Do you have a business plan?

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At any stage of a business’s growth and development, an essential component of continuing success is having an updated 3- to 5-year plan that outlines how a company will grow its business and generate revenue. A good plan will outline a business’s current state, market analysis, and owner experience as well as a vision of where, when, and how the business is to grow. The business plan serves as a guiding document, allowing all employees and shareholders to have a unified vision of the business goals, a trajectory for goal achievements, and a framework for assessment and evaluation.

Having a comprehensive business plan is especially important when seeking new lenders and investors. A plan should show the company’s long-term ability to generate profit in order to meet debt obligations and become self-sufficient. Potential investors, whether large or small, will want reassurance that your business has a plan for financial stability in the future. It will also help you better assess what type and size of funding is necessary.

While this directory is not intended to serve as a business planning guide, there are several resources food business owners can access to create a business plan:

WHAT TYPE OF FINANCING DO YOU NEED?

Before using this directory, you should have a clear idea of the type of financing that is best for your business. Use educational tools like Capital Compass, created by the New Hampshire Community Loan Fund, to help understand types of financing. These tools are not intended to be a financier or make decisions for the business owner.

Useful Definitions from Capital Compass

Debt: Traditional method of a lender offering a certain dollar value of credit (loans)
Royalty: Growth financing structured as a revenue-sharing agreement
Equity: Selling shares of your company

Center for Regional Food Systems