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Look to finance the "most likely" case, or even "worst" case, rather than for the "best" case as revealed by sensitivity analysis.

Summarize and tabulate funding requirements. Indicate planned uses, possible sources and forms (equity, loans, grants, credit etc.), likely timing, security offered and desired terms. Mention any conditional or firm funding commitments already secured.

For the benefit of prospective investors, indicate the likely equity funding required; range of the equity stakes on offer; exit routes (IPO, trade sale, buy-back etc.); board representation; and make a stab at the projected returns on their investment.

If presenting funding proposals, bear in mind the golden rule - he who has the gold makes all the rules. If valuing your business, be realistic and base it on more than one method of valuation e.g. net asset value, price/earnings ratio, capitalization/revenue ratio, industry yardsticks and so on. Take account of market sentiment/conditions, "going rates", maturity of the business and degree of risk associated with its plans.

You may wish to withhold specific funding offers until you have met possible investors or lenders face-to-face and heard their initial reactions. In this case, this section would be confined to a description of funding needs and possible uses, sources and forms.

This section need not exceed a page or so.

Note: Free-Plan, a 150-page Word-based template based on this business plan guide, can be downloaded for free here.

Additional Help
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The Excel-based financial planner, Exl-Plan, contains extensive facilities for doing sensitivity analyses. The best way to establish the funding needs of a business under different scenarios is to run Exl-Plan without any assumptions about future funding and, for each scenario, take note of the timing and value of the projected peak cash deficits.

Help with Financial Projections

	Exl-Plan - Comprehensive Financial Projections
	Requires: Excel 5, 7, 8, 95, 97, 2000 or XP with Windows 95/98/Me/NT/2000/XP Price: Free to US$ 309.00
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