A business plan proposal is considered the resume of your company, which attracts clients to give you contracts and business. It is a document which includes what your company is all about and what all services it provides. It has to be created in a well-planned manner, as it is directly related to your company’s growth, goodwill and reputation. Generally, this proposal is drafted for two reasons; firstly, if you are starting your own business and need some financial help or secondly, if you want to expand the boundaries of your current business. If you are wondering how to write a business proposal, just follow the tips mentioned below.
Guidelines for Writing a Business Plan
Prepare the summary in a way that will induce and motivate the investor or reader to know more about your company. If the summary is prepared in a well-planned manner, the reader will certainly be impressed and would like to read on. Keep the language and idea simple.
There are many cases where readers or investors are not able to understand much about the business after reading the executive summary. If your business is really complicated, mention the details later on. The recommended length of the summary should just be 2-4 pages.
Inform readers about the history of your organization, and explain why your team is suitable for augmenting their business. The history should include the organization’s background, date of business commencement, office branches, stage of development, etc. Provide details about the company’s track record and previous accomplishments, which also include details of reputed clients and successful product launches.
The reader will read this section to determine if there really is a demand and scope for the product and service you are offering. Make readers feel the need for your product. Refer to credible sources while reporting the size and growth potential of your market. Emphasize on the appropriate market section for your product or service. Do not refer to the whole market, if you are only related to the business in just a part of the complete market. Ensure that you mention how your company is capable of overcoming possible negative trends. Such points will certainly relieve the investor from the insecure feeling of potential market failures.
In this section, you need to include the basic necessities of customers, and ways in which your company’s products satisfy them. Be very precise when mentioning target customers. Provide elaborate information about customers’ needs, locations of demand, and some other important factors. You may use statistics or tables for putting forth an easy idea of customer satisfaction. Also explain the reasons why consumers prefer your products and services.
Give a detailed explanation of why your products are superior to those available in the market. List the close competitors to your business, and also mention the additional benefits that you provide. Many companies make the mistake of mentioning that they have very few or no competitors. This may create a doubt in the mind of the investor regarding your company’s credibility. If possible, carefully mention the strong and weak points of your competitors. However, you need to ensure that the competitor’s weaknesses should be mentioned solely as per the market research information.
Mention significant points which will clearly describe the company’s ways to get into the competitive market, deliver products and services, and effectively retain customers. Focus on points that depict existing products and future services. Explain what all efficient marketing strategies the company uses and why. Make sure that you present the pricing strategies very carefully. Also explain how the products and services will reach targeted consumers. You even need to mention customer retention strategies in detail.
Give the readers or investors an idea of how the processes and systems in your company are carried out. Refer to long-term goals of the company, and the steps the company is taking to achieve them. Do not concentrate more on just the operational concepts. You also need to present investors with all the real operations carried out which have the potential of making profit. Make sure that the mentioned ambitions and goals are achievable. You certainly would not like the investor to assume that the goals are exaggerated.
Explicate how the company’s way of working would prove profitable to investors. Detail all factors in the business which have the capability of generating income. Be very careful when you provide details regarding the company’s current financial standings and also the projected financial position. Investors would evidently want to know how finances are going to be used. Give them elaborate information about general expenses in marketing, recruiting, technological upgrades, and other developmental aspects.
Ensure that all the information mentioned in the business plan proposal is true. Business writing is an important part of creating an impressive business offer document. I hope by now you have a clear idea regarding how to write a business plan proposal.