How to Write a Business Plan For Funding: A Basic Step-by-Step Guide for Work and Income Clients
- wisestart
- Feb 20
- 5 min read
Updated: Feb 25
Starting a business is an exciting journey, but one of the hurdles is writing a business plan and if you are are needing to apply for a business grant or funding, a well-written, comprehensive business plan will greatly improve your chances of being approved. It helps investors and stakeholders understand how a business will operate and profit.
So see yourself as an Investor, just as investors, banks, and Stakeholders would,
Work and Income will require a business plan to ensure your business idea is viable, sustainable, and financially sound. They want to see that you’ve thoroughly thought through your business and can realistically make it work. So, if you don't have one or don't know how to write one, and you are considering applying for a business grant through
Work and Income, see the different types of business funding assistance that you may qualify for below
Flexi-Wage for Self-Employment – Financial support for people starting a business who may need help covering living costs.
The first step is that you need to have a Business Plan. So before you make an appointment with your case manager, Let's get this right the first time by being prepared in advance!
What Work and Income Looks for in a Business Plan:
Clear Business Concept – They need to understand exactly what your business does, who your customers are, and how you plan to make money.
Market Research – Evidence that there is demand for your product or service and that you’ve identified your competitors.
Realistic Financial Projections – They want to see that your pricing, expected revenue, and expenses make sense and that you can cover your costs.
Sustainability – Proof that your business can generate income long-term and won’t collapse within months.
Risk Assessment – Understanding potential risks and how you plan to handle them shows that you’re prepared.
Operational Feasibility – A clear structure of how your business will run daily, including suppliers, location, and equipment needs.
Personal Capability – They assess if you have the skills and experience needed or if you require further training.
Why Work and Income Require a Business Plan:
To ensure responsible funding: They want to invest in businesses that have a good chance of success, especially if financial support is being provided.
To help you succeed: Writing a business plan forces you to think about challenges and opportunities, helping you set clear goals.
To provide structure: Many first-time business owners don’t know where to start—this ensures you cover all essential aspects.
To measure progress: If you receive funding or a grant, they may check back to see if you are following the plan and meeting your targets.
What information should be in a business plan?
So Let's,
BRAINSTORM
Key questions to consider: Write down ideas related to your business vision, finances, and marketing.
Potential challenges & solutions: Identify obstacles and how you'll overcome them.
Customer needs & pain points: What problems do your customers face, and how will you solve them?
Unique selling points (USP): What makes your business different from competitors?
Revenue streams & pricing strategies: How will you make money, and what will your pricing model be?
HOW?
1. Start with Your Vision
A clear vision is the foundation of any business plan. Ask yourself:
What problem does your business solve?
Who is your target market?
What makes your business unique?
Your vision statement should be concise but inspiring. It will set the tone for the rest of your plan.
2. Include a Detailed Business Description
Provide a thorough overview of your business. This section should answer questions like:
What products or services are you offering?
Who are your competitors, and how will you stand out?
Where will you operate, and what’s your long-term goal?
The more specific you are, the more confident your readers will feel about your business’s potential.
3. Create a Financial Plan
Work and Income wants to see that your business is financially viable. Be sure to include:
A detailed budget, including startup costs and ongoing expenses.
Projected income and profit margins for at least the first year.
A plan for managing cash flow.
If you’re unsure how to calculate these figures, consulting a professional can make a big difference.
4. Outline Your Marketing Strategy
A great business idea needs a great marketing plan to match. Explain how you will:
Reach your target audience.
Promote your business through social media, local advertising, or other channels.
Build a brand that resonates with customers.
Remember, a good marketing strategy shows how you’ll generate revenue and attract clients.
5. Showcase Your Expertise
Your skills, experience, and qualifications matter. Share why you’re the best person to bring this business idea to life. Include any certifications, training, or work experience relevant to your industry.
So let's look at how your business plan would look once completed, using a cleaning service business as an example below:
1. Executive Summary
Example: "ABC Cleaning Services is a home and office cleaning business offering affordable and eco-friendly cleaning solutions in Wellington. Our goal is to provide reliable, high-quality service to busy professionals and small businesses. Within the first year, we aim to secure 30 regular clients and generate $50,000 in revenue."
TIP: Write the Executive Summary Last
2. Business Description
Example: "ABC Cleaning Services is a sole trader business based in Wellington. It will operate as a mobile service, visiting clients' homes and offices. The cleaning industry is growing, with increasing demand for professional cleaning services due to busy lifestyles."
3. Market Research
Example: "Our target market includes working professionals and small businesses needing regular cleaning services. Our competitors include XYZ Cleaning Ltd, but our key advantage is affordability and personalized service."
4. Marketing and Sales Strategy
Example: "We will promote ABC Cleaning Services through social media, local flyers, and word-of-mouth referrals. We will offer a first-time customer discount and a loyalty program for repeat clients."
5. Operations Plan
Example: "Cleaning jobs will be booked through phone or email. I will transport cleaning equipment in my vehicle and use environmentally friendly products sourced from a local supplier. Service hours will be from 8 AM to 6 PM, Monday to Saturday."
6. Management and Organization
Example: "The business will be run by me, Jane Doe. I have 3 years of experience in the cleaning industry. As the business grows, I plan to hire one additional cleaner to help manage the workload."
7. Financial Plan
Example: "Startup costs include $500 for cleaning supplies, $1,000 for branding and marketing, and $300 for insurance. Estimated monthly expenses are $2,000, with a projected monthly income of $5,000 based on servicing _______ (enter number) of clients per month." You will need to have based on your projected monthly income.
TIP: Gather proof of these costs, for example, Quotes, etc.
8. Risk Analysis
Example: "One major risk is low customer demand in the first few months. To mitigate this, I will focus on aggressive marketing and offer introductory discounts. A competitor price war is another risk, but I will differentiate my services by emphasizing eco-friendly products and superior customer service."
9. Appendices
Example: "Included are my resume, supplier quotes, sample client contracts, and market research data from the local business directory."
This structured approach ensures the business plan meets Work and Income’s expectations while being clear and professional.
Final Thoughts
Creating a business plan can feel overwhelming, but it doesn't have to be, taking it step by step makes the process manageable. At Wise Start, we are happy to assist you in writing a business plan tailored to your business and Work and Income requirements.
If you’re ready to get started or need support and guidance, reach out today!
Everything starts with an idea.
You need to document, vet, and organize all your new business ideas.
DON'T document your idea on the back of a napkin.
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