Introduction
Most business plans do not get read past the page. Investors and lenders look at hundreds of business plans. They are looking for one thing: proof that you understand your business and can make your business profitable. If you are looking for a business plan template that actually gets funded this guide will show you what to include. And why each section of the business plan matters.Business Plan Template
Why Most Business Plans Get Rejected
Before we look at the template it helps to know what turns investors and lenders away from business plans:
- Descriptions of the product or service you are offering
- No clear understanding of the target market for your business
- financial projections for your business
- No evidence of demand or traction for your business
- Poor formatting that is hard to skim
A funded business plan is not necessarily the business plan. It is the clearest business plan. Let us break down the sections of the business plan that matter most.
1. Executive Summary
This is the thing anyone reads about your business and often the only section that busy investors will skim in detail. Even though it appears first you should write it last. After you have worked through the rest of your business plan.
You should include:
What your business does
The problem your business is solving
Your target market for your business
A overview of your financials and funding ask for your business
You should keep this to one page. If you cannot summarize your business in one page your business idea is not clear enough yet.
2. Company Description
You should explain who you are and what makes your business funding. You should cover:
Your business structure, such as an LLC or corporation
Your mission and vision for your business
What makes your business different from competitors
The stage your businesss at, such, as an idea, early revenue or growing
3. Market Analysis
This part is where you show that you really understand the business you are getting into. People who might give you money want to see that you have done your homework not just made some guesses.
You should include:
- How big the market. If it is getting bigger
- What your ideal customer is like
- Who your competitors. How you are different from them
- What problems or opportunities are in the industry
You need to use numbers and facts here. If you just say something like “this market’s growing” without giving any numbers it will make people doubt you.
4. Organization and Management
The people who might give you money are investing in the people behind the business much as the business idea itself. This part should show who is in charge and why they can make the business work.
You should include:
- Information about the founder and the team
- What experience or skills they have that will help
- How the company is organized, if you have employees or plan to
5. Products or Services
You need to explain what you are selling. Why people will want to buy it.
You should include:
- What your product or service does
- What problem it solves for the customer
- How much it costs
- If you have plans for products in the future
Do not use special industry words that most people do not understand. If someone who does not know your business cannot figure out what you sell after reading this you need to rewrite it.
6. Marketing and Sales Strategy
This is where you explain how you will actually get customers not just say that you will.
You should include:
- How you will reach the people you want to sell to, like through ads or partnerships
- How you will sell to them from the contact to when they pay you
- How you will price your product. Make it appealing to customers
- How you will keep customers coming back
7. Funding Request
If you are asking for money you need to be very specific.
You should include:
- How much money you need
- What you will use the money for broken down into categories
- What kind of funding you are looking for, like a loan or investment
- If you will need money in the future
If you just say something, like “we need money to grow” without giving any details it will make people who might give you money very suspicious. You need to be very clear.
8. Financial Projections
This is the part that lenders and investors really care about. You need to include numbers that’re realistic and based on good research. Not just what you hope will happen.
Include:
- Revenue projections for the one to three years
- A statement that shows if you are making a profit or a loss
- A forecast of how cash you will have
- A break analysis to see when you will start making money
If you are not good with numbers it is a good idea to get some help with this part. If your financial projections are not good it can hurt your plan.
9. Appendix
This is where you put documents that support your plan, such as:
- Resumes of the people who will be working with you
- Permits or other important papers
- Pictures of your products or prototypes
- Letters from people who might want to buy from you
Final Tips for a Business Plan That Gets Funded
Keep your plan usually fifteen to twenty pages is enough for small businesses.
Use. Charts to make it easier to understand the money part.
Make sure your plan is right for the people you are showing it to. A plan for a bank is different from one for investors.
Check your plan carefully for spelling mistakes and wrong numbers. These can make you look bad.
Conclusion
A good business plan is not about using words and complicated ideas. It is about being clear and honest and showing that you really understand your business. Financial projections and business plans are the key to getting funded. Use this plan as a starting point fill it with information and you will have a plan that lenders and investors will believe in and that will give them confidence, in your business and your financial projections.Business Plan Template