What you need to know about
A business proposal is a written offer that explains the details of some exchange between a business and its investors, customers, or partners.
- Preparing a formal or informal bid or offer.
- Responding to an advertisement or request for proposals.
A business proposal is an offer of some good, service, or monetary amount in exchange for something the business needs from an external party, known as “consideration.” A business proposal is often the first step toward creating a legally-binding contract, so business owners and managers must craft these documents carefully. If you are considering offering a business deal to one of your partners, associates, or clients, use this interactive form to create a business proposal that meets all of your needs.
Before making a business proposal, companies should be clear on exactly what they are offering, to whom they are offering it, and the consideration that they will receive in exchange for fulfilling the terms of the offer. Missing or incomplete information in a business proposal will often lead to the offer being rejected. What’s worse, in cases where inaccurate offers are accepted, businesses are often bound to the terms in their proposal even if they were included as a mistake. As a result, business proposals should be drafted and reviewed carefully before they are submitted.
This template will help you fill out a detailed, accurate, and complete business proposal that can be used when companies have been solicited for formal bids. Businesses should be aware that formal requests for proposals often include specific requirements, so business proposals should always be drafted according to the facts and circumstances relevant at the time. If you are submitting a business proposal, use this step-by-step guide to make a customized document that is accurate, complete, and professional.
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This Business Proposal is prepared on _______________, 20____ for ________________________ (the “Company”) for ________________ (“Investor”). Company is seeking the flexibility, guidance and funding of Investor for growth of business in order to benefit both the parties.
The purpose of this Proposal is to raise $_______________ for the development of _________________. The Company is a start-up in the field of _______________ whose primary service entails:
1.1 Products and Services
The primary revenue center will come from:
The Section Three of the business plan will further describe the services offered by the Company.
1.2 The Financing
The Company is seeking to raise $_______. This business plan assumes that the business will receive a _________ year loan with a _____% fixed interest rate. The financing will be used for the following: • Setup up of designated offices • Website development and marketing • Upgrade technical infrastructure and security of website and satellite users • Working capital.
1.3 Mission Statement
The Company’s mission is to become a recognized leader in its targeted market by offering premier services in __________.
1.4 Management Team
The Company is comprised of persons with a collective of more than ______ years of experience in the industry.
1.5 Sales Forecasts
The Company expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
COMPANY AND FINANCING SUMMARY
2.1 Registered Name and Corporate Structure
The Company is a duly formed corporation organized in the state of _____________.
2.2 Required Funds
At this time, the Company requires $__________ of equity. Below is a breakdown of how these funds will be used:
PRODUCTS AND SERVICES
Detailed descriptions of specific duties are attached hereto as Exhibit A. The list of services will expand as additional persons are added to the team.
As discussed in the Executive Summary, the Company will provide:
The following will comprise employees the Company intends to hire (comprise independent contractors the Company intends to engage):
STRATEGIC AND MARKET ANALYSIS
This section of the analysis will detail the economic climate, the industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
4.1 Economic Outlook
Presently, the economic climate:
4.2 Industry Analysis
Statistics on the industry provide that:
4.3 Customer Profile
The Company’s average client will be:
4.4 Competitive Analysis
While there is competition nationally, the competition locally (regionally):
The Company intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
Marketing Objectives include:
5.2 Marketing Strategies
The Company intends to initiate an aggressive marketing plan the _____ months of operation initially interacting with the specified demographics described in the business plan within the target market. These strategies include traditional print advertisements and internet-based marketing.
- Underlying Assumptions
- The Company will have an annual revenue growth rate of _____% per year.
- The Company will acquire $_________ of debt funds to further develop the business.
- Financing options will include a loan with ______ year term with a ____% interest rate
- Source of Funds
- Profit and Loss Statements
- Cash Flow Analysis
- Balance Sheet
Business Proposal Checklist
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___Review Carefully. Look over the document carefully to ensure it matches your intentions. ___Distribute Copies. Copy of this document should be maintained in the Corporation Record Book. This plan will be shared with partners and potential investors.
Disclaimer: It is strongly advised to have your document reviewed or advised on by an attorney. To speak with a lawyer about this document or any other legal need, please visit LawTrades.com.