Writing Your Proposal

Your best chance at having a winning business investment proposal is telling, rather than selling.
By showing numbers, facts, and figures rather than assumptions and baseless projections, you
gain the trust and confidence with what you’re offering your potential partners. Because at the
end of the day, getting financial help on a project or enterprise would also mean getting
investors.

Attracting them, however, is a totally different story, in which case the best way through it,
would be presenting them with a powerful and convincing proposal. This means you have to
include these things in your proposal and write them in their proper order as follows:

1. Executive Summary

This comprises of one or two paragraphs with a description or an overview of the proposal’s
content, presented in a list or bullet point format for easy reading so that you can also grab the
reader’s attention, which in this case, are your potential investors. You may also see small
business proposal templates.

2. Company Summary

This would include every important detail of your company such as name, address, the industry
you belong in, type of products or services available, subsidiaries, legal structure, position, etc.,
all of which makes up the things any interested party would need to know before they decide to
invest. You may also see music business proposal templates.

3. Products and Services

You may think this one should be pretty self-explanatory but this is where you need to get into
more detail and write down inventory, explain production costs, including selling prices and
sales projections for the next two to four years as well as whatever agreement you have with
existing suppliers. You may also see sample proposal templates.

4. Facilities

What type of construction is your office sitting on? Do you own or lease the property? Where is
it located? These are the questions you need to answer and you have to be clear about them. You
would also have to mention the equipment you use, both owned and leased, then provide details
for costs of tools and equipment as well as the current value of the ones you own. You may also
see consulting proposal templates.

Joint Business Venture Proposal Template

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5. Use of Budget/Funds

What are your plans? Where do you exactly need to use the investment on? You have to specify
whether they are for additional inventory, improvement of manpower or other areas like
marketing, sales or upgrade of facilities. You may also see restaurant business proposals.

6. Marketing

What’s your current marketing campaigns, activities? What’s the focus of your current
marketing efforts? Where does this investment come in your marketing plan and how would it
help market your product successfully? This is an important part of your proposal, so you would
also have to include information regarding sales, market analysis and research, competition and
SWOT analysis, among others.

7. Leadership and Ownership

This is where you would write down the name of the owner, the founder, the CEO the current
manager and whoever holds the highest position in the company. What is the company’s
organizational and management structure? Provide a list of all the employees with their
respective titles and positions. You also need to include forecast wages for the next 2-4 years.
You may also see simple investment templates.

8. Financials

For obvious reasons, before they start putting their money in your company, investors would
need information detailing the company’s financial standing which would mean you have to
provide a balance sheet, a forecast of the cash flow and your projected sales for a time period so
they would have a better understanding of the company’s financial position.

9. Investment Exit Strategy

This is something every businessman shouldn’t miss out on, in their investment proposal. The
investment exit strategy provides a fallback when the investor feels like their investment isn’t
really going according to plan.

Be Honest
Just because you’re asking for money doesn’t mean interested investors would hand you the
amount. You’re not necessarily asked to name the price of your simple business idea but you’re
asked to name how much you actually need to get in action. Sure, it’s tempting to just put an
amount which is more than what you really need but you have to remember that your proposal
needs to hold weight and lying about how much money you need isn’t going to help you sound
professional. In worst cases, asking for more than what you need would give a bad impression.

Tips for Writing a Business Proposal that Wins Investors

1. Start with the format

The proposal should have a cover page followed by pages of its contents. The body of the
document should begin with the executive summary highlighting what type of business you have
and what it’s all about, a recent record of its performance and achievements, assumed revenue
and profit projections for the next several years, the figures required for investment and the
investor’s potential return. You don’t need to explain, justify or defend the figures you have
indicated in your summary. This will come late on, in the rest of your proposal. The executive
summary would ideally have the following sections:

current and historical financial data, description of the company, an overview of the market,
financial projections, key personnel and investment offer with the market overview providing
information on target customers, strongest competitors, and emerging market trends. You may
also see investment contract templates.
2. Collect Your Figures

Whatever your current numbers are, they’re the most crucial piece of information to potential
partners and investors. This means you would have to include a copy of your business’ latest
bank statement, balance sheet, your yearly budget and 1099 for tax records. The balance sheet is
your detailed list of company assets and liabilities. Make a chart showing your profits and
expenses for the past three years. Include cash-flow statements and account receivables, journals,
and old reports if they prove helpful in showing you’re able to manage to be financially stable as
a business for a fiscal year.

3. Show Trends

Describe the sales numbers you presented based on both subjective and objective factors.
Explain why your sales have dropped or improved using details relevant to your business and
any data from credible sources such as market research or analysis, business publications or
government agencies. For example, the current decline in sales may have been caused by trade
deals in your industry that you have no control over.

Explain the strategies you’re using in addressing this. Your sales may have also increased
because of innovative marketing campaigns or new distribution channels opened. Use data on
current or recent sales and an overview of the market’s standing to get appropriate projections. In
doing so, your potential investors are assured that you’re not just producing figures out of
nowhere.

Business Proposal for Real Estate

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Apparel Sector Study and Investment Proposal

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It’s Time to Make that Offer

Lay your cards on the table and tell the investors what you want. You need to be clear and
specific in telling them what you plan to accomplish and what they’re going to get in return. This
is an investment, after all, so they would want to know what their takeaway is and how they’re
going to get it. This is also where you have to set the terms as well as your expectations with
them. You may also see perfect investment proposals.

After all, these have been settled, done, and dusted, what comes next is up to you and your team.
That means you have to be determined in not failing yourself, your stakeholders, including your
investors. You can have all the killer proposals in the world but it’s not going to make any
difference if you fail to do your job. You may also see business proposals in a word.

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A. How to Write Investment Proposal Template with Examples

1. Description of Proposed Investment Project. All investment proposals should start with a
brief description of the proposed investment project or idea. ...
2. Company Performance and Financial Report. ...
3. Planned Marketing and Sales Method. ...
4. Business Technical Operations Management. ...
5. Project Financing. ...
6. Project Timetable. ...
7. Exit Plan.

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As mentioned above, an investment proposal can be an ordinary text document or a PDF with graphics.
It can also be a presentation created with software such as PowerPoint or Keynote. The format of your
proposal largely depends on the type of investor you choose, but it’s always possible to go with all three
formats.

However, there are certain must-have elements in every proposal. They are:

Investment Title____________________________________________________

Everything starts with a name, and your proposal needs one as well. Ideally, it should be a few words
that describe the value of the future product or service and the direction you are taking it, such as the
market segment.

Example: Campervan Booking Platform

Catchy doesn’t necessarily mean enthralling. A title like our example gets straight to the point — in this
case, you want to build a platform people can use to rent a campervan.

Executive Summary

A business proposal for investors starts with a cover page, followed by a table of contents. The body of
the document should begin with an executive summary. In this summary, you should include your value
proposition — that is, a short statement that conveys information about your target customer, their
problem, your proposed solution, and the benefits your solution offers to the customer and the investor.

You should mention the ROI you expect to yield from the required investment right away. It’s also good
to relate success stories, if any, of your experience as an entrepreneur or of your company (in case your
startup is branching out from an established business) to further instill confidence in your competence.

Keep it realistic, and keep in mind a key question: What’s in it for the investor? Make your proposal
scream out that your idea can actually make money by creating a convincing proposition.

Project Details

This section requires all the facts and arguments supporting you as an entrepreneur, your company (if
you already have one), and your MVP — specifically, how you plan to bring it to life.

Company performance

If it’s an existing company, include a business description and provide historical and current financial
data. If you haven’t yet established a business, share information about products you’ve been involved
in and made a significant contribution to, the stakeholders in the current project and their
achievements, and compelling market statistics that underscore your startup’s potential.

Planned marketing and sales methods

In this part of the document, present all the research you’ve done on your market and its competition.

This section should also outline your marketing strategies and channels, and your sales strategy. A key
point here might be the pricing model you’ve chosen for your product and a rationale for why it’s the
most profitable one.

Operational team logistics

Another piece of information that can help potential investors form a positive opinion of your startup
and its potential is the structure of your current team — the one that will achieve your goals. This can
include the location of your business, the number of employees you have hired/ plan to hire, the
equipment and/or technology you need to get the project up and running, and any applicable
operational expenses.

Project financing

Seeing how this is the entire goal of the proposal, make sure you use accurate numbers and include lots
of detail. This part should specify the sources of funding, forecasts, timeframes, ROI, and the investment
exit plan.

An exit strategy is a crucial point in an investment proposal that’s necessary in two situations:

When a business has met predetermined investment criteria; or

When a business has failed to achieve its defined profit objective.

Usually, it’s a contingency plan with information on what to do to limit financial losses if the business
goes under.

Things to Avoid When Writing an Investment Proposal

The investment proposal can be a lifeline for any startup, so it’s crucial to make a compelling argument
for your case. At the same time, it has to be straight to the point and factual to highlight your
competence in your field. We’ve already discussed what will get you there, so here are some things that
you should avoid along the way:

Don’t make it complicated

The text should be understandable to anyone who reads it, not just your peers. Besides, using a lot of
jargon or complex phrases might sound like you have copied information instead of describing it in your
own words. Simple wording also shows you can be on even footing with your potential customers. How
can you attract someone’s attention if they don’t understand what you’re talking about?

Don’t be shy

Don’t beat around the bush when talking about the financial support you require. Be precise about
the amount of money you want to raise, what you will do with it, and why you need it.

Avoid irrelevant information

 Include only the information that is relevant. Your skills and experience may be impressive, but if they
aren’t complementary to the business or the proposal, they’ll simply create information noise.

Don’t be obsessive

Don’t fixate on any information you provide in the proposal, as this might be viewed as
unprofessional.

Don’t make it too long

A long proposal may not be read at all. Be considerate of the time someone will need to spend
reading and assessing your proposal, as well as of your own time.

Three Diverse Investment Proposal Examples

Here are some excellent templates you can draw inspiration from.

1) The first investment proposal example is the form of a landing page accompanied by descriptions and
illustrations of the startup and its competitive advantages. The proposed startup wants to build invoicing
software for small businesses.

2) The second startup investment proposal is a presentation that can be shown to an audience or sent as
a PDF. The template provides cues as to where you can insert in your own information.

3) The last type of investment proposal template is a traditional text document written as part of a
business plan. Click this link to download an editable template.

Conclusion

A project investment proposal is a key document that every startup needs to obtain financial support.
An ideal proposal provides accurate data and predictions that demonstrate to investors your
competence and ability to profit, which ultimately will repay their contributions.

If you want to increase your project’s chances of success, don’t jump into creating a proposal. Take time
to prepare the necessary information and make sure you write the proposal according to universally
accepted guidelines. After all, an investor might not even read it if the title isn’t catchy enough. So, pay
special attention to the proposal’s structure, and include only relevant information that creates a
positive, but realistic assessment of your startup’s potential. Don’t make abstract statements, and be
precise in your calculations.
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How to write the Perfect Investment Proposal – Investment Proposal Template

Venture Giants was responsible for reviewing thousands of investment proposals whilst it was in
operation in the UK. We were asked over and over on how to create the perfect investment proposal
and this article addresses that question.

We saw seemingly weak business ideas receive a lot of investor investor interest only because the
proposal had been well written and well thought out!

We believe it is possible for all entrepreneurs to write really great investment proposals (no matter the
experience level) – and this article hopes to explore some of the crucial elements that you should think
about whilst crafting your investment pitch.

We have also enclosed a sample investment summary below.

Our aim with Venture Giants is to create more and more resources of useful, actionable articles that can
assist entrepreneurs become ‘investment-ready’.

How to write the perfect investment proposal, explained by Venture Giants

The main purpose of this article is on how to write the perfect investment opportunity, that can be used
on any investment network.

Six points on the perfect investment pitch:

There is capital out there, so what is in it for an Angel Investor?

Your investment proposal must sound like it can generate profits by creating a convincing proposition
with clear guidelines in terms of ROI (return on investment). Regardless of what you are seeing in the
press and in the media about the recession and shrinking GDP – there will always be capital out there for
businesses. So your investment proposal must always emphasise this important point.

Keep it simple

We have seen it too many times. An entrepreneur submits a really good opportunity, but it turns out
to be too darn complicated! Yes agreed, it is important to show a potential angel investor that you know
your stuff – but keep your investment proposal simple and concise.
 When investors look through your investment summary, they are going to scan through it. Using
jargon like CMS, CRM etc. will inevitably confuse and put-off most investors and move them away from
your value proposition!

Ignore this advice at your own peril – use simple words like software – not a CRM solution! Online
media/advertising instead of PPC campaigns etc.

What sector are you in?

Another major point that I have seen entrepreneurs overlook is what industry sector their business is
in! Let me give you an example:

‘What industry sector is Google in?’

Think about it for one second…..

Immediate responses will inevitably always be: Computer technology, Software, AI, Internet .. ?

NO!

It’s Online Advertising!

Why? Because 96% of Google’s revenue comes from advertising! So your investment summary
proposal would nominate the industry sector as Online Advertising.

You do not want to lose potential investors because you chose Computers or Software instead of
Advertising or Media!

What is the Capital needed for?

Don’t be shy! Talk about your funding requirements with no shame!

 How do you wish to use the money that you raise? What will you purchase – and why is it needed?
These are all very valuable questions, and they must be addressed in your investment proposal.

Your career backgrounds?

Include your background/experience information ONLY if it is relevant to your business or investment

proposal.

Do you have complementary skills that will assist you in running your business and turning it into a
success? If so, talk about this. If not, does your management team have the necessary skills? Talk about
this! If not, then skip it for now.

Scalability

Does your business have global appeal? Make sure you include this if it does! Facebook, Google are
scaleable globally.

If you would like further in-depth analysis into the terms listed above, we have written entire articles
about each aspect of your investment proposal. All can be located in Venture Giants’ articles and
resources section.

How to write the perfect Investment Summary

An investment proposal template by a company called “Media Deals” is attached below. This proposal
received a lot of attention.

Please review it – and though it may not be related to your industry and/or business, this sample
investment proposal will at the very least give you an idea about the quality of investment proposals
that we send out to our registered investors.

Investment Title Guidelines:

The investment title of your proposal must explain what your business does. Create a compelling title
that will position your business to be understood instantly in the investor’s mind before they have even
read your investment proposal!
Consider also that the subject line of the email that is sent out to angel investors that you approach. A
catchy and snappy title will ensure that an investor will open his email and read your entire investment
proposal.

Sample investment Title: (25 Characters)

Media Trading Platform

2. Investment Summary Guidelines:

This is the public part of your proposal and must compel an investor to want to read the ENTIRE
investment description.

Ideas to mention here are:

Why your investment opportunity is attractive!

How much capital is needed, and how it will be used.

What will be the return on investment (ROI) for the investor and when will they see this return?

Ideally you should aim to write this paragraph AFTER you have created and drafted your entire
investment pitch below, so as to ensure that you do not miss out any important facts!

Sample Investment Summary: (500 Characters)

We have created a state of the art UK media trading system that offers print-media-buyers and ad-
sellers (newspapers, magazines and publications) the opportunity of accessing real-time print ad
inventory, which agencies and/or advertisers can either buy or bid for. We are seeking a £50k angel
investment to be used for Working Capital and Online Marketing. Based on our projections, Angel
Investors will see a ROI in year 2 of 34%.

3. Investment Description Guidelines:

Your Investment description will have to answer the question:

“What’s in it for the Angel Investor!” – I have seen it to many times! Entrepreneurs talk and talk about
their product and business…. And then nothing more!

Strike a balance. Talk about your business, how you will make money, why you are seeking investment
and how an investor will make a return!

This is your investment pitch – and don’t forget to add some industry statistics! A simple search on
Google will reveal some interesting facts that you can include in your investment proposal.

Venture Giants Insider Edge:

Your investment description is essentially your pitch or elevator pitch.

Address key issues like:

What makes your investment proposal an attractive investment opportunity?

How much money is needed, and how will it be used?

What will be the return on investment (ROI) for an investor and when will they see this return?

This can be effective as a teaser to attract the initial attention of an angel investor, particularly when
using email or an online angel investment matching service.

Sample Investment Description:

(3000 Characters)

Our online media trading system has been in development for the past 12 months. It offers print-media-
buyers and sellers the opportunity of accessing real-time print ad inventory, which agencies and/or
advertisers can either buy or bid for.
Publishers always have excess adverts to sell at discounted rates before their 7PM print deadline (the
‘deadline discount’ game) and there is great demand for this ad-space as it is usually heavily discounted.
But in the UK, there is no way of accessing these heavily discounted ads. The only way is to create
relationships with magazines, and/or, call each publication and ask them for a ‘deadline discount’.

Our online eBay type bidding system aims to solve this problem by enabling magazines, newspapers and
other publications to advertise their ‘deadline discount adverts’ to people wishing to purchase these
adverts. All discounted advertising space is automatically categorised by magazine type, ad-size and
cost.

Purchasing an ad on our online trading system involves a user simply ‘adding the advert’ to their
shopping basket and paying for it via a credit or debit card.

We expect to generate revenues from these purchases of between 6% and 8% on all transactions. It is
FREE for media publishers (magazines and newspapers) to upload their advert availability.

This trading platform can be scaled globally, and my longer term plans is to licence the platform to
individuals on a country to country basis. Apart from the upfront and ongoing revenues, further
commercialisation could come from INTERCONNECTING the databases together from each country. So,
a UK based customer who was looking to buy advertising space could also browse advertising
opportunities in India and if that customer from the UK system subsequently chose to purchase an
advert in a different country, we could automate and revenue share between licensees. The
commercialisation possibilities are endless.

The Industry

It is often stated that ‘offline media (magazines and newspapers) is in serious trouble’. However all the
real-data points to the contrary. According to the media handbook 2007, it is estimated that the value of
consumer magazines is £7.2bn and the business media industry – including magazines is valued at £18bn
to £20bn.

Magazines themselves – the printed ones – have continued to flourish in the last decade since the
launch of the Internet. At least one new title is launched every day of the year and has resulted in rising
total volumes of sales and of consumer expenditure on printed products.

The Advertising Association (AA) predicts a 15.6 per cent increase in consumer magazine ad-spend over
the next 12 years, taking overall advertising investment in the industry from £750m in 2006 to £889m in
2018, which is a view shared by the UK’s leading advertiser, Procter & Gamble, who have increased their
investment in print by 10.7 per cent over the last two years.

In Summary

We believe that our online service could do amazingly well in the fight against online advertising as
advertisers identify how effectively magazine advertising can build customer loyalty. Our online service
has now been created and is all set to launch.

I have had 10 years’ experience in the publishing business and I have worked with Random House and
learned their marketing methods. I have seen this gap in the market and I believe an online media
trading system is much needed. Using my skills and experience in this space, I believe that I can turn this
business into a great success and commercialise this media trading platform to generate sustainable
turnover and profit.

This media trading system is a win/win business solution for print media. Advertisers will get discounted
ad-space and publishers of magazine will get to move inventory in a much faster and streamlined way.

Please contact me to discuss this investment proposal further.

Venture Giants Insider Edge:

Always try to end with something that the investor should do – a call to action.

So use expressions like:

We have a full business plan available on request. We are very passionate about our business and we
would invite any interested angel investors to contact us to discuss this investment proposal further.

Always make it easy for angel investors to understand your business and investment proposal. Talk
about your background and business, and then talk about your product! Yes you have the scientific
knowledge on the chemical composition of Biodiesel, but an angel won’t so keep it simple!
Thank you for taking the time to read this brief outline, and I hope that it helps you to create a
compelling proposal to attract investment – whether it be through Venture Giants, or otherwise!

How to present a powerful business presentation to Investors

Angel Investor Report published a how-to guide on pitching to investors. They suggested that startups
need to:

Tell a story

Keep it simple

Speak naturally

Know their stuff

And use printed large format posters in an investor meeting

Angel Investor Report stated that a secret weapon that many entrepreneurs miss when pitching to
investors is the use of printed media, specifically full size posters and printed visual media that are used
in tandem with their investment pitch.

There is a simple reason behind this. If you are pitching at an investment event, too many entrepreneurs
are relying on digital media. When the pitch is finished, the power point presentation disappears for the
next person.

Freestanding printed posters can be used in your individual pitch meetings or in the background. The
posters will certainly leave a favourable impression to an investor over projectors, flat screen plasma
and laptops.
Reload Internet in Paddington, London offers same day poster printing that can be used for investment
proposal pitching. They can also advise startups on the best way to use posters for their investment
pitch. Details and the link are listed above.

Poster printing London

A Final Pearl:

As an entrepreneur you must learn to demonstrate that you can make an Angel Investor, money!

Convince investors who read your investment proposal that your business opportunity is sustainable
and that you are the person for the job!

Your investment summary must stay focused on how you are going to translate investment into profit.