How to Create a Business Proposal

A business proposal can serve any of several purposes. It can present the case for a new product. It can serve as an invitation for a joint effort between two organizations. It can be used by potential vendors to secure business clients, or by entrepreneurs to secure investment capital. This variety of purposes leads to a variety of formats. The initial proposal for Southwest Airlines was purportedly sketched on the back of a cocktail napkin. Other proposals are professionally written, rigorously edited and published in book format. Regardless of the purpose and format, the process for their creation follow the same broad outline.

Instructions

Business Model

1. Choose the basic business model: a one-sentence description of how this operation will make money. For example, the business model of a karate school would be "Teach traditional Asian fighting techniques in exchange for tuition payments."

2. Expand on the business model to identify all income streams for the business. A karate school might separate classes for children, classes for adults and self-defense workshops for local schools and clubs.

3. Identify, in broad strokes, potential for growth in the model. The karate school might include notes about opening additional branches as business expands.

Research

1. Investigate the industry as a whole, including trends, best practices and major competition in your area of operation.

2. Investigate the finances surrounding the proposal. Learn how much you can charge for your product or service and how much the business will cost to run. Research market trends sufficiently to make a reasonable estimate of how the business will perform during its first months of growth.

3. Research government regulation and major court cases involving the industry as a whole, similar companies and technologies important to your business.

4. Perform a SWOT analysis, researching in detail the strengths, weaknesses, opportunities for and threats against your business case.

5. Research the individuals and organizations to whom you will present this proposal. Know how your proposal will benefit the organization and know enough personal information to make good conversation with the people you will approach.

Writing and Editing

1. Compile your research into a basic document outlining the business model and SWOT analysis of your proposal.

2. Customize the document to include information that applies to your potential partner. If approaching more than one organization, make different versions each customized for a single group.

3. Edit the document, adhering to strict formal writing conventions.

4. Format the document, adding charts, diagrams and other graphics to make it easier to read.

Tips & Warnings

• There are companies that do business proposals professionally, researching and writing business cases for clients to present. If you lack professional level writing skills, consider this.

References

• "The E-Myth Revisited"; Michael Gerber; 1997
• Bartt Brick, Small Business Consultant, Hillsboro, OR