2. What is a Business Proposal
Persuasive written report offering
To provide a service
To sell a product
To find a solution to a problem or need
Solicited formal proposal
Unsolicited formal proposal
Solicited - Sent to funder in response to
Funder – agency, business, foundation
that finances projects
RFP – request for proposal
RFI – request for information
CFP – commercial request for proposal
Unsolicited - Sent without request or
5. Proposal Checklist
What do I propose to do?
Can I do it?
How do I propose to do it?
Is this possible or feasible?
What evidence can I introduce to
demonstrate that what I propose to do will
actually get the desired results?
6. Proposal Checklist
How much will it cost me to do the task?
How much shall I charge to perform the task?
What evidence must I show to convince the
reader that this cost is acceptable?
Is my time schedule appropriate?
7. •What evidence can I use to convince my
reader that my way is the best way to
obtain the desired results?
•How can I show my ability to do what I
propose to do?
8. Characteristics of a Proposal
Proposals deal with the future
Proposals must convince the reader that
there is a problem
Proposals must convince the reader that the
writer is the best person to fix the problem
Proposals are often legally binding offers
9. To Convince the Reader
Proposals must be persuasive.
Proposals must convince your reader
that they will get benefits from your
Proposals must show that you are
capable of fulfilling your promise
Convince the reader that there is a
problem at the beginning of the
Convince the reader that the solutions
you are proposing is urgently needed
Should suggest a practical solution to the
Describe the solution in detail
Explain the approach you will adopt
Tell about the expertise, qualifications and
the personal you will use.
Describe the equipment you will use
Give the cost breakdown
Reconfirm that the proposal will solve the
Repeat that you have confidence that you
can carry out the plan
Discussion of the plan could be face to
face with the reader
Additional information could be given
14. Introduction of the
Capital Appropriations Proposal
A proposal committing a large sum of
Introduction should provide all the
background information needed to make a
Introduction should briefly describe
feasibility study that has been conducted.
15. Body of the Capital Appropriations
Briefly describe the item to be purchased
Alternative choices you have considered
Life expectancy of the item
The specific products, services or projects
to be supported by the item
Expected return on investment
Latest feasible date of acquisition
16. External Proposals
Vary in length and format
More formal manuscript
Same components as a formal report
Very persuasive document
Provide details of your credentials
Usually has supplementary parts
Occasionally contain an appendix
17. Copy of the RFP and Letter of
Request for proposal
Letter or memo issued by a company or
government agency that invites competing
companies to bid for a job
Large companies and government agencies
may have more than one circulating
Letter of transmittal – sometimes called the
Refer to the RFP
Tell why you are submitting the
Proposals must convince the reader
that there is a problem
Proposals must convince the reader
that the writer is the best person to fix
19. Body of Proposal
Describe what you are offering
Focus on the strengths of products or
Disclose enough information to convince
Describe how you will carry out the work
Give dates when portions will be finished
Methods and resources you will use
Provide information about the people in charge of
implementing the work plan
Credentials, expertise, and qualifications
Budget Most important
Uses more numbers than words
Can get the proposal accepted or rejected
provide the information as accurately as possible.
Breakdown the costs in detail
Last chance to persuade
Review what you have said
Restate the merits of the proposal briefly
Stress your company’s strong points
Emphasize the benefits
Sound assertive, assuring and confident
22. Poor Business Proposals
Too little information - Submitting just a company
brochure with a price quote.
* Poor writing - Pleasing to look at, but, after the first
read-through, boring to read.
* Lack of marketing focus - Trying to be everything to
everyone, but being nothing to no one.
* Too general and self-centered - Focusing on the
company instead of addressing the prospect's needs
* Done too quickly - Offering trivial solutions and
canned material instead of ideas that get results.
* No "sell" - Presenting just information rather than a
persuasive argument for the company.
Document that can convince the reader
that the business can produce enough
revenue to make a satisfactory profit and
therefore attractive as an investment
25. What is a Business Plan?
Determine objectives to reach goals
Assess resources and make decisions
Create contingency plans for managing
Rationally assess operational feasibility
and financial viability
26. Reasons for Writing a
To serve as the guide you will
follow throughout the life of your
All lenders and investors require
a business plan
A business plan is the key to
conducting business in the
27. Business Plan Characteristics
Persuade potential investors to invest
Allows readers to assess the profitability and
goals of the new venture
Provide employees with guidance and direction
Convince suppliers and customers that the new
venture is promising
Clarify the objectives of the new venture
Create strategic alliances with other business
28. The Planning Process
What are the parts of a Business Plan?
Table of Contents
Part 1: Organizational Plan
Part 2: Marketing Plan
Part 3: Financial Documents
Part 4: Supporting Documents
29. Title Page (cover page)
Business name, address, and phone
Date the plan was prepared
Owner's name, address, phone
number, web address, e-mail
30. Table of Contents
List major sections of the plan and
the page number where each section
can be found.
This page cannot be prepared until
the plan is finished.
31. Executive Summary
Describe the business structure, purpose, and goals
Describe your products / services and production
What is your overall marketing strategy, and who will
be/are your customers?
Who will be/is in the business, and how is it managed?
What are the skills of each member of the
What is the amount and terms of needed financing
and what will it be used for? How will loans be
33. (The Company)
Organization and Management
Briefly mention what the business
purpose is and what you provide to
Identify the legal structure of your
34. Organization and Management
Describe your own experiences, skills,
qualifications and education that will
ensure the success of the business.
35. (The Company)
Organization and Management
Identify your team
How many employees are needed?
Methods of compensation
Hours to be worked
36. The Market
The two major items for this section
of the business plan are:
37. Part II: Marketing Plan
Overview & Goals of Your Marketing Strategy
Target Market, Competition, Industry Trends
Marketing Strategy: Product
Distribution, Packaging, Pricing, Branding,
Database Marketing, Sales Strategies,
Promotions, Advertising Strategies,
Public Relations, Networking
Implementation of Strategy
Assessment of Marketing Effectiveness
38. (The Market) Marketing plan
Strategies to meet sales goals
40. (The Market) Marketing plan- sales
What is the selling price of the product or
service? How was this determined?
Your business costs *
Perceived value to customer
What the market will allow *
41. (The Market) Marketing plan- sales
Promotional activities are determined
by your target customers
Advertising – newspaper, radio, TV, yellow
pages, billboards, direct mail, flyers, posters,
business cards, website, etc..
Sales promotions –samples, reduced prices,
coupons and contests.
Publicity –feature stories, public relations,
trade shows, networking, organizations
42. The Financial Plan
Major sections include:
Sources and uses
Break even analysis
Spell out conditions assumed when
compiling financial statements
Average sales amount
Number of customers
44. Sample Sources and Uses Statement
Sources of FUNDS:
Owner's Cash Investment 5,500
TOTAL SOURCES OF FUNDS 35,500
Uses of Funds:
Renovations to Facility 3,000
Working Capital 5,000
TOTAL USES OF FUNDS 35,500
SOURCES and USES of FUNDS