How to Write a Business Plan That Secures Funding

How to Write a Business Plan That Secures Funding

You are thinking of starting a new business and have no idea where to start?

The short answer would be to work towards writing a great business plan for securing funding for your new venture. Whatever type of funding you are looking for your business, small loans or big loans, business plan is vital in getting it.

This seems to be a very daunting and tedious task but it is a very important one. In writing a business plan, you are the best guide for yourself as you know all the intricacies about your business.

A few tips to be kept in mind while writing a business plan to acquire funds are highlighted below:

A Clear And Concise Introduction

A power pack introduction to your business plan is a must.

Write a one pager brief description tailored according to potential investors giving an an insight about your company, key personnel, why you have chosen the particular line of business and its scope.

Beating around the Bush strategy will not help at all, so be clear and crisp. Your first step of paving a positive way towards securing funding is through by making your introduction interesting to the potential investors which will make them want to know more.

Market Analysis and Survey

After an overview is explained and you have garnered the interest of the potential investors start explaining in detail the target market for the product, competitors, class of potential buyers, their needs and the extra edge your product has above the products of already established players in the market.

Talk about your marketing agenda or plan of reaching the target market along with few projections and assumptions of the target set.

Also deal with financial ratios, major expenditure areas, optimal utilization of funds and its bifurcation like how much will be the capital, what will be contributed towards working capital and funds required for the purpose.

 A Detailed Project Report

Judge the investors and tweak your business plan accordingly.

Say you have approached a Bank. It would be more keen in knowing your repayment plan, whether you have any other loans or debts and would check businesses debt service coverage ratio.

So stress on that part while presenting it to the Banks.

A detailed project report should incorporate answers to questions like market feasibility check, your substantial plan with the borrowed money, expected returns and other sources of funds as well. It should also include a detailed financial projection report highlighting realistic forecast, important ratios, cash flow, funds flow and repayment structure.

Construct a financial model which will depict that business can take the burden of the borrowings and still make profits in coming years.

Show Your Sincerity and Commitment Towards Business

It is not very easy to avail outside funding. Show your perseverance, sincerity and commitment towards the business. Do not put up a casual approach while presenting a business plan.

Be 100 per cent confident of what you have promised in your project report. Show your willingness to invest your money in the business.

What are you waiting for? Get ready and get started with your business plan! As rightly said, “failing to plan is planning to fail”.

Zohaib Akhlaq
He is the founder of HowEntrepreneur.com where he teach entrepreneurs and startup owners something new daily.
Zohaib Akhlaq

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