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

10. Internal Business Proposals

11. The Opening Paragraph
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. The Body Paragraphs 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. The Closing Paragraph
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 BUSINESS PROPOSALS

17. 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

18. 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.

19. The Opening Paragraph 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

20. The Body Paragraphs 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

21. 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

22. The Closing Paragraph 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

23. 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.

24. Business PLANS

25. 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

26. 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
Why should you take the time and go through all the trouble of writing a business plan?
It forces you to look at the business in a critical manner. A strong reality check!!!!
helps you to focus and serves as a feasibility study
it can serve as an operational report and define current conditions and future possibilities
It can be a good communicational tool that shows your management team, competition and business purpose.
Justifies financial projections
It is for all of these reasons that the owner of the business should write the plan. Get help from a consultant but you need to do the work.

27. 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

28. 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

29. 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

30. 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,

31. 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.

32. 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?

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

34. (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

35. 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

36. (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

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

38. 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

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

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

41. (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

42. (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
How will you let your potential customers know you are in business.

43. The Financial Plan Major sections include: Financial Projections
Income statements
Balance sheet
Cash flow
Assumptions
Sources and uses
Break even analysis
Contingent liabilities

44. 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

45. Sample Sources and Uses Statement

46. SAMPLE CASH FLOW STATEMENT

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

48. The End