how to get a business plan funded

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Fund Your Business Idea

Rosalie Murphy is a small-business writer at NerdWallet. Since 2021, she has covered business insurance, banking, credit cards and e-commerce software, and her reporting has been featured by The Associated Press, MarketWatch, Entrepreneur and many other publications. Rosalie holds a graduate certificate in Quantitative Business Management from Kent State University and is now pursuing an MBA. She is based in Chicago.

Sally Lauckner is an editor on NerdWallet's small-business team. She has over 15 years of experience in print and online journalism. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content and specializing in business financing. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She is based in New York City.

Lisa A. Anthony is a lead writer on NerdWallet’s small-business team, primarily covering small-business lending. She has over 20 years of diverse experience in finance, lending and taxes. Prior to joining NerdWallet, Lisa worked as a writer for Intuit Turbo Tax, loan officer for Bank of America and a business analyst for Wells Fargo Home Mortgage. Over the years, she has had the opportunity to interact directly with consumers on lending products and tax preparation software. Her work has appeared in The Associated Press, Washington Post and Entrepreneur, among other publications.

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?

with Fundera by NerdWallet

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.

Self-funding

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?

Crowdfunding

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

Compare multiple lenders that fit your business

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.

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.

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.

https://blog.hubspot.com/sales/how-to-write-business-proposal

https://www.etu.org.za/toolbox/docs/finances/proposal.html

https://www.mybusiness.com.au/how-we-help/grow-your-business/increasing-sales/how-to-write-a-funding-proposal

Related Blog Post

How Much Can I Borrow for a Business Loan

July 4, 2024

Unlock your business potential with the ultimate guide on borrowing for your business. Discover how much you can borrow for a business loan.

What is the Cost of Invoice Discounting?

Unveil the cost of invoice discounting! Dive into factors, hidden fees, and make informed decisions for your financial future.

Financial Planning Tips for Entrepreneurs

Unlock financial success as an entrepreneur with essential tips for effective financial planning. Maximize your wealth to secure your future

The Ins and Outs of Credit Card Factoring

Navigate credit card factoring with ease! Discover the ins and outs of this business financing solution for growth and success.

How Can Fintech Help Small Businesses Succeed?

Discover how fintech revolutionizes small businesses, empowering growth and success through streamlined operations.

SBA Loan Collateral Requirements

Discover the essential SBA loan collateral requirements to fortify your application. Secure your business's future with the right assets.

Definition of Financial Planning for Entrepreneurs

Unlock financial freedom with expert financial planning for entrepreneurs. Learn how to navigate unique challenges and achieve your goals.

Interest Rate vs. APR: What's the Difference?

Unraveling the mystery: Interest rate vs. APR - discover the key differences and make informed financial decisions.

Typical Small Business Loan Terms

Demystify small business loan terms and gain financial clarity. Get to know typical small business loan terms for a successful loan journey.

How Technology is Transforming Business Finance

Experience the revolution! Discover how technology is transforming business finance, unlocking new possibilities for success.

Venture Capital vs Venture Debt: A Guide for Startups

Demystifying venture capital vs. venture debt for startups. Unlock your potential with the right funding strategy.

The SMB Merchant Cash Advance Guide

Unlock the SMB Merchant Cash Advance Guide and propel your business growth! Discover qualifications, pros and cons, and repayment terms.

5 Important Fintech Solutions for Your Startup or SME

Discover the 5 vital fintech solutions to level up your startup or SME! Streamline financial processes and enhance cash flow management.

GPO Healthcare: Everything You Need to Know

Unlock the secrets of GPO healthcare: the key to efficient and affordable medical solutions for providers and facilities.

Understanding Venture Debt Financing

Unlock the secrets of venture debt financing! Gain a complete understanding of the process, advantages, and best practices.

Tax Practitioner Guide to Business Identity Theft

July 2, 2024

Combat business identity theft with empowering strategies! Protect your financial and reputational well-being as a tax practitioner.

Types of Fleet Financing

Discover the diverse world of fleet financing! Explore outright purchases, leasing options, asset-based financing and lines of credit.

What Is Identity Theft? Types and Examples

Unveiling the hidden danger of identity theft: types, examples, and how to protect yourself. Don't fall victim!

Best Business Cash Flow Loans

July 1, 2024

Discover the best business cash flow loans for financial success. Unlock funding options to boost your business's growth and stability.

What is the Employee Retention Credit?

Unravel the Employee Retention Credit and discover its benefits. Find out how to qualify, calculate, and claim this valuable credit.

What is Retail Finance?

Unlock the secrets of retail finance! Discover the basics, benefits, and risks for financial success. What is retail finance? Find out now!

What are Commercial Fleet Financing Options?

Unlock the key to financial success with commercial fleet financing options. Discover the best ways to fund your fleet.

What Will I Pay for Tax Preparation Fees?

Unraveling tax preparation fees: Discover what you'll pay and how to save. Get clarity on costs, benefits, and expert advice.

The Maze of Real Estate Rentals

Master the maze of real estate rentals! From understanding the rental market to navigating lease agreements.

Section 179 not Allowed on Rental Property

Discover the truth about Section 179 exemptions for rental properties. Avoid tax pitfalls and maximize your rental property investment.

How Much Does It Cost to Open a Beauty Salon

Discover the hidden costs of opening a beauty salon. From rent to equipment, we unveil the numbers you need to know!

How to Protect Your Business from Identity Theft

Protect your business from identity theft! Learn essential strategies and detection methods to safeguard your operations.

Pros and Cons of Filing Bankruptcy

Uncover the pros and cons of filing bankruptcy and make an informed financial decision. Navigate your financial crossroads with confidence.

Tax Filing Guide: How to File Taxes in 2024

Master tax filing with our step-by-step guide! Learn how to file taxes in 2024 like a pro.

How to Get Trucking Contracts with the Government

Unlock government trucking contracts with insider tips! Learn how to navigate bidding, build relationships, and compliance for success.

How to Prepare a Cash Flow Statement

Master the art of preparing a cash flow statement! Unlock financial insights and make informed decisions for your business.

Best Semi-Truck Financing Options

Discover the best semi-truck financing options to drive your success on the road to ownership. Choose wisely and accelerate your journey!

How to Calculate Cash Flow

Master the art of calculating cash flow with confidence! Unveil financial wizardry and optimize your cash flow management.

How To Get A Business Auto Loan

Get your business on the road to success with a hassle-free business auto loan. Unlock growth and drive towards your dreams!

7 Alternatives if You Can't Qualify for a Personal Loan

Need financial support but can't qualify for a personal loan? Discover 7 alternatives to fund your needs and overcome financial hurdles.

Food and Beverage Business Plans

Master the art of profitable food and beverage business plans. Unlock success with market analysis and financial projections.

Farm Loans for Farmers and Ranchers

Navigate farm loans for farmers and ranchers! Discover loan options, application process, and repayment plans for your agricultural success.

11 Small Business Grants For Minorities

Discover 11 small business grants for minorities! Unlock funding opportunities to fuel your entrepreneurial dreams.

The Financial Impact of Substance Abuse

Discover the devastating financial effects of substance abuse. From impulsive spending to community costs, learn how it impacts lives.

Debt Financing Vs. Equity Financing

Debt or equity financing? Discover the pros, cons, and key differences to make the best financial choice for your business.

Making Small Business Loans Profitable

Master the art of making small business loans profitable with effective strategies and smart techniques.

Minority-Owned Businesses

Discover inspiring success stories of minority-owned businesses, shattering stereotypes and making a lasting impact.

How to Write a Restaurant Business Plan

Crafting a restaurant business plan that impresses! Learn the key components and strategies to make your venture a success.

Socio-Economic Impact of Drug Abuse

Uncover the far-reaching socio-economic impact of drug abuse. Explore health consequences, financial burdens, and strategies for prevention.

4 Ways Addiction Causes Financial Trouble

Discover how addiction wreaks havoc on your finances. Uncover the 4 alarming ways addiction causes financial trouble.

POS System for Small Business

Unlock small business success with the perfect POS system! Streamline operations, manage inventory, and boost sales.

How to Calculate Gross Margin Ratio

Master the art of calculating gross margin ratio! Learn the formula, analyze results, and make informed financial decisions.

Justifying Investments With the Capital Budgeting Process

Maximize returns with the capital budgeting process! Justify investments like a pro with strategic alignment and financial viability.

Funding Options for Women-Owned Businesses

Unlock financial independence for women-owned businesses with diverse funding options. Empower your entrepreneurial journey today!

What Autism-Related Benefits and Taxes can I Claim?

Discover valuable autism-related benefits and deductions. Learn how to maximize your tax savings today!

The Relationship Between Small Business Loans and Wages

Discover the impact of small business loans on wages and how they empower entrepreneurs. Unleash the potential of your business!

How to Start a Small Business: 5 Tips for Success

Discover the secrets to home-based success with 5 essential tips on starting a small business. Turn your dreams into reality!

Women-Owned Businesses

Unleashing the power of women-owned businesses: Fueling growth, innovation, and empowerment in communities. Discover the impact now!

Secured vs. Unsecured Business Loans Guide

Demystify secured vs. unsecured business loans with our ultimate guide! Make informed financing decisions for your business.

Gross Margin Ratio

Unlock business success with the gross margin ratio! Discover how to optimize performance and make informed decisions.

What is an Unsecured Business Loan

Discover unsecured business loans: the key to fueling growth without collateral. Get funds faster and unleash your business potential!

The Importance of Business Cleaning Services

Discover the importance of business cleaning services and how they enhance workplace hygiene, employee morale, and customer perception.

Best small business loans for women

Discover the best small business loans for women, empowering entrepreneurs with financing options for success.

Poverty and Addiction Relationship

Unveiling the complex relationship between poverty and addiction. Explore challenges, breaking the cycle, and advocating for change.

Therapy for Compulsive Spending

Transformative therapy for compulsive spending: Find freedom from financial burdens with effective counseling and support.

Income vs Revenue vs Earnings - Definition

Clearing up the confusion: Income, revenue, and earnings defined. Understand the differences and their impact on financial statements.

Small Business Loan Statistics And Trends 2024

Get the scoop on small business loan statistics and trends for 2024. Empower your entrepreneurial journey with valuable insights and tips!

Types of Equipment Financing

Demystifying equipment financing! Explore lease financing, equipment loans, sale-leaseback, and more.

Veteran-Owned Businesses

Discover the triumphs of veteran-owned businesses, their impact on the community, and the resources available to support their success.

How Alcohol and Drugs Can Affect Your Finances as a Family

Discover how alcohol and drugs impact family finances. Uncover the hidden costs and find ways to regain stability.

Is It Possible To Be Addicted to Spending?

Unveiling the spending spiral: Is addiction to spending real? Explore the psychology for overcoming this addictive behavior.

Is Autism Funding Taxable?

Unraveling the mystery of autism funding: Is it taxable? Explore the tax implications and government support for autism services.

Capital Budgeting Basics

Unlock the secrets of capital budgeting basics! Learn how to make informed financial decisions with confidence.

How Does Addiction Affect Families?

Uncover how addiction tears families apart. From communication breakdown to financial strain, explore the impact and find a path to healing.

How Addiction Eats Away At Your Finances

Discover how addiction wreaks havoc on your finances. From immediate consequences to long-term effects.

Medical Equipment Financing

Achieve expansion with medical equipment financing. From needs assessment to repayment management, unlock growth opportunities today!

Types of Commercial Insurance

Safeguard your business with comprehensive commercial insurance coverage. Explore types, from general liability to industry-specific options

What Are the Types of CapEx (Capital Expenditures)?

Discover the different types of capex and master the money game! From maintenance to strategic, we've got you covered.

Top Line and Bottom Line

Demystifying financial metrics! Discover the power of top line and bottom line for strategic decision making.

Auto Repair Loans for Businesses

Grow your business with auto repair loans! Get the funds you need for maintenance and repairs to enhance efficiency and customer service.

Net Income Formula | Calculation and Examples

Discover the net income formula and simplify your calculations with our handy calculator. Master your finances like a pro!

Simple Path Financial Overview

Discover financial empowerment with Simple Path Financial! Personalized guidance and transparent fees for your long-term financial journey.

Instructions for Form 4562

Master Form 4562 with ease! Find step-by-step instructions for completing your tax forms and avoid common mistakes.

17 Big Tax Deductions (Write Offs) for Businesses

Discover the 17 biggest business tax write-offs and maximize your savings! Unveiling strategic deductions and tax planning strategies.

Break-Even Analysis: Formula and Calculation

Master your business potential! Discover the break-even analysis formula and calculation to optimize profitability and decision-making.

How to Get a Construction Business Line of Credit

Unlock your construction business potential with a line of credit! Learn how to get one and maximize its benefits for success.

Bridge Lending Solutions

Discover bridge lending solutions to bridge the gap between you and your financial goals. Explore the pros and cons, and eligibility

Learn How to Calculate Owner's Equity

Master the art of calculating owner's equity and unlock the secrets to financial wizardry. Learn how in a few simple steps!

What Is Form 4562: Depreciation and Amortization?

Demystifying Form 4562: Discover the ins and outs of depreciation and amortization for tax benefits!

Gross Revenue vs. Net Revenue Reporting

Crack the code on gross vs. net revenue! Unveiling the key differences and their implications for business operations.

Introduction to .NET Framework

Demystify the magic of the .NET Framework! Discover its key features, benefits, and common uses for your development needs.

The Significance of Proper Funding

Unlock success with proper funding! Discover the significance of funding for business growth and long-term triumph.

Benefits of Heavy Equipment Financing

Unlock business growth with heavy equipment financing! Discover how to enhance operations and seize growth opportunities today.

Credits and Deductions for Individuals

Unlock the power of tax credits and deductions for individuals. Maximize savings with expert strategies and essential tips.

Bad or No Credit Loan Options

Discover bad or no credit loan options to turn rejection into approval. Explore types, factors, and alternatives for your financial needs.

Understanding Construction Lines of Credit

Unlock the potential of construction lines of credit! Discover the benefits, qualifications, and tips for maximizing this financing tool.

How to Calculate Capital Expenditures (CapEx)

Master the art of calculating capital expenditures (capex) effortlessly! Learn the formula and steps to make informed financial decisions.

Financial Assistance For Parents Of Autistic Children

Unlock financial support for parents of autistic children. Discover government assistance programs, educational support, and more.

Grants for Families Living With Autism

Unlock grants for families living with autism! Discover financial support options to create a brighter future for your loved ones.

What is Net Revenue

Demystifying net revenue: Learn what it is, how it impacts businesses, and strategies to enhance it. Uncover the key to financial success!

Money Management Idea for Aging Seniors

Discover essential money management ideas for aging seniors. Safeguard your savings and secure your financial future.

Equity Meaning: How It Works and How to Calculate It

Demystifying equity: learn how it works and calculate it like a pro. Unlock the secrets of equity distribution and stake calculation.

Multi-Purpose Loan (MPL)

Unlock financial possibilities with multi-purpose loans (MPL). Break barriers and achieve your dreams with flexibility and ease.

What is a Statement of Shareholder Equity?

Unveiling the purpose of the statement of owner's equity - gain financial clarity and assess your business's health.

How to Calculate Sales Tax?

Cracking the code: Learn how to calculate sales tax effortlessly and avoid any financial surprises.

Home > Finance > Loans

How to Fund Your New Business

We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure .

You’ve had your “aha!” moment: that first big business idea. You carefully considered your market, your target customer, and your business model. You even made up a memorable business moniker with ample alliteration. But before you can take any more steps, you need to know how to get funding for a business.

In this article, we’ll discuss the wide range of funding options available to business owners so you can find the options that work for you and your budding business.

How to get funding for a business

• Personal savings : The most common way
• Family and friends : The people who already trust you
• Personal credit : It's easier than business loans
• Angel Investors : What you need to know
• Business loans : How to get them
• Crowdfunding : A new option

By signing up I agree to the Terms of Use.

Before we begin: Funding vs. sales

While funding can be crucial for startups, it can also become a trap. Billionaire Mark Cuban, well known for his roles as an investor on the reality show Shark Tank and as an outspoken owner for the Dallas Mavericks, suggests that raising money isn’t everything :

“The biggest mistake entrepreneurs make when they’re first starting out is they think they have to raise money, and that raising money is an accomplishment. Raising money isn’t an accomplishment, it’s an obligation.” – Mark Cuban, Billionaire Entrepreneur and Startup Investor

Cuban—who started his first small business, MicroSolutions, in 1982—obviously knows the importance of investors. After all, he plays one on TV! But he also understands that finding seed money doesn’t matter without also finding customers and sales:

“Sales cures all. There's never been a company that succeeded without sales. It's not about raising money, it's not about the idea. It's about finding customers that you can really create value for and making them happy. And when you have happy customers, they tell other people who become happy customers and that turns into a successful business."

Remember that even if you don’t receive every dollar you hoped for, you can still build the successful business Cuban describes as long as you find a way to make customers happy. Startups carry a risk, and debt can be a huge burden when a new business is struggling. Avoiding investors and debt—and the obligation that comes with them—gives an unproven startup some freedom.

Personal savings

Personal savings are the safest and cheapest way to fund a business. By relying on personal savings, you are both borrower and lender. You probably won’t take your own house as collateral or charge yourself interest.

Of course, using personal savings doesn’t eliminate all risk. You can still lose money on your personal investment. But if you borrow from yourself responsibly you can mitigate any possible damage and keep your personal finances afloat instead of going down with the startup ship.

Make sure to save some money in the bank for problems that may crop up later. You can also borrow from a retirement fund like a 401K or self-directed IRA, which is fairly common. But remember to keep careful record of your payments back to your retirement to avoid future issues.

If you feel uncomfortable about using the savings you currently have, you might want to wait on your idea until you feel more confident. Look over that budget and find additional ways to save (or find additional income sources). Keep saving, continue refining your business plan, and you’ll build confidence in your investment as well as your ideas.

Business loans

Generally speaking, it’s difficult to get small-business funding for brand-new businesses through bank loans . Lenders need to be confident in your ability to repay the loan, and they won’t have any solid evidence of that without company income as a reference.

If you give your business a little time to breathe, coming back to the bank at a later date could give you greater funding to grow. You’ll have cash flow numbers to show your lenders, and you’ll have proven a real commitment by sticking with your business for a year or two. Securing a business loan or business credit cards will be great not only in the short term but also in the future—you can start building a credit history for your business that will enable even more opportunities down the line.

When banks and credit unions are still reluctant to finance small businesses, online lenders can fill that void. Some online lenders rely on peer-to-peer lending where small shares from investors are matched with potential borrowers. Other lenders function like a traditional bank.

Based on your borrower profile, Lendio can match you up with the right lender for your business.

While generally more expensive, online lenders offer opportunities to businesses that have been otherwise turned down by banks. There are quite a few reliable online lenders to turn to, and there are even a handful of options for businesses with bad credit . Some online lenders also focus on assisting women-owned businesses or minority-owned businesses, which can be quite helpful for marginalized communities.

Small businesses can benefit from Small Business Administration (SBA) loans too. The government backing of these loans makes them significantly safer for lenders. Talk to your lender to see if one of the several SBA-backed loans could fit your situation and help your young business.

Learn more about funding your business in our How to Get a First-Time Small Business Loan article. 

Family and friends

Some potential business owners might feel uncomfortable asking people they know for financial aid, but there are a couple benefits to turning to friends or family before financial institutions. First, depending on your relationships, you might have an easier time rallying friends and family to your cause thanks to your connection with them. Second, you will likely pay little or no interest, which saves you money.

But you do run the risk of damaging friendships and trust. Naturally, each friend or family member might respond differently, but in most cases, it will help if you treat the transaction professionally. Share your business plan and why you think it will succeed with them. Tell them when and how you plan to pay them back.

You can also treat any friends and family members like true investors and offer them friends and family shares , also known as directed shares. They will receive a share of the business, and when your big idea takes off, they’ll benefit.

Personal credit

If you have a great personal credit score, you might be able to take out a loan from a bank, credit union, or online lender. Almost all lenders will factor in your personal credit history when you apply for a business loan, but some lenders may want to see a credit score for your business , which could be a problem for a brand-new startup business.

Alternatively, you might want to skip the business loan entirely and ask for a personal loan from your local bank. If your personal credit is better than your business’s credit, these loans can have a lower interest rate, which is an obvious plus. And when entrepreneurs have no track record to show the bank, it makes sense to ask the bank to focus on personal credentials instead.

But despite these benefits, you might run into a few problems:

• Messy bookkeeping —You really want to keep a clear split between your business finances and personal finances whenever you can. Tax season is stressful enough without a confusing conglomeration of professional and personal financial records.
• Personal liability —Even if you signed up for an LLC for the limited liability, using personal loan money could leave you fighting to protect your personal assets if your company goes to court.
• Less options —Business loans can include options for specific business issues, including SBA-backed loans, equipment or invoice financing, and disaster loans.

Avant’s secure personal loan options and next-day funding make it our top pick for brand new businesses not yet qualified for business loans.

Qualifications:

No min. time in biz

No min. revenue

550+ credit score

Instead of personal loans you could also take a look at personal credit cards. Although personal cards usually have a smaller credit limit, a personal card dedicated to business expenses might help with small purchases while you wait for your business to generate income. As with any credit card, pay off your balance early and don’t borrow what you can’t pay back. Just remember that if you use a personal credit card, you’ll be building your personal, not your business, credit score.

If you do choose to go into personal debt for your business, aim to keep your debt limited to only the expenses needed to get your business rolling. Some good examples would be purchasing equipment to create your product or building a marketing team.

Angel investors

With a name so heavenly, who wouldn’t seek out angel investors? These sponsors back promising startups with capital in exchange for shares in the company. As a result, the most important thing they’re looking for is how reliable and how large the return on their investment will be.

If you intend to keep your company small with a modest business plan, there’s absolutely nothing wrong with that. But you probably won’t get a nibble when fishing for angel investors or venture capitalists. They want their share in the company to grow and grow, so you’d have to have the next big idea to get them to bite. In other words, for most startup businesses, venture capital is a fairly unlikely source of funding.

In addition to dreaming big, businesses might find better luck if they develop a new product or process that could in turn be sold to larger companies in the future. Do you believe your business could catch the eye of an angel investor? Make sure you prepare as much as possible for your pitch . You’ll only get one shot, and you’ll need all the answers and confidence you can muster.

Crowdfunding

If phoning a friend won’t work, maybe asking the audience could help you on your path to be a millionaire. Game shows aside, crowdsourcing your financing can be a powerful tool. Because the investments are split into much smaller amounts, the investors feel a lot less risk with the money they do pledge to your crowdfunding campaign.

Additionally, your crowdfunding campaign also functions as its own marketing campaign. While some crowdfunding sites (called equity crowdfunding platforms) do offer securities, many popular platforms, such as Kickstarter , don’t offer actual shares in the company. Instead, people invest because they love the product itself and want to see it happen. So you’re already connecting with your biggest fans before your business even begins.

A huge part of a successful crowdfunding project is selecting the right site. Crowdfunding platforms attract different crowds, and you want to find the right crowd for your small business.

Keep in mind that a good funding project takes work before, during, and after the campaign. Before you start the campaign, you’ll need to organize an effective pitch (and remember who you’re pitching to). While the project is ongoing, you’ll likely want to include frequent updates to create and maintain interest. And afterward, you’ll need to make good on the promises of your campaign, including backer rewards if they were offered.

More about How to Crowdfund Your New Business .

As you narrow down how to get funding for your business, don’t forget that you can split funding between different sources, wait for a better time, or maybe even forge ahead without all the money. Though it may seem like it in the moment, the worth of your ideas and your business plan isn’t measured by the funding you get. Many factors play into successful investors and loans, and some of those factors might end up in your favor the next time you go looking for financing.

This article covers a broad topic, so if you have any additional in-depth tips we’d love to hear them in the comments section!

Related content

• What Is a Business Line of Credit & How Does it Work?
• Government Small-Business Loans: What You Need to Know
• Types of Startup Business Loans
• How Credit Scores Affect Small-Business Loans

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

5202 W Douglas Corrigan Way Salt Lake City, UT 84116

Accounting & Payroll

Point of Sale

Payment Processing

Inventory Management

Human Resources

Other Services

Best Small Business Loans

Best Inventory Management Software

Best Small Business Accounting Software

Best Payroll Software

Best Mobile Credit Card Readers

Best POS Systems

Best Tax Software

Stay updated on the latest products and services anytime anywhere.

By signing up, you agree to our Terms of Use  and  Privacy Policy .

Disclaimer: The information featured in this article is based on our best estimates of pricing, package details, contract stipulations, and service available at the time of writing. All information is subject to change. Pricing will vary based on various factors, including, but not limited to, the customer’s location, package chosen, added features and equipment, the purchaser’s credit score, etc. For the most accurate information, please ask your customer service representative. Clarify all fees and contract details before signing a contract or finalizing your purchase.

Our mission is to help consumers make informed purchase decisions. While we strive to keep our reviews as unbiased as possible, we do receive affiliate compensation through some of our links. This can affect which services appear on our site and where we rank them. Our affiliate compensation allows us to maintain an ad-free website and provide a free service to our readers. For more information, please see our  Privacy Policy Page . |

© Business.org 2024 All Rights Reserved.

• Sources of Business Finance
• Small Business Loans
• Small Business Grants
• Crowdfunding Sites
• How to Get a Business Loan
• Small Business Insurance Providers
• Best Factoring Companies
• Types of Bank Accounts
• Best Banks for Small Business
• Best Business Bank Accounts
• Open a Business Bank Account
• Bank Accounts for Small Businesses
• Free Business Checking Accounts
• Best Business Credit Cards
• Get a Business Credit Card
• Business Credit Cards for Bad Credit
• Build Business Credit Fast
• Business Loan Eligibility Criteria
• Small-Business Bookkeeping Basics
• How to Set Financial Goals
• Business Loan Calculators
• How to Calculate ROI
• Calculate Net Income
• Calculate Working Capital
• Calculate Operating Income
• Calculate Net Present Value (NPV)
• Calculate Payroll Tax

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

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?

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.

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.

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.

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.

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.

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.

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.

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

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)

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.

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.

• 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.

Advertising

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,

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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 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

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 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

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

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 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

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 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.

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.

• 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.

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.

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.

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)

Was This Article Helpful?

Martin luenendonk.

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.

How to Create a Startup Funding Proposal: 8 Samples and Templates to Guide You

Being a founder is difficult. Managing the day-to-day as a founder while trying to secure capital for your business can almost feel impossible. Thankfully, there are different tools and techniques that founders can use to systemize their fundraise to focus on what truly matters, building their business.

One of those tools is a startup funding proposal. In this guide, we’ll break down what a startup funding proposal is and how you can leverage it to build momentum in your fundraise.

What Is a Startup Funding Proposal?

A startup funding proposal is a document that helps startup founders share an overview of their business and make the case for why they should receive funding. A startup funding proposal can be boiled down to help founders layout 3 things:

• What — what does your startup do
• How — how does your startup or product help customers accomplish what they are seeking
• Why — why does your startup need funding and why should an investor fund your business

Related Resource: How to Write a Business Plan For Your Startup

Types of Startup Funding Proposals

Like any business document, there are many ways to approach a startup funding proposal. Ultimately it will come down to pulling the pieces and tactics that work best for your business. Investors are seeing hundreds, if not thousands, of deals a month so it is important to have your assets buttoned up to move quickly and build conviction during a raise. Check out a couple of popular types of funding proposals below:

Traditional Startup Funding Proposal

The most traditional or “standard” standard funding proposal is generally a written and visual document that is created using word processing software and/or design tools.

A traditional proposal is great because it allows you to share context with every aspect of your business. For example, if you include a chart of growth you’ll be able to explicitly write out why that was and what your plan is for future growth.

This document is generally designed to fit your brand and will hit on the key components of your business is structured and predictable way. We hit on what to include in your proposal below.

Startup Funding Proposal Pitch or Presentation

The most common approach we see to a fundraise or proposal is the pitch deck. Pitch decks take the same components as any proposal and fit them into a visual pitch deck that can be easily navigated and understood by a potential investor.

Pitch decks are not required by investors by are generally expected and are a great tool that can help you efficiently close your round. To learn more about building your pitch deck, check out a few of our key resources below:

• Tips for Creating an Investor Pitch Deck
• 18 Pitch Deck Examples for Any Startup
• Our Teaser Pitch Deck Template

1-on-1 Proposals (Elevator Pitch)

A 1 on 1 proposal or an elevator pitch is the quickest version of any proposal. Every founder should have an elevator pitch in their back pocket and is a complementary tool to any of the other funding proposals mentioned here.

As the team at VestBee puts it, “Elevator pitch” or “elevator speech” is a laconic but compelling introduction that can be communicated in the amount of time it takes someone to ride an elevator, usually around 30 seconds. It can serve you for fundraising purposes, personal introduction, or landing a prospective client.”

Email Proposal

Another common way to share a startup funding proposal via email. While the content might be similar to what is seen in a “traditional” funding proposal this allows you to hit investors where they spend their time – their inbox.

The format will follow a traditional proposal with less emphasis on visual aspects and more emphasis on the written content. Check out an example from our Update Template Library below:

Related Resource: How to Write the Perfect Investment Memo

Investor Relationship Hub

Lastly, there is an investor relationship hub or data room that can be used to share your proposal with potential investors. A hub is a great place to curate multiple documents or assets that will be needed during your fundraise. For example, you could share your funding proposal and your financials if they are requested by a potential investor.

Related Resource: What Should be in an Investor Data Room?

What to Include in Your Startup Funding Proposal

How you share your funding proposal might differ but ultimately the components are generally closely related from one proposal to the next. However, be sure that you are building this for your business. There is no prescriptive template that will work for every business.

Project Summary

First things first, you’ll want to start with a summary of your project or your business. This can be a high-level overview of what your proposal encompasses and will give an investor the context they need for the rest of the proposal. A couple of ideas that are worth hitting on:

• What your company does and how it’s different from existing solutions to pressing problems.
• Existing market gaps and how your product covers them.
• The importance of your product in your industry and how it improves the industry.
• Existing resources and manpower, investment requirements, and potential limitations.

Current Performance and Financial Report

Of course, investors want to see how your business has been performing. The data and metrics around your business are generally how an investor builds conviction and further interest in your business. We suggest using your best judgment when it comes to the level of metrics or financials that you’d like to share. A couple examples of what you might share:

• Current assets and liabilities
• MVP presentation for companies still in the ideation stage
• Appendix with financial reports

Related Resource: ​​ Building A Startup Financial Model That Works

Existing Investors and Partners

Inevitably investors will want to know who else you have raised capital from and partnered with in the past. Include a brief description of the different investors you have on your cap table and be ready to field additional questions if they have any.

Pro tip: The first place an investor will go to when performing due diligence is your current investors. Make sure you have a strong relationship and good communication with your current investors.

Market Study and Sales Goals

Investors will also care about your customer acquisition efforts and want to make sure you can repeatably find and close new customers. A couple of things that might be important to include in this section:

• Product pricing and information
• Revenue targets and goals
• Customer acquisition model and efforts
• Sales and marketing related KPIs
• Stories or testimonials from happy customers

Current Valuation, Investment Requirements, and Expected Returns

This is an opportunity to lay out your cap table and explain your current valuation, investment requirements, and what future valuations could look like. As always, we suggest using your best judgment when it comes to what level of detail you’d like to share about your cap table.

Potential Pitfalls and Solutions

There is an inherent risk when investing in any startup. It is important to make sure potential investors are aware of this. Layout the common pitfalls your startup might face and stop you from achieving your goals. Next, lay out the solutions to these problems and how you plan to tackle them if/when they arise.

8 Startup Funding Proposal Samples and Templates

Below are 8 proposal templates to help you kick off your next fundraise. Note that some of these are technically investor updates and not designed for first-time fundraising. Keep in mind that a startup funding proposal could also be utilized for additional funding after the first round of funding.

1. An Investment Summary Template by Underscore VC

Underscore VC is a seed-stage venture fund based out of Boston. As the team at Underscore writes :

“As part of this, we strongly recommend you write out a pitch narrative before you start to build a pitch deck. “Writing the prose forces you to fill in the gaps that can remain if you just put bullets on a slide,” says Lily Lyman, Underscore VC Partner. “It becomes less about how you present, and more about what you present.”

This exercise can help you synthesize your thoughts, smooth transitions, and craft a logical, compelling story. It also helps you include all necessary information and think through your answers to tough questions.

Check out the template here .

2. The Visible “Standard” Investor Update Template

Our Standard investor update template is great for communicating with existing investors. If you are regularly sending Updates to their investors they should know when you are beginning to raise capital again and can almost be treated as an investment proposal.

Check out the template for our standard investor update template here .

3. Sharing a Fundraising Pitch via Video

Videos are a great way to give the right context to the right investors in a concise and quick way. Video is a great supporting tool for any other information or documents you might be sending over. For example, you can include a few charts or metrics and some company information and use the video to further explain the data and growth plans. Check out the template here .

4. Financial Funding Proposal

The team at Revv put together a plug-and-play financial funding proposal. As they wrote, “A funding proposal must provide details of your company’s financials to obtain the right amount of funding. Check out our funding proposal template personalized for your business.” Check out the template here .

5. Investor Proposal Template for SaaS Companies

The team at Revv put together a template to help founders grab the attention of investors. As they wrote, “With so many Investing Agencies, this Investor proposal will surely leave an impact on your company in the long run.” Check out the template here .

6. Startup Funding Proposal Sample

Template.net has created a downloadable funding proposal template that can be edited using any tool. As they wrote, “Get your business idea off the ground by winning investors for your business through this Startup Investment Proposal. Fascinate investors with how you are going to get your business into the spotlight and explain in vivid detail your goals or target for the business.” Check out the template here .

7. Simple Proposal Template

Best Templates has created a generic proposal template that can be molded to fit most use cases. As they wrote, “Use this Simple Proposal Template for any of your proposal needs. This 14-page proposal template is easily editable and fully customizable using any chosen application or program that supports MS Word or Pages file formats.”

8. Sample Investment Proposal for Morgan Stanley

Another example is from the team at Morgan Stanley. The template is commonly used by their team and can be applied to most proposal use cases.

Connect With More Investors and Tell Your Story With Visible

Being able to tie everything together and build a strategy for your fundraise will be an integral part of your fundraising success. Check out how Visible can help you every step of the way below:

Visible Connect — Finding the right investors for your business can be tricky. Using Visible Connect, filter investors by different categories (like stage, check size, geography, focus, and more) to find the right investors for your business. Give it a try here .

Pitch Deck Sharing — Once you’ve built out your target list of investors, you can start sharing your pitch deck with them directly from Visible. You can customize your sharing settings (like email gated, password gated, etc.) and even add your own domain. Give it a try here .

Fundraising CRM — Our Fundraising CRM brings all of your data together. Set up tailored stages , custom fields , take notes, and track activity for different investors to help you build momentum in your raise. We’ll show how each individual investor is engaging with your Updates, Decks, and Dashboards. Give it a try here .

Everything that you need to know to start your own business. From business ideas to researching the competition.

Practical and real-world advice on how to run your business — from managing employees to keeping the books

Our best expert advice on how to grow your business — from attracting new customers to keeping existing customers happy and having the capital to do it.

Entrepreneurs and industry leaders share their best advice on how to take your company to the next level.

• Business Ideas
• Human Resources
• Business Financing
• Growth Studio
• Ask the Board

Looking for your local chamber?

Interested in partnering with us?

Run » business financing, 60 grants, loans and programs to benefit your small business.

When you know where to look, help for your small business is there for the taking.

Editor’s Note : Is your small business one of the best in America? Apply for our premier awards program for small businesses, the CO—100, today to get recognized and rewarded. One hundred businesses will be honored and one business will be awarded $25,000. Apply here !

Whether you’re starting a new small business or looking to grow the one you already own, finding funding can be a challenge for businesses of all sizes. If you’re looking for a small business loan or grant, CO— is here to help.

Each week, we update this list of loans, small business grants, or other opportunities to connect with programs and organizations that can help you with your business. Come back often to see the latest. And, if your organization has a program or grant you’d like to see listed here, email us at [email protected] .

If you’re not sure of the difference between a loan and a grant, check out our explainer here . You can also learn more about all funding options in our small business financing guide here .

Government grants

Begin your search for a grant from the federal government at Grants.gov . This government site offers the most comprehensive database of funds the government is going to give away. There are thousands of grants to apply for, with opportunities for companies from all backgrounds.

Keep in mind that not all assistance flows directly from the federal government to small businesses. Some funds are distributed to state and local governments and agencies, nonprofit organizations, and institutions of higher learning. These entities, in turn, distribute the funds or use them to provide technical or educational assistance on a local level.

In addition to the programs listed here, be sure to check with your state and local governments and use the resources listed below. When searching through grant and contracting options, note that you may qualify for more than one program.

As illustrated by the following sampling of grants, the assistance available to you from the government will vary, depending on your specific situation.

• The Blueprint Medtech Small Business Translator Grant. This is a government grant for small businesses working on creating medical devices to treat nervous system disorders. It supports activities like making prototype devices, safety testing, and clinical studies to get approval from the FDA. The grant is a cooperative program where the NIH helps plan and monitor the research. It also provides funding and access to experts for things like regulations, patents, and manufacturing. Small businesses with their device ideas or collaborations with manufacturers can apply for this grant to advance their projects. The next deadline to apply is September 27, 2024.
• Employee Retention Credit. The Employee Retention Credit (ERC), sometimes called the Employee Retention Tax Credit, is a stimulus program established by the CARES Act. This refundable tax credit functions as a grant that helps businesses impacted during the COVID-19 pandemic. Eligibility guidelines are available on the IRS website .
• Illinois Infrastructure Grants. In 2020, Governor Pritzker launched an initiative to improve Illinois' infrastructure. $3 billion of this was allocated for capital grants through the Department of Commerce and Economic Opportunity (DCEO) . These capital grants, part of Illinois' $45 billion infrastructure initiative, are designed to support various projects that benefit local communities and businesses. The DCEO maintains a transparent list of these grants, which can be either general or specific project grants. You can find more information about these grants on the GATA website .
• The Minnesota Emerging Entrepreneur Loan Program (ELP). ELP is an initiative aimed at supporting the growth of Minnesota businesses owned by minorities, low-income individuals, women, veterans, and persons with disabilities. The program provides grant funds to nonprofit lenders across the state, which in turn offer loans to startup and expanding businesses. These loans not only foster business development but also aim to create jobs for minority and low-income individuals, strengthen minority-owned enterprises, and boost economic growth in disadvantaged areas. To participate in the program, eligible businesses must apply through certified nonprofit lenders, with DEED assisting in lender identification if needed, and loans are subject to DEED's approval.
• National Institute of Health Grants . The National Institute of Health (NIH) is currently funding grant opportunities related to COVID-19 research. These grants are reserved for small businesses that develop and research biomedical technology. There are multiple grants available with deadlines throughout 2024 and beyond.
• NIDILRR's SBIR program . The SBIR program aims to support organizations to help advance technology and research, as well as support the social/economic benefits for the nation. The SBIR will be backing the National Institute on Disability, Independent Living, and Rehabilitation Research (NIDILRR) through the Administration for Community Living (ACL) to provide 10 grants that support the improvement of the lives of those with disabilities. The total grant funding is estimated to be $1 million, and an outline of the available grants under this program can be found on the ACL website.
• San Francisco Accessibility Grant. Small business owners in San Francisco can apply for a grant to enhance accessibility in their establishments. The grant can cover expenses like accessible equipment, construction to remove ADA barriers, CASp inspections, design services, and relevant permit fees, with a maximum grant amount of $10,000. Eligible businesses must be registered in San Francisco, have less than $2.5 million in gross revenue for a single location, and employ an average of 100 or fewer employees. The application process is fast, and applicants can expect a response within 15 days of submission. Upon approval, they will need to provide proof of payment and photos showcasing accessibility improvements.
• Small Business Innovation Research Program (SBIR) . The SBIR offers grants to small businesses so they can participate in federal research and development with the potential for commercialization. It’s a highly competitive awards-based program that helps businesses achieve scientific excellence and technological innovation. To qualify for SBIR grants, you must operate a for-profit company and satisfy other requirements.
• Small Business Technology Transfer Program (STTR) . Similar to SBIR, the STTR program focuses on funding research in the R&D arena. However, what separates the STTR is the requirement that the small business has a formal collaboration with a research institution. To qualify for STTR grants, you must operate a for-profit company and satisfy other requirements.
• Texas Enterprise Fund (TEF). The Texas Enterprise Fund (TEF) offers "deal-closing" grants to companies competing with out-of-state sites for new projects in Texas. These grants are based on performance, encouraging significant capital investment and job creation. Eligible companies must meet criteria related to job creation, capital investment, financial stability, and local support. Once approved, grantees sign contracts committing to job and wage targets, with clawback provisions in case of non-compliance. The application process includes a thorough screening, and unanimous support from top state officials is required for approval.
• U.S. Department of Agriculture Rural Development Business Programs. The USDA’s Rural Development Business Programs provide financial support and technical assistance to promote rural business growth. They offer loans, grants, and guarantees with the goal of enhancing economic opportunities and job creation in rural communities; deadlines and eligibility requirements vary by program.
• U.S. Department of Commerce Minority Business Development Agency (MBDA) . Targeted grants and loans designed to aid minority-owned businesses are offered throughout the year. Minority-owned businesses can find information about local MBDA Business Centers at MBDA.gov .
• U.S. Department of Education (DOE) Grants. The U.S. DOE has various grants available to small businesses in the education sector. Each grant has unique eligibility criteria, with some opportunities set aside for public schools, state agencies, or nonprofit organizations; however, others allow applications from for-profit private sector companies. Deadlines for currently available DOE grants run through September 12, 2024.
• U.S. Small Business Administration State Trade Expansion Program (STEP) . Intended to assist small businesses desiring to export product, this program distributes federal funds through state entities . Small businesses that meet the criteria set by each state can use the financial assistance to participate in foreign trade missions and shows, obtain entry to foreign markets, develop websites, and design international marketing products or campaigns.
• U.S. Economic Development Administration (EDA) . The EDA is part of the U.S. Department of Commerce and offers ongoing funding opportunities for projects that support regional and national economic development. Applicants can apply for a variety of rolling-basis EDA investments that fund projects in construction, non-construction, planning, technical assistance, research and evaluation, higher education, and more.

As you would expect, acceptance of free money from the government comes with a fair amount of paperwork. Applying for a grant can be time-consuming and technical. You want to make sure, therefore, that you are eligible before applying. In addition to the legal and administrative prerequisites, there are ongoing reporting and auditing requirements.

Government contract assistance

The federal government spends billions of dollars on goods and services each year. A lot of that money is spent through a competitive bidding process. Programs have been put in place to assist some small businesses with the process, allowing them a better chance to compete for those federal dollars.

• Service-Disabled Veteran-Owned Small Business Program . The federal government seeks to award at least 3% of all federal contracting dollars to veteran-owned businesses annually, so this program helps with meeting that target. This federal contracting program offers assistance to small business owners who are service-disabled veterans . Eligible small businesses must be over 50% owned/controlled by one or more service-disabled veterans, have day-to-day operations and long-term goals managed by at least one service-disabled veteran and have a service-connected disability.
• Women-Owned Small Business (WOSB) Federal Contracting Program . The federal government seeks to award at least 5% of federal contracting dollars to women-owned small businesses annually. Through this SBA program , the Office of Women’s Business Ownership provides support to women entrepreneurs by offering business training, counseling, federal contracts and access to credit and capital. Their goal is to offer equal opportunities for all women in business.
• 8(a) Business Development Program . The purpose of this program is to assist small businesses owned by socially and economically disadvantaged entities. This is achieved by limiting competition for certain government contracts to businesses participating in the 8(a) business development program. To participate a business must be certified as an 8(a) entity.
• HUBZone Program . This program aids businesses in underutilized business zones by making them more competitive in regard to some government contracts. Businesses that join the HUBZone program can compete for set-aside contracts as well as receive preference on others, including a 10% price evaluation preference in open contract competitions.

Natural Resource Sales Assistance Program

In addition to the billions of dollars spent purchasing goods and services, the federal government also sells large amounts of natural resources and surplus property. The SBA Natural Resource Sales Assistance Program sets aside a percentage of these goods for bidding by small businesses only. In addition, federal agencies sometimes divide surplus materials into smaller parcels, making it easier for small businesses to purchase. The five categories are:

• Timber and related forest products.
• Strategic materials.
• Royalty oil.
• Leases involving rights to minerals, coil, oil and gas.
• Surplus real and personal property.

The program also provides training for small businesses on government sales and leasing.

General small business grants

There are many nonprofit and corporate entities offering grants and other assistance to small businesses. Here are a few such programs that are open to qualifying small businesses in any industry:

• 500 Global Flagship Accelerator Program . Startups and small businesses seeking funding can do so on a rolling, year-round basis with the 500 Global Flagship Accelerator program . Since 2010, this program has offered businesses the opportunity for a four-month accelerator program based in San Francisco in addition to a $150,000 investment. Rules for applying can be found on the company's website.
• America’s Top Small Businesses 2024. The 2024 CO—100 America’s Top Small Businesses recognition program celebrates the achievements of 100 small and medium-sized U.S. companies, spotlighting their innovation and role in driving economic growth and community development. A total of ten businesses will be awarded $2,000 each, with one business receiving $25,000 as America’s Top Small Business of the Year. Recipients will also receive significant media coverage, access to industry experts, and exclusive networking opportunities to help promote their business and expansion potential. To qualify, businesses must be U.S.-based, in operation for over a year, and meet specific criteria on employee numbers and revenue. Applications can be submitted online until July 8, 2024, and mail-in applications must be postmarked by July 1, 2024.
• Awesome Foundation Grants. Each month, the Awesome Foundation awards grants of $1,000 to individuals and groups looking to fund various projects. The Awesome Foundation is made of 84 independently-run chapters, with members contributing to a micro-funding pool that goes towards grant projects. Though funding is not limited to businesses, startups, and small businesses have been among the recipients of the monthly grants. Applications are accepted on a rolling basis.
• Bizee Entrepreneur Grant . Bizee (formerly Incfile) offers two grants to support aspiring entrepreneurs and students. The "Young Entrepreneur Scholarship Grant" provides $2,500 to a high school senior, undergraduate, graduate, or trade school student in the U.S. with a GPA of 3.0 or higher and an interest in starting a business. The "Fresh Start Business Grant" offers $2,500 and Bizee's Gold plan for free to adult entrepreneurs (21 years or older) in the U.S. planning to start a new business or significantly grow an existing one. Though dates for the next round of funding are "coming soon," entrepreneurs can review eligibility and application criteria in the interim.
• Fast Break for Small Business. The Fast Break for Small Business grant program, in collaboration with the NBA, WNBA, and NBA G League, offers small business owners and entrepreneurs the chance to win a $10,000 grant and/or up to $500 in LegalZoom products and services. Awarding a monumental $3 million in total grants and services, the initiative, currently in its third run, has already aided over 3,150 small businesses. The application window closes on September 13, 2024, at 8:00 p.m. ET.
• GoFundMe Small Business Relief Fund . GoFundMe’s Small Business Relief Fund will match $500 grants to qualifying small businesses that have been negatively impacted by COVID-19 and raise at least $500 through a GoFundMe campaign. The fund is backed by GoFundMe and corporations like Intuit QuickBooks, Yelp, GoDaddy, and Bill.com. Small business owners with existing campaigns can add the hashtag #SmallBusinessRelief to their campaign and fill out this form to confirm their business.
• Intuit QuickBooks Grant Program. The QuickBooks Grant Program is offering $200,000 in funding for small businesses, awarding 20 U.S.-based small business owners $10,000 each, along with business mentorship resources to help drive their success. The program is one of several for Intuit’s Small Business Success Month , which recognizes and celebrates small businesses and provides tools, resources, and funding to fuel their growth. To be eligible, entrants must have been actively operating for a minimum of one year at the time they apply and must have less than 100 employees. Applications are accepted through June 30, 2024, at 11:59 pm PT.
• Skip Monthly Grants. Small business aggregator Skip offers monthly grants for U.S.-based small business owners and entrepreneurs; grants are typically set at $1,000, though the exact amount varies by Skip’s monthly YouTube revenue. To be considered, you must have a Skip account and add the monthly grant to your Funding Assistant, as well as be subscribed to Skip’s YouTube channel. Applications for July grants are expected to be announced shortly.
• Skip Instant Grants. Skip offers Instant Grants on a rolling basis, providing funding opportunities with shorter turnaround windows. These grants are announced a couple of days in advance and generally occur twice a month. Applicants are required to participate in Skip’s YouTube livestream during the selection process. Learn more about these ongoing funding opportunities by following Skip on social media.
• Small Business Digital Readiness Program. In partnership with Verizon, National ACE has developed a digital readiness program to help small business owners succeed in a digital world. The free online curriculum includes expert coaching, peer networking, and other resources to support your small business. Those who register for the program and take two courses are eligible for a $10,000 grant. This opportunity is rolling and you can learn more at the program’s webpage .
• Small Business Readiness for Resiliency Program. Small businesses often feel the effects of a natural disaster the hardest. It can be difficult when starting a business to suddenly have to raise money to repair a roof or attend to flood damage. To help offset some of these concerns and costs, the U.S. Chamber of Commerce Foundation and FedEx have teamed up to create the Small Business Readiness for Resiliency (R4R) Program. The program helps small businesses put plans in place to prepare for disaster and also provides immediate emergency funding when necessary. Businesses are asked to complete a four-step process to be eligible for funding opportunities.
• Walmart Spark Good Local Grants. Organizations can apply for the Walmart Spark Good Local Grants program provided by Walmart and Sam’s Club, which offers grants ranging from $250 to $5,000 to address the unique needs of local communities. Tax ID status determines eligibility, with 501(c)(3) charities, public entities, and educational institutions qualifying. Grant applications are accepted quarterly, with Q1 submissions being accepted through July 15; all organizations must be Deed verified and have a Spark Good account to apply.

Industry-specific and diversity small business grants and programs

Some small business grant programs are confined to a specific entrepreneur demographic or business profile and they often have an application process that is easier to navigate. This is a sample list, so be sure to check with nonprofits and large corporations in your geographic area or industry.

• 2024 Black Girl Ventures Pitch Program. The 2024 Black Girl Ventures Pitch Program is designed to support Black and Brown entrepreneurs from Los Angeles, Chicago, and NYC by offering coaching, a live crowdfunded pitch competition, and networking opportunities. To qualify, applicants must be revenue-generating, in good standing, and located in the city for which they are applying. The deadlines for applications are as follows: June 14 for Chicago applicants, October 9 for NYC applicants, and November 6 for Los Angeles applicants. Winners will receive cash prizes ranging from $5,000 to $15,000, as well as access to the BGV Connect Incubator and a new network of business owners and investors.
• Accion Opportunity Fund. The Accion Opportunity Fund grants small business loans ranging from $5,000-$250,000, along with educational resources, coaching, and support networks in both English and Spanish. This program offers mentorship programs, microloans, and a hubzone program for small business owners’ financial needs. Accion Opportunity Fund works with a clientele that is 90% diverse, has created and retained over 50,000 jobs, and has generated $1 billion in economic activity. Those interested in applying for a loan can do so here .
• Amazon’s Black Business Accelerator Program. If you're a seller in Amazon's store, you may be eligible for the Black Business Accelerator Program. Created to support Black entrepreneurs, the program offers financial support, mentorship, business advice, and promotional support. Eligible sellers will have access to free imaging services, cash grant opportunities, advertising credits, and money toward start-up costs. You can learn more about this opportunity at their website .
• Amazon Business Small Business Grant Program. Amazon Business’s third annual Small Business Grant Program is set to award over $250,000 this year to eligible U.S.-based small businesses. There will be one grand prize winner who will receive $25,000, along with four $20,000 finalists and 10 $15,000 semi-finalists. Grant recipients will also walk away with one year of free Business Prime membership, Amazon devices, and Amazon Basics products. Current Amazon Business customers with an annual revenue of $1 million or less are eligible to apply; applications are due on May 24, 2024, with winners announced on July 22, 2024.
• Amber Grant Foundation . With a simple goal of supporting women entrepreneurs, the Amber Grant Foundation was founded by WomensNet in 1998. The foundation awards a series of grants throughout the year, including the $10,000 Monthly Amber Grant, two $25,000 Annual Amber Grants, and $10,000 each quarter for The Startup Grant and The Non-Profit Grant, respectively. There are also 12 Business Category Grants — an additional $10,000 each month — with all eligible applications remaining active until the month of their specific category.
• America’s Seed Fund. America’s Seed Fund, sponsored by the National Science Foundation (NSF), offers up to $2 million for U.S.-based startups and small businesses that are developing innovative technology. Project pitches are accepted on a rolling basis, and official responses from NSF typically take one month.
• Beyond Open Small Business Grants. This competitive grant program supports diverse-owned small businesses in the Charlotte, North Carolina area, offering funds for capital assets such as equipment, technology, inventory, and real estate, with a total of $15 million being awarded across three rounds. In 2023, Foundation For The Carolinas selected 116 small businesses in Charlotte's Corridors of Opportunity, which “supports six underinvested areas in Charlotte,” to receive a total of $4.8 million in grants from the Beyond Open program's second round, aiming to enhance economic mobility. Those interested in the 2024 Beyond Open funding can subscribe to learn more ahead of the open application period beginning on August 5, 2024.
• Binc Foundation Emergency Financial Assistance. The Binc Foundation provides emergency financial assistance to bookstore owners, booksellers, and comic store employees and owners facing unforeseen financial needs. Eligibility criteria include specific employment durations and financial hardship resulting from qualifying life events. Binc's assistance process involves a confidential application and documentation verification, aiming to help individuals regain financial stability.
• BREAKTHROUGH Program. The BREAKTHROUGH Program , hosted by digitalundivided and sponsored by JPMorgan Chase & Co, promotes female entrepreneurship by providing $5,000 grants and extensive support to small business owners. The program offers valuable resources to female entrepreneurs, including virtual live sessions on business expansion and mentorship from industry leaders, along with opportunities to build community connections and increase visibility. Applicants must own a majority of a business registered for at least a year, with a minimum annual revenue of $50,000, and incorporate technology in their operations. Applications for the next cohort, taking place in Atlanta from August 6-22, 2024, must be submitted by July 14, 2024.
• Carhartt For the Love of Labor Grant. Carhartt, a popular workwear distributor, created the Love of Labor grant program to help connect workers with trade programs in their local communities during an unprecedented labor shortage. Awards will be distributed on a rolling basis to “like-minded organizations” that are dedicated to the education, training, and placement of workers into trade jobs. Organizations with interest in the program can apply by reaching out to Carhartt directly. Nominations are accepted as well.
• Casper Accelerate Grant Program. The Casper Association aims to support the adoption of blockchain technology via Casper, a scalable blockchain network. To support innovation within the blockchain industry, Casper has opened the Casper Accelerate Grant Program. Those who want to build apps to support infrastructure, end-user applications, and research innovation are invited to apply. This $25 million grant program has a rolling application deadline, so you can apply anytime here .
• Corporate Counsel Women of Color Entrepreneur Grant. Corporate Counsel Women of Color (CCWC) is offering five grants, each valued at $2,500, to support female entrepreneurs. To qualify, applicants must own a business that operates in the United States, has been in operation since January 1, 2020, and has generated over $25,000 in revenue since that date. The business must be a legal, for-profit entity, and the applicant needs to be at least 18 years old at the time of application submission. The review process is ongoing, with grants slated for distribution in January 2024 and January 2025.
• Etsy Emergency Relief Fund. If you’re an Etsy business owner, you may be qualified to apply for relief funding courtesy of a partnership with CERF+, a nonprofit organization dedicated to helping artists prepare for and recover from emergencies and disasters. The partnership was established in 2017, and both companies continue to provide up to $2,500 in funding through the grant program. To apply, you must have been a registered Etsy business for at least one year and have been affected by a natural disaster. This grant opportunity is rolling.
• Foundation for a Just Society Grants . Foundation for a Just Society offers grants to local, national, regional, and global organizations and networks that support the rights of women, girls, and LGBTQI individuals. Grants are issued four times each year (March, June, September, and November), with invitations for proposals extended two months prior.
• Galaxy Grants. Galaxy Grants is on a mission to support women and minority entrepreneurs with their small businesses by offering valuable resources, tools, funding, and knowledge. They are running a $3,750 Galaxy Grant Giveaway , sponsored by Hidden Star, a 501(c)(3) organization, with a quick 30-second entry process. The deadline to enter is June 30, 2024, and winners will be announced the following week. Plus, there's an opportunity to win for both you and a friend, as each of you could receive a $3,750 grant if your friend wins, subject to the Terms and Conditions.
• Giving Joy. Giving Joy is a charitable organization that empowers women across the world to dream big and create positive change in their communities through grants. These grants, ranging from $250 to $500, are available to those with businesses in any sector and can be used to start or expand businesses, nonprofits, non-governmental organizations, or community projects that focus on benefiting women, girls, and families. Any woman over 18 is encouraged to apply. Applications are accepted until September 30, 2024.
• HerRise MicroGrant. The HerRise MicroGrant offers financial aid to U.S.-registered businesses that are majority-owned by women of color, with a focus on businesses with innovative community solutions that are still struggling to obtain funding. Applications are reviewed monthly, with winners announced during the subsequent month's HerSuiteSpot First Friday Mixer. Nonprofits, franchises, direct sellers, authorized resellers, and independent consultants are ineligible to apply.
• Hivers and Strivers Investment Program. As an angel investment group, Hivers and Strivers works to provide capital to qualifying businesses. Specifically, the investment group funds projects submitted by veteran-owned and veteran-led businesses. Funding opportunities can range from $250,000 to $1 million. Those who qualify can apply for funding for a business idea on a rolling basis, but businesses reliant on government contracts are not eligible to apply.
• IFundWomen Universal Grant Application. This is a resource for female entrepreneurs seeking grants . Through partnerships with brands like Visa, Caress, and Comcast, IFundWomen has deployed over $170 million in grants to entrepreneurs. Applicants gain priority access to funding opportunities and resources within the IFundWomen community.
• Jennifer Easton Community Spirit Awards. The annual Jennifer Easton Community Spirit Awards provides $50,000 to four to six Native artists, recognizing their lifelong efforts to nurture and pass on their cultural traditions through arts such as storytelling, clothing design, and music. The annual award aims to empower artists as leaders within their communities, supporting cultural preservation and community wellness. Eligibility is exclusive to Native artists who are either enrolled members or can demonstrate lineal descent from a recognized tribe, and who have been active in their art for at least a decade. Nominations — accepted until July 8 — must be submitted by someone other than the artist.
• #MomsMeanBusiness. ZenBusiness, a company that helps others launch and run their own businesses, has created the #MomsMeanBusiness campaign to recognize the resilience of moms and celebrate their accomplishments. To help mothers take the first step toward entrepreneurship, ZenBusiness is covering business formation costs and will help entrepreneurs form an LCC, track expenses, secure a business name, and more. All mothers are eligible and costs will be covered for “every mom in America.” The program is rolling and you can sign up here .
• National Association for the Self-Employed (NASE) Growth Grants . According to its website, the NASE has distributed over $1,000,000 in grants to its members. Its growth grants provide up to $4,000 to assist with training, marketing, and more. You must be a member for 90 days before you are eligible to apply.
• NGLCC Community Impact Grant. The National LGBT Chamber of Commerce’s (NGLCC) Community Impact Grant Program , supported by the Grubhub Community Fund, offers financial aid to LGBTQ+-owned and allied restaurants, cafes, and bars serving food, with grants ranging from $5,000 to $25,000. Eligible applicants must be LGBTQ+-owned or LGBTQ+ ally-owned establishments that have not received two or more NGLCC Community Impact Grants in previous years. Applications have closed for the East and Central region; West region applications will be accepted until July 2, 2024.
• Patagonia Corporate Grant Program . Patagonia’s corporate grant program offers between $10,000 and $20,000 of funding to nonprofits with missions to protect and preserve the environment. Though grants are awarded by invitation only, Patagonia accepts recommendations for organizations that meet program criteria.
• Queer To Stay. The Queer to Stay: LGBTQ+ Business Preservation Initiative supports LGBTQ+ small businesses that serve as crucial community spaces, particularly for LGBTQ+ people of color, women, and transgender individuals. The initiative is a collaboration between the Human Rights Campaign (HRC) and SHOWTIME®, providing financial support to at least 25 businesses demonstrating financial need and community impact. Eligible businesses must be U.S.-based, for-profit entities that primarily serve the LGBTQ+ community and have been financially impacted by COVID-19. Applications for this year's initiative are open until 11:59:59 p.m. on August 31, 2024.
• RTC Women in Tech Fund. Rewriting The Code (RTC) works to support college and early-career women in tech by providing them with opportunities to help disrupt gender and racial inequality in the industry. The RTC Women in Tech Fund provides financial resources to women enrolled in undergraduate tech programs to help cover costs that may be an obstacle to education. There are three different grants available depending on each applicant’s specific financial needs. All applications are accepted on a rolling basis.
• StartOut Scholarship Program . StartOut offers scholarship opportunities to LGBTQ+ entrepreneurs who wish to participate in their Founder Program and become a Giving Member. The initiative provides a 12-month membership for those LGBTQ+ entrepreneurs who have been underrepresented, underserved, and underestimated within their community.
• The United States-Brazil Climate/Inclusive Education Grant Competition. The 100,000 Strong in the Americas Innovation Fund promotes educational partnerships between the United States and Brazil, focusing on study-abroad initiatives that support student accessibility, mobility, and engagement. The U.S.-Brazil Climate/Inclusive Education Grant Competition invites U.S. minority-serving institutions to collaborate with Brazilian educational bodies to develop initiatives centered on climate action and inclusive education. Proposals must outline clear implementation strategies and address student exchange challenges. Seven grants of up to $40,000 will be awarded; applications are due July 31, 2024.
• The Wish Local Empowerment Program. This program brought to you by the e-commerce brand, Wish, assists Black-owned small businesses by dedicating a $2 million fund to support approximately 4,000 Wish Local partners. Recipients can receive financial assistance ranging from $500 to $2000, with flexibility in fund allocation. Eligible businesses must meet criteria such as having a Black-owned business with 20 or fewer employees and an average annual revenue under $1 million. Successful applicants will also join Wish Local, gaining access to its consumer base through various partnership opportunities.

Additional resources

The programs listed above are a good start when it comes to grants and funding. You may find additional resources available by following the links below.

• Agricultural Justice Project (AJP) , a program offering free resources and guidance for owners of farms and food businesses.
• Challenge.Gov , part of the General Services Administration's Technology Transformation Services, aids federal agencies in utilizing prize competitions and crowdsourcing to advance their goals. Hosting over 1,300 challenges since 2010, Challenge.Gov facilitated 105 in 2021 alone, totaling a prize pool of over $60 million alongside non-monetary rewards.
• Community Development Financial Institutions (CDFI) Fund , a government agency that offers financial support to certified lenders serving low-income communities. The CDFI is broken up into several different program areas, including Native Initiatives that provide training and assistance to Native communities, and the Capital Housing Fund that delivers affordable housing for low-income communities.
• Fearless Fund , a venture capital firm that actively invests in businesses led by women of color across the United States. Concentrating on early-stage investments in various industries, the fund looks for companies at the Pre-seed, Seed, or Series A financing stages, offering up to $3 million in exchange for a minimum equity stake of 10%.
• Funding options for Black-owned businesses , including venture capital firms and programs offering financing to Black entrepreneurs.
• Funding options for LGBTQ+-owned businesses , including resource networks and organizations that offer grants to LGBTQ+ entrepreneurs and those from other underrepresented backgrounds.
• Funding options for Hispanic-owned businesses , including funding sources and organizations aimed at supporting Latinx and Hispanic entrepreneurs.
• Funding options for minority-owned businesses , including multiple grants, funding sources, and low-cost loans that are intended to help minority-owned businesses grow.
• Funding options for veteran-owned businesses , from government-backed programs to pitch competitions and business accelerators.
• Funding options for women-owned businesses , including ten programs, agencies and organizations that are helping women entrepreneurs be better represented in the ranks of American business owners.
• GrantsForWomen.org , an online directory that provides a comprehensive database of grants for women globally, along with valuable advice on securing grants and information on relevant events and workshops for female business owners. The grants featured in the directory are sourced from reputable organizations, foundations, and venture capital funds, covering both nonprofit organizations and for-profit businesses.
• Resources and funding opportunities for AAPI-owned businesses , including accelerator programs, grants for AAPI entrepreneurs, and networking groups.
• SBA Small Business Development Centers , which can help companies of all kinds locate additional funding opportunities at the national and local level.
• SCORE , which can assign a volunteer business mentor who can provide guidance on numerous topics, including funding and operations.
• Tory Burch Foundation Funding Finder , a tool for founders that provides personalized funding recommendations and resources based on their responses to a few questions about their business financials and aspirations.
• Warrior Rising , a national organization designed to turn Veterans (and their immediate families) into “vetrepreneurs” through business opportunities in the form of mentorship, funding, education, and training. Since its inception in 2015, the program has supported over 26,000 Veterans — more than 5,400 so far in 2024 alone — and helped 21 Veteran-run businesses achieve a $1 million valuation.

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

Follow us on Instagram for more expert tips & business owner stories.

Applications are open for the CO—100! Now is your chance to join an exclusive group of outstanding small businesses. Share your story with us — apply today .

CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here .

Get recognized. Get rewarded. Get $25K.

Is your small business one of the best in America? Apply for our premier awards program for small businesses, the CO—100, today to get recognized and rewarded. One hundred businesses will be honored and one business will be awarded $25,000.

More financing tips

How to use accounting software to generate accurate and timely financial reports, 20 funding options for black-owned businesses, what is alternative credit, and why does it matter for your smb.

By continuing on our website, you agree to our use of cookies for statistical and personalisation purposes. Know More

Welcome to CO—

Designed for business owners, CO— is a site that connects like minds and delivers actionable insights for next-level growth.

U.S. Chamber of Commerce 1615 H Street, NW Washington, DC 20062

Social links

Looking for local chamber, stay in touch.

How to Write a Business Plan: Your Step-by-Step Guide

So, you’ve got an idea and you want to start a business —great! Before you do anything else, like seek funding or build out a team, you'll need to know how to write a business plan. This plan will serve as the foundation of your company while also giving investors and future employees a clear idea of your purpose.

Below, Lauren Cobello, Founder and CEO of Leverage with Media PR , gives her best advice on how to make a business plan for your company.

Build your dream business with the help of a high-paying job—browse open jobs on The Muse »

What is a business plan, and when do you need one?

According to Cobello, a business plan is a document that contains the mission of the business and a brief overview of it, as well as the objectives, strategies, and financial plans of the founder. A business plan comes into play very early on in the process of starting a company—more or less before you do anything else.

“You should start a company with a business plan in mind—especially if you plan to get funding for the company,” Cobello says. “You’re going to need it.”

Whether that funding comes from a loan, an investor, or crowdsourcing, a business plan is imperative to secure the capital, says the U.S. Small Business Administration . Anyone who’s considering giving you money is going to want to review your business plan before doing so. That means before you head into any meeting, make sure you have physical copies of your business plan to share.

Different types of business plans

The four main types of business plans are:

Startup Business Plans

Internal business plans, strategic business plans, one-page business plans.

Let's break down each one:

If you're wondering how to write a business plan for a startup, Cobello has advice for you. Startup business plans are the most common type, she says, and they are a critical tool for new business ventures that want funding. A startup is defined as a company that’s in its first stages of operations, founded by an entrepreneur who has a product or service idea.

Most startups begin with very little money, so they need a strong business plan to convince family, friends, banks, and/or venture capitalists to invest in the new company.

Internal business plans “are for internal use only,” says Cobello. This kind of document is not public-facing, only company-facing, and it contains an outline of the company’s business strategy, financial goals and budgets, and performance data.

Internal business plans aren’t used to secure funding, but rather to set goals and get everyone working there tracking towards them.

As the name implies, strategic business plans are geared more towards strategy and they include an assessment of the current business landscape, notes Jérôme Côté, a Business Advisor at BDC Advisory Services .

Unlike a traditional business plan, Cobello adds, strategic plans include a SWOT analysis (which stands for strengths, weaknesses, opportunities, and threats) and an in-depth action plan for the next six to 12 months. Strategic plans are action-based and take into account the state of the company and the industry in which it exists.

Although a typical business plan falls between 15 to 30 pages, some companies opt for the much shorter One-Page Business Plan. A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you’ll make money).

A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage.

How to create a business plan in 7 steps

Every business plan is different, and the steps you take to complete yours will depend on what type and format you choose. That said, if you need a place to start and appreciate a roadmap, here’s what Cobello recommends:

1. Conduct your research

Before writing your business plan, you’ll want to do a thorough investigation of what’s out there. Who will be the competitors for your product or service? Who is included in the target market? What industry trends are you capitalizing on, or rebuking? You want to figure out where you sit in the market and what your company’s value propositions are. What makes you different—and better?

2. Define your purpose for the business plan

The purpose of your business plan will determine which kind of plan you choose to create. Are you trying to drum up funding, or get the company employees focused on specific goals? (For the former, you’d want a startup business plan, while an internal plan would satisfy the latter.) Also, consider your audience. An investment firm that sees hundreds of potential business plans a day may prefer to see a one-pager upfront and, if they’re interested, a longer plan later.

3. Write your company description

Every business plan needs a company description—aka a summary of the company’s purpose, what they do/offer, and what makes it unique. Company descriptions should be clear and concise, avoiding the use of jargon, Cobello says. Ideally, descriptions should be a few paragraphs at most.

4. Explain and show how the company will make money

A business plan should be centered around the company’s goals, and it should clearly explain how the company will generate revenue. To do this, Cobello recommends using actual numbers and details, as opposed to just projections.

For instance, if the company is already making money, show how much and at what cost (e.g. what was the net profit). If it hasn’t generated revenue yet, outline the plan for how it will—including what the product/service will cost to produce and how much it will cost the consumer.

5. Outline your marketing strategy

How will you promote the business? Through what channels will you be promoting it? How are you going to reach and appeal to your target market? The more specific and thorough you can be with your plans here, the better, Cobello says.

6. Explain how you’ll spend your funding

What will you do with the money you raise? What are the first steps you plan to take? As a founder, you want to instill confidence in your investors and show them that the instant you receive their money, you’ll be taking smart actions that grow the company.

7. Include supporting documents

Creating a business plan is in some ways akin to building a legal case, but for your business. “You want to tell a story, and to be as thorough as possible, while keeping your plan succinct, clear, interesting, and visually appealing,” Cobello says. “Supporting documents could include financial projects, a competitive analysis of the market you’re entering into, and even any licenses, patents, or permits you’ve secured.”

A business plan is an individualized document—it’s ultimately up to you what information to include and what story you tell. But above all, Cobello says, your business plan should have a clear focus and goal in mind, because everything else will build off this cornerstone.

“Many people don’t realize how important business plans are for the health of their company,” she says. “Set aside time to make this a priority for your business, and make sure to keep it updated as you grow.”

More From Forbes

5 ways to raise capital as a small business.

• Share to Facebook
• Share to Twitter
• Share to Linkedin

Proud family man, global traveler and creator of award-winning agencies Weberous and Generate Culture serving clients worldwide @rafaelromis

Are you looking to scale your small business?

When first starting out, you probably relied on bootstrapping or loans from friends and family. Now, your business is positioned to scale, but there’s one problem: You need more capital. If you’re looking for different ways to raise more capital for your small business, you’re not alone. In 2023, small businesses in the U.S. borrowed $52.4 billion from the Small Business Administration (SBA). That’s more than several countries’ GDPs and doesn't even account for other lenders' loans.

We've worked with over 300 small businesses, and I can tell you firsthand that bootstrapping does work, but it's much slower, and often speed to market is the key to success. That's why funding is so important.

What's interesting is that a lot of business owners don't consider all of the funding options they have available. Here are some you should think about:

Best High-Yield Savings Accounts Of 2024

Best 5% interest savings accounts of 2024, government grants.

In my opinion, one of the most underrated funding opportunities for small businesses is government grants. Unlike most loan options, government grants are awarded by the U.S. government and do not have to be paid back. However, they involve strict criteria for applicants, and it can be quite an extensive application process.

Even though it can take some time and a lot of paperwork, the payoff can be worth it if your application is accepted. The two main types of government grants are federal small-business grants and state or regional small-business grants.

Another lesser-known option is corporate small-business grants. A growing number of large companies with a philanthropic mission offer small-business grants to smaller companies that align with their vision and values. While most corporate grants are awarded to nonprofit organizations, there are some available to for-profit businesses.

Basic Business Loans

The simplest option to secure capital for your business is through a basic business loan.

SBA loans typically offer the best rates and terms for small-business loans. To qualify, you typically need to meet certain criteria, but if you don’t, there are many other lenders you can reach out to.

In recent years, as technology has advanced, digital lenders have grown as an alternative to traditional banks. The entire process is very quick, can be done completely online, and generally has a higher approval rate than traditional banks. The caveat is that they typically have higher APRs and more expensive rates overall, but it may be worth the trade-off.

Crowdfunding

One of the most unique funding opportunities of the 21st century is crowdfunding. There are thousands of incredible stories of businesses that rose to the top through a successful crowdfunding campaign. For example, a few years ago, one of our clients raised $3-plus million on the popular crowdfunding platform Kickstarter for their innovative luggage. With the right product and the right pitch, you could be the next one.

Crowdfunding is a unique way for you to not only raise capital to reach your business goals but also connect with like-minded people and potential customers. It’s a funding and marketing opportunity: With the right crowdfunding campaign, you could end up with thousands of new customers and millions in capital, all while reaching your growth goals.

Angel Investors

Another alternative to a traditional business loan is securing funding from an angel investor, an accredited business-savvy individual who invests their own money into small businesses.

Most angel investors operate alone, while some work together to form a fund, and they can be a great source of capital for your small business. They’re more likely to have a higher risk tolerance than traditional lenders, which can make all the difference when dealing with startups. The key here is to put together a great business plan and a solid pitch. This is so important that there are agencies specializing in just that.

Venture Capitalists

Venture capitalists (VCs) are similar to angel investors in that they are business-minded individuals with funding, looking to invest in small businesses.

However, venture capitalists typically operate as firms rather than individuals and often use other people’s money. These funds have far greater investment power than angel investors, as they invest with pooled money. This means they’re more risk-averse and usually want to invest in more mature and proven companies. VCs may also want more of a say in managing day-to-day operations in your business.

Bonus Tips To Remember When Raising Capital

If you’ve only ever raised your own money for your business, then trying to figure out how to raise outside funds for the first time can be intimidating. Here are a few tips to remember to increase your odds of securing funding for your business:

• Create a strong business plan. This includes everything from your financial figures to your operation strategy, risk management and exit strategy.

• Organize your business material for investors. Create a well-structured business plan that is easy to read. Don’t make an investor go to your website. Create several formats of your business plan (physical paperwork, PowerPoint, video, etc.).

• Center your pitch around your competitive edge. Show investors what makes you different from your competition. Think about your unique selling proposition.

• Focus on investors in your niche. Investors typically work within a niche just like you. Find the investors in your niche and pitch to them.

• Understand what each investor brings to the table. Some investors just loan money, while others help you operate and scale. Know the difference before you accept funding.

And possibly the most important tip is to be persistent. Many, if not most investors won’t respond to you at all. Don’t take it personally. Keep reaching out to investors even if you don’t get any bites. It may sound far-fetched, but the time and effort spent reaching out may literally be the deciding factor for the overall success of your business.

Forbes Agency Council is an invitation-only community for executives in successful public relations, media strategy, creative and advertising agencies. Do I qualify?

• Editorial Standards
• Reprints & Permissions

40 Proven Ways to Fund Your Small Business

Angelique O'Rourke

22 min. read

Updated October 27, 2023

When it comes to funding, there isn’t a one-size-fits-all approach. Aside from every business having unique funding needs, each funding option differs in availability, terms, funding amounts, and eligibility criteria. We’ve compiled a list from a variety of places to help you research and narrow down the best option for your business.

Determine how much funding you’ll need

Estimating your startup costs is not only a  necessary element  of your financial plan, but it can help you determine how much  funding you really need . This can immediately give you a jumpstart on your financing search and narrow down potential options simply based on the amount they offer. 

Additionally, having a cohesive financial plan in place can improve your chances of actually being approved for funding. It showcases forward-thinking on your part and for traditional loans, investors, and any other funds that require a business plan or pitch, it’s necessary to even be considered. 

Once you’ve planned out how much you’ll need, it’s time to survey your options.

• Traditional loans

One of the most widely available options is a traditional business loan. And while the process and requirements may be fairly similar no matter the lender, there are different loan options you’ll want to consider.

1. SBA loans

Small Business Administration loans  are often one of the first places that small business owners in the United States think of looking for a loan, and they’re right to think this way. This can be a great option if you fit the criteria. 

If you’re unsure if you qualify,  take a look at this article  for details on the SBA Loan program. Or if you’ve applied and had your application rejected,  check out this article  for ways to improve your chances of being approved if you reapply.

2. Bank loans

Bank loans may be the most obvious solution for business owners looking for funding. While lending standards have become stricter over time, there are often funds set aside strictly for small businesses depending on the lender. 

Shop around and look for lenders that you can actually talk to a real person when applying. This helps ensure that you’re filling out the necessary paperwork and provides insight into what you can do to  improve your chances  of being approved. You’ll typically have better luck chatting with a real person at a local bank or credit union, so do your research and chat with multiple institutions to find the best fit.

3. Small Business Lending Fund 

This is a dedicated government fund that provides capital for small business loans through specific lenders in each U.S. state. The primary benefit of this program is that it’s designed to grow the economy. 

The more a bank increases its loan output the less it pays for funding. Giving access to loans to more businesses and potentially passing along better rates or terms to business owners. You can review which banks are participating and download an application through the  Treasury website , which is updated on a monthly basis as banks enter or exit the program. 

Entrepreneurs can also look into various  grants  to support their budding idea. These are often difficult to acquire and include very specific eligibility requirements, but that doesn’t mean they can’t be a viable funding option. Here’s a list of places to find that perfect grant for your business.

4. National Association for the Self-Employed Grants

Since 2006 the  National Association for the Self-Employed  has given out $650,000 in grant money. Applicants can receive up to $4,000 and must use the money for marketing, advertising, hiring employees, or expanding facilities. You do have to be a member of the association to apply, which costs $120 a year.

5. Nav’s Small Business Grant

Nav is an online marketplace that matches small business owners with their best business financing options by using credit and finance data. Each quarter, Nav gives away 3 grants, with the top grant winner receiving $10,000. This is to provide relief to small businesses that are struggling right now and hopefully empower them to reach their next level of success.

The application is easy. Simply explain your business, the challenges you are facing, and how the grant money would help push you in the right direction. All details about Nav’s Small Business Grant can be found  here .

6. Small Business Innovation Research Program

One of the more lucrative federal grant programs is the  Small Business Innovation Research Program , which helps businesses with research and development projects.

The program, which is coordinated through the U.S. Small Business Administration, offers several kinds of grants: open, closed, future, and solicitation listing. You’ll want to research which option is best for your company.

Expect a lengthy qualification process and, if selected, a strict measurement plan to ensure the money is going to good use.

7. Amber Grant for Women

Female business owners can take advantage of the  Amber Grant . This grant was launched in 1998 by Womennet to help entrepreneurs succeed. Each month, one woman is selected for a $500 grant. At the end of the year, one of the winners is selected for a $2,000 grant.

It’s a simple application process. You just have to answer a few short-answer questions through an online form and pay a $7 application fee.

8. National Institute of Health Funding 

The  SBIR/STTR grants  provided by the National Institute of Health Funding are going to apply fairly specifically to technology or research-based businesses. If you fall within an eligible business-type, you can speak to a program manager before applying to discuss the technology or study you plan on using the grant for. This gives you an idea of what the institute is interested in and willing to fund, as well as guidance on how to develop your application.

9. Government Small Business Grants

Possibly the most widely available grants are provided by the U.S. government. However, these are typically industry-specific, meaning that you’ll need to look into what’s available for your business type. The SBA offers a convenient area on their website to  conduct research  about which may be right for you.

• Fintech funding options

Financial technology (fintech) lenders are institutions that provide loans or lines of credit as an alternative to traditional bank or government loans. More and more of these funding options are becoming available, and typically provide similar loan amounts and lending terms. 

That being said, you’ll want to check out a lenders track record, services, application requirements, and customer support, as well as loan terms, to find the best option. Here are just a few of the platforms currently available.

10. Kabbage 

If you run an eCommerce business through the likes of eBay or Amazon,  Kabbage  is a great option for you. Overlooking the traditional collateral and credit score criteria associated with most loans, Kabbage is more concerned with your status as an online seller. You still need well-documented accounting data and  cash flow statements , but the rest is determined by customer feedback, selling history, turnover, and other digital metrics. 

So as long as you have a solid history of selling online and have your financial documentation in order, you can easily be approved for unsecured cash advancements in just a few minutes.

11. OnDeck 

Similar to Kabbage,  OnDeck  awards loans based on alternative metrics regarding the health of your business. In this case, they look at the annual revenue of your business to determine eligibility and help tailor the loan and payments around your needs. They also give you the opportunity to apply for either a loan or a line of credit depending on your circumstances, meaning that you can potentially stick with one lender for your funding needs. 

12. PayPal 

PayPal  offers both working capital and traditional business loans and will lend based on an existing business’s earnings on its site. The primary limitation of this service is that you need to currently make sales using PayPal and/or operate using a PayPal Business account in order to apply. But if you already utilize PayPal, funding through them is incredibly fast, requires no collateral, and doesn’t penalize you for a low credit score.

One drawback is that a loan through PayPal does not build your business credit, meaning that you won’t be helping your chances of getting a different business loan later on. But if you want to stay within the PayPal ecosystem, it will improve your chances of getting more funding through additional PayPal loans.

Instead of serving as a direct lender,  Lendio  instead acts as a financing aggregate platform. Working with a network of over 300 lenders, including Kabbage and OnDeck, they match users with the best option for their needs. So rather than reviewing every single fintech organization and filling out different applications, you can simply review hundreds at once and apply with a simple form.

The only drawback of using a middleman like Lendio is that your funds will likely take longer to get to you. But if you’re looking for long-term funding that also provides excellent customer service, Lendio is worth checking out.

• Crowdfunding sites

On crowdfunding websites, you create promotional materials and set up a page for your business or project to accept financial backing from those who visit the site. Each site varies a little, so be sure to  read the fine print  as you decide which is right for you.

14. Indiegogo

Another option for crowdfunding is  Indiegogo . Similar to other crowdfunding sites, you create a profile, tell your story, set a fundraising goal, and ask for donations. However, Indiegogo’s fee structure is a little different—it’s not an all-or-nothing scenario. Indiegogo takes nine percent of your earnings if you don’t reach your goal, and four percent of your earnings if you do reach it. Here’s the  fee structure.  

15. Kickstarter 

Kickstarter  is the most popular crowdfunding site out there; since its inception in 2009, the site has raised $1.7 billion dollars, which funded 85,000 projects.

Like most crowdfunding sites, business owners create a profile page that outlines the business and sets a fundraising goal. Those who donate are promised some sort of reward, like being the first to try out the new product.

However, it’s an  all-or-nothing scenario on Kickstarter.  In other words, you have to hit your fundraising goal to keep the money. If you fall short, your donors get their money back. Even if you do reach your goal, Kickstarter takes five percent as a fee. Learn more about  Kickstarter’s guidelines here.

Kickstarter has the name recognition, but it also has a lot of campaigns. Everything from art projects to business ventures are actively competing for funding, so you’ll want to evaluate the site to make sure it’s the right fit for your business.

Causes  has been designed specifically to fund social, political, and cultural initiatives, making it perfect for nonprofit businesses. It’s entirely free to join and also acts as somewhat of a social platform for like-minded people looking to improve the world at large. That means this platform isn’t just useful for acquiring funding but is a great way to connect with donors, partners, and potentially even future employees. 

17. Patreon

If you operate a digital media business such as a podcast, web series, or blog, a monthly subscription-based model may be more appropriate for you. And luckily,  Patreon  was designed as a crowdfunding platform specifically for digital creators. Instead of a single upfront investment or financing round, Patreon lets you establish specific tiers at different price-points for your followers to subscribe to. 

You can offer exclusive content, merch, access, and other items that grow in cost or quality, basically allowing you to conduct user testing continuously. It’s a great platform to build and directly connect with your audience while still operating across other social channels outside your Patreon. 

Just make sure you keep to a schedule or your subscribers may end up finding somewhere else to spend their money.

18. Fundable

Think of  Fundable  as a cross between Kickstarter and traditional venture capital funding. Instead of just posting a single product or service, you promote your entire business on the site, geared toward attracting funding from venture capitalists and other accredited investors. You still post timeline updates and an overall funding goal, but you also need to showcase your overall business plan. 

It basically acts as an ongoing pitch, but with a bit of additional investment on your part. Unlike most crowdsourcing sites that typically take out a fee, Fundable charges a monthly payment to stay on the platform. Additionally, it acts as an all-or-nothing funding system, meaning that you need to reach your goal or lose it all.

• Peer-to-Peer Lending

It’s not always easy to  explain your business concept to a banker,  but explaining it to your peers is a whole different concept. A lot of startups chose to borrow money from their peers, but rather than asking your college buddy to cough up a few grand, try these websites instead.

19. Prosper

Prosper  is a well-known peer-to-peer lending site. It has the name recognition in the field, with $3 billion given out in loans.

With this resource, you’re given an interest rate based on an evaluation. You create a loan listing so investors can see what you’re all about and what you need the money for. Once an investor commits to funding your loan, you’ll get the cash and set up a payment plan. Rates start around seven percent but can go as high as 35 percent.

20. LendingClub

If you’ve been in business for a few years, but need some additional capital, check out  LendingClub . With LendingClub, loans are financed through investors. You need two years of business history, at least $75,000 in annual sales, and have a good personal credit score. There’s a five-year cap to pay back your loan, and as with any loan, you’ll face interest rates and additional fees.

21. Upstart

Upstart  is designed to help younger entrepreneurs get funding with little to no credit or financial history. It does so through an underwriting model, that utilizes AI and nontraditional data, to review and evaluate based on things like education level, job history, place of residence, etc. This means that their requirements are far less strict and that eligibility is based solely on forward momentum and potential.

While the loans themselves cap out at $50,000, using Upstart can be a great method to consolidate high-interest debt or fund expansions to your business. 

22. Funding Circle

Funding Circle  connects your small business with investors. Loans range from $25,000 to $500,000; you’ll speak with a loan manager who will walk you through the process, and you could get funding within two weeks.

Interest rates vary from six to 20 percent, depending on how quickly you pay back the loan. Plus, there are origination fees and late fees if you miss a payment. Check out the rates and fees before you apply.

23. Peerform

Peerform  is designed to be beneficial for both investors and small businesses. The online portfolio builder helps investors create unique and diversified portfolios specific to their financial goals and willingness to take on risks. For borrowers that have between a 600-700 credit score, it offers incredibly competitive rates, as low as six percent, on short-term loans up to $25,000. 

While not the strongest choice to fund a full-on business expansion or startup, it can be a great way for a relatively healthy business to pay off debt, make a large purchase, or cover operational costs for a time.

• Venture capital

If you have a strong initial interest in your business and a roadmap for long-term growth, you may want to pursue venture capital for funding. You can  utilize the SBA investment finder  to find potential investors or utilize one of the following platforms to pitch your business and connect with venture capitalists. 

24. FundersClub

FundersClub  was one of the earliest online venture capitalist crowdfunding platforms originally emerging from the YCombinator back in 2012. For businesses, you can either be solely funded by specific investors or be grouped in with similar businesses as a diversified fund to invest in. 

While it’s a great way to gain exposure to hundreds of accredited investors, actually getting on the platform itself is fairly difficult. They only accept around 2% of applicants and even recommend that your business be recommended by a founder before applying. But with a strong pitch and the willingness to make connections, it’s still a viable option for small businesses.

25. MicroVentures

MicroVentures  is the other original online venture capital platform with a long history of making funding available to early-stage startups. While they originally only offered traditional angel investment and venture capital options to accredited investors, they’ve adapted their platform to make specific investment opportunities available to anyone. This expansion is especially great for business owners pursuing funding as it simply means there are more people looking to invest.

Now, this open nature does have its drawbacks as there are simply so many businesses seeking investment on the site. This can make it easy to get lost in the shuffle if you don’t have a solid pitch or way to standout. But as far as an additional way to potentially seek out investors, MicroVentures is worth exploring even if it’s simply expanding your options.

• Angel investment

An  angel investor  is typically an individual or group that have spare cash available and are willing to provide capital for a start-up or expansion. The primary benefit of  having an angel investor fund your business  is that it is far less risky than a loan or venture capital as you typically don’t have to repay. Instead, an angel is looking for some sort of share in your business and is willing to look further ahead on seeing any sort of return. 

So if you’re willing to relinquish some control and want to seek investment from an angel investor, here are some great options to do so.

26. Gust 

Gust  operates as both an investment matching network and a tool to make your business more attractive to investors. No matter the stage of your startup, Gust helps you organize specific documentation, set benchmarks, identify gaps in your team, and a number of other methods to grow and improve your business. All with the intent of designing it to be an easy yes for angel investors.

27. CircleUp

If you own and operate a company focused on retail and consumer products,  CircleUp  is the perfect platform for you to seek funding. Utilizing their proprietary Helio machine learning platform, CircleUp seeks to provide funding to as many early-stage entrepreneurs as possible. 

Taking publicly available, partner, and private data (provided by entrepreneurs), it aggregates the information into a digestible scenario that represents the potential for a business. It even helps CircleUp identify business opportunities around an emerging trend, which can be useful for business owners that may not be aware of how to leverage it.

Offering both credit and equity financing, CircleUp is a diverse option that’s great for those seeking angel investment that also provides insight they can leverage to improve their business.

28. Angel Capital Association

Think of the  Angel Capital Association  (ACA) as the hub for a network of angel investment organizations across North America. Less of a virtual platform and more of an opportunity to connect with and build relationships with over 18,000 angel investors, the ACA was designed and currently operates by bringing in angel groups over individual investors. 

While it may be more traditional in nature, it’s still a great method for researching and learning from investors across various industries. It can be a great tool for growing your business even if you don’t end up seeking out funding in the end.

Microloans are simply just smaller business loans. In many ways, these smaller funding options kicked off the explosion of fintech organizations who eventually grew to offer traditional loans as well as microloans. While there are typically specific limitations in regards to how much you can get, a microloan may be a great option if you need a bit of capital to fund specific operational costs, expansions, or projects. 

Accion  operates as a global nonprofit with the primary goal of helping small businesses secure worthwhile funding partnerships. Aside from loans, they also provide advisory services and continuously lead the charge as thought leaders for financial inclusion.

Additionally, they offer funding opportunities focused on growing organizations that work to accelerate global financial inclusion. While it’s less of a traditional microlender, it does ensure that any investment or partnerships follow a specific methodology and goal. If that matches up with your organizations’ mission, Accion may be a great option for you.

30. LiftFund

LiftFund  runs the gambit in regards to loans. Not only do they offer microloans, but traditional and SBA options as well. This makes the range in loan amounts extremely vast, with the lowest option being just $500 and the maximum being up to one million. It acts as a great option for businesses that are either extremely new or don’t make enough monthly revenue to pursue traditional loan options. 

The only drawback is that LiftFund operates similarly to local SBA or credit union locations. This simply means that if they don’t operate in your area you’ll be out of luck and need to find a different option.

Kiva  is a great example of an online portal for microloans. The application is simple and the terms are great, with US small businesses being able to take out loans of up to $15,000 at a 0% interest rate. You can invite friends and family to help fund you and then set up a 30-day fundraiser to attract funding from the Kiva lending community. 

Once you receive funding, you then have up to 3-years to repay. But you can utilize Kiva as a marketing platform to help build your customer base and accelerate your road to repayment.

32. Opportunity Fund

The  Opportunity Fund  operates strictly as a microloan provider for small businesses owned by low-and-moderate-income immigrants, people of color, and women. Their goal as an organization is to promote growth in low-income communities by helping entrepreneurs that traditionally have difficulty acquiring funding. If you fall within any of these categories and have had difficulty acquiring a bank loan or even alternative funding, a microloan from the Opportunity Fund may be a better option.

• Pitch Competitions

Looking for a fun way to get your hands on some business capital? Enter a contest. There are several contests that happen throughout the year. If you miss the deadline this year, bookmark the site for a shot next year.

33. Hatch Pitch

If you’re creating a product or service based on innovative technology, you can pitch your idea during Hatch Pitch, an event that takes place each year at the South by Southwest (SXSW) event. You have four minutes to pitch your startup to judges. Learn more about how it works on the  Hatch Pitch site.

34. TechCrunch Disrupt

Traditionally an in-person event,  Disrupt  is going all digital this year. Sponsored by TechCrunch, this event is all about hearing from tech founders and networking to build your business. You’ll have opportunities to interact with individuals from similar industries, pitch your business to investors and founders, and gain insight from the best and the brightest from Silicon Valley.

While not necessarily a traditional pitch competition, this event provides a great opportunity for emerging businesses to make their mark and connect with founders. 

35. WebSummit PITCH

PITCH  provides an opportunity for startups that have received less than $3 million in funding to battle it out and pitch their businesses. The only criteria to actually apply for the competition is that you must be part of the WebSummit Startup Program before applying, which you can apply to  here . The primary benefit of being one of the 135 startups to participate is that even if you aren’t the winner, you get a ton of exposure to lenders and investors.

It also ensures that you’ve refined your pitch and get an incredible amount of practice presenting it in front of investors. There are some hoops to jump through to get involved, but it’s well worth the effort if you’re an early-stage startup.

• Bootstrapping methods

Bootstrapping: the time-honored tradition of doing basically any and everything you can think of to find money to use in your business. While any of the other funding options on this list are viable, you’ll likely find yourself doing some variation of bootstrapping to prepare your business. Here’s what you should be considering.

36. Friends and family

This is a tried and true method—the people in your life often believe in you and will put their money where their mouth is. Here are some suggestions on navigating  fundraising from friends and family. 

37. Business line of credit

This is an option for those who need cash quickly and have fairly good credit.  Check out this article  for more information.

38. Service or product presales

I have a friend who helped pay for massage school by pre-selling massages—she simply offered her massage services for  after  she would become an LMT (licensed massage therapist), in exchange for a contribution to her tuition. Once she graduated and got her licensure, those who contributed had a “pre-paid” massage waiting for them, which they could schedule at their convenience.

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

As we’ve written about on Bplans previously, many people have  a side hustle  until they are able to go full time in the direction of their own business. Renting a room in your house using a popular site like  Airbnb  is a great example.

Angelique is a skilled writer, editor, and social media specialist, as well as an actor and model with a demonstrated history of theater, film, commercial and print work.

Table of Contents

• Determine how much funding you’ll need

Related Articles

6 Min. Read

Friends and Family Financing Guide for Small Businesses

The Four Tiers of Small Business Financing

5 Min. Read

8 Alternative Funding Options for Small Businesses

Which Funding Option Should You Choose?

The Bplans Newsletter

The Bplans Weekly

Subscribe now for weekly advice and free downloadable resources to help start and grow your business.

We care about your privacy. See our privacy policy .

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

This device is too small

If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.

• Small Business

How I Secured $25,000 of Funding for My Startup

Published on June 28, 2024

By: Jordi Lippe-McGraw

• I was seeking about $20,000 to launch my business of travel-inspired diaper bags.
• Community-based lender Greater Newark Enterprises Corporation offered me the funds as part of an SBA loan program.
• It's important to have a solid business plan (even if you're just starting out) to secure funding.

Starting a business is no small feat, especially when your dream requires substantial capital to lift off the ground. I embarked upon creating a travel-inspired bag line called PAK Rêve, but like many budding entrepreneurs, I hit a financial roadblock: I needed funds -- about $22,000 -- to place my first large order. After navigating the tricky waters of start-up financing, I discovered a path less trodden but incredibly rewarding: Securing a loan through a community-based lender.

Finding the right lender

These setbacks were disheartening, but they steered me toward the Small Business Administration (SBA) loan program . Even with the SBA's backing, the approvals were tough to come by until I discovered Greater Newark Enterprises Corporation (GNEC).

GNEC is not your ordinary lender. As a Community Development Financial Institution, its approach is holistic -- it looks beyond credit scores to understand the entrepreneur's full story. Its mission is to assist entrepreneurs in becoming economically stable, focusing on overcoming barriers to funding, especially those faced by minority groups.

What particularly aligned with my needs was GNEC's Women Entrepreneur Fund. This program supports small businesses that are at least 51% women-owned, offering loans between $1,000 and $30,000 at reduced interest rates of 5.99%. The eligibility stress test at a rate of 10.99% ensures that applicants are resilient enough financially to endure economic fluctuations.

Business Credit Card Comparison

Consider these business credit cards that offer a convenient and efficient way to separate personal and business expenses, simplifying accounting and tax reporting.

Additionally, business cards can provide valuable perks such as rewards points, cashback, and expense tracking tools, enhancing financial management and the potential to help save money in the long run.

The application process

Applying for a loan through Greater Newark Enterprises Corporation was a detailed and meticulous process, reflecting the serious commitment both the lender and borrower make. The application started online, a convenient but thorough procedure that required various pieces of critical business and personal information.

The online application was the first step in formalizing my funding request. It required the basic details of my business, such as the business name, the type of business, and the Industry NAICS Code, which classifies the business according to the North American Industry Classification System. This information helps lenders understand the sector in which the company operates and assess market risks associated with that sector.

Beyond the basic business information, the application process required several more pieces of documentation:

• Financial worksheet: This detailed my business's financial status, including assets, liabilities, revenue streams, and other financial metrics that provide a snapshot of the business's health and potential for growth.
• Business plan: To secure a loan from GNEC, I needed to present a solid business plan and financial projections. The process involved detailing every aspect of my business, from market analysis to operational strategies and precise financial forecasts. This rigorous exercise did more than just prepare me for the loan application; it equipped me with a clearer vision of managing and scaling my business efficiently.
• Credit score authorization: I had to permit GNEC to pull my credit report. Credit scores are often critical in lending decisions, but GNEC's approach considers more than just this number.
• Government-issued ID: I needed a copy of a government-issued ID to verify my identity, which is a standard requirement across most financial transactions.

This is not an exhaustive list of everything I provided, but it gives a general idea. Each lender's requirements can vary slightly, and navigating through them can be time-consuming and sometimes daunting. The application process is not just a formality but a significant step in building a financial relationship. It requires attention to detail and accuracy in providing all requested information and documentation.

Tips on securing community-based lending for your business

Navigating the world of small business financing can be overwhelming. Here are some practical steps to secure community-based lending:

• Research local CDFIs: Community Development Financial Institutions (CDFIs) offer targeted financial services to under-served markets and populations. They are invaluable resources for entrepreneurs who might not qualify for traditional loans.
• Prepare a detailed business plan: This is your roadmap and pitch rolled into one. It should compellingly articulate your business idea, market potential, operational strategy, and detailed financial projections.
• Explore the SBA's resources: The Small Business Administration is a treasure trove of information and support. You can use tools like their lender match program, which works as follows:
• Describe your needs: Spend about five minutes answering questions about your business.
• Get matched in two days: You'll receive a curated list of lenders interested in your proposal.
• Talk to lenders: Discuss rates, terms, and conditions, and compare what each lender offers.
• Apply for a loan: Once you choose a lender, submit your application and necessary paperwork.

Additionally, you can google "SBA community-based lenders" in your area or check the SBA's list of microlenders to find potential financing sources.

For those standing where I once was, remember that community-based lenders like GNEC can offer more than just money in your business bank account -- they provide a network of support tailored to help minority and women entrepreneurs thrive.

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.

Our Research Expert

Jordi Lippe-McGraw is a freelance personal finance writer who has appeared in publications such as Forbes, The Wall Street Journal, TODAY, and Saving for College. In addition to personal finance, Jordi has a passion for travel. She's visited all 7 continents and over 55 countries, writing for outlets such as Travel + Leisure and Conde Nast Traveler.

Share this page

We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.

Related Articles

By: Cole Tretheway | Published on June 7, 2024

By: Lyle Daly | Published on June 5, 2024

By: Christy Bieber | Published on June 5, 2024

By: Lyle Daly | Published on June 4, 2024

The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.

Copyright © 2018 - 2024 The Ascent. All rights reserved.

• Get Started

Home >> #realtalk Blog >> Manage a business >> How to Start a Busin…

How to Start a Business in Ohio: Your Guide to Being a Buckeye Entrepreneur

By Homebase Team

If you’re dreaming of starting a new business, Ohio might be the perfect place for you to make that dream come true. Ranked by Finfare as the best place to start a business, Ohio is only one of six states with a 0% corporate tax rate (however, you still need to pay payroll taxes ). That’s one reason why the state boasts a 78% first year survival rate and a 53% five year survival rate for new businesses. Business insurance is crucial in protecting a company’s assets and ensuring financial stability.

Ranked seventh among US states in terms of size of economy, Ohio has the third largest manufacturing sector in the nation and nearly $1 billion in state investments in small businesses .

Given its business-friendly policies, diverse workforce, and strong economy, Ohio is a prime location to start a small business. As a business owner, it is essential to ensure compliance with Ohio’s business regulations, including name uniqueness, registered agent designation, and fictitious name registration.

But what goes into starting a business in Ohio? If you’ve got questions, we’ve got answers! Here’s our guide to starting a business in the Buckeye State!

Get your team in sync with our easy-to-use, all-in-one employee app.

6 steps for starting a small business in Ohio

If you’ve got a burning desire to start a new business, but you’re not sure where to start, then follow these six steps for starting a small business in Ohio. As a business owner, it is crucial to ensure the uniqueness of your business name, designate a registered agent, and file necessary registrations with the state authorities. Additionally, understanding and complying with business taxes in Ohio is essential for choosing the right legal business structure and staying on top of filing requirements and tax obligations.

Step 1: Solidify your business idea.

If you’re unsure about the kind of small business you want to start, think about the type of activities you find enjoyable, what you excel at, and what you enjoy doing. Consider what your business will do and who you’ll serve. Ideally, your business idea will resonate with your own interests, fulfill a market demand, and have the potential to be profitable.

For example, if you’re an avid home cook but lack the skills to do it professionally, a restaurant might not be the best fit for you. Instead, you could consider establishing a cookware store that caters to other home cooks.

Step 2:  Do your research!

Conducting market research is an essential step when starting any business. Market research will give you valuable insights into the feasibility and profitability of your business.

There are two types of research you can do: primary and secondary. Primary research is collected directly from prospective customers using focus groups, surveys, and/or interviews. Secondary research, on the other hand, gathers key data from external sources such as government census, research reports, and studies conducted by other businesses in your field.

While market research might seem time-consuming and potentially costly, the information it turns up will likely justify the time and expense. Research can validate your business idea in terms of demand and profitability, and it can help you understand your potential customers. 

A rmed with the right insights, you’ll be able to market your business and close sales faster and easier when you understand your customers and how your business can meet their needs.

When starting a business in Ohio, it’s a good idea to focus your market research on your target audience. If you’re targeting a specific city, focus your research on that location. If you’re looking at the state level, compare and contrast research results across the state.

Ultimately, market research will provide a solid foundation for developing your business and help you make smarter business decisions.

Step 3:  Write a business plan.

Once you’ve validated your business idea with market research, the next step is to develop a business plan.

A good business plan outlines your business model, goals, and the steps needed to accomplish them. Despite what many people think, a business plan isn’t only for those seeking funding; refining the business concept, identifying obstacles, and developing a clear understanding of how to attract and convert customers is beneficial to any business at any stage.

A comprehensive business plan will include:

• An executive summary of the business strategy.  
• A company overview that addresses key questions about your business.  
• A market analysis summarizing your market research.  
• A section describing your company mission, goals, and objectives.  
• A description of your products or services.  
• A go-to market strategy detailing your unique selling proposition and promotional tactics.  
• A financial strategy that includes a proposed budget and projected financial statements for five years, as well as any prospective funding needs. 

Step 4:  Finance your business

With a business plan written, it’s time to put it into action. And that likely means finding a way to finance it.

Initial start-up costs can vary from a few thousand to several hundred thousand dollars, with the average cost to launch and operate a small business for the first year being around $40,000.

However, don’t let the costs discourage you! Small businesses have many financing options available to them, some of which are low- or no-cost to obtain. Self-financing or bootstrapping, which involves using personal funds, is certainly one approach. However, this puts all the financial risk on you, which can be challenging if your business needs a lot of capital to get started.

Although competitive, small business grants also offer funding that doesn’t need to be repaid, allowing you to progress further with fewer dollars. However, they can be difficult to obtain. Consider taking small business loans or lines of credit, but keep in mind that you’ll need a thoroughly documented business strategy and personal financial statements when applying.

Be sure to explore Small Business Administration (SBA) loan programs, which provide lower interest rates and extended terms compared to traditional loans.

Step 5:  Conduct an Ohio business entity search.

Your business name is a crucial part of your business, serving as the initial impression of your business. However, before you settle on the name, you’ll need to perform a business entity search for different types of business entities such as LLCs, corporations, and partnerships.  This will determine if a business exists already with an identical name. Visit the Ohio government website to obtain licensing requirements and access checklists for different industry categories. Remember, it’s best to choose a business name that adheres to state regulations to guarantee legal protection and public transparency.

You may also think about using a trade name, which acts as a pseudonym for your business. For instance, you might register your business under the name XYZ Parties, Inc., but your trade name is simply XYZ Parties. To make a positive first impression, you’ll want your business to have a name that’s brief and memorable—and a trade name allows you to do that.

Step 6:  Register your business.

Once you find a name, you’re almost ready to make your dream a reality. Now it’s time to choose a business structure that accurately reflects your preferred tax responsibilities, daily operations, personal risk, and legal obligations.

Here’s a list of common business structures to kickstart your exploration:

Sole Proprietorship: A sole proprietorship combines the identity of the owner and the business. This makes the owner personally liable for business debts, so exercise caution. Partnerships: Ideal for businesses with multiple owners, these require a partnership agreement and offer limited liability for business debts of the LLP.

LLCs: Owned by one or more entities, these limit personal liability for business debts and are relatively straightforward to start. A limited liability company also allows you to elect how to be taxed, potentially minimizing double taxation of income.

C ooperatives: Cooperatives function to benefit their users and span various industries such as healthcare, retail, restaurants, and agriculture.

Corporations: More common in larger companies due to their legal and tax complexities, some small businesses can also benefit from this tax structure.

S Corporations: These operate like a corporation, but the flow-through of income and losses is sent through to shareholders to help you avoid double taxation on corporate income.

Be sure to research each type of business so that you choose the one that best fits for your small business. Consider the taxes you may pay on a federal level (remember, no corporate income tax in Ohio!) and the legal risks you may want to avoid.

Keep in mind that, regardless of the structure, some businesses in Ohio may be required to collect sales tax, with the sales tax rate and oversight of sales and use taxes managed by the Ohio Department of Taxation.

For businesses with employees or specific business structures, you will need to apply for a Federal Tax ID (EIN) through the Internal Revenue Service.

Lastly, always remember to consult a lawyer or accountant to ensure your chosen business structure is optimal for your business.

How to incorporate in Ohio

Owning your own business in Ohio can be a rewarding endeavor, but it requires careful planning and adherence to state regulations. Business registration and licensing requirements can vary across states, and Ohio involves several unique steps. You might need to apply for a trade name and file Articles of Incorporation with the state, depending on your business structure.

Here are the main steps for incorporating a business in Ohio:

• Verify Business License Requirements: Check all registration and licensing requirements with the Ohio Secretary of State to ensure you are complying with all regulations. Consult with relevant local government bodies and industry associations for more specific information and guidance.
• Register Your Business: Register your business with the Ohio Secretary of State, making sure to complete the necessary paperwork and pay any fees associated with your business registration. For detailed checklists and information on different industry categories, visit the Ohio government website.
• Obtain an Employer Identification Number (EIN): Get an EIN from the IRS. This number is crucial for federal tax purposes and is typically required to open a business bank account. Additionally, you’ll need to register your business with the Ohio Department of Taxation to obtain any necessary state tax IDs.
• Acquire Relevant Licenses and Permits: Depending on your business type, you may need to obtain specific licenses and permits from both state and local governments.
• Obtain the Appropriate Insurance: Ohio law requires the purchase of workers’ compensation insurance if you plan to hire employees. Other types of insurance, such as general liability insurance, should also be considered. If you’re unsure about your insurance needs, it’s advisable to consult with a legal expert.

How Homebase can help you start a small business in Ohio

Starting a new small business is no easy feat. If you want to start your business off on the right foot, you need the best small business tools available.

That’s why Homebase provides a comprehensive suite of tools designed to support your business at every phase. As your team grows, enjoy the convenience of effortless scheduling and time tracking. When it’s time to compensate your team, Homebase manages your payroll with just a few clicks, calculating PTO and ensuring you stay compliant and up-to-date with Ohio’s requirements.

Best of all, Homebase integrates with many of the most popular business software, streamlining business operations. Homebase delivers everything a new small business needs and will scale up as your business grows. Give Homebase a try for free!

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

Related posts

June 28, 2024

How to Start a Business in Texas: The Ultimate Guide

They say location is everything, and that rings true when it comes to small business incorporation. Texas is a prime…

June 27, 2024

How to Start a Business in PA: Turning Your Passion into Profit

You’ve done your due diligence and have done all of the research to develop a viable business idea. You’ve got…

June 26, 2024

How to Start a Small Business in 2024 in 7 Actionable Steps

If you’ve considered opening a small business, we’ve got a good feeling that 2024 is your year. Despite worries over…

How to Start a Construction Business in 8 Easy Steps

Being able to build something from the ground up is an incredible skill: a skill you can monetize into your…

How to Start a Coffee Business in 10 Steps

Does the thought of running your own business make you jittery with excitement? How about going to work every day…

How to Start a Catering Business in 10 Steps

There are a lot of reasons to take a love of cooking down the path of entrepreneurship with a catering…

Subscribe to our newsletter

Looking for ways to stay up to date on employment laws and small business news?

Homebase makes managing hourly work easier for over 100,000 local businesses. With free employee scheduling , time tracking , and team communication , managers and employees can spend less time on paperwork and more time on growing their business.

• Hiring & onboarding
• Team communication
• Employee happiness
• HR & compliance
• Integrations
• Food & beverage
• Beauty & wellness
• Medical & veterinary
• Home & repair
• Hospitality & leisure
• Education & caregiving
• Contact sales
• Become a Partner
• Careers – We’re hiring!
• #realtalk Blog

Canada's bold plan to make housing more affordable is showing signs of working — and could be a model for the US

• Canada faces a severe housing-affordability crisis, with home values doubling since 2011.
• Last year, the federal government launched the Housing Accelerator Fund to boost home construction.
• The fund has helped incentivize looser land-use policies and other measures to increase home supply.

Canada is facing a housing-affordability crisis even more severe than the US's housing woes. But its federal government is starting to aggressively throw its weight behind fixing the home shortage.

Like the American federal government, Canada's national government doesn't have a lot of control over housing policy. Instead, provincial and municipal governments create land-use policies and control building and demand-side subsidies that shape the housing landscape.

Despite the federal government's limited control over housing policy, it's gotten a lot of the blame for skyrocketing costs, said Mike Moffatt, a senior director at the Smart Prosperity Institute at the University of Ottawa. That public sentiment pushed officials in Ottawa to warm to a more hands-on approach. "Canadians just want to be able to afford a home — they don't really care about the intricacies of constitutional law," Moffatt said.

So last year, the federal government launched an initiative — the Housing Accelerator Fund — that incentivizes local governments to legalize denser housing construction, including by mass transit, and otherwise stimulate more home building. In exchange, Prime Minister Justin Trudeau and his Liberal Party have opened up billions of dollars in infrastructure funding — from water to transit — to support that new housing.

The program pushes provinces and cities to create more pro-housing policies, including ending single-family zoning, loosening restrictions on how tall and close together residential buildings can be, opening up government land for housing, and eliminating parking mandates. The federal government first made deals directly with all the country's major cities, which the government estimates will allow 750,000 more homes to be permitted than otherwise would have been.

In April, Trudeau announced an additional $5 billion in infrastructure grants for provinces and territories that implement pro-housing policies, including legalizing "missing-middle" homes. Those include medium-density housing like duplexes, triplexes, and small apartment buildings. The most recent push is part of Trudeau's larger housing plan, which aims to get 3.9 million new homes built by 2031 .

Overall, the federal push has already been quite successful in changing the housing-policy landscape across the country, Moffatt said. For example, as a result of their deals with the government, all of the major cities now allow at least four units to be built on single-family lots. Certain provinces, such as British Columbia, have been much more willing to push pro-housing policies. Local governments in places like Ontario and Alberta have put up more of a fight. However, the approach creates some political cover for policymakers facing antihousing constituencies.

Related stories

"Uptake hasn't been universal, but overall it's been quite strong," Moffatt said. "We have seen some municipal changes that, even 20 months ago, I would have said were highly, highly unlikely."

But just because denser housing is legal doesn't mean it will get built. Building missing-middle housing and other more-affordable homes needs to be attractive to developers. And with home-construction costs way up, that's a steeper ask, said Matti Siemiatycki, who heads the Infrastructure Institute at the University of Toronto's School of Cities. "With the rising interest rates, with rising construction costs, a lot of the product that used to be financed is now becoming much harder," he said.

City governments have long been "biased towards homeowners and not towards renters," Moshe Lander, a Concordia University economist, told Business Insider late last year , and support policies that limit home building and keep home values elevated.

Like in the US, the housing-affordability crisis in Canada is driven by a lack of housing and rising demand. Over the past several years, an influx of immigrants , rampant investor speculation, and rapidly rising construction costs have also sent prices up. The average home value in Canada has more than doubled since 2011 . Rents are up more than 20% over the past two years. And a ballooning number of Canadians are spending more than they can afford on housing.

At this point, most of Canada's housing landscape looks like California's supply-starved and deeply unaffordable market.

"The difference is that California makes up about 12% or 13% of the United States, whereas Ontario and BC combined are over half," Moffatt said. "Half to two-thirds of the country is unaffordable."

Siemiatycki said there had been a "subtle but noticeable change" in how Canadians view residential density. Many homeowners who previously opposed densification are starting to realize that "even if it's not them that rising prices and skyrocketing impact, it might be their children, or their colleagues, or their elders," he said.

Pro-housing policies are increasingly popular across Canada's ideological spectrum. The federal opposition leader, Pierre Poilievre of the Conservative Party, says Trudeau's government hasn't gone far enough and has proposed his own plan , which would require cities to increase the number of new homes built by 15% each year or lose out on federal grant money. It would also impose a fine on cities that tolerate "NIMBY" — the antidevelopment "not in my backyard" philosophy — opposition to housing construction.

Under President Joe Biden's 2021 Infrastructure Investment and Jobs Act, the US federal government is providing states and cities across the country with hundreds of billions of dollars in funding for transportation and other infrastructure projects. Some American fans of Canada's Housing Accelerator Fund suggest it could be a model for US efforts to incentivize denser and more abundant housing construction.

Correction — July 3, 2024: An earlier version of this story misspelled the names of Moshe Lander and Mike Moffatt.

Watch: Millions of homes could flood the US housing market thanks to boomers

• Main content

Salesforce shareholders reject compensation plan for CEO, other top executives

• Medium Text

Sign up here.

Reporting by Harshita Mary Varghese and Urvi Dugar in Bengaluru; Editing by Alan Barona

Our Standards: The Thomson Reuters Trust Principles. New Tab , opens new tab

Business Chevron

EU asks Amazon for more info on Digital Services Act compliance

The European Commission said on Friday it had requesting Amazon provide more information on the measures the U.S. e-commerce giant has taken to comply with its Digital Services Act (DSA) obligations.

• Share full article

Advertisement

Supported by

What Happens to Biden’s Student Loan Repayment Plan Now?

More than eight million borrowers are enrolled in the income-driven plan known as SAVE. The Education Department is assessing the rulings.

By Tara Siegel Bernard

President Biden’s new student loan repayment plan was hobbled on Monday after two federal judges in Kansas and Missouri issued separate rulings that temporarily blocked some of the plan’s benefits, leaving questions about its fate.

The preliminary injunctions, which suspend parts of the program known as SAVE, leave millions of borrowers in limbo until lawsuits filed by two groups of Republican-led states challenging the legality of the plan are decided.

That means the Biden administration cannot reduce borrowers’ monthly bills by as much as half starting July 1, as had been scheduled, and it must pause debt forgiveness to SAVE enrollees. The administration has canceled $5.5 billion in debt for more than 414,000 borrowers through the plan, which opened in August.

If you’re among the eight million borrowers making payments through SAVE — the Saving on a Valuable Education plan — you probably have many questions. Here’s what we know so far, though the Education Department has yet to release its official guidance.

Let’s back up for a minute. What does SAVE do?

Like the income-driven repayment plans that came before it, the SAVE program ties borrowers’ monthly payments to their income and household size. After payments are made for a certain period of years, generally 20 or 25, any remaining debt is canceled.

But the SAVE plan — which replaced the Revised Pay as You Earn program, or REPAYE — is more generous than its predecessor plans in several ways.

Ask us your questions about the SAVE student loan repayment plan.

We are having trouble retrieving the article content.

Please enable JavaScript in your browser settings.

Thank you for your patience while we verify access. If you are in Reader mode please exit and  log into  your Times account, or  subscribe  for all of The Times.

Thank you for your patience while we verify access.

Already a subscriber?  Log in .

Want all of The Times?  Subscribe .