A business plan proposal is a formal document that can be used to assist entrepreneurs in their day to day planing, and can also be shown to venture capitalists and other funders. If you are planning on trying to borrow money then you will need to pitch your proposal to banks, and they will want to see a detailed business plan.
It is important that your plan and proposal are clear and comprehensive and that the summary is concise so that people who do not have the time to read the whole thing will still have a chance to get a good understanding of what you are trying to achieve. You should explain the goals of your business as well as why you are uniquely suited to achieving those goals. GE Consult can help you through this process.
This part is the part that is perhaps the most important. You need to convince the people who are responsible for giving you money that you are going to be able to fulfill the promises that you make. This means proving not just that you know there is demand for the product or service, but that you have the skills in management, record keeping, accounting and other business related jobs to manage the business properly.
All too often, companies fail because the business owner was not smart with cash flow or good at marketing. Lenders and funders don’t want to back ‘good ideas’ they want to back the people that they know can pull them off.
A major part of writing a business plan and a proposal is speculation. You will be asked to provide cash flow forecasts and other information, and some of this will be based on guess-work. There is little you can do about this other than try to make it as accurate as possible.
Remember that the proposal is just that – it is not set in stone and it is something that you will need to re-evaluate over time. Try to focus on the information that is most important to your lenders, and remember that you can flesh out other details over time as more information becomes available.
Think of the plan as a living document. Update it when you earn new qualifications, get feedback, learn new things, or find that things change. Listen to what people have to say, and conduct regular market research. Take any opportunity you can get to go on courses funded by your local council or government, and revise the plans whenever the opportunity arises. Remember that the needs and interests of your consumers are always changing, as is the market that you are competing in. The plan you used to put in for funding a year ago is not going to be enough to get you funding today. Be realistic, honest and ruthless when assessing your ideas, so that you always have a document that is smart, reasonable, actionable and a sound starting point for growing a strong, healthy, profitable and sustainable business.