How to write a funding proposal for a startup?
Whether you are experienced in startup funding strategies or have only started your business’s brick foundation, you’re probably aware that a funding proposal makes or breaks a company.
Every business that you admire today was once a small startup yesterday. What all of these successful ideas had in common was a great funding proposal for their investors. This article will give you vital knowledge about seven critical steps you must go through when developing the perfect startup funding proposal.
Start with the summary first.
You would be surprised with the number of people who don’t include the summary in their proposals. This is a key aspect, and it helps investors know from the start about your plan. In this part, you can include everything from the name to the business plan and even future projections about the expanses and profits. You can even add an eye-catching slogan like “free games win cash”, especially if you’re doing something in the entertainment sector.
Build a strong introduction.
After an intriguing summary, the introduction is where you want to keep readers focused on your idea. If you wish your startup to succeed and you don’t have a stealth startup, you must make sure to talk about every information available such as the number of employees, targets, current budgets, plans, background, and the overall objective. Make sure to add a little bit about your skill set too, especially if you have endorsements or training in that specific domain.
Make a list of all your startup’s objectives.
What is a successful business without clear and defined goals and objectives? You don’t have to answer that question. While everybody can state ambitious goals and objectives, the key is to also add an expected timeframe for achieving them. This will offer investors confidence and prove that you can foresee the future and produce results. The overall objective is to be as transparent as possible and to make it easy to understand.
Explain your plan and double down on it.
When it comes to the next part, you will have to explain how your company is going to achieve the goals it has set for itself. This means that you need to explain to potential investors and readers the whole process on how you are going to generate income, offer services, or whatever your company’s vision is. One thing to keep in mind for this section is to personalize it towards the interests of the investor. Make sure to address his potential questions and to be one step ahead of him.
Describe how you measure your success.
One of the most important things in your propositions is all about the metrics in which you measure your success. Potential investors have to know how you evaluate progress and which analytics tools and metrics you would use for that. All startup companies must have a way to measure their success.
State your needs.
As you are probably aware, nobody receives help if he doesn’t ask for it. In the same manner, if you are asking for funds, you should be extremely specific on how much money you would need and where the money would go. Having these specific targets in your proposition can drastically influence investor’s decisions. As an example, if you would like to ask for a one million dollar investment in your startup business, prepare a spreadsheet on where every cent will go. You will rarely get in a position to win money free, you need to have a plan and work for it.
Finish on a high note.
Last but not least, you must adequately finish your proposal. This translates into checking for any spelling errors, any unwritten texts, or any documents missing. If you are sending it over email, double-check the email and make sure you are using your corporate email, rather than a personal one. More importantly, make sure to add whatever you think will influence that particular investor. Personalize it based on his needs and worries.
In the end, we hope that when you are submitting your startup funding proposal, you keep these steps in mind.
They will certainly have a big impact on the outcome of the proposal and will boost your chances of getting that well-deserved funding. Keep in mind that your startup growth depends on investors; it’s a better way to gather them than with a great scheme that explains your company’s ins and outs and its ways of working.
How have these steps improved your proposition?