It is generally accepted that a business plan is essential for business owners who are seeking to raise money to help fund their businesses. However, a business plan written by the management team can easily fall into the trap of being inward focussed, i.e. centred around the management benefits of planning. To secure finance, you will need to have a business plan, which is specifically targeted to meet the individual requirements of your finance providers or your investors, and not your management team.   How does a Funding Business Plan help? Whether debt or equity, a potential backer wants to see why you need finance, how you plan to use it, and what evidence you can provide to back up any claims. It helps convince lenders and investors, that the business owner has thought the strategy through. It also gives any actual investors a set of financial benchmarks for which the business owner and the management team can be held accountable.   What should be … [Read more...]