How to Write an Investor-Worthy Business Proposal

Paperless Proposal reports:

"Whether you are new to the world of business or a seasoned veteran, in order to raise investment capital for your new business, you must develop a business proposal for investors...If you want your business to get off the ground, you will need a killer business proposal to impress investors...A business proposal is a written document that is sent or presented to investors to propose the outline for your business concept and how it will make money...When tailoring a business proposal to investors, the return on their investment will always be the first and foremost concern. 'Wow' them with your pitch of how your proposed company will make money for you and for them...Just as your business needs a plan, you must plan prior to crafting your actual business proposal. Sketch an outline, make spreadsheets, and study other business proposals...Copying other proposals will not afford you any opportunities with investors...[T]he investors you choose to present to should be relevant for your business...Have a detailed understanding of your own business, as well as your competitors and the market as a whole. Conduct research on the industry you are trying to enter. Plan each detail of your proposal carefully. Your research is the foundation for trust between you and potential investors...Lastly, develop an expectation based on your business of what kind of investments you will be looking to acquire. Knowing how to ask for what you want begins with knowing what you want and why...Develop a flawless plan that will represent your business adequately and extraordinarily...Let your writing be led by the focus and intention of returning investors’ money back to them through your business. Use this concept as a perspective to answering the investors’ questions before they can ask: How will I make my money back? How much more will I make?...Begin with a brief – 2[-] to 5[-]page – profile of your business. This will be a summary of the entire proposal that covers all of the pressing questions...[A company overview] is particularly relevant if your business is already in operation. If it isn’t, you may give a brief snapshot of the company structure, financial tree, various products or services offered, and any important company history that may concern or interest investors (e.g.: acquisitions, mergers, etc.)...Once you have expressed what your products and services are, delineate the following critical information...What is your current inventory / future proposed inventory? What are your production costs per item? Is there potential to lower these costs and what are the consequences of doing so? What is the retail price of your product or service and how did you come to this price? Is it relative to comparable products? Is it one of a kind? Provide a sales forecast that is realistically derived from past sales or market research for the next 3 to 5 years based on your current business plan. Who are your suppliers and what are their credit terms? Where are your suppliers located? Have you worked with different suppliers in the past? Use of Funds? As previously stated, describe how investors’ money will be used to [jump-start] your business. It is wise to seek investors for your next course of action only. Not your 5-year action plan...Investors will want to know and possibly weigh in on your plan for their money...[B]e sure to begin with the most important information and keep your proposal and presentation brief when including these factors suggested by investors and business people alike...[Researching competitors and your industry includes the following:] The company’s management and staff; why they are in the position they are in; what qualifies them for this position? Owners and shares of the proposed business equipment, facilities, and technology currently being used, as well as future additions that may need to be made...It comes on high recommendation that you prepare to answer the obvious questions investors will have at the end of your pitch including how their investment will be monetized, which may include licensing agreements and strategizing a sale of your company to another, larger company."