Business Plan Writer for Companies Raising Capital

Using Your Business Plan To Get The Funding You Deserve

Using Your Business Plan To Get The Funding You Deserve

Does your business plan enable you to get the funding that you deserve? A lot of entrepreneurs contact me to ask this vital question. I’m often asked if I like a business idea and do I believe it has a chance of receiving funding.
Here’s my confession – the business plan is a small piece of the puzzle. In this article, I will discuss how to position your enterprise for funding.


1. DO YOU HAVE PREVIOUS SALES? Watch any episode of Shark Tank and one of the questions they always ask is “How much have you sold?” Investors love businesses with traction. Proving that you’ve sold 10, 100 or 1000 units is a great first step.
If you haven’t sold any units yet, then you should have a minimally viable product (MVP) to showcase. If you have an app, for example, showcasing a wireframe will help funders envision your product and add credence to your plan. (Although….MVPs of apps are not as expensive as they used to be. I would try to fund a working prototype on your own before you ask for money).
If you are opening a restaurant, a great “MVP” is a catering company, food truck or popup shop.
As I’m speaking with entrepreneurs, I always ask if they really need to raise money or can they start with flyers, a simple website, and some grit? Keep your day job or find a way to fund your living expenses while focusing on getting your first few clients.
2. WHAT’S YOUR REVENUE MODEL? How does this business make money? You must be clear with your investors or the bank. Some businesses (e.g. restaurants) are simpler to explain than others. However, I’ve discovered that the simplest businesses raise the most funds.
3. DO YOU HAVE AN AGGRESSIVE MARKETING PLAN? How do you acquire customers? How will you keep them? You should have an aggressive, yet simple plan to market your business. Author and entrepreneur Grant Cardone has a philosophy called the 10X Rule. It takes entrepreneurs 10 times the amount of effort that you think to start and grow your business. A great business plan has a 10X marketing plan.
4. WHO’S ON YOUR EXECUTIVE/LEADERSHIP TEAM? Have you run a business before? Do you have business skills? What are you and the other executives bringing to the table as the executive team? It’s not enough to just bring the idea. They’re a “dime a dozen.” Passive investors want you to prove to them that you can execute the business plan.
You need to prove within your business plan that you have assembled the right team to be successful. If you don’t have all your team members identified, that’s okay. Write job descriptions for people that you will recruit.
5. DO YOU HAVE CONSERVATIVE REVENUE AND AGGRESSIVE EXPENSES? Investors want to know that you will treat their money as your own. Focus spending (and your Pro Forma Forecasts) on key personnel, marketing and the necessary equipment to get started. If possible, show aggressive expenses and conservative revenues within your forecast. In other words, what’s the minimum revenue you can make while still earning you can make while still making a profit?
6. HAVE A STELLAR ELEVATOR PITCH. 60seconds. 2minutes. 3 minutes. You must easily explain what your business does, how it makes money, how much you’re raising, what you will use the funds for and how much of the market you’ll capture with the investment. And you must be able to explain your investment opportunity in a CONCISE manner. Don’t feel you have to explain everything about your business. You simply want the investor to say “Wow! tell me more.” At that point, you have the green light to give them more information.
Simple sells. Whether you’re selling a product to consumers or your company as an investment, this fundamental rule is TRUE.
If you’re seeking a bank loan, you will need a good credit score, income ratio, cash (10%-20% of the amount you need), and a business that will produce cash flow immediately. Apps and other types of research and development are not suitable for bank loans. If you don’t have credit, collateral, and cash, you will NOT receive a bank loan…no matter what your business plan says.
Entrepreneurs who have had a previous relationship with the investors they are pitching are usually the most successful. If you don’t have current relationships with high net worth individuals, start networking early and often.
If you need a business plan, contact me at wewritebusinessplans.com. We would love to assist you with getting the funding that you deserve.