WHY BUSINESS PLANS DON’T GET FUNDED
You can only achieve success in life if you apply the formulas for success in the right manner. If you write an effective business plan, your business is sure to get funded by various companies such as www.newcityfinancial.com. Any business plan is basically a management tool that funders use to manage due diligence on business proposals that need their own hard earned money. If your business is investment ready then New City Financial will never hesitate to fund it. Why certain businesses do not get funding is because they do not analyze the business plans in the right manner. In this article we will focus on the reasons why some business plans do not get funded.
Reasons for rejection
There are mainly top 5 reasons why a business plan is rejected for any form of funding. These reasons are listed below:
- If your business lacks the imperative marketing strategy that is required for t to establish itself in the industry, chances are your business plan will be rejected for funding.
- The management team appointed is incompetent and does not have what it takes to overcome the hurdles in the path of success.
- The strategy of business is not certain and unclear thereby making the funder’s money at risk.
- The entire financial projections are based on optimistic hypothesis even when the tests related to business show high chances of failure in the market.
Until and unless, your business has a strategy to overcome all of the above factors, there is a very high chance of your business not getting the funds. All funders have a viability tool that they use to test the viability of your business and its ability to sustain in the market. Several small businesses are clueless about these tools and therefore fail the viability test and hence getting funds becomes a lot difficult at all levels. Therefore, we encourage you to be aware of all the above points and cover them diligently before going to investors for funds in order to avoid rejections.