By at February 17 2020 21:17:07
Will A Sample Business Proposal Help Me? Using a sample business proposal is OK if you are just looking for some tips on how to structure your own proposal. Of course this is predicated on the fact that the example aligns well with your business and is a good example. If you are looking around the Internet for sample business proposals it's a fair bet that you are not sure what is a good example and what is a bad one. For this reason you may borrow heavily from a poor example and this will actually detract from the thrust of your effort.
Information around target customers is not based in empirical fact, more observational opinion. Competitor Analysis is obsolete and doesn't track minor competitors or industry trends that could present opportunities. The business strategy doesn't intuitively line up with the financial projections of the business. Financial anomalies are frequent. The level of analysis in the financial section is low. Elevator analysis (only observational comments) is a glaring sign that no detailed analysis has been undertaken. The language style in the business proposal is inconsistent and in different tenses. The structure of the business proposal in terms of the content lay out does not flow intuitively. Think trying to fit a square peg into a circle! The proposal doesn't make a definite conclusion or sound argument to invest (or lend). The lack of analysis leads to inadequate risk mitigation leaving many questions unasnwered.
They lead to entrepreneurs skimming over the research component leading to a proposal that is disjointed and fails to make a cohesive business case. Having a sample business proposal as a guide detracts from the entrepreneur engaging fully in the business planning process in that they will have only a cursory understanding of the finer details of their proposal. It will not prepare the entrepreneur for detailed questioning around their business strategy and by association their financial projections. We have seen this all too often in presentations for equity finance. It is glaringly obvious when someone does not understand the proposal intimately and this devastates credibility and trust, virtually nullifying your chances of convincing an investor to part with their cash.
There are many very good examples of sample business proposals on the Internet, but there are also some scarily bad examples being held up as first class efforts. Having spent the last 20 years as a professional banker and investor I can say this with some degree of confidence. The bottom line is that even if you do manage to stumble upon a great example it won't be relevant to your unique business or the market dynamics that pertain to your business idea. The parties who will assess your proposal and decide whether to invest are generally well trained and experienced. They read hundreds of these documents every month and can spot a copy and paste job a mile a way.