Chapter 4 - Determining the Amount Needed—The Business Plan

Abstract

This chapter explains developing details of an upcoming business, its planning, and funding. In order to develop and prepare the financial portion of the business, one needs to learn the principal financial components of a business plan and how to generate them. The key to opening the door to financing is the business plan. All good plans start with a succinct, but powerful executive documentation, that outlines and defines the business in a compelling manner and calls the investor to action. The executive documentation should display passion for the business idea. The executive documentation should clearly explain the concept and the problem the proposed business will solve. The executive summary should list the key success factors and spell out the financing needed. It should be the last piece written, after the business plan is otherwise completed. Because investors receive far more plans than they can possibly read, it is imperative that one states ones case in a way that compels the reader to read on. Even with a strong executive summary and sound business plan behind it, the challenge is often in getting investors to consider the opportunity.