The document discusses using a business plan to source funds and what financiers look for in a business plan. It identifies two main types of funding: equity financing which requires relinquishing ownership shares, and debt financing through loans. For equity funding, financiers examine the business concept, market analysis, management team experience, and organizational structure. For debt financing, they analyze the cash flow forecast and ability to repay the loan. A strong business plan should include an executive summary, market analysis, operations, management team, risks, implementation timeline, and financial projections to attract potential investors. When presenting the plan, it should be clear, compelling, and the founder must be prepared to defend the proposal.

1. Using your business plan to
source for funds
By
Angela Itambo-Ihunweze

2. INTRODUCTION TO THE TOPIC
A business plan is a written document
used by the writer to communicate his or
her intentions of the business to readers
other than him or herself.
It contains all the elements that will ensure
the business in question excels
irrespective of uncertainty and risks

3. Objectives of the lecture is as follows
 We will identify the various types of
funding
 What financers of this various funds look
at in your business plan
 What makes up a business plan
 Presenting your business plan to investors
 FYI

4. The various types of funds
Financing are classified into two:-
Equity financing; This funding requires the promoter to
relinquish part of the ownership to the funds provider.
The funds provider demands a share in the profit in form
of dividend. To ensure the funds provider enjoys this
benefit he or she will demand involvement in the
management of the business either directly or employing
a representative to do so. Equity funding could be
informal e.g Angel Financing from loved ones, wealthy
friends or individuals. Example of some one who kick
started his business with this form of funding is Henry
Ford founder of Ford motors

5. Equity funding continued
Another form of equity financing is venture
capital; this are equity funding from
institutional investors. They represent
financial institutions . In Nigeria we have
institutions such as First Funds of First
Bank.

6. Funds are classified into
two:-(Part 2)
The second category of funding
Debt Financing:- Investors who provide this funds
are only interested in providing short term
funding, this are in form of loans in exchange for
collateral. The providers of this funds are not
interested in being part owners of the business
or ventures. Providers of this funds could be
friends, financial institutions. Irrespective of the
outcome of the business, the principal and
interest of the funds will have to be paid at the
agreed time

7. What financers of this various funds
look at in your business plan
Equity Funding:-
To ensure the objective for funding is achieved , investors of this form
of funding when reading a business plan are after the following:-
 The business concept matched with the market analysis
 Is this business a short lived phenomenon or it is here to stay.
 Who will manage the business? They will want to see the
organizational structure, have you gathered competent hands?
Research have shown that most equity financers will bet on the
horse rider, rather than the horse. Globally it has been accepted that
with an experienced team, there are chances the business will
succeed. That is why in contemporary times you witnessed
pouching of staff to a new organization
Action point; you must be ready to assemble a team that is
experienced not only on paper, but also in reality. The ideals of
this funding is if you win they win, if you loose they loose.

8. What financers of this various funds
look at in your business plan Part 2
Unlike Equity financing, the debt financer is after
the financials;-
 The cash flow of the business plan, when will
revenue start coming in
 Is it feasible, they also look at the proposed
sales forecast
 The collateral in exchange, can it be turned into
cash to retrieve the sum that was invested?
Action point:- You must carefully analyze your
expected sales forecast and draw up a cash
flow that will be realistic and convincing.

9. What makes up a business plan
 Cover page
 Table of contents
 Executive Summary
 Introduction to the business concept
 Industry/Market analysis
 Business & strategy
 Operational structure
 Personel and organizational structure
 Risks analysis
 Implementation time table
 Financial analysis

10. Presenting a business plan
 Before writing, ensure what style will be preferred by the reader
 Even if you engaged an outsider to write the business plan,
ensure he or she writes it from you point of view.
 It should be typed
 Minimum of Font size 12
 The language should be fun to read
 Not too lengthy except you are attaching drawings or documents
that is mandatory .
 The executive summary should be captivating to want the reader
to read more and act
 A cover letter should be accompanied when submitting your
business plan
 Protecting your business plan, add a caveat emptor on non
disclosure of the information read

11. Presenting a business plan Part 2
 Ensure it is proofread
 Be ready at all times to defend your plan
impromptu
 Even when submitting don’t divulge all
your business secrets

12. About Angela Itambo-Ihunweze
She is the CEO of ANGELA ITAMBO COMPANY. They
company offers the following services and products:-
 They business advisory to entrepreneurs
 They organize training for entrepreneurs and their staff
on business management topics
 They publish reports and merchandise other related
information products on entrepreneurship
 They write business plans
Contact Phone number:- 08033280453
THE END. THANK YOU