How to Write a Good Business Proposal

A good business proposal is detailed and sets your business apart from others.

You have a great business idea -- something that the market has never seen, or that offers a new and better product or service than what is already available. The trouble is, you don't have the money to get your idea off the ground. When you seek business funding from any source, whether it is your local bank or a national grant organization, chances are you will need to provide more information about your idea in the form of a business proposal or plan. A good business proposal offers enough information to get the funding organization excited enough about your idea to write the check for the money you need to get started.

Instructions

1. Write an executive summary of your business plan. The summary should summarize your business idea, the business structure, information about your financial resources and requirements, and information about your achievements and what makes your business different from others. The summary should be no longer than a page, but should be well-written and engaging to spark the potential investor's interest in reading more.

2. Describe your business idea in detail. Include not only information about the product or service you plan to offer, but also complete details about the structure of your business, how you differ from the competition and how you will make money. Demonstrate that you understand the industry and the market for your business idea.

3. Explain how your business fits into the market. Offer an analysis of your target market and how you plan to meet that market's needs.

4. Detail your pricing and distribution plan. Include information about your competitors and demonstrate how you will compete with them.

5. Develop a marketing and promotion plan. A good business proposal includes details on your plans for advertising, sales promotions, public relations and branding, and further demonstrates your understanding of your target market.

6. Research your competition and analyze their strengths and weaknesses. Your business plan should detail how your business is different from the competition and how you intend to overcome the challenges that similar businesses have faced.

7. Provide information on your expected operating expenses and budget. Include details about your personnel expenses, overhead costs, marketing costs and product development costs. If you are using the business proposal to request funding, detail your financial requirements and how you plan to use the cash.

8. Write biographies of key personnel, highlighting why they are qualified to operate the business. Include more detailed CVs or resumes with the business plan.

9. Proofread and edit your business proposal. If possible, work with an advisor from a local business organization to help craft your proposal. An experienced advisor can help you identify areas in your proposal that need work.

10. Review the requirements of the funding organization to ensure that your proposal addresses all of them. Make copies of your proposal and all supporting documents for your records.

References

• Entrepreneur: Elements of a Business Plan
• U.S. Small Business Administration: Write a Business Plan

Resources

• U.S. Small Business Administration: Business Planning