unravel the difference between gross sales and net sales for informed business decisions.

Gross Sales

March 12, 2024

Unveiling the good, bad, and ugly of gross sales data. Gain insights, overcome limitations, and analyze effectively.

Unravel the significance of net sales in business. Explore components, calculations, and strategies to boost revenue.

How to Start a Small Business at Home

Unlock your potential and start a successful small business at home. Discover the secrets to building a thriving venture from the comfort of

How to Start a Business in 15 Steps

Master the art of starting a business in 15 steps! From developing your idea to marketing your brand, we've got you covered.

Average Business Loan Interest Rates in 2024

Discover the projected average business loan interest rates in 2024. Navigate financial waters with confidence and secure favorable rates fo

Step-by-Step Guide to Writing a Simple Business Plan

By Joe Weller | October 11, 2021

• Share on Facebook
• Share on LinkedIn

Link copied

A business plan is the cornerstone of any successful company, regardless of size or industry. This step-by-step guide provides information on writing a business plan for organizations at any stage, complete with free templates and expert advice. 

Included on this page, you’ll find a step-by-step guide to writing a business plan and a chart to identify which type of business plan you should write . Plus, find information on how a business plan can help grow a business and expert tips on writing one .

What Is a Business Plan?

A business plan is a document that communicates a company’s goals and ambitions, along with the timeline, finances, and methods needed to achieve them. Additionally, it may include a mission statement and details about the specific products or services offered.

A business plan can highlight varying time periods, depending on the stage of your company and its goals. That said, a typical business plan will include the following benchmarks:

• Product goals and deadlines for each month
• Monthly financials for the first two years
• Profit and loss statements for the first three to five years
• Balance sheet projections for the first three to five years

Startups, entrepreneurs, and small businesses all create business plans to use as a guide as their new company progresses. Larger organizations may also create (and update) a business plan to keep high-level goals, financials, and timelines in check.

While you certainly need to have a formalized outline of your business’s goals and finances, creating a business plan can also help you determine a company’s viability, its profitability (including when it will first turn a profit), and how much money you will need from investors. In turn, a business plan has functional value as well: Not only does outlining goals help keep you accountable on a timeline, it can also attract investors in and of itself and, therefore, act as an effective strategy for growth.

For more information, visit our comprehensive guide to writing a strategic plan or download free strategic plan templates . This page focuses on for-profit business plans, but you can read our article with nonprofit business plan templates .

Business Plan Steps

The specific information in your business plan will vary, depending on the needs and goals of your venture, but a typical plan includes the following ordered elements:

• Executive summary
• Description of business
• Market analysis
• Competitive analysis
• Description of organizational management
• Description of product or services
• Marketing plan
• Sales strategy
• Funding details (or request for funding)
• Financial projections

If your plan is particularly long or complicated, consider adding a table of contents or an appendix for reference. For an in-depth description of each step listed above, read “ How to Write a Business Plan Step by Step ” below.

Broadly speaking, your audience includes anyone with a vested interest in your organization. They can include potential and existing investors, as well as customers, internal team members, suppliers, and vendors.

Do I Need a Simple or Detailed Plan?

Your business’s stage and intended audience dictates the level of detail your plan needs. Corporations require a thorough business plan — up to 100 pages. Small businesses or startups should have a concise plan focusing on financials and strategy.

How to Choose the Right Plan for Your Business

In order to identify which type of business plan you need to create, ask: “What do we want the plan to do?” Identify function first, and form will follow.

Use the chart below as a guide for what type of business plan to create:

Is the Order of Your Business Plan Important?

There is no set order for a business plan, with the exception of the executive summary, which should always come first. Beyond that, simply ensure that you organize the plan in a way that makes sense and flows naturally.

The Difference Between Traditional and Lean Business Plans

A traditional business plan follows the standard structure — because these plans encourage detail, they tend to require more work upfront and can run dozens of pages. A Lean business plan is less common and focuses on summarizing critical points for each section. These plans take much less work and typically run one page in length.

In general, you should use a traditional model for a legacy company, a large company, or any business that does not adhere to Lean (or another Agile method ). Use Lean if you expect the company to pivot quickly or if you already employ a Lean strategy with other business operations. Additionally, a Lean business plan can suffice if the document is for internal use only. Stick to a traditional version for investors, as they may be more sensitive to sudden changes or a high degree of built-in flexibility in the plan.

How to Write a Business Plan Step by Step

Writing a strong business plan requires research and attention to detail for each section. Below, you’ll find a 10-step guide to researching and defining each element in the plan.

Step 1: Executive Summary

The executive summary will always be the first section of your business plan. The goal is to answer the following questions:

• What is the vision and mission of the company?
• What are the company’s short- and long-term goals?

See our  roundup of executive summary examples and templates for samples. Read our executive summary guide to learn more about writing one.

Step 2: Description of Business

The goal of this section is to define the realm, scope, and intent of your venture. To do so, answer the following questions as clearly and concisely as possible:

• What business are we in?
• What does our business do?

Step 3: Market Analysis

In this section, provide evidence that you have surveyed and understand the current marketplace, and that your product or service satisfies a niche in the market. To do so, answer these questions:

• Who is our customer? 
• What does that customer value?

Step 4: Competitive Analysis

In many cases, a business plan proposes not a brand-new (or even market-disrupting) venture, but a more competitive version — whether via features, pricing, integrations, etc. — than what is currently available. In this section, answer the following questions to show that your product or service stands to outpace competitors:

• Who is the competition? 
• What do they do best? 
• What is our unique value proposition?

Step 5: Description of Organizational Management

In this section, write an overview of the team members and other key personnel who are integral to success. List roles and responsibilities, and if possible, note the hierarchy or team structure.

Step 6: Description of Products or Services

In this section, clearly define your product or service, as well as all the effort and resources that go into producing it. The strength of your product largely defines the success of your business, so it’s imperative that you take time to test and refine the product before launching into marketing, sales, or funding details.

Questions to answer in this section are as follows:

• What is the product or service?
• How do we produce it, and what resources are necessary for production?

Step 7: Marketing Plan

In this section, define the marketing strategy for your product or service. This doesn’t need to be as fleshed out as a full marketing plan , but it should answer basic questions, such as the following:

• Who is the target market (if different from existing customer base)?
• What channels will you use to reach your target market?
• What resources does your marketing strategy require, and do you have access to them?
• If possible, do you have a rough estimate of timeline and budget?
• How will you measure success?

Step 8: Sales Plan

Write an overview of the sales strategy, including the priorities of each cycle, steps to achieve these goals, and metrics for success. For the purposes of a business plan, this section does not need to be a comprehensive, in-depth sales plan , but can simply outline the high-level objectives and strategies of your sales efforts. 

Start by answering the following questions:

• What is the sales strategy?
• What are the tools and tactics you will use to achieve your goals?
• What are the potential obstacles, and how will you overcome them?
• What is the timeline for sales and turning a profit?
• What are the metrics of success?

Step 9: Funding Details (or Request for Funding)

This section is one of the most critical parts of your business plan, particularly if you are sharing it with investors. You do not need to provide a full financial plan, but you should be able to answer the following questions:

• How much capital do you currently have? How much capital do you need?
• How will you grow the team (onboarding, team structure, training and development)?
• What are your physical needs and constraints (space, equipment, etc.)?

Step 10: Financial Projections

Apart from the fundraising analysis, investors like to see thought-out financial projections for the future. As discussed earlier, depending on the scope and stage of your business, this could be anywhere from one to five years. 

While these projections won’t be exact — and will need to be somewhat flexible — you should be able to gauge the following:

• How and when will the company first generate a profit?
• How will the company maintain profit thereafter?

Business Plan Template

Download Business Plan Template

Microsoft Excel | Smartsheet

This basic business plan template has space for all the traditional elements: an executive summary, product or service details, target audience, marketing and sales strategies, etc. In the finances sections, input your baseline numbers, and the template will automatically calculate projections for sales forecasting, financial statements, and more.

For templates tailored to more specific needs, visit this business plan template roundup or download a fill-in-the-blank business plan template to make things easy. 

If you are looking for a particular template by file type, visit our pages dedicated exclusively to Microsoft Excel , Microsoft Word , and Adobe PDF business plan templates.

How to Write a Simple Business Plan

A simple business plan is a streamlined, lightweight version of the large, traditional model. As opposed to a one-page business plan , which communicates high-level information for quick overviews (such as a stakeholder presentation), a simple business plan can exceed one page.

Below are the steps for creating a generic simple business plan, which are reflected in the template below .

• Write the Executive Summary This section is the same as in the traditional business plan — simply offer an overview of what’s in the business plan, the prospect or core offering, and the short- and long-term goals of the company. 
• Add a Company Overview Document the larger company mission and vision. 
• Provide the Problem and Solution In straightforward terms, define the problem you are attempting to solve with your product or service and how your company will attempt to do it. Think of this section as the gap in the market you are attempting to close.
• Identify the Target Market Who is your company (and its products or services) attempting to reach? If possible, briefly define your buyer personas .
• Write About the Competition In this section, demonstrate your knowledge of the market by listing the current competitors and outlining your competitive advantage.
• Describe Your Product or Service Offerings Get down to brass tacks and define your product or service. What exactly are you selling?
• Outline Your Marketing Tactics Without getting into too much detail, describe your planned marketing initiatives.
• Add a Timeline and the Metrics You Will Use to Measure Success Offer a rough timeline, including milestones and key performance indicators (KPIs) that you will use to measure your progress.
• Include Your Financial Forecasts Write an overview of your financial plan that demonstrates you have done your research and adequate modeling. You can also list key assumptions that go into this forecasting. 
• Identify Your Financing Needs This section is where you will make your funding request. Based on everything in the business plan, list your proposed sources of funding, as well as how you will use it.

Simple Business Plan Template

Download Simple Business Plan Template

Microsoft Excel |  Microsoft Word | Adobe PDF  | Smartsheet

Use this simple business plan template to outline each aspect of your organization, including information about financing and opportunities to seek out further funding. This template is completely customizable to fit the needs of any business, whether it’s a startup or large company.

Read our article offering free simple business plan templates or free 30-60-90-day business plan templates to find more tailored options. You can also explore our collection of one page business templates . 

How to Write a Business Plan for a Lean Startup

A Lean startup business plan is a more Agile approach to a traditional version. The plan focuses more on activities, processes, and relationships (and maintains flexibility in all aspects), rather than on concrete deliverables and timelines.

While there is some overlap between a traditional and a Lean business plan, you can write a Lean plan by following the steps below:

• Add Your Value Proposition Take a streamlined approach to describing your product or service. What is the unique value your startup aims to deliver to customers? Make sure the team is aligned on the core offering and that you can state it in clear, simple language.
• List Your Key Partners List any other businesses you will work with to realize your vision, including external vendors, suppliers, and partners. This section demonstrates that you have thoughtfully considered the resources you can provide internally, identified areas for external assistance, and conducted research to find alternatives.
• Note the Key Activities Describe the key activities of your business, including sourcing, production, marketing, distribution channels, and customer relationships.
• Include Your Key Resources List the critical resources — including personnel, equipment, space, and intellectual property — that will enable you to deliver your unique value.
• Identify Your Customer Relationships and Channels In this section, document how you will reach and build relationships with customers. Provide a high-level map of the customer experience from start to finish, including the spaces in which you will interact with the customer (online, retail, etc.). 
• Detail Your Marketing Channels Describe the marketing methods and communication platforms you will use to identify and nurture your relationships with customers. These could be email, advertising, social media, etc.
• Explain the Cost Structure This section is especially necessary in the early stages of a business. Will you prioritize maximizing value or keeping costs low? List the foundational startup costs and how you will move toward profit over time.
• Share Your Revenue Streams Over time, how will the company make money? Include both the direct product or service purchase, as well as secondary sources of revenue, such as subscriptions, selling advertising space, fundraising, etc.

Lean Business Plan Template for Startups

Download Lean Business Plan Template for Startups

Microsoft Word | Adobe PDF

Startup leaders can use this Lean business plan template to relay the most critical information from a traditional plan. You’ll find all the sections listed above, including spaces for industry and product overviews, cost structure and sources of revenue, and key metrics, and a timeline. The template is completely customizable, so you can edit it to suit the objectives of your Lean startups.

See our wide variety of  startup business plan templates for more options.

How to Write a Business Plan for a Loan

A business plan for a loan, often called a loan proposal , includes many of the same aspects of a traditional business plan, as well as additional financial documents, such as a credit history, a loan request, and a loan repayment plan.

In addition, you may be asked to include personal and business financial statements, a form of collateral, and equity investment information.

Download free financial templates to support your business plan.

Tips for Writing a Business Plan

Outside of including all the key details in your business plan, you have several options to elevate the document for the highest chance of winning funding and other resources. Follow these tips from experts:.

• Keep It Simple: Avner Brodsky , the Co-Founder and CEO of Lezgo Limited, an online marketing company, uses the acronym KISS (keep it short and simple) as a variation on this idea. “The business plan is not a college thesis,” he says. “Just focus on providing the essential information.”
• Do Adequate Research: Michael Dean, the Co-Founder of Pool Research , encourages business leaders to “invest time in research, both internal and external (market, finance, legal etc.). Avoid being overly ambitious or presumptive. Instead, keep everything objective, balanced, and accurate.” Your plan needs to stand on its own, and you must have the data to back up any claims or forecasting you make. As Brodsky explains, “Your business needs to be grounded on the realities of the market in your chosen location. Get the most recent data from authoritative sources so that the figures are vetted by experts and are reliable.”
• Set Clear Goals: Make sure your plan includes clear, time-based goals. “Short-term goals are key to momentum growth and are especially important to identify for new businesses,” advises Dean.
• Know (and Address) Your Weaknesses: “This awareness sets you up to overcome your weak points much quicker than waiting for them to arise,” shares Dean. Brodsky recommends performing a full SWOT analysis to identify your weaknesses, too. “Your business will fare better with self-knowledge, which will help you better define the mission of your business, as well as the strategies you will choose to achieve your objectives,” he adds.
• Seek Peer or Mentor Review: “Ask for feedback on your drafts and for areas to improve,” advises Brodsky. “When your mind is filled with dreams for your business, sometimes it is an outsider who can tell you what you’re missing and will save your business from being a product of whimsy.”

Outside of these more practical tips, the language you use is also important and may make or break your business plan.

Shaun Heng, VP of Operations at Coin Market Cap , gives the following advice on the writing, “Your business plan is your sales pitch to an investor. And as with any sales pitch, you need to strike the right tone and hit a few emotional chords. This is a little tricky in a business plan, because you also need to be formal and matter-of-fact. But you can still impress by weaving in descriptive language and saying things in a more elegant way.

“A great way to do this is by expanding your vocabulary, avoiding word repetition, and using business language. Instead of saying that something ‘will bring in as many customers as possible,’ try saying ‘will garner the largest possible market segment.’ Elevate your writing with precise descriptive words and you'll impress even the busiest investor.”

Additionally, Dean recommends that you “stay consistent and concise by keeping your tone and style steady throughout, and your language clear and precise. Include only what is 100 percent necessary.”

Resources for Writing a Business Plan

While a template provides a great outline of what to include in a business plan, a live document or more robust program can provide additional functionality, visibility, and real-time updates. The U.S. Small Business Association also curates resources for writing a business plan.

Additionally, you can use business plan software to house data, attach documentation, and share information with stakeholders. Popular options include LivePlan, Enloop, BizPlanner, PlanGuru, and iPlanner.

How a Business Plan Helps to Grow Your Business

A business plan — both the exercise of creating one and the document — can grow your business by helping you to refine your product, target audience, sales plan, identify opportunities, secure funding, and build new partnerships. 

Outside of these immediate returns, writing a business plan is a useful exercise in that it forces you to research the market, which prompts you to forge your unique value proposition and identify ways to beat the competition. Doing so will also help you build (and keep you accountable to) attainable financial and product milestones. And down the line, it will serve as a welcome guide as hurdles inevitably arise.

Streamline Your Business Planning Activities with Real-Time Work Management in Smartsheet

Empower your people to go above and beyond with a flexible platform designed to match the needs of your team — and adapt as those needs change. 

The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. 

When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time.  Try Smartsheet for free, today.

Discover why over 90% of Fortune 100 companies trust Smartsheet to get work done.

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Write a Business Plan, Step by Step

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

What is a business plan?

1. write an executive summary, 2. describe your company, 3. state your business goals, 4. describe your products and services, 5. do your market research, 6. outline your marketing and sales plan, 7. perform a business financial analysis, 8. make financial projections, 9. summarize how your company operates, 10. add any additional information to an appendix, business plan tips and resources.

A business plan outlines your business’s financial goals and explains how you’ll achieve them over the next three to five years. Here’s a step-by-step guide to writing a business plan that will offer a strong, detailed road map for your business.

ZenBusiness

A business plan is a document that explains what your business does, how it makes money and who its customers are. Internally, writing a business plan should help you clarify your vision and organize your operations. Externally, you can share it with potential lenders and investors to show them you’re on the right track.

Business plans are living documents; it’s OK for them to change over time. Startups may update their business plans often as they figure out who their customers are and what products and services fit them best. Mature companies might only revisit their business plan every few years. Regardless of your business’s age, brush up this document before you apply for a business loan .

» Need help writing? Learn about the best business plan software .

This is your elevator pitch. It should include a mission statement, a brief description of the products or services your business offers and a broad summary of your financial growth plans.

Though the executive summary is the first thing your investors will read, it can be easier to write it last. That way, you can highlight information you’ve identified while writing other sections that go into more detail.

» MORE: How to write an executive summary in 6 steps

Next up is your company description. This should contain basic information like:

Your business’s registered name.

Address of your business location .

Names of key people in the business. Make sure to highlight unique skills or technical expertise among members of your team.

Your company description should also define your business structure — such as a sole proprietorship, partnership or corporation — and include the percent ownership that each owner has and the extent of each owner’s involvement in the company.

Lastly, write a little about the history of your company and the nature of your business now. This prepares the reader to learn about your goals in the next section.

» MORE: How to write a company overview for a business plan

The third part of a business plan is an objective statement. This section spells out what you’d like to accomplish, both in the near term and over the coming years.

If you’re looking for a business loan or outside investment, you can use this section to explain how the financing will help your business grow and how you plan to achieve those growth targets. The key is to provide a clear explanation of the opportunity your business presents to the lender.

For example, if your business is launching a second product line, you might explain how the loan will help your company launch that new product and how much you think sales will increase over the next three years as a result.

» MORE: How to write a successful business plan for a loan

In this section, go into detail about the products or services you offer or plan to offer.

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

You can also discuss current or pending trademarks and patents associated with your product or service.

Lenders and investors will want to know what sets your product apart from your competition. In your market analysis section , explain who your competitors are. Discuss what they do well, and point out what you can do better. If you’re serving a different or underserved market, explain that.

Here, you can address how you plan to persuade customers to buy your products or services, or how you will develop customer loyalty that will lead to repeat business.

Include details about your sales and distribution strategies, including the costs involved in selling each product .

» MORE: R e a d our complete guide to small business marketing

If you’re a startup, you may not have much information on your business financials yet. However, if you’re an existing business, you’ll want to include income or profit-and-loss statements, a balance sheet that lists your assets and debts, and a cash flow statement that shows how cash comes into and goes out of the company.

Accounting software may be able to generate these reports for you. It may also help you calculate metrics such as:

Net profit margin: the percentage of revenue you keep as net income.

Current ratio: the measurement of your liquidity and ability to repay debts.

Accounts receivable turnover ratio: a measurement of how frequently you collect on receivables per year.

This is a great place to include charts and graphs that make it easy for those reading your plan to understand the financial health of your business.

This is a critical part of your business plan if you’re seeking financing or investors. It outlines how your business will generate enough profit to repay the loan or how you will earn a decent return for investors.

Here, you’ll provide your business’s monthly or quarterly sales, expenses and profit estimates over at least a three-year period — with the future numbers assuming you’ve obtained a new loan.

Accuracy is key, so carefully analyze your past financial statements before giving projections. Your goals may be aggressive, but they should also be realistic.

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

Before the end of your business plan, summarize how your business is structured and outline each team’s responsibilities. This will help your readers understand who performs each of the functions you’ve described above — making and selling your products or services — and how much each of those functions cost.

If any of your employees have exceptional skills, you may want to include their resumes to help explain the competitive advantage they give you.

Finally, attach any supporting information or additional materials that you couldn’t fit in elsewhere. That might include:

Licenses and permits.

Equipment leases.

Bank statements.

Details of your personal and business credit history, if you’re seeking financing.

If the appendix is long, you may want to consider adding a table of contents at the beginning of this section.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are some tips to write a detailed, convincing business plan:

Avoid over-optimism: If you’re applying for a business bank loan or professional investment, someone will be reading your business plan closely. Providing unreasonable sales estimates can hurt your chances of approval.

Proofread: Spelling, punctuation and grammatical errors can jump off the page and turn off lenders and prospective investors. If writing and editing aren't your strong suit, you may want to hire a professional business plan writer, copy editor or proofreader.

Use free resources: SCORE is a nonprofit association that offers a large network of volunteer business mentors and experts who can help you write or edit your business plan. The U.S. Small Business Administration’s Small Business Development Centers , which provide free business consulting and help with business plan development, can also be a resource.

On a similar note...

Find small-business financing

Compare multiple lenders that fit your business

Home > Business > Business Startup

How To Write a Business Plan

We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure .

Starting a business is a wild ride, and a solid business plan can be the key to keeping you on track. A business plan is essentially a roadmap for your business — outlining your goals, strategies, market analysis and financial projections. Not only will it guide your decision-making, a business plan can help you secure funding with a loan or from investors .

Writing a business plan can seem like a huge task, but taking it one step at a time can break the plan down into manageable milestones. Here is our step-by-step guide on how to write a business plan.

Table of contents

• Write your executive summary
• Do your market research homework
• Set your business goals and objectives
• Plan your business strategy
• Describe your product or service
• Crunch the numbers
• Finalize your business plan

By signing up I agree to the Terms of Use and Privacy Policy .

Step 1: Write your executive summary

Though this will be the first page of your business plan , we recommend you actually write the executive summary last. That’s because an executive summary highlights what’s to come in the business plan but in a more condensed fashion.

An executive summary gives stakeholders who are reading your business plan the key points quickly without having to comb through pages and pages. Be sure to cover each successive point in a concise manner, and include as much data as necessary to support your claims.

You’ll cover other things too, but answer these basic questions in your executive summary:

• Idea: What’s your business concept? What problem does your business solve? What are your business goals?
• Product: What’s your product/service and how is it different?
• Market: Who’s your audience? How will you reach customers?
• Finance: How much will your idea cost? And if you’re seeking funding, how much money do you need? How much do you expect to earn? If you’ve already started, where is your revenue at now?

Step 2: Do your market research homework

The next step in writing a business plan is to conduct market research . This involves gathering information about your target market (or customer persona), your competition, and the industry as a whole. You can use a variety of research methods such as surveys, focus groups, and online research to gather this information. Your method may be formal or more casual, just make sure that you’re getting good data back.

This research will help you to understand the needs of your target market and the potential demand for your product or service—essential aspects of starting and growing a successful business.

Step 3: Set your business goals and objectives

Once you’ve completed your market research, you can begin to define your business goals and objectives. What is the problem you want to solve? What’s your vision for the future? Where do you want to be in a year from now?

Use this step to decide what you want to achieve with your business, both in the short and long term. Try to set SMART goals—specific, measurable, achievable, relevant, and time-bound benchmarks—that will help you to stay focused and motivated as you build your business.

Step 4: Plan your business strategy

Your business strategy is how you plan to reach your goals and objectives. This includes details on positioning your product or service, marketing and sales strategies, operational plans, and the organizational structure of your small business.

Make sure to include key roles and responsibilities for each team member if you’re in a business entity with multiple people.

Step 5: Describe your product or service

In this section, get into the nitty-gritty of your product or service. Go into depth regarding the features, benefits, target market, and any patents or proprietary tech you have. Make sure to paint a clear picture of what sets your product apart from the competition—and don’t forget to highlight any customer benefits.

Step 6: Crunch the numbers

Financial analysis is an essential part of your business plan. If you’re already in business that includes your profit and loss statement , cash flow statement and balance sheet .

These financial projections will give investors and lenders an understanding of the financial health of your business and the potential return on investment.

You may want to work with a financial professional to ensure your financial projections are realistic and accurate.

Step 7: Finalize your business plan

Once you’ve completed everything, it's time to finalize your business plan. This involves reviewing and editing your plan to ensure that it is clear, concise, and easy to understand.

You should also have someone else review your plan to get a fresh perspective and identify any areas that may need improvement. You could even work with a free SCORE mentor on your business plan or use a SCORE business plan template for more detailed guidance.

Compare the Top Small-Business Banks

Data effective 1/10/23. At publishing time, rates, fees, and requirements are current but are subject to change. Offers may not be available in all areas.

The takeaway

Writing a business plan is an essential process for any forward-thinking entrepreneur or business owner. A business plan requires a lot of up-front research, planning, and attention to detail, but it’s worthwhile. Creating a comprehensive business plan can help you achieve your business goals and secure the funding you need.

Related content

• 5 Best Business Plan Software and Tools in 2023 for Your Small Business
• How to Get a Business License: What You Need to Know
• What Is a Cash Flow Statement?

Best Small Business Loans

5202 W Douglas Corrigan Way Salt Lake City, UT 84116

Accounting & Payroll

Point of Sale

Payment Processing

Inventory Management

Human Resources

Other Services

Best Inventory Management Software

Best Small Business Accounting Software

Best Payroll Software

Best Mobile Credit Card Readers

Best POS Systems

Best Tax Software

Stay updated on the latest products and services anytime anywhere.

By signing up, you agree to our Terms of Use  and  Privacy Policy .

Disclaimer: The information featured in this article is based on our best estimates of pricing, package details, contract stipulations, and service available at the time of writing. All information is subject to change. Pricing will vary based on various factors, including, but not limited to, the customer’s location, package chosen, added features and equipment, the purchaser’s credit score, etc. For the most accurate information, please ask your customer service representative. Clarify all fees and contract details before signing a contract or finalizing your purchase.

Our mission is to help consumers make informed purchase decisions. While we strive to keep our reviews as unbiased as possible, we do receive affiliate compensation through some of our links. This can affect which services appear on our site and where we rank them. Our affiliate compensation allows us to maintain an ad-free website and provide a free service to our readers. For more information, please see our  Privacy Policy Page . |

© Business.org 2023 All Rights Reserved.

• Small Business Loans
• Working Capital Loans
• Short Term Business Loans
• Equipment Financing and Leasing
• Types of Funding Solutions
• Customer Reviews
• Meet Our Customers
• Sponsorships
• How We Work
• Search for: Search Button

• Planning for Growth

How to Write A Business Plan for A Small Business

• by Pretha Yasmin
• January 29, 2024
• 8  Minute Read
• Home > Blog > Planning for Growth > How to Write A Business Plan for A Small Business

Writing a business plan is important in guiding small businesses toward success. Research indicates that entrepreneurs who create formal business plans are 16% more likely to achieve viability than their counterparts who don’t. It’s a common myth that business plans are only for startups. In reality, these plans are also valuable for established businesses, aiding growth, expansion, identification of potential challenges, planning for downturns, and securing funding. This article looks into the significance of business plans, backed by empirical evidence, and takes you through crafting an effective plan to bolster your small business’s prospects for success.

What is a Business Plan?

A business plan is a formal document that outlines a company’s objectives, strategies for achieving them, financial forecasts, and market analysis. It serves as a roadmap for business operations, a tool for managing risk, and a persuasive document for securing investment. It provides detailed insight into your business’s vision, structure, and how it intends to grow and succeed.

Why Write a Business Plan?

Writing a business plan is important for several reasons. It helps potential investors understand your vision, increases the likelihood of securing funding, and serves as a strategic tool for managing your business. It allows you to evaluate the feasibility of your ideas, conduct thorough market research, and set realistic goals. A business plan also facilitates recruitment by clearly defining your company’s direction and required talent, helps establish partnerships, and can be an asset in competitions. Importantly, it helps focus on successful strategies while effectively communicating your business vision and potential to stakeholders. Ensuring the plan is concise and purpose-driven makes it an effective tool for guiding your business toward its goals.

Steps to Write A Small Business Plan

1. create executive summary.

An executive summary should capture the essence of your business plan. This one-page document typically includes the business name, industry type, number of employees, locations, and an overview of goods or services offered. It’s also essential to articulate your mission statement, highlight specific goals and objectives, outline your market position, and identify key competitors. This section sets the tone for the rest of the business plan by providing a clear and compelling snapshot of your business.

2. Outline Company Description

Your company description should provide a detailed picture of your business. Include the registered name, a brief history of its formation and evolution, physical address, and the key employees. Describe the business structure (LLC, sole proprietorship, etc.), and indicate whether it operates in a B2B or B2C context. Additionally, provide links to your website and social media pages. Highlight major goals and successes achieved to date to showcase the growth and potential of your business.

3. Introduce Your Products and Services

Detail the range of products and services your business offers, including a comprehensive description and pricing model for each. Clarify how they meet current market needs or solve customer specific problems. If you have plans to introduce new offerings, provide a sneak peek into what’s coming, highlighting any unique features or competitive advantages. Also, include any intellectual property or proprietary technology that gives your business a competitive edge. This section should convincingly convey the value proposition of your products and services.

4. Create an Ideal Customer Profile

To effectively target your marketing and sales efforts, create a detailed profile of your ideal customer. Consider demographic factors such as age, gender, education, occupation, and lifestyle. Understand their behavior patterns, preferences, and values. Are they price-sensitive or quality-driven? What motivates their purchase decisions? Be precise in defining who your customers are and why they are attracted to your products or services. This understanding will guide product development, marketing strategies, and customer service approaches, aligning your business to meet the needs and expectations of your market.

5. Conduct Market Research & Competitive Analysis

This section details how you’ve conducted comprehensive market research and competitive analysis. Describe the industry landscape and market niche where your business operates, highlighting any unique trends or opportunities you aim to leverage. Assess your position relative to competitors: What are your strengths and weaknesses? What are the gaps in the market that you can fulfill? Examine your competitors’ strategies, successes, and shortcomings. By understanding these dynamics, you can refine your business strategies to capitalize on market opportunities and differentiate from competitors.

6. Develop Business Growth Strategy

Developing a business growth strategy involves several key elements. Start with refining your products or services to ensure they meet customer needs and stand out in the market. Identify new expansion opportunities, whether through new markets, additional customer segments, or product lines. Secure the necessary funding to fuel your growth initiatives and build strategic partnerships to enhance your business’s capabilities and reach.

Consider employing strategies such as market penetration to increase your share in existing markets, product development for innovation, market development to explore new markets, and diversification to spread risk and explore new business opportunities. Each of these strategies should be tailored to your business’s specific circumstances and goals, forming a cohesive plan for sustainable growth.

7. Describe Your Sales Plan

A well-defined sales plan can drive business growth. Begin by evaluating your current sales strategies and identifying what has been effective and what areas need improvement. Your sales plan should clearly outline your strategy, including the sales tools and tactics you will use, such as CRM systems or direct sales approaches. Consider potential obstacles you might face and pre-plan solutions. Set a realistic timeline for achieving sales targets and outline the metrics you will use to measure success, such as conversion rates or average deal size. Key tips for creating a successful sales plan include setting achievable goals, understanding customer needs, continuously training your sales team, and regularly reviewing and adjusting the plan based on performance data.

8. Develop A Marketing Plan

A marketing plan aims to define how your business will position its products or services to attract and retain customers, thereby increasing sales and fostering business growth. It should detail strategies and tactics for reaching your target market, including social media marketing, direct marketing, customer loyalty programs, or content marketing. A marketing plan will identify the unique selling points of your products or services, understand the competitive landscape, and tailor the messaging to resonate with the desired customer base. Tips for creating an effective marketing plan include understanding your audience deeply, setting clear and measurable goals, leveraging multi-channel strategies, and continuously monitoring and adjusting tactics based on campaign performance.

9. Outline The Financial Plan

The financial plan is a cornerstone of your business plan, providing a detailed look at the company’s fiscal health and projections. It should include a sales forecast reflecting expected revenue based on market analysis and historical data. Outline your expense budget, carefully itemizing costs to reveal net profit or loss. Create a business budgeting strategy by reviewing past budget plans. Incorporate a profit & loss statement, cash flow analysis with monthly or quarterly projections, and a current balance sheet. Consider historical performance, market conditions, and company growth objectives when making cash flow and sales projections. Acknowledge assumptions about market growth, pricing strategies, and economic conditions. Be aware of potential risks like market fluctuations or unexpected expenses that could affect your financial projections. This comprehensive financial outline will help stakeholders understand the business’s economic viability and potential for growth.

10. Streamline Operations & Logistics

Streamlining operations and logistics is vital for enhancing efficiency and reducing costs. Implement efficient workflows by utilizing technology for automation and coordination, optimizing supply chain management to ensure timely delivery of materials and products while minimizing waste. Continuously address potential operational risks by having contingency plans in place. Ensure smooth day-to-day operations by closely monitoring operational metrics, such as production speed and quality control, and adjust strategies as needed. This proactive approach supports your business’s overall goals and objectives, contributing to sustained growth and profitability.

11. Define Roles and Responsibilities of Management Teams

Clearly defining the roles and responsibilities of your management team is needed for effective leadership and business operations. Detail each team member’s experience, qualifications, and special talents, highlighting how these contribute to the business’s success. Provide an overview of your organization’s structure, whether a sole proprietorship, LLC, or corporation, and outline any plans to expand the team or hire outside consultants. This clarity ensures that every team member understands their role and how it fits into the broader company strategy, fostering accountability and efficiency.

12. List Sources of Business Financing

Identify and list the various sources of business financing available to your company. Common options include traditional bank loans, alternative small business loans, investors, crowdfunding platforms, and grants. Determine which type of financing is most viable for your business based on factors such as the amount needed, repayment terms, and the specific purpose of the funds. Clearly explain how you plan to manage and repay the debt or what returns investors can expect. A sound financial strategy secures the necessary capital for growth and builds credibility and trust with financial stakeholders.

13. Prepare An Exit Strategy

When planning for the future, it’s important to consider potential exit strategies for your business. Options include selling the business to a competitor, transferring ownership to family members, or even a public offering. Factors to consider in your exit strategy include current market conditions, the financial stability of your business, and your retirement plans. A well-thought-out exit strategy can ensure that you maximize returns and that the business transition is smooth and beneficial for all parties involved.

14. Conclude with An Appendix Section

The appendix section of your business plan should include all relevant documents and supporting materials that provide a deeper insight into your business’s potential. This can include permits, licenses, contracts, intellectual property information, resumes of key team members, and references. A table of contents is helpful if the appendix is lengthy. Also, consider including a glossary of key terms and concepts, especially if your business operates in an industry with specialized language.

Tips to Write Business Plans Across Industries

When crafting a business plan, universal elements are applicable across all industries, such as the executive summary, sales plan, marketing plan, and financial plan. However, it’s equally important to tailor your business plan to reflect your specific industry’s unique aspects and requirements. Up next, we’ll cover how to address industry-specific considerations for various sectors, ensuring that your business plan is comprehensive and relevant.

Trucking Company Business Plan

For a trucking company business plan , detail the type of fleet you operate, geographical locations covered, fuel cost management, licensing, and technology integrations. Address fleet management, logistics, budgeting, and regulatory compliance to ensure efficient operations. Also, include your marketing and sales strategies, such as partnerships with e-commerce warehouses or promotional tactics to secure more delivery contracts, highlighting how you’ll attract and retain clients in a competitive market.

Gym Business Plan

A gym business plan should define your target demographics, detail equipment costs, and layout marketing strategies. Highlight your unique fitness offerings, such as specialized classes or cutting-edge equipment, and emphasize the importance of business insurance and safety compliances to protect your clients and business. Your plan should also address how to differentiate your gym in a competitive market and maintain a steady flow of members.

Daycare Business Plan

In a daycare business plan, cover all licensing requirements and safety protocols that ensure a safe and nurturing environment for children. Detail your curriculum planning and educational philosophy, demonstrating how your daycare will provide value to children’s development. Highlight the steps you’ve taken to create a warm and secure environment, showcasing your commitment to the well-being and growth of the children in your care.

Auto Repair Shop Business Plan

Your business plan for an auto repair shop should address the necessary equipment needs, range of service offerings, qualifications for hiring mechanics, and a competitive analysis to understand your market position. Highlight how your marketing plan and customer service strategies will build customer trust and loyalty. Emphasizing excellent service quality, quick turnaround times, and transparent pricing can help distinguish your shop in the local market.

Pharmacy Business Plan

When creating a pharmacy business plan, discuss the inventory management systems you’ll employ, adherence to pharmaceutical regulatory compliance, and how you’ll build partnerships with healthcare providers. Your customer service strategies should ensure a positive and helpful experience for every customer. Emphasize the importance of community engagement and trust in the success of your pharmacy and how you plan to become a trusted health resource in your community.

Insurance Company Business Plan

An insurance company business plan includes components like policy underwriting procedures, risk assessment methodologies, and effective marketing strategies. Address compliance with industry regulations and legal considerations. Highlight your insurance specialization, whether it’s life, health, property, or another type, and define your target customers. Conduct a competitive analysis of the insurance sector to position your company strategically in the market.

Construction Business Plan

For a construction business plan, focus on outlining effective project management strategies, comprehensive budgeting processes, and strict safety protocols. Provide details on your approach to winning and managing projects, including timelines, resource allocation, and quality control measures. Emphasize the importance of showcasing past successful projects to establish credibility and attract new clients. Your plan should convey expertise and the ability to deliver projects on time and within budget.

Restaurant Business Plan

Your restaurant business plan should detail critical aspects such as menu planning, location analysis, inventory management, and customer experience strategies. Consider the demographics of your target location to tailor your menu and pricing. Emphasize your restaurant’s unique culinary identity or concept as a key differentiator to attract patrons. Address how you will manage operations to ensure a high-quality dining experience, from food preparation to customer service.

HVAC Company Business Plan

When creating a business plan for an HVAC company, outline the necessary equipment and tools needed for services, the types of service agreements you’ll offer, and the safety protocols you’ll follow. Discuss how you will differentiate your services in the market, perhaps through specialized offerings or superior customer service. Emphasize the importance of adopting energy-efficient and sustainable practices, which can reduce operational costs and appeal to environmentally conscious consumers.

Tags: Budgeting for Small Business , Business Growth

RECOMMENDED FOR YOU

How to Start a Small Business: 5 Tips for Success

The 6 most important characteristics of small business owners, how to create an auto repair shop business plan, how profitable are auto repair shops it depends on these six factors.

You are leaving NationalFunding.com

You are now leaving the National Funding website, and are being connected to a third party website. Please note that National Funding is not responsible for the information, content, or product(s) found on third party websites.

A Comprehensive Guide to Writing a Business Plan in 2024

Table of contents

Do you remember the first business plan you made? It could be with your school pal to open a restaurant or with your college buddy to start a design firm. No matter what stage of life you’re at, every new business needs a plan. It’ll help you lay the foundation.

A business plan comprises your company’s goals and intentions. 

Here are the top strategic tips on writing a winning business plan to give life to your entrepreneurial dream.

Do I really need a business plan?

When evaluating how to structure a business, you might wonder:

• How do I convey my ideas clearly?
• How can I assess each approach?
• How can I effectively talk about the company’s goals?
• What will help me partner with potential companies?
• How do I make my business lucrative in a  competitive market?

Investors rely on a comprehensive business plan to understand how you expect to make profits. 

1. Research for strategic decisions

You can’t develop a business plan without investing time in research. To better understand market trends, consumer behavior, and competitor’s strategies, perform extensive research that a business plan mandates.

2. Vision through words

It helps you compellingly present the ideas to gain investors', partners’, and consumers’ interests. 

3. Earns potential partners

It helps get investors or collaborators interested in your business by showcasing how it is worth investing in. 

5 things to keep in mind while writing your business plan

Writing a stellar business plan demands attention to detail. Here are the crucial elements to bear in mind while composing a plan. 

1. Audience

Are you writing it for an investor or a partner? Based on the audience, you need to understand their perspective, concerns, and expectations. 

Is your business plan clearly defining the goals? Ensure it gives a clear picture of the company's short-term and long-term objectives. 

3. Comprehensive research

Did you analyze market trends? Dig deep into the research to get a comprehensive industry analysis. It will help you exhibit your company’s innovative approach.

Who could be your most effective research partner? Wordtune!

Let’s say you’re planning to begin a packaging venture. While preparing the business plan, you need to know the facts and figures about the industry's growth. So, how do you go about it? 

With Wordtune’s AI feature, you can write a detailed prompt mentioning the data that you need to procure. For example, ask ‘How is the packaging industry performing?’ and Wordtune will develop relevant, up-to-date information.

Get Wordtune for free > Get Wordtune for free >

4. Crisp points

Do you prefer reading through lengthy texts or crisp points? The latter, right? Make sure to present the data with crisp and precise facts. 

5. Tone and style

While a business plan is the key to exhibiting your business approach, don’t miss out on reflecting your personality. While you keep the content in a professional tonality, make it more enjoyable with a little hint of quirkiness. 

Wordtune helps in effortlessly jazzing the tone and style of your business plan. Let’s understand with an example of a venture’s brief. 

‘FurniturePro is a leading venture in the furniture design industry specializing in sustainable design. We’re transforming modern spaces through our eco-friendly and innovative approach. Our designs speak all about sleek and functional designs.’

Do you wish to add a casual touch to the tonality? Here’s how Wordtune works.

This tool helps you refine your tone by giving suggestions according to your intended style.

9 Steps to Writing a Comprehensive Business Plan

To outline your business’ goals and approach holistically, here is our step-by-step guide on writing a compelling business plan. 

1. Executive summary

An executive summary is the first page of a business plan, offering a trailer for more to come. Thus, it needs to be well-written and captivating. Consider it an elevator pitch and summarize your company’s plan by highlighting the critical points like the objective, mission, growth trajectory, unique value proposition, etc.

Pro-tip: As an executive summary offers insights into the overall plan, write it at the end. It will make the task more manageable as you can pick information from the relevant sections and precisely mention it here. 

With Wordtune, you can curate the executive summary by offering a brief prompt. For example, you’re an architect seeking investors for your firm. What do you need to grab their attention? A holistic business plan that helps them understand the perks of funding your business.

Let’s see how Wordtune helps in this case. All you need to do is feed the details that must be present in the summary and witness the magic. 

To convey the ideas better, it breaks up the details under sub-headings to enhance readability and mention every detail.

2. About your company

What is your company’s name? Where is it located? Who are the leaders of the company?

Whenever we’re going through a business plan, aren’t these the first questions popping up in our heads? After the executive summary, introduce your company.

Define the overall business structure, whether a corporation, partnership, or sole proprietorship. While mentioning these details, include each leader's ownership and involvement percentage. Give a gist of the past and present through a brief timeline, and prepare the readers to delve into the future that follows in the next section.

3. Your business goals

Nobody prefers sailing a boat without a compass, right? Similarly, every investor or potential stakeholder needs a clear picture of the business and its growth strategies before investing. This is why this section is crucial. Define your short-term and long-term objectives of the company.

Make sure to cover the following points in the business goal:

• Why do you need funds for the business?
• What are the benefits financing brings to the growth of your company?
• What is your approach to achieving growth targets?

It must exhibit a win-win case for your company and investor’s ROI.

4. All about your products and services

With the company’s past, present, and future in line, it’s time to delve into the details of the product.

• What is the product or service your company offers?
• What is the typical pricing?
• What is your target audience?
• What is your strategy to fulfill the supply chain and demands?
• What is your sales path?
• What is the distribution strategy for a product or service? 

Make sure to mention every minute detail about the offerings and throw light on their unique features, advantages, and how they add value to consumers. 

5. What does market research say?

As you step into a niche, research is vital. 

Once you’ve researched the market, present your unique approach in the business plan. Mention how your product or service is better than the rest. Explain about your competitors, discuss their approach, and define how your course stays a step ahead.

Pro-tip: Sequence it by showcasing your market understanding first. After that, mention the critical pain points, identify the challenges, and how you transform them into opportunities.

6. Outline the marketing plan

What is your marketing strategy? Address your roadmap to reach and engage with the target audience. How are you planning to promote your products, and what is your process for building a lasting impression?

Mention details about the sales tactics, channels, and promotional campaigns. 

7. Business financial analysis

Numbers can speak volumes. If you’re writing a business plan for an existing business, flaunt the profit-and-loss statements to showcase the financials. List the assets, debts, cash flow, etc., through a balance sheet. Consider adding the following details:

• Current Ratio– the company’s current liquidity and potential to repay the debts.
• Net Profit Margin– what is the percentage of revenue reserved as net income?
• Accounts Receivable Turnover Ratio– details about the frequency of collecting receivables annually.

Present the data through graphs or charts to gain the reader's attention. It offers better clarity on financial health and sustainability in the future.

8. Generate financial projections

You must clearly show your investors or partners the company’s future finances. It outlines your potential to repay the loans or how the company will provide promising ROIs. Add monthly or quarterly sales, expenditures, and estimated profits for at least three years.

Develop realistic projections, as these are the financial roadmap guiding significant decisions and strategies. 

9. Added information

Do you have additional information, like licenses, certifications, permits, contracts, credit history, etc., that didn’t fit elsewhere? Add it to this section.

Use it as a miscellaneous section to add relevant information driving your business growth.

Download our free business plan template here

Examples of the top-selling business plans, 1. patagonia.

Start your business plan with a strong mission statement that sets a tone at the beginning. For example, this being an environmentally friendly company, the entire plan for this brand revolves around how their clothing is eco-friendly for silent sports that don’t have engines. 

2. NALB Creative Center

This business plan covers every aspect of the venture, including summary, services, market analysis, etc. The market analysis offers insights into the breakdown of target customers, clearly communicating the potential for business growth. 

In this business plan, visuals help narrate the brand’s story. The rich usage of images aligns with the brand’s ethos of adopting an innovative approach. An addition of financial charts further helps in portraying the finances clearly. 

4. LiveShopBuy

This business plan effectively focuses on investment opportunities through strategically positioning facts. It talks about investments first to seek funding and then leads to the further details and services the company offers.

5. Lula Body

This business plan doesn’t shy away from reflecting the finances. From service charges to expected revenues, it covers every aspect precisely and presents it crisply for readers to grasp the takeaways. 

Say hello to your business buddy!

Coming up with an impactful business plan sounds challenging. But not when you have Wordtune as your assistant.

From generating fresh ideas to enhancing existing ones, there is an array of tools Wordtune offers. It helps you refine the tonality and introduce a unique style to the content. Whether the plan is to build a network through a business plan or gain collaborators, with Wordtune, you can rest assured to strike the right tone.

Building a roadmap with a business plan

The business plan is much more than just a document. A business plan can help investors and owners better understand what the future holds for the business.

A holistic business plan exhibits the vision and aspirations you aim to achieve. Thus, give thought and weightage to every word in that document. It should be detailed, realistic, and achievable. Regularly check the business plan to ensure that it stays relevant and updated with the transforming industrial trends.

Share This Article:

Preparing for Graduate School: 8 Tips to Know

How to Master Concise Writing: 9 Tips to Write Clear and Crisp Content

Title Case vs. Sentence Case: How to Capitalize Your Titles

Looking for fresh content, thank you your submission has been received.

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.

Get Personalized Business Help

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 .

small business

business plan

small business finance

Download the .css-7gc50t{color:var(--chakra-colors-primary-500);font-weight:inherit;} Skip App

Download on the

Google Play

• Skip Grants
• Skip For Good
• Plus Memberships
• One-on-One Memberships
• Our Partners
• Member Success Stories
• Partner With Us
• Become an Affiliate
• How to Get Small Business Funding
• See the Latest Grant Options
• Search For Business Funding
• What's the Skip App
• Submit a Grant
• Help Center

We Help Entrepreneurs Go Further

Copyright © 2024 , YoGovernment, Inc.

• Privacy & Policy

Writing a business plan for funding application

Table of Contents

Business proposition

Unique selling point, market research, competitors, objectives and strategy, target audience, customer profile, channels , qualifications, amount needed, projections, use countingup to manage finance beyond your plan.

Setting up a company comes with many hurdles to face. For example,  you might look to buy equipment, stock or pay for marketing.

To help you secure the money you will need, you can apply for finance. That might mean you approach a bank for a small business loan or off an investor a share of your company.

When you decide to look for any form of funding, there’s one crucial document you need for the application — a business plan.

A business plan is not something to take lightly. It can go a long way to help you secure finance. So, before you start writing, it would help to know everything it can cover.

This guide discusses writing a business plan for funding application, including:

Your business plan for a funding application aims to encourage investors or lenders to believe in your business. These groups will only hand out their money for ideas that they can see being successful.

For that reason, your first section outlines what your business proposes. One of the key markers of a successful product or service is its uniqueness.

If your startup has something that only you offer, that is called a unique selling point . That could be the product that you sell or the service you provide.

Even when you sell something unique, you can demonstrate how knowledgeable you are about its market through market research .

You can research who will likely pay for what you sell and other competing businesses.

Research first-hand information through interviews and surveys sent out to the public. Alternatively, look at competitors’ websites and products or services to see how yours compares. 

In your business plan, it’s helpful to include a few specific companies you see as competition . Showing that you know who they are can convince lenders or investors that you know the industry and can overcome competitors.

Provide successful businesses with something similar to show there’s a market for what you offer. But remember to clarify how your unique product or service will be more appealing to customers.

Another important section for your business plan for funding application is the objectives and strategy. Here, discuss what you aim to do and how you’ll get there.

Pinpointing some ambition for your business to aspire toward can help put across the direction you see it going. But also include short and medium goals in addition to long-term ones.

For example, a long-term objective may be to become the largest drinks company in the UK within five years. A short-term one could be to increase your social media following by 200 in the next month.

If you can share your target audience , you can provide your plan with a clear strategy to reach them. You could find a few similarities between likely customers during your market research.

To show your target audience in a way that is relatable and easy to understand, you can create customer profiles (sometimes called customer avatars).

These are summaries of hypothetical people who represent your ideal customers, and they can include:

If you outline who your audience will be, it also points to how you’ll meet any objectives through marketing. An essential part of how you market is your branding .

Your brand is the identity your startup will put across to the public. It can involve a few elements, including:

• Brand name — what is your business called?
• Logo — what icon is attached to your business?
• Brand colours — what you’ll use three or four colours in your marketing?
• The tone of voice — how will you speak to your customers? (e.g. friendly/conversational).

In your strategy, you can also mention which marketing channels you’ll use. Looking at your customer profiles will help you create a plan for reaching your audience. 

For example, to target 18-25-year-olds, you might use Instagram competitions. 

Writing a compelling business plan for funding applications may also benefit from a description of its leadership.

If you have any business experience or past in the relevant industry, it could help convince lenders or investors to trust your business. 

Beyond experience, you could also have qualifications that back up your abilities. If you don’t have any relevant credentials, look at the online courses from the Open University .

In addition to experience or qualifications, just as important are skills you can bring. Mention where your strengths are that can help you run your business.

For example, you may have abilities in developing websites, which would help you set up your own.

As important as what you are good at, mention areas you look to improve. It can further benefit your plan if you can say how you’ll overcome weaknesses.

For example, if you have little experience in finance, you could write that you’ll use an accounting app like Countingup.

Countingup is a business account with built-in accounting software, making finance accessible for anyone, anytime through their phone.

To banks and investors, another important section in your business plan for funding application is your financial information.

The purpose of the plan and application is to seek money, so it’s essential to clarify how much you want. But it’s also crucial to lenders or investors what you’ll do with their funds.

Research and list the costs for each action you’ll take. An example for marketing could be to ask an advertising agency for a quote.

As well as explaining how much money you’d like to receive, it’s helpful to show how you’ll pay it back in your plan. To do that, you can put together a sales forecast .

A sales forecast calculates the estimated amount of sales you expect by the price you’ll charge for each. It gives you a projection for the amount of money that’ll come into the business over a month, quarter or year.

Now that you’ve written an incredible business plan, you are in a great position to seek funding. But once you get it, you’ll want to make that plan a reality.

To help you manage your finances, use Countingup, the business account with built-in accounting software. With features like expense categorisation, you’ll be able to sort costs quickly and make the best use of your funding.

Turn a business proposal into a marriage of ambition and management with Countingup.

Start your three-month free trial today.  Find out more here .

• Counting Up on Facebook
• Counting Up on Twitter
• Counting Up on LinkedIn

Related Resources

10 ways to improve cash flow management.

Make your business more resilient with these key tips on cash flow management

5 essential PR tips for small businesses

Building a PR strategy can help your business reach more people. Plus, it’ll

How to get a VAT number for a company

A VAT number is a unique ID that HMRC gives businesses when they

How to use content marketing for small business

If you run a small business, you may want to try content marketing,

How to make a good webinar presentation

Hosting a webinar is an excellent way to connect directly with your customers

How to make labels for small business

If you sell products for your small business, you may want to create

How to manage your clients effectively

It can become challenging to juggle a growing client base when you run

The 10 best cheap advertising methods for a new business

When it comes to advertising, you want to be as cost-effective as possible.

What is a design strategy? (and how to create yours)

Strategic planning is a crucial part of how a business achieves its goals.

How to repurpose content for marketing

Running out of new content ideas? Maybe your organic traffic is starting to

6 creative ways to market your business

Businesses are always looking for new and fun ways to market themselves. But

6 blogging tips for small business

Blogging for your small business is a great way to reach more people

8 Business Plan Templates You Can Get for Free

8 min. read

Updated April 10, 2024

A business plan template can be an excellent tool to simplify the creation of your business plan. 

The pre-set structure helps you organize ideas, covers all critical business information, and saves you time and effort on formatting.

The only issue? There are SO many free business plan templates out there. 

So, which ones are actually worth using? 

To help remove the guesswork, I’ve rounded up some of the best business plan templates you can access right now. 

These are listed in no particular order, and each has its benefits and drawbacks.

What to look for in a business plan template

Not all business plan templates are created equal. As you weigh your options and decide which template(s) you’ll use, be sure to review them with the following criteria in mind:

• Easy to edit: A template should save you time. That won’t be the case if you have to fuss around figuring out how to edit the document, or even worse, it doesn’t allow you to edit at all.
• Contains the right sections: A good template should cover all essential sections of a business plan , including the executive summary, product/service description, market/competitive analysis, marketing and sales plan, operations, milestones, and financial projections. 
• Provides guidance: You should be able to trust that the information in a template is accurate. That means the organization or person who created the template is highly credible, known for producing useful resources, and ideally has some entrepreneurial experience.
• Software compatibility: Lastly, you want any template to be compatible with the software platforms you use. More than likely, this means it’s available in Microsoft Word, Google Docs, or PDF format at a minimum. 

1. Bplans — A plan with expert guidance

Since you’re already on Bplans, I have to first mention the templates that we have available. 

Our traditional and one-page templates were created by entrepreneurs and business owners with over 80 years of collective planning experience. We revisit and update them annually to ensure they are approachable, thorough, and aligned with our team’s evolving best practices.  

The templates, available in Word, PDF, or Google Doc formats, include in-depth guidance on what to include in each section, expert tips, and links to additional resources. 

Plus, we have over 550 real-world sample business plans you can use for guidance when filling out your template.

Download: Traditional lender-ready business plan template or a simple one-page plan template .

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

2. SBA — Introduction to business plans

The U.S. Small Business Administration (SBA) offers two different business plan templates along with a short planning guide. 

While not incredibly in-depth, it’s enough to help you understand how traditional and lean plans are structured and what information needs to be covered. The templates themselves are more like examples, providing you with a finished product to reference as you write your plan.

The key benefit of using these templates is that they were created by the SBA. While they may provide less guidance, you can be assured that the information and structure meet their expectations.

Explore: The SBA’s planning guide and free templates

3. SCORE — Planning workbook

SCORE’s template is more like a workbook. It includes exercises after each section to help you get your ideas down and turn them into a structured plan.

The market research worksheets are especially useful. They provide a clear framework for identifying your target market and analyzing competitors from multiple angles. Plus, they give you an easy way to document all the information you’re collecting.

You will likely have to remove the exercises in this template to make it investor-ready. But it can be worth it if you’re struggling to get past a blank page and want a more interactive planning method.

Download: SCORE’s business plan template

4. PandaDoc — A template with fillable forms

PandaDoc’s library offers a variety of industry-specific business plan templates that feature a modern design flair and concise instructions. 

These templates are designed for sharing. They include fillable fields and sections for non-disclosure agreements, which may be necessary when sending a plan to investors.  

But the real benefit is their compatibility with PandaDoc’s platform. Yes, they are free, but if you’re a PandaDoc subscriber, you’ll have far more customization options. 

Out of all their templates, the standard business plan template is the most in-depth. The rest, while still useful, go a bit lighter on guidance in favor of tailoring the plan to a specific industry.

Explore: PandaDoc’s business plan template library  

5. Canva — Pitch with your plan

Canva is a great option for building a visually stunning business plan that can be used as a pitch tool. It offers a diverse array of templates built by their in-house team and the larger creative community, meaning the number of options constantly grows.

You will need to verify that the information in the template you choose matches the standard structure of a traditional business plan. 

You should do this with any template, but it’s especially important with any tool that accepts community submissions. While they are likely reviewed and approved, there may still be errors.

Remember, you can only edit these templates within Canva. Luckily, you only need a free subscription, and you may just miss out on some of the visual assets being used. 

To get the most value, it may be best to create a more traditional planning document and transfer that information into Canva. 

Explore: Canva’s business plan gallery

6. ClickUp — The collaborative template

Out of all the project management tools that offer free business plan templates, ClickUp’s is the most approachable.

Rather than throwing you into all the features and expecting you to figure it out—ClickUp provides a thorough startup guide with resource links, images, and videos explaining how to write a plan using the tool. 

There’s also a completed sample plan (structured like an expanded one-page plan) for you to reference and see how the more traditional document can connect to the product management features. You can set goals, target dates, leave comments, and even assign tasks to someone else on your team. 

These features are limited to the ClickUp platform and will not be useful for everyone. They will likely get in the way of writing a plan you can easily share with lenders or investors. 

But this is a great option if you’re looking for a template that makes internal collaboration more fluid and keeps all your information in one place.

Sign Up: Get a free trial of ClickUp and explore their template library

7. Smartsheet — A wide variety of templates

I’m including Smartsheet’s library of templates on this list because of the sheer number of options they provide. 

They have a simple business plan template, a one-page plan, a fill-in-the-blank template, a plan outline, a plan grading rubric, and even an Excel-built project plan. All are perfectly usable and vary in visual style, depth of instructions, and the available format.

Honestly, the only drawback (which is also the core benefit) is that the amount of templates can be overwhelming. If you’re already uncertain which plan option is right for you, the lengthy list they provide may not provide much clarity.

At the same time, it can be a great resource if you want a one-stop shop to view multiple plan types.

Explore: Smartsheet’s business plan template library  

8. ReferralRock affiliate marketing business plan

I’m adding ReferralRock’s template to this list due to its specificity. 

It’s not your standard business plan template. The plan is tailored with specific sections and guidance around launching an affiliate marketing business. 

Most of the template is dedicated to defining how to choose affiliates, set commissions, create legal agreements, and track performance.

So, if you plan on starting an affiliate marketing business or program, this template will provide more specific guidance. Just know that you will likely need to reference additional resources when writing the non-industry sections of your plan.

Download: ReferralRock affiliate marketing business plan template

Does it matter what business plan template you use?

The short answer is no. As long as the structure is correct, it saves you time, and it helps you write your business plan , then any template will work. 

What it ultimately comes down to, is what sort of value you hope to get from the template. 

• Do you need more guidance? 
• A simple way to structure your plan? 
• An option that works with a specific tool?
• A way to make your plan more visually interesting?

Hopefully, this list has helped you hone in on an option that meets one (or several) of these needs. Still, it may be worth downloading a few of these templates to determine the right fit. 

And really, what matters most is that you spend time writing a business plan . It will help you avoid early mistakes, determine if you have a viable business, and fully consider what it will take to get up and running. 

If you need additional guidance, check out our library of planning resources . We cover everything from plan formats , to how to write a business plan, and even how to use it as a management tool . 

If you don’t want to waste time researching other templates, you can download our one-page or traditional business plan template and jump right into the planning process.

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

Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.

Table of Contents

• Qualities of a good template
• ReferralRock
• Does the template matter?

Related Articles

12 Min. Read

Do You Need a Business Plan? Scientific Research Says Yes

10 Min. Read

Use This Simple Business Plan Outline to Organize Your Plan

6 Min. Read

Business Plan vs Business Model Canvas Explained

14 Reasons Why You Need a Business Plan

The Bplans Newsletter

The Bplans Weekly

Subscribe now for weekly advice and free downloadable resources to help start and grow your business.

We care about your privacy. See our privacy policy .

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

• Sample Plans
• WHY UPMETRICS?

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

• 400+ Sample Business Plans

Customers Success Stories

Business Plan Course

Strategic Canvas Templates

E-books, Guides & More

Business consultants

Entrepreneurs and Small Business

Accelerators and Incubators

Educators & Business Schools

Students & Scholars

AI Business Plan Generator

Financial Forecasting

AI Assistance

Ai pitch deck generator

Stratrgic Planning

See How Upmetrics Works  →

Small Business Tools

Entrepreneurs & Small Business

Accelerators & Incubators

Business Consultants & Advisors

Strategic Planning

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.

Build your Business Plan Faster

with step-by-step Guidance & AI Assistance.

About the Author

Since childhood, I was in awe of the magic that words bring. But while studying computer science in college, my world turned upside down. I found my calling in being a copywriter and I plunged into a world of words. Since then, there is no looking back. Even today, nothing excites me to find out the wonders the words can bring!

Related Articles

Convince Your Investors that Business is Ready to Scale-Up

7 Small Business Financing Options

How to Prepare a Financial Plan for Startup Business (w/ example)

Reach your goals with accurate planning.

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

How to write the business plan for a grant application?

Small business grants give free money to startups and existing businesses to help them flourish. 

Free money doesn’t come easy, though. You’ll need to first research and find the right grant for your business. Then you need to persuade the body offering the grant why they should give one to your business.

Most grants have their own specific application process, where businesses provide information so the body can decide whether it fits their specific funding criteria.

It’s important to accompany your grant application with a strong business plan. Besides including most of the basic information that goes into a grant application (like the service or product you’re offering and your staffing plan) it also includes a financial forecast - showing the funding body how profitable your business is likely to be. 

Writing a business plan also provides another opportunity to convince them that your business’ objectives align with the grant’s purpose.

If you haven’t written a business plan for a grant application before, don’t worry. 

From information on where to find small business grants, to what you need to include in a business plan for a grant application, here are some key points to consider when applying for a small business grant.

Create your business plan online!

Write a compelling grant application with the help of our business plan software!

What’s the difference between a small business grant and a loan?

A small business loan is money given to your business that you have to pay back within a pre-agreed timeframe, whilst a small business grant is a lump sum of money that you won’t have to pay back at all. This is what makes them so appealing to small businesses.

But there is a catch with some grants. This can mean having to adhere to a grant-giving body’s request that you invest the same amount of money as the grant into your business. 

Other conditions include letting the funding body designate what you can spend the money on. For example, the government’s Kickstart Scheme gives funding for small businesses to train new apprentices, provided that apprentice is between 16-24, on universal credit and at risk of long-term unemployment.

For some grants, such as the one offered by the government in 2021 that supported projects working on the development of the DSbD software ecosystem , a business might need to explain, in detail, the total cost of the specific project - and exactly how it presents value for money for the company’s whole team in their grant application.

This means having a Sources & Uses table and a cashflow forecast ready to show to the funding body. If you’re a big business, you might be able to get away with presenting a business case that describes how the project will be funded, what it will cost and what economic benefits you can expect. 

If you’re a small business, however, the safest thing to do is create a business plan that neatly incorporates all these elements. 

Where can I find small business grants in the UK?

The financial aid available to your business will depend on where in the UK you're based, your business’ size, your industry and whether you’re a startup or looking to expand your business.

To find the right grant for you, check out the government’s Finance and support for your business online tool by clicking the ‘grants’ tick box. 

What is a grant application?

A grant application is a document or set of documents that is submitted to a grant-giving body with the purpose of securing funding for a startup or an existing business venture. 

Normally, grants are awarded to small businesses with the aim of generating jobs, energizing local communities and strengthening the economy.

While there’s an abundance of grants available to small businesses, obtaining one from the government can be quite tricky. Government grants are renowned for being quite complex and have a lot of stages. 

Each grant will come with its own unique criteria for applying, too. For example, if you’re applying for a research grant from a UK-based foundation then they may require that all your research is carried out within the UK. Or if you’re seeking funding as part of an initiative to make your business more sustainable, you might need to prove your business’ dedication to carrying out eco-friendly practices.

Whether you’re a startup or an existing business, the same rule applies when taking your first step in applying for a grant: research the funding body and the grant in question as thoroughly as possible so you know exactly what they’re looking for in a grant application.

What information do I need to have before applying for a small business grant?

According to Swoop , businesses should prepare the following information before applying for a small business grant:

• Create a realistic financial forecast to show your business’ financial position
• Provide evidence that shows how your business meets the specific grant qualifying criteria
• Specify exactly what your business plans to do with the money allocated
• Provide evidence that your team will be able to successfully meet this objective
• Be clear about the exact outcome you expect and whether there will be a return on the grant funder’s investment. This enables them to evaluate the efficiency of their grant.

Why do you need a business plan for a grant application?

The rationale behind writing a business plan for a grant application is simple: funding bodies want to know that they’re giving their money to a business they can trust. 

Writing a business plan will be an opportunity for you to neatly present all the information listed above. If you're not sure how to go about structuring a business plan, you can use business plan software. Most business plan softwares come equipped with an inbuilt structure and instructions, ensuring you include all the information a funding body expects to see.

If you’re a start-up, a business plan also provides the perfect opportunity to show the grant-giving body that your business’ mission aligns with their own specific mission and purpose. 

If you’re already in operation, a business plan will show your business’ financial position and, if applicable, the positive impact it’s had on your community thus far. This helps alleviate any fear that your business is at risk of going under, making them more likely to get involved. 

What should you include in a business plan for a grant application?

Executive summary.

The first section in your business plan for a grant application is the Executive Summary. This will show your company’s ethos and how its goals align with the mission of the funding body.

Company overview

Presenting a breakdown of the structure of your company, this section shows that its operation has been carefully thought through. Making it likely that the grant-giving body will take your application more seriously.

Description of your product/service

In this section, you'll explain the product or service you’re selling, how it works, and the specific ways in which it’s better than what else is already out there.

Market analysis

The market research section provides another opportunity to show your business aligns with the funding body's missions. For example, you can explain the needs of your target market or community and how you intend to cater to these needs. 

Here, you'll explain how your product will be priced and marketed for your target market to again appeal to the ethos of the funding body.

You'll also explain any risks associated with your specific project, as well as the contingency plan you have in place to mitigate each of these risks. This will enhance the credibility of your application. 

Financial forecast

The financial forecast will list three full financial statements - your profit and loss statement, balance sheet and cashflow statement.

These will be useful in showing the body how much profit your business is likely to make, how successful your venture is likely to be and, if applicable, how many people it's likely to benefit.

Whilst writing your business plan, we recommend that you have the grant-giving body’s mission and purpose open on a separate tab. Where possible, refer back to the foundation’s mission in your business plan to show how it aligns with your business’ own values. 

You could even go a step further by adding buzzwords from the funding body’s mission statement in your plan to show how much you’ve thought it out. 

What tool should I use to write my grant application business plan?

If you haven’t written a business plan for a grant application before, the process can feel a little overwhelming. 

Using business plan software is a great way to create a high-quality business plan quickly and efficiently.

There are many business planning softwares out there, so it’s important to choose the right one for you. 

Most business plan softwares generate three full financial statements for you, helping you give the foundation as realistic a picture of your business’ finances as possible. 

For grant applications, we recommend going with a business plan software that lets you model grants. This gives the funding body total transparency as to how exactly their grant would be used within the business. 

Attractive visuals and a striking cover page with your business’ name and logo will also help your business stand out. So we recommend choosing a business plan software that breaks your numbers into colourful, easy-to-read charts and tables and automatically generates a cover page for you. 

If you’re not sure which business plan software to go for to create your business plan for a grant application, we recommend trying The Business Plan Shop . 

As well as having the features listed above, our online business plan software enables you to:

• Create a financial forecast to show your business’ financial potential
• Run a quality check to identify any issues with your forecast before sending it to a funding body
• Follow clear instructions to write a professional business plan
• Draw inspiration from the templates stored within our business plan software

Interested in checking out this type of solution? Try The Business Plan Shop for free by signing up for a free trial today .

So now you know how to write the business plan for a grant application. If you have any other questions related to writing a business plan or applying for grants, please don’t hesitate to get in touch with our team.

Also on The Business Plan Shop

• How to do market research for a business plan
• Create your financial forecast online with ease
• Download our free business plan template
• The difference between a business plan and a business case

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

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

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

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

Create a convincing business plan

Assess the profitability of your business idea and create a persuasive business plan to pitch to investors

500,000+ entrepreneurs have already tried our solution - why not join them?

Not ready to try our on-line tool ? Learn more about our solution here

Need some inspiration for your business plan?

Subscribe to The Business Plan Shop and gain access to our business plan template library.

Need a professional business plan? Discover our solution

Write your business plan with ease!

It's easy to create a professional business plan with The Business Plan Shop

Want to find out more before you try? Learn more about our solution here

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 .

Get in Touch

Are you looking to grow your business but unsure where to start? Our small business consulting and leadership coaching services are here to help! We’ll work with you to scale your operations and achieve your goals. Plus, we offer a free 30-minute consultation to ensure we fit your needs correctly. Let’s get started!

Contact Noirwolf Consulting today using the website contact form or by emailing [email protected] or call us at +44 113 328 0868.

Recent posts .

What is Program Management?

Apr 2, 2024

Program management is a vital component of organizational success, as it enables the coordinated execution of interdependent projects that yield benefits beyond the scope of individual project management. It involves the judicious application of knowledge, skills, tools, and techniques to meet specific program requirements. Our experience has demonstrated that organizations with well-developed program management and program management offices (PMOs) consistently outperform those that lack such structures. Therefore, it is imperative that organizations prioritize the establishment of robust program management frameworks to achieve their strategic objectives.

Business Transformation Strategy: A 10-Step Strategy Guide

Mar 4, 2024

Business transformation strategy is a complex and dynamic process that fundamentally restructures an organization’s strategy, processes, and systems. Though each business transformation is unique, several critical steps remain foundational to a successful change management plan. A comprehensive business transformation framework ensures a smooth and practical transformation. This framework should encompass various elements, such as defining the vision and aims of the transformation, assessing the current state of the business, identifying gaps and areas of improvement, developing a roadmap and action plan, implementing the changes, monitoring and measuring progress, and continuously refining the transformation approach as needed.

What is the Change Management Process?

Feb 2, 2024

Change is the only constant in today’s fast-paced world, and organizations must adapt to stay ahead. Fortunately, change management provides a structured and coordinated approach that enables businesses to move from their current state to a future desirable state. To deliver business value, organizations introduce change through projects, programs, and portfolios. However, introducing change is just the beginning! The real challenge is to embed the change and make it a new normal state for the organization. This calls for implementing the main principles of change management, which we will discuss in this article. Get ready to transform your organization and achieve your desired outcomes by mastering the art of change management!

Happy clients .

Trevor mcomber, us.

I recently worked with Zoe@Noirwolf, who provided me with an outstanding 5-year business plan. The expertise in financial planning, market research, SWOT analysis, and consulting was exceptional. Zoe provided me with a comprehensive and well-researched plan tailored to my business. The entire process was professional, timely, and communicative.

Bill Walton, Leeds

Zoe provided first-rate work and is an excellent business consultant. I was trying to figure out my cash flow forecast for my startup. Zoe gave me an interactive consultation session over MS teams, which was valuable and saved me a lot of time. She is super quick in excel and knowledgeable about what to include in your estimates. She was able to offer me ideas & choices that I hadn't considered. Highly recommended.

Jeendanie Lorthe, US

Warren kim, us, oscar sinclair, london, get in touch ..

Looking to grow your business but feeling unsure about where to start? Our small business consulting and leadership coaching services are here to help! We'll work with you to scale your operations and achieve your goals. Plus, we offer a free one-hour consultation to ensure we fit your needs correctly. Let's get started!

Small Engine Repair Business Book: How to Start, Get Government Grants, Market, & Write a Business Plan for Your Small Engine Repair Business (Unabridged‪)‬

Publisher description.

Small Engine Repair Business Book How To Start, Get Government Grants, Market, & Write a Business Plan for Your Small Engine Repair Business Imagine you can have the knowledge you want to start your business and live the Hassle Free All-American Lifestyle of Independence, Prosperity and Peace of Mind.  Learn how to.... Get Free Government Grants for your Small Engine Repair Business Get Access to Wholesale Sources to save you  Massive Money Small Engine Parts, Tools & Software Learn Zero Cost Marketing for Free Advertising! Step by Step prepare a amazing Business Plan Efficiently avoid Government Red Tape Take Advantage of Tax Laws for your business Get $150,000 Guaranteed Loan from the SBA How to Incorporate to Protect Your Investment and Much Much More! You have the right to restore a culture of the can-do spirit and enjoy the financial security you and your family deserve. People are destroyed for lack of knowledge. For less than the cost of one night at the movies you can get the knowledge you need to start living your business dreams! Don't wait. You'll wait your life away...