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How To Write the Funding Request for Your Business Plan

What goes into the funding request, parts of the funding request, important points to remember when writing your request, frequently asked questions (faqs).

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A business plan contains many sections, and if you plan to seek funding for your business, you will need to include the funding request section. The good news is that this section of your business plan is only needed if you plan to ask for outside business funding. If you're not seeking financial help, you can leave it out of your business plan. There are a variety of  ways to fund your business  without debt or investors. Below, we'll cover how to write the funding request section of your business plan.

Key Takeaways

  • The funding request section of your business plan is required if you plan to seek funding from a lender or investors.
  • You'll want to include information on the business, your current financial situation, how the money will be used, and more.
  • Tailor each funding request to the specific funding source, and make sure you ask for enough money to keep your business going.

The funding request section provides information on your future financial plans, such as when and how much money you might need. You will also include the possible sources you could consider for securing your funds, such as loans or crowdfunding. Later, you can update this section when you need outside funding again for business growth.

An Outline of the Business

Yes, you've done this already in past sections, but you want to give potential lenders and investors a recap of your business. In some cases, you might simply share the funding request section so you need to have your business details such as what you provide, information about your target market, your structure (i.e. LLC), owners' and members' information (for partnerships and corporations), and any successes you've had to date in your business.

Current Financial Situation

Again, you've provided some financial information in the financial data section , but it doesn't hurt to summarize. If you're submitting just the funding request, you'll need this information to help financial sources understand your money situation.

Provide financial details such as income and cash flow statements, and balance sheets in your funding request section.

Offer your projected financial information as well. If you're asking for a loan for which you'll be offering collateral, include information about the asset. If the business had debt, outline your plan for paying it off. Finally, share how you'll pay the loan or what sort of return on investment (ROI) investors can expect by investing in your business.

How Much Money Do You Need Now and in the Future?

Indicate what type of funding you're asking for such as a loan or investment. Outline what you need now and what you might need in the future as far as five years out. 

How Will the Funds Be Used?

Detail how you'll be using the money, whether it's for inventory, paying a debt, buying equipment, hiring help, and more. If you plan to use the money for several things, highlight each and how much money will go to each.

Most financial sources would rather invest in things that grow a thriving business than things that pay for debt or overhead expenses. 

Current and Future Financial Plans

Current and future financial plans include items such as loan repayment schedules or plans to sell the business. If you're getting a loan, outline your plans for repayment (although most lenders will have their own schedules). If you have plans to sell the business, let the lender know that and how it will affect them. Other issues to consider are relocation (if you move) or a buyout. Finally, let investors know how they can exit the deal, such as cashing out (and how long before they can do that).

You're asking for money, so you need to always be professional and know your business inside and out. Here are some other things to keep in mind:

  • Tailor your funding request to each financial source : Lenders and investors need different information, such as loan repayment versus ROI, so create different reports for each. 
  • Keep your funding sources in mind : Each resource will have different questions and concerns. Do a little research so you can address them in your report.
  • Ask for enough to keep your business going : Don't be stingy, as you don't want your business to fail from a lack of money. At the same time, don't be greedy, asking for more than you need. 

How do you request funding for a nonprofit?

Most nonprofits seek funding in the form of grants. Write a grant proposal that includes information on the project or organization, preliminary budget needs, and more. Be sure to format it with a cover letter, proposal summary, the introduction of the organization, problem statement, objectives, methods, evaluation, future funding needs, and the budget.

What are three methods of funding?

Grants and scholarships, equity financing, and debt financing are the main three methods of funding for small businesses . Grants and scholarships do not need to be repaid and are often best for nonprofit organizations. Equity financing is when you receive money in exchange for ownership and profits. Debt financing is when you borrow money that needs to be repaid.

Want to read more content like this?  Sign up  for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!

Small Business Administration. " Fund Your Business ."

Congressional Research Service. " How To Develop and Write a Grant Proposal ."

Library of Congress Research Guides. " Types of Financing ."

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Write the Funding Request Section of Your Business Plan

Startup Fundraising Checklist

Free Startup Fundraising Checklist

Aayushi Mistry

  • December 12, 2023

Write the Funding Request Section of Your Business Plan

While writing a business plan to seek funding, you must be clear about what needs to be written under the section where you would request funding. This is an important and essential section of your business plan.

What Is the Funding Request?

A funding request section of your business plan allows you to ask for the required fund. While writing the request, you always have to mention the timeline in which you will utilize the funds. Usually, this timeline is up to the next 5 years from the request.

The funding request may differ on the age of your company. If your company is only a start-up, it will have to provide more details than any older company. Generally, any business up to its 7th year is called a startup company. Although this criterion may differ with respect to location and industry.

Step-by-Step Guide to Writing the Funding Request of Your Business Plan

Before you start writing your requests, be clear about your requirements. And, in the same line, be very clear explaining it. Your readers want you to get to the point. So, they can make accurate decisions just in time. Moreover, it will also save you a lot of time and effort.

Once the facts and figures are drawn (accurately), you need to draft them properly into your business plan. And you have to be very careful and precise while doing it.

So ideally, you need to figure out your requirements. And then put it into the context of the business plan.

So, How to derive your funding requirements?

Deriving funding requirements get a little overwhelming. But if you take it one step at a time, it starts getting easier.

First, determine what you need money for

It could be for hiring new staff, getting new equipment, or starting your business at a new location . Just be very clear with the goals. Then list down the requirements and the required fund for it. In the end, sum it up. If you want funds for recovering your debts, explain all your debts in detail.

Now, It Is Time to Know How Much Amount Can You Get on Your Own.

  • Calculate the financial resources: Look out for your saved capital in cash as well as in personal assets. Other than that, see if you can gather the funds from friends and family.
  • Grants and subsidies: Check if your company is eligible for any government grants and subsidies. If yes, apply for it and add the amount. Calculate and find the difference between the required amount and the amount you can already put together. And that will be the amount you will be needing from the third party, investors, or from the bank. Once you have the right fund requirement at hand, list out the investors, moneylenders, and loans who can provide you with the sum.

Now, Let’s Start Writing Your Funding Request

1. Provide Business Information

Yes, you still have to give this brief even though you have already explained it in detail. No, it does not get redundant-It does not have to be. In fact, you can take it up as an opportunity to give a little recap to your potential prospects and moneylenders.

Moreover, sometimes, you might have to only send the funding request section and not the entire business plan. In such cases, such information comes handy.

So, here’s what you will have to explain in the funding request section of your business plan-

  • Target Market
  • Your business structure like LTD, LLC, or more
  • Brief about your product/service
  • Partners involved
  • Business heir, if there exists.

2. Mention the Current Financial Situation

You might have provided some financial information in the financial section. But, you have to add some figures here anyway. Not only will make it contextual, but even easier to have a clear picture in one place.

Here are some financial details that you will have to include in this section:

  • Quarterly as well as yearly cash inflow and outflow
  • Balance sheets
  • P&L statement
  • Expected financial condition in the upcoming quarter and year
  • Include the list of assets and their ownership details if you are asking loan from the bank
  • If your business is in debt, explain the situation in the detail and a brief plan for paying it.
  • Mention how much return on investment can they expect
  • In the end, mention how will you pay off the loan or transfer the ownership of the business

3. Announce How Much Funds Do You Need?

When you explain the situation in brief and have all the facts and figures put aside, narrow it down to your requirements. Mention how much money you need.

4. Discuss Briefly How Will You Use the Money?

Here, you have to narrow down what you need the money for and how you are going to use it. Just list down the details and put the figure for it- so much like how you do your billing. If they are taking the money for multiple things, highlight every detail.

5. Dive Deep into Current and Future Financial Planning

You must have explained a little about the inflow and outflow in the financial section. But over here, you have to get into the details like-

  • If you are getting a loan, outline your timelines for payments.
  • If you are looking forward to selling, mention how it will affect the investors.
  • And then, finally, mention the exit strategy . Your exit strategy includes how you will transfer the business ownership at the end.
  • You only have to add the funding request if only you want the funding from outside. If you don’t want to raise your funds from a third party, then you don’t have to include them in your business plan.
  • Your investors would like to invest in your business if only it is thriving or promising. They are less likely to lend money if you are in debt.
  • You see, you are asking for money. So don’t take this section casually. Know your business inside out and only involve people who know everything about your business.
  • Be as specific about your requirements and the funding that you require.
  • If you are planning to send it to different investors, tailor your funding request according to the reader.
  • All your sources have different mindsets and different funding criteria. Be very specific about it. Do detailed research before starting to write your funding request.
  • Don’t hesitate while asking for the funds. Be open and ask just as much as your business really requires. But at the same time, don’t be greedy.

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Learn the basics of funding

Do you really need funding.

Not every business needs to pursue external funding. To know for sure, you must consider why you want funding, how you’ll manage it, and what you intend to do with it.

How much funding do you need?

Lenders and investors want to know how much money you’re asking for. If you don’t have a clear number in mind—you’ll struggle to get or use any funding.

Is it hard to get funding for a business?

Securing funding can be challenging, as it depends on factors like the business's stage, financial health, and the investor's appetite for risk. A strong pitch, business plan, and network can improve your chances.

What is the best funding option for a business?

The best funding source depends on factors like the stage of your business, creditworthiness, and industry. Typically some combination of self-funding, friends and family financing, and a business loan is your best option.

What questions will investors ask?

You need to prepare for what investors will ask. If you don’t have answers to questions like ‘What problem do you solve?’ or ‘How will you make money’ then you’ll struggle to nail your pitch.

Can you get a business loan with bad credit?

It is possible to get a loan even with bad credit. However, the terms, total, and application process will likely be unfavorable. Luckily, there are things you can do to improve your chances of being approved.

Should you borrow from friends and family?

Friends and family financing is one of the most common funding methods for new businesses. To ensure there are no problems, you need to treat it like a loan or other more formal funding source.

What makes a great pitch?

A great pitch tells a real story, cuts out unnecessary details, demonstrates traction, and is backed up with facts and data.

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Funding your business FAQ

What is the best source of funding for small businesses?

The best source of funding for your specific business depends on numerous factors like the stage of your business, creditworthiness, and industry. Typically some combination of self-funding, friends and family and financing, and eventually some sort of business loan is your best funding source.

How do startups get funding?

Startups and small businesses typically secure funding through loans, friends and family, angel investors, venture capital, grants, or crowdfunding. To boost your chances you need to be actively networking, craft a compelling pitch, and write a detailed business plan.

How do you get funding for an existing business?

Existing businesses can seek funding through friends and family, loans, lines of credit, investors, grants, or revenue-based financing. To better your chances, it’s crucial to demonstrate financial stability and growth potential.

What is the most common startup funding?

The most common startup funding is often personal savings, friends and family, or loans.

How can you fund a business without a loan?

Businesses can be funded without loans through bootstrapping, crowdfunding, grants, angel investors, venture capital, or investments from friends and family.

Securing funding can be challenging, as it depends on factors like the business’s stage, financial health, and the investor’s appetite for risk. A strong pitch, business plan, and network can improve your chances.

How much should I ask for when funding a startup?

Determine the amount needed by creating a detailed financial plan, considering costs, projected revenues, and growth goals. Be sure to request a realistic amount to justify the use to investors.

Can you get funding with just an idea?

While difficult, it’s possible to secure funding with just an idea, particularly if you have a strong network, industry experience, or an innovative concept. While traditional options like a business loan will require more information and traction, some early-stage investors or incubator programs may be interested.

What are examples of funding?

Examples of funding include self-funding, bank loans, lines of credit, grants, angel investments, venture capital, crowdfunding, and investments from friends and family.

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Business Plan Funding Request Section: How to Write Guide .

Sep 17, 2023 | Business Consulting , Business Growth , Business Performance , Business Plan , Financial Plan , Funding Needs , Funding Request , Small Business , Startup , Strategy

The business plan funding request section is required if you plan to seek funding from a lender or investors.

How to Write the Business Plan Funding Request

“It is more rewarding to watch money change the world than to watch it accumulate.” –Gloria Steinem.

By now, you’ve made significant progress in developing your business plan. With this, the eighth article in our Creating a Detailed Business Plan series will focus on including a funding request.

Business plans are generally the catalyst for requesting banks, lenders, and investors to invest money into a company . Usually, the business plan and funding help support business growth or rapidly scale a startup company.

As you can imagine, this makes the funding request section extremely important . Business plans can be written even with ample existing funding and can be in stages to support different business expansion phases. You can omit a funding request if you aren’t looking for outside investment.

The business plan funding request section is required if you plan to seek funding from a lender or investors.

The funding request section of your business plan is required if you plan to seek funding from a lender or investors.

Benefits of including a business plan funding request section

A business plan typically consists of various areas, and if you intend to secure funding for your business, it’s crucial to include the funding request section. Fortunately, this part of your business plan is only necessary if you plan to seek external financial assistance. If you don’t require any funding, you can skip this section.

There are various ways to fund your business without debt or investors. This article will help you create a persuasive funding request for your business plan.

What information is needed for the business plan funding request?

The business plan funding request section of your plan outlines your financial needs for the future, including how much money you require and when you will need it. You should also mention the various sources you could use to secure funding, such as loans or crowdfunding.

Remember that you can constantly update this section in the future if you require additional funding for business expansion.

How much money and how much duration must you include in your funding request?

A funding request is no time to be shy. Your readers will know what funding you’re after when they get to this section, so be forthright. Declare your business funding needs now and in the future. Give exact figures, and spell out any further infusions you’ll require over the next five years.

Explain how long the funds will be needed , when you plan on repayments, and when the investor can expect a return. It’s also helpful to spell out whether you’d prefer a loan, a grant, a direct investment, and any other relevant terms you would like included . For example, are you willing to give up equity in your business to secure the loan, or will you be personally underwriting the loan from your assets?

How do you plan to use the requested funds?

It’s unlikely that anyone will give you money if they don’t understand how you plan on using the funds. So be explicit when explaining the purpose of your request. For example, note whether the funding will go toward working capital, additional equipment, or business expansion to new premises or regions.

Describe your plans if you are growing your team or expanding your operation. If you plan on buying another company, explain what this will do for your bottom line and cash flow.

You might also use the funds to retire debt, create and market a new product line, or combine things. Whatever the use, be rigorous in your explanations.

Business banks and investors aim to secure a reasonable return on their investment. So, they’re far more likely to fund businesses that plan to use the money to grow and become more profitable.

But, on the other hand, if they get the sense that the money is just helping to string along a failing enterprise or the owner is not clear on the funding required, they’ll stay away.

What are your long-term plans for the business?

If you have any solid, situational plans for the business that might positively impact investors, you should spell them out.

Consider your plans for scaling your business. If there’s an expectation of a lucrative buyout or acquisition after meeting specific benchmarks, mention this. Describe your goals if you plan on selling a portion of the company to focus your efforts on more profitable areas.

Mention any primary debt service you plan to make, mainly if it will put your company on a firmer footing for the future.

Why should investors trust you?

This question is critical. It would help convince your readers that you would be a good steward of their money and your business. It’s essential to remember that those who are providing you with money are doing so with the expectation of being paid back and making a profit. If they don’t trust you or doubt your ability to make this happen, they may not be willing to get involved.

Explain the assumptions you’re making in your plans and provide the proper financials to support your contentions. Let the data speak. If you’re correct, the research will bear out our position.

Planning for your finances now and in the future

When it comes to financial planning and funding your growth , it’s essential to consider factors such as loan repayment schedules and potential business sales. If you are seeking a loan, it’s wise to detail your repayment plans, although lenders will likely have their agenda in place. If you plan to sell your business, it’s crucial to inform the lender and explain how this may impact them. Additionally, you should consider possible relocation if you plan to move or a buyout if that’s on the table. Lastly, informing investors of their exit options, such as the ability to cash out and the timeline for doing so, is essential.

Our upcoming article will focus on creating financial projections for a business plan.

You can achieve your goals, and Noirwolf is here to assist you.

Putting together a funding request can be daunting. Asking your accountant for help is always a good idea. You can also use tools like Microsoft Excel and financial planning software like LivePlan . If you need further assistance, we’re ready to help out.

Contact us today to learn more about Noirwolf Consulting services and how we can significantly help you .

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Contact Noirwolf Consulting today using the website contact form or by emailing [email protected] or call us at +44 113 328 0868.

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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?

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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 to invest in 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...

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Startup Funding: What It Is, How It Works, & 5 Tips for Landing It

Katrina Kirsch

Published: January 24, 2023

Raising startup funding is one of the most exciting and challenging times for a company.

Startup funding conversation between investor and founders

Searching for investors, loans, grants, and other forms of funding is a big step toward business growth. It can give your startup the capital you need to keep building products or offering customers new features.

→ Download Now: Free Business Plan Template

Global venture funding fluctuates wildly depending on what is happening in the world. Startups worldwide raised a total of $415.1 billion from investors in 2022, down 35% from 2021's all-time high.

So, how do you get the funding you need? This post explains the essentials of startup funding. Keep reading or jump ahead to a section to learn:

What is startup funding?

Types of startup funding for business, how startup funding works, startup funding rounds, how to get startup funding.

Startup funding is the money a business uses to start or support a new business. There are many different types of funding. Startups use these funds to cover marketing, growth, and operating expenses to launch the business.

The number and types of funding options can be overwhelming for a new startup. Understanding the types of startup funding can help you understand what's out there and how it aligns with your company's goals, so let’s cover that next.

  • Self-Funding
  • Crowdfunding
  • Private Equity Firms
  • Incubators and Accelerators

funding in business plan

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  • Outline your idea.
  • Pitch to investors.
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  • Get to work!

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Click this link to access this resource at any time.

1. Self-Funding

39% of business founders fund startups with personal funds. Self-funding means that you independently provide the funding you need for your startup. This might mean personal savings, starting your business with a long timeline, or running on a tight budget .

These are some other self-funding strategies:

Bootstrapping

Bootstrapping isn't just using personal funds to start a business. Bootstrapped businesses also use early startup revenue to continue running the business rather than seeking outside funding.

Bootstrapping is a hotly-debated topic. It helps founders keep control of their businesses — instead of giving equity to investors — and avoid interest payments from taking out loans. The downside? If the startup fails, the founder loses their savings or that of their family and friends.

Credit cards

Credit cards can help you get the resources you need to grow your startup and offer backup cash flow when things don't go as expected.

17% of businesses use credit cards as a source of startup funding. That said, keep a close eye on interest rates, penalties, and payments to make sure that your credit doesn't suffer as you grow your business.

Bartering can be a useful way to finance big purchases like furniture, phones, or advertising for your startup. Startups that use bartering offer a useful product or service in return. This can save operating funds and expand your network.

Customer Commitment

Some startups begin with a commitment from an early customer who believes in their value. In this situation, the customer's payments alone can fund the startup at the beginning.

2. Crowdfunding

Crowdfunding is a way to raise money online through online platforms. While some sites have a built-in audience, many need you to build your own following with your own promotional strategy. It's a low-commitment way for you to get support and build early interest in your startup.

Small businesses can use crowdfunding sites to quickly access cash. These gains may mean giving up equity in the business or offering rewards. It's also important to be transparent about your company's health throughout the process.

Friends and Family

Many startups begin with funds from close friends and family. If you're not sure about asking for a loan, crowdfunding can be a simple way to ask your community to support your new venture.

Interested? Get your next business or product off the ground with the help of these crowdfunding sites .

You can also fund your startup with loans. You can use the money to build, repair, enhance, or re-open a business. What you'll need to qualify for a loan will vary depending on the lender, amount, and type of loan you borrow.

These are some popular loan choices for startups:

SBA Microloan

The U.S. Small Business Administration offers programs, such as SBA microloans , to provide companies with up to $50,000 of working capital.

Microlenders

Another option is microlending . These organizations lend small amounts of money, usually between $5,000-$50,000 to entrepreneurs.

This choice is great for founders who may not qualify for standard business loans. This type of capital can help a founder build their credit score so they can access more funding in the future.

Microlenders may be more responsive to business plans that might seem risky to another lender. These loans can also have more flexible loan and repayment terms.

According to 2021 Guidant research , 10% of startups receive loans from family and friends.

If you plan to go this route, create a clear plan for how you'll present the idea to your people. This overview should talk about the risks involved, set the terms of the loan, and share potential mutual benefits.

Friends and family loans often help startups in the pre-seed or seed funding stages.

Personal Business Loans

If you have a strong credit score and personal finances, you can also take out a personal business loan. This type of loan may have a lower interest rate and a quicker approval time. At the same time, do your research before you borrow. Some lenders have restrictions about taking out a loan for startup funding.

Learn more about financing your startup in this post.

A grant is a financial award for a business from a government, corporate, or nonprofit entity. Grants are gifts, so they don't need to be repaid.

These mission-driven investments are often quite competitive. For many grants, to qualify for funding your startup goals and values need to align with those of the organization you're applying to.

Small Business Grants

The Small Business Administration offers some small business grants to states and community organizations. This is where many startups begin their search for funding.

But don't stop there. There are many other resources to begin your search for small business grants.

Featured resources:

  • Small business grants for startups
  • Grants for veterans
  • Small business grants for minority entrepreneurs
  • Grants for black women
  • How to find and apply for grants for women
  • Funding resources for black-owned businesses

5. Private Equity Firms

High-growth companies are enticing for venture capitalists. Unlike other forms of startup funding, there's significant risk involved.

If a company fails, the investors won't see a return on their contributed capital. But if a company succeeds, the payout can be in the millions.

Investors hope the companies they invest in do one of three things:

  • Get acquired
  • Pay back their investment with interest

Private equity firms often sit on the board of a startup or act as advisors. They have a stake in the business and will do what they can to help it succeed.

Venture Capital

These are usually large investments. This startup funding is for a startup that's prepared to use a large investment and grow quickly. That said, micro VCs can work for startups that don't need as much financing.

Venture capitalist funding is difficult to get and often takes time and preparation.

Success can also mean that you will lose some control over your startup. Changes like staffing or spending often mean conversations with investors. Instead of quick decisions, all parties must come to an agreement.

Angel Investors

Angel investors , private investors , and silent partners are other options for startup funds. These are individuals who fund startups, often with their own money. This investment may be in exchange for equity or partial ownership of the business.

6. Incubators and Accelerators

Startup funding once focused on a small, elite group of founders. But the industry has been shifting to support founders who haven't had access to private equity, loans, or grants.

Sustainable funding resources are essential for equitable entrepreneurship. These programs also support funding for people with marginalized identities, such as:

  • People of color
  • The LGBTQI+ community
  • People with disabilities

Incubators and accelerators are essential programs for startup founders, especially those starting a business for the first time. They offer capital, mentorship, and networking. There's a slight difference between the two , which you need to know if you're considering this type of startup funding.

Incubators help entrepreneurs build their businesses. They focus on developing a business plan, name, website, and minimum viable product (MVP). If a company already has an MVP, an accelerator expedites growth. Here, founders receive mentorship, funding, and networking connections. Incubators also run on a flexible schedule.

Accelerators are competitive mentor-based programs. They offer guidance, support, and limited funding in exchange for equity. These programs often run on a shorter schedule than incubator programs.

Ultimately, every founder needs to figure out which type of funding is right for their startup. But how does startup funding work? Let's walk through a typical funding process.

Now that you understand the different types of funding, let's walk through the typical funding process.

Let's say you're a startup founder. Your business is growing and you want to hire more employees to manufacture your product prototype. But you need funding to make it happen. You decide to search for investors.

Investors want to support startups they believe in. They also want to make a return on their investments. That's why almost all deals with angel investors, venture capitalists, or private equity firms include equity.

That way, when the company begins to earn a profit, the investors will get their money back — plus an extra slice of equity for taking a chance.

Companies looking for outside funding usually begin with a seed round. Then, some will continue on to Series A, B, and C rounds.

But before any rounds begin, a company valuation must take place. This can impact investor interest in the company and how much new capital a startup can bring in.

A valuation considers:

  • The startup's maturity
  • Market size
  • Track record

Once the valuation is complete, startups can begin a funding round. The timeline and process vary by company. Some founders search for investors for months, while others close a round in a matter of weeks.

And while certain startups move slowly through each funding round, others build capital much faster. It's not uncommon for an innovative startup to raise a few million in one to two rounds, while another company raises $25 million in the same number of rounds.

This video by The Rest of Us gives a detailed explanation of the funding process.

The startup funding that gets the most news involves raising money through outside investment. In those cases, investors exchange capital for equity — or partial ownership — of the company.

The investment process is broken up into funding rounds. Funding rounds can be confusing. Let's look at each phase in the process and what it means for founders, companies, and investors.

Pre-Seed Funding

Pre-seed funding takes place as founders are getting their companies off the ground.

It's the earliest stage of funding a company. Pre-seed funding usually involves an investment from:

  • The founder's personal savings
  • A network of other founders

This round can go on for years as a company develops. Or, if a company proves itself, it can happen rather quickly.

Seed Funding

Seed funding is the first official funding a company raises, and it's often tied to equity.

This capital helps a startup finance early steps, like:

  • Conducting product research
  • Launching a product
  • Marketing to a target audience
  • Building an audience

Think of this stage as the "seed" by which the rest of the company is able to grow and flourish. Without it, a founder wouldn't be able to hire a team or test their idea in the market.

Seed funding can come from family, friends, angel investors, incubators, or private equity firms. But the amount varies widely — some companies raise $10,000, while others raise $2 million.

Funding for this round varies . It usually depends on what resources the business needs to grow and what investors feel is worth their time and financial investment.

Series A Funding

Once a business uses its seed funding to develop a product and build a customer base, it's time for the next step. A Series A funding round can help to:

  • Expand a company's product offerings
  • Bring in more customers
  • Develop a long-term plan for growth

Startups in this funding round often attract investors from traditional private equity firms.

The average U.S. Series A for funding in the first half of 2022 was $20.4 million . Valuations in the tech industry vary and this impacts the average funding amounts.

Series B Funding

Series B rounds are about business development and how to reach the next level of growth. The capital raised in this round often supports:

  • Hiring new talent
  • Boosting sales
  • Tech development
  • Customer service

Average Series B round funding was $50 million in 2022, up from $35 million in 2020.

This funding round can attract both traditional private equity and later-stage investment firms.

Series C Funding

Series C funding rounds are for successful startups that need extra funding to:

  • Create new products
  • Acquire other companies
  • Expand into new markets
  • Hire an exceptional leadership team
  • Boost numbers before an initial public offering (IPO)

The capital should help scale the company's efforts so it can grow as quickly as possible. Series C funding averages range from $88 to $89.5 million in 2022.

Because these startups are already successful, this round of investment can be less risky. With that in mind, there are often more investors getting involved at this level.

Series C investors can include:

  • Private equity firms
  • Hedge funds
  • Secondary market groups
  • Investment banks

Series D and Beyond

Few companies extend beyond Series C into Series D or E rounds. Businesses seeking this funding are often looking for a final influx of capital to achieve their goals.

A company at this stage of funding should have an established customer base, revenue streams, a track record of growth, and a solid plan for how it will use new capital.

  • Calculate your funding needs.
  • Create a business plan.
  • Check your financial health.
  • Research funding options.
  • Make a repayment plan.

Startup funding depends on your business idea, experience, and access to financing. There are many factors that can influence funding and following these steps can help improve your chances.

1. Calculate your funding needs.

Before contacting investors or applying for a loan, you need to know how much money you need to achieve your business goals.

Looking for a small, one-time sum? A business loan or grant might be the right fit.

Need a larger contribution? An angel investor may make more sense.

Understanding your funding needs lets you take the best approach. This calculator can help you figure out your startup costs.

More resources:

  • Startup costs
  • Startup marketing budget

2. Create a business plan.

A business plan can help you build confidence with investors, lenders, and family members who can help fund your startup.

Your business plan should outline your vision. It should highlight the opportunity, target market, and industry you want to impact. It should also include:

  • Marketing plans
  • Competitive analysis

This business plan template makes it easy to create a detailed business plan so you can start pitching your idea.

Featured resource: Business plan template

Startup funding for business resource, Business plan template, HubSpot

3. Check your financial health.

You can't figure out what type of funding you need if you don't know your current financial status. Gather the documents you need to make an assessment including:

  • Business and personal tax returns
  • Bank statements
  • Projected expenses

Then, create a profit and loss statement and revenue projections. These can help you (and investors) understand how much funding you have on hand — and how much you still need.

4. Research funding options.

Reading this post may have opened your eyes to the types of available funding. Before you make any choices, do an extensive amount of research to see if it's right for your business. There are hundreds of resources available online about approaching investors , your debt-to-equity ratio , and distributing equity .

  • Tips for pitching to investors
  • Preparing for investors

5. Make a repayment plan.

Accepting capital is no small gesture, especially if it's millions of dollars. Most founders only need a few thousand dollars to get started, but it's still wise to create a plan for paying back the money you borrow.

You can use a business loan calculator to estimate payments and work them into your budget. If you can't make the payment, don't take the funding.

Find the Right Startup Funding for Your Business

Some businesses need a massive amount of capital to bring their ideas to life. Others need a small loan to push them toward higher revenue and financial freedom.

Whatever the case may be for your business, it's best to figure out your current finances and funding options before choosing a path. Look to similar businesses in your industry, look at loans, or find inspiration for a crowdfunding campaign.

Use this starting point to find the funding you need to bring your business to life. Then, go out and get that money.

Editor's note: This post was originally published in February 2022 and has been updated for comprehensiveness.

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Business Plan Section 8: Funding Request

These guidelines will help you prepare a funding request to present to a potential lender alongside your loan application.

Funding Request

We’ve talked before about the benefits of having a business plan for every business, but the truth is, most companies don’t put one together until they want to apply for funding, whether from a bank or investor. Sometimes, even if you don’t need a full business plan when applying for a loan, you will be asked for a funding request. You can also follow the guidelines below to prepare a stand-alone proposal to present to a potential lender with your application.

If the purpose of your business plan is NOT to get funding, feel free to skip this section.

As we’ve said before about writing a business plan, it’s important to keep your audience in mind. You can certainly prepare different versions of your funding request depending on whether you’re applying for a loan or approaching an investor. The terms of each would be different, and you might be looking for different amounts of money or types of funding, especially if you’re approaching several potential partners.

Be clear about whom you’re directing the request to, and think about the questions they might have and what they would want to see. Make sure you’ve done your homework regarding the costs involved with your plans. This is where the financial section of your plan will work hand in hand with this one. Be consistent with your numbers, and ask for enough to cover your needs fully so you don’t fall short and remain unable to complete your goals. At the same time, don’t ask for more than you need.

What to Include in Your Funding Request

1. a summary of the business.

If the request is part of your business plan, you will have already put together all the information found in a business summary. If you’re creating a funding request as a stand-alone document, explain what the company is, where you’re located, what you sell or what services you offer, and who your customers are. Mention whether you’re incorporated, and if so, what type of corporation it is, along with who the owners and key staff members are. Briefly list your business successes and accomplishment thus far.

2. How much money you’re requesting

How much cash are you looking for now, and if you anticipate this being the first part of an ongoing growth plan, how much more money do you plan to request over time? What would the specific timeline look like? The Small Business Administration suggests thinking as far as five years down the road when putting your funding request together. Also spell out what type of funding you’re looking for, whether a loan or investment, and the terms you’re asking for. (As we suggested above, you can put together different versions of the request for different types of funding.)

3. What you will use the money for

Do you need some extra funds for working capital to buy more inventory? Are you paying off a high-interest loan? Buying a building, new equipment, or another company? Expanding your advertising campaign, or hiring more staff? Whatever it is, explain how much each aspect will cost.

4. Financial information

This will be the heart of the financial information section of your business plan , but you need to include it here if you’re putting together a stand-alone funding request.

You’ll need historical data on the company (if it’s an established business), like income statements, balance sheets, and cash flow statements for the last three to five years. If the funding request is for a loan that requires collateral, document what you have to offer. If you’ve invested your own money in the company or there are other investors, state that along with how much.

Offer realistic projections for the future, and explain how this new funding would help you reach those goals. Prepare yearly forecasts for income, balance sheets, cash flow and capital expenditure budgets for the next five years. Be even more specific for the first year, with projections for each month or quarter.

You also need to cover how you plan to pay off the debt, or what kind of return on investment you can offer a potential investor. Potential funders will pay particular attention to this, wanting to maximize their gains and minimize their risk as much as possible. If the plan is targeted to investors, what would their exit plan be? Can they cash out in a specific number of years? Do you plan to go public and offer stock?

Finally, address anything that might affect your ability to repay, whether positively or negatively, such as being acquired, buying out another business, relocating, etc.

Getting money to fund your business may very well be the point of creating your entire business plan, so take the time to carefully prepare your funding request, making sure to include all the information a decision-maker will need.

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  • Starting a business

How to create a funding-request business plan

Amanda Hoyer

If you’re ready to launch a new business, you have to know how to ask for funding. Even the most entrepreneurial spirits understand the value of planning, especially when it comes to convincing investors and banks. There are many kinds of business plans , but some have a special section dedicated to funding requests.

What to include in your funding request business plan

  • Start planning your business’s financial future

For more detailed funding requests, you’re convincing investors and banks your business is worthwhile. Seeking out sources of external financing requires extra work. With nearly three-fourths of new businesses funded by business loans, credit cards, and lines of credit, you need to know how to ask for funding.

Read on and discover everything you need to include for your funding request business plan. By the end of this guide, you’ll have every important funding detail covered to win investors over.

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Lengthy business plans include many things. Some plans are shorter and more of an overview, while other plans are more detailed. For funding requests, you’ll need to deep dive into each section of your outline, with an emphasis on financial details.

A funding request highlights both your current financial situation and future goals with each aspect of your plan. The financial data included in a funding request is broken up over other parts of your business plan, including:

Business summary

Amount requested, purpose of funding, financial data.

Aside from current and future financial needs, these sections clarify other possible sources of funding. After securing funding, you can always update your funding request for future requests.

Your funding request business plan may be a standalone document. If not, you’ll need to include a summary of your business. This summary explains what your business does.

It also establishes your operating location(s), what goods or services you offer, and who your customers are. If your business is incorporated, you’ll also define the type of corporation in this section, its owners, and key stakeholders. Feel free to list any successes or accomplishments if your funding request is for a business expansion.

Financial projections or forecasts are critical for a funding request business plan. If you’re unclear about how much money you’re requesting, now’s the time to crunch those numbers. Make sure to plan your amount along a timeline, too.

Consider how much financing you need for the initial growth period of your business. Then, think about what you’ll need potentially years down the road—the more clarity in your planning process, the more accurate your funding request.

Make sure you clearly define the type of funding you need, too. There’s a big difference in the requirements between a loan or investment, especially in payback and usage terms.

Explaining how you’ll use any loans or investments is a critical part of asking for funding. If you need extra working capital to expand your business, explain it. If you want to pay off a high-interest loan, purchase new equipment, buy a building, etc., describe this purpose.

The clearer picture banks or investors have of your financial motivation, the more convinced they should support your business. Planning out every anticipated need also helps you  think ahead for your business’s future growth.

Easily the most important part of your funding request business plan, financial data is critical. Any current and future funding information should be quantified and explained in this section. Let’s further explore which elements are part of this section.

  • Balance sheet: a statement of assets, liabilities, and capital with past income balance and expenses
  • Breakeven analysis: when you’ll cover all your expenses and begin profit generation
  • Income statement: information on the income and expenses covering a specific period (i.e., profit and loss)
  • Cash flow statement: the amount of cash on hand and spent during a specific period

Information like this can also help your financial projections or forecasting . When you request a certain amount, projections can help you assess current and future needs. The clearer your business growth timeline, the easier it is to estimate future needs.

Start planning your business’s financial future

With a better understanding of how to ask for funding, it’s time to start planning. Setting timelines is only a small part of building your company’s future. If you’re unclear before you create a funding request, you’ll have a better understanding of where your business can move forward.

Outlining payment timelines and planning your company’s financial future isn’t the only way to think ahead. If you truly plan for the long-term, you can also consider things like an exit strategy. A succession plan can even include the transfer of ownership much farther down the line.

You may not be anywhere near this kind of planning yet, but it’s a great way to consider a healthy work-life balance, too. How far ahead you plan can impact more than your business growth but your personal growth, too.

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As an animal lover, you’ve likely dreamed of working with animals for a living. Perhaps you’ve applied to work at an animal shelter or doggy daycare center. If you want to care for pets, you don’t have to wait to be hired by someone. Plenty of animal lovers start their own grooming salons or pet daycare center. Whether you can start your business at home or a licensed facility depends on the legal requirements in your state. But you can still get started on your business with the help of some useful products. If you’re planning to start a business that serves animals or already have a business of your own, you might consider incorporating some practical pet equipment to get you started.

It’s important that your business evokes feelings of calm and safety for your furry clients. Pet owners might be more inclined to support your business if it has a professional, yet inviting environment that’s suitable for their pets. Having a spacious and organized space can help anxious pets get more acclimated during their stay. With the help of these handy pet tools, you can bathe and groom your furry friends without the fuss. They’re functional and affordable so not only will they benefit your customers, but they’ll benefit your wallet as well. Make your new pet business one where pet owners and pets can feel safe and excited to visit.

  • Business Guides

You enjoy an easy and relaxing life; every person feels the same way. You are officially working at home while you are already a full-time parent. You work as an event planner, and you know what is best for people. It is human to ease your mind, and it depends on what eases your mind. It is also human to need items to start your new path as a new parent, college student, or moving to a new home. The positive changes are a part of you are, and it is up to you on which path you take. If you prefer, you can even take all three. You require the necessities to continue your new chapter.

The five supplies are the introductions to the new chapters of each person’s life. It is the items for your new home, apartment, or dorm room. You would enjoy your next chapter and have the supplies that ease you into the next chapter. The string light poles are for the backyard you always wanted. The travel bartender kit is for those friends you spend all night talking about life. The light clip hooks will keep your lights organized and add that glowing light to your room. The sliding barn door kit is for someone trying to create the best celebration for their family or friends. The noise-canceling muffs will help ease your baby into a deep slumber with any disturbances.

The yard is a person's space, and it is therapeutic to take in that fresh earthy air. People enjoy spending time outside so much that they treat it like a room. The five items listed below help you create the backyard they have been dreaming about for a long time. Their backyard is the area where they can clear your head, meditate, breathe, and relax in their space. They need to take in the beauty of nature and have what they need to fulfill that peace of mind in your backyard. The backyard is the place of sanctuary.

It will benefit your peace of mind to create a hobby for yourself to connect to nature and create your business. It is important, to stabilize the reconnection to nature in their backyard. The listed above items would make their outdoor experience in their home more relaxing and well organized. Organization and decorative items will create the dream yard; they have always wanted. The backyard is the perfect area for birthday parties, family gatherings, and even late-night parties with their friends. Personality, I enjoy sitting out in my backyard. It is the yard that helps me keep calm. I learn to connect myself to nature.

Writing a business plan for funding application

Table of Contents

Business proposition

Unique selling point, market research, competitors, objectives and strategy, target audience, customer profile, channels , qualifications, amount needed, projections, use countingup to manage finance beyond your plan.

Setting up a company comes with many hurdles to face. For example,  you might look to buy equipment, stock or pay for marketing.

To help you secure the money you will need, you can apply for finance. That might mean you approach a bank for a small business loan or off an investor a share of your company.

When you decide to look for any form of funding, there’s one crucial document you need for the application — a business plan.

A business plan is not something to take lightly. It can go a long way to help you secure finance. So, before you start writing, it would help to know everything it can cover.

This guide discusses writing a business plan for funding application, including:

Your business plan for a funding application aims to encourage investors or lenders to believe in your business. These groups will only hand out their money for ideas that they can see being successful.

For that reason, your first section outlines what your business proposes. One of the key markers of a successful product or service is its uniqueness.

If your startup has something that only you offer, that is called a unique selling point . That could be the product that you sell or the service you provide.

Even when you sell something unique, you can demonstrate how knowledgeable you are about its market through market research .

You can research who will likely pay for what you sell and other competing businesses.

Research first-hand information through interviews and surveys sent out to the public. Alternatively, look at competitors’ websites and products or services to see how yours compares. 

In your business plan, it’s helpful to include a few specific companies you see as competition . Showing that you know who they are can convince lenders or investors that you know the industry and can overcome competitors.

Provide successful businesses with something similar to show there’s a market for what you offer. But remember to clarify how your unique product or service will be more appealing to customers.

Another important section for your business plan for funding application is the objectives and strategy. Here, discuss what you aim to do and how you’ll get there.

Pinpointing some ambition for your business to aspire toward can help put across the direction you see it going. But also include short and medium goals in addition to long-term ones.

For example, a long-term objective may be to become the largest drinks company in the UK within five years. A short-term one could be to increase your social media following by 200 in the next month.

If you can share your target audience , you can provide your plan with a clear strategy to reach them. You could find a few similarities between likely customers during your market research.

To show your target audience in a way that is relatable and easy to understand, you can create customer profiles (sometimes called customer avatars).

These are summaries of hypothetical people who represent your ideal customers, and they can include:

If you outline who your audience will be, it also points to how you’ll meet any objectives through marketing. An essential part of how you market is your branding .

Your brand is the identity your startup will put across to the public. It can involve a few elements, including:

  • Brand name — what is your business called?
  • Logo — what icon is attached to your business?
  • Brand colours — what you’ll use three or four colours in your marketing?
  • The tone of voice — how will you speak to your customers? (e.g. friendly/conversational).

In your strategy, you can also mention which marketing channels you’ll use. Looking at your customer profiles will help you create a plan for reaching your audience. 

For example, to target 18-25-year-olds, you might use Instagram competitions. 

Writing a compelling business plan for funding applications may also benefit from a description of its leadership.

If you have any business experience or past in the relevant industry, it could help convince lenders or investors to trust your business. 

Beyond experience, you could also have qualifications that back up your abilities. If you don’t have any relevant credentials, look at the online courses from the Open University .

In addition to experience or qualifications, just as important are skills you can bring. Mention where your strengths are that can help you run your business.

For example, you may have abilities in developing websites, which would help you set up your own.

As important as what you are good at, mention areas you look to improve. It can further benefit your plan if you can say how you’ll overcome weaknesses.

For example, if you have little experience in finance, you could write that you’ll use an accounting app like Countingup.

Countingup is a business account with built-in accounting software, making finance accessible for anyone, anytime through their phone.

To banks and investors, another important section in your business plan for funding application is your financial information.

The purpose of the plan and application is to seek money, so it’s essential to clarify how much you want. But it’s also crucial to lenders or investors what you’ll do with their funds.

Research and list the costs for each action you’ll take. An example for marketing could be to ask an advertising agency for a quote.

As well as explaining how much money you’d like to receive, it’s helpful to show how you’ll pay it back in your plan. To do that, you can put together a sales forecast .

A sales forecast calculates the estimated amount of sales you expect by the price you’ll charge for each. It gives you a projection for the amount of money that’ll come into the business over a month, quarter or year.

Now that you’ve written an incredible business plan, you are in a great position to seek funding. But once you get it, you’ll want to make that plan a reality.

To help you manage your finances, use Countingup, the business account with built-in accounting software. With features like expense categorisation, you’ll be able to sort costs quickly and make the best use of your funding.

Turn a business proposal into a marriage of ambition and management with Countingup.

Start your three-month free trial today.  Find out more here .

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The Importance of Market Research

Creating a business plan, legal requirements, exploring funding options, crafting a marketing strategy, managing and growing your business, how do i start a small business for beginners, how do i create a business plan, what are six ways to grow and scale a business, the bottom line.

  • Small Business
  • How to Start a Business

Starting a Small Business: Your Complete How-to Guide

From market research to managing growth

funding in business plan

The U.S. is home to 33.2 million small businesses, which drive over 43% of GDP.   If you are looking to start a business, there are key factors to consider—from market research and creating a business plan to scaling your business. These factors are critical to your journey and can make a big difference no matter what stage of the process you are in.

Entrepreneurs who take concrete action can differentiate themselves from competitors, innovate, and grow. For successful entrepreneurs, the execution of the business is often what means the most. 

Key Takeaways

  • Starting a small business involves extensive market research of your target audience, competitors, and gaining a deep understanding of the industry.
  • It is important to build a comprehensive business plan that includes the product or service description, your target customers, financial projections, and all other key details.
  • Understanding the legal requirements of starting your business involves knowledge of business registration, permits, licensing, and other regulatory requirements.
  • There are various types of funding channels for starting a business, including financing it yourself, securing external funding from your network, and applying for government and corporate grants and loans. 

Being clear about your business goals involves doing your research. Successful entrepreneurs often do extensive research on their field. This includes understanding their prospective customers, the technical aspects of the industry, and the challenges other businesses are facing. 

Understanding how other players operate in an industry is important. Attending conferences, joining associations, and building a network of people involved in the field can help you learn how decisions are made. Often, comprehensive market research takes six months to a year. 

Understanding Your Target Audience

Knowing your target market is critical for many reasons. These are the customers who are most likely to purchase your product, recommend it to friends, and become repeat buyers. Apart from driving your bottom line, having a strong understanding of your target audience will allow you to tailor your offering more effectively, reach your customers more efficiently, and manage customer expectations.

Compiling demographic data on age, family, wealth, and other factors can give you a clearer understanding of market demand for your product and your potential market size.

It’s important to ask, “Why would someone buy this and part with their discretionary income?” or “Will someone love this enough to tell someone about it?” At the heart of these questions is understanding whether your business solves a key problem, as well as whether it delivers the “more” that connects to your audiences’ human emotions.

Assessing Market Trends and Opportunities

To find an advantage in a given market, look at key market trends in customer behavior and the business landscape. Explore the state of business conditions and consumer spending, along with the economic environment and how interest rates may affect financing and business growth.

Several resources are available to dive into market trends across industries, such as Statistics of U.S. Businesses and the U.S. Census Business Builder . To analyze the competitive landscape, and in turn, identify key opportunities, Porter's 5 Forces is a classic model to help businesses build their competitive strategy.

A business plan is a road map for achieving your business goals. It outlines the capital that you need, the personnel to make it happen, and the description of your product and prospective customers.

There are a number of models for creating a business plan. The Small Business Administration (SBA) , for instance, provides a format that includes the following nine sections:

  • Executive summary: This should be a description of your company and its potential for success. The executive summary can cover your mission statement, employees, location, and growth plan.
  • Company description: This is where you detail what your business offers, its competitive advantages, and your strengths as a business.
  • Market analysis: Lay out how your company is positioned to perform well in your industry. Describe market trends and themes and your knowledge of successful competitors.
  • Organization and management: Who is running your company, and how is your business structured? Include an organizational chart of your management team. Discuss if your business will be incorporated as a business C or S corporation, a limited partnership, a limited liability company, or a sole proprietorship. 
  • Service or product line: Here is where you describe how your business will solve a problem and why this will benefit customers. Describe how your product lifecycle would unfold.
  • Marketing and sales: Detail your marketing strategy and how this will reach your customers and drive return on investment. 
  • Funding request: If you're looking for financing, lay out the capital you’re requesting under a five-year horizon and where, in detail, it will be allocated, such as salaries, materials, or equipment. 
  • Financial projections: This section shows the five-year financial outlook for your company and ties these to your request for capital.

Having a coherent business plan is important for businesses looking to raise cash and crystallize their business goals.

Setting Goals and Strategies

Another key aspect of a business plan is setting realistic goals and having a strategy to make these a reality. Having a clear direction will help you stay on track within specified deadlines. In many ways, it allows companies to create a strategic plan that defines measurable actions and is coupled with an honest assessment of the business, taking into account its resources and competitive environment. Strategy is a top-down look at your business to achieve these targets.

Financial Projections and Budgeting

Often, entrepreneurs underestimate the amount of funding needed to start a business. Outlining financial projections shows how money will be generated, where it will come from, and whether it can sustain growth. 

This provides the basis for budgeting the costs to run a business and get it off the ground. Budgeting covers the expenses and income generated from the business, which include salaries and marketing expenses and projected revenue from sales.

Another important aspect of starting a business are the legal requirements that enable you to operate under the law. The legal structure of a business will impact your taxes, your liability, and how you operate.

Businesses may consider the following structures in which to operate:

  • Corporation
  • Limited Liability Company (LLC)
  • Partnership
  • Sole Proprietorship

Each has different legal consequences, from regulatory burdens to tax advantages to liability being shifted to the business instead of the business owner.

Registering Your Business

Now that you have your business structure outlined, the next step is registering your business . Your location is the second key factor in how you’ll register your business. In many cases, small businesses can register their business name with local and state government authorities. 

If your business is being conducted under your legal name, registration is not required. However, such a business structure may not benefit from liability protection, along with certain legal and tax advantages. Often, registering your businesses costs $300 or less.

Before filing, a business structured as a corporation, LLC, or partnership requires a registered agent in its state. These agents handle the legal documents and official papers on your behalf.

Businesses that are looking to trademark their product, brand, or business, can file with the United States Patent and Trademark Office.

Understanding Permits and Licenses

If your business conducts certain activities that are regulated by a federal agency, you’re required to get a permit or license. A list of regulated activities can be found on the SBA website, and includes activities such as agriculture, alcoholic beverages, and transportation.

There are many different ways to fund a business. One of the key mistakes entrepreneurs make is not having enough capital to get their business running . The good news is that there are several channels to help make this happen, given the vital role entrepreneurs play in creating jobs and boosting productivity in the wider economy.

Self-Funding vs. External Funding

Bootstrapping, the term commonly used to describe self-funding your business, is where companies tap into their own cash or network of family and friends for investment. While the advantage of self-funding is having greater control, the downside is that it often involves more personal risk.

External funding involves funding from bank loans, crowdfunding, or venture capital , among other sources. These may provide additional buffers and enable you to capture growth opportunities. The drawback is less freedom and more stringent requirements for paying back these funds.

Grant and Loan Opportunities

Today, there are thousands of grants designed especially for small businesses from the government, corporations, and other organizations. The U.S. Chamber of Commerce provides a weekly update of grants and loans available to small businesses. 

For instance, Business Warrior offers loans between $5,000 and $50,000 to small business owners. As another example, Go. Be. Elevate Fund offers $4,000 to grant recipients who are women and/or people of color business owners to help them grow their businesses.

When it comes to marketing, there is a classic quote from Milan Kundera: “Business has only two functions—marketing and innovation." In order to reach customers, a business needs a marketing strategy that attracts and retains customers and expands its customer base.

To gain an edge, small businesses can utilize social media, email marketing, and other digital channels to connect and engage with customers.

Branding Your Business

Building a successful brand goes hand in hand with building a great experience for the customer. This involves meeting the expectations of your customer. What is your brand offering? Is it convenience, luxury, or rapid access to a product? Consider how your brand meets a customer's immediate need or the type of emotional response it elicits. Customer interaction, and in turn loyalty to your brand, is influenced, for example, by how your brand may align with their values, how it shifts their perception, or if it resolves customer frustration.

Digital Marketing and Social Media

We live in a digital-first world, and utilizing social media channels can help your business reach a wider audience and connect and engage in real time. Given that a strong brand is at the heart of successful companies, it often goes without saying that cultivating a digital presence is a necessity in order to reach your customers. 

According to HubSpot’s 2023 report, The State of Consumer Trends, 41% of the 600-plus consumers surveyed discovered new products on social media and 17% bought a product there in the past three months.

Managing a business has its challenges. Finding the right personnel to run operations, manage the day-to-day, and reach your business objectives takes time. Sometimes, businesses may look to hire experts in their field who can bring in specialized knowledge to help their business grow, such as data analysts, marketing specialists, or others with niche knowledge relevant to their field.

Hiring and Training Staff

Finding the right employees involves preparing job descriptions, posting on relevant job boards such as LinkedIn, and effectively screening applicants. Careful screening may involve a supplemental test, reviewing a candidate's portfolio, and asking situational and behavioral questions in the interview. These tools will help you evaluate applicants and improve the odds that you'll find the people you are looking for.

Once you have hired a new employee, training is the next essential step. On average, it takes about 62 hours to train new employees. Effectively training employees often leads to higher retention. While on-the-job training is useful, consider having an onboarding plan in place to make the transition clear while outlining expectations for the job.

Scaling Your Business

Growing your business also requires strategy. According to Gino Chirio, executive vice president at the consultancy group Maddock Douglas, there are six ways that companies can grow their business to drive real growth and expansion:

  • New processes: Boost margins by cutting costs.
  • New experiences: Connect with customers in powerful ways to help increase retention.
  • New features: Provide advancements to your existing product or service.
  • New customers: Expand into new markets, or find markets where your product addresses a different need.
  • New offerings: Offer a new product.
  • New models: Utilize new business models, such as subscription-based services, fee-for-service, or advertising-based models.

With these six ways to grow a business, it is important to consider the risk, investment, and time involved. Improving your margins through new processes is often the most straightforward way to grow. Offering new features is also effective since it is tailored to your existing market with products you have already delivered.

By contrast, offering new products may involve higher risk since these have not been tested in the market. However, they may offer higher reward, especially if you have a first-mover advantage and release your product in the market before the competition.

A good place to start building a business is to understand the following core steps that are involved in an entrepreneur's journey : market research, creating a business plan, knowing the legal requirements, researching funding options, developing a marketing strategy, and business management.

A business plan is made up of a number of primary components that help outline your business goals and company operations in a clear, coherent way. It includes an executive summary, company description, market analysis, organization and management description, service or product line description, marketing and sales plan, funding requests (optional), and financial projections.

Business growth can fall into the following six categories, with each having varying degrees of risk and investment: new processes, new experiences, new features, new customers, new offerings, and new models.

Knowing how to start a small business involves the key steps of market research, setting up a business plan, understanding the legal requirements, exploring funding options, crafting a marketing strategy, and managing your business. 

For aspiring small business owners, these steps can help you successfully deliver your product or service to the market, and ultimately grow. While it can take a considerable amount of work, the payoffs are manifold: independence of work, personal fulfillment, financial reward, and following your passion.

U.S. Chamber of Commerce. " The State of Small Business Now ."

U.S. Small Business Administration. " Market Research and Competitive Analysis ."

U.S. Small Business Administration." Write Your Business Plan ."

U.S. Small Business Administration. " Choose a Business Structure ."

U.S. Small Business Administration. " Register Your Business ."

U.S. Small Business Administration. " Apply for Licenses and Permits ."

U.S. Small Business Administration. " Fund Your Business ."

U.S. Chamber of Commerce. " 52 Grants, Loans and Programs to Benefit Your Small Business ."

Ogilvy. " Behind Every Brand Is a Great Experience, and Vice Versa—Why Today's Customer Expects Synergy ."

HubSpot. " The State of Consumer Trends in 2023 ."

Training Magazine. " 2022 Training Industry Report ."

Harvard Business Review. " The Six Ways to Grow a Company ."

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  • How to Do Market Research, Types, and Example 2 of 25
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  • What Is a Marketing Plan? Types and How to Write One 5 of 25
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  • Business Plan: What It Is, What's Included, and How to Write One 7 of 25
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A solid business plan is one of the most important documents you’ll need to create for your company. This document provides a roadmap for your company’s future developments. However, no growth can occur without a sufficient amount of working capital. That’s why your business plan should include a source of funds section – it can remind you how to maintain the cash flow your company needs.

Apply for an SBA Loan

There’s another reason this part of your business plan matters. It can show certain lenders how much money you need beyond what the funding sources in your business plan can get you. That said, not all lenders will require you to share a business plan. For example, SmartBiz’s loan approval requirements don’t include business plans among the necessary paperwork. Either way, below are some source of funds examples in business plans.

What is a business plan?

A business plan is a document that guides your company’s growth. It helps define your business goals and provides a clear overview of how you’ll achieve them. You can also use it to plot out your marketing, operational, and sales approaches. Your business plan can be the foundation of a strategy to minimize risk and maximize growth.

Another reason why solid business plans are essential is that you’ll often need to provide them as you apply for business loans. Business plans provide an in-depth look at a company’s plan for profits, so lenders can more easily judge the borrower’s likelihood of repayment. Lenders are much more likely to finance borrowers whom they believe can pay back the loan amount in a reasonable timeframe.

8 source of funds examples

Having a source of funds – sometimes several sources of funding – is vital to growing your business . Common funding options include business loans, and sometimes, to qualify for them, you must show lenders your other funding sources. Understanding the below source of funds examples in business plans can help you better structure yours.

1. Personal savings

When you’re just getting your business off the ground, sometimes, the fastest way to fund it is directly from your current savings. However, entwining your personal savings into a company that could fail is a risky prospect – but it also shows commitment. Lenders and investors often respond well to a borrower who’s ready to go the distance with their ideas.

2. Money from friends and family

Money from family and friends, which you’ll also see called “love money,” is a viable source of funds in your business plan. However, just as it’s risky to get your own money wrapped up in a business, it’s dangerous with other people’s finances too. Plus, accepting money from a loved one can come with drawbacks. For starters, not everyone in your life has much to spare in the first place. Furthermore, if you borrow money from friends or family and you can’t repay it, the relationship could be damaged.

3. Federal and private grants

Occasionally, your business model can put you in line for federal grants. That said, rare is the business that qualifies for federal grants – technically, the government does not provide grants for small businesses growth. However, private companies ranging from FedEx to the NBA offer grants to small businesses that fit certain criteria. If there’s a chance your company could fit these criteria, you can include private grants as sources of funding in your business plan.

4. Share sales and dividends

Selling shares of your company to investors – as in, anyone who buys stocks – falls under a category of funding known as equity financing. This arrangement can be lucrative, which is a main reason why you see so many companies having initial public offerings (IPOs).

However, equity financing has a few drawbacks. For one, you’ll no longer have complete control over your company's future, as stockholders dilute your ownership. Additionally, you’ll have to account for dividends in your financial planning. You pay these sums to your shareholders every quarter.

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5. Venture capital

If you need a large amount of cash, venture capitalists can be a viable option. Typically, though, venture capitalists are only interested in funding startup businesses in the tech sector with high growth potential.

Venture capital is a high-reward but high-risk funding source. It often requires you ceding a certain amount of ownership – and thus control – of your business. Furthermore, if your business fails, you may still need to repay any venture capitalists or firms that have funded your operations.

6. Angel investors

An angel investor is a wealthy private individual who invests in small businesses to help them get off the ground. They tend not to offer as much starting capital as a venture capitalist, but they can make up for the smaller amount with experience. Angel investors are often experts within a specific industry and put money back into it by investing in newer businesses within that sphere.

Although you’ll have to give an angel investor some control over your company, their experience and network can help your business grow. Additionally, the word “angel” in their name reflects that they typically don’t ask for their money back if your business fails. That makes them a safer bet than venture capitalists.

7. Business incubators

Unlike the previous funding options, a business incubator doesn’t offer direct monetary support. Instead, incubators help fledgling businesses thrive by allowing them into their workspace and letting them share resources as they get started. This type of funding is indirect – you’ll rarely get direct cash infusions, but you’ll get resources that would otherwise cost you money. It’s common in high-tech industries such as biotechnology, industrial technology, and multimedia.

8. Bank loans

Bank loans probably ring a bell for you. When a current or aspiring small business owner needs additional funds, these loans are often the first thing that comes to mind. They’re among the most in-demand funding options available given their large funding amounts, long-term repayment periods, and low interest rates . However, their high amounts introduce lender risk that can make them difficult to obtain. To minimize risk, most lenders impose strict qualification criteria that you might not make.

Why do you need to provide sources of funds in your business plan?

Providing a source of funds in your business plan paves a path toward obtaining and using your funding. Knowing where your money is coming from and what you’re spending can help with strategic financial planning. It also minimizes the chances of your business partners spending money the company doesn’t actually have.

In a lending context, your sources of funds may help you qualify for any loans you need in the future. Depending on the funding sources you’re using, lenders may view you as someone able to repay the debt financing they offer. For example, using personal savings shows your commitment to your business, meaning you’re likely a reliable borrower who won’t flake on a loan. You’ll show your commitment to your company and your business at the same time.

Parting thoughts

Reliable funding sources are essential to achieving your company’s objectives, and their presence in your business plan can help you obtain more funding. Namely, certain entities that offer small business loans require business plans as part of the borrower approval process. When your approval plan clearly shows why you need the loan money and how else you’re getting funding, lenders may trust you more.

However, certain lenders don’t require business plans. In fact, when you apply for SBA 7(a) loans , bank term loans, or custom financing through SmartBiz ® , you don't need a business plan. Check now to see if you pre-qualify * – the business funding you need might be closer than you think.

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*We conduct a soft credit pull that will not affect your credit score. However, in processing your loan application, the lenders with whom we work will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and happens after your application is in the funding process and matched with a lender who is likely to fund your loan.

The SmartBiz® Small Business Blog and other related communications from SmartBiz Loans® are intended to provide general information on relevant topics for managing small businesses. Be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed. Please consult legal and financial processionals for further information.

funding in business plan

How to Write a Business Plan That Gets Funding: The Ultimate Guide

When you start a company, one of the most vital items you’ll need is a business plan. This document will describe your company’s objectives, strategies, and how you aim to achieve them. A well-executed business plan may assist you in obtaining financial backing from investors or banks. We’ll go through the process of writing a business plan that receives funding in this lesson. From market research to financial projections, we’ll go through it all! Let’s get started!

writing a business plan

Debt Financing

If you are looking for an online business, betting sites with a casino bonus code or services you can provide is a great option. There are several options for raising capital for your company. Debt financing, which involves borrowing from banks or other financial institutions, is the most common way to do so. If you have a solid business plan and excellent credit, debt financing may be a viable option. However, it’s worth noting that you’ll have to pay interest on the money you borrow.

Equity Financing

Another alternative for business financing is equity investment, in which investors buy a stake in your company. This may be an excellent source of money, but keep in mind that you’ll be giving up some control and ownership of your firm.

Bootstrapping

Another alternative is bootstrapping , which involves financing your company yourself, either through savings or by generating income. If you’re confident in your business concept and don’t require a large amount of money to begin, bootstrapping may be a fantastic option.

There are a variety of options for financing your business. The finest option for you will be determined by your unique circumstances. debt financing, equity funding, or bootstrapping are all viable alternatives.

Do Your Research

Before you begin writing your business plan, do some research. This includes learning about the industry in which you’ll operate, your target market, and your competition. This study will assist you in making well-informed decisions regarding your company’s goals and methods. It will also enhance the credibility of your business proposal to investors.

Outline Your Goals

Once you’ve done your research, it’s time to start writing out your aims. What do you want to accomplish with your business? Make sure your objectives are clear, specific, measurable, doable, relevant, and time-bound. These elements are the foundation of writing a business plan.

Create a Marketing Plan

Once you’ve determined your goals, it’s time to begin developing your marketing plan. This should include a description of your target market, as well as how you intend to contact them and what sort of marketing strategies you’ll use. Your strategy for reaching out to potential consumers should be clear and genuine.

Develop Your Financial Plan

The next stage is to create your financial plan. This involves generating a budget, estimating income and costs, and projecting financial demands. Your financial strategy should be thorough and realistic.

Write Your Business Plan

It’s time to get started writing your business plan after you’ve done your research, determined your goals, and put together your marketing and financial strategies. This document should include an executive summary, a description of the firm, a market study, a marketing plan, a financial plan, and a company structure.

Make certain that your business plan is simple and easy to comprehend. It should be free of mistakes and typos. Have someone else read your business plan to ensure it makes sense after you’re done writing it.

Hire a Consultant

Finally, if you want assistance with writing your business plan, consider hiring a professional. A consultant can assist you with market research, financial projections, and the creation of your business plan. If you don’t have the time or knowledge to write your own business plan, hiring a consultant may be a viable alternative. Experts understand the subject better.

When it comes to writing a business plan, there is no one-size-fits-all approach. The best way to write a business plan that gets funding is to tailor it to your specific needs. Remember to do your research, outline your goals, and be realistic in your financial projections.

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U.S. Department of the Treasury

Treasury publishes 2024 national risk assessments for money laundering, terrorist financing, and proliferation financing.

Reports Confirm and Update Key Illicit Finance Concerns in Response to Evolving Threat and Risk Environment 

WASHINGTON –  Today, the U.S. Department of the Treasury published the 2024 National Risk Assessments on Money Laundering, Terrorist Financing, and Proliferation Financing. These reports highlight the most significant illicit finance threats, vulnerabilities, and risks facing the United States. 

The reports detail recent, significant updates to the U.S. anti-money laundering/counter-financing of terrorism framework and explain changes to the illicit finance risk environment. These include the ongoing fentanyl crisis, foreign and domestic terrorist attacks and related financing, increased potency of ransomware attacks, the growth of professional money laundering, and continued digitization of payments and financial services. These assessments also address how significant threats to global peace and security—such as Russia’s ongoing illegal, unprovoked, and unjustified war in Ukraine and Hamas’s October 7, 2023 terrorist attacks in Israel—have shaped the illicit finance risk environment in the United States.

Today’s publications are the fourth iterations of the money laundering and terrorist financing risk assessment, and the third update of the proliferation financing risk assessment, in less than a decade. The public and private sectors can use these updated risk assessments to better understand the current illicit finance environment and inform their own risk mitigation strategies. 

“Whether it’s terrorism, drug trafficking, Russian aggression, or corruption, illicit finance is the common thread across our nation’s biggest national security threats,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “Treasury, through our National Risk Assessments, is at the cutting edge of analyzing the global risk environment to protect the U.S. and international financial systems from abuse by illicit actors. We urge both the public and private sectors to engage with these reports, as well as our forthcoming National Strategy for Combatting Terrorist and Other Illicit Finance.”

Key findings:

  • Money Laundering : Criminals use both traditional and novel money laundering techniques, depending on availability and convenience, to move and conceal illicit proceeds and promote criminal activity that harms Americans. The crimes that generate the largest amount of illicit proceeds laundered in or through the United States remain fraud, drug trafficking, cybercrime, human trafficking and human smuggling, and corruption. The United States continues to face both persistent and emerging money laundering risks related to: (1) the misuse of legal entities; (2) the lack of transparency in certain real estate transactions; (3) the lack of comprehensive AML/CFT coverage for certain sectors, particularly investment advisers; (4) complicit merchants and professionals that misuse their positions or businesses; and (5) pockets of weaknesses in compliance or supervision at some regulated U.S. financial institutions. 
  • Terrorist Financing : The United States continues to face a wide range of terrorist financing threats and actors, both foreign and domestic. Consistent with the 2022 risk assessment, the most common financial connections between individuals in the United States and foreign terrorist groups entail individuals directly soliciting funds for or attempting to send funds to foreign terrorist groups utilizing cash, registered money services businesses, or in some cases, virtual assets. The 2024 report also discusses Hamas and the ways they exploit the international financial system, including through solicitation of funds from witting and unwitting donors worldwide. Additionally, domestic violent extremist movements have proliferated in recent years, posing an elevated threat to the United States and continued challenges for law enforcement.
  • Proliferation Financing : Russia and the Democratic People’s Republic of Korea (DPRK) presented heightened risk since the 2022 assessment. To support its unlawful war in Ukraine, Russia has expanded efforts to illegally acquire U.S.-origin goods with military applications using a variety of obfuscation techniques, such as the use of front companies and transshipment points around the world. Networks linked to the DPRK increasingly exploit the digital economy, including through hacking of virtual asset service providers and the overseas deployment of fraudulent information technology workers.

Treasury’s Office of Terrorist Financing and Financial Crimes led the assessment process and coordinated closely with offices and bureaus across the Department, relevant law enforcement and regulatory agencies, staff of the federal functional regulators, and across the intelligence and diplomatic communities.

In the coming weeks, Treasury will release the 2024 National Strategy for Combatting Terrorist and Other Illicit Finance, a strategic plan directly informed by the analysis contained in the risk assessments. In the strategy, Treasury will share recommendations for addressing the highlighted issues. This valuable feedback has aided Treasury in assessing and addressing illicit finance risk identified in prior iterations of the strategy to support improvements to the AML/CFT regime, including the launching of the new beneficial ownership reporting requirement that went into effect on January 1, 2024, and informing forthcoming proposed rules to address illicit finance vulnerabilities in the residential real estate sector and for certain investment advisers.

The 2024 National Money Laundering Risk Assessment

The 2024 National Terrorist Financing Risk Assessment

The 2024 National Proliferation Financing Risk Assessment

Barclays to end direct financing of new oil and gas fields

  • Published 6 days ago

Oil worker

Barclays has announced it will no longer provide direct funding for new oil and gas projects.

The banking giant also says it will restrict lending to energy businesses that plan to expand their fossil fuel production.

Barclays is a major lender to the fossil fuel industry, but has been coming under mounting pressure to curb its support for the sector.

Campaign groups welcomed the move, but insisted it did not go far enough.

According to a report from environmental group Rainforest Action Network, Barclays was the biggest funder of the fossil fuel sector in Europe between 2016 and 2021.

It provided just under $16.5bn (£13bn) in 2022, although that was significantly lower than in previous years. In 2019 and 2020, the figure was more than $30bn.

However, the bank has been under pressure from environmental campaigners, shareholder activists and even celebrities to curb its support.

Last year, a campaign group including the actress Emma Thompson and the film director Richard Curtis called on the All England Lawn Tennis Club to remove Barclays as a sponsor of Wimbledon. They claimed the bank was "profiting from climate chaos".

In what it called a Climate Change Statement , Barclays announced it would no longer provide direct funding for projects designed to expand oil and gas production, or infrastructure related to such projects.

It said it would also end direct funding for any oil and gas projects in the Amazon or in the Arctic Circle, or which were aimed at extracting, processing or transporting oil from oil sands.

But direct funding for specific projects makes up only part of Barclays' overall lending to the sector.

The bank said there would also be restrictions on new financing for energy groups themselves, although these will be stricter for new clients than existing ones.

The plan is not wholly focused on oil and gas. There will also be curbs on lending linked to coal mining and coal-fired power generation.

Barclays is not the first bank in Europe to introduce such commitments. HSBC, Lloyds, BNP Paribas, Societe Generale and Credit Agricole have all previously announced restrictions on funding for fossil fuels.

The latest announcement was welcomed by ShareAction, a group that campaigns for responsible investment, but it complained that there were loopholes in the plan.

"Barclays is wrong not to have ruled out financing companies that focus exclusively on fossil fuel extraction," it said.

"This should include fracking, which is causing so much environmental and social harm and is an activity the bank is heavily exposed to."

Meanwhile, Make My Money Matter, the group that includes Thompson and Curtis, said Barclays' plan was "inadequate in scope and in ambition".

Its chief executive, Tony Burdon, said: "While they finally caught up with other major European banks like Lloyds by ruling out direct project finance for fossil fuels, the reality is this covers just a fraction of their oil and gas lending.

"This new policy lets them continue funnelling billions to those companies developing catastrophic new fossil fuel projects around the world."

Barclays has pointed out that oil and gas funding represents a very small proportion of its overall activities.

Related Topics

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World breaches 1.5C warming threshold for full year

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  • Published 3 July 2023

Actress Emma Thompson

These 22 GOP senators voted for a $95.3 billion Ukraine and Israel aid package — without the controversial border provisions that Republicans have rejected

  • The Senate approved a Ukraine and Israel aid bill — without any border provisions.
  • Republicans had demanded border security measures, only to reject them as insufficiently harsh.
  • 22 GOP senators, slightly less than half of the conference, joined most Democrats to pass the bill.

Insider Today

So much for that border security deal.

Early on Tuesday, the Senate passed a bill to provide billions in aid to Ukraine and Israel, setting up an eventual clash with House Republicans.

In the end, 22 Republican senators — slightly less than half of the conference — joined with most Democrats to pass a version of the foreign aid bill that didn't include any of the border security provisions. Hours earlier, the bill failed after Republicans panned the bipartisan deal that they had originally demanded.

Among those voting for the bill was Senate Minority Leader Mitch McConnell, whose support for Ukraine aid is increasingly at odds with the rest of the GOP, as well as his allies in the conference.

The $95.34 billion package contains $60 billion in new aid to Ukraine, $14 billion for Israel, and $9.15 billion for humanitarian assistance, including for Gaza.

Tuesday's vote represents a significant decline in support for Ukraine within the Senate GOP. In May 2022 — the last time the Senate voted on a bill primarily dealing with Ukraine aid — 39 GOP senators supported it.

Despite hopes for an amendment process, no such votes were taken, in part because Republican Sen. Rand Paul of Kentucky sought to drag out the passage of the bill as long as possible. Under the Senate's arcane rules, amendment votes are typically used to speed up the passage of a bill.

Many Republican lawmakers, particularly on the hard right, have been fervently opposed to further aid to Ukraine, arguing that it does not serve American interests and that the money would be better spent domestically in the United States.

Owing to that opposition, it's unclear what path the bill would have through the House. House Speaker Mike Johnson has signaled some level of support for Ukraine aid since ascending to the top job, but he regularly voted against it as a rank-and-file lawmaker.

Republican Rep. Marjorie Taylor Greene of Georgia has threatened to call a vote on ousting Johnson from the speakership if he allows another vote on Ukraine aid.

Meanwhile, some progressive Democrats are likely to oppose the package if it does not include conditions on Israel.

Sen. Bernie Sanders of Vermont and two other Democrats voted against the bill on Tuesday.

Here are the 22 GOP senators who voted for the bill:

John Boozman of Arkansas

Shelley Moore Capito of West Virginia

Bill Cassidy of Louisiana

Susan Collins of Maine

John Cornyn of Texas

Kevin Cramer of North Dakota

Mike Crapo of Idaho

Joni Ernst of Iowa

Chuck Grassley of Iowa

John Hoeven of North Dakota

John Kennedy of Lousiana

Senate Minority Leader Mitch McConnell of Kentucky

Jerry Moran of Kansas

Lisa Murkowski of Alaska 

James Risch of Idaho

Mitt Romney of Utah

Mike Rounds of South Dakota

Dan Sullivan of Alaska

John Thune of South Dakota

Thom Tillis of North Carolina

Roger Wicker of Mississippi

Todd Young of Indiana

funding in business plan

Watch: 3 senators livestreamed their hunt across DC for the secretive GOP healthcare bill

funding in business plan

  • Main content

IMAGES

  1. Business Plan for Non Profit Organisation Funding

    funding in business plan

  2. How to Write a Business Plan Funding Request by Paul Borosky, MBA

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  3. How to Write a Business Plan in 9 Steps

    funding in business plan

  4. Business Funding Guide

    funding in business plan

  5. FREE 14+ Sample Funding Proposals in PDF

    funding in business plan

  6. 15+ Business Plan Examples to Win Your Next Round of Funding

    funding in business plan

COMMENTS

  1. How To Write the Funding Request for Your Business Plan

    The funding request section of your business plan is required if you plan to seek funding from a lender or investors. You'll want to include information on the business, your current financial situation, how the money will be used, and more.

  2. Write your business plan

    Executive summary Briefly tell your reader what your company is and why it will be successful. Include your mission statement, your product or service, and basic information about your company's leadership team, employees, and location. You should also include financial information and high-level growth plans if you plan to ask for financing.

  3. How to Write Your Business Plan to Secure Funding

    Why is having a business plan important to get funding? Investors want to invest in a business projected to be profitable within a certain amount of time, has a marketing strategy ready to...

  4. Funding Request

    The funding request section of a business plan is an outline of the future funding requirements of a company. The name and nature of the company, location, owners, service or product offered, target audiences, etc., must be included in the section.

  5. Write the Funding Request Section of Your Business Plan

    What Is the Funding Request? A funding request section of your business plan allows you to ask for the required fund. While writing the request, you always have to mention the timeline in which you will utilize the funds. Usually, this timeline is up to the next 5 years from the request. The funding request may differ on the age of your company.

  6. Fund your business

    Funding your business is one of the first — and most important — financial choices most business owners make. How you choose to fund your business could affect how you structure and run your business. Content Determine how much funding you'll need Every business has different needs, and no financial solution is one-size-fits-all.

  7. How to Write a Financial Plan: Budget and Forecasts

    Financial plan templates and tools. Download and use these free financial templates and calculators to easily create your own financial plan. Download a free detailed sales forecast spreadsheet, with built-in formulas, to easily estimate your first full year of monthly sales. Get a full financial picture of your business with LivePlan's simple ...

  8. How to Fund Your Business

    Jan. 4, 2024 What Are Small Business Grants and How to Get Them Kody Wirth Jan. 4, 2024 Guide How to Successfully Pitch Your Business Idea You must know how to pitch your business, even if you don't plan to pursue funding. Here's what you need to cover to make any pitch successful. Guide 11 Slides to Include in Your Pitch Deck

  9. Business Plan Funding Request Section: How to Write Guide

    The business plan funding request section of your plan outlines your financial needs for the future, including how much money you require and when you will need it. You should also mention the various sources you could use to secure funding, such as loans or crowdfunding.

  10. How to Fund Your Business Idea

    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...

  11. Startup Funding: What It Is, How It Works, & 5 Tips for Landing It

    Startup funding is the money a business uses to start or support a new business. There are many different types of funding. Startups use these funds to cover marketing, growth, and operating expenses to launch the business. The number and types of funding options can be overwhelming for a new startup. Understanding the types of startup funding ...

  12. Business Plan Section 8: Funding Request

    1. A summary of the business If the request is part of your business plan, you will have already put together all the information found in a business summary. If you're creating a funding request as a stand-alone document, explain what the company is, where you're located, what you sell or what services you offer, and who your customers are.

  13. How to create a funding-request business plan

    A funding request highlights both your current financial situation and future goals with each aspect of your plan. The financial data included in a funding request is broken up over other parts of your business plan, including: Business summary. Amount requested. Purpose of funding. Financial data. Terms.

  14. Writing Business Plan for Funding Application

    Business proposition. Your business plan for a funding application aims to encourage investors or lenders to believe in your business. These groups will only hand out their money for ideas that they can see being successful. For that reason, your first section outlines what your business proposes. One of the key markers of a successful product ...

  15. How to Estimate Funding Requirements for Your Business Plan

    To estimate the funding requirement your business faces, take these steps: Create a realistic forecast of your financial situation. Follow the steps for preparing a pro forma or estimated statement of income, expenses, and profit, along with an estimated balance sheet and cash flow statement. Estimate your funding need.

  16. Starting a Small Business: Your Complete How-to Guide

    The Bottom Line. Knowing how to start a small business involves the key steps of market research, setting up a business plan, understanding the legal requirements, exploring funding options ...

  17. A Guide to Different Stages of Funding for Startups

    A comprehensive business plan is crucial to the success of your startup, as it serves as a roadmap for your venture, helping to clarify its strategy, anticipate potential roadblocks, and determine the resources it will need. ... ranging from pre-seed and seed funding stage to venture capital and grant funding. This gives business owners a range ...

  18. Sources of Funding

    Companies always seek sources of funding to grow their business. Funding, also called financing, represents an act of contributing resources to finance a program, project, or need. Funding can be initiated for either short-term or long-term purposes. The different sources of funding include: Retained earnings Debt capital Equity capital Summary

  19. 11 Startup Funding Options To Grow Your New Business

    1. Online Startup Loans. Online lenders and other fintech companies are becoming an increasingly common way to get a business loan. Business owners can typically borrow up to $500,000, but limits ...

  20. Source of Funds Examples in a Business Plan: 8 Suggestions

    Common funding options include business loans, and sometimes, to qualify for them, you must show lenders your other funding sources. Understanding the below source of funds examples in business plans can help you better structure yours. 1. Personal savings

  21. How to Create a Funding Plan for Your Organization

    Your funding plan is a strategic written document on a grant application that drives the organization's direction and decision-making process over a set period of time. Just a few years ago, organizations created three- to five-year long-range funding plans.

  22. How to Write a Business Plan That Gets Funding: The Ultimate Guide

    We'll go through the process of writing a business plan that receives funding in this lesson. From market research to financial projections, we'll go through it all! Let's get started! Debt Financing. If you are looking for an online business, betting sites with a casino bonus code or services you can provide is a great option. There are ...

  23. Think Like An Investor When Seeking Funding For Your Business

    When seeking funding from PE investors, it's important to be prepared and to think like a PE investor. By having a strong business plan, a solid management team, a clear path to an exit strategy ...

  24. Treasury Publishes 2024 National Risk Assessments for Money Laundering

    Reports Confirm and Update Key Illicit Finance Concerns in Response to Evolving Threat and Risk Environment WASHINGTON - Today, the U.S. Department of the Treasury published the 2024 National Risk Assessments on Money Laundering, Terrorist Financing, and Proliferation Financing. These reports highlight the most significant illicit finance threats, vulnerabilities, and risks facing the United ...

  25. Barclays to end direct financing of new oil and gas fields

    Barclays has announced it will no longer provide direct funding for new oil and gas projects. The banking giant also says it will restrict lending to energy businesses that plan to expand their ...

  26. These 22 GOP Senators Voted for Ukraine Aid Without Border Deal

    The $95.34 billion package contains $60 billion in new aid to Ukraine, $14 billion for Israel, and $9.15 billion for humanitarian assistance, including for Gaza.. Tuesday's vote represents a ...

  27. National Entrepreneurship Week Spotlight: How to Start and Grow a Business

    These questions are a part of market research, a process that will help you lay out your business plan. The right business plan will guide you through the stages of starting your business and help you secure funding from lenders and investors. Not sure where to start? Leverage the SBA's how-to guide. Launch. Once the plan is in place, it's ...