The funding plan for your bakery is a piece of your bakery's business plan that shows how you intend to use and maintain your bakery's funding over a certain period of time. The creation of a funding plan is common for nonprofits, however, start-up businesses are also likely to use them to make investors and bankers see their business as financially credible.
The Pieces of an Effective Funding Plan
An effective funding plan must be detailed, realistic, and goal-oriented. A strong funding plan will let investors know that you are serious about your bakery's financial success and that you have done all the research necessary. To write an effective funding plan, you should include:
- Your Bakery’s Mission Statement
- A mission statement describes why your bakery wants to serve its products and who it wants to serve those products to. It is important for investors to see your mission statement as it tells them why your bakery should exist.
- Assessment of funding needs
- To let your investors know why you are looking for funding, you need to create a clear assessment of funding needs for your bakery. The assessment of funding needs lets investors know that you are knowledgeable about your bakery, and have an active role in improving it.
- Funding goals
- Your funding goals should detail the money you would like to raise. Investors like to see goal-oriented business owners as goal oriented people are often more apt to achieve success.
- Funding objectives
- Funding objections are the milestones that mark when you have achieved funding goals, or when you are on the right path to achieve those goals. Creating milestones is especially effective for achieving larger goals that may take more time.
- Action plan
- An action plan is a detailed description of what actions will be taken to make sure funding is successful. A good action plan lets your investors know that you have thought out your plans wisely and have done adequate research to ensure success.
Writing a successful funding plan should not be a stressful event. By simply knowing what you want to achieve and how extra funding will help you achieve your goals, you can write an effective funding plan. Write detailed and thorough explanations in your funding plan to prove that you are knowledgeable and serious. Funding plans are a great way to attract attention to the financial viability of your bakery, and a well-written one is sure to help your bakery secure the extra financing needs to open its doors