Business Plan - Necessary Financing

Most business plans also set forth how much capital is needed to sustain operations for five years. According to an April 2000 issue of Tampa Bay Business Journal, "Most new businesses stumble and fail somewhere during the first and fifth year. One of the biggest stumbling blocks is not having the cash when you need it to grow your business. The better you anticipate your need for capital the less it's likely to cost. That's why its important to have a business plan." Along with the dollar amount needed, most business plans detail plans for securing the needed funding, such as selling off a portion of the company to private investors or conducting an IPO.