How To Create A Business Plan That Gets Funded

Recently we had a question come in to one of our Business Consultants asking how do I create a business plan to get funding?

We decided to send out an e-mail to our existing members and those who have successfully obtained funding from private sources, from the government, the banks and from our Funding Database. The results we received back were pretty interesting.

Most replies sates these 11 things:

1. Be honest and Don’t over hype
2. Know your business in and out
3. Be as detailed as possible
4. Know where you are heading
5. Know why you want to do this (business)
6. Know your audience, and the problem
7. Know your solution to the problem
8. Show why you need money (and how much)
9. Provide a solution (without money or funding)
10. Show where you will be (if you are funded)
11. Show your Out-plan (what happens to invested money if the business/idea doesn’t work)

As you can see there is a lot of focus on knowing and understanding your business, the need for money and how you plan on accomplishing your goal.

Really what this means is that potential investors and funding sources want to know if they can trust you.

Do you know your stuff?

If no, why would they trust you to make the right decisions?

Are you solving a problem with your business?

If no, why would customers want to buy from you?

Do you have a plan if you can’t get funded (or are you relying on funding)?

If you have no plan, maybe you aren’t worth the risk for an investor.

If money is given to you, how will you use it?

If you can’t explain, maybe you don’t need it?

And what happens if it doesn’t work…is that money gone? Does the investor lose out?

Consider all the risks, as this is the way the investors look at you and your business.

When developing your business plan, ensure that you cover all the basic aspects of a business plan. Be truthful, and know your business (your goals, your needs and the small details). Be sure to write your business plan for investors and tell them what they want to know.

In order to get your small business plan funded, you have to sell yourself.