A business plan for funding should help a prospective lender or investor understand what you need, how you intend to use it, and the assumptions behind your proposal. Clear evidence is more useful than a promise of certain success.
Explain the funding request
State the amount and purpose of the funding you are seeking. Connect each major use of funds with the work it supports and the timing of that work.
Different funding sources have different requirements. Confirm the reader’s requested format and supporting information rather than assuming loans, investments, and grants are interchangeable.
Support the financial reasoning
Show your expected revenue, costs, and cash timing, with explanations for important assumptions. Include existing results where relevant and clearly distinguish them from projections.
- What will the funds enable the business to do?
- What evidence supports expected demand?
- How would lower sales or higher costs affect the plan?
- What repayment or return expectations need discussion?
Present uncertainty honestly
A business plan cannot make a venture risk-free or guarantee approval. Explain important risks and the practical steps you would take if assumptions prove wrong.
Use the SBA’s business-plan guidance as a starting framework, and seek qualified advice on any proposed agreement before committing.
Review your request from the reader’s perspective: can they follow the connection between the money, the work, and the financial expectations?