Maybe you need to raise capital, secure a contract, or simply pitch a new business idea to a potential partner. All these reasons and more require you to put together a solid business proposal. A bad business proposal can cost you time, money, and opportunities. What separates a good business proposal from a bad one?
Here are five essential elements.
The Summary
The executive summary is your pitch in a nutshell. It should be short, sweet, and to the point. Think of it as an elevator pitch on paper. This is where you’ll sell your vision and get people excited about your proposal.
So, your executive should succinctly state the 5 “Ws”. Who are you? What is the problem you wish to solve? Why do you hope to achieve this? When do you plan to achieve it? And where will this all take place?
The Need
After you’ve grabbed attention with your summary, it’s time to dive into the purpose of your proposal.
People are more likely to invest in a project that addresses a pressing need. This can be a need in the market or a need of the client you’re pitching to. For example, your proposal can identify a gap in assisted living facilities in your State.
Your job is to clearly and concisely state the problem that needs to be solved. This section should include data to back up your claims.
The Solution
Now that you’ve established the need, it’s time to present your solution. This is where you’ll talk about your product or service and how it will address the need you’ve just described.
Don’t just say “our product is the best.” Say how your product is the best. What features does it have that make it better than the competition?
Include any relevant images, infographics, or charts here to help drive your point home.
The Plan
After you’ve presented your solution, it’s time to talk about how you’re going to execute it. This is where you’ll lay out your plans in more detail.
What will be the timeline for your project? Who will be responsible for what tasks? What are the risks and potential hurdles you’ll need to overcome?
Answering these questions will show that you’ve thought through your project in great detail and that you’re prepared for any bumps in the road.
The Budget
Last but not least, you’ll need to include a budget for your project. This is where you’ll itemize all the costs associated with your project, from materials to labor to overhead. Be as specific as possible here. Include line items for everything you can think of, and include estimated costs for each item.
If you’re seeking funding, this is also where you’ll talk about how much money you’re hoping to raise and what you’ll use it for.
Investors will want to see that you have a clear understanding of the costs associated with your project and that you’re not asking for more money than you need.
A well-written business proposal can make all the difference when competing for funding or contracts. By including the five essential elements discussed here, you can increase your chances of putting together a winning proposal.
