Every startup, irrespective of the sector, does need some capital to begin its operations. More often than not, this includes the owner putting in some of his or her funds to start with. However, the reality is that they cannot sustain a cash input for long periods. In the end, they will need to find a person to invest in their venture.
However, most of them do not know whom to approach for the same.
After digging around, they will come across certain individuals who may be in a position to do the same. Well, this is where they need a business proposal. This is a proposal where they have to provide details about their business and the need for funding.
So how do you write a proposal?
This is the biggest obstacle. What is the proper method to write the said proposal? Well to start with, the owner needs to download a template from the net. There are many different templates available. The basic difference is in the design and the language. However, there are certain points, which will always remain similar.
- Business overview: Here the owner has to list out all the details about the business. He or she has to mention what is the basic nature of the business. They also have to mention the size of the company, number of employees, monthly income levels and expenses.
- Need for the funding: Next they need to specify why they need the funding. A funding may be required for day-to-day operations. It may also be required for expansion and/or purchasing equipment and furniture. There has to be a clear explanation for the gap between funds available and needed.
- What they provide against the funding: There are no free lunches in business. If an individual agrees to fund the business, they would need some reimbursement. This can include a share in the profits, a partnership in the company etc. Again there has to be a clear plan laid out for the same. The owner has to specify the timeline in which this investment will be refunded. He or she also has to mention what are the steps being planned to increase income levels to pay out the investment.
- List out long-term goals and plans for the business: The owner has to clearly specify what the long term is planning. This includes expansion plans, plans to upgrade equipment, marketing plans and so on and so forth. This is put in to reassure the investors that the company is not a fly-by-night operator. The investors can also gauge the seriousness of the business plan by looking at what is planned for the future.
Pay attention to details and the language.
Most business owners miss this one area. In their anxiety to complete the business plan, they do not scrutinize the document carefully. As a result, plans with missing details, improper verbiage, and spelling mistakes are often loaded onto these documents. More than anything, this indicates a person who is sloppy and not careful. This translates into an unsuccessful business venture. Hence, a business owner has to be careful how they word the proposal.
Hire the experts for the same.
There is no shame in getting this done by a professional. Today may websites offer you the services of a professional writer. This writer is well versed in the verbiage and the structure of a business proposal. They will study the details of your business and then create a proposal from scratch. They will ask for documentation to be attached with the proposal. This may include pictures of your office, audited statements, and a host of other business related documentation.
A well-structured proposal will be of tremendous help.
Most business owners under-estimate the need of the above document. They assume that the document is not mandatory or is a marketing gimmick.
On the other hand, you will find many business owners who will be testifying to the help that a good proposal offers. They will share stories that will prove that the extra funding helps them grow at a faster rate than normal.
So the next time, you come across such a document, study it rather than ignoring it.