Introduction

If, as a founder, you need external capital to start or expand your business, you will need to submit a business plan. But what exactly is a business plan? And how do you write it in a way that increases your chances of securing financing?

Who actually decides on your financing?

Most founders assume that the bank advisor they discuss their business plan with is also the person who decides on the financing. However, this is usually not the case. Typically, the business plan is first reviewed by a case officer. Only if they consider the documents to be complete and plausible will they forward them to a decision-maker.

This means you need to write your business plan so that it is understandable even to someone who is not an expert in your field.

Start with the financial plan

Most founders begin with the written part of their business plan. However, this is a mistake. The financial plan is the most important part of your plan. It shows the decision-maker whether your business is economically viable.

Therefore, you should start with the financial plan.

This section should include the following information:

• Costs: What are your fixed costs? What are your variable costs?
• Investments: What investments do you need to make?
• Revenue forecast: What will your revenue be in the coming years?
• Profit forecast: What will your profit be in the coming years?

Ensure completeness and plausibility

The decision-maker will only take your business plan seriously if it is complete and plausible. Therefore, you should include all relevant information.

Also make sure your figures are realistic.

Practise your presentation

In addition to the business plan itself, you will usually also have a personal meeting with the decision-maker. In this meeting, you should be able to present your business plan clearly and convincingly.

So practise your presentation in advance so that you are well prepared on the day of the meeting.

Additional tips for founders

• Have your business plan reviewed by an expert.
• Contact a bank or development bank that specialises in financing founders.
• Find out about the funding programmes that may be suitable for you

Examples of typical mistakes

• The business plan is too long and confusing.
• The figures are unrealistic.
• The business plan is not tailored to the target audience.
• The founder is unable to present their business plan convincingly.

Conclusion

If you follow these tips, you will significantly increase your chances of securing financing. Above all, make sure your business plan is complete, plausible, and convincing.