Even if you are not seeking funding to help you with your business at the current time, you should include the funding request in your business plan.
Just for context, here are a few reasons people seek funding.
- Debt retirement
- Add additional crews
- New equipment purchases
- Everyday working capital
A recent survey by Lawn & Landscape showed 14% of survey respondents said that having access to more capital was one of their biggest issues. You want your business plan to be up to date in the event you want to get an increase in your credit limit with your bank, or seek other funding, to take advantage of new business opportunities that may materialize.
Make sure you have the amount you are requesting included in the funding request section of your business plan. Include the funding you would like now, and the potential funding requirements you will need over the next three to five years.
You will want to be able to detail what the funding is to be used for, and what form of funding you are seeking, for example debt or equity. List the terms you are seeking for the funding.
Lenders and strategic investors alike need to be aware of any strategic future considerations such as selling your company, acquiring a company or any event that may impact your ability to fulfill your obligations on a loan.
To support your funding request, you will need to present historical financial information and prospective financial information. To learn more about historical and prospective financial information go the financial projections of the business plan.