1. Business Proposals and
Business Plans

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
Two types:
 Solicited formal proposal
 Unsolicited formal proposal

3. Business Proposal
They range from casual, one-page memos
to multiple-volume, lengthy reports that are
hundreds of pages long.

4. Proposals
Solicited - Sent to funder in response to
request
 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
invitation

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?
Proposal Checklist

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
proposal.
Proposals must show that you are
capable of fulfilling your promise

10. Internal Business Proposals
See text 106-107

11. Introduction
Convince the reader that there is a
problem at the beginning of the
proposal
Convince the reader that the solutions
you are proposing is urgently needed

12. Body
Should suggest a practical solution to the
problem
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

13. Conclusion
Reconfirm that the proposal will solve the
problem
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
money
Introduction should provide all the
background information needed to make a
decision
Introduction should briefly describe
feasibility study that has been conducted.

15. Body of the Capital Appropriations
Proposal
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
Transmittal
 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
cover letter.

18. Introduction
Refer to the RFP
Tell why you are submitting the
proposal
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

19. Body of Proposal
Describe what you are offering
Focus on the strengths of products or
service
Disclose enough information to convince
the client
Describe how you will carry out the work
Give dates when portions will be finished
Methods and resources you will use

20. Body
Provide information about the people in charge of
implementing the work plan
 Supporting staff
 Credentials, expertise, and qualifications
Budget Most important
 Uses more numbers than words
 Can get the proposal accepted or rejected
 Budget carefully
 provide the information as accurately as possible.
 Breakdown the costs in detail

21. Conclusion
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
and desires.
* 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.

23. Business
Plans

24. Definition
Document that can convince the reader
that the business can produce enough
revenue to make a satisfactory profit and
therefore attractive as an investment
opportunity

25. What is a Business Plan?
Define goals
Determine objectives to reach goals
Assess resources and make decisions
Create contingency plans for managing
changes
Rationally assess operational feasibility
and financial viability

26. Reasons for Writing a
Plan
To serve as the guide you will
follow throughout the life of your
business
All lenders and investors require
a business plan
A business plan is the key to
conducting business in the
international marketplace

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
partners

28. The Planning Process
What are the parts of a Business Plan?
 Cover Sheet
 Table of Contents
 Executive Summary
 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
number
Date the plan was prepared
Confidentiality statement
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
(prepared last)
 Describe the business structure, purpose, and goals
 Describe your products / services and production
process?
 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
management team?
 What is the amount and terms of needed financing
and what will it be used for? How will loans be
repaid?

32. The Company Profile
The two major topics of the company
section:
Organization and Management
Products or services

33. (The Company)
Organization and Management
Briefly mention what the business
purpose is and what you provide to
the customer
Identify the legal structure of your
business
 Sole proprietorship
 Partnership
 Corporation
 LLC

34. Organization and Management
Describe your own experiences, skills,
qualifications and education that will
ensure the success of the business.
 Personnel Management
 Bookkeeping
 Inventory control
 Customer service
 Advertising
 Work history
 Professional membership

35. (The Company)
Organization and Management
Identify your team
 How many employees are needed?
 Organizational chart
 Methods of compensation
 Hours to be worked
 Required skills
 Job descriptions
Specialists
Advisors

36. The Market
The two major items for this section
of the business plan are:
Industry
Marketing Plan

37. Part II: Marketing Plan
Overview & Goals of Your Marketing Strategy
Market Analysis:
Target Market, Competition, Industry Trends
Marketing Strategy: Product
Distribution, Packaging, Pricing, Branding,
Database Marketing, Sales Strategies,
Promotions, Advertising Strategies,
Public Relations, Networking
Customer Service
Implementation of Strategy
Assessment of Marketing Effectiveness

38. (The Market) Marketing plan
sections
 Competition
 Customers
 Strategies to meet sales goals
 Market research

39. (The Market) Marketing plan-
customers
Who?
What?
When?
Where?
Why?
How?

40. (The Market) Marketing plan- sales
strategies
What is the selling price of the product or
service? How was this determined?
 Quality
 Competition *
 Service provided
 Location
 Your business costs *
 Perceived value to customer
 What the market will allow *
 Profit

41. (The Market) Marketing plan- sales
strategies
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:
Financial Projections
 Income statements
 Balance sheet
 Cash flow
Assumptions
Sources and uses
Break even analysis
Contingent liabilities

43. Assumptions
Spell out conditions assumed when
compiling financial statements
 Sales volume
 Pricing structure
 Average sales amount
 Number of customers
 Seasonal trends
 Specific expenses
 Owner’s draw/salary
 Growth rate

44. Sample Sources and Uses Statement
Sources of FUNDS:
Owner's Cash Investment 5,500
$
Loan 30,000
$
TOTAL SOURCES OF FUNDS 35,500
$
Uses of Funds:
Inventory 5,000
$
Renovations to Facility 3,000
$
Equipment 1,000
$
Furniture 1,000
$
Machinery 500
$
Building 20,000
$
Working Capital 5,000
$
TOTAL USES OF FUNDS 35,500
$
SOURCES and USES of FUNDS

45. SAMPLE CASH FLOW STATEMENT
Start-up Costs: Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Total
Beginning Cash Balance: -
$ 13,350
$ 11,350
$ 12,450
$ 14,884
$ 15,925
$ 16,953
$ 17,737
$ 19,398
$ 20,027
$ 21,560
$ 23,221
$ 24,243
$ 13,350
$
Cash Receipts:
Sales -
$ 16,879
$ 14,018
$ 17,506
$ 13,404
$ 14,662
$ 14,561
$ 16,701
$ 12,191
$ 14,852
$ 17,144
$ 14,821
$ 15,255
$ 181,994
$
Loan Proceeds 85,000
$
Equity Investment -
$
Total Cash Receipts: 85,000
$ 16,879
$ 14,018
$ 17,506
$ 13,404
$ 14,662
$ 14,561
$ 16,701
$ 12,191
$ 14,852
$ 17,144
$ 14,821
$ 15,255
$ 181,994
$
Cash Disbursements:
Materials Purchases 8,000
$ 4,220 3,505 4,377 3,351 3,666 3,640 4,175 3,048 3,713 4,286 3,705 3,814 45,499
$
Rent 865
$ 865
$ 865
$ 865
$ 865
$ 865
$ 865
$ 865
$ 865
$ 865
$ 865
$ 865
$ 10,380
$
payroll 5,570 4,626 5,777 4,423 4,838 4,805 5,511 4,023 4,901 5,658 4,891 5,034 60,058
$
payroll taxes 1,091
$ 906
$ 1,131
$ 866
$ 947
$ 941
$ 1,079
$ 788
$ 960
$ 1,108
$ 958
$ 986
$ 11,759
$
advertising 238
$ 198
$ 247
$ 189
$ 207
$ 205
$ 235
$ 172
$ 209
$ 242
$ 209
$ 215
$ 2,566
$
purchased services 40
$ 40
$ 40
$ 40
$ 40
$ 40
$ 40
$ 40
$ 40
$ 40
$ 40
$ 40
$ 480
$
office supplies 30
$ 30
$ 30
$ 30
$ 30
$ 30
$ 30
$ 30
$ 30
$ 30
$ 30
$ 30
$ 360
$
utilities 600
$ 600
$ 600
$ 600
$ 600
$ 600
$ 600
$ 600
$ 600
$ 600
$ 600
$ 600
$ 7,200
$
telephone 50
$ 50
$ 50
$ 50
$ 50
$ 50
$ 50
$ 50
$ 50
$ 50
$ 50
$ 50
$ 600
$
insurance 2,356
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ 2,356
$
sales tax 30
$ 25
$ 31
$ 24
$ 26
$ 26
$ 29
$ 21
$ 26
$ 30
$ 26
$ 27
$ 320
$
vehicle expense 100
$ 100
$ 100
$ 100
$ 100
$ 100
$ 100
$ 100
$ 100
$ 100
$ 100
$ 100
$ 1,200
$
Miscellaneous Exp. 150
$ 150
$ 150
$ 150
$ 90
$ 150
$ 150
$ 150
$ 150
$ 150
$ 150
$ 150
$ 1,740
$
Startup Costs 2,365
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ 2,365
$
Maintenance & Repairs 75
$ 75
$ 75
$ 75
$ 75
$ 75
$ 75
$ 75
$ 75
$ 75
$ 75
$ 75
$ 900
$
Prof fees -
$ 150
$ -
$ -
$ -
$ 150
$ -
$ -
$ -
$ 150
$ -
$ 150
$ 600
$
Loan #1 Interest 673
$ 670
$ 666
$ 663
$ 659
$ 656
$ 652
$ 649
$ 645
$ 642
$ 638
$ 634
$ 7,846
$
Loan #2 Interest -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$
Loan #3 Interest -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$
Loan #1 Principle 427
$ 430
$ 434
$ 437
$ 441
$ 444
$ 448
$ 451
$ 455
$ 458
$ 462
$ 466
$ 5,353
$
Loan #2 Principle -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$
Loan #3 Principle -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$
Capital Purchases 63,650
$ -
$ -
$
Owner's Draw -
$ 500
$ 500
$ 500
$ 1,000
$ 1,000
$ 1,000
$ 500
$ 500
$ 1,000
$ 1,000
$ 1,000
$ 8,500
$
Total Cash Disbursements: 71,650
$ 18,879
$ 12,918
$ 15,072
$ 12,363
$ 13,634
$ 13,777
$ 15,040
$ 11,562
$ 13,319
$ 15,483
$ 13,799
$ 14,235
$ 170,081
$
Total Cash Flow: 13,350
$ (2,000)
$ 1,100
$ 2,434
$ 1,041
$ 1,028
$ 784
$ 1,661
$ 629
$ 1,533
$ 1,661
$ 1,022
$ 1,020
$ 11,913
$
Ending Cash Balance: 13,350
$ 11,350
$ 12,450
$ 14,884
$ 15,925
$ 16,953
$ 17,737
$ 19,398
$ 20,027
$ 21,560
$ 23,221
$ 24,243
$ 25,263
$ 25,263
$
CASH FLOW STATEMENT

46. Supporting Documents
Personal resumes
Personal financial statement
Supporting documentation
 Market research
 Business documents
 Promotional materials
 Letters of support
 Proprietary protection
 Previous income tax returns

47. The End