Business Plan Tips: What Convinces the Bank & the Employment Agency
What really makes a business plan convincing: ten points from practice that decide on funding and financing. Plus: the different things the Employment Agency (Agentur für Arbeit), banks, and investors look for.
Reviewed by Pavel Deuble
Start-up consultant & BAFA-registered business consultant
- BAFA-registered · ID 191790
- Last updated:
A convincing business plan relies on realistic, documented numbers, an honest look at competition and risks, a clean liquidity plan, and clear, matter-of-fact language, and on being tailored to its reader (Agency, bank, or investor). These bodies, after all, look at different things.
The 10 Most Important Tips from Practice
Win people over with the executive summary
The first seconds decide. Reviewers read the summary first, often only that, before they dig deeper. Put the idea, market, unique selling proposition, and key figures on one page, clearly and without platitudes. Write this page last, once everything else is done.
Realistic numbers beat optimism
Exaggerated revenue forecasts are the most common reason for rejection. Calculate conservatively, derive every assumption in a comprehensible way (customers × frequency × price), and back it up. A realistic plan that holds is more convincing than a euphoric one that falls apart.
Analyze the competition honestly
“We have no competition” is a warning sign. Name your competitors, position yourself among them, and show your concrete advantage. That demonstrates market knowledge. That is exactly what the bank and the Agency want to see.
Address risks openly
Concealing risks looks naive. Name the two or three most important ones and show one concrete countermeasure for each. That signals entrepreneurial maturity and builds trust.
The liquidity plan matters more than the revenue plan
Companies rarely fail because of too little revenue, but because of empty accounts at the wrong time. A clean, monthly liquidity plan shows that you will also get through the start-up phase. Banks look at this especially closely.
Have someone review it
Anyone who spends weeks on their own plan becomes blind to its flaws. An outside person with business expertise finds gaps, unclear passages, and logical errors, ideally before the bank does.
Tailor the plan to the reader
The same plan, three recipients, three priorities. Anyone who submits a generic version gives away impact. You can see what each reader looks at in the section below. Adjust the focus and language accordingly.
A common thread & consistent numbers
The number in the text section, in the financial plan, and in the executive summary must be the same. Contradictory numbers across the chapters are an immediate trust killer: reviewers check the math.
Matter-of-fact language & clean layout
Cover page, table of contents with page numbers, no typos, consistent formatting, and a sober tone instead of promotional language. Attention to form is read as an indicator of entrepreneurial diligence.
Back it up instead of just claiming it
Every market assumption needs a source (Federal Statistical Office, Chamber of Commerce and Industry (IHK), industry associations). “Estimated” without evidence is the weak spot reviewers find first.
What the Agency, Bank, and Investor Each Look For
The most important tip of all: a business plan is rarely read by “the target group” but by a specific body with its own review logic. Align focus and tone accordingly.
Employment Agency (start-up grant)
The focus is on viability, documented by an expert opinion (fachkundige Stellungnahme). The Agency wants to see that the project realistically secures your living expenses and ends unemployment for good. Clear, comprehensible, no gloss.
Bank / KfW
Here numbers and business skills count: debt service capacity (Kapitaldienstfähigkeit), profitability, liquidity, collateral. Vision is secondary. You must be able to explain the planning of revenue, costs, and profitability yourself in the meeting.
Investor / equity capital
Now scalability, market size, team, and growth prospects count. An investor is looking for above-average returns. The conservative, “safe” planning that convinces the bank does not convince the investor at all.
Business Plan Checklist to Tick Off
Check your plan point by point: formally, in terms of content, and before you submit it. We have summarized the official checklists of the BMWE start-up portal (BMWE-Existenzgründungsportal) here in an interactive version.
Have a business plan created, tailored to your recipient
We build your plan specifically for the Agency, bank, or investor, eligible for funding and bankable. With a written, approved AVGS (Activation and Placement Voucher, Aktivierungs- und Vermittlungsgutschein), 100% funded.
Frequently Asked Questions
What does the bank look at in a business plan?
The bank mainly checks the numbers section and your business skills: debt service capacity (can you service the loan?), realistic profitability, liquidity, and collateral. Vision and growth fantasies are secondary. You must be able to explain the planning of revenue, costs, and profitability yourself.
What does the Employment Agency look at in a business plan?
The Employment Agency checks the viability of the self-employment, documented by an expert opinion. The focus is on a realistic plan that secures your living expenses and on the question of whether the project ends unemployment for good.
What is the most common mistake in a business plan?
Overly optimistic revenue forecasts that are not derived, combined with underestimated costs and a missing liquidity plan. This is the most common reason for rejection by banks and funding bodies.
How do I make a business plan convincing?
With realistic, documented numbers, an honest look at competition and risks, a clean monthly liquidity plan, clear matter-of-fact language, and by tailoring the plan to the respective reader (Agency, bank, or investor).
Official Sources, Information Sheets & Flyers
The authoritative primary sources to read up on: information sheets and program pages of the responsible funding bodies, as well as the relevant legal texts.
We check external links to official bodies each time this page is updated (see the date above). Content and terms may change; the source itself is always authoritative.
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About the author
Pavel Deuble
Start-up consultant & BAFA-registered business consultant · Owner of Unternehmenswerk
Pavel Deuble is the owner of unternehmenswerk and managing director of UW Unternehmensweg GmbH. He is listed in the BAFA register of consultants (consultant ID 191790); the AVGS programs run through the AZAV-certified UW Unternehmensweg GmbH (provider approval Z-000392-2). Since 2018 more than 750 business plans, 4.88 out of 5 on ProvenExpert from 92 reviews.