A Business Proposal is a formal document which can be used to apply for a business loan or request for external funding from prospective investors. A Business Proposal is a detailed summary of the business. It covers the scope of the business in terms of finances, market, and all the important aspects of the business. However, writing a Business Proposal can be a daunting task since it requires skilled expertise. Writing a winning proposal is a crucial task since it will determine whether you will get funding or not. A Business Proposal should be able to convince potential investors that your business is profitable. What should be included in a Business Proposal? Keep reading to find out.
The Name of Business
Remember, a Business Proposal can be used to sell your business. Therefore, use it as a platform to market your brand. Always remember to include the name of your business in the Business Proposal. When choosing a business name, make sure that you are using a unique business name. You can search for the name you want to use on a database to see if it is already in use. If yes, then you should look for a different name. The name of your business should be on the front page of your Business Proposal.
The Scope of Business
The scope of the business refers to how much is covered by the business. For example, does it only deal with products or does it also include services? If it deals with products, does it cover the manufacture of the product(s) or does it just deal with the raw materials? Or better yet, does it deal with the finished products? Your Business Proposal should have a detailed description of the scope of the business.
All the Finances Involved
A Business Proposal should include all the cash flow expected. This includes the capital needed for the investment, the budget for all the expenditure, miscellaneous expenses and all other costs involved. On top of that, the Business Proposal should also include the expected profit in the next six months and the payback period. This is important because investors always prefer a business with a shorter payback period. Therefore, it is important to calculate the payback period thus making it easier for potential investors to consider your Business Proposal. Whenever you approach a bank to request for a business loan, they will expect you to provide a detailed proposal with all the finances covered before even moving forward with your request.
A Business Proposal is an important part of business, especially if you are at the initial stages of your business. Therefore, if you are competing for potential investors, then having a winning Business Proposal is mandatory. Always include the name of your business on your proposal. Thoroughly indicate the scope of your business in detail. Try not to overlook anything. Above all, provide a list of the budget and all the finances involved in the business. This should also cover the profit that is expected from the business over a period of time (more than 6 months from the start). The payback period should also be included in your Business Proposal document.
