The Best Proposals

With all the business proposal resources out there,it is a prerequisite or you can say basic requirement for every business owners or business startups to have a decent business plan.Business proposal is like a sales pitch and you need to persuade the reader to take action after reading your pitch.Whether you want to convice a loan officer to give you money or a collaboration with other companies,your proposal skills will be the connection between you and your prospect.Before we start writing our proposal,there are some tips we need to keep in mind.We need to know which categories our proposal belongs to.For example,if you are writing a commodity proposal,your proposal should be straight to the point,focusing on price,delivery and product.Once you identified your business writing strategy,the next thing to go for is the style.

As I mentioned earlier,every categoies has their own standard rules of business writing.But generally,you must write in a way which is able to engage your reader and be sure to sound friendly.For better effect,write a personalized message at the top of your proposal for every prospect to let them know that you are happy presenting your proposal to them.For proper navigation,use necessary headings so that your reader able to skip some parts without missing the essentials.Another important point to remember is to list out all your important points in the beginning and if possible eradicate filler materials or put them at the end.In addition to that,add a request for feedback from your client so that you can improve your idea.

The most crucial point for an effective business proposal is to specify the benefits of working with your company.For this part,try to think from the reader’s perspective as they either need a solution or exploiting an opportunity.Why should anyone participate in your plan without any benefits?Many experienced writers use this strategy to increase their odds of succeeding by putting themselves in the reader’s problem.By showing the reader how they can provide a solution and solve the problem better than competitors,they gain a competitive edge.Basically,writing a proposal requires understand of both sides for better communication.

All in all,plan your business writing strategy before you write a proposal,think what type of proposal you are creating and by keeping your prospect in your mind.

For a businessman or entrepreneur,planning a budget is often harder than starting a business.But,having a well-planned budget not only can bring your business further but also serve as a guideline in how you can improve your business.Often,most businesses fail because the lack of a budget.Having a budget lets you estimate and forecast your revenue and expense so that you won’t risk spending more than you should.Today,I shall reveal to you 5 easy steps to plan a budget.

1.Keep Track

Create a simple spreadsheet using Microsoft Excel,Open Office or business/accounting software.Create a few  main columns and input your revenue and expense.Add a few subcagetory under each to create a detailed budget plan.

2.Up To Standard

Is your business is doing well in the particular niche?Let’s say you are in the insurance niche.Check out local library for more information regarding other business owners in this certain niche.If possible,join some association or speak to business owner personally to find out what is the likely revenue coming in.

3.Cashflow

There are times when unexpected events such as a long time supplier suddenly quits on you or a long term client not renewing his contract.It is important for you to set up a budget to stock up some cash to prepare for these unexpected events.

4.New Alternatives

If you are having trouble with your current supplier or service provider,you can take this chance to look for new alternatives.If possible,go for supplier with more credibility as it might do your business good in the long run.

5.Business Overview

It’s important to be consistent when setting up a budget.Different type of business has different requirements.Decide whether if you want to create a monthly,quarterly or yearly budget.If you are in a high risk business,it’s important for you to choose a monthly budget as you get to compare how your business fare without waiting for a long time.

Budgeting may seems like an endless task and you have the option to outsource it if you can’t cope but it is essential for business owner or entrepreneur to forecast your return on investment.Every business owner goal is to earn money and be sure to put budget planning in your checklist as it is able to enhance your business operation with efficiency.

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For writing a business plan,going with an official template will never go wrong.Here’s a template taken from a government website.

1. Cover sheet
2. Executive summary (statement of the business purpose)
3. Table of contents
4. Body of the document
   1. Business
      1. Description of business
      2. Marketing
      3. Competition
      4. Operating procedures
      5. Personnel
      6. Business insurance
   2. Financial data
      1. Loan applications
      2. Capital equipment and supply list
      3. Balance sheet
      4. Breakeven analysis
      5. Profit and loss statements
      6. Three-year summary
      7. Detail by month, first year
      8. Detail by quarters, second and third year
      9. Assumptions upon which projections were based
      10. Pro-forma cash flow
   3. Supporting documents
      1. Tax returns of principals (partners in the business) for last three years, personal financial statements (all banks have these forms)
      2. Copy of franchise contract and all supporting documents provided by the franchisor (for franchise businesses)
      3. Copy of proposed lease or purchase agreement for building space
      4. Copy of licenses and other legal documents
      5. Copy of resumes of all principals
      6. Copies of letters of intent from suppliers, etc.

Taken from:http://www.sba.gov/content/templates-writing-business-plan

In the previous post,I have discussed how we can create a business proposal using a software.But for many starters,buying one of those is costly and to keep cost at minimum,I will now teach you how you can prepare a business plan without spending a dime.

1.Entrepreneur or Small Business Association

Being a member or joining such association is beneficial for either starters or veterans.In the association,you can get various tips from the experts and guidelines free of charge.In fact,if they are acquainted with the client you are dealing with,you have a better chance of succeeding.In addition to that,you may encounter some entrepreneur who is in the same predicament as you are which you both can encourage each other and share pointers.

2.Library

If social gathering is not for you,heading to local library can be a  fine choice.Library has dozen of resources and templates which you can follow to create your business plan.

3.Close friends and relatives

This might be a bit of surprise but maybe some of your  relatives have gone through what you did before and can offer you a few pointers.

4.Internet

Internet is a great place to search for information if you have enough time.Though it is free,it will take you a long time to find genuine and valuable information as there are many sites  that are focusing on ads,products,services instead of content.

5.Business Consultant

This should be your final consideration if you have not prepare your business plan using the first 4 resources.First of all,a consultant is going to cost you and it is not that effecient as they are unlikely to know your business more than you do.Different views and styles may lead to confusion and it may take awhile to get it sorted.

Bottomline,a business plan can be simple or difficult depending on the type of business you are dealing with.But,once you have done one,you will get better in the future.