In the Funds Required and Uses section of the business plan, describe how much money is required to finance the business, where these funds will be spent, and when they'll be needed. Potential uses include:
- Research and development. Research and development funds will be spent on all current and future activities related to the development of new products and services.
- Fixed asset purchases. Funds might be used to purchase long-term assets that are to be used by the business and aren't expected to be converted into cash in an upcoming fiscal year. Examples include real estate, manufacturing equipment, or furniture.
- Working capital. Working capital is money you will use to pay short-term debts like salaries or the purchase of raw materials. These are the funds you will need to keep the business operating day-to-day before it starts turning a profit.
The key to a successful Funds Required and Uses section is to be sure that the assumptions you've used to develop the other sections of the plan are sound and are consistently represented in this section.