How to Write a Proposal for a Small Business
A small business may write proposals for project bids, grants, loans or investor funding. Proposals attempt to persuade an organization with funds to provide funds to your small business, often for products or services. Although format and content requirements differ among funding sources, some basic guidelines apply to all small business proposals.
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Things You'll Need
- Solicitation announcement of list of funding sources
- Application or request for proposal
- Funder contact data
- Organization's background information
- Financial data
- Vendor quotes
- Business plan
Instructions
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Contact the funding organization by phone, email or mail. Get a copy of the solicitation announcement and application. Ask for information on the submission date and the contact person's name, postal address, email address and phone number. Ask how the proposal should be delivered.
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2
Study the application or request for proposal. Determine that your organization is eligible to apply. Many small business set-aside funds require proof that your organization meets the definition of a small business.
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Make a checklist of information required on the application or proposal including content, format and attachments.
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Collect information needed to complete the small business proposal. Types of information may include detailed products or services descriptions, data on needs and benefits, a performance schedule, and background on your organization including financial data and business plans. Get vendor quotes or cost estimates for any materials and labor required to complete the terms of the proposal.
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Write the proposal contents according to the funder's guidelines. Use headings that match those requested in the application or request for proposal. Create a cover letter that summarizes your proposal and qualifications. Write in the active voice using examples of successful past performance and a detailed plan to accomplish the objectives of the solicitation or funding source. Venture capitalists expect to see a business plan that includes an executive summary, business description, market strategies, a competitive analysis, realistic plans and verifiable financial information, according to Entrepreneur.
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Review your proposal for completeness and correctness. Using a third party, such as someone in your organization not associated with writing the proposal, provides an objective review of the compliance with requirements and the readability. Use the checklist to ensure all required items of information or support have been included in the proposal package.
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Submit the small business proposal on time. If mailing the proposal, request delivery confirmation. Most electronic submissions provide confirmation. Keep a copy of the delivery notice.
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References
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