The principle
Explain the customer problem, product or service, target market, operating model, management, and competitive position. Describe the specific financing request, how funds will be used, and what changes after the investment. Connect the narrative to a budget and forecast rather than treating the financial section as a separate exercise.
Put it into practice
Support assumptions with customer evidence, actual operating results, supplier quotes, or relevant market research. State what is known and what remains uncertain. For an expansion, distinguish current business performance from the new project. For an acquisition, explain transition responsibilities and how the combined business will generate cash.
What people often miss
A lender needs a repayment case, not only a growth story. Show what happens if sales start later or costs rise. Avoid generic market-size figures that never connect to obtainable customers. Keep versions current and ensure the requested amount, dates, and financial assumptions agree across the plan, application, and supporting documents.
Your next-step checklist
- Clear use of funds and project outcomes
- Evidence for commercial assumptions
- Integrated financial forecast
- Downside plan and consistent application details
Crack this combination.
What should connect the business plan to the financing request?
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Sources & further reading
This file draws on the following references. Product availability and requirements must be confirmed with the provider.
Levr: writing a business plan