No matter how good your business idea is, you will never get it off the ground without securing funding for it. In order to secure funding for it, you have to approach venture capitalists and other investors, who require a proper business proposal that will show why they should invest in your venture. Following are some features of a successful business proposal that will have investors pulling out their wallets as they read:
A Solid Idea
Question and re-question your idea as you write your proposal to makesure it’s viable. Does it address a genuine gap in the market or is it something you simply think is a gap? Does it have a sustainable design Assessment? Is it commercially viable? Is it practical? Can it be launched soon or does it require a lot of pre-production?
Questions like these can help identify any problems in your idea and you can look for solutions before you present it. It’s also a good idea to pitch it to an objective third party in order to pilot test your idea and see if it comes across clearly. Remember that investors are looking for the next big thing; a sustainable design for a business can help you secure that funding more than an exploitative model.
Clear and Concise
Some proposals are wordy and long; they do not bode well. People try to make their proposals sound more serious or sophisticated by using high-flown language and unnecessarily complicate their expression of simple concepts. Remember tobe clear and concise throughout the proposal. Use bulleted and numbered lists to convey your ideas instead of long paragraphs. Highlight the key points so that they jump out at the reader, but be careful of over- formatting the content; too many stylistics will take away from the content and focus attention on the formatting instead. Once you have drafted it, read it through and eliminate any word or sentence that has no direct bearing on your business idea.
What’s In It for Them?
One of the best ways to secure funding is to emphasize what’s in it for the investors. After all, they do not invest for an altruistic motive but for profit. Phrase your idea in such a way that its commercial viability and potential is immediately apparent. Keep repeating in different ways how your business idea can help profit the investors. Your idea may be something that ultimately benefits society, but that aspect doesn’t need to be emphasized overtly at this stage – that’s for the PR stage later on. For now, focus on how to sell your idea. For instance, if your idea is to develop software that will regulate traffic, list the departments and companies that you can sell it to and how it will benefit them; this will convince your investors that your software is marketable and a good investment.