How to Write a Business Proposal

You have a great idea for a new product or service. Before a bank or investment firm will lend you money to get off the ground, you'll need to craft a solid business proposal. Follow these relatively simple steps to get your foot in the door on getting enough mullah to survive the arduous task of developing your product and making your dream a reality.

Difficulty: Moderately Challenging

Instructions

1. Talk with somebody who has written several successful business proposals. Ask what worked and what didn't.

2. Outline a two-part proposal. The first part will describe the business opportunity and your plans to take advantage of it. The second will present financial data - tax returns, a balance sheet and a summary of your operating plan.

3. Write the proposal. Limit the first part to 10 pages. Make it concise and clear. When describing the market opportunity, cite sources.

4. Explain what makes you and your company different from competitors. Perhaps you have special skills and experiences. You might have a new technology. Talk about your achievements in the industry.

5. Describe the segment of the market you will pursue. Discuss what you will do to take market share away from competitors.

6. Identify prospective customers. Explain why you are targeting them.

7. Summarize your marketing plan. Offer details, but be brief.

8. Discuss any regulatory issues your company might have to deal with.

9. Identify the management team. Who are the top three people in the company? Give brief biographical sketches.

10. Describe your expectations regarding revenue and cash flow for the first year. Discuss how much money you think you will need to get started, how it will be used, and where you plan to obtain it.

Tips & Warnings

• Be hard-nosed and realistic.
• If you haven't done thorough market research, say so. If you have done research, mention the sources by name.
• Write your own plan. If you hire someone else to do it, you'll simply be paying a fee to have someone regurgitate the information you provide.

Who Can Help Sponsored

• Start Your Business Now - LegalZoom
• Fax without a fax machine! Over 11 million people use eFax® to fax online. Get your free trial today
• Onebox® - Virtual Phone System for Small/Medium Businesses. Service includes Toll Free, Local Number, Call Forwarding, Voicemail, Online Fax & more. Free Trial!

[bethdd3]

on 8/20/2009 This website helped me out a lot--and it's FREE:

http://www.eintelli.com/#eIntelli%20eProposal

on 11/22/2005 If your business proposal shows you that the new enterprise won't go, then be happy you didn't throw your (and your investors') money away. Planning, paper and printing are definitely cheaper than throwing money at an idea that crashes. -Phil Hey