Authored by Jayant Row in Business Management
Published on 05-04-2009

An effective and viable business proposal is one that plans a very clear course of action. The business proposal should be precise, short and very readable. Remember that the idea of a business proposal is to convince the reader that he needs to take action to support your plan so that it ultimately benefits him. A business proposal must be made with the sole aim of carrying the business further. If it is for a new business it needs to stress on the market potential of the new venture. This can be done with projections of the demand of the product or service and its potential growth in the future.

A successful business proposal has to be a rational business proposition. It has to address the concept of funding and the returns that can be acceptable on the investments made. The goals of the business should be clear. One must also analyze the competition and its likely effect on the business proposal. It must also stress the competitive advantage that can accrue from following the business proposal made. It has to be very clear as to the marketing strategy that needs to be adopted and the after sales and service that is required. Finally one needs to address the problem of human resources and then presenting the budget required to put the business proposal into the market. A good business proposal would also indicate the possibilities of getting funding for the proposal, and the avenues that can be tapped.

While making a business proposal one needs to make an executive summary that will in its short length, convince its readers of the viability of the proposal. You need to summarize the customer’s business need and the goals that need to be targeted. Once this is done, you need to focus on the priorities and the things that will drive the business forward. You have then to come out with the solutions that you are proposing to achieve these goals. You need to stress here the reason why you think that you are the right person to help them with their business.

Finally you need to summarize on the budgets, return on investment, and the time required for reaching the envisaged targets. Stress on the fact that a quick decision can only help the business. Also indicate that all the proposals made are in the present context of the market and could change if there are any delays.

A well written business proposal can also help the client to open new lines of credit, bring in new investors. It can attract venture capitalists and thus make funding of the new business quite an easy task. Such a proposal can also help independent organizations assess the business worth of the company and its potential for the future. Above all a good business proposal must help to clarify the thinking of the management and enable them to take decisions that are to do with its future. It should very clearly lay down where the organization is at present and where it plans to be in the future.