Create a funding plan
The first step in securing funding is to draft a business plan. Whether you are starting a business or looking to grow your existing business, your business plan is the key document that guides your future operations. It also makes your business goals clear to potential investors or lenders and explains how you are going to spend your invested or borrowed money (i.e. your financial strategy).
Your overall business plan should include a detailed funding plan that explains:
- how much money will be required
- when the money will be required
- where the money will be sourced
- what the money will be used for
- when debts will be paid back
- when investors can expect to see returns.
Try to identify all the likely costs involved in your business:
- start-up capital (e.g. office equipment, plant and machinery, building costs, shop fittings, licences, permits, insurance, bond or premises costs)
- operating capital (e.g. salaries/wages, rent, expenses, supplies, utilities, advertising/marketing, interest repayments, depreciation)
- contingency funds - to survive rough periods until your business becomes profitable.
Carefully evaluate your business idea. Having a thorough understanding of its strengths and limitations will help define your financial requirements and identify your most likely sources of funding. We strongly recommend you review your plan with your accountant or business adviser.
- Use our 7 steps to business success to assess the viability of your business.
- Read our market research kit to find key market and industry information, which you can use to develop or enhance your business plan.
- Learn more about working with business advisers.
- Check to see if you have all the skills for running a business.
- Find out how to calculate your costs when starting a business.