Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.
2 min. read
Updated January 4, 2024
Securing funding is just the beginning. How you manage it can make or break your business. It may even influence your chances of getting additional funding later on. Whether it’s a loan, grant, line of credit, or investor financing—you need a plan to leverage these resources in a way that fuels your growth and makes your business sustainable.
In this comprehensive guide to managing business funding, we’ll go over practical strategies for using and tracking funding to ensure every dollar works as hard as you do.
If you’re pursuing funding, you should have a section in your business plan that explains how you plan to use the money you’re requesting from lenders or investors. This “use of funds” section can be a spreadsheet, a forecast, or simply a few paragraphs of text.
Once you have that cash in hand, it’s tempting to think that your business plan has done its job, and all you have to do is use the money. But here’s the issue: things have likely changed and will continue to change since you asked for funding.
If you stick with your original plan and choose not to revisit how you’re using funds—you’re more likely to make costly mistakes. That’s why you need to take the time to review, make adjustments, and track how these changes differ from the original plan in your funding request.
That way you are making the most out of your newly introduced cash and can easily showcase how it’s being used to any external stakeholders.
You can use external funding to grow your business in countless ways. What you choose fully depends on your business stage, the potential for growth, and how well you understand your financials.
Here are a few resources covering tips and specific ways to manage funding for business growth initiatives.
No matter how you intend to use your business loan, line of credit, grant funding, or investment—there are consistent funding do’s and don’ts that you should be aware of.
Check out our selection of free templates and recommended resources to help you stay on top of your funding long after you receive it.
Free one-page business plan template
Try a business plan format built to help you quicly review and revise your strategy.