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Planning the Business Plans for Funding

Updated on August 25, 2015


When you have a great idea for a new business, it’s easy to get in a hurry to find financing. After all, you can’t do much without the money.  That’s exactly why it’s so important to write to the readers which in this case are investors. It’s a lesson you learned in school when writing English papers, but all the rules seem to go out the window when it’s time to write the business plan.


In other words, you develop the appropriate sections of the business plan but they don’t seem to be well connected and are full of hype. The funding plan is more like a tack-on section than part of a comprehensive plan for a business.  This is not going to appeal to serious investors like angel investors or equity partners. The words you choose to describe the business need to be thoughtful and reflect the seriousness of your plan. You may have a wonderful new product or an innovative service to offer, but if it’s presented as hype the chances of getting funding are slim.

Balancing Professionalism and Excitement


A business plan has to accomplish a lot in terms of conveying not only the business information, but conveying it with the right tone and the right choice of words. That’s why the plan should be written keeping the potential funders in mind. The writing must appeal to the type of funders you plan on attracting which requires professionalism. The plan must also be motivating which requires excitement.


In other words, the funders you want to appeal to must find the wording appealing. If you want to attract venture capital or angel investors for startup funding then you need to have a solid plan that leaves no confusion as to the product or service, the marketing plan, plans for the first year of operation and so on. The writing cannot be dull or boring, but it must avoid being flippant or reckless. Promising “world shattering” results or “instant success” won’t get you venture capital or any other type of funding.

Shining Through


You are an entrepreneur looking for startup funding for a long term venture. You are not a salesperson looking to make a quick buck. You could certainly write a business plan either way, but guess which one will be funded? Wild promises and unsubstantiated claims will not attract equity partners or get you approved for business loans for that matter.


What needs to shine through in business plans is the fact you have a good business idea and can back up your new business with well defined goals, strategies and objectives. The professionalism should shine through from the first page and keep on shining until the financing plan is presented.

Don’t Skip the Details

Another mistake that entrepreneurs make when developing their business plans is skipping the details. In the excitement of seeing the business begin to unfold in the plan, it’s easy to begin condensing information so the plan can get busy working for you. But it’s not going to work too hard because investors are only going to consider the complete plans presented, and your plan won’t qualify.  The investor is  going to believe you didn’t bother to think through your business plan and what does that say about your commitment to the venture?


A plan needs to contain all of the essential and detailed information an investor needs to make a decision about funding. If you have a business plan that you can’t seem to get funded then you may need to work on the language and the details in the plan. If you haven’t started writing then just remember that skipping details will get your plan skipped too.

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    • Hello, hello, profile image

      Hello, hello, 

      7 years ago from London, UK

      Very good points and very helptful

    • Paul Profitt profile image

      Paul Profitt 

      7 years ago from England

      A few years ago I did a BTEC in Business and Finance. Although I passed this course with a overall merit grade.

      I can honestly say that it did not teach me anything about starting a business that I didn't already know.

      I believe that a true entrepreneur will always take risks. Which is the reason why many of the most successful ones. never bother with bank loan, business plans and the like.


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