Knowing how to write a business proposal is one of the first steps to opening a new business. This plan will offer potential clients or inventors valuable information about your business. In order to create this proposal, you must identify your business idea in a very detailed way. The following six easy steps will take you from planner to entrepreneur.
Step One: Identify the Product or Service
What product or service do you intend to offer? Be specific. Explain why your product or service is different. It is important to be able to articulate your product or service in a very concise manner. Invent a hook- the why customers would choose your product or service over another. In this section, include any licenses necessary and copyrights or patens obtained.
Step Two: Specify the Who, When and Where for your Business
First, identify the target market. Don’t say everyone. In this section, it is important to include demographic information. If your business will be located in a specific geographic location, explain why this location is best. If you choose an online venue, highlight your domain choice. Many businesses are seasonal, be sure to consider this when determining the when.
Step Three: Develop a Marketing Plan
Begin with a feasibility study, identifying potential customers. If this business already exists, how will you capture some market share? Indicate all current competition and underscore their strengths and weaknesses. If it is a novel business idea, how will you educate your consumers? Include viral marketing plans and social marketing along with traditional marketing ideas.
Step Four: Highlight Management and Staff
Who will be the top management? Will this be a turn-key business or will you be an owner-operator? Include resumes for key management, if available. In addition, provide staff compensation information.
Step Five: Develop a Budget
There are a lot of dreamers with GREAT ideas; however, it takes more than a good idea to become a reality. It takes money. Will you be using your own capital or pursuing financing? The fifth step in crafting your business proposal is to include a budget spreadsheet. The budget should include revenue and expenses, including start-up costs. This will reveal the proposed breakeven point for the business. All Small Business Administration (SBA) loans require a formal business proposal.
Step Six: Write Your Proposal Statement
Why do you want to open this business? This is probably one of the most important questions for you to answer. Do you have a passion for this business or a unique expertise? Shine the spotlight on YOU here!
Small Business Administration – Small Business Planner.” <em>Small Business Administration.</em> N.p., n.d. Web. 18 Feb. 2010. <http://www.sba.gov/smallbusinessplanner/index.html>.
Velazquez, Lydia. ” Getting Funding for Your Growing Business – Entrepreneur.com.” <em>Entrepeneur.</em> N.p., n.d. Web. 18 Feb. 2010. <http://www.entrepreneur.com/startingabusiness/startupbasics/advicefromoureditor/article65168.html>