Document Prep: Essentials for Funding

Document prep is one of the most critical (but overlooked) steps when you’re getting ready to secure funding for your business. You might be super jazzed to start that thing you can’t stop thinking about—maybe it’s a venue, a small business, or a side hustle you know could be a game-changer.

Your spouse (or business partner) finally gives you the green light—no more holding back—and you’re ready to hit the gas pedal.

But suddenly… you realize you don’t know where to go.
Do you speed ahead?
Take a left turn?
A right turn?

Siri? Directions, please!?

That’s where document prep comes in. Preparing the right documents is like having a road map. It gives you a step-by-step route, so you’re not driving blind when you walk into a bank or meet with an investor.

Today, I’m going to be that friend who’s been through it and hands you the map.

When you’re preparing for funding, there are four essential documents you need to have locked and loaded. Without them, lenders will see you as unprepared, and you’ll feel like you’re scrambling to catch up.

Here’s your document prep checklist:

1. Market Analysis

When it comes to document prep, your market analysis should always be your starting point. I like to break this down into three layers: national, state, and local (aka your competitors). The goal? Figure out if this venture is even feasible in your specific market.

It’s easy to get caught up in tiny details like “Wait… they’re charging WHAT??” but don’t let that slow you down. Save those insights for later when you’re pricing your services. For now, just focus on getting a complete market picture.

2. Pro Forma

This is the document where most people hit a wall. Pro forma document prep is tedious—but absolutely critical. You can’t just Google your startup costs (CAPEX) and monthly expenses (OPEX).

You’ll need to do the homework:

• Get 3-4 bids for each category.
• Average out the numbers.
• Be as realistic as possible.

Yes, it’s a heavy lift. Yes, it’s worth every minute. This document shows lenders you understand your financials. If you’re stuck, grab my free pro forma template to simplify the process.

3. Business Plan

By the time you’re working on your business plan document prep, you’ll already have the meat and potatoes done. The data from your market analysis and pro forma are going to be the core content of your business plan.

That’s why I always recommend this order—it keeps you from spinning your wheels writing a 20-page business plan with no substance. Do the heavy lifting first, then plug the data into the business plan framework.

4. Nest Egg

While you’re busy with your document prep, you should also be building up your nest egg. A good rule of thumb is to save 20-25% of your requested loan amount. Traditional lenders want to see that you have some skin in the game, and most will expect at least a 20% down payment.

Having a solid nest egg proves you’re invested (literally) and gives you a buffer for those inevitable unexpected expenses.

The Bottom Line on Document Prep

Here’s the good news: you can absolutely DIY your document prep. I’ve seen plenty of venue owners bootstrap the entire process and secure their funding. It might take a little longer, but as the great philosopher Dominic Toretto once said:

“It doesn’t matter if you win by an inch or a mile, winning is winning.”

But if bootstrapping doesn’t sound like your vibe and you’d rather follow a proven path, I’ve got you covered. Join Funding 101™, where I walk you through the entire document prep process step-by-step.

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