Business Plan &

Access to Funding

Presented by:
Module 4 Atharva Wagh
Darsh Patel
Adnan Waseem
Riddhi Razdan
M Venkata Karthik
Business Plan for Funding:

When you start your own company, you’re in for a marathon rather than a sprint.
You’ll hit tons of milestones—some of which are more challenging than others. Writing a
business plan for funding, be it for a business loan or an investor, can seem like one of the
more daunting tasks for an entrepreneur. Your would-be business funders want to see
specific details about your business (or, if you’re just starting up, what you expect your
business to be).
Here’s an overview of why you need a business plan for funding your company
successfully.

1. To Help Investors Know About Your Business

2. To Share Your Business Objectives and Goals
3. To Explain Your Current Financials and Future Projections
4. To Persuade Investors to Help Fund Your Business
What Should You Include When Writing a Business Plan for Funding?

1. AN EXECUTIVE SUMMARY - The executive summary should cover the essential

information about your business: what it does, who it serves, and what you’re looking for from the
people who read it. Tailor your executive summary toward investors if you’re writing a business plan
for funding. Make sure that it provides the valuable financial information and value proposition behind
investing in your company.

2. YOUR BUSINESS OPPORTUNITY - Here we Show your potential investors why you
deserve their money, and back it up with data. The best way to do this is by detailing market share
insights within your business plan. For example, discuss the following:
Total available market: The number of potential customers you could reach

Segmented addressable market: The portion of the market you actually target from within the total number of
potential customers
Share of market: The amount of customers you believe your company can reasonably reach within your
segmented addressable market

Next, you’ll need to cover your key customers—the people within the share of market category. These are the
people you intend to target the most.

3. your company’s current financials - If you’re just getting your company off the ground and don’t
have revenue to show yet, be sure to include detailed income and expense projections instead. The more
information you can provide about your company, the better your odds are at getting funded.

4. Your current and (future) loan requirements - Be candid and upfront about why you’re
requesting a loan or investment in your company, outlining precisely what you expect your needs to be based on
your bookkeeping and financial forecasting.
 5. A Description of how you’ll use the funds - After all, it’s in their best interest to
understand how you plan to spend these funds—this can help lenders and investors determine
if your plans are sound and can yield the best chance of repayment possible.

6. Your current or (future) loan repayment plans - An outline of your current and expected
loan repayment plans gives these groups a better understanding of how you intend to pay them
back. A strong repayment plan is an essential part of a successful business plan for funding.
The more convincing your plan, the less risky your business appears.

7. A Brief description of your team - They want to know more about the people within your
company itself, too. This is particularly true if members of your organization come with a
distinguished background.Get ready to spill the details on your own financial history, as
creditors want to know if you have a personal history of solvency and debt repayment.
Market Plan
● A marketing plan is a tool with which businesses organize, execute, and track their
marketing strategy over a given time period.

● The purpose of a marketing plan is to write down your tactics and strategies in an
organized fashion. This will help keep you on track, and measure the success of your
campaigns.
Types of Marketing Plan
Depending on the company, one can pull off a variety of marketing plans, such as:

● Quarterly or Annual Marketing Plans: These plans highlight the strategies or

campaigns you’ll take on in a certain period of time.

● Paid Marketing Plan: This plan could highlight paid strategies, such as native
advertising, PPC, or paid media promotions.
● Social Media Marketing Plan: This plan could highlight the channels, tactics, and
campaigns you intend to accomplish specifically on social media.

● Content Marketing Plan: This plan could highlight different strategies, tactics, and
campaigns in which you’ll use content to promote your business or product.

● New Product Launch Marketing Plan: This plan will be a roadmap for the strategies
and tactics you’ll implement to promote a new product.
Digital Marketing
● It is the promotion of brands to connect with potential customers using the internet and other
forms of digital communication.
● This includes not only email, social media, and web-based advertising, but also text and
multimedia messages as a marketing channel.

Benefits of digital marketing

1. A broad geographic reach
2. Cost efficiency
3. Quantifiable results
4. Easier personalization
5. More connection with customers
6. Easy and convenient conversions
Viral Marketing
● Viral Marketing is a strategy that you can use to get people to promote your app (or
any other product) via their existing social networks.

● When you create a viral marketing campaign, it becomes so arresting and convincing
that people can’t avoid to share it as much as possible.

● Not everything a marketer creates will resonate with their audience. And even if
it does, not every resonant piece will persuade users to spread it to their circles.
Startup Finance
Every startup needs access to capital, whether for funding product development, for
initial rollout efforts, acquiring inventory, or paying that first employee. Most
entrepreneurs think first of bank loans as the primary source of money, only to find out that
banks are really the least likely benefactors for startups.

In order to successfully launch a business and get it to a level where large investors
are interested in putting their money, requires a strong business plan. It also requires
seeking advice from experienced entrepreneurs and experts, i.e., people who might invest
in the business sometime in the future.
Modes of Financing Startups
There are 3 modes-

1. Bootstrapping- Bootstrapping a company occurs when a business owner starts a

company with little to no assets. This is in contrast to starting a company by first
raising capital through angel investors or venture capital firms. Instead, bootstrapped
founders rely on personal savings, sweat equity, lean operations, quick inventory
turnover and a cash runway to become successful.

For example, a bootstrapped company may take preorders for its product, thereby
using the funds generated from the orders to actually build and deliver the product
itself.
2. Angel Investors

Angel investors invest in small startups or entrepreneurs. Often, angel investors are
among an entrepreneur’s family and friends. The capital angel investors provide may be a
one-time investment to help the business propel or an ongoing injection of money to
support and carry the company through its difficult early stages.

Angel investors provide more favorable terms compared to other lenders, since they
usually invest in the entrepreneur starting the business rather than the viability of the
business. Angel investors are focused on helping startups take their first steps, rather than
the possible profit they may get from the business. Essentially, angel investors are the
opposite of venture capitalists.
3. Venture Capital Funds

Venture capital means funds made available for startup firms and small businesses with
exceptional growth potential. Venture capital is money provided by professionals who
alongside management invest in young, rapidly growing companies that have the potential
to develop into significant economic contributors.

Venture Capitalists generally:

• Finance new and rapidly growing companies

• Purchase equity securities

• Assist in the development of new products or services

• Add value to the company through active participation.