How to Prepare a Professional Business Proposal
Extra capital is needed not only to start a new business but also for the business to grow and expand. One way to raise extra capital is by applying for a business loan. For this you will need to have a business proposal.
A business proposal will highlight promising aspects of your business which will impress your lender and increase the chances of receiving the loan. Your proposal will also require a cover letter, in which you will mention the company's basics such as the aim of the company, loan amount, and why you need this loan.
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Instructions
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Your loan proposal should start with the company's basics such as company name, address, number of employees, amount of loan, purpose of loan. Remember, the amount of the loan should be an exact amount and you should not ask for more than what is required as experts are analyzing your application and will be able to tell that you are asking for more money than is actually required. This could make you look inept or dishonest.
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Explain you business in detail: You should mention the past and expected performance of your business in terms of the revenues and sales. You should also mention the legal as well as ownership structure. Also, talk about what makes your company unique and why you have an edge over your competitors.
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Explain your competition: You should talk about the similarities and differences between you and your competitors and whether you have a competitive edge or not. Also, talk about market share, current customers and monthly revenue.
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Include your past performance: Submit at least the past 3 years' performance. If you are applying for a loan to start a new business, you will have to submit cash flow projections, balance sheets and financial statements, since there is no past performance. You should mention collateral or partnership as well.
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Proofread and then proofread again: You business proposal should be error free so proofread it several times, check for spellings and grammatical errors and re-check all the facts and the information provided. Ensure that everything is correct.
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