Yes, there should be a difference between the two! Before exploring that let’s cover off what all business plans should have in common. First they should all be professionally prepared with an emphasis on completeness of information and richness of content. Second they must be perfectly written, error free, clear and concise. Third they should address the needs of your audience. So you should ask yourself, is your audience a lender or an investor ? Their needs are different!

A lender is letting you have money now on the understanding that you will be able to repay on a regular basis in sums that include interest that will eventually pay off the loan within a given time frame. He wants to see early positive cash flows that match the terms of the loan and preferably more so. He needs to have confidence in your abilities and your commitment to success. Collateral will be required where there is a shortage of other assets. He will want to see that proven business ratios are attainable. In other words he wants to be assured that the loan will be repaid in accordance with the terms.

An investor is buying into your business idea. He will be looking for growth potential. He will want to see concrete marketing plans, sales forecasts and profitability indicators. His interest will be long term in most cases, which means having long term forecasting of financial information, 5 year or even 10 year. He will examine management resources and their commitment to a potentially large success.

So don’t assume that your business plan is a “one size fits all”. Some portions of it will, but when it comes to financing your business you need to fine-tune it to hit the target you are seeking: Investor or Lender. For this, it is a good idea to get help from the experts! That is where Business Plans Canada come in. Have a look at their website www.businessplanscanada.com to get an idea of the many ways in which they can help. It could be one of the most important, early decisions that you make!