How to write a business proposal for success? This is a question we get asked a lot. First off, a successful business proposal is one that achieves the goals you are after. There are obviously many different factors that contribute to a successful business plan.
So today we are going to focus on how to write a business proposal for the audience that will read it. Now this might seem quite obvious, but countless entrepreneurs have written their business plan from their own perspective and then wondered why they didn’t get the results that they were after.
Before you jump into how to write a business proposal, sit back and think about what it is you want to get from the person who will be reading it.
How to write a business proposal for a Bank loan
If you are after a loan, then it’s a bank officer who will be reading it. So how do you write a business proposal to obtain a bank loan? Banks will be focusing on risks, so it’s important to identify all the risks to your business. A big mistake is when a business plan ignores a glaring risk to the business. Provide reasons why the risks are acceptable, and how they can be mitigated (if they can be!).
Banks will also want to know what you will be using the loan for. They prefer term loans to be applied to business growth, rather than returns to shareholders, or to fund working capital.
They will also want to know how the business will be able to service the debt, so talk about your interest cover ratio, and the working capital management of the business. If possible, show the bank that you can repay the whole loan within the term of the loan. This is very powerful.
So be sure to cover off these issues for a winning bank business plan.