The previous section on existing investors, set out what money the business had so far and who has already invested.
This next section, the funding requirements section, explains how much money the business now needs, when is it needed, and what the business plans to do with it.
In your business plan, it’s important to describe how you intend to get your products and services in front of potential clients. As you pinpoint the steps you’re going to take to promote your products, you’ll need to mention the budget you’ll need to implement your strategies.
Related Article: How Turning a Hobby Into a Business Affects Your Taxes How will you sell the products you’re building?
Whether you’re planning to open a shop that makes the best coffee around or you want to sell eco-friendly office supplies, you’ll need to explain why your business is necessary and how it’ll differ from its competitors. It provides investors, lenders and potential partners with an understanding of your company’s structure and its goals.
If you’re trying to create one, check out 10 key components of a business plan.
Related Article: 15 Ways Startups Can Raise Capital Following your market analysis, your business plan will outline the way that your organization will be set up.
You’ll introduce your company managers and summarize their skills and primary job responsibilities.
If you want to, you can create a diagram that maps out your chain of command.
Don’t forget to indicate whether your business will operate as a partnership, a sole proprietorship or a business with a different ownership structure.