There are three fundamental questions every savvy investor will ask you. Your plan shows how you will get from here to there. Take control of what content you see. From inspiration on starting a business to learning more about how to find solutions - make our site yours and never miss a beat. Add your favorite articles, videos, podcasts, and more to your Queue so you can enjoy them anytime on any device. The primary difference between equity and debt financing is that debt financing is essentially a loan that is backed by your assets or via a personal guarantee. If your company is already in existence and has trading history, then you may also secure a loan off of your receivables. You start here, today, with certain resources and abilities. You want to get to a there, a point in the future (usually three to five years out) at which time your business will have a different set of resources and abilities as well as greater profitability and increased assets.