How to Prepare a Cost and Financing Plan

When you are preparing a business plan for review at a lending institution, it is vitally important that you include a cost and financing section.

This section will preclude the financial statements and will outline exactly how much you are asking for and how you plan on financing the start up costs.

When a business plan reviewer looks at a business plan, they want to know exactly how much you are asking for and how you plan on paying for the costs. This way, the reviewer knows where the money is coming from.

I can't tell you how many business plans I get that have no concrete costs and financing plan.

This only serves to upset the reviewer and believe me, they will simply send it back if they don't know what your asking for and how you plan on paying for the costs.

The cost and financing section will include a breakdown of costs in terms of the capital and operational, marketing, and business support costs.

The costs can be broken down by dollars and percentages or both. I prefer both. Remember, if the business plan reviewer doesn't know what your asking for, how are they supposed to put a recommendation together?

Always include a cost and financing section that gives the reader an idea of what you are asking for.

Click here to see an example of a cost and financing plan

Click here for a cost and financing template

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