August 15, 2025
Are you ready to take your small business to the next level but not sure how to secure the growth capital you need? It starts with a strong business plan.
A business plan is one of the most important tools a small business can use to position itself for growth capital. And it’s not just something for a startup seeking initial investors. A strong business plan should be in place and up to date as the company matures and seeks growth capital to finance the future. For companies operating in capital-starved communities, it is also a key step toward leveling the playing field and gaining access to small business funding that can drive meaningful impact. According to UpMetrics, businesses with a formal business plan secure 133% more investment capital than those without one.
At Advantage Capital, we review hundreds of small business plans each year, and together with our partners, we have invested more than $5 billion into small businesses, affordable housing, and renewable energy initiatives over the past three decades. In 2024, we invested $230 million across 82 small businesses across the nation, helping support more than 5,200 quality jobs. These investments, and the plans behind them, offer important lessons on what small business investors look for and how entrepreneurs can set themselves apart.
Based on our experience, here are three key components that earn investor confidence.
1. A Clear & Credible Path to Growth
Investors want to understand how your business will grow, and whether you have thought critically about how business capital will accelerate that growth. A solid business plan for growth should detail your target market, unique value proposition, and growth strategy.
High-performing plans typically include:
- A well-defined market opportunity, supported by credible third-party data
- Clear growth milestones tied to realistic revenue assumptions
- An explanation of how small business capital will achieve those goals
In short, the best plans do not just share a vision. They demonstrate that the business has a disciplined path to achieving it.
2. A Strong Leadership Team & Operational Readiness
The strength of your team is one of the biggest factors business investors consider. A good idea is only as strong as the people executing it.
Use your growth-focused business plan to explain:
- Who is leading the business and what relevant experience they bring
- How roles and responsibilities are divided
- Any systems, partnerships, or infrastructure already in place
In underserved markets, where access to capital has historically been limited, a well-articulated team structure helps reinforce that your business is prepared to put funding to good use.
3. Transparent Financials & Purposeful Capital Request
Investors need to see a clear connection between your growth capital request and the business growth you are projecting. Your plan should make it easy to understand how much capital you need, how it will be used, and what the expected outcomes are.
This section should include:
- Forward-looking financials based on data-driven assumptions
- Detailed use of funds with clear justifications
- A brief explanation of the structure of your business funding request, whether it involves equity, debt, or both
In our experience, the best financial sections are transparent, not overly optimistic, and demonstrate how strategic investment will create measurable business outcomes.
Why Business Plans Matter, Especially in Underserved Communities
For growth-minded business owners in overlooked areas, a sound business plan does more than improve your odds of securing funding. It helps clarify your strategy, attracts the right partners, and builds long-term resilience. It is also one of the few tools that can signal to investors that you are ready to execute and deliver results.
The small businesses we support are driving economic mobility in communities that often lack access to traditional capital. These businesses are not speculative ideas; they are operational, growing, and delivering community impact. A clear, thoughtful business plan helps ensure that investors see that potential and are ready to support it.
Real World Example: Turning a Plan into Capital
North End Teleservices (NET), an omnichannel global contact center, provides services to both government and commercial clients. Based in Nebraska, NET sought capital to restructure ownership and continue expanding its business.
Advantage Capital invested more than $4.6 million through the New Markets Tax Credit (NMTC) program, allowing NET to restructure its ownership and accelerate growth. Today, the company supports more than 500 quality jobs, demonstrating how the right capital partner and a strong business plan can unlock transformative impact.
FAQs on Business Plans & Growth Capital
- What kind of business plans do investors prefer?
Investors look for plans that are realistic, data-driven, and clearly connected to capital needs and growth strategy.
- How much detail should I include in my financial projections?
Enough to demonstrate that your assumptions are grounded in research and that you understand your margins, pricing, and cost structures.
- What is the difference between debt and equity financing for small businesses?
Debt financing involves loans you repay over time, while equity financing involves giving up a share of ownership for capital.
Learn More
Want to find out if your business plan is investor-ready? Contact our team to learn how we support small businesses with growth capital.
Disclaimer
Advantage Capital is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Any offer to sell or solicitation of an offer to purchase any security or investment product (including any interest in any fund or investment vehicle managed directly or indirectly by Advantage Capital) will be made only to qualified prospective investors pursuant to separate and definitive offering and subscription documents in accordance with applicable federal and state securities laws. Only such definitive offering materials may be relied upon in connection with any decision to invest in a fund advised by Advantage Capital, and all such materials, including any material risks associated with the investment as provided therein, should be carefully read in their entirety. Advantage Capital is an equal opportunity provider.
The portfolio companies referenced herein were selected solely to illustrate Advantage Capital’s experience investing in small businesses pursuant to state and/or federal new markets tax credit programs. The profitability of the investments was not a factor in the selection process. Nothing herein should be interpreted or construed as performance data, nor as any implication or statement that investments previously made by Advantage Capital were or are successful, or that past performance is any indication of future performance.
