It's been emphasized in every book that deals with
startup companies. But it probably can never be overemphasized.
A sound business proposal for the new business is what an entrepreneur requires
to impress lending agencies and investors. There are some components in the business
plan that is more important than others and an
entrepreneur needs to pay more careful attention to these components.
One of the most important aspects of a
new business proposal is the financial forecast of the plan. Angel Investors
and Venture Capitalist review this section of a business plan very closely. They
like to see an optimistic future.
While gleaming through a new business proposal, funders are looking to see how the
entrepreneur plans to invest the money that will be given to them, how they plan
to make it grow and the profits that they hope to make from it. The numbers are
a big part of what a business investor
is looking for in a proposal.
In the business proposal, the entrepreneur needs to show that he or she is committed
to the work. Most investors will look at the attitude of the entrepreneur presenting
the business proposal. Having prior business experience always works in favor of
the entrepreneur. Most investors
like to give the money to someone who has had experience in running a similar business.
Strong financial Information and records is definitely what a
business investor is looking for in new business proposals. An entrepreneur
should be able to show a cheery and optimistic future for the company. But at the
same time, the entrepreneur should use an accepted methodology for forecasting the
financial future of the company. Bankers and investors are familiar with the correct
content, organization and presentation of financial statements, and expect to see
them in the
Often, business investors spend time and pull up personal credit reports of entrepreneurs
who have submitted business proposals to the firm. An
entrepreneur who has poor credit history should spend sometime fixing the
credit history before approaching business investors.
Business investors are looking for a good marketing plan from entrepreneurs in the
business proposals. If an entrepreneur does not have a strong plan for marketing
in the overall business plan, the
entrepreneur might find that investors are not interested in taking a risk.
Finally, flexibility is critical to the success of all business organizations. Every
investor is looking to find that in every