How to write a business plan to secure finance for your company

How to write your business plan to secure funding

Writing an informative and well-structured business plan encourages investor interest and opens up access to vital funding. This is true whether you’re a start-up or an established company looking for finance to grow.

It’s important to include up-to-date relevant facts and figures, however, so that lenders understand your business and the purpose of the funding. A logical structure and clear presentation will also instil confidence that you know what your business needs and why.

What to include in your business plan

These are some of the main elements that make up a persuasive and compelling business plan:

Executive summary

Although this appears at the beginning of a business plan, it should be written last. The executive summary provides the reader with an overview of your business and must be compelling to encourage them to read on. It will typically include your market opportunity, why customers will buy from you, the business’s unique selling point, and your competition.

You and your company

If you consider your ‘who, what, where, and why’ you’ll let readers know a little about your background - especially relevant if you have previous experience in the market. You’ll typically tell them about your product or service, where you’re going to operate from, the hardware and software you’ll need, and your reasons for forming your company.

Marketing and financial projections

This section needs some in-depth research, as you’ll include the marketing strategies you believe will be most beneficial, as well as important financial projections including sales, cash flow, and profit for the upcoming months.

Management structure

Providing a management structure shows lenders who are responsible for each area of business and their previous experience in that function. Again, this supports your application as you’re describing how and why they’ll contribute to the success of the business.

Your market and competitors

This section of the business plan demonstrates your understanding of the market and how your competitors could damage your plans. Include threats and opportunities, such as the contingency plans you’ll implement if competitors negatively impact your business more than you expected.

How to write a business plan for funding

Work in reverse

By thinking about what success means to you and when you expect your business to start making money, you can think in reverse and determine what you need to do to make that happen.

Keep it concise, relevant, and realistic

Providing information that’s not strictly relevant or presenting it in a complex way can be counterproductive. If the business plan is too ‘wordy’ it may dissuade readers from continuing and jeopardise your chances of being accepted for finance. Providing sensible financial goals and projections based on careful research demonstrates business acumen and authenticity.

Don’t forget to acknowledge the potential for business failure

By recognising the possibility that your business could fail in the future, and presenting contingency plans to deal with potential scenarios, you and your business proposition become more realistic.

UK Business Finance can provide more professional guidance on how to write a business plan with funding in mind. Please get in touch with our expert team to find out how we can help.