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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.

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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.

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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.

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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.

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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 ."

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How to Fund Your Business Idea

Lisa Anthony

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 .

Few things are more exciting than coming up with a business idea you believe in. But bringing that idea to life typically requires an investment — and funding a business can be tricky for entrepreneurs without a financial history or fully developed product.

A traditional small-business loan often won’t be possible until your business has been up and running for a few months, at least. Still, you can turn to other sources to invest in your idea while you get your business off the ground, including friends, family, professional investors, startup grants and your own bank account.

Here’s how to decide which funding options make sense for you.

How much do you need?

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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.

Types of business funding

In general, there are two types of business funding:

Zero-debt financing: You use savings or give someone something nonmonetary in exchange for an investment, like equity in your company or a custom piece of merchandise.

Debt financing: You borrow money and promise to pay it back with interest, regardless of how successful your business becomes.

At the idea stage, zero-debt options are typically the better choice, especially if you have limited business experience, and you want to avoid taking on debt that you may not be able to handle.

Debt financing may make sense once you have a detailed business plan that includes market research, a competitor analysis, financial projections and an explanation of how you’ll earn enough revenue to pay back the amount borrowed.

» MORE: Debt vs. equity financing: Which is right for you?

Ways to fund your business without taking on debt

When starting a business, your idea may be your most important asset. If you can convince others of the value of your business idea, they might be willing to invest in it without requiring you to pay them back.

Startup grants can be a source of free money for getting your business off the ground, but securing the award is not easy. Applying for funding often requires time and effort, but it can be worth it with grant amounts ranging from $1,000 to $25,000 or more.

You’ll want to check the eligibility requirement before applying, start preparing your grant application early and follow the instructions provided. You may be asked about your plan for your business, details about your market and competitors and how you would use the funds.

There are federal, state and private grants for small businesses as well as those designed for underserved groups and communities such as business grants for women , grants for minority entrepreneurs and grants for veterans .

Equity financing, including angel investment and venture capital

Equity financing gives individuals or firms a share of ownership in your business in exchange for the capital they provide to you.

Angel investing and venture capital are probably the two best-known methods of equity financing for startups. Angel investing is generally easier for aspiring entrepreneurs to secure — angel investors tend to be wealthy individuals, not investment firms, who focus on smaller investments. Venture capital firms, on the other hand, seek to invest in fast-growing startups that have the potential to be lucrative businesses.

With any type of investor, make sure to spell out the terms of the investment agreement in writing so all parties know what to expect and when.

Every investor will look for slightly different qualifications from the businesses they invest in. But like any other form of financing, you’ll probably need to demonstrate that your business plan is viable, your product or service fulfills a need in the market and your team can deliver on the idea.

You may be able to connect with angel investors and venture capitalists through your local business incubator or startup accelerator. An online search for your city or region and "business incubator" should lead you to any such organizations in your region.


Entrepreneurs often have to dip into their own pockets to get started. Doing so can help you avoid giving up control of your business to investors or paying interest on debts. On the other hand, if your business fails , you’ll lose your investment.

There are a variety of ways to self-fund your business, including tapping your retirement savings with a Rollover as Business Start-up or ROBS . Or, if you’re working a traditional full- or part-time job and starting a side hustle, consider remaining in your job as long as you can to maintain your personal financial security. Also, writing a business plan can help you come up with a strategy for growing your business to the point that it can support you.

Friends and family

Asking friends and family for a loan to start your business is a tried-and-true strategy for securing business funding. But mixing money and family matters can be complicated.

To preserve your relationships, treat your loved ones like any other investor. Share your business plan, answer their questions and be transparent about the risks. If they choose to invest in your idea, put your agreement in writing so everyone is on the same page. And if they choose not to, don’t take it personally — they need to look out for their own finances, too.

» MORE: Should you invest in a friend’s business?


If your business idea is developed enough to have garnered a dedicated audience — for instance, if you’re a home baker seeking to expand into a storefront or an artist who wants to make a certain piece of work — crowdfunding might be an option for you.

In general, there are three types of crowdfunding:

Rewards-based crowdfunding : Supporters donate to your business and receive a non-financial reward — like a piece of merchandise or exclusive access to an event — in return. Kickstarter and Indiegogo are platforms that support rewards-based crowdfunding.

Equity crowdfunding : Supporters receive equity in your company in anticipation of future returns. Wefunder is a platform that supports these kinds of campaigns, though investors may look for more established businesses.

Debt-based crowdfunding: Supporters essentially give you a loan, which you pay back on a prescribed schedule with interest or another kind of fee. Mainvest is one platform that offers these kinds of deals; although again, investors might lean toward more established businesses.

Debt-based financing options for your business idea

If you have a clear vision for your product or service, your business model and your market, taking on some debt can help accelerate your growth. You can generally spend debt-based financing as you see fit. However, make sure you’re prepared to pay it back on your lender’s schedule — because you may face late fees, liens or a lower credit score if you don’t.

Business credit cards

Depending on how much startup funding you need, a business credit card may provide enough financing to get your business up and running. Your credit limit will depend on the card issuer’s assessment of your creditworthiness. A card with a limit of several thousand dollars might be enough to create a product prototype or cover your business expenses while you secure your first few clients.

You can typically qualify for a business credit card if you have good or excellent credit (a FICO score of at least 690) and know your business structure; choosing a sole proprietorship works if you don’t have a formal structure yet.

Some business credit cards offer an introductory period with 0% APR, which allows you to carry a balance on the card for several months without accruing interest. Once the introductory period is over, the APR can be very high — above 20% in some cases. Make sure you have a plan to generate enough revenue to make those payments when the bill comes due.

» MORE: Business credit cards vs. business loans

The U.S. Small Business Administration offers SBA microloans of up to $50,000 to all kinds of businesses, including startups. The program is designed for businesses traditionally underserved by lenders, which can make microloans easier to qualify for than other types of business loans.

Lots of nonprofit microlenders also make small loans to startup businesses. Like SBA microlenders, these mission-driven organizations often have less stringent application requirements than banks or online lenders.

Personal loans

You can use a personal loan for pretty much anything you need capital for, including your business. Since you are personally responsible for the debt, lenders only consider your personal financials and credit history on your application.

That personal responsibility can be a double-edged sword, though. If you default on a personal loan, your own assets could be seized. It can also be risky to commingle your personal and business finances.

In general, personal loans for businesses are similar in size to microloans: You may be able to borrow up to $50,000. However, APRs can vary widely — from as low as 5% to as much as 35%.

Funding your business’s growth

After a year or two in business, you’ll have access to some larger financing options that can help your business expand.

Business loans

Small-business term loans aren’t usually a good fit for startups, but they can help your business expand once it’s established. In general, you’ll need at least two years in business to qualify for the lowest interest rates and most favorable terms from banks, along with good personal credit and collateral.

Some online business loans have less stringent requirements, but typically still require at least a year in business.

Business lines of credit

Business lines of credit are similar to business credit cards. A line of credit gives you access to a set amount of funding, and you can spend as needed up to the limit. Once you repay what you withdraw, you can borrow funds up to your credit limit again.

If you work with an online lender, you may be able to qualify for a business line of credit with as little as six months in business.

On a similar note...

Find small-business financing

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How to Finance a Business: 4 Options to Consider

Entrepreneur and investor shake hands across table

  • 04 Aug 2020

In entrepreneurship, the old adage “you must spend money to make money” often rings true.

Once you’ve developed an innovative business idea , identified a market need, and created a value proposition , you need to acquire funding to get your company up and running.

The key to financing a business is keeping expenses as low as possible. You also want to ensure invested money is used to gain insight into how to proceed.

In the online course Entrepreneurship Essentials , taught by Harvard Business School Professor William Sahlman, entrepreneurship is described as the process of "spending money to produce information about future possibilities."

For instance, using funds to rent a beautiful office may be tempting, but leveraging it to run tests, conduct market research, or identify more efficient means of production can help you learn about your product, pivot accordingly, and expand your company’s growth potential.

Here’s a guide for assessing startup costs and expenses, along with four business financing options to consider.

Access your free e-book today.

How Difficult Is It to Fund a Startup Business?

Securing adequate funding for your business can be challenging. However, it’s important to remember that starting your own business is a large investment that should be given an appropriate period of time to succeed.

Often, new businesses need to raise funding quickly and efficiently to properly grow and thrive in their given market, but it can be difficult to adhere to various lending requirements without existing financial information. In spite of these challenges, there are various financial resources that can help you get your business off the ground.

Evaluate Startup Costs and Expenses

Before deciding how to finance your business, determine how much money you anticipate needing for startup costs and regular expenses. Whether you run a brick-and-mortar or online business, consider the following when taking stock of expenses:

  • Licenses and permits
  • Trademarks, copyrights, or patents for your brand and products
  • Business insurance
  • Legal or accounting assistance
  • Rent and utilities (for brick-and-mortar businesses)
  • Equipment required for production
  • Website platforms
  • Marketing materials (both print and digital)
  • Shipping supplies
  • Subscriptions to content management systems and sales or marketing platforms
  • Market research

As your business scales , you may need to expand your expense list to include:

  • Employee salaries
  • Rent and utilities for office space
  • Travel expenses
  • Conferences, conventions, and networking events

These lists aren’t exhaustive—every business’s needs are different—but they provide a starting point for you to brainstorm all possible expenses for your startup. When your list is complete, calculate your total estimated startup cost. This number is the amount of funding you’ll need to invest when starting your company.

Before raising capital, it’s also wise to familiarize yourself with how to read and create a balance sheet, income statement, and statement of cash flows. Financial literacy is a critical skill for entrepreneurs , and being aware of these financial statements will ensure you’re taking the necessary steps to become a responsible business owner.

Now, how do you obtain this necessary capital? Here are four sources of funding for your business’s launch.

Related: 6 Questions to Ask Before Starting a Business

How to Finance a Business

1. self-funding.

If your projected expenses add up to a manageable amount, you may be able to fund the business yourself. This can involve taking money from your personal savings account, dipping into your retirement funds, using credit cards and paying back the debt, or asking for donations from friends and family.

Self-funding comes with the risk of long-term debt or losing personal savings and, potentially, money from loved ones. However, it’s a financing option that allows you to retain full ownership over your business, which is often seen as a downside of raising venture capital from investors.

2. Crowdfunding

If you believe your business can garner a fan base, crowdfunding could be a good option. Crowdfunding platforms, such as Kickstarter, Indiegogo, and Patreon enable entrepreneurs to pitch their products and request financial backing.

If people are intrigued and support your product, they can donate to your company in exchange for a free item, discount code, or acknowledgment once your business is up and running. For this reason, crowdfunding is typically a good fit for business-to-consumer startup companies with physical products, although there are exceptions. Each platform has its own terms and conditions, which you should read before selecting one.

Like self-funding, crowdfunding allows you to maintain full ownership of your company, as long as you’re willing to thank your donors with free or discounted products. A few brands that got their start using crowdfunding are Oculus, PopSockets, and Allbirds.

3. Taking Out a Small Business Loan

Applying for a small business loan is another way to secure necessary startup funds. Before applying to banks and credit unions, prepare a business plan, value proposition, expense report, and financial projections for the next five years. Most banks or credit unions will ask to see some combination of these documents when considering your application.

Be sure to weigh the pros and cons of every bank loan offer you receive. Which gives you the lowest interest rate? What are the terms and conditions?

As Sahlman says in Entrepreneurship Essentials , “The terms of financing have a major impact on the success or failure of a venture.”

Related: What Does It Take to Be a Successful Entrepreneur?

4. Raising Venture Capital from Investors

Another avenue for funding your business is raising venture capital from investors.

“Successful companies are always forming hypotheses and testing all aspects of their business,” Sahlman explains in Entrepreneurship Essentials . “Ventures typically need outside investors to run experiments.”

Before reaching out to investors, prepare a business plan, value proposition, financial projections, and a tight, effective pitch deck.

The process of obtaining venture capital has been likened to dating —investors typically want to get to know you and your business before they commit.

One way to start this process is by asking a mutual connection to introduce you to investors. Your contact can serve as a character reference, if needed.

This process can take a while. If you’re looking for quick, easy money to start your business, raising venture capital may not be the right choice. Investors often want to see how you run your company before deciding to invest. Even after they supply funding, they may bide their time to see what you do with the money before investing more.

“Sensible investors stage their commitment to a company—they give enough money to conduct a value-changing test,” Sahlman says. “They preserve the right to abandon the venture by refusing to invest more money. They also design contracts that give them the right to invest more if the test yields encouraging results.”

There’s one factor that sets this option apart: Investors want to own a large, valuable share of your company in return for their investment. This allows them to sell their share in the future, when they predict your company will be worth a lot of money.

In Entrepreneurship Essentials , Sahlman shares Facebook’s journey with various investors and notes that it received $500,000 from angel investor Peter Thiel in its first round of funding in 2004. Just one year later, Facebook received a $12.7 million investment from prominent venture capitalist Jim Breyer.

Resist the urge to go big right away. Perhaps raising venture capital from investors is a second or third step for the funding of your business.

So You Want to Be an Entrepreneur: How to Get Started | Access Your Free E-Book | Download Now

What's the Best Way to Finance Your Business?

Keep in mind that no two businesses are the same—only you know the ins and outs of your company’s needs. By weighing the risks and rewards of each funding option, along with your personal finances, predicted startup costs, and business expenses, you can select the best option for financing your business.

Are you looking to learn more about financing your venture? Explore our four-week online course Entrepreneurship Essentials and our other entrepreneurship and innovation courses to learn to speak the language of the startup world. If you aren't sure which course is the right fit, download our free course flowchart to determine which best aligns with your goals.

This post was updated on June 3, 2022. It was originally published on August 4, 2020.

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How To Write a Business Plan

Stephanie Coleman

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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

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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?

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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.

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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?

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How to Write a Business Plan in 9 Steps (+ Template and Examples)

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Every successful business has one thing in common, a good and well-executed business plan. A business plan is more than a document, it is a complete guide that outlines the goals your business wants to achieve, including its financial goals . It helps you analyze results, make strategic decisions, show your business operations and growth.

If you want to start a business or already have one and need to pitch it to investors for funding, writing a good business plan improves your chances of attracting financiers. As a startup, if you want to secure loans from financial institutions, part of the requirements involve submitting your business plan.

Writing a business plan does not have to be a complicated or time-consuming process. In this article, you will learn the step-by-step process for writing a successful business plan.

You will also learn what you need a business plan for, tips and strategies for writing a convincing business plan, business plan examples and templates that will save you tons of time, and the alternatives to the traditional business plan.

Let’s get started.

What Do You Need A Business Plan For?

Businesses create business plans for different purposes such as to secure funds, monitor business growth, measure your marketing strategies, and measure your business success.

1. Secure Funds

One of the primary reasons for writing a business plan is to secure funds, either from financial institutions/agencies or investors.

For you to effectively acquire funds, your business plan must contain the key elements of your business plan . For example, your business plan should include your growth plans, goals you want to achieve, and milestones you have recorded.

A business plan can also attract new business partners that are willing to contribute financially and intellectually. If you are writing a business plan to a bank, your project must show your traction , that is, the proof that you can pay back any loan borrowed.

Also, if you are writing to an investor, your plan must contain evidence that you can effectively utilize the funds you want them to invest in your business. Here, you are using your business plan to persuade a group or an individual that your business is a source of a good investment.

2. Monitor Business Growth

A business plan can help you track cash flows in your business. It steers your business to greater heights. A business plan capable of tracking business growth should contain:

  • The business goals
  • Methods to achieve the goals
  • Time-frame for attaining those goals

A good business plan should guide you through every step in achieving your goals. It can also track the allocation of assets to every aspect of the business. You can tell when you are spending more than you should on a project.

You can compare a business plan to a written GPS. It helps you manage your business and hints at the right time to expand your business.

3. Measure Business Success

A business plan can help you measure your business success rate. Some small-scale businesses are thriving better than more prominent companies because of their track record of success.

Right from the onset of your business operation, set goals and work towards them. Write a plan to guide you through your procedures. Use your plan to measure how much you have achieved and how much is left to attain.

You can also weigh your success by monitoring the position of your brand relative to competitors. On the other hand, a business plan can also show you why you have not achieved a goal. It can tell if you have elapsed the time frame you set to attain a goal.

4. Document Your Marketing Strategies

You can use a business plan to document your marketing plans. Every business should have an effective marketing plan.

Competition mandates every business owner to go the extraordinary mile to remain relevant in the market. Your business plan should contain your marketing strategies that work. You can measure the success rate of your marketing plans.

In your business plan, your marketing strategy must answer the questions:

  • How do you want to reach your target audience?
  • How do you plan to retain your customers?
  • What is/are your pricing plans?
  • What is your budget for marketing?

Business Plan Infographic

How to Write a Business Plan Step-by-Step

1. create your executive summary.

The executive summary is a snapshot of your business or a high-level overview of your business purposes and plans . Although the executive summary is the first section in your business plan, most people write it last. The length of the executive summary is not more than two pages.

Executive Summary of the business plan

Generally, there are nine sections in a business plan, the executive summary should condense essential ideas from the other eight sections.

A good executive summary should do the following:

  • A Snapshot of Growth Potential. Briefly inform the reader about your company and why it will be successful)
  • Contain your Mission Statement which explains what the main objective or focus of your business is.
  • Product Description and Differentiation. Brief description of your products or services and why it is different from other solutions in the market.
  • The Team. Basic information about your company’s leadership team and employees
  • Business Concept. A solid description of what your business does.
  • Target Market. The customers you plan to sell to.
  • Marketing Strategy. Your plans on reaching and selling to your customers
  • Current Financial State. Brief information about what revenue your business currently generates.
  • Projected Financial State. Brief information about what you foresee your business revenue to be in the future.

The executive summary is the make-or-break section of your business plan. If your summary cannot in less than two pages cannot clearly describe how your business will solve a particular problem of your target audience and make a profit, your business plan is set on a faulty foundation.

Avoid using the executive summary to hype your business, instead, focus on helping the reader understand the what and how of your plan.

View the executive summary as an opportunity to introduce your vision for your company. You know your executive summary is powerful when it can answer these key questions:

  • Who is your target audience?
  • What sector or industry are you in?
  • What are your products and services?
  • What is the future of your industry?
  • Is your company scaleable?
  • Who are the owners and leaders of your company? What are their backgrounds and experience levels?
  • What is the motivation for starting your company?
  • What are the next steps?

Writing the executive summary last although it is the most important section of your business plan is an excellent idea. The reason why is because it is a high-level overview of your business plan. It is the section that determines whether potential investors and lenders will read further or not.

The executive summary can be a stand-alone document that covers everything in your business plan. It is not uncommon for investors to request only the executive summary when evaluating your business. If the information in the executive summary impresses them, they will ask for the complete business plan.

If you are writing your business plan for your planning purposes, you do not need to write the executive summary.

2. Add Your Company Overview

The company overview or description is the next section in your business plan after the executive summary. It describes what your business does.

Adding your company overview can be tricky especially when your business is still in the planning stages. Existing businesses can easily summarize their current operations but may encounter difficulties trying to explain what they plan to become.

Your company overview should contain the following:

  • What products and services you will provide
  • Geographical markets and locations your company have a presence
  • What you need to run your business
  • Who your target audience or customers are
  • Who will service your customers
  • Your company’s purpose, mission, and vision
  • Information about your company’s founders
  • Who the founders are
  • Notable achievements of your company so far

When creating a company overview, you have to focus on three basics: identifying your industry, identifying your customer, and explaining the problem you solve.

If you are stuck when creating your company overview, try to answer some of these questions that pertain to you.

  • Who are you targeting? (The answer is not everyone)
  • What pain point does your product or service solve for your customers that they will be willing to spend money on resolving?
  • How does your product or service overcome that pain point?
  • Where is the location of your business?
  • What products, equipment, and services do you need to run your business?
  • How is your company’s product or service different from your competition in the eyes of your customers?
  • How many employees do you need and what skills do you require them to have?

After answering some or all of these questions, you will get more than enough information you need to write your company overview or description section. When writing this section, describe what your company does for your customers.

It describes what your business does

The company description or overview section contains three elements: mission statement, history, and objectives.

  • Mission Statement

The mission statement refers to the reason why your business or company is existing. It goes beyond what you do or sell, it is about the ‘why’. A good mission statement should be emotional and inspirational.

Your mission statement should follow the KISS rule (Keep It Simple, Stupid). For example, Shopify’s mission statement is “Make commerce better for everyone.”

When describing your company’s history, make it simple and avoid the temptation of tying it to a defensive narrative. Write it in the manner you would a profile. Your company’s history should include the following information:

  • Founding Date
  • Major Milestones
  • Location(s)
  • Flagship Products or Services
  • Number of Employees
  • Executive Leadership Roles

When you fill in this information, you use it to write one or two paragraphs about your company’s history.

Business Objectives

Your business objective must be SMART (specific, measurable, achievable, realistic, and time-bound.) Failure to clearly identify your business objectives does not inspire confidence and makes it hard for your team members to work towards a common purpose.

3. Perform Market and Competitive Analyses to Proof a Big Enough Business Opportunity

The third step in writing a business plan is the market and competitive analysis section. Every business, no matter the size, needs to perform comprehensive market and competitive analyses before it enters into a market.

Performing market and competitive analyses are critical for the success of your business. It helps you avoid entering the right market with the wrong product, or vice versa. Anyone reading your business plans, especially financiers and financial institutions will want to see proof that there is a big enough business opportunity you are targeting.

This section is where you describe the market and industry you want to operate in and show the big opportunities in the market that your business can leverage to make a profit. If you noticed any unique trends when doing your research, show them in this section.

Market analysis alone is not enough, you have to add competitive analysis to strengthen this section. There are already businesses in the industry or market, how do you plan to take a share of the market from them?

You have to clearly illustrate the competitive landscape in your business plan. Are there areas your competitors are doing well? Are there areas where they are not doing so well? Show it.

Make it clear in this section why you are moving into the industry and what weaknesses are present there that you plan to explain. How are your competitors going to react to your market entry? How do you plan to get customers? Do you plan on taking your competitors' competitors, tap into other sources for customers, or both?

Illustrate the competitive landscape as well. What are your competitors doing well and not so well?

Answering these questions and thoughts will aid your market and competitive analysis of the opportunities in your space. Depending on how sophisticated your industry is, or the expectations of your financiers, you may need to carry out a more comprehensive market and competitive analysis to prove that big business opportunity.

Instead of looking at the market and competitive analyses as one entity, separating them will make the research even more comprehensive.

Market Analysis

Market analysis, boarding speaking, refers to research a business carried out on its industry, market, and competitors. It helps businesses gain a good understanding of their target market and the outlook of their industry. Before starting a company, it is vital to carry out market research to find out if the market is viable.

Market Analysis for Online Business

The market analysis section is a key part of the business plan. It is the section where you identify who your best clients or customers are. You cannot omit this section, without it your business plan is incomplete.

A good market analysis will tell your readers how you fit into the existing market and what makes you stand out. This section requires in-depth research, it will probably be the most time-consuming part of the business plan to write.

  • Market Research

To create a compelling market analysis that will win over investors and financial institutions, you have to carry out thorough market research . Your market research should be targeted at your primary target market for your products or services. Here is what you want to find out about your target market.

  • Your target market’s needs or pain points
  • The existing solutions for their pain points
  • Geographic Location
  • Demographics

The purpose of carrying out a marketing analysis is to get all the information you need to show that you have a solid and thorough understanding of your target audience.

Only after you have fully understood the people you plan to sell your products or services to, can you evaluate correctly if your target market will be interested in your products or services.

You can easily convince interested parties to invest in your business if you can show them you thoroughly understand the market and show them that there is a market for your products or services.

How to Quantify Your Target Market

One of the goals of your marketing research is to understand who your ideal customers are and their purchasing power. To quantify your target market, you have to determine the following:

  • Your Potential Customers: They are the people you plan to target. For example, if you sell accounting software for small businesses , then anyone who runs an enterprise or large business is unlikely to be your customers. Also, individuals who do not have a business will most likely not be interested in your product.
  • Total Households: If you are selling household products such as heating and air conditioning systems, determining the number of total households is more important than finding out the total population in the area you want to sell to. The logic is simple, people buy the product but it is the household that uses it.
  • Median Income: You need to know the median income of your target market. If you target a market that cannot afford to buy your products and services, your business will not last long.
  • Income by Demographics: If your potential customers belong to a certain age group or gender, determining income levels by demographics is necessary. For example, if you sell men's clothes, your target audience is men.

What Does a Good Market Analysis Entail?

Your business does not exist on its own, it can only flourish within an industry and alongside competitors. Market analysis takes into consideration your industry, target market, and competitors. Understanding these three entities will drastically improve your company’s chances of success.

Market Analysis Steps

You can view your market analysis as an examination of the market you want to break into and an education on the emerging trends and themes in that market. Good market analyses include the following:

  • Industry Description. You find out about the history of your industry, the current and future market size, and who the largest players/companies are in your industry.
  • Overview of Target Market. You research your target market and its characteristics. Who are you targeting? Note, it cannot be everyone, it has to be a specific group. You also have to find out all information possible about your customers that can help you understand how and why they make buying decisions.
  • Size of Target Market: You need to know the size of your target market, how frequently they buy, and the expected quantity they buy so you do not risk overproducing and having lots of bad inventory. Researching the size of your target market will help you determine if it is big enough for sustained business or not.
  • Growth Potential: Before picking a target market, you want to be sure there are lots of potential for future growth. You want to avoid going for an industry that is declining slowly or rapidly with almost zero growth potential.
  • Market Share Potential: Does your business stand a good chance of taking a good share of the market?
  • Market Pricing and Promotional Strategies: Your market analysis should give you an idea of the price point you can expect to charge for your products and services. Researching your target market will also give you ideas of pricing strategies you can implement to break into the market or to enjoy maximum profits.
  • Potential Barriers to Entry: One of the biggest benefits of conducting market analysis is that it shows you every potential barrier to entry your business will likely encounter. It is a good idea to discuss potential barriers to entry such as changing technology. It informs readers of your business plan that you understand the market.
  • Research on Competitors: You need to know the strengths and weaknesses of your competitors and how you can exploit them for the benefit of your business. Find patterns and trends among your competitors that make them successful, discover what works and what doesn’t, and see what you can do better.

The market analysis section is not just for talking about your target market, industry, and competitors. You also have to explain how your company can fill the hole you have identified in the market.

Here are some questions you can answer that can help you position your product or service in a positive light to your readers.

  • Is your product or service of superior quality?
  • What additional features do you offer that your competitors do not offer?
  • Are you targeting a ‘new’ market?

Basically, your market analysis should include an analysis of what already exists in the market and an explanation of how your company fits into the market.

Competitive Analysis

In the competitive analysis section, y ou have to understand who your direct and indirect competitions are, and how successful they are in the marketplace. It is the section where you assess the strengths and weaknesses of your competitors, the advantage(s) they possess in the market and show the unique features or qualities that make you different from your competitors.

Four Steps to Create a Competitive Marketing Analysis

Many businesses do market analysis and competitive analysis together. However, to fully understand what the competitive analysis entails, it is essential to separate it from the market analysis.

Competitive analysis for your business can also include analysis on how to overcome barriers to entry in your target market.

The primary goal of conducting a competitive analysis is to distinguish your business from your competitors. A strong competitive analysis is essential if you want to convince potential funding sources to invest in your business. You have to show potential investors and lenders that your business has what it takes to compete in the marketplace successfully.

Competitive analysis will s how you what the strengths of your competition are and what they are doing to maintain that advantage.

When doing your competitive research, you first have to identify your competitor and then get all the information you can about them. The idea of spending time to identify your competitor and learn everything about them may seem daunting but it is well worth it.

Find answers to the following questions after you have identified who your competitors are.

  • What are your successful competitors doing?
  • Why is what they are doing working?
  • Can your business do it better?
  • What are the weaknesses of your successful competitors?
  • What are they not doing well?
  • Can your business turn its weaknesses into strengths?
  • How good is your competitors’ customer service?
  • Where do your competitors invest in advertising?
  • What sales and pricing strategies are they using?
  • What marketing strategies are they using?
  • What kind of press coverage do they get?
  • What are their customers saying about your competitors (both the positive and negative)?

If your competitors have a website, it is a good idea to visit their websites for more competitors’ research. Check their “About Us” page for more information.

How to Perform Competitive Analysis

If you are presenting your business plan to investors, you need to clearly distinguish yourself from your competitors. Investors can easily tell when you have not properly researched your competitors.

Take time to think about what unique qualities or features set you apart from your competitors. If you do not have any direct competition offering your product to the market, it does not mean you leave out the competitor analysis section blank. Instead research on other companies that are providing a similar product, or whose product is solving the problem your product solves.

The next step is to create a table listing the top competitors you want to include in your business plan. Ensure you list your business as the last and on the right. What you just created is known as the competitor analysis table.

Direct vs Indirect Competition

You cannot know if your product or service will be a fit for your target market if you have not understood your business and the competitive landscape.

There is no market you want to target where you will not encounter competition, even if your product is innovative. Including competitive analysis in your business plan is essential.

If you are entering an established market, you need to explain how you plan to differentiate your products from the available options in the market. Also, include a list of few companies that you view as your direct competitors The competition you face in an established market is your direct competition.

In situations where you are entering a market with no direct competition, it does not mean there is no competition there. Consider your indirect competition that offers substitutes for the products or services you offer.

For example, if you sell an innovative SaaS product, let us say a project management software , a company offering time management software is your indirect competition.

There is an easy way to find out who your indirect competitors are in the absence of no direct competitors. You simply have to research how your potential customers are solving the problems that your product or service seeks to solve. That is your direct competition.

Factors that Differentiate Your Business from the Competition

There are three main factors that any business can use to differentiate itself from its competition. They are cost leadership, product differentiation, and market segmentation.

1. Cost Leadership

A strategy you can impose to maximize your profits and gain an edge over your competitors. It involves offering lower prices than what the majority of your competitors are offering.

A common practice among businesses looking to enter into a market where there are dominant players is to use free trials or pricing to attract as many customers as possible to their offer.

2. Product Differentiation

Your product or service should have a unique selling proposition (USP) that your competitors do not have or do not stress in their marketing.

Part of the marketing strategy should involve making your products unique and different from your competitors. It does not have to be different from your competitors, it can be the addition to a feature or benefit that your competitors do not currently have.

3. Market Segmentation

As a new business seeking to break into an industry, you will gain more success from focusing on a specific niche or target market, and not the whole industry.

If your competitors are focused on a general need or target market, you can differentiate yourself from them by having a small and hyper-targeted audience. For example, if your competitors are selling men’s clothes in their online stores , you can sell hoodies for men.

4. Define Your Business and Management Structure

The next step in your business plan is your business and management structure. It is the section where you describe the legal structure of your business and the team running it.

Your business is only as good as the management team that runs it, while the management team can only strive when there is a proper business and management structure in place.

If your company is a sole proprietor or a limited liability company (LLC), a general or limited partnership, or a C or an S corporation, state it clearly in this section.

Use an organizational chart to show the management structure in your business. Clearly show who is in charge of what area in your company. It is where you show how each key manager or team leader’s unique experience can contribute immensely to the success of your company. You can also opt to add the resumes and CVs of the key players in your company.

The business and management structure section should show who the owner is, and other owners of the businesses (if the business has other owners). For businesses or companies with multiple owners, include the percent ownership of the various owners and clearly show the extent of each others’ involvement in the company.

Investors want to know who is behind the company and the team running it to determine if it has the right management to achieve its set goals.

Management Team

The management team section is where you show that you have the right team in place to successfully execute the business operations and ideas. Take time to create the management structure for your business. Think about all the important roles and responsibilities that you need managers for to grow your business.

Include brief bios of each key team member and ensure you highlight only the relevant information that is needed. If your team members have background industry experience or have held top positions for other companies and achieved success while filling that role, highlight it in this section.

Create Management Team For Business Plan

A common mistake that many startups make is assigning C-level titles such as (CMO and CEO) to everyone on their team. It is unrealistic for a small business to have those titles. While it may look good on paper for the ego of your team members, it can prevent investors from investing in your business.

Instead of building an unrealistic management structure that does not fit your business reality, it is best to allow business titles to grow as the business grows. Starting everyone at the top leaves no room for future change or growth, which is bad for productivity.

Your management team does not have to be complete before you start writing your business plan. You can have a complete business plan even when there are managerial positions that are empty and need filling.

If you have management gaps in your team, simply show the gaps and indicate you are searching for the right candidates for the role(s). Investors do not expect you to have a full management team when you are just starting your business.

Key Questions to Answer When Structuring Your Management Team

  • Who are the key leaders?
  • What experiences, skills, and educational backgrounds do you expect your key leaders to have?
  • Do your key leaders have industry experience?
  • What positions will they fill and what duties will they perform in those positions?
  • What level of authority do the key leaders have and what are their responsibilities?
  • What is the salary for the various management positions that will attract the ideal candidates?

Additional Tips for Writing the Management Structure Section

1. Avoid Adding ‘Ghost’ Names to Your Management Team

There is always that temptation to include a ‘ghost’ name to your management team to attract and influence investors to invest in your business. Although the presence of these celebrity management team members may attract the attention of investors, it can cause your business to lose any credibility if you get found out.

Seasoned investors will investigate further the members of your management team before committing fully to your business If they find out that the celebrity name used does not play any actual role in your business, they will not invest and may write you off as dishonest.

2. Focus on Credentials But Pay Extra Attention to the Roles

Investors want to know the experience that your key team members have to determine if they can successfully reach the company’s growth and financial goals.

While it is an excellent boost for your key management team to have the right credentials, you also want to pay extra attention to the roles they will play in your company.

Organizational Chart

Organizational chart Infographic

Adding an organizational chart in this section of your business plan is not necessary, you can do it in your business plan’s appendix.

If you are exploring funding options, it is not uncommon to get asked for your organizational chart. The function of an organizational chart goes beyond raising money, you can also use it as a useful planning tool for your business.

An organizational chart can help you identify how best to structure your management team for maximum productivity and point you towards key roles you need to fill in the future.

You can use the organizational chart to show your company’s internal management structure such as the roles and responsibilities of your management team, and relationships that exist between them.

5. Describe Your Product and Service Offering

In your business plan, you have to describe what you sell or the service you plan to offer. It is the next step after defining your business and management structure. The products and services section is where you sell the benefits of your business.

Here you have to explain how your product or service will benefit your customers and describe your product lifecycle. It is also the section where you write down your plans for intellectual property like patent filings and copyrighting.

The research and development that you are undertaking for your product or service need to be explained in detail in this section. However, do not get too technical, sell the general idea and its benefits.

If you have any diagrams or intricate designs of your product or service, do not include them in the products and services section. Instead, leave them for the addendum page. Also, if you are leaving out diagrams or designs for the addendum, ensure you add this phrase “For more detail, visit the addendum Page #.”

Your product and service section in your business plan should include the following:

  • A detailed explanation that clearly shows how your product or service works.
  • The pricing model for your product or service.
  • Your business’ sales and distribution strategy.
  • The ideal customers that want your product or service.
  • The benefits of your products and services.
  • Reason(s) why your product or service is a better alternative to what your competitors are currently offering in the market.
  • Plans for filling the orders you receive
  • If you have current or pending patents, copyrights, and trademarks for your product or service, you can also discuss them in this section.

What to Focus On When Describing the Benefits, Lifecycle, and Production Process of Your Products or Services

In the products and services section, you have to distill the benefits, lifecycle, and production process of your products and services.

When describing the benefits of your products or services, here are some key factors to focus on.

  • Unique features
  • Translating the unique features into benefits
  • The emotional, psychological, and practical payoffs to attract customers
  • Intellectual property rights or any patents

When describing the product life cycle of your products or services, here are some key factors to focus on.

  • Upsells, cross-sells, and down-sells
  • Time between purchases
  • Plans for research and development.

When describing the production process for your products or services, you need to think about the following:

  • The creation of new or existing products and services.
  • The sources for the raw materials or components you need for production.
  • Assembling the products
  • Maintaining quality control
  • Supply-chain logistics (receiving the raw materials and delivering the finished products)
  • The day-to-day management of the production processes, bookkeeping, and inventory.

Tips for Writing the Products or Services Section of Your Business Plan

1. Avoid Technical Descriptions and Industry Buzzwords

The products and services section of your business plan should clearly describe the products and services that your company provides. However, it is not a section to include technical jargons that anyone outside your industry will not understand.

A good practice is to remove highly detailed or technical descriptions in favor of simple terms. Industry buzzwords are not necessary, if there are simpler terms you can use, then use them. If you plan to use your business plan to source funds, making the product or service section so technical will do you no favors.

2. Describe How Your Products or Services Differ from Your Competitors

When potential investors look at your business plan, they want to know how the products and services you are offering differ from that of your competition. Differentiating your products or services from your competition in a way that makes your solution more attractive is critical.

If you are going the innovative path and there is no market currently for your product or service, you need to describe in this section why the market needs your product or service.

For example, overnight delivery was a niche business that only a few companies were participating in. Federal Express (FedEx) had to show in its business plan that there was a large opportunity for that service and they justified why the market needed that service.

3. Long or Short Products or Services Section

Should your products or services section be short? Does the long products or services section attract more investors?

There are no straightforward answers to these questions. Whether your products or services section should be long or relatively short depends on the nature of your business.

If your business is product-focused, then automatically you need to use more space to describe the details of your products. However, if the product your business sells is a commodity item that relies on competitive pricing or other pricing strategies, you do not have to use up so much space to provide significant details about the product.

Likewise, if you are selling a commodity that is available in numerous outlets, then you do not have to spend time on writing a long products or services section.

The key to the success of your business is most likely the effectiveness of your marketing strategies compared to your competitors. Use more space to address that section.

If you are creating a new product or service that the market does not know about, your products or services section can be lengthy. The reason why is because you need to explain everything about the product or service such as the nature of the product, its use case, and values.

A short products or services section for an innovative product or service will not give the readers enough information to properly evaluate your business.

4. Describe Your Relationships with Vendors or Suppliers

Your business will rely on vendors or suppliers to supply raw materials or the components needed to make your products. In your products and services section, describe your relationships with your vendors and suppliers fully.

Avoid the mistake of relying on only one supplier or vendor. If that supplier or vendor fails to supply or goes out of business, you can easily face supply problems and struggle to meet your demands. Plan to set up multiple vendor or supplier relationships for better business stability.

5. Your Primary Goal Is to Convince Your Readers

The primary goal of your business plan is to convince your readers that your business is viable and to create a guide for your business to follow. It applies to the products and services section.

When drafting this section, think like the reader. See your reader as someone who has no idea about your products and services. You are using the products and services section to provide the needed information to help your reader understand your products and services. As a result, you have to be clear and to the point.

While you want to educate your readers about your products or services, you also do not want to bore them with lots of technical details. Show your products and services and not your fancy choice of words.

Your products and services section should provide the answer to the “what” question for your business. You and your management team may run the business, but it is your products and services that are the lifeblood of the business.

Key Questions to Answer When Writing your Products and Services Section

Answering these questions can help you write your products and services section quickly and in a way that will appeal to your readers.

  • Are your products existing on the market or are they still in the development stage?
  • What is your timeline for adding new products and services to the market?
  • What are the positives that make your products and services different from your competitors?
  • Do your products and services have any competitive advantage that your competitors’ products and services do not currently have?
  • Do your products or services have any competitive disadvantages that you need to overcome to compete with your competitors? If your answer is yes, state how you plan to overcome them,
  • How much does it cost to produce your products or services? How much do you plan to sell it for?
  • What is the price for your products and services compared to your competitors? Is pricing an issue?
  • What are your operating costs and will it be low enough for you to compete with your competitors and still take home a reasonable profit margin?
  • What is your plan for acquiring your products? Are you involved in the production of your products or services?
  • Are you the manufacturer and produce all the components you need to create your products? Do you assemble your products by using components supplied by other manufacturers? Do you purchase your products directly from suppliers or wholesalers?
  • Do you have a steady supply of products that you need to start your business? (If your business is yet to kick-off)
  • How do you plan to distribute your products or services to the market?

You can also hint at the marketing or promotion plans you have for your products or services such as how you plan to build awareness or retain customers. The next section is where you can go fully into details about your business’s marketing and sales plan.

6. Show and Explain Your Marketing and Sales Plan

Providing great products and services is wonderful, but it means nothing if you do not have a marketing and sales plan to inform your customers about them. Your marketing and sales plan is critical to the success of your business.

The sales and marketing section is where you show and offer a detailed explanation of your marketing and sales plan and how you plan to execute it. It covers your pricing plan, proposed advertising and promotion activities, activities and partnerships you need to make your business a success, and the benefits of your products and services.

There are several ways you can approach your marketing and sales strategy. Ideally, your marketing and sales strategy has to fit the unique needs of your business.

In this section, you describe how the plans your business has for attracting and retaining customers, and the exact process for making a sale happen. It is essential to thoroughly describe your complete marketing and sales plans because you are still going to reference this section when you are making financial projections for your business.

Outline Your Business’ Unique Selling Proposition (USP)

Unique Selling Proposition (USP)

The sales and marketing section is where you outline your business’s unique selling proposition (USP). When you are developing your unique selling proposition, think about the strongest reasons why people should buy from you over your competition. That reason(s) is most likely a good fit to serve as your unique selling proposition (USP).

Target Market and Target Audience

Plans on how to get your products or services to your target market and how to get your target audience to buy them go into this section. You also highlight the strengths of your business here, particularly what sets them apart from your competition.

Target Market Vs Target Audience

Before you start writing your marketing and sales plan, you need to have properly defined your target audience and fleshed out your buyer persona. If you do not first understand the individual you are marketing to, your marketing and sales plan will lack any substance and easily fall.

Creating a Smart Marketing and Sales Plan

Marketing your products and services is an investment that requires you to spend money. Like any other investment, you have to generate a good return on investment (ROI) to justify using that marketing and sales plan. Good marketing and sales plans bring in high sales and profits to your company.

Avoid spending money on unproductive marketing channels. Do your research and find out the best marketing and sales plan that works best for your company.

Your marketing and sales plan can be broken into different parts: your positioning statement, pricing, promotion, packaging, advertising, public relations, content marketing, social media, and strategic alliances.

Your Positioning Statement

Your positioning statement is the first part of your marketing and sales plan. It refers to the way you present your company to your customers.

Are you the premium solution, the low-price solution, or are you the intermediary between the two extremes in the market? What do you offer that your competitors do not that can give you leverage in the market?

Before you start writing your positioning statement, you need to spend some time evaluating the current market conditions. Here are some questions that can help you to evaluate the market

  • What are the unique features or benefits that you offer that your competitors lack?
  • What are your customers’ primary needs and wants?
  • Why should a customer choose you over your competition? How do you plan to differentiate yourself from the competition?
  • How does your company’s solution compare with other solutions in the market?

After answering these questions, then you can start writing your positioning statement. Your positioning statement does not have to be in-depth or too long.

All you need to explain with your positioning statement are two focus areas. The first is the position of your company within the competitive landscape. The other focus area is the core value proposition that sets your company apart from other alternatives that your ideal customer might consider.

Here is a simple template you can use to develop a positioning statement.

For [description of target market] who [need of target market], [product or service] [how it meets the need]. Unlike [top competition], it [most essential distinguishing feature].

For example, let’s create the positioning statement for fictional accounting software and QuickBooks alternative , TBooks.

“For small business owners who need accounting services, TBooks is an accounting software that helps small businesses handle their small business bookkeeping basics quickly and easily. Unlike Wave, TBooks gives small businesses access to live sessions with top accountants.”

You can edit this positioning statement sample and fill it with your business details.

After writing your positioning statement, the next step is the pricing of your offerings. The overall positioning strategy you set in your positioning statement will often determine how you price your products or services.

Pricing is a powerful tool that sends a strong message to your customers. Failure to get your pricing strategy right can make or mar your business. If you are targeting a low-income audience, setting a premium price can result in low sales.

You can use pricing to communicate your positioning to your customers. For example, if you are offering a product at a premium price, you are sending a message to your customers that the product belongs to the premium category.

Basic Rules to Follow When Pricing Your Offering

Setting a price for your offering involves more than just putting a price tag on it. Deciding on the right pricing for your offering requires following some basic rules. They include covering your costs, primary and secondary profit center pricing, and matching the market rate.

  • Covering Your Costs: The price you set for your products or service should be more than it costs you to produce and deliver them. Every business has the same goal, to make a profit. Depending on the strategy you want to use, there are exceptions to this rule. However, the vast majority of businesses follow this rule.
  • Primary and Secondary Profit Center Pricing: When a company sets its price above the cost of production, it is making that product its primary profit center. A company can also decide not to make its initial price its primary profit center by selling below or at even with its production cost. It rather depends on the support product or even maintenance that is associated with the initial purchase to make its profit. The initial price thus became its secondary profit center.
  • Matching the Market Rate: A good rule to follow when pricing your products or services is to match your pricing with consumer demand and expectations. If you price your products or services beyond the price your customer perceives as the ideal price range, you may end up with no customers. Pricing your products too low below what your customer perceives as the ideal price range may lead to them undervaluing your offering.

Pricing Strategy

Your pricing strategy influences the price of your offering. There are several pricing strategies available for you to choose from when examining the right pricing strategy for your business. They include cost-plus pricing, market-based pricing, value pricing, and more.

Pricing strategy influences the price of offering

  • Cost-plus Pricing: This strategy is one of the simplest and oldest pricing strategies. Here you consider the cost of producing a unit of your product and then add a profit to it to arrive at your market price. It is an effective pricing strategy for manufacturers because it helps them cover their initial costs. Another name for the cost-plus pricing strategy is the markup pricing strategy.
  • Market-based Pricing: This pricing strategy analyses the market including competitors’ pricing and then sets a price based on what the market is expecting. With this pricing strategy, you can either set your price at the low-end or high-end of the market.
  • Value Pricing: This pricing strategy involves setting a price based on the value you are providing to your customer. When adopting a value-based pricing strategy, you have to set a price that your customers are willing to pay. Service-based businesses such as small business insurance providers , luxury goods sellers, and the fashion industry use this pricing strategy.

After carefully sorting out your positioning statement and pricing, the next item to look at is your promotional strategy. Your promotional strategy explains how you plan on communicating with your customers and prospects.

As a business, you must measure all your costs, including the cost of your promotions. You also want to measure how much sales your promotions bring for your business to determine its usefulness. Promotional strategies or programs that do not lead to profit need to be removed.

There are different types of promotional strategies you can adopt for your business, they include advertising, public relations, and content marketing.


Your business plan should include your advertising plan which can be found in the marketing and sales plan section. You need to include an overview of your advertising plans such as the areas you plan to spend money on to advertise your business and offers.

Ensure that you make it clear in this section if your business will be advertising online or using the more traditional offline media, or the combination of both online and offline media. You can also include the advertising medium you want to use to raise awareness about your business and offers.

Some common online advertising mediums you can use include social media ads, landing pages, sales pages, SEO, Pay-Per-Click, emails, Google Ads, and others. Some common traditional and offline advertising mediums include word of mouth, radios, direct mail, televisions, flyers, billboards, posters, and others.

A key component of your advertising strategy is how you plan to measure the effectiveness and success of your advertising campaign. There is no point in sticking with an advertising plan or medium that does not produce results for your business in the long run.

Public Relations

A great way to reach your customers is to get the media to cover your business or product. Publicity, especially good ones, should be a part of your marketing and sales plan. In this section, show your plans for getting prominent reviews of your product from reputable publications and sources.

Your business needs that exposure to grow. If public relations is a crucial part of your promotional strategy, provide details about your public relations plan here.

Content Marketing

Content marketing is a popular promotional strategy used by businesses to inform and attract their customers. It is about teaching and educating your prospects on various topics of interest in your niche, it does not just involve informing them about the benefits and features of the products and services you have,

The Benefits of Content Marketing

Businesses publish content usually for free where they provide useful information, tips, and advice so that their target market can be made aware of the importance of their products and services. Content marketing strategies seek to nurture prospects into buyers over time by simply providing value.

Your company can create a blog where it will be publishing content for its target market. You will need to use the best website builder such as Wix and Squarespace and the best web hosting services such as Bluehost, Hostinger, and other Bluehost alternatives to create a functional blog or website.

If content marketing is a crucial part of your promotional strategy (as it should be), detail your plans under promotions.

Including high-quality images of the packaging of your product in your business plan is a lovely idea. You can add the images of the packaging of that product in the marketing and sales plan section. If you are not selling a product, then you do not need to include any worry about the physical packaging of your product.

When organizing the packaging section of your business plan, you can answer the following questions to make maximum use of this section.

  • Is your choice of packaging consistent with your positioning strategy?
  • What key value proposition does your packaging communicate? (It should reflect the key value proposition of your business)
  • How does your packaging compare to that of your competitors?

Social Media

Your 21st-century business needs to have a good social media presence. Not having one is leaving out opportunities for growth and reaching out to your prospect.

You do not have to join the thousands of social media platforms out there. What you need to do is join the ones that your customers are active on and be active there.

Most popular social media platforms

Businesses use social media to provide information about their products such as promotions, discounts, the benefits of their products, and content on their blogs.

Social media is also a platform for engaging with your customers and getting feedback about your products or services. Make no mistake, more and more of your prospects are using social media channels to find more information about companies.

You need to consider the social media channels you want to prioritize your business (prioritize the ones your customers are active in) and your branding plans in this section.

Choosing the right social media platform

Strategic Alliances

If your company plans to work closely with other companies as part of your sales and marketing plan, include it in this section. Prove details about those partnerships in your business plan if you have already established them.

Strategic alliances can be beneficial for all parties involved including your company. Working closely with another company in the form of a partnership can provide access to a different target market segment for your company.

The company you are partnering with may also gain access to your target market or simply offer a new product or service (that of your company) to its customers.

Mutually beneficial partnerships can cover the weaknesses of one company with the strength of another. You should consider strategic alliances with companies that sell complimentary products to yours. For example, if you provide printers, you can partner with a company that produces ink since the customers that buy printers from you will also need inks for printing.

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

Identify who your customers are, the market you want to target. Then determine the best ways to get your products or services to your potential customers.

2. Evaluate Your Competition

One of the goals of having a marketing plan is to distinguish yourself from your competition. You cannot stand out from them without first knowing them in and out.

You can know your competitors by gathering information about their products, pricing, service, and advertising campaigns.

These questions can help you know your competition.

  • What makes your competition successful?
  • What are their weaknesses?
  • What are customers saying about your competition?

3. Consider Your Brand

Customers' perception of your brand has a strong impact on your sales. Your marketing and sales plan should seek to bolster the image of your brand. Before you start marketing your business, think about the message you want to pass across about your business and your products and services.

4. Focus on Benefits

The majority of your customers do not view your product in terms of features, what they want to know is the benefits and solutions your product offers. Think about the problems your product solves and the benefits it delivers, and use it to create the right sales and marketing message.

Your marketing plan should focus on what you want your customer to get instead of what you provide. Identify those benefits in your marketing and sales plan.

5. Focus on Differentiation

Your marketing and sales plan should look for a unique angle they can take that differentiates your business from the competition, even if the products offered are similar. Some good areas of differentiation you can use are your benefits, pricing, and features.

Key Questions to Answer When Writing Your Marketing and Sales Plan

  • What is your company’s budget for sales and marketing campaigns?
  • What key metrics will you use to determine if your marketing plans are successful?
  • What are your alternatives if your initial marketing efforts do not succeed?
  • Who are the sales representatives you need to promote your products or services?
  • What are the marketing and sales channels you plan to use? How do you plan to get your products in front of your ideal customers?
  • Where will you sell your products?

You may want to include samples of marketing materials you plan to use such as print ads, website descriptions, and social media ads. While it is not compulsory to include these samples, it can help you better communicate your marketing and sales plan and objectives.

The purpose of the marketing and sales section is to answer this question “How will you reach your customers?” If you cannot convincingly provide an answer to this question, you need to rework your marketing and sales section.

7. Clearly Show Your Funding Request

If you are writing your business plan to ask for funding from investors or financial institutions, the funding request section is where you will outline your funding requirements. The funding request section should answer the question ‘How much money will your business need in the near future (3 to 5 years)?’

A good funding request section will clearly outline and explain the amount of funding your business needs over the next five years. You need to know the amount of money your business needs to make an accurate funding request.

Also, when writing your funding request, provide details of how the funds will be used over the period. Specify if you want to use the funds to buy raw materials or machinery, pay salaries, pay for advertisements, and cover specific bills such as rent and electricity.

In addition to explaining what you want to use the funds requested for, you need to clearly state the projected return on investment (ROI) . Investors and creditors want to know if your business can generate profit for them if they put funds into it.

Ensure you do not inflate the figures and stay as realistic as possible. Investors and financial institutions you are seeking funds from will do their research before investing money in your business.

If you are not sure of an exact number to request from, you can use some range of numbers as rough estimates. Add a best-case scenario and a work-case scenario to your funding request. Also, include a description of your strategic future financial plans such as selling your business or paying off debts.

Funding Request: Debt or Equity?

When making your funding request, specify the type of funding you want. Do you want debt or equity? Draw out the terms that will be applicable for the funding, and the length of time the funding request will cover.

Case for Equity

If your new business has not yet started generating profits, you are most likely preparing to sell equity in your business to raise capital at the early stage. Equity here refers to ownership. In this case, you are selling a portion of your company to raise capital.

Although this method of raising capital for your business does not put your business in debt, keep in mind that an equity owner may expect to play a key role in company decisions even if he does not hold a major stake in the company.

Most equity sales for startups are usually private transactions . If you are making a funding request by offering equity in exchange for funding, let the investor know that they will be paid a dividend (a share of the company’s profit). Also, let the investor know the process for selling their equity in your business.

Case for Debt

You may decide not to offer equity in exchange for funds, instead, you make a funding request with the promise to pay back the money borrowed at the agreed time frame.

When making a funding request with an agreement to pay back, note that you will have to repay your creditors both the principal amount borrowed and the interest on it. Financial institutions offer this type of funding for businesses.

Large companies combine both equity and debt in their capital structure. When drafting your business plan, decide if you want to offer both or one over the other.

Before you sell equity in exchange for funding in your business, consider if you are willing to accept not being in total control of your business. Also, before you seek loans in your funding request section, ensure that the terms of repayment are favorable.

You should set a clear timeline in your funding request so that potential investors and creditors can know what you are expecting. Some investors and creditors may agree to your funding request and then delay payment for longer than 30 days, meanwhile, your business needs an immediate cash injection to operate efficiently.

Additional Tips for Writing the Funding Request Section of your Business Plan

The funding request section is not necessary for every business, it is only needed by businesses who plan to use their business plan to secure funding.

If you are adding the funding request section to your business plan, provide an itemized summary of how you plan to use the funds requested. Hiring a lawyer, accountant, or other professionals may be necessary for the proper development of this section.

You should also gather and use financial statements that add credibility and support to your funding requests. Ensure that the financial statements you use should include your projected financial data such as projected cash flows, forecast statements, and expenditure budgets.

If you are an existing business, include all historical financial statements such as cash flow statements, balance sheets and income statements .

Provide monthly and quarterly financial statements for a year. If your business has records that date back beyond the one-year mark, add the yearly statements of those years. These documents are for the appendix section of your business plan.

8. Detail Your Financial Plan, Metrics, and Projections

If you used the funding request section in your business plan, supplement it with a financial plan, metrics, and projections. This section paints a picture of the past performance of your business and then goes ahead to make an informed projection about its future.

The goal of this section is to convince readers that your business is going to be a financial success. It outlines your business plan to generate enough profit to repay the loan (with interest if applicable) and to generate a decent return on investment for investors.

If you have an existing business already in operation, use this section to demonstrate stability through finance. This section should include your cash flow statements, balance sheets, and income statements covering the last three to five years. If your business has some acceptable collateral that you can use to acquire loans, list it in the financial plan, metrics, and projection section.

Apart from current financial statements, this section should also contain a prospective financial outlook that spans the next five years. Include forecasted income statements, cash flow statements, balance sheets, and capital expenditure budget.

If your business is new and is not yet generating profit, use clear and realistic projections to show the potentials of your business.

When drafting this section, research industry norms and the performance of comparable businesses. Your financial projections should cover at least five years. State the logic behind your financial projections. Remember you can always make adjustments to this section as the variables change.

The financial plan, metrics, and projection section create a baseline which your business can either exceed or fail to reach. If your business fails to reach your projections in this section, you need to understand why it failed.

Investors and loan managers spend a lot of time going through the financial plan, metrics, and projection section compared to other parts of the business plan. Ensure you spend time creating credible financial analyses for your business in this section.

Many entrepreneurs find this section daunting to write. You do not need a business degree to create a solid financial forecast for your business. Business finances, especially for startups, are not as complicated as they seem. There are several online tools and templates that make writing this section so much easier.

Use Graphs and Charts

The financial plan, metrics, and projection section is a great place to use graphs and charts to tell the financial story of your business. Charts and images make it easier to communicate your finances.

Accuracy in this section is key, ensure you carefully analyze your past financial statements properly before making financial projects.

Address the Risk Factors and Show Realistic Financial Projections

Keep your financial plan, metrics, and projection realistic. It is okay to be optimistic in your financial projection, however, you have to justify it.

You should also address the various risk factors associated with your business in this section. Investors want to know the potential risks involved, show them. You should also show your plans for mitigating those risks.

What You Should In The Financial Plan, Metrics, and Projection Section of Your Business Plan

The financial plan, metrics, and projection section of your business plan should have monthly sales and revenue forecasts for the first year. It should also include annual projections that cover 3 to 5 years.

A three-year projection is a basic requirement to have in your business plan. However, some investors may request a five-year forecast.

Your business plan should include the following financial statements: sales forecast, personnel plan, income statement, income statement, cash flow statement, balance sheet, and an exit strategy.

1. Sales Forecast

Sales forecast refers to your projections about the number of sales your business is going to record over the next few years. It is typically broken into several rows, with each row assigned to a core product or service that your business is offering.

One common mistake people make in their business plan is to break down the sales forecast section into long details. A sales forecast should forecast the high-level details.

For example, if you are forecasting sales for a payroll software provider, you could break down your forecast into target market segments or subscription categories.

Benefits of Sales Forecasting

Your sales forecast section should also have a corresponding row for each sales row to cover the direct cost or Cost of Goods Sold (COGS). The objective of these rows is to show the expenses that your business incurs in making and delivering your product or service.

Note that your Cost of Goods Sold (COGS) should only cover those direct costs incurred when making your products. Other indirect expenses such as insurance, salaries, payroll tax, and rent should not be included.

For example, the Cost of Goods Sold (COGS) for a restaurant is the cost of ingredients while for a consulting company it will be the cost of paper and other presentation materials.

Factors that affect sales forecasting

2. Personnel Plan

The personnel plan section is where you provide details about the payment plan for your employees. For a small business, you can easily list every position in your company and how much you plan to pay in the personnel plan.

However, for larger businesses, you have to break the personnel plan into functional groups such as sales and marketing.

The personnel plan will also include the cost of an employee beyond salary, commonly referred to as the employee burden. These costs include insurance, payroll taxes , and other essential costs incurred monthly as a result of having employees on your payroll.

True HR Cost Infographic

3. Income Statement

The income statement section shows if your business is making a profit or taking a loss. Another name for the income statement is the profit and loss (P&L). It takes data from your sales forecast and personnel plan and adds other ongoing expenses you incur while running your business.

The income statement section

Every business plan should have an income statement. It subtracts your business expenses from its earnings to show if your business is generating profit or incurring losses.

The income statement has the following items: sales, Cost of Goods Sold (COGS), gross margin, operating expenses, total operating expenses, operating income , total expenses, and net profit.

  • Sales refer to the revenue your business generates from selling its products or services. Other names for sales are income or revenue.
  • Cost of Goods Sold (COGS) refers to the total cost of selling your products. Other names for COGS are direct costs or cost of sales. Manufacturing businesses use the Costs of Goods Manufactured (COGM) .
  • Gross Margin is the figure you get when you subtract your COGS from your sales. In your income statement, you can express it as a percentage of total sales (Gross margin / Sales = Gross Margin Percent).
  • Operating Expenses refer to all the expenses you incur from running your business. It exempts the COGS because it stands alone as a core part of your income statement. You also have to exclude taxes, depreciation, and amortization. Your operating expenses include salaries, marketing expenses, research and development (R&D) expenses, and other expenses.
  • Total Operating Expenses refers to the sum of all your operating expenses including those exemptions named above under operating expenses.
  • Operating Income refers to earnings before interest, taxes, depreciation, and amortization. It is simply known as the acronym EBITDA (earnings before interest, taxes, depreciation, and amortization). Calculating your operating income is simple, all you need to do is to subtract your COGS and total operating expenses from your sales.
  • Total Expenses refer to the sum of your operating expenses and your business’ interest, taxes, depreciation, and amortization.
  • Net profit shows whether your business has made a profit or taken a loss during a given timeframe.

4. Cash Flow Statement

The cash flow statement tracks the money you have in the bank at any given point. It is often confused with the income statement or the profit and loss statement. They are both different types of financial statements. The income statement calculates your profits and losses while the cash flow statement shows you how much you have in the bank.

Cash Flow Statement Example

5. Balance Sheet

The balance sheet is a financial statement that provides an overview of the financial health of your business. It contains information about the assets and liabilities of your company, and owner’s or shareholders’ equity.

You can get the net worth of your company by subtracting your company’s liabilities from its assets.

Balance sheet Formula

6. Exit Strategy

The exit strategy refers to a probable plan for selling your business either to the public in an IPO or to another company. It is the last thing you include in the financial plan, metrics, and projection section.

You can choose to omit the exit strategy from your business plan if you plan to maintain full ownership of your business and do not plan on seeking angel investment or virtual capitalist (VC) funding.

Investors may want to know what your exit plan is. They invest in your business to get a good return on investment.

Your exit strategy does not have to include long and boring details. Ensure you identify some interested parties who may be interested in buying the company if it becomes a success.

Exit Strategy Section of Business Plan Infographic

Key Questions to Answer with Your Financial Plan, Metrics, and Projection

Your financial plan, metrics, and projection section helps investors, creditors, or your internal managers to understand what your expenses are, the amount of cash you need, and what it takes to make your company profitable. It also shows what you will be doing with any funding.

You do not need to show actual financial data if you do not have one. Adding forecasts and projections to your financial statements is added proof that your strategy is feasible and shows investors you have planned properly.

Here are some key questions to answer to help you develop this section.

  • What is your sales forecast for the next year?
  • When will your company achieve a positive cash flow?
  • What are the core expenses you need to operate?
  • How much money do you need upfront to operate or grow your company?
  • How will you use the loans or investments?

9. Add an Appendix to Your Business Plan

Adding an appendix to your business plan is optional. It is a useful place to put any charts, tables, legal notes, definitions, permits, résumés, and other critical information that do not fit into other sections of your business plan.

The appendix section is where you would want to include details of a patent or patent-pending if you have one. You can always add illustrations or images of your products here. It is the last section of your business plan.

When writing your business plan, there are details you cut short or remove to prevent the entire section from becoming too lengthy. There are also details you want to include in the business plan but are not a good fit for any of the previous sections. You can add that additional information to the appendix section.

Businesses also use the appendix section to include supporting documents or other materials specially requested by investors or lenders.

You can include just about any information that supports the assumptions and statements you made in the business plan under the appendix. It is the one place in the business plan where unrelated data and information can coexist amicably.

If your appendix section is lengthy, try organizing it by adding a table of contents at the beginning of the appendix section. It is also advisable to group similar information to make it easier for the reader to access them.

A well-organized appendix section makes it easier to share your information clearly and concisely. Add footnotes throughout the rest of the business plan or make references in the plan to the documents in the appendix.

The appendix section is usually only necessary if you are seeking funding from investors or lenders, or hoping to attract partners.

People reading business plans do not want to spend time going through a heap of backup information, numbers, and charts. Keep these documents or information in the Appendix section in case the reader wants to dig deeper.

Common Items to Include in the Appendix Section of Your Business Plan

The appendix section includes documents that supplement or support the information or claims given in other sections of the business plans. Common items you can include in the appendix section include:

  • Additional data about the process of manufacturing or creation
  • Additional description of products or services such as product schematics
  • Additional financial documents or projections
  • Articles of incorporation and status
  • Backup for market research or competitive analysis
  • Bank statements
  • Business registries
  • Client testimonials (if your business is already running)
  • Copies of insurances
  • Credit histories (personal or/and business)
  • Deeds and permits
  • Equipment leases
  • Examples of marketing and advertising collateral
  • Industry associations and memberships
  • Images of product
  • Intellectual property
  • Key customer contracts
  • Legal documents and other contracts
  • Letters of reference
  • Links to references
  • Market research data
  • Organizational charts
  • Photographs of potential facilities
  • Professional licenses pertaining to your legal structure or type of business
  • Purchase orders
  • Resumes of the founder(s) and key managers
  • State and federal identification numbers or codes
  • Trademarks or patents’ registrations

Avoid using the appendix section as a place to dump any document or information you feel like adding. Only add documents or information that you support or increase the credibility of your business plan.

Tips and Strategies for Writing a Convincing Business Plan

To achieve a perfect business plan, you need to consider some key tips and strategies. These tips will raise the efficiency of your business plan above average.

1. Know Your Audience

When writing a business plan, you need to know your audience . Business owners write business plans for different reasons. Your business plan has to be specific. For example, you can write business plans to potential investors, banks, and even fellow board members of the company.

The audience you are writing to determines the structure of the business plan. As a business owner, you have to know your audience. Not everyone will be your audience. Knowing your audience will help you to narrow the scope of your business plan.

Consider what your audience wants to see in your projects, the likely questions they might ask, and what interests them.

  • A business plan used to address a company's board members will center on its employment schemes, internal affairs, projects, stakeholders, etc.
  • A business plan for financial institutions will talk about the size of your market and the chances for you to pay back any loans you demand.
  • A business plan for investors will show proof that you can return the investment capital within a specific time. In addition, it discusses your financial projections, tractions, and market size.

2. Get Inspiration from People

Writing a business plan from scratch as an entrepreneur can be daunting. That is why you need the right inspiration to push you to write one. You can gain inspiration from the successful business plans of other businesses. Look at their business plans, the style they use, the structure of the project, etc.

To make your business plan easier to create, search companies related to your business to get an exact copy of what you need to create an effective business plan. You can also make references while citing examples in your business plans.

When drafting your business plan, get as much help from others as you possibly can. By getting inspiration from people, you can create something better than what they have.

3. Avoid Being Over Optimistic

Many business owners make use of strong adjectives to qualify their content. One of the big mistakes entrepreneurs make when preparing a business plan is promising too much.

The use of superlatives and over-optimistic claims can prepare the audience for more than you can offer. In the end, you disappoint the confidence they have in you.

In most cases, the best option is to be realistic with your claims and statistics. Most of the investors can sense a bit of incompetency from the overuse of superlatives. As a new entrepreneur, do not be tempted to over-promise to get the interests of investors.

The concept of entrepreneurship centers on risks, nothing is certain when you make future analyses. What separates the best is the ability to do careful research and work towards achieving that, not promising more than you can achieve.

To make an excellent first impression as an entrepreneur, replace superlatives with compelling data-driven content. In this way, you are more specific than someone promising a huge ROI from an investment.

4. Keep it Simple and Short

When writing business plans, ensure you keep them simple throughout. Irrespective of the purpose of the business plan, your goal is to convince the audience.

One way to achieve this goal is to make them understand your proposal. Therefore, it would be best if you avoid the use of complex grammar to express yourself. It would be a huge turn-off if the people you want to convince are not familiar with your use of words.

Another thing to note is the length of your business plan. It would be best if you made it as brief as possible.

You hardly see investors or agencies that read through an extremely long document. In that case, if your first few pages can’t convince them, then you have lost it. The more pages you write, the higher the chances of you derailing from the essential contents.

To ensure your business plan has a high conversion rate, you need to dispose of every unnecessary information. For example, if you have a strategy that you are not sure of, it would be best to leave it out of the plan.

5. Make an Outline and Follow Through

A perfect business plan must have touched every part needed to convince the audience. Business owners get easily tempted to concentrate more on their products than on other sections. Doing this can be detrimental to the efficiency of the business plan.

For example, imagine you talking about a product but omitting or providing very little information about the target audience. You will leave your clients confused.

To ensure that your business plan communicates your full business model to readers, you have to input all the necessary information in it. One of the best ways to achieve this is to design a structure and stick to it.

This structure is what guides you throughout the writing. To make your work easier, you can assign an estimated word count or page limit to every section to avoid making it too bulky for easy reading. As a guide, the necessary things your business plan must contain are:

  • Table of contents
  • Introduction
  • Product or service description
  • Target audience
  • Market size
  • Competition analysis
  • Financial projections

Some specific businesses can include some other essential sections, but these are the key sections that must be in every business plan.

6. Ask a Professional to Proofread

When writing a business plan, you must tie all loose ends to get a perfect result. When you are done with writing, call a professional to go through the document for you. You are bound to make mistakes, and the way to correct them is to get external help.

You should get a professional in your field who can relate to every section of your business plan. It would be easier for the professional to notice the inner flaws in the document than an editor with no knowledge of your business.

In addition to getting a professional to proofread, get an editor to proofread and edit your document. The editor will help you identify grammatical errors, spelling mistakes, and inappropriate writing styles.

Writing a business plan can be daunting, but you can surmount that obstacle and get the best out of it with these tips.

Business Plan Examples and Templates That’ll Save You Tons of Time

1. hubspot's one-page business plan.

HubSpot's One Page Business Plan

The one-page business plan template by HubSpot is the perfect guide for businesses of any size, irrespective of their business strategy. Although the template is condensed into a page, your final business plan should not be a page long! The template is designed to ask helpful questions that can help you develop your business plan.

Hubspot’s one-page business plan template is divided into nine fields:

  • Business opportunity
  • Company description
  • Industry analysis
  • Target market
  • Implementation timeline
  • Marketing plan
  • Financial summary
  • Funding required

2. Bplan’s Free Business Plan Template

Bplan’s Free Business Plan Template

Bplans' free business plan template is investor-approved. It is a rich template used by prestigious educational institutions such as Babson College and Princeton University to teach entrepreneurs how to create a business plan.

The template has six sections: the executive summary, opportunity, execution, company, financial plan, and appendix. There is a step-by-step guide for writing every little detail in the business plan. Follow the instructions each step of the way and you will create a business plan that impresses investors or lenders easily.

3. HubSpot's Downloadable Business Plan Template

HubSpot's Downloadable Business Plan Template

HubSpot’s downloadable business plan template is a more comprehensive option compared to the one-page business template by HubSpot. This free and downloadable business plan template is designed for entrepreneurs.

The template is a comprehensive guide and checklist for business owners just starting their businesses. It tells you everything you need to fill in each section of the business plan and how to do it.

There are nine sections in this business plan template: an executive summary, company and business description, product and services line, market analysis, marketing plan, sales plan, legal notes, financial considerations, and appendix.

4. Business Plan by My Own Business Institute

The Business Profile

My Own Business Institute (MOBI) which is a part of Santa Clara University's Center for Innovation and Entrepreneurship offers a free business plan template. You can either copy the free business template from the link provided above or download it as a Word document.

The comprehensive template consists of a whopping 15 sections.

  • The Business Profile
  • The Vision and the People
  • Home-Based Business and Freelance Business Opportunities
  • Organization
  • Licenses and Permits
  • Business Insurance
  • Communication Tools
  • Acquisitions
  • Location and Leasing
  • Accounting and Cash Flow
  • Opening and Marketing
  • Managing Employees
  • Expanding and Handling Problems

There are lots of helpful tips on how to fill each section in the free business plan template by MOBI.

5. Score's Business Plan Template for Startups

Score's Business Plan Template for Startups

Score is an American nonprofit organization that helps entrepreneurs build successful companies. This business plan template for startups by Score is available for free download. The business plan template asks a whooping 150 generic questions that help entrepreneurs from different fields to set up the perfect business plan.

The business plan template for startups contains clear instructions and worksheets, all you have to do is answer the questions and fill the worksheets.

There are nine sections in the business plan template: executive summary, company description, products and services, marketing plan, operational plan, management and organization, startup expenses and capitalization, financial plan, and appendices.

The ‘refining the plan’ resource contains instructions that help you modify your business plan to suit your specific needs, industry, and target audience. After you have completed Score’s business plan template, you can work with a SCORE mentor for expert advice in business planning.

6. Minimalist Architecture Business Plan Template by Venngage

Minimalist Architecture Business Plan Template by Venngage

The minimalist architecture business plan template is a simple template by Venngage that you can customize to suit your business needs .

There are five sections in the template: an executive summary, statement of problem, approach and methodology, qualifications, and schedule and benchmark. The business plan template has instructions that guide users on what to fill in each section.

7. Small Business Administration Free Business Plan Template

Small Business Administration Free Business Plan Template

The Small Business Administration (SBA) offers two free business plan templates, filled with practical real-life examples that you can model to create your business plan. Both free business plan templates are written by fictional business owners: Rebecca who owns a consulting firm, and Andrew who owns a toy company.

There are five sections in the two SBA’s free business plan templates.

  • Executive Summary
  • Company Description
  • Service Line
  • Marketing and Sales

8. The $100 Startup's One-Page Business Plan

The $100 Startup's One Page Business Plan

The one-page business plan by the $100 startup is a simple business plan template for entrepreneurs who do not want to create a long and complicated plan . You can include more details in the appendices for funders who want more information beyond what you can put in the one-page business plan.

There are five sections in the one-page business plan such as overview, ka-ching, hustling, success, and obstacles or challenges or open questions. You can answer all the questions using one or two sentences.

9. PandaDoc’s Free Business Plan Template

PandaDoc’s Free Business Plan Template

The free business plan template by PandaDoc is a comprehensive 15-page document that describes the information you should include in every section.

There are 11 sections in PandaDoc’s free business plan template.

  • Executive summary
  • Business description
  • Products and services
  • Operations plan
  • Management organization
  • Financial plan
  • Conclusion / Call to action
  • Confidentiality statement

You have to sign up for its 14-day free trial to access the template. You will find different business plan templates on PandaDoc once you sign up (including templates for general businesses and specific businesses such as bakeries, startups, restaurants, salons, hotels, and coffee shops)

PandaDoc allows you to customize its business plan templates to fit the needs of your business. After editing the template, you can send it to interested parties and track opens and views through PandaDoc.

10. Invoiceberry Templates for Word, Open Office, Excel, or PPT

Invoiceberry Templates Business Concept

InvoiceBerry is a U.K based online invoicing and tracking platform that offers free business plan templates in .docx, .odt, .xlsx, and .pptx formats for freelancers and small businesses.

Before you can download the free business plan template, it will ask you to give it your email address. After you complete the little task, it will send the download link to your inbox for you to download. It also provides a business plan checklist in .xlsx file format that ensures you add the right information to the business plan.

Alternatives to the Traditional Business Plan

A business plan is very important in mapping out how one expects their business to grow over a set number of years, particularly when they need external investment in their business. However, many investors do not have the time to watch you present your business plan. It is a long and boring read.

Luckily, there are three alternatives to the traditional business plan (the Business Model Canvas, Lean Canvas, and Startup Pitch Deck). These alternatives are less laborious and easier and quicker to present to investors.

Business Model Canvas (BMC)

The business model canvas is a business tool used to present all the important components of setting up a business, such as customers, route to market, value proposition, and finance in a single sheet. It provides a very focused blueprint that defines your business initially which you can later expand on if needed.

Business Model Canvas (BMC) Infographic

The sheet is divided mainly into company, industry, and consumer models that are interconnected in how they find problems and proffer solutions.

Segments of the Business Model Canvas

The business model canvas was developed by founder Alexander Osterwalder to answer important business questions. It contains nine segments.

Segments of the Business Model Canvas

  • Key Partners: Who will be occupying important executive positions in your business? What do they bring to the table? Will there be a third party involved with the company?
  • Key Activities: What important activities will production entail? What activities will be carried out to ensure the smooth running of the company?
  • The Product’s Value Propositions: What does your product do? How will it be different from other products?
  • Customer Segments: What demography of consumers are you targeting? What are the habits of these consumers? Who are the MVPs of your target consumers?
  • Customer Relationships: How will the team support and work with its customer base? How do you intend to build and maintain trust with the customer?
  • Key Resources: What type of personnel and tools will be needed? What size of the budget will they need access to?
  • Channels: How do you plan to create awareness of your products? How do you intend to transport your product to the customer?
  • Cost Structure: What is the estimated cost of production? How much will distribution cost?
  • Revenue Streams: For what value are customers willing to pay? How do they prefer to pay for the product? Are there any external revenues attached apart from the main source? How do the revenue streams contribute to the overall revenue?

Lean Canvas

The lean canvas is a problem-oriented alternative to the standard business model canvas. It was proposed by Ash Maurya, creator of Lean Stack as a development of the business model generation. It uses a more problem-focused approach and it majorly targets entrepreneurs and startup businesses.

The lean canvas is a problem oriented alternative to the standard business model canvas

Lean Canvas uses the same 9 blocks concept as the business model canvas, however, they have been modified slightly to suit the needs and purpose of a small startup. The key partners, key activities, customer relationships, and key resources are replaced by new segments which are:

  • Problem: Simple and straightforward number of problems you have identified, ideally three.
  • Solution: The solutions to each problem.
  • Unfair Advantage: Something you possess that can't be easily bought or replicated.
  • Key Metrics: Important numbers that will tell how your business is doing.

Startup Pitch Deck

While the business model canvas compresses into a factual sheet, startup pitch decks expand flamboyantly.

Pitch decks, through slides, convey your business plan, often through graphs and images used to emphasize estimations and observations in your presentation. Entrepreneurs often use pitch decks to fully convince their target audience of their plans before discussing funding arrangements.

Startup Pitch Deck Presentation

Considering the likelihood of it being used in a small time frame, a good startup pitch deck should ideally contain 20 slides or less to have enough time to answer questions from the audience.

Unlike the standard and lean business model canvases, a pitch deck doesn't have a set template on how to present your business plan but there are still important components to it. These components often mirror those of the business model canvas except that they are in slide form and contain more details.

Airbnb Pitch Deck

Using Airbnb (one of the most successful start-ups in recent history) for reference, the important components of a good slide are listed below.

  • Cover/Introduction Slide: Here, you should include your company's name and mission statement. Your mission statement should be a very catchy tagline. Also, include personal information and contact details to provide an easy link for potential investors.
  • Problem Slide: This slide requires you to create a connection with the audience or the investor that you are pitching. For example in their pitch, Airbnb summarized the most important problems it would solve in three brief points – pricing of hotels, disconnection from city culture, and connection problems for local bookings.
  • Solution Slide: This slide includes your core value proposition. List simple and direct solutions to the problems you have mentioned
  • Customer Analysis: Here you will provide information on the customers you will be offering your service to. The identity of your customers plays an important part in fundraising as well as the long-run viability of the business.
  • Market Validation: Use competitive analysis to show numbers that prove the presence of a market for your product, industry behavior in the present and the long run, as well as the percentage of the market you aim to attract. It shows that you understand your competitors and customers and convinces investors of the opportunities presented in the market.
  • Business Model: Your business model is the hook of your presentation. It may vary in complexity but it should generally include a pricing system informed by your market analysis. The goal of the slide is to confirm your business model is easy to implement.
  • Marketing Strategy: This slide should summarize a few customer acquisition methods that you plan to use to grow the business.
  • Competitive Advantage: What this slide will do is provide information on what will set you apart and make you a more attractive option to customers. It could be the possession of technology that is not widely known in the market.
  • Team Slide: Here you will give a brief description of your team. Include your key management personnel here and their specific roles in the company. Include their educational background, job history, and skillsets. Also, talk about their accomplishments in their careers so far to build investors' confidence in members of your team.
  • Traction Slide: This validates the company’s business model by showing growth through early sales and support. The slide aims to reduce any lingering fears in potential investors by showing realistic periodic milestones and profit margins. It can include current sales, growth, valuable customers, pre-orders, or data from surveys outlining current consumer interest.
  • Funding Slide: This slide is popularly referred to as ‘the ask'. Here you will include important details like how much is needed to get your business off the ground and how the funding will be spent to help the company reach its goals.
  • Appendix Slides: Your pitch deck appendix should always be included alongside a standard pitch presentation. It consists of additional slides you could not show in the pitch deck but you need to complement your presentation.

It is important to support your calculations with pictorial renditions. Infographics, such as pie charts or bar graphs, will be more effective in presenting the information than just listing numbers. For example, a six-month graph that shows rising profit margins will easily look more impressive than merely writing it.

Lastly, since a pitch deck is primarily used to secure meetings and you may be sharing your pitch with several investors, it is advisable to keep a separate public version that doesn't include financials. Only disclose the one with projections once you have secured a link with an investor.

Advantages of the Business Model Canvas, Lean Canvas, and Startup Pitch Deck over the Traditional Business Plan

  • Time-Saving: Writing a detailed traditional business plan could take weeks or months. On the other hand, all three alternatives can be done in a few days or even one night of brainstorming if you have a comprehensive understanding of your business.
  • Easier to Understand: Since the information presented is almost entirely factual, it puts focus on what is most important in running the business. They cut away the excess pages of fillers in a traditional business plan and allow investors to see what is driving the business and what is getting in the way.
  • Easy to Update: Businesses typically present their business plans to many potential investors before they secure funding. What this means is that you may regularly have to amend your presentation to update statistics or adjust to audience-specific needs. For a traditional business plan, this could mean rewriting a whole section of your plan. For the three alternatives, updating is much easier because they are not voluminous.
  • Guide for a More In-depth Business Plan: All three alternatives have the added benefit of being able to double as a sketch of your business plan if the need to create one arises in the future.

Business Plan FAQ

Business plans are important for any entrepreneur who is looking for a framework to run their company over some time or seeking external support. Although they are essential for new businesses, every company should ideally have a business plan to track their growth from time to time.  They can be used by startups seeking investments or loans to convey their business ideas or an employee to convince his boss of the feasibility of starting a new project. They can also be used by companies seeking to recruit high-profile employee targets into key positions or trying to secure partnerships with other firms.

Business plans often vary depending on your target audience, the scope, and the goals for the plan. Startup plans are the most common among the different types of business plans.  A start-up plan is used by a new business to present all the necessary information to help get the business up and running. They are usually used by entrepreneurs who are seeking funding from investors or bank loans. The established company alternative to a start-up plan is a feasibility plan. A feasibility plan is often used by an established company looking for new business opportunities. They are used to show the upsides of creating a new product for a consumer base. Because the audience is usually company people, it requires less company analysis. The third type of business plan is the lean business plan. A lean business plan is a brief, straight-to-the-point breakdown of your ideas and analysis for your business. It does not contain details of your proposal and can be written on one page. Finally, you have the what-if plan. As it implies, a what-if plan is a preparation for the worst-case scenario. You must always be prepared for the possibility of your original plan being rejected. A good what-if plan will serve as a good plan B to the original.

A good business plan has 10 key components. They include an executive plan, product analysis, desired customer base, company analysis, industry analysis, marketing strategy, sales strategy, financial projection, funding, and appendix. Executive Plan Your business should begin with your executive plan. An executive plan will provide early insight into what you are planning to achieve with your business. It should include your mission statement and highlight some of the important points which you will explain later. Product Analysis The next component of your business plan is your product analysis. A key part of this section is explaining the type of item or service you are going to offer as well as the market problems your product will solve. Desired Consumer Base Your product analysis should be supplemented with a detailed breakdown of your desired consumer base. Investors are always interested in knowing the economic power of your market as well as potential MVP customers. Company Analysis The next component of your business plan is your company analysis. Here, you explain how you want to run your business. It will include your operational strategy, an insight into the workforce needed to keep the company running, and important executive positions. It will also provide a calculation of expected operational costs.  Industry Analysis A good business plan should also contain well laid out industry analysis. It is important to convince potential investors you know the companies you will be competing with, as well as your plans to gain an edge on the competition. Marketing Strategy Your business plan should also include your marketing strategy. This is how you intend to spread awareness of your product. It should include a detailed explanation of the company brand as well as your advertising methods. Sales Strategy Your sales strategy comes after the market strategy. Here you give an overview of your company's pricing strategy and how you aim to maximize profits. You can also explain how your prices will adapt to market behaviors. Financial Projection The financial projection is the next component of your business plan. It explains your company's expected running cost and revenue earned during the tenure of the business plan. Financial projection gives a clear idea of how your company will develop in the future. Funding The next component of your business plan is funding. You have to detail how much external investment you need to get your business idea off the ground here. Appendix The last component of your plan is the appendix. This is where you put licenses, graphs, or key information that does not fit in any of the other components.

The business model canvas is a business management tool used to quickly define your business idea and model. It is often used when investors need you to pitch your business idea during a brief window.

A pitch deck is similar to a business model canvas except that it makes use of slides in its presentation. A pitch is not primarily used to secure funding, rather its main purpose is to entice potential investors by selling a very optimistic outlook on the business.

Business plan competitions help you evaluate the strength of your business plan. By participating in business plan competitions, you are improving your experience. The experience provides you with a degree of validation while practicing important skills. The main motivation for entering into the competitions is often to secure funding by finishing in podium positions. There is also the chance that you may catch the eye of a casual observer outside of the competition. These competitions also provide good networking opportunities. You could meet mentors who will take a keen interest in guiding you in your business journey. You also have the opportunity to meet other entrepreneurs whose ideas can complement yours.

Exlore Further

  • 12 Key Elements of a Business Plan (Top Components Explained)
  • 13 Sources of Business Finance For Companies & Sole Traders
  • 5 Common Types of Business Structures (+ Pros & Cons)
  • How to Buy a Business in 8 Steps (+ Due Diligence Checklist)

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Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.

This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.


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How to Write the Funding Request for Your Business Plan?

Startup Fundraising Checklist

Free Startup Fundraising Checklist

  • May 7, 2024

Write the Funding Request Section of Your Business Plan

Funding requests are one aspect where the “under promise and over deliver” phenomenon might not work.

Set your business valuation too high, and investors might not invest. In contrast, value it too low, and you might end up receiving way less than what you’re truly worth.

Moreover, if I were to invest in your business, I would want to know why you are raising funds and how they will be used.

In short, a well-planned funding request with the purpose of fund-raise and a realistic ask is key to securing funds. You cannot mess up.

Need help writing the funding request for your business plan ? Here’s our quick guide on writing a compelling and realistic funding request to ensure you don’t miss out.

Let’s dive right in.

What is the funding request?

The funding request section of a business plan is an official section for the organizations to ask for new funding. It outlines the amount of funding needed, the purpose of the funds, how they will be used, and in what timeline they will be used (generally for 5 years).

The main goal of a funding request is to secure the necessary capital to start or expand a business, fund a project, or achieve a specific objective.

How to write your business plan funding request

How you write your funding request heavily depends on why you’re raising funds—the purpose. So, before you start writing, be clear about your requirements and the purpose of fundraising.

Your purpose can be hiring new staff, getting the latest equipment, launching a new product, or starting or expanding a business.

Once you do that, you may start working on your funding request; follow these steps:

1. Provide business information

Start by providing a brief overview of your business. I know—you’ve already included all the information in the prior sections, but adding it here would be an opportunity for you to give your investors a little recap.

No, it does not get redundant—It doesn’t have to be. So don’t worry.

Moreover, sometimes, you only need to send the funding request, not the entire business plan. In such cases, such information makes sense and comes in 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.

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2. Present 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 it be contextual but 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 or applying for any grant
  • Break-even point
  • If your business is in debt, explain the situation in detail and 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 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.

For that, you will need to calculate your startup costs or the total costs of the activity for which you need funding.

Finally, justify your funding request by explaining how the investment will benefit your organization and contribute to its growth and success.

4. Discuss how you will 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 you are taking the money for multiple things, highlight every detail.

Some examples of various areas where you might use the funding are:

  • Product development
  • Marketing and advertising
  • Operational expenses
  • Technological integration

5. Explain current and future financial planning

You must have explained a little about the inflow and outflow in the financial section of a business plan . 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.

Key points to remember

As we now know what to include in the funding request, let’s see certain points that you need to keep in mind while writing it:

Target audience’s perspective . Applying for a loan is different from approaching an investor. Each of these situations involves different contract terms, types of funding, or amounts of money.

Clarity . Clearly explain with numbers how much funding is required, why you need it, and where you will use it. Also, keep your language for funding requests simple so that everyone can understand.

Realistic financial projections . Provide realistic financial projections so investors can feel confident about your business and trust you with an investment.

Call-to-action . Include a clear call-to-action that encourages investors to take the next steps, whether that’s scheduling a meeting or making an investment.

These may seem like simple tips, but they can help you write a strong funding request that gets investors interested in your business.

As a wrap-up, writing a compelling funding request requires a strategic approach and attention to detail. So, being carefully and include realistic projections.

If you are still confused about writing a funding request, you can leverage business planning software and make your business plan investment-ready.

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Frequently Asked Questions

Do i need a business plan to get funding.

Yes, a business plan is necessary for securing funding for a business. It allows investors and lenders to grasp the company’s vision and mission. A well-thought-out business plan increases your chances of securing funding.

How do I determine the amount of funding to request?

To determine the amount of funding, you will need to assess your organization’s startup costs, forecast cash flow, and consider growth plans.

Taking the help of an AI business plan generator or a financial advisor can help you determine a realistic funding amount based on your business’s needs and goals.

Do I need financial projections in my funding request?

Yes, including financial projections in a funding request is important. It provides potential investors or lenders with a clearer understanding of your finances. Usually, you should add a crux of your finances for at least three years.

About the Author

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Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Hedge Fund Business Plan Template

Written by Dave Lavinsky

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Hedge Fund Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their hedge fund companies.

If you’re unfamiliar with creating a hedge fund business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a hedge fund business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Hedge Fund Business Plan?

A business plan provides a snapshot of your hedge fund company as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Hedge Fund

If you’re looking to start a hedge fund company or grow your existing hedge fund company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your hedge fund company to improve your chances of success. Your hedge fund business plan is a living document that should be updated annually as your company grows and changes.

Finish Your Business Plan Today!

How to write a business plan for a hedge fund.

If you want to start a hedge fund company or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your hedge fund business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of hedge fund company you are running and the status. For example, are you a startup, do you have a hedge fund company that you would like to grow, or are you operating an established hedge fund company that you would like to sell?

Next, provide an overview of each of the subsequent sections of your plan.

  • Give a brief overview of the hedge fund industry.
  • Discuss the type of hedge fund company you are operating.
  • Detail your direct competitors. Give an overview of your target customers.
  • Provide a snapshot of your marketing strategy. Identify the key members of your team.
  • Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of hedge fund company you are operating.

For example, you might specialize in one of the following types of hedge funds:

  • Global Macro: This type of hedge fund strategy focuses on global factors and the role they play in financial markets.
  • Event-driven: This type of hedge fund strategy involves pursuing investments associated with a one-time corporate event such as a merger, acquisition, liquidation, or bankruptcy.
  • Relative value: This type of hedge fund strategy centers on market behavior and can include sub strategies such as convertible arbitrage and volatility arbitrage.
  • Directional: This type of hedge fund strategy focuses on using market trend data to select stocks.

In addition to explaining the type of hedge fund company you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of investors contributing to the fund, the number of investments in the fund’s portfolio, or reaching $X amount in revenue, etc.
  • Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the hedge fund industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the hedge fund industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your hedge fund business plan:

  • How big is the hedge fund industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential target market for your hedge fund company? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your hedge fund business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of hedge fund company you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other hedge funds.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of financial managers or institutions, and other types of investment opportunities. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

  • What types of customers do they serve?
  • What type of hedge fund company are they?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you make it easier for investors to work with you?
  • Will you offer investment opportunities that your competition doesn’t?
  • Will you provide better customer service?
  • Will you offer better pricing for your management services?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a hedge fund business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of hedge fund company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide asset management, financial accounting, or liquidity optimization services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the services you offer and their prices.

Promotions : The final part of your hedge fund marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

  • Advertise in local papers and trade magazines
  • Reach out to websites
  • Engage in email marketing
  • Advertise on social media platforms
  • Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your hedge fund company, including answering calls, meeting with investors, collecting fees, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth investor, or when you hope to reach $X in revenue. It could also be when you expect to expand your hedge fund company to a new location.  

Management Team

To demonstrate your hedge fund business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing hedge funds. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a hedge fund or other financial services business.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you charge an asset management fee of 3% and a profit fee of 20% ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your hedge fund, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a hedge fund:

  • Cost of equipment and office supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or your financial management credentials.  

Writing a business plan for your hedge fund company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the hedge fund industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful hedge fund company.  

Hedge Fund Business Plan FAQs

What is the easiest way to complete my hedge fund business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your hedge fund business plan.

How Do You Start a Hedge Fund Business?

Starting a hedge fund business is easy with these 14 steps:

  • Choose the Name for Your Hedge Fund Business
  • Create Your Hedge Fund Business Plan
  • Choose the Legal Structure for Your Hedge Fund Business
  • Secure Startup Funding for Hedge Fund Business (If Needed)
  • Secure a Location for Your Business
  • Register Your Hedge Fund Business with the IRS
  • Open a Business Bank Account
  • Get a Business Credit Card
  • Get the Required Business Licenses and Permits
  • Get Business Insurance for Your Hedge Fund Business
  • Buy or Lease the Right Hedge Fund Business Equipment
  • Develop Your Hedge Fund Business Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Hedge Fund Business
  • Open for Business

Learn more about   how to start your own hedge fund business .

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How to Start Your Own Private Equity Fund

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Private equity firms have been a historically successful asset class and the field continues to grow as more would-be portfolio managers join the industry. Many investment bankers have made the switch from public to private equity because the latter has significantly outperformed the Standard & Poor's 500 Index over the last few decades, fueling greater demand for private equity funds from institutional and individual accredited investors . As demand continues to swell for alternative investments in the private equity space, new managers will need to emerge and provide investors with new opportunities to generate alpha.

Key Takeaways

  • Private equity firms are growing thanks to their outperformance of the S&P 500. 
  • Starting a private equity fund means laying out a strategy, which means picking which sectors to target.  
  • A business plan and setting up the operations are also key steps, as well as picking a business structure and establishing a fee structure. 
  • Arguably the toughest step is raising capital, where fund managers will be expected to contribute 1% to 3% of the fund’s capital. 

Today's many successful private equity firms include Blackstone Group, Apollo Global Management, TPG Capital, Goldman Sachs Capital Partners, and the Carlyle Group. However, most firms are small to midsize shops and can range from just two employees to several hundred workers. Here are several steps managers should follow to launch a private equity fund .

Define the Business Strategy

First, outline your business strategy and differentiate your financial plan from those of competitors and benchmarks. Establishing a business strategy requires significant research into a defined market or individual sector. Some funds focus on energy development, while others may focus on early-stage biotech companies. Ultimately, investors want to know more about your fund's goals.

As you articulate your investment strategy , consider whether you will have a geographic focus. Will the fund focus on one region of the United States? Will it focus on an industry in a certain country? Or will it emphasize a specific strategy in similar emerging markets? Meanwhile, there are several business focuses you could adopt. Will your fund aim to improve your portfolio companies' operational or strategic focus, or will this center entirely on cleaning up their balance sheets ?

Remember, private equity typically hinges on investment in companies that are not traded on the public market. It's critical that you determine the purpose of each investment. For example, is the aim of the investment to grow capital for mergers and acquisitions activity? Or is the goal to raise capital that will allow existing owners to sell their positions in the firm?

Business Plan, Operations Setup

The second step is to write a business plan, which calculates cash flow expectations, establishes your private equity fund's timeline, including the period to raise capital and exit from portfolio investments . Each fund typically has a life of 10 years, although ultimately timelines are up to the manager's discretion. A sound business plan contains a strategy on how the fund will grow over time, a marketing plan to target future investors, and an executive summary, which ties all of these sections and goals together.

Following the establishment of the business plan, set up an external team of consultants that includes independent accountants, attorneys and industry consultants who can provide insight into the industries of the companies in your portfolio. It's also wise to establish an advisory board and explore disaster recovery strategies in case of cyberattacks, steep market downturns, or other portfolio-related threats to the individual fund.

Another important step is to establish a firm and fund name. Additionally, the manager must decide on the roles and titles of the firm's leaders, such as the role of partner or portfolio manager. From there, establish the management team, including the CEO, CFO, chief information security officer, and chief compliance officer . First-time managers are more likely to raise more money if they are part of a team that spins out of a previously successful firm.

On the back end, it's essential to establish in-house operations. These tasks include the rent or purchase office space, furniture, technology requirements, and hiring staff. There are several things to consider when hiring staff, such as profit-sharing programs , bonus structures, compensation protocols, health insurance plans, and retirement plans.

Establish the Investment Vehicle

After early operations are in order, establish the fund’s legal structure. In the U.S., a fund typically assumes the structure of a limited partnership or a limited liability firm. As a founder of the fund, you will be a general partner, meaning that you will have the right to decide the investments that compose the fund.

Your investors will be limited partners who don't have the right to decide which companies are part of your fund. Limited partners are only accountable for losses tied to their individual investment, while general partners handle any additional losses within the fund and liabilities to the broader market.

Ultimately, your lawyer will draft a private placement memorandum and any other operating agreements such as a limited partnership agreement or articles of association .

Determine a Fee Structure

The fund manager should determine provisions related to management fees, carried interest and any hurdle rate for performance. Typically, private equity managers receive an annual management fee of 2% of committed capital from investors. So, for every $10 million the fundraises from investors, the manager will collect $200,000 in management fees annually. However, fund managers with less experience may receive a smaller management fee to attract new capital.

Carried interest is commonly set at 20% above an expected return level. Should the hurdle rate be 5% for the fund, you and your investors would split returns at a rate of 20 to 80. During this period, it is also important to establish compliance, risk and valuation guidelines for the fund.

Raise Capital

Next, you will want to have your offering memorandum, subscription agreement , partnership terms, custodial agreement , and due diligence questionnaires prepared. Also, marketing material will be needed prior to the process of raising capital. New managers will also want to ensure that they have obtained a proper severance letter from previous employers. A severance letter is important because employees require permission to boast about their previous experience and track record.

All of this leads ultimately leads you to the biggest challenge of starting a private equity fund, which is convincing others to invest in your fund. Firstly, prepare to invest your own fund. Fund managers who had had success during their careers will likely be expected to provide at least 2% to 3% of their money to the fund's total capital commitments . New managers with less capital can likely succeed with a commitment of 1% to 2% for their first fund.

In addition to your investment track record and investment strategy, your marketing strategy will be central to raising capital. Due to regulations on who can invest and the unregistered nature of private equity investments, the government says that only institutional investors and accredited investors can provide capital to these funds.

Institutional investors include insurance firms, sovereign wealth funds , financial institutions, pension programs , and university endowments. Accredited investors are limited to individuals who meet a specified annual income threshold for two years or maintain a net worth (less the value of their primary residence) of $1 million or more. Additional criteria for other groups that represent accredited investors are discussed in the Securities Act of 1933 .

Once a private equity fund has been established, portfolio managers have the capacity to begin building their portfolio. At this point, managers will start to select the companies and assets that fit their investment strategy.

The Bottom Line 

Private equity investments have outperformed the broader U.S. markets over the last few decades. That has generated increased demand from investors seeking new ways to generate superior returns . The above steps can be used as a roadmap for establishing a successful fund.

Bain & Company. " Public vs. Private Equity Returns: Is PE Losing Its Advantage? "

United States Office of Government Ethics. " Capital Commitment ."

U.S. Securities and Exchange Commission. "' Accredited Investor' Net Worth Standard ."

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Hedge Fund Business Plan Template

Written by Dave Lavinsky

Hedge Fund Business Plan

You’ve come to the right place to create your Hedge Fund business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Hedge Fund companies.

Below is a template to help you create each section of your Hedge Fund business plan.

Executive Summary

Business overview.

LeadingEdge Capital is a startup hedge fund company located in Boston, Massachusetts. The company was founded by Robert Wilkens and Stuart Rosenberg, proven strategists of high value investments in their former employment roles as hedge fund managers. Robert Wilkens was a hedge fund manager for fifteen years, building the portfolios of his clients to over 45M within that time. Stuart Rosenberg, a hedge fund manager for thirteen years, built his clients portfolios to over 25M within the years of his employment.

With the breakup of the ownership in their former employment, Robert and Stuart have determined this is the right and best time to open their own hedge fund company. Located in Boston, Massachusetts, a geographic area housing an abundance of serious investors, the new partners believe their former clients will support and invest in the new hedge fund. Toward that end, Robert and Stuart are starting to contract with those clients before the launch of LeadingEdge Capital.

Product Offering

The following are the services that LeadingEdge Capital will provide:

  • Proven strategies for significant investment returns
  • Deep and thorough market analysis using proprietary tech tools
  • Unique client evaluation tools to assess risk appetite
  • Thorough market analysis and reports
  • Fund evaluation and administration
  • Advanced technologies to monitor risk
  • Data analysis to support profitable trading opportunities
  • Day to day fund management

Customer Focus

LeadingEdge Capital will target all former clients of the prior employer. They will target investors from the Boston area and surrounding region. They will target risk-averse investors in the region. They will target clients at events, through networking opportunities, and industry associations. They will lead and speak at industry and investor events. They will educate potential investors via a unique set of educational video presentations at their website.

Management Team

LeadingEdge Capital will be co-owned and operated by Robert Wilkens and Stuart Rosenberg. They have recruited former associates from their prior employment to join their launch. This includes Mark Tompkins, who will act as the third-party fund administrator, Terry Camden, the independent certified public accountant, Tami Watson, the custodian, and Larry Lawson, the on-call attorney for LeadingEdge Capital.

Robert Wilkens holds a master’s degree in business administration from Harvard University. He is known as a brilliant strategic fund manager and has a wide circle of investors who rely on his capabilities to assess risk and manage the growth of their funds. Stuart Rosenberg is particularly gifted as a leader who can assist risk-averse investors with trust-building tools he built into a proprietary client app. The app helps investors see and track daily market activities and it ties global and national events to those activities to inform the client of a full-picture reason for the fund’s daily performance.

The remaining team members consist of: Mark Tompkins, who will act as the third-party fund administrator, Terry Camden, an independent certified public accountant, Tami Watson, the hedge fund custodian, and Larry Lawson, the on-call attorney for LeadingEdge Capital.

Success Factors

LeadingEdge Capital will be able to achieve success by offering the following competitive advantages:

  • Friendly, knowledgeable, and highly-qualified team of LeadingEdge Capital
  • Comprehensive menu of services, including educational webinars for new investors
  • Proprietary app that assists managers and investors in making key decisions
  • Compelling data analysis program to support profitable trading opportunities
  • LeadingEdge Capital will offer discounted rates for “anchor investors” during the first six months of the establishment process. This is limited to 100 investors and includes on-going low percentage rates overall for the first-in investor pool.

Financial Highlights

LeadingEdge Capital is seeking $200,000 in debt financing to launch its LeadingEdge Capital. The funding will be dedicated toward securing the midtown Boston office space and purchasing office equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the marketing and networking fees and costs. The breakout of the funding is below:

  • Office space build-out: $20,000
  • Office equipment, supplies, and materials: $10,000
  • Three months of overhead expenses (payroll, rent, utilities): $150,000
  • Marketing costs: $10,000
  • Working capital: $10,000

The following graph outlines the financial projections for LeadingEdge Capital.

LeadingEdge Capital Pro Forma Projections

Company Overview

Who is leadingedge capital.

LeadingEdge Capital is a newly established full-service hedge fund company in Boston, Massachusetts. LeadingEdge Capital will be the most reliable, cost-effective, and efficient choice for investors in Boston and the surrounding communities. LeadingEdge Capital will provide a comprehensive menu of educational, investing, managing and assessment services for any client to utilize. Their full-service approach includes a comprehensive proprietary app and unique tools that are exclusive to LeadingEdge Capital.

  LeadingEdge Capital is projecting at least one hundred clients within the first year of business. The team of professionals are highly qualified and experienced in hedge funds and all the permutations and regulations, and have strategic methods to find and evaluate new opportunities. LeadingEdge Capital provides an high-value investment process that will build their clients’ portfolios extensively through years of the best customer service from LeadingEdge Capital.

LeadingEdge Capital History

LeadingEdge Capital is a startup hedge fund company founded by Robert Wilkens and Stuart Rosenberg, proven strategists of high value investments in their former employment roles as hedge fund managers. Robert Wilkens was a hedge fund manager for fifteen years, building the portfolios of his clients to over 45M within that time. Stuart Rosenberg, a hedge fund manager for thirteen years, built his clients portfolios to over 25M within the years of his employment.

Since incorporation, LeadingEdge Capital has achieved the following milestones:

  • Registered LeadingEdge Capital, LLC to transact business in the state of Massachusetts.
  • Has a contract in place at a midtown Boston office building with 10,000 square foot space for offices and client waiting areas.
  • Reached out to numerous former clients to engage them with the new LeadingEdge Capital hedge fund.
  • Began recruiting a staff of managers, associated professionals and office personnel to work at LeadingEdge Capital.

LeadingEdge Capital Services

The following will be the services LeadingEdge Capital will provide:

Industry Analysis

The hedge fund investment industry is expected to grow during the next five years to over $123 billion. The growth will be driven by more investors seeking the resilient hedge fund market. The growth will also be driven by continued hedge fund interest driven by consumers who want to learn about the process and are eager for education. The growth will be driven by a greater use of technology to provide lower-risk options for investment that continually bring returns. Costs will likely be reduced as hedge fund managers lower fees to accommodate early entry investors. Costs will also likely be reduced as hedge fund managers continue to have increased access to retail investors.

Customer Analysis

Demographic profile of target market, customer segmentation.

LeadingEdge Capital will primarily target the following customer profiles:

  • Former clients at prior employment
  • Potential investors at networking events, industry relationships
  • Potential Risk-averse investors who can rely on technology at LeadingEdge Capital
  • Potential investors who are seeking self-education via webinars
  • Potential investors who choose technology as a main driver for decision-making

Competitive Analysis

Direct and indirect competitors.

LeadingEdge Capital will face competition from other companies with similar business profiles. A description of each competitor company is below.

One Star Capital Partners

One Star Capital Partners has been in business in the Boston area for over seventy-five years. The current partners are the children and grandchildren of the original founders of the hedge fund business. The investor portfolio of One Star Capital Partners is a combined 210B, which has been produced via the past several years of wealth-building and wealth-creation for their clients. The company has experienced a loss of clients during the past five years, however, as the descendents of the original partners have been engaged in litigation regarding the ownership percentages of the privately-held company. This has led to some discouragement from clients and organizational changes that are difficult to understand or explain.

The promise of One Star Capital Partners is to build wealth through secure investor commitments that total as much or more than the previous years. The company has led investors toward a global macro investing environment which didn’t prove to be compatible with the event-driven model of prior years. This shift created a net loss of investors during the past five years, although forward-looking statements have recently been made during investor phone calls.

AlphaDrive & Company

With a golfer’s nomenclature and several clients directed into the golf, tennis and soccer investment categories, AlphaDrive & Company are becoming an established hedge fund after the introduction of the company in 2020. The hedge fund is fairly small, with a combined portfolio of all managers standing at 20M in 2023, the fund promises to expand and increase opportunities for investors to explore all sectors of the sports arena, finding attractive potential for earnings among their clientele. One of the unique aspects of this company is that it was founded by two famous golf celebrities and those relationships allow investors to enter the pro am golf tournaments throughout the world. Similar relationships and capabilities allow sports enthusiasts to meet their “favorite” athletes to join in activities as a result of investing with AlphaDrive & Company.

Howard & Howard Capital

Howard & Howard is a Boston-based hedge fund that was established in 2005. It is owned and operated by a father-son investment team. The company focuses on real estate conglomerates, REITS, distressed properties, and other lucrative real estate opportunities that are ripe for investment. The hedge fund represents those who believe their best returns will always come from land or the acquisition of real estate and are willing to invest significant sums of money in appropriate low-risk, high-return ventures. Robert Howard is the president of Howard & Howard Capital, while his son, Thomas Howard is the vice president of the company. Their office building is situated on the harborside of Boston, amid brick-lined walkways and older buildings indicative of early Boston. This feature attracts the potential investors who appreciate the heritage and value of land, especially land that is situated in the Massachusetts region. Investment opportunities include major retail outlets, farm and ranch land, undeveloped residential areas, and other land-based opportunities.

Competitive Advantage

LeadingEdge Capital will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

LeadingEdge Capital will offer the unique value proposition to its clientele:

  • Highly-qualified team of skilled employees who are able to provide a comprehensive set of select investment opportunities to current and potential investors.
  • Educational webinars via the website for “introductory” investors
  • Discounted rates for “anchor investors” for first 6 months of business

Promotions Strategy

The promotions strategy for LeadingEdge Capital is as follows:

Word of Mouth/Referrals

LeadingEdge Capital has built up an extensive list of potential years from prior years of the former hedge fund that employed the founders of LeadingEdge. The former employer is now defunct, which indicates a wide swatch of investors who require a new, fresh set of opportunities to be garnered by the well-known and personable staff of LeadingEdge Capital. Having produced multiple opportunities and millions of dollars of profit with the former hedge fund managers, the former clients are eager to get in on the “anchor investor” program and start earning returns on investments once again.

Professional Associations and Networking

The owners of LeadingEdge Capital will continue extensively networking, attending and speaking at engagements that include current and potential investors. The company has plans to attend national conferences and exhibit at trade shows, where introductory materials can be offered to new investors just entering the market.

Website/SEO Marketing

LeadingEdge Capital will fully utilize their website. The website will be well-organized, informative, and list all the services that LeadingEdge Capital provides. The website will also list their contact information and testimonials from current and former clients. The website will have SEO marketing tactics embedded so that anytime someone types in the Google or Bing search engine “hedge fund company” or “hedge fund company near me”, LeadingEdge Capital will be listed at the top of the search results.

The pricing of LeadingEdge Capital will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for LeadingEdge Capital. Operation Functions:

  • Robert Wilkens will be the co-owner and President of the company. He will oversee and manage client relations, investor recruitments and forward-looking opportunities.
  • Stuart Rosenberg will be the co-owner and Vice President of the company. He will oversee the technological research and development for the company.
  • Mark Tompkins will be the third-party fund administrator.
  • Terry Camden will be the independent certified public accountant assisting the company
  • Tami Watson will be the Custodian of LeadingEdge Capital, assisting the company
  • Larry Lawson will be the on-call Attorney for LeadingEdge Capital.


LeadingEdge Capital will have the following milestones completed in the next six months.

  • 5/1/202X – Finalize contract to lease office space
  • 5/15/202X – Finalize personnel and staff employment contracts for the LeadingEdge Capital
  • 6/1/202X – Finalize contracts for LeadingEdge Capital clients
  • 6/15/202X – Begin networking at industry events
  • 6/22/202X – Begin moving into LeadingEdge Capital office
  • 7/1/202X – LeadingEdge Capital opens its office for business

Financial Plan

Key revenue & costs.

The revenue drivers for LeadingEdge Capital are the investment fees they will charge to the investor clients for their services.

The cost drivers will be the overhead costs required in order to staff LeadingEdge Capital. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

LeadingEdge Capital is seeking $200,000 in debt financing to launch its hedge fund company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the events and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Number of Clients Per Month: 175
  • Average Fees per Month: $125,000
  • Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, hedge fund business plan faqs, what is a hedge fund business plan.

A hedge fund business plan is a plan to start and/or grow your hedge fund business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Hedge Fund business plan using our Hedge Fund Business Plan Template here .

What are the Main Types of Hedge Fund Businesses? 

There are a number of different kinds of hedge fund businesses , some examples include: Global Macro, Event-driven, Relative value, and Directional.

How Do You Get Funding for Your Hedge Fund Business Plan?

Hedge Fund businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Hedge Fund Business?

Starting a hedge fund business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Hedge Fund Business Plan - The first step in starting a business is to create a detailed hedge fund business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your hedge fund business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your hedge fund business is in compliance with local laws.

3. Register Your Hedge Fund Business - Once you have chosen a legal structure, the next step is to register your hedge fund business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your hedge fund business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Hedge Fund Equipment & Supplies - In order to start your hedge fund business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your hedge fund business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful hedge fund business:

  • How to Start a Hedge Fund Business
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  • Information

A hedge fund business plan is a different from writing a typical business plan, mostly due to the fact the hedge fund business model is different from a typical business.

When you create a hedge fund, you are actually creating two businesses: the management company and the fund itself. There are different styles of writing a hedge fund business plan but it should include the following four components: vision, company overview, product strategy, and market analysis.

  • How many funds will the management company manage?
  • Are there any plans to develop new products for investor?
  • How will non-investment-related services be handled? Will they be outsourced?
  • What are the factors that will contribute to the success of the business? For example, how dependent is the business on marketing vs. performance?
  • Description of how each fund will be managed.
  • Description of the different strategies used for each fund.
  • What are the investment philosophies and strategies and how will this affect each fund?
  • Discussion of expected leverage, turnover rate, characteristics.
  • What are the benchmarks for each fund?

Company Overview

  • Description of how the management company and fund are structured.
  • A list of owners and how profits will be allocated.
  • Detail the payments and expenses.
  • How are the managers managed?
  • What are the strategic alliances that the companies might have, if any?
  • How will the management company be staffed?
  • Where are the funds domiciled?
  • Description of investment process for each fund and how this will impact results.
  • Discussion of fee structure(s) and incentives.

Product Strategy

  • Describe the products that the management company sells. In most cases, these products are investment management services.
  • Describe in detail the investment strategy and philosophy for each fund.
  • Discuss sources of risk and returns.
  • What analytical tools are used?
  • How will investment decisions be made? Who makes them?
  • Discuss past fund performance or hypothetical fund performance if these strategies are implemented.

Market Analysis

  • Discuss the demand for the services provided by the hedge fund.
  • Analyze relevant sector growth and trend.
  • Discuss the potential size of the fund.
  • Discuss market factors that would impact the fund.
  • Discuss the recent experience of investors in the relevant sector.

The Business Plan

Preparing a business plan, whether it’s for a start-up or an existing business, is one of the most important tools used in business management. We have over 27 years of experience in creating business plans for a variety of purposes from starting a business to seeking funding.

Using the Business Plan

A business plan is a tool with three basic purposes: communication, management, and planning. As a communication tool, it is used to attract investment capital, secure loans, convince workers to come on board, and assist in attracting strategic business partners.

The development of a comprehensive business plan shows whether or not a business has the potential to make a profit. It requires a realistic look at almost every phase of business and allows you to show that you have worked out all the problems and decided on potential alternatives before actually launching your business.

As a management tool, the business plan helps you track, monitor, and evaluate your progress. The business plan is a living document that you will modify as you gain knowledge and experience. By using your business plan to establish timelines and milestones, you can gauge your progress and compare your projections to actual accomplishments.

As a planning tool, the business plan guides you through the various phases of your business. A thoughtful plan will help identify roadblocks and obstacles so that you can avoid them and establish alternatives. Many business owners share their business plans with their employees to foster a broader understanding of where the business is going.

Business Plan Basics

A solid business plan precisely defines your business, identifies your goals, and serves as your company’s resume. It helps you allocate resources properly, handle unforeseen complications, and make good business decisions. It provides specific and organized information about your company and how you will repay borrowed money which is a crucial part of any loan application.

Every successful business plan should include some discussion about each of the following areas, since these are what make up the essentials of a good business plan:

› Executive summary › Market analysis › Company description › Organization & management › Marketing & sales management › Service or product line › Funding request › Financials › Appendix

A business plan should be a work-in-progress. Even successful, growing businesses should maintain a current business plan.

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Cabinet approves plan for 2024 budget boost to fund B500bn handout

PM says economy could grow more than 2.5% this year

PUBLISHED : 28 May 2024 at 13:48

WRITER: Reuters

An event supporting the Pheu Thai Party’s 10,000-baht digital wallet was held on Oct 17, 2023, after more than 100 noted Thai economists urged the government to drop the scheme. (Photo: Somchai Poomlard)

The cabinet on Tuesday approved a plan to boost the 2024 fiscal budget by 122 billion baht to help finance its delayed household stimulus scheme, Deputy Finance Minister Paopoom Rojanasakul said.

The plan would bring the new budget to 3.6 trillion baht, up 13% from the previous year, with the deficit rising to 805 billion baht, officials have said.

The move comes as the government plans to launch the 500 billion baht handout scheme, the ruling Pheu Thai Party's key platform in the 2023 election, in the fourth quarter, delayed from its earlier target due to a lack of funding and concerns about the impact on public debt.

The government earlier said it would finance the policy from the 2024 and 2025 budgets and use capital from the state-owned Bank for Agriculture and Agricultural Cooperatives.

Economists and two former central bank governors have said the  programme , which will give 10,000 baht each to 50 million Thais to spend in their communities, is fiscally irresponsible.

The government rejects the criticism and says it is necessary to jumpstart the economy, which has lagged peers as it confronts high household debt and borrowing costs, plus weak exports amid an uneven recovery in top trading partner China.

Prime Minister Srettha Thavisin said on Tuesday the economy could grow more than 2.5% this year as the government would speed up 2024 budget disbursements.

"The budget has not been used yet and there will be an acceleration in disbursements," he told a press conference.

The 2024 budget was passed last month, delayed from the original start date of Oct 1,  2023  due to prolonged political gridlock following a May election.

Mr Srettha said the cabinet also approved the 2025 fiscal budget of 3.75 trillion baht.

On Monday, Finance Minister Pichai Chunhavajira said the government was planning other stimulus measures in the short term to revive growth, adding the economy should be expanding at least 3.5% annually.

Last month, the Finance Ministry cut its 2024 growth forecast to 2.4 %,  but said it could reach 3.3% if the handout  programme  is deployed in the fourth quarter as planned.

Southeast Asia's second-largest economy expanded 1.5% in the first quarter year-on-year, slowing from 1.7% growth the quarter before. Last year's growth was 1.9%.


Local business as usual, says, mobile banking users reassured about probe, new airline to fly hat yai-betong route next year, half of hong kong workers will consider quitting if employers ask them to spend more time in office, ptt optimistic on growth this year.

10,000 baht digital money handout

10,000 baht digital money handout

Pm warns of recession risk, seeks new ideas, cabinet approves plan to raise 2024 budget, startups seek to gain from digital wallet.

U.S. and allies move to tap frozen Russian funds despite Kremlin threats

Kremlin officials have suggested retaliating by confiscating U.S. assets in Russia, although it’s unclear how much impact such measures could have.

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Key takeaways

Summary is AI-generated, newsroom-reviewed.

  • G7 plans to use interest from frozen Russian assets to fund Ukraine.
  • Putin retaliates, authorizes confiscation of U.S. assets in Russia.
  • Plan could yield $50 billion for Ukraine, details pending.

Did our AI help? Share your thoughts.

The United States and its Western allies took a key step Saturday toward using frozen Russian assets to fund Ukraine’s war effort, moving closer to providing another key financial stream for Kyiv.

Russian officials have suggested they could retaliate by confiscating U.S. and European assets in Russia, although it’s unclear how much impact such measures could have.

Meeting in northern Italy this week, the top financial officials of the Group of Seven nations agreed in a joint statement to tap the investment returns of “immobilized Russian sovereign assets” to support Ukraine. The Kremlin has been blocked from accessing hundreds of billions of dollars held in Western financial institutions after invading Ukraine in 2022, and European and U.S. officials have for months debated whether or how to unlock these funds to help fight off the invasion.

Russia has roughly $280 billion in sovereign assets stashed in Western financial institutions, the majority of which is held by European firms. Those funds are now frozen under the U.S.-led sanctions effort.

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Under the emerging plan, the Western allies would essentially use the interest and other investment returns accruing on these assets to pay themselves back for money they give to Ukraine in the near term. The exact amount of the money that could be raised this way could vary, depending on interest rates and other financial conditions, and finance leaders are working out a thicket of complicated legal and financial questions.

Western leaders believe the plan could yield as much as $50 billion in short-term or medium-term funding for Ukraine, although key details need to be worked out. President Biden and other heads of state will aim to ratify the plan during subsequent meetings of the G-7 in Italy this June. Congress last month approved $95 billion in foreign military aid after a months-long logjam caused by House Republicans, but Ukraine’s supporters are eyeing other funding streams to buttress Kyiv’s considerable long-term financial needs.

“We are making progress in our discussions on potential avenues to bring forward the extraordinary profits stemming from immobilized Russian sovereign assets to the benefit of Ukraine, consistent with international law and our respective legal systems,” the statement says.

Initially, Ukraine’s boosters called for confiscating and transferring the entire pool of Russian sovereign assets to Kyiv. That plan was scuttled, however, as Germany, France, and other U.S. allies had expressed unease about a plan that they feared could compromise the financial stability of the euro zone by leading investors to put their money elsewhere. The new plan would leave Russia’s underlying assets untouched. The European Union voted earlier this month as well to move forward with using the profits of the frozen Russian assets.

Russia has strongly condemned all attempts to confiscate or repurpose its financial assets as a violation of international law. President Vladimir Putin signed a decree on Thursday authorizing the confiscation of assets held by U.S. citizens and companies in Russia, in response to the West’s proposal.

“We can see they are being careful, they understand the potential danger of such decisions and the potential consequences for themselves which are inevitable. That is why they have gone for the smaller option,” Kremlin spokesman Dmitry Peskov told reporters earlier this week , according to Reuters. “But even the smaller option is to us nothing less than expropriation.”

But hundreds of U.S. and European firms have already pulled out of the country in response to Russia’s invasion of Ukraine and the sanctions imposed afterward. Of the more than 1,600 international firms operating in Russia before the invasion, roughly 400 remain, with only 30 U.S.-based firms still operating there , according to Jeffrey Sonnenfeld, a professor at the Yale School of Management. Sonnenfeld called the Kremlin’s threat “inconsequential.”

Treasury Secretary Janet L. Yellen has led U.S. efforts to persuade European allies to use the seized sovereign Russian assets in some way, pointing to Kyiv’s long-term funding needs and the hundreds of billions of dollars in estimated damages Moscow’s war has caused its neighbor. The funds could also help ensure Ukraine has access to Western support even if Biden loses the presidential election this November.

“This is an assured source of financing,” Yellen told reporters earlier in the week. “It’s important that Russia realize that we will not be deterred from supporting Ukraine for lack of resources.”

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Social Security's problems aren't going away: What that means for your benefits and taxes

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Social Security's funding problems haven't disappeared despite the lack of serious public debate of late, even in a presidential election year. The day of reckoning continues to draw near, as trustees for the program described in their latest annual update released this month.

Higher taxes, benefit cuts, or a combination of both loom in a future scenario that is no longer all that distant. Congress still has time to make fixes to shore up the retirement system but hasn't shown any such resolve. Here are answers to six key questions on what might happen:

The latest projection shows Social Security’s reserves will run out in 2033. What does that mean?

The Social Security system has two trust funds that hold surplus money accumulated in prior years — one for Old Age and Survivors Insurance and one for Disability Insurance. The retirement-focused OASI fund will be depleted by 2033, according to the latest estimate by Social Security's trustees . The much smaller DI program isn’t expected to run out and combining the two funds would delay their depletion to 2035, noted the Center for Retirement Research at Boston College in a new analysis . But combining the two also would require a change in the law, which is unlikely, making 2033 the relevant year.

The trust funds are U.S. Treasury accounts holding accumulated surpluses , which are expected to run dry eventually. That's nothing new. However, "Whereas we used to have 68 years to figure out how to avoid depletion," the Boston College report said, "we now have nine years.”

Will Social Security eventually go broke?

No, but the retirees and others who rely on Social Security could be seriously pinched. If Congress doesn't shore up the trust funds or make other fixes, the Social Security Administration would need to cut benefits by about 21% to match the level of payroll taxes and other revenue flowing in at that time.

“Depletion of the trust fund does not mean that OASI has run out of money,” stated the Boston College report. "At the time of the depletion, payroll tax revenues (would) keep rolling in and can cover 79% of currently legislated benefits."

Would retirees have trouble making ends meet?

Many would. For a typical person at age 65, Social Security benefits currently cover about 36% of pre-retirement earnings. That would drop to 29%, “a level not seen since the 1950s,” according to the Boston College analysis.

Social Security was never intended to pay for everyone’s full expenses in retirement — that’s where personal savings, home equity, workplace 401(k) plans, and other assets come in. Millions of current and future retirees could absorb a benefits cut, but those who rely on Social Security for most or all of their income could drift closer to poverty levels. Congress might shield these people by shifting most of the benefit cuts toward more affluent recipients.

What about investing some trust-fund assets in the stock market?

That proposal has been debated for decades and, in retrospect, could have been a wise option, given the stock market's record of generating annual gains of 10% to 11% over the long haul. However, there are also valid concerns, such as the potential for politicians to decide which stocks could be chosen for investment and the possibility that Social Security's huge cash inflows and outflows could distort market trading.

Also, the market can be painfully volatile at times, but stocks generally have stood the test of time. “Indeed, if Social Security had begun investing 40% of its assets in equities in 1984 or even 1997, the trust fund would not be running out of money today,” according to the Boston College report.

Stocks remain a possibility, "But to take advantage of this option, Congress has to act sooner rather than later before the trust fund hits zero," the analysis said. Currently, the reserves are worth $2.6 trillion.

What other problems have resulted from Congress' failure to act?

The policy of doing nothing “undermines Americans’ confidence in the backbone of our retirement system and causes some to claim their benefits early, hoping that those on the rolls may be spared future cuts," the Boston College report said. Worse, inaction will result in more severe, future benefit cuts while spreading the pain less equitably. The longer the delay, the more the burdens of tax increases or benefit cuts fall on Millennials and younger generations.

Both political parties largely have shied away from making the tough decisions to fix the problem, as have presidential contenders Donald Trump and Joe Biden. Yet pledges not to touch the system are akin to endorsing future benefit cuts, noted Maya MacGuineas, president of the Committee for a Responsible Federal Budget.

What are realistic fixes for the program?

Other options for closing the gap range from raising the retirement age to slowing cost-of-living adjustments to subjecting more of the compensation of high earners to payroll taxes. Ultimately, the choices come down to some combination of higher taxes and benefit cuts. Workers and employers already pay a combined 12.4% to support Social Security (plus 2.9% for Medicare), and even more might be needed.

How much more? “If payroll taxes were raised immediately by 3.5 percentage points — 1.75 percentage points each for the employee and the employer— the government could pay scheduled benefits through 2098, with a one-year reserve at the end," predicts the Boston College analysis.

Reach the writer at [email protected].

Aramco share sale planned for summer could net Saudi Arabia a welcome $10 billion amid its Neom project struggles

  • Saudi Arabia is reportedly planning a multi-billion-dollar sale of shares in its state oil company.
  • The sale could take place as soon as next month, Reuters reported.
  • The rumored share sale could provide extra funds for the Neom project.

Insider Today

Saudi Arabia looks set for a multibillion-dollar share sale in its state oil company, Saudi Aramco.

The sale, which could raise about $10 billion, may take place as soon as June and would mark one of the region's largest stock deals, Reuters reported, citing two people familiar with the matter.

The unnamed sources said planning was ongoing and details could change, the report added.

"Decisions about share sales are matters for our shareholders and are not something we are able to comment on," an Aramco spokesperson told Reuters.

The government of Saudi Arabia remains the largest shareholder in Aramco, which is the world's largest oil company by market cap.

Saudi Aramco did not immediately reply to a request for comment from Business Insider.

Related stories

The news comes amid Saudi Crown Prince Mohammed bin Salman's Vision 2030 plan to diversify the kingdom's economy and pivot away from oil.

The plan has involved big spending on sports, entertainment, and infrastructure — largely financed by the Saudi sovereign wealth fund, the Public Investment Fund (PIF).

The kingdom has embarked on a number of "gigaprojects" as part of the 2030 plan, including its Neom megacity .

The project, which is expected to cost at least $500 billion — with some estimates putting the figure at $1.5 trillion — includes the much-talked-about "The Line," a futuristic city in the northwest of the country.

But recent reports suggest Saudi Arabia has been seeking to borrow funds for the project, while also scaling back population estimates for The Line.

The Saudi government had previously said it wanted to move 1.5 million residents into The Line by 2030, but that number is now likely to be fewer than 300,000, Bloomberg reported in April, citing an unnamed person familiar with the matter.

And while the city was set to stretch over 170 kilometers (roughly 105 miles) to the Red Sea, the Bloomberg report said that officials expected just 2.4 km (around 1.5 miles) of the project to be completed by 2030.

The PIF has also been hit with falling cash levels. In January, it said that its cash as of September had dropped to around $15 billion — the lowest level since December 2020, The Wall Street Journal reported.

Saudi Arabia's finance minister said in April that while the kingdom was "very pleased" with the state of its Vision 2030 progress, "challenges" meant adjustments would be made to some aspects of the project.

Watch: Marketing leaders from TikTok, Roku, Mastercard and more tell Insider how consumer behavior has changed across industries

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NYC comptroller lets rip on Elon Musk’s $47 billion pay plan: ‘There’s rarely been as egregious a flaunting of independent shareholder governance as this’

Elon Musk waves to crowd

New York City Comptroller Brad Lander, who oversees five public pension funds with $242 billion in assets, has a message for the Tesla board and CEO Elon Musk: the EV maker is publicly traded, so it should stop behaving like a family-owned business with Musk at the head of the table.

“I don’t know what genuinely independent board would have a CEO who is also CEO of two other large companies,” Lander told Fortune . “Every other major publicly traded company with a genuinely independent board—and many of them with not that independent of a board—expect their CEO to be a full-time CEO for their company.”

Lander and a coalition of seven other investors are urging Tesla shareholders to vote down Musk’s $47 billion stock-option package at the company’s June 13 shareholder meeting. (His pay plan was originally valued at $55.8 billion but it has fluctuated with the company’s stock price performance.) The investors filed a notice this week spelling out a series of concerns about governance at the company, and what Lander called Musk’s “stratospheric” compensation.

One of them is that Musk doesn’t work at Tesla full-time, said Lander, adding that there’s no doubt Musk is distracted by his other companies, which include SpaceX , The Boring Company, xAI, X , and Neuralink. He was also incredulous that the Tesla board, after being served up a rebuke about its independence by a Delaware Chancery Court judge, would again ask investors to approve a compensation plan that will pay Musk billions. Delaware judge Kathaleen McCormick in January rescinded Musk’s pay and ruled that the board , which includes Musk’s brother Kimbal and others with close personal and financial ties to Elon Musk, lacked independence in approving the comp plan and that Musk controlled the process and dictated the terms.

“It takes a lot to get the Chancery Court to say that,” said Lander. “For the board to then turn around and say, ‘We’re ignoring the court and we’re moving forward with this stratospheric pay package and we’re not going to do anything about these distractions’” is beyond the pale.

“I’ve never seen a board just wantonly ignore a court in this way,” he added.

Tesla did not immediately respond to Fortune’s request for comment. Tesla Chair Robyn Denholm has pushed back against the court’s ruling and said that it was “BS” that she was too close to Musk to be considered independent.

In Lander’s view, what Tesla does could have implications that spill across other companies and founders who would rather keep close control of their companies while still having access to the capital markets. “This is not shareholder governance as envisioned by shareholder capitalism,” he said.

Americans have been fortunate to have flourishing capital markets for generations because of the model of independent governance in which shareholders can invest and believe that board members will act as their independent representatives in relation to company management teams, he said.

But he warned that isn’t happening at Tesla: “There’s rarely been as egregious a flaunting of independent shareholder governance as this.”

And while Lander and the other investors aren’t lobbying to replace Musk, the Tesla CEO is “absolutely” replaceable, said Lander. Still, he would rather see the board negotiate an “appropriate compensation package” with Musk and for Musk to provide the level of attention and focus on Tesla that the job requires.

“He is no doubt qualified to be the Tesla CEO, but CEO succession at publicly traded companies of this scale happens all the time,” said Lander. “There are other CEOs who could do it if this CEO isn’t going to give it his full-time attention and adopt a lucrative but at least vaguely reasonable compensation package.”

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Peloton, the fallen fitness unicorn, faces a harsh truth despite its shiny new deal with Hyatt hotels: ‘I don’t think they thought [about] what was going to happen post-pandemic’

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Investment Company Business Plan

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Investment Company

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

This sample plan was created for a hypothetical investment company that buys other companies as investments.  In this sample, the hypothetical Venture Capital firm starts with $20 million as an initial investment fund.  In its early months of existence, it invests $5 million each in four companies.  It receives a management fee of two percent (2%) of the fund value, paid quarterly.  It pays salaries to its partners and other employees, and office expenses, from the management fee.

The investments show up in the Cash Flow table as the purchase of long-term assets, which also puts them into the balance sheet as long-term assets.  You can see them in this sample plan, in the first few months.

In the third year, one of the target companies fails, so $5 million is written off as failure.  You’ll see how that looks as a $5 million sale of long-term assets in the cash flow, and a balancing entry of $5 million in costs of sales in the profit and loss, making for a loss and write-off that year.  The result is a tax loss, and the balance of investments goes to $15 million.

In the fifth year, one of the target companies is transacted at $50 million.  You’ll see in the sample how that shows up as a $45 million equity appreciation in the sales forecast, plus a $5 million sale of long-term assets in the cash flow.  At that point there’s been a $45 million profit, and the balance of long-term assets goes down to $10 million.

This is a simplified example.  The business model holds long-term assets and waits for them to appreciate.  It doesn’t show appreciation of assets until they are finally sold, and it doesn’t show write-down of assets until they fail.  Sales and cost of sales are the appreciation and write-down of assets, plus the management fees.

The explanation above has been broken down and copied into key topics in the outline that are linked to corresponding tables.  These topics are:

  • 2.2     Start-up Summary
  • 5.5.1  Sales Forecast
  • 6.4     Personnel
  • 7.4     Projected Profit and Loss
  • 7.5     Projected Cash Flow
  • 7.6     Projected Balance Sheet

Investment company business plan, executive summary chart image

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Content has been omitted from this sample plan topic, and following sub-topics.  This sample plan has an abbreviated plan outline.  With the exception of the Executive Summary, only those topics linked to key tables have been used.

The focus of this sample plan is to show the financials for this type of company.  Brief descriptions can be found in the topics associated with key tables.

2.1 Start-up Summary

This hypothetical Venture Capital firm starts with $20 million as an initial investment fund.  The venture capital partners invest $100,000 as working capital needed to balance the cash flow from quarter to quarter. 

Investment company business plan, company summary chart image

Market Analysis Summary how to do a market analysis for your business plan.">

Strategy and implementation summary, sales forecast forecast sales .">.

Investment company business plan, sales forecast chart image

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

7.1 personnel plan.

This hypothetical company pays salaries to its partners and other employees, and office expenses, from the management fee of two percent (2%).

Financial Plan investor-ready personnel plan .">

8.1 projected profit and loss.

Please note that in the third year one investment is written off as a failure, producing a $5 million cost which ends up showing a loss for the year of nearly $5 million.  The sale of equity at the end of the period enters the sales forecast and the profit and loss statement as a $45 million gain. 

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Investment company business plan, financial plan chart image

8.2 Projected Cash Flow

The Cash Flow shows four $5 million investments made in the first few months of the plan. 

In the third year, one of the target companies fails, so $5 million is written off as failure.  You’ll see that shows as a $5 million sale of long-term assets in the cash flow, and a balancing entry of $5 million in costs of sales in the profit and loss, making for a loss and write-off that year.  The result is a tax loss, and the balance of investments goes to $15 Million.

In the fifth year, another investment is transacted at $50 million.  This shows up as a $5 million equity appreciation in the Sales Forecast, plus a $5 million sale of long-term assets in the Cash Flow.  At that point there’s been a $45 million profit and the balance of long-term assets goes down to $10 million. 

The partners invest an additional $100,000 in the fourth year as additional working capital to balance the cash flow of the company. 

Investment company business plan, financial plan chart image

8.3 Projected Balance Sheet

You can see in the balance sheet how the ending balances for long-term assets were not re-valued.  They remain at the original purchase price until they are sold, or written off as a complete loss.  There is a $5 million write-off in the third year, and a sale of $5 million worth of assets in the last year.  That sale of $5 million in assets produces the $5 million sale at book value plus the $45 million gain in the sales forecast and profit and loss table.

8.4 Business Ratios

The Standard Industry Code (SIC) for this type of business is 7389, Business Services.  The Industry Data is provided in the final column of the Ratios table. 

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  1. Fund your business

    Fund your business yourself with self-funding. Otherwise known as bootstrapping, self-funding lets you leverage your own financial resources to support your business. Self-funding can come in the form of turning to family and friends for capital, using your savings accounts, or even tapping into your 401 (k).

  2. How to Write Your Business Plan to Secure Funding

    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.

  3. How to Fund Your Business

    40 Proven Ways to Fund Your Business. Angelique O'Rourke. Oct. 27, 2023. Every funding option differs in availability, terms, amount, eligibility criteria, and compatibility with your business needs. Check out our growing list of funding sources to identify the best option for your business.

  4. How to Write a Business Plan: Guide + Examples

    Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you ...

  5. Plan your business

    Fund your business. It costs money to start a business. Funding your business is one of the first — and most important — financial choices most business owners make. How you choose to fund your business could affect how you structure and run your business. Choose a funding source.

  6. How To Write the Funding Request for Your Business Plan

    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. ...

  7. How to Write a Business Plan for Funding

    Here are the core components of a successful business plan for funding. 1. An Executive Summary. The executive summary should cover the essential information about your business: what it does, who it serves, and what you're looking for from the people who read it.

  8. How to Fund Your Business Idea

    Ways to fund your business idea include business loans, credit lines, grants, business credit cards, self-funding, angel investment and crowdfunding.

  9. 40 Proven Ways to Fund Your Business

    39. Using your savings/selling assets. Although this is also known as "betting the farm" and can certainly be risky, it is an option to use your personal savings and/or sell one of your existing assets and use that money to fund your business. 40. Using other income to fuel your business.

  10. How to Write Your Business Plan to Secure Funding

    Step 5: Write out your sales plan. Here are a couple of steps you'll want to take to outline your sales plan. Have some branding ideas on hand: These might include a company name, logo, color ...

  11. How to Finance a Business: 4 Options

    Self-funding comes with the risk of long-term debt or losing personal savings and, potentially, money from loved ones. However, it's a financing option that allows you to retain full ownership over your business, which is often seen as a downside of raising venture capital from investors. 2. Crowdfunding.

  12. How To Write A Business Plan (2024 Guide)

    Describe Your Services or Products. The business plan should have a section that explains the services or products that you're offering. This is the part where you can also describe how they fit ...

  13. How To Write a Business Plan

    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 ...

  14. How to Write a Business Plan in 9 Steps (+ Template and Examples)

    1. Create Your Executive Summary. The executive summary is a snapshot of your business or a high-level overview of your business purposes and plans. Although the executive summary is the first section in your business plan, most people write it last. The length of the executive summary is not more than two pages.

  15. How to Write the Funding Request for Your Business Plan?

    The funding request section of a business plan is an official section for the organizations to ask for new funding. It outlines the amount of funding needed, the purpose of the funds, how they will be used, and in what timeline they will be used (generally for 5 years).

  16. 11 Startup Funding Options To Grow Your New Business

    2. SBA Microloans. The U.S. Small Business Administration (SBA) Microloan program extends up to $50,000 loans to small business owners who need money to grow or get their business off the ground.

  17. Hedge Fund Business Plan Template [Updated 2024]

    Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a hedge fund business plan, your marketing strategy should include the following: Product: In the product section, you should reiterate the type of hedge fund company that you documented in your company overview.

  18. How to Start Your Own Private Equity Fund

    Starting a private equity fund means laying out a strategy, which means picking which sectors to target. A business plan and setting up the operations are also key steps, as well as picking a ...

  19. Hedge Fund Business Plan Template (2024)

    A hedge fund business plan is a plan to start and/or grow your hedge fund business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections. You can easily complete your Hedge Fund business plan using our Hedge Fund Business Plan Template here.

  20. 8 Small Business Funding Options to Get the Money You Need

    Using AI and step-by-step instructions. Create Your Plan. Secure funding. Validate ideas. Build a strategy. 3. Business loans. Applying for a small business loan from a bank or credit union is one of the most common and accessible funding options.

  21. Hedge Fund Business Plan

    A business plan is a tool with three basic purposes: communication, management, and planning. As a communication tool, it is used to attract investment capital, secure loans, convince workers to come on board, and assist in attracting strategic business partners. The development of a comprehensive business plan shows whether or not a business ...

  22. Elon Musk's xAi firm valued at $24 billion as investors pledge more

    The AI firm founded by Elon Musk has raised another $6 billion from investors, including Silicon Valley venture capitalists and a Saudi prince, boosting its valuation to $24 billion.

  23. Cabinet approves plan for 2024 budget boost to fund B500bn handout

    Last month, the Finance Ministry cut its 2024 growth forecast to 2.4%, but said it could reach 3.3% if the handout programme is deployed in the fourth quarter as planned. Southeast Asia's second ...

  24. U.S., allies take key step toward funding Ukraine with Russian assets

    4 min. The United States and its Western allies took a key step Saturday toward using frozen Russian assets to fund Ukraine's war effort, moving closer to providing another key financial stream ...

  25. 6 things to know about the future of your Social Security benefits

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  26. Watch: Marketing leaders from TikTok, Roku ...

    The plan has involved big spending on sports, entertainment, and infrastructure — largely financed by the Saudi sovereign wealth fund, the Public Investment Fund (PIF). Advertisement

  27. SRA consults on 2024-25 business plan, budget and fee levels

    28 May 2024. We have launched a public consultation on our 2024-25 Business Plan and budget, which includes details of proposed practising certificate fees. It also sets out compensation fund contributions for the coming year. We are consulting on oiur element of practising certificate fees for 2024/25, proposing it is held at the same level as ...

  28. Elon Musk's $47 billion pay plan ripped by NYC comptroller

    NYC comptroller lets rip on Elon Musk's $47 billion pay plan: 'There's rarely been as egregious a flaunting of independent shareholder governance as this'. BY Amanda Gerut. May 25, 2024, 7 ...

  29. Investment Company Business Plan Example

    This sample plan was created for a hypothetical investment company that buys other companies as investments. In this sample, the hypothetical Venture Capital firm starts with $20 million as an initial investment fund. In its early months of existence, it invests $5 million each in four companies. It receives a management fee of two percent (2% ...