In some instances, it may be possible to make an agreement contingent upon obtaining business financing. Thinking it will cost less and take less time to get into business than it actually will. It will cost more and take longer than you imagine. This discussion by no means covers all start-up requirements that you must be prepared to handle or all the common errors we see potential business owners make. Be cautious, be prepared, and be flexible.
Many people talk about a business plan when they really mean a financing request.
If you are seeking significant private investment, the two documents will require much of the same information. If you will seek traditional commercial financing, which is much more likely, the financing request will usually be less comprehensive. A financing request is for providing information to a lender. If you did not do an honest analysis of your financial position in Steps 3 and 5, you have probably invested a lot of time only to learn that you will not be able to borrow the money to start your business. You should also go back to Step 1.