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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.

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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 ."

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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How to Write the Funding Request for Your Business Plan?

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  • May 7, 2024

Write the Funding Request Section of Your Business Plan

Funding requests are one aspect where the “under promise and over deliver” phenomenon might not work.

Set your business valuation too high, and investors might not invest. In contrast, value it too low, and you might end up receiving way less than what you’re truly worth.

Moreover, if I were to invest in your business, I would want to know why you are raising funds and how they will be used.

In short, a well-planned funding request with the purpose of fund-raise and a realistic ask is key to securing funds. You cannot mess up.

Need help writing the funding request for your business plan ? Here’s our quick guide on writing a compelling and realistic funding request to ensure you don’t miss out.

Let’s dive right in.

What is the funding request?

The funding request section of a business plan is an official section for the organizations to ask for new funding. It outlines the amount of funding needed, the purpose of the funds, how they will be used, and in what timeline they will be used (generally for 5 years).

The main goal of a funding request is to secure the necessary capital to start or expand a business, fund a project, or achieve a specific objective.

How to write your business plan funding request

How you write your funding request heavily depends on why you’re raising funds—the purpose. So, before you start writing, be clear about your requirements and the purpose of fundraising.

Your purpose can be hiring new staff, getting the latest equipment, launching a new product, or starting or expanding a business.

Once you do that, you may start working on your funding request; follow these steps:

1. Provide business information

Start by providing a brief overview of your business. I know—you’ve already included all the information in the prior sections, but adding it here would be an opportunity for you to give your investors a little recap.

No, it does not get redundant—It doesn’t have to be. So don’t worry.

Moreover, sometimes, you only need to send the funding request, not the entire business plan. In such cases, such information makes sense and comes in 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.

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funding request for business plan examples

2. Present 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 it be contextual but 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 or applying for any grant
  • Break-even point
  • If your business is in debt, explain the situation in detail and 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 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.

For that, you will need to calculate your startup costs or the total costs of the activity for which you need funding.

Finally, justify your funding request by explaining how the investment will benefit your organization and contribute to its growth and success.

4. Discuss how you will 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 you are taking the money for multiple things, highlight every detail.

Some examples of various areas where you might use the funding are:

  • Product development
  • Marketing and advertising
  • Operational expenses
  • Technological integration

5. Explain current and future financial planning

You must have explained a little about the inflow and outflow in the financial section of a business plan . 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.

Key points to remember

As we now know what to include in the funding request, let’s see certain points that you need to keep in mind while writing it:

Target audience’s perspective . Applying for a loan is different from approaching an investor. Each of these situations involves different contract terms, types of funding, or amounts of money.

Clarity . Clearly explain with numbers how much funding is required, why you need it, and where you will use it. Also, keep your language for funding requests simple so that everyone can understand.

Realistic financial projections . Provide realistic financial projections so investors can feel confident about your business and trust you with an investment.

Call-to-action . Include a clear call-to-action that encourages investors to take the next steps, whether that’s scheduling a meeting or making an investment.

These may seem like simple tips, but they can help you write a strong funding request that gets investors interested in your business.

As a wrap-up, writing a compelling funding request requires a strategic approach and attention to detail. So, being carefully and include realistic projections.

If you are still confused about writing a funding request, you can leverage business planning software and make your business plan investment-ready.

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Frequently Asked Questions

Do i need a business plan to get funding.

Yes, a business plan is necessary for securing funding for a business. It allows investors and lenders to grasp the company’s vision and mission. A well-thought-out business plan increases your chances of securing funding.

How do I determine the amount of funding to request?

To determine the amount of funding, you will need to assess your organization’s startup costs, forecast cash flow, and consider growth plans.

Taking the help of an AI business plan generator or a financial advisor can help you determine a realistic funding amount based on your business’s needs and goals.

Do I need financial projections in my funding request?

Yes, including financial projections in a funding request is important. It provides potential investors or lenders with a clearer understanding of your finances. Usually, you should add a crux of your finances for at least three years.

About the Author

funding request for business plan examples

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to Create a Startup Funding Proposal: 8 Samples and Templates to Guide You

funding request for business plan examples

Being a founder is difficult. Managing the day-to-day as a founder while trying to secure capital for your business can almost feel impossible. Thankfully, there are different tools and techniques that founders can use to systemize their fundraise to focus on what truly matters, building their business.

One of those tools is a startup funding proposal. In this guide, we’ll break down what a startup funding proposal is and how you can leverage it to build momentum in your fundraise.

What Is a Startup Funding Proposal?

A startup funding proposal is a document that helps startup founders share an overview of their business and make the case for why they should receive funding. A startup funding proposal can be boiled down to help founders layout 3 things:

  • What — what does your startup do
  • How — how does your startup or product help customers accomplish what they are seeking
  • Why — why does your startup need funding and why should an investor fund your business

Related Resource: How to Write a Business Plan For Your Startup

Types of Startup Funding Proposals

Like any business document, there are many ways to approach a startup funding proposal. Ultimately it will come down to pulling the pieces and tactics that work best for your business. Investors are seeing hundreds, if not thousands, of deals a month so it is important to have your assets buttoned up to move quickly and build conviction during a raise. Check out a couple of popular types of funding proposals below:

Traditional Startup Funding Proposal

The most traditional or “standard” standard funding proposal is generally a written and visual document that is created using word processing software and/or design tools.

A traditional proposal is great because it allows you to share context with every aspect of your business. For example, if you include a chart of growth you’ll be able to explicitly write out why that was and what your plan is for future growth.

This document is generally designed to fit your brand and will hit on the key components of your business is structured and predictable way. We hit on what to include in your proposal below.

Startup Funding Proposal Pitch or Presentation

The most common approach we see to a fundraise or proposal is the pitch deck. Pitch decks take the same components as any proposal and fit them into a visual pitch deck that can be easily navigated and understood by a potential investor.

Pitch decks are not required by investors by are generally expected and are a great tool that can help you efficiently close your round. To learn more about building your pitch deck, check out a few of our key resources below:

  • Tips for Creating an Investor Pitch Deck
  • 18 Pitch Deck Examples for Any Startup
  • Our Teaser Pitch Deck Template

1-on-1 Proposals (Elevator Pitch)

A 1 on 1 proposal or an elevator pitch is the quickest version of any proposal. Every founder should have an elevator pitch in their back pocket and is a complementary tool to any of the other funding proposals mentioned here.

As the team at VestBee puts it, “Elevator pitch” or “elevator speech” is a laconic but compelling introduction that can be communicated in the amount of time it takes someone to ride an elevator, usually around 30 seconds. It can serve you for fundraising purposes, personal introduction, or landing a prospective client.”

Email Proposal

Another common way to share a startup funding proposal via email. While the content might be similar to what is seen in a “traditional” funding proposal this allows you to hit investors where they spend their time – their inbox.

The format will follow a traditional proposal with less emphasis on visual aspects and more emphasis on the written content. Check out an example from our Update Template Library below:

Related Resource: How to Write the Perfect Investment Memo

Investor Relationship Hub

Lastly, there is an investor relationship hub or data room that can be used to share your proposal with potential investors. A hub is a great place to curate multiple documents or assets that will be needed during your fundraise. For example, you could share your funding proposal and your financials if they are requested by a potential investor.

Related Resource: What Should be in an Investor Data Room?

What to Include in Your Startup Funding Proposal

How you share your funding proposal might differ but ultimately the components are generally closely related from one proposal to the next. However, be sure that you are building this for your business. There is no prescriptive template that will work for every business.

funding request for business plan examples

Project Summary

First things first, you’ll want to start with a summary of your project or your business. This can be a high-level overview of what your proposal encompasses and will give an investor the context they need for the rest of the proposal. A couple of ideas that are worth hitting on:

  • What your company does and how it’s different from existing solutions to pressing problems.
  • Existing market gaps and how your product covers them.
  • The importance of your product in your industry and how it improves the industry.
  • Existing resources and manpower, investment requirements, and potential limitations.

Current Performance and Financial Report

Of course, investors want to see how your business has been performing. The data and metrics around your business are generally how an investor builds conviction and further interest in your business. We suggest using your best judgment when it comes to the level of metrics or financials that you’d like to share. A couple examples of what you might share:

  • Current assets and liabilities
  • MVP presentation for companies still in the ideation stage
  • Appendix with financial reports

Related Resource: ​​ Building A Startup Financial Model That Works

Existing Investors and Partners

Inevitably investors will want to know who else you have raised capital from and partnered with in the past. Include a brief description of the different investors you have on your cap table and be ready to field additional questions if they have any.

Pro tip: The first place an investor will go to when performing due diligence is your current investors. Make sure you have a strong relationship and good communication with your current investors.

Market Study and Sales Goals

Investors will also care about your customer acquisition efforts and want to make sure you can repeatably find and close new customers. A couple of things that might be important to include in this section:

  • Product pricing and information
  • Revenue targets and goals
  • Customer acquisition model and efforts
  • Sales and marketing related KPIs
  • Stories or testimonials from happy customers

Current Valuation, Investment Requirements, and Expected Returns

This is an opportunity to lay out your cap table and explain your current valuation, investment requirements, and what future valuations could look like. As always, we suggest using your best judgment when it comes to what level of detail you’d like to share about your cap table.

Potential Pitfalls and Solutions

There is an inherent risk when investing in any startup. It is important to make sure potential investors are aware of this. Layout the common pitfalls your startup might face and stop you from achieving your goals. Next, lay out the solutions to these problems and how you plan to tackle them if/when they arise.

8 Startup Funding Proposal Samples and Templates

Below are 8 proposal templates to help you kick off your next fundraise. Note that some of these are technically investor updates and not designed for first-time fundraising. Keep in mind that a startup funding proposal could also be utilized for additional funding after the first round of funding.

1. An Investment Summary Template by Underscore VC

funding request for business plan examples

Underscore VC is a seed-stage venture fund based out of Boston. As the team at Underscore writes :

“As part of this, we strongly recommend you write out a pitch narrative before you start to build a pitch deck. “Writing the prose forces you to fill in the gaps that can remain if you just put bullets on a slide,” says Lily Lyman, Underscore VC Partner. “It becomes less about how you present, and more about what you present.”

This exercise can help you synthesize your thoughts, smooth transitions, and craft a logical, compelling story. It also helps you include all necessary information and think through your answers to tough questions.

Check out the template here .

2. The Visible “Standard” Investor Update Template

Our Standard investor update template is great for communicating with existing investors. If you are regularly sending Updates to their investors they should know when you are beginning to raise capital again and can almost be treated as an investment proposal.

Check out the template for our standard investor update template here .

3. Sharing a Fundraising Pitch via Video

funding request for business plan examples

Videos are a great way to give the right context to the right investors in a concise and quick way. Video is a great supporting tool for any other information or documents you might be sending over. For example, you can include a few charts or metrics and some company information and use the video to further explain the data and growth plans. Check out the template here .

4. Financial Funding Proposal

The team at Revv put together a plug-and-play financial funding proposal. As they wrote, “A funding proposal must provide details of your company’s financials to obtain the right amount of funding. Check out our funding proposal template personalized for your business.” Check out the template here .

5. Investor Proposal Template for SaaS Companies

The team at Revv put together a template to help founders grab the attention of investors. As they wrote, “With so many Investing Agencies, this Investor proposal will surely leave an impact on your company in the long run.” Check out the template here .

6. Startup Funding Proposal Sample

Template.net has created a downloadable funding proposal template that can be edited using any tool. As they wrote, “Get your business idea off the ground by winning investors for your business through this Startup Investment Proposal. Fascinate investors with how you are going to get your business into the spotlight and explain in vivid detail your goals or target for the business.” Check out the template here .

7. Simple Proposal Template

Best Templates has created a generic proposal template that can be molded to fit most use cases. As they wrote, “Use this Simple Proposal Template for any of your proposal needs. This 14-page proposal template is easily editable and fully customizable using any chosen application or program that supports MS Word or Pages file formats.”

8. Sample Investment Proposal for Morgan Stanley

Another example is from the team at Morgan Stanley. The template is commonly used by their team and can be applied to most proposal use cases.

Connect With More Investors and Tell Your Story With Visible

Being able to tie everything together and build a strategy for your fundraise will be an integral part of your fundraising success. Check out how Visible can help you every step of the way below:

Visible Connect — Finding the right investors for your business can be tricky. Using Visible Connect, filter investors by different categories (like stage, check size, geography, focus, and more) to find the right investors for your business. Give it a try here .

Pitch Deck Sharing — Once you’ve built out your target list of investors, you can start sharing your pitch deck with them directly from Visible. You can customize your sharing settings (like email gated, password gated, etc.) and even add your own domain. Give it a try here .

Fundraising CRM — Our Fundraising CRM brings all of your data together. Set up tailored stages , custom fields , take notes, and track activity for different investors to help you build momentum in your raise. We’ll show how each individual investor is engaging with your Updates, Decks, and Dashboards. Give it a try here .

funding request for business plan examples

How to Write a Business Plan: Funding Request

There are several reasons to write a business plan.  A common reason is to help small business owners gain a better perspective of their business.  However, small business owners often seek out a business plan for the sole purpose of obtaining funds from a bank or investor.  If this is your purpose, then you definitely need a business plan funding request in your document.  Further, to optimize your chances of obtaining funding, some specific steps and strategies should be followed for writing your funding requests.

Need Help Writing a Funding Request for a Business Plan?

Call or Text Paul, Doctoral Candidate, MBA.

321-948-9588

Email: [email protected]

Our business plan writer is located in Orlando, Fl.

Need help with your funding request section of a business plan?  Quality Business Plan offers two popular services for funding request section help, which are business plan templates or professionally prepared business plans.

Business Plan Template

If you prefer to do your funding request on your own, at the very least, use a customizable business plan template. Check out our business plan templates by clicking on the link below.

Professionally Written Business Plan

If you want your funding request done by a professional, then our business plan writing service is for you! Check out our business plan prices by clicking on the link below.

Make your funding request is the last section of your business plan .

Your business plan will include a plethora of information about your business, such as the target market, company information, financials, and products or services sold.  Before requesting funding, make sure to educate the potential investor about your company in its totality.  Because of this need, the funding section should be the last piece of information the reader reviews.  This will help the investor or lender come to an educated decision based on all the information available about our company or proposed company.

Why the funding is needed.

The first portion of your funding request should be focused on explaining why the funds are needed.  For some companies, funds are only required for working capital, which is monies used to fund operations.  For other firms, funding is necessary to start operations.  Regardless of the reason why you need the funds, make sure to explain, in detail, why funds are needed.

The total amount of funding needed.

The second piece of information that should be included in your business funding request is the total amount of funds needed.  This should immediately follow why funding is necessary section.  For this part, make sure to state the required funds in one lump sum.  This prepares an investor or reader for the total dollar amount needed.

Usage of funds.

In this section, make sure to break down where the funds will be spent and when the funds will be needed.  For example, if funds are required for working capital, then make sure to say that funds will not be needed until the business opens its doors and then break down in various components how the funds will be spent, if possible.

Parameters of funding.

After the breakdown of how funds will be used, discuss parameters for accepting funding.  These parameters may include an equity stake in the company or specific loan guidelines.  An example of this would be: “Our firm will offer a 25% equity stake for interested investors”. Once this is stated, make sure to explain how funds will be repaid.

How funds will be repaid.

In this portion, investors will want to know how they are going to get paid for their investment.  A popular method of repayment is through dividend payments.  The structure may vary depending on the situation.  From this, in my personal experience, it's a good idea to include some type of statement that the terms may be negotiable.  This allows the investors to make counteroffers about your set parameters.

Possible future funding needs.

Once an investor takes an equity position in the company, they are not fond of surprises.  A most unwelcoming surprise for an investor is for them to find out after they invest, that additional debt may be needed, or further equity investments are required.  Avoid this unpleasant conversation upfront.  Make sure to provide an outline as to possible situations where additional funding may be necessitated.  In doing this, investors are prepared for either a dilution of their equity stake or understanding that additional funds may be required in certain circumstances.

Summarize funding request and include in the executive summary.

The final step to fully utilizing your funding request is to summarize the section into three or four sentences and insert them in your executive summary.  By doing this, investors will know right from the beginning how much funds are being requested and possible terms offered by the company.

Example of a funding request.

Starting a retail bicycle store requires significant upfront funds and working capital to ensure brand building and adequate market penetration.  From this, our firm is requesting $50,000.  Funding will be used as follows:

  • Construction Costs
  • Storefront design
  • Computers and software
  • 30 Men bikes
  • 25 Women bikes
  • 30 Kid bikes
  • Safety gear
  • Accessories
  • Working Capital 25,000

"Bikes and Accessories" will offer potential investors a 15% equity stake in our firm.  Funds will be repaid monthly through dividends based on net profits.  In the event, our firm identifies future opportunities in the marketplace; additional funding may be sought via equity or debt financing.

By: Paul Borosky, MBA., Doctoral Candidate.

Owner of Quality Business Plan.

Updated: 3/4/2022

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Blog » Business » How to Write the Funding Request Section of Your Business Plan

How to Write the Funding Request Section of Your Business Plan

So you’ve got that idea and you’re ready to launch your business . You started to prepare your business plan, but… Not every business plan will need a funding request section. If you’re looking for outside funding though, you’re going to need to ensure this section goes in. You’ll need it whether you’re going to apply for a loan for your business or approach an investor . Here’s how to write your funding request and get the cash you need.

Write an Outline of Your Business

This may sound as though it would be rather pointless, as your entire business plan will be outlining your business. However, you’ll need to outline your business as this section may be used separately from the rest of your plan.

Create an outline that focuses on giving your readers the main points of your business plan. In short, you’re going to want to summarise what your business does and how it plans to operate. This should be enough for your reader to move forward but won’t be repeating anything if they do happen to have the entire document to hand.

Spell Out What You Need in the Funding Request

When it comes to the funding section of your business plan, there’s no point beating around the bush because the reader is going to know exactly what you’re there for and may not have the time to play games trying to figure out what you’re asking for.

Nor are they going to bother to call or email you asking what you meant. Your funding request will simply be denied.

You’ll need to ask for the amount of money you need straight, but that won’t be everything you include in this funding request. Here’s a full list of what you’ll need to include:

  • Amount needed: Ask for the full amount you’ll need. Will you use this cash in one lump sum, or will you need further investments over time? Consider this when thinking of how much you need to ask for.
  • Loan or investment: How do you want this money? Both a loan and investment have benefits and downfalls, so make sure you’re researching each possibility to see what works best for your business.
  • The terms you’re asking for: These will need to be agreed upon before you put this funding request forward and will be a defining factor in your contract, so you’ll want to make sure that you’re investing a good amount of time in ensuring these terms and conditions work well and in favour of your business.

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How you will use the funds.

If you know how much money you need, then it’s safe to say that you’ll have an idea of what it’s going to be used for.

However, make sure that you’re only outlining what your funding is going to be used for. If you’re going to be using it for several different reasons, perhaps dividing it into several areas of your business, such as product development, marketing, and staff costs, make sure that you take the time to outline each use and explain how much will go towards it.

Always remember that the vast majority of investors and lenders would give their money to help a business grow. Rather than trying to help you scrape through on a failing business idea in which they’ll see very little, potentially no, return on investment.

That means you’ll find they’re more likely to fund staff or equipment, rather than help you pay down debt.

Use Tools to Help You Write the Request

The more professionally and comprehensively you’ve written your business funding request, the more likely it is to be fulfilled by your potential investors. This means you’ll need to check your proposal before sending it to ensure that it’s free from errors and mistakes that could seriously damage the credibility and reputation of your business.

Here are some tools that will help you get it written to the highest quality possible:

  • State Of Writing and My Writing Way : These writing guides are full of good advice.
  • Assignment Help : This service can edit and proofread your request.
  • Via Writing and Grammar Check : Get help with your grammar here to ensure a professional standard in your funding request, and your entire business plan.
  • Boom Essays & Academized : Writing agencies recommended by the Huffington Post that will help you with editing and proofreading.
  • Cite It In : Cite any sources you use correctly and professionally using this free online tool.
  • Essayroo and Big Assignments : These writing agencies can help you put your requests together.
  • Easy Word Count : Keep your writing concise with this tool by monitoring its word count to ensure you don’t bore your reader.

Include Financial Information

If someone is to invest in your business, they’ll need to have all the information at hand before they make a decision. You need to be including your business’ financial information in this document, to show them how you handle the income you get. You’ll need to include income statements. Such as cash flow statements, balance sheets, and any other information that may be relevant.

If you’re taking a loan, you’ll need to think about how you’re going to pay the money back, and when. If it’s an investment, what can you offer the investor to show them you’re worth investing in?

Read Your Request Over Before Submitting It

“Finally, you’ll need to proofread and edit your request before you send it out. It’s an essential part of the writing process. No matter how careful you were, you can still make errors in your writing,” says Jenna Gallivan, writer at Elite Assignment Help . Give yourself enough time to sit and read your request through carefully. Give it several passes, to ensure you catch everything. The more you edit, the more professional your request will be.

These tips will help you write finance requests that are reasonable, thorough, and help you get the cash your business needs. Follow this advice and you’ll be able to get the help you need easily. Write it well and you’ll be on your feet in no time.

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How to Create a Funding Request

how to create a funding request

What is a Funding Request?

A funding request is exactly what it sounds like: a written request to obtain funding from an lender or investor for your business. It’s typically included as part of the overall business plan , specifically focusing on the business’s funding needs. Whether you’re seeking capital from a traditional bank, private investor , or angel investor, you should create a funding request. It’s a critical element that increases your chance of getting approved for funding.

What to Include in a Funding Request

So, what should you include your funding request? According to the Small Business Administration (SBA) , a typical funding request should include a few key points of information, starting with your business’s current funding requirement. In other words, how much money do you currently need to operate your business? To calculate your business’s current funding requirements, consider all associated operating costs and revenue.

With that said, you should also include your business’s projected funding requirements over the next five years. As your business grows — and hopefully it does — you’ll probably need additional funding to sustain its growth. By including this information in your funding request, you can secure this capital early so you don’t have to worry about it later down the road.

Other things to include in your business’s funding request is your plan for using the obtained funding (e.g. payroll, merchandise stock, marketing, capital expenditures, working capital, debt retirement, acquisitions, etc.), as well as any strategic situation plans for the near future. This may include company buyouts, acquisitions, debt repayment, or selling your business. As explained by the SBA, this information is highly important to lenders and investors, as it will affect your ability to repay the loan.

Last but note least, be sure to include a time period for your funding request, informing the lender or investor when exactly you need the money and how/when it will be used.

This article brought to you by Intrepid Private Capital�Group – A Global Financial Services Company. For more information on startup and business funding, please visit our website .

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Funding Request Letter Template

Funding Request Letter Template

4-minute read

  • 28th May 2023

Do you need financial backing for a volunteer project or nonprofit organization? If the answer is yes, then you’ll need to a write funding request letter – a formal letter asking for financial support or funding for a specific organization or project.

Since this may be your only form of communication with potential donors, it’s important to get the tone and content right. In this post, we’ll take you through the basics of writing an effective funding request letter – including a customizable sample template.

What Is a Funding Request Letter?

Most nonprofits rely on funding from others to operate, and they often request money from individual donors, companies, or local governments to fund events and projects. To do this, they use funding request letters that outline their objectives and the details of their organization or project.

When writing a letter like this, it’s important to be polite, use a formal, business-like tone of voice , and clearly communicate your goals for the funding.

All letters that request funding should contain the same basic information:

●  Your contact information/the name of your organization.

●  The date.

●  The recipient’s contact information, full name, and title (if applicable).

●  A salutation .

●  An introduction and relevant background information.

●  The funding request, including the exact amount you’re requesting and a breakdown of how the funds will be used.

●  Supporting information, such as the timeline and budget of the project.

●  A closing and signature.

●  Supporting documents.

Let’s look at a sample template.

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[Your Name] [Your Organization’s Name] [Your Address] [City, State ZIP Code] [Date]

[Donor’s Name] [Donor’s Organization’s Name] [Donor’s Address] [City, State ZIP Code]

Dear [Donor’s Name],

I am writing to request funding for [briefly describe the project or initiative for which you are seeking funding]. Our organization has a long-standing history of [briefly describe your organization’s mission and track record of success in achieving its goals].

The project we are proposing is [briefly describe the project, including its goals, expected outcomes, and how it aligns with your organization’s mission]. We believe that this project has the potential to [describe the potential impact of the project and how it will benefit your target population or community].

To achieve these goals, we are seeking a total funding amount of [specify the amount of funding you’re requesting]. This funding will be used to cover [briefly describe the specific expenses that the funding will cover, such as staffing, materials, or other costs].

We have a solid plan for the successful implementation of this project, including [describe the specific steps you will take to ensure that the project is successful, such as project timelines, staffing plans, and quality control measures].

We would be happy to provide additional information about the project or our organization upon your request. We believe that this project has the potential to make a significant impact, and your support would be greatly appreciated.

Thank you for your time and consideration of this matter.

[Your Name] [Organization] [Phone Number]

What to Include in a Funding Request Letter

Always make sure to use the recipient’s full name and title in your salutation; if you’re unsure of the spelling, look it up online (using their LinkedIn profile or company website).

As shown in the sample above, the first two paragraphs should clearly address your reason for writing and provide some background on your organization. This is where you can describe your organization’s history, mission, and previous successful projects or programming.

You can then summarize how you plan to use the requested funds, including the budget for the project and a list of expenses . You should also briefly outline any collaborations or partnerships your organization has formed, a basic timeline for the project, and the expected outcomes or goals.

For your concluding paragraph, reiterate the importance of the project and its potential impact. Thank the donor for their consideration and support and provide contact information for your organization’s staff, including names, phone numbers, and email addresses. Sign off with a respectful salutation using your full name.

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funding request for business plan examples

How to Write Your Business Plan to Secure Funding

Unlock funding for your business! Master the art of writing a funding-worthy business plan with our ultimate guide.

funding request for business plan examples

Introduction to Writing a Funding-Worthy Business Plan

When it comes to securing funding for your business, a well-written business plan plays a pivotal role. It serves as a roadmap that outlines your goals, strategies, and financial projections, giving potential investors or lenders a comprehensive understanding of your business. In this section, we will explore the importance of a well-written business plan and delve into the purpose it serves.

funding request for business plan examples

Importance of a Well-Written Business Plan

A well-crafted business plan is essential for multiple reasons. Firstly, it showcases your professionalism and commitment to your business idea. It demonstrates that you have thoroughly thought through every aspect of your venture and have a solid plan in place.

Additionally, a well-written business plan acts as a communication tool between you and potential investors or lenders. It allows you to effectively convey your business concept, market analysis, and financial projections, helping them understand the viability and potential of your business.

Moreover, a comprehensive business plan can help you identify any potential pitfalls or gaps in your strategy. By thoroughly analyzing your business model, market conditions, and financial projections, you can proactively address any weaknesses and make necessary adjustments.

Understanding the Purpose of a Business Plan

The purpose of a business plan extends beyond just securing funding. It serves as a strategic document that guides your business operations and helps you stay focused on your goals. Some key purposes of a business plan include:

  • Attracting Investors and Lenders: A well-written business plan provides potential investors or lenders with the information they need to make an informed decision about whether to invest in your business or provide financial support. It showcases the potential return on investment and outlines the steps you will take to achieve success.
  • Setting Clear Goals and Strategies: A business plan helps you define your short-term and long-term goals, as well as the strategies you will implement to achieve them. It provides a roadmap that keeps you on track and allows you to measure your progress along the way.
  • Identifying Strengths and Weaknesses: By conducting a thorough market analysis and assessing your business's strengths and weaknesses, a business plan helps you identify areas where you excel and areas that require improvement. This enables you to develop strategies to leverage your strengths and mitigate any weaknesses.
  • Guiding Financial Decision-Making: A business plan includes financial projections and analysis that help you make informed financial decisions. It provides a clear understanding of your revenue streams, costs, and potential profitability, enabling you to allocate resources effectively.
  • Facilitating Collaboration and Communication: A business plan serves as a tool for collaboration and communication within your organization. It ensures that all team members are aligned with the business goals and strategies, fostering a cohesive and unified approach.

Understanding the importance and purpose of a well-written business plan is the first step towards creating a document that effectively communicates your vision and secures the funding you need. In the following sections, we will explore the key components, step-by-step guide, and best practices for crafting a funding-worthy business plan.

Key Components of a Funding-Worthy Business Plan

To create a business plan that attracts funding, it's essential to include key components that provide a comprehensive overview of your business. These components will help potential investors understand your business's potential and make informed decisions. Here are the key components you should include in your funding-worthy business plan:

Executive Summary

The executive summary is a concise overview of your entire business plan. It should provide a clear and compelling summary of your business, highlighting its unique selling proposition, market opportunities, and financial projections. This section should be written in a way that captures the attention of potential investors and encourages them to read further.

Company Overview

The company overview section provides an introduction to your business. It should include details about your company's mission, vision, and values. Additionally, this section should highlight key information such as the legal structure of your business, its history, location, and any notable achievements or milestones.

Market Analysis

The market analysis section presents a thorough examination of your target market, industry trends, and competitors. It should showcase your understanding of the market dynamics, customer needs, and competitive landscape. Including market research, data, and relevant statistics can strengthen your analysis and demonstrate the market opportunity your business intends to tap into.

Product or Service Description

In this section, you should provide a detailed description of your product or service. Explain how it addresses a need or solves a problem in the market. Include information about its features, benefits, and any unique selling points. Use this section to showcase the value proposition of your offering and differentiate it from competitors.

Marketing and Sales Strategy

The marketing and sales strategy section outlines how you plan to promote and sell your product or service. It should include your target market segmentation, pricing strategy, distribution channels, and promotional activities. Demonstrating a well-thought-out marketing and sales strategy can instill confidence in investors regarding your ability to reach and attract customers.

Organizational Structure and Management

In this section, provide an overview of your organizational structure, including key personnel and their roles. Highlight the qualifications and experience of your management team, as well as any advisors or board members. Investors want to see that your team has the expertise and capabilities to execute your business plan successfully.

Financial Projections and Analysis

The financial projections and analysis section is crucial for illustrating the financial viability of your business. Include projected income statements, balance sheets, and cash flow statements for at least the next three years. Additionally, provide a detailed analysis of your financial assumptions and key performance indicators. It's important to present realistic and well-supported financial projections.

Funding Request and Use of Funds

In this section, clearly state the amount of funding you are seeking and how you intend to use it. Break down the allocation of funds, highlighting specific areas such as product development, marketing, operations, or expansion. Providing a detailed breakdown of the use of funds demonstrates your ability to effectively utilize the investment.

The appendix section serves as a supplemental section that includes any additional information that supports your business plan. This may include market research data, product samples, patents, licenses, permits, or any other relevant documents. The appendix provides investors with access to more detailed information without overwhelming the main body of the business plan.

By including these key components in your funding-worthy business plan, you can present a comprehensive overview of your business and increase your chances of securing the funding you need to bring your entrepreneurial vision to life.

Step-by-Step Guide to Writing a Funding-Worthy Business Plan

Writing a business plan that is compelling and attractive to potential investors is a crucial step in securing funding for your venture. To help you navigate this process, here is a step-by-step guide to writing a funding-worthy business plan.

Research and Gather Information

Before diving into the writing process, it's essential to conduct thorough research and gather all the necessary information. This includes understanding your industry, target market, competitors, and potential investors. Collecting data and market insights will provide a solid foundation for your business plan.

Define Your Business and Goals

Clearly define your business and outline your goals. Describe the nature of your business, the products or services you offer, and what sets you apart from your competitors. Additionally, establish both short-term and long-term goals for your business, focusing on specific, measurable, achievable, relevant, and time-bound (SMART) objectives.

Conduct a Comprehensive Market Analysis

Perform a comprehensive market analysis to gain insights into your target market, customer demographics, and industry trends. Identify your target audience's needs, preferences, and purchasing behavior. Analyze your competitors to understand their strengths, weaknesses, and market positioning. Presenting this information in tables can help organize and present the data effectively.

Market Analysis Factors                                       Data

‍ Target Market Size

Customer Demographics

Industry Trends

Competitor Analysis

Develop a Strong Marketing and Sales Strategy

Outline a robust marketing and sales strategy that highlights how you plan to reach and attract customers. Define your unique selling proposition (USP) and outline your pricing strategy, distribution channels, and promotional activities. This section should demonstrate your understanding of your target market and how you plan to position your business in the competitive landscape.

Outline Your Organizational Structure and Management

Describe your organizational structure and management team. Provide an overview of key personnel, their roles, and their qualifications. Highlight any relevant industry experience, expertise, or accomplishments that make your team well-equipped to execute the business plan successfully. A clear and concise organizational chart can help visualize the structure.

Create Financial Projections and Analysis

Develop financial projections that estimate your business's future revenue, expenses, and profitability. Include a projected income statement, balance sheet, and cash flow statement. Use realistic assumptions based on your market research and industry benchmarks. Additionally, conduct a comprehensive financial analysis that evaluates the financial health and viability of your business.

Craft a Compelling Executive Summary

The executive summary is a concise overview of your entire business plan and should entice readers to continue reading. Summarize the key elements of your plan, including your business concept, market opportunity, competitive advantage, and financial projections. Craft a compelling and engaging executive summary that captures the attention of potential investors.

Polish and Revise Your Business Plan

Once you have completed the initial draft of your business plan, take the time to polish and revise it. Review the content for clarity, coherence, and accuracy. Ensure that your plan flows logically and presents a compelling case for investment. Proofread for grammar and spelling errors. Consider seeking feedback from trusted advisors or professionals to refine your plan further.

By following this step-by-step guide, you can create a comprehensive and compelling business plan that increases your chances of securing funding for your venture. Remember to tailor your plan to the specific needs and preferences of your target audience, providing them with all the necessary information to make an informed investment decision.

Tips and Best Practices for Writing a Funding-Worthy Business Plan

Writing a business plan that is compelling and effective in securing funding requires careful attention to detail and adherence to best practices. Here are some tips to help you create a funding-worthy business plan:

Keep it Clear and Concise

When writing your business plan, it's essential to communicate your ideas clearly and concisely. Avoid using unnecessary jargon or technical terms that may confuse your readers. Use straightforward language and structure your content in a logical manner. Remember, clarity and simplicity are key to ensuring that your business plan is easily understood by potential investors.

Tailor Your Plan to the Target Audience

Each business plan should be tailored to the specific needs and expectations of the target audience. Consider the preferences and priorities of potential investors or lenders and customize your plan accordingly. For example, venture capitalists may be more interested in growth potential and return on investment, while traditional lenders may focus on cash flow and collateral. Understanding your audience will allow you to highlight the aspects of your business that are most relevant to them.

Support Claims with Data and Research

To instill confidence in your business plan, it's important to back up your claims with data and research. Provide market research, industry trends, and competitive analysis to support your assertions about the viability and potential of your business. Including relevant statistics, market projections, and customer surveys can help validate your assumptions and demonstrate that your business plan is grounded in reality.

Seek Professional Help if Needed

Writing a funding-worthy business plan can be a complex and time-consuming task. If you are unsure about certain aspects or need assistance in crafting a compelling plan, consider seeking professional help. Business consultants, accountants, or industry experts can provide valuable insights and guidance to ensure that your business plan is comprehensive, accurate, and persuasive.

Remember, a well-written business plan is not only a tool for securing funding but also a roadmap for the success of your business. By following these tips and best practices, you can increase your chances of creating a business plan that effectively communicates your vision and attracts the attention of potential investors or lenders.

Q: What is a funding-worthy business plan?

A: A funding-worthy business plan is a comprehensive document that outlines your business concept, market opportunity, competitive advantage, financial projections, and other key components to attract potential investors or lenders.

Q: What are the key components of a funding-worthy business plan?

A: The key components of a funding-worthy business plan include an executive summary, company overview, market analysis, product or service description, marketing and sales strategy, organizational structure and management, financial projections and analysis, funding request and use of funds, and appendix.

Q: How long should my business plan be?

A: While there is no strict rule on the length of a business plan, it's generally recommended to keep it concise and focused. A typical business plan can range from 15 to 30 pages. However, the most important thing is to provide all the necessary information in a clear and compelling manner.

Q: Do I need professional help to write my business plan?

A: While you can certainly write your own business plan with careful research and attention to detail, seeking professional help can provide valuable insights and guidance. Business consultants, accountants or industry experts can offer specialized knowledge that can enhance the quality of your business plan.

Q: How often should I update my business plan?

A: Your business plan should be viewed as a living document that evolves over time. It's recommended to review and update your plan regularly to reflect changes in your industry or market conditions. You may need to update it annually or even more frequently if significant changes occur in your business operations or financial performance.

By addressing these frequently asked questions about writing a funding-worthy business plan in your document or during presentations with investors or lenders can demonstrate that you have thoroughly thought through the planning process.

As an entrepreneur seeking funding for your business, a well-crafted and comprehensive business plan is essential. By following the step-by-step guide outlined in this article, you can create a funding-worthy business plan that effectively communicates your vision, market opportunity, competitive advantage, and financial projections to potential investors or lenders. Remember to tailor your plan to the specific needs and expectations of your target audience, keep it clear and concise, support claims with data and research, and seek professional help if needed. With a compelling business plan in hand, you'll be one step closer to turning your entrepreneurial dreams into reality.

https://blog.hubspot.com/sales/how-to-write-business-proposal

https://www.etu.org.za/toolbox/docs/finances/proposal.html

https://www.mybusiness.com.au/how-we-help/grow-your-business/increasing-sales/how-to-write-a-funding-proposal

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Home > Business Plan > Funding Requirements in a Business Plan

funding requirements

Funding Requirements in a Business Plan

… our funding requirements are …

The summary given in the funding requirement section should be consistent with the rest of the business plan. The amount needed, and when it is needed should follow from the detailed financial projections, and the purpose of the funding, sales and marketing, hire of employees, to achieve a milestone etc. should again link in with the rest of the plan,

Funding Requirements Presentation

This is part of the financial projections and Contents of a Business Plan Guide , a series of posts on what each section of a simple business plan should include. The next post in this series is the final section, and deals with the planned exit for investors.

About the Author

Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.

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Proposal Templates > Funding Proposal Template

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funding request for business plan examples

I've had a lot of clients who are entrepreneurs. They come in excited about an idea they have for a small business and ask for advice on how to get funding to start it up. The first thing I do is tell them about my grandfather. That stops them for a minute, but it also ends up inspiring them. You see, my grandfather ran a successful small business. He was a gifted carpenter who went from teaching at a technical college to becoming the finest and most sought-after furniture maker in his city. I was proud of him for his unique skill, but also for the way he grew his business, making connections in the community and ultimately building wealth for his family. He opened doors for himself and for all of us.

I love that entrepreneurial spirit. And I recognize how important it is to our economy. Indeed,  small businesses generated 12.9 million net new jobs over the past 25 years, accounting for two out of every three jobs added to the economy, according to the Small Business Administration.

But as someone in the financial business, I also know it takes more than a good idea and a unique skill to get a small business off the ground. It takes research, planning—and yes, money—to get started.

So the second thing I may say to someone who wants to start their own business is: show me your plan. Have you researched your market? Do you know your competitors, both direct and indirect? What are the start-up costs? Will you need employees? How will you sustain your business if things get tough? Now let's say you've thought it through. You have the idea, the skill, and your plan of action. The next step is finding the cash.

Here are seven funding ideas to help start your business.

1. bootstrapping.

That means exactly what it sounds like—you fund it yourself. It turns out that over 70% of small business owners use personal savings to fund and grow their businesses, according to the U.S. Chamber of Commerce. If you've planned ahead and saved up some seed money, great. But if you're eyeing your 401(k) or other retirement fund as a source of cash, think very carefully—and consider this a last resort. An early withdrawal from a tax-deferred account before age 59½ means you'll pay a 10% penalty on top of ordinary income taxes. Plus, you could even put your retirement at risk. Make sure you understand the potential consequences.

2. Friends and family

This could be a great opportunity to involve your inner circle with your success, and they typically will be your biggest fans. In fact, 38% of startups relied on friends and family over the past five years, according to the U.S. Chamber of Commerce. But here again, a word of caution. Consider getting any financial agreements in writing. If it's a loan, spell out the terms (hopefully interest-free!) and how and when you'll pay it back. If it's an investment, consider making it clear there are no guarantees. You don't want money to tear apart your relationships.

3. SBA microloan

The U.S. Small Business Association offers a variety of loans, but most are geared toward more established small businesses. However, SBA microloans, loans of up to $50,000, could be an alternative to tapping into your IRA if you need a smaller amount for something like working capital, inventory, equipment, or a vehicle. These loans often support businesses operating in underserved communities, businesses of a certain size, or female-run businesses. SBA-backed loans offer a variety of benefits, including competitive terms and counseling and education. It's worth finding out if you qualify.

4. Business loan

An alternative to an SBA loan is a business loan from a bank. A bank loan will generally have more restrictions and will most likely require a personal guarantee. But if the terms are reasonable—and borrowing is part of your business plan—it could make sense.

5. Personal loan

If you have a strong personal credit history and low debt balances, you could be able to find a fixed-rate personal loan at a reasonable rate. But be sure to confirm you can use the loan for business. Also realize that if you miss payments or can't repay the loan, it will hurt your credit score.

6. Crowdfunding

Are you social media savvy? This could be a great way to get your idea out in the marketplace as well as get seed money. Crowdfunding platforms, like Kickstarter and GoFundMe, make it easy to launch your campaign and generate buzz about your business. But you can't just ask for the money; you may need to tell a compelling story. Plus, it could help if you can get your own network to share it far and wide. Crowdfunding typically doesn't need big donations—it needs a lot of donors!

7. Angel investor

This may well be every entrepreneur's dream, but the reality is that finding an angel investor could be unlikely as a startup. An established business may be more likely to attract funds from outside investors. Plus, having investors could mean giving up some control or ownership.

Follow your passion by being prepared.

For anyone who is talented, creative, and driven to make their small business work, I say go for it—but be prepared. Write down your business plan. Carefully consider how much funding you need and your best options for getting it. And be wary about borrowing more than you can pay back.

Last but not least, gather your own team of experts to help you. You may have the skill and the drive, but you may not have all the business expertise needed. Whether it's taxes, sales, marketing, or wherever you need help, consider finding someone who shares your passion but complements your skills. Sure, money is important to get your business off the ground. But, carefully thinking it through and having a support system could help you make it the success you envision.

Schwab has solutions for small businesses.

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The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

How to Create a Business Proposal for Funding

Updated on 26 August 2022

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Creating a business proposal for funding is something that all kinds of organisations need to do at some stage. Funding is necessary for small business development and putting certain projects into action. Without funding, organisations can’t achieve their goals and mission.

Putting together a funding proposal needs to be a carefully planned process. These proposals need to be laid out in the right format, they need to address the right topics, and provide the specific information that funders are looking for. In this guide, we’ll cover everything you need to know about funding proposals, and how to create one the right way.

What is a Proposal for Funding?

A proposal for funding is a document that requests money for a certain project. There are many reasons why businesses need funding, and so a business proposal for funding is used to help secure this. The proposal could be sent to private investors, banks, or part of a grant request.

A business proposal for funding includes everything a potential investor or donor will need to know about the project. This includes an overview of what the business or project is about, why it is important, what the funding will be used for, and possibly how investors could get a return.

Funding proposals are also often used by non-profits to attract donations. Funding proposals are different to business plans in that they solely focus on a specific funding request. While a business plan provides an overview of the entire business, a business funding proposal is more specifically related to an individual request for funding.

How Do You Write a Funding Proposal for a Business?

When writing a business proposal for funding, it is important to include every detail a potential investor or donor would need to know. This should include the following:

  • Overview: The proposal will need to include an overview of the funding request or project. This should provide a quick summary of everything the proposal will cover, including the overall mission and purpose of the project or business.
  • Organisation overview: An overview of your organisation/business. This should include what your business does, what it’s all about, what its background looks like, and an overview of the organisation’s management and staff.
  • Funding details: This is where you go into more detail about the business proposal for funding. This should explain what the project/funding proposal will look like. It should include an overall goal and purpose of the project, and a plan of action to follow once funding has been obtained. This should include any other important details, like a timeline of the project, how it will be assessed, and what communication with stakeholders will look like.
  • Support documents: When writing a funding proposal, it’s important to also include any supporting documents that could support your proposal. This could include things like copies of your financial statements or the constitution of the organisation.

How Do I Write a Funding Proposal Letter?

There are six important steps, or elements, to include. These are:

  • A formal header for the letter
  • An introduction to your organization
  • An overview of your project, explaining the purpose of the project
  • An explanation of why you require funding
  • An explanation of what kind of impact the funding could have
  • A formal closing statement

A funding proposal letter should cover these steps in order. The letter should include all necessary information while remaining concise and to the point.

What Do Funders Look for in a Proposal?

When reading a business proposal for funding, funders want to know exactly where their contributions will go and what will be achieved with them. This means the funding proposal should outline very clear objectives, or goals. These should be realistic, they should clearly address a problem, and they need to be measurable.

The proposal should also outline the specific actionable steps the organisation will take to achieve these objectives, and define how the funding will be used in these steps. Funders will want to see that these objectives are measurable so that they can know exactly what kind of impact their contributions will make.

Knowing how to create a business proposal for funding is necessary for any organisation that needs to ask for funds. This is important for business development and operating certain projects.

Follow the steps above, and make sure to include the right information in your funding proposal. As long as you highlight and cover all of the important details, gaining funding from your proposal will be a much easier process.

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How to Write an RFP for Grants – Everything You Need to Know

Kasia Kowalska

Updated: May 09, 2024

Published: May 08, 2024

Beth Goldowitz, who’s been managing nonprofit organizations for the past 20 years, says that when “managed correctly, grants can keep organizations afloat. They’re stable and predictable, a revenue stream that the organization can count on for the duration of a contract.”

rpf grant preparation

But do you know how long it takes to write a single grant application?

Over 30 hours, and considering that grant writers usually get paid between $25 and $100 per hour, depending on their experience, it’s a significant cost. That’s why it’s so important for nonprofits to decide which grants to pick.

Your organization can make it much easier for applicants to assess if they’re the right fit for your project. It all comes down to getting your RFP for grants right, including adding the right sections and asking the right questions.

Before I dive deeper into the subject, let’s answer the question: what is an RFP for grants?

What is an RFP for grants?

The challenges of writing an rfp for grants, the anatomy of an rfp for grants, how to write an rfp for grants, best practices for writing an rfp for grants, rfp for grants resources.

Download Now: Free RFP Templates

An RFP for grants, or Request for Proposals, is a document issued by grantors such as foundations and government agencies encouraging nonprofit organizations to submit proposals for funding.

Essentially, RFPs offer nonprofits an opportunity to secure funding for various initiatives, irrespective of whether they relate to education, healthcare, or environmental causes.

Each RFP is tailored to achieve a specific goal, so submitted proposals must be in line with the objectives outlined in the RFP.

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Free RFP Templates

Fill out the form to get these templates.

  • One-Pager RFP
  • Longer In-Depth RFP
  • Designed PDF RFP

You're all set!

Click this link to access this resource at any time.

I have spoken to a few people working at nonprofits to find out what challenges they came across, either while creating their own RFPs or preparing RFP proposals. Here are the most common obstacles.

Lack of Sufficient Information About the Procurement Process

The quality of your procurement process will impact the quality of the applications you receive. If you don’t share enough information about it, like the timeline, budget, selection criteria, etc., then two things might happen:

  • You will receive applications that aren’t the right fit for the project.
  • A lot of applicants who are the right fit won’t take part in the process as they’ll feel discouraged by the lack of clarity.

The more detailed and logical your procurement process is, the higher the chances of receiving high-quality proposals.

RFP Grants Failing to Communicate the Vision Clearly

This is an RFP grant challenge that has come up the most frequently.

Gauri Manglik, CEO and co-founder of Instrumentl , says that “many organizations struggle to articulate what specific issues they are trying to address and how the grant they offer will drive impact.”

What often happens is that RFP grant writers take a scattered approach instead of having a cohesive strategic framework. As a result, it’s hard for founders who give out grants to evaluate the proposal’s purpose and potential.

Manglik adds that “the most effective RFPs have a sharply defined focus outlining the goals, target population, and theory of change for proposed activities.”

Not Understanding the Legal Implications of the Grant

Grants often come with terms and conditions that must be followed to stay compliant. Failing to do so might result in penalties or even in grants being revoked.

These terms and conditions should be clear and easy to understand to minimize the risk of breaching them.

Jonathan Feniak, general counsel at LLC Attorney , says, “When writing RFP grant proposals, it’s crucial to understand the legal implications of the grant and factor any liabilities into your plan.

If any IP is developed with grant funding, you must specify ownership rights to avoid potential conflicts with donors later.”

Feniak also notes that proposals should clearly outline your expectations, and you must agree on whether the charity or the investor owns its rights.

“Generally, it’s best to consult your legal team throughout the RFP writing process to manage the risks and clearly outline IP ownership,” adds Feniak.

Ensuring clarity and specificity in the language used.

It’s vital to use a language that is not only clear but also specific so it’s easier for potential bidders to understand what’s expected of them. This applies to the requirements, objectives, and expectations of the project.

Kimberly Wall, co-founder of BibleKeeper , says, “The challenge lies in articulating the project’s goals, objectives, and expected outcomes clearly using words that are not really overwhelming the potential applicants with unnecessary details.”

Using the right language will eliminate confusion among nonprofits and make sure that their proposals accurately correspond to the needs of the RFP issuer.

RFPs for grants come in two forms: concise, short tables, where information is filled out in bullet points, and longer ones, which cover each section in detail.

The former aims to give a high-level overview, while the latter is where applicants take a deep dive into their proposal.

So, there isn’t such a thing as an “ideal” length for an RFP. These types of documents can take up multiple pages and usually function as downloadable PDFs.

If you’re wondering what elements grantors should include, then here’s an RFP structure we recommend at HubSpot.

RFP: [Project Name]

Proposal Due By: [Date]

[Organization Name]

In addition to the name, this section could also feature a short overview of your mission. Don’t include a long history of your organization. Instead, use this space to provide a bit of context on what it does and its target market.

Project Overview

A brief introduction to the project itself to let nonprofits know right away if it’s something worth bidding on — no longer than 1-2 paragraphs.

Project Goals

This section identifies what you hope to accomplish through assigning funds to relevant organizations. Specify what you’ll see as a “win” so everyone is on the same page.

Scope of Work

A description of the project and a scope of work — either detailed, if it’s a long RFP, or bullet points if it’s short.

Current Roadblocks and Barriers to Success

In this section, mention any potential constraints that could either disqualify certain candidates or increase the operational complexity of meeting goals.

Evaluation Metrics and Criteria

Here, you outline how you’re going to choose grantees. There are different approaches — some companies use simple “yes” or “no” evaluations to check if a proposal meets the project objectives.

Other organizations use percentages to score more important criteria higher than others.

Submission Requirements

Exact guidelines bidders must adhere to.

Project Due By

If there is a specific project delivery date, mention it in the RFP. This will help you filter out applicants who can’t guarantee completing it within the required timeline.

Here, you should include the target budget. Specify if this budget will be distributed among multiple organizations or assigned to a single grantee.

General Conditions of Contract

This could include information like:

  • Applicant’s legal status.
  • Your stance on subcontracting.
  • Indemnification, insurance, and liabilities.

Some templates also suggest asking questions that you expect bidders to answer — these can serve as a way to further check their alignment with your mission.

So, now that you know what goes into an RFP, let’s learn how to write them. Below, I’ll describe the steps you should take when tackling this paperwork.

In each section, I’ll work through the steps, as I build a mock RFP for sustainability nonprofits.

My sample organization, Earthly Partners, is looking to fund sustainability projects based in the Southwestern United States. Let's get started.

How to Write an RFP for Grants

1. Identify the objectives.

In this step, I want to list all the key information, like goals, timeline, budget, and applicant profile.

As you gather these, you’ll likely come across some informational gaps or considerations that require expert knowledge, like legal considerations and grantor/grantee obligations.

This is an important preliminary stage, which should end with a complete list of information you’ll need to evaluate bidders.

Testing It Out

So, what does my organization, Earthly Partners, want to accomplish? We want to focus on fighting climate change in the South West, particularly through drought relief and community advocacy.

We are able to provide grants of up to $50,000 to each nonprofit.

2. Write an introduction.

Now, I want to provide a bit of information about the organization and the area we focus on. I may also include my organization’s values, current challenges, and the problems we would like to address.

Here is an example of an intro to Earthly Partners’ RFP. Here, we highlight the mission that we focus on and a little bit about our mock organization’s history.

Earthly Partners is pleased to announce the availability of grant funding to support projects that align with our mission of environmental conservation and advocacy.

Established in 2010, Earthly Partners has been dedicated to promoting eco-friendly practices, water conservation, and community empowerment. We recognize the importance of fostering innovative solutions and collaborations within our community, and through this grant opportunity, we aim to support projects that demonstrate creativity, sustainability, and significant impact.

We are most interested in projects focused on community advocacy for climate policies and drought relief.

3. Provide a project description.

This section should serve as a high-level overview. Potential applicants will look at it to quickly assess whether they can propose a relevant project within the required timeline and available budget.

Here’s my project description for my mock sustainability nonprofit:

Grant Purpose: The purpose of this Request for Proposals (RFP) is to solicit proposals for projects that address environmental conservation, climate change mitigation, or sustainable development.

We seek proposals that offer innovative approaches, foster community engagement, and contribute to the long-term sustainability and resilience of ecosystems and communities.

Grant Details:

  • Total Funding Available: $50,000
  • Grant Duration: 12 months
  • Grant Amount: Grants may range from $2,500 to $10,000
  • Eligibility: Nonprofit organizations and community groups operating within the Greater Metropolitan Area are eligible to apply.
  • Application Deadline: July 31, 2024.

4. List clear requirements.

Here, I can specify what exactly I need to know about the proposal. That includes asking the applicants for the project description and how it will help fulfill the goals of your grant.

Continuing with the sustainability grant project from above, this section could look like the following:

Proposal Guidelines:

Applicants are invited to submit proposals that address the following key components.

  • Project Description: Provide a detailed description of the proposed project, including its objectives, activities, target population, and anticipated outcomes.
  • Project Impact: Clearly articulate the potential impact of the project on the environment or the local community. Describe how the project will contribute to positive change and address identified environmental or social needs.
  • Innovation and Creativity: Highlight any innovative approaches or strategies proposed to address the identified environmental or social challenge. We encourage applicants to think creatively and propose solutions that may be outside traditional approaches.
  • Sustainability: Demonstrate the project’s sustainability beyond the grant period. Describe plans for ongoing funding, partnerships, and stakeholder engagement to ensure the long-term success of the project.
  • Roadblocks to Success: Identify potential challenges or roadblocks that the project may face and describe strategies to overcome them. Consider factors such as regulatory hurdles, community resistance, funding constraints, or technical limitations.
  • Budget and Timeline: Provide a detailed budget that outlines how grant funds will be used. Include a project timeline with key milestones and deliverables.

5. Include a submission deadline.

Here, I want to call out the deadline for submissions and explain my preferred way of submitting proposals.

For Earthly Partners, I want to have proposals by the end of July. I call that out, along with my preferred submission format, below.

Submission Instructions:

Please submit your proposal electronically to [email address] no later than July 31, 2024. Proposals should be submitted in PDF format and include the organization's name, contact information, and the title of the proposed project in the subject line.

​​​​6. Be clear on the evaluation factors.

It’s important to explain all the elements your organization will pay attention to while evaluating applications.

Applicants who do not meet your criteria will likely withdraw from submitting their proposal if they don’t see they’re a good fit. This, in turn, will help you pre-qualify organizations and shorten the selection process.

For Earthly Partners, I want to explain how we plan to evaluate applicants and give an overview of next steps. This allows me to explain what projects are likely to receive funding and the timeline for these evaluations.

Evaluation Process:

Proposals will be evaluated based on the following criteria:

  • Alignment with Earthly Partner’s mission and grant objectives.
  • Clarity and feasibility of the project proposal.
  • Potential impact and sustainability of the project.
  • Innovation and creativity of proposed approaches.
  • Budget justification and cost-effectiveness.

Notification:

Applicants will be notified of funding decisions by August 31, 2024. Successful applicants will receive further instructions regarding grant agreements, reporting requirements, and funding disbursement.

7. Proofread and edit the document.

I use the editing process to make sure that all the necessary elements are included in my RFP and that the instructions are easy to follow.

Failing to use easy-to-understand language might result in low-quality submissions. It’s a good idea to ask a few of your colleagues for feedback to ensure you’ve not missed any important details.

Here are a few considerations to take into account while preparing your RFP.

best practices rfp

Dedicate time to selecting the right eligibility and application criteria.

This is, arguably, the single most important section of your RFP — perhaps even more important than “budget,” as NGOs will want to quickly assess their eligibility.

Esther Strauss, co-founder of Step by Step Business , agrees:

“Given the diversity of causes we support, from education to environmental conservation, finding a grant that provides the necessary funding and also aligns with our goals can be like searching for a needle in a haystack.”

Strauss says that, whenever applying for a grant herself, she needs to know if her organization can genuinely meet the grantor’s requirements while staying true to the organization’s objectives and values.

The need to get the application “right” can also extend to selecting the right application format or method. “The pressure to get it right is immense, as these grants can significantly impact our ability to serve our community,” she adds.

So, how can you make it easier for applicants to assess if they’re the right fit and avoid application mistakes?

Include clear information like:

  • Only bidders who meet at least X out of Y criteria will be considered.
  • Proposals must be sent in [FORMAT] by [DEADLINE]. Applications sent in through other channels will not be considered.
  • Application needs to include a proposed schedule.
  • Proposals must be shorter than [NUMBER] pages. Failure to comply with this guideline will result in an automatic rejection.

For a real-life example, you can also look at this RFP proposal from the U.N. , which keeps the requirement descriptions clear and concise.

As you can see, the quality of the proposals and organization fit lies largely in your hands.

grant examples

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Simplify negotiations by including key contract terms.

Earlier, I’ve mentioned that many RFP grant writers struggle with translating legal requirements in the RFP.

Wayne Tung of Sendero wrote a great piece on this subject, encouraging RFP publishers to give it the same level of attention as requirements and scope.

“Many people do not include contract term requirements, such as legal and commercial terms, in RFPs. This results in prolonged negotiations,” or even failed grants, he says.

Featuring the main contract terms in the RFP shows respect for both parties — you as the project operator and the organizations seeking funding.

Sometimes, fewer questions are better.

I spent quite some time going through Reddit threads popular among the RFP community, and one of the most interesting points I’ve seen was about question-fit.

One Redditor, roger_the_virus , blatantly says grantors should avoid “useless questions that won’t provide helpful answers. I do my best to make sure we’re not asking for a bunch of information we don’t need and won’t do anything with.”

That said, when it comes to questions, don’t automatically discredit applicants who can’t answer all of them. Offer organizations that have pitched a fitting project and budget the opportunity to ask follow-up questions.

This will prevent them from submitting answers with low informational value, i.e., responses that are vague or unrelated to your query.

Speaking of supplementary questions, this leads to the next point.

Provide clear contact information.

The larger your organization, the less likely it is that there will only be one person responsible for proposal reception and answering questions from applicants.

However, even if it’s an entire office, you should provide contact information with the relevant communication method — either walk-ins between a specific time, like Monday to Friday, email address, or phone number.

Bear in mind that many nonprofits apply to RFPs ongoingly and will only do so if they see that the grantor can help with applicant requests. Here’s an opinion on Reddit from an RFP proposal writer, which garnered multiple upvotes:

“I won’t respond to an RFP unless they commit to giving me their time for detailed discovery and a chance for them to read me the RFP requirements line by line and why they’re important.”

what is an rfp for grants; insights from Reddit

Disclose any potential blockers.

Finally, be transparent about any potential roadblocks winning bidders might come across.

When applying for grants, NGOs need to know if they have the means to complete the project and if there are any other issues, like conflict of interest.

For example, say your organization wishes to assign funds to boost literacy rates in remote rural areas. One of the prerequisites could be having established relationships within target communities.

Such an approach will help preselect applicants, particularly those who don’t have the operational capacity to navigate around any potential constraints.

Here are three resources that might come in handy while drafting an RFP for grants.

1. Candid’s Foundation Directory

Candid’s Foundation Directory shares essential information to help you make smart and strategic funding requests. These resources and tools give you access to funding opportunities that go beyond RFPs.

It includes a list of foundations, including their profiles, funding priorities, application procedures, and contact information.

RFP writers can go through the proposals that have been published already and use them as inspiration to create their own.

2. Free RFP Templates From HubSpot

HubSpot’s Free RFP templates are a great starter kit and will help you draft your request in no time.

This resource gives you two RFP versions — a shorter one and a longer one. Both documents are fully customizable, allowing you to easily add your company name and logo.

You can download them in PDF or turn them into a Microsoft Word or Google Docs file.

These templates include all the crucial elements of an RFP, such as:

  • Company name and background.
  • Project goals.
  • Expected project timeline.
  • Submission requirements.
  • Evaluation criteria.
  • Potential roadblocks.

Each section comes with a quick explainer to help you get the contents right.

offers-Apr-29-2024-10-23-29-4539-PM

Download HubSpot’s RFP Templates for Free

3. Reddit – RFP Subreddits

Unsurprisingly, Reddit is one of the best places to learn from RFP experts as well as understand the applicant’s perspective.

I especially recommend following the RFP subreddit and navigating into more intricate conversations and topics from there.

While many of the discussions cover not only grants but also commercial projects, the advice is universal.

It also goes without saying that you shouldn’t just lurk around the corner — if there’s a challenge you’ve come across while drafting your RFP, this is the community you should ask for advice.

Getting Your RFP for Grants Right

Writing the RFP is the first — and arguably — most important step in the entire grant process. How so? It’s up to you as the grantor to select the right questions and criteria and explain the purpose of the project.

Remember, the more information you provide potential applicants, the easier it will be for them to assess if they fit the grant objectives. And this, in turn, will lead to a higher quality of proposals.

While there isn’t a one-size-fits-all template for each project, there are certain must-have sections to include. So, refer to this article to get a head start next time you need to create an RFP for grants.

rfp templates

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