Tips to Create a Business Proposal and Attract Investors

by Zaara 06, Jul 2021

Tips to Create a Business Proposal and Attract Investors

Business is not just a subject that can be thought but rather an experience that can only be learned and harnessed through inclusion. The word inclusion does have a definite meaning here. In this context, inclusion or inclusiveness refers to the condition wherein a person is solely focused and dedicated towards a larger goal. Therefore, he/she set smaller objectives and targets that drive them and their business towards a larger goal.

A standard Business Proposal is a comprehensive reference document designed by the founders of the business outlining the purpose of the business, market objectives, strategic approaches to market penetration, and estimated financial plan.

Tips to Create a Business Proposal

A well-drafted business proposal must comprise the company’s information to be referred to in the future by private investors and public shareholders to give them clarity on the goals, objectives, and various activities of the business in the market. With a juggernaut load of tasks that an entrepreneur performs daily, we bring to you a few simple steps that can assist an entrepreneur in his/her journey for business setup in the UAE by designing a formal Business Proposal.

1. About the Company – Activities, and Objectives 

This section introduces the business plan and, thus, comprises essential components that give the investors a clear idea about the company's offerings and goals. This section must constitute of the following –

  • Executive Summary – A clear and crisp introduction to the business, unique products or services, and any philosophical content such as inspiration for the name.
  • Vision Statement
  • Mission Statement – The company's goal in the market can either be for social causes, corporate success, and build a lasting name in the market.
  • Company Logo, Watermark, and Official contact details.
  • Problem Statement that the business will solve (If Necessary)
  • Objectives of the Business
  • Targets to achieve in the Market

2. Phase-wise Implementation Plan

To be foresighted and always prepared for market uncertainties and challenges, business owners need to create an implementation plan on their approach to entering, penetrating, and growing in the market. A phase-wise plan of action gives direction to new business owners about the approach taken towards setting up the business and how to develop the business over time. 

A basic phase-wise plan needs to consist of 5 years of foresightedness into the company’s future. A phase-wise plan guides the decision-makers of the company towards –

  • Knowing when to invest and divest.
  • Planning helps in deciding when to expand the business or shut down certain operations.
  • Planning gives insight to the company for deciding on brand building and marketing.
  • Planning helps to decide when the company is ready to collaborate or make new partnerships with other firms.

3. Well Defined Financial Plan for the business

Since the Business Proposal will cater to investors to attract their capital flow, it is only sensible that the proposal comprises the Financial Planning of the Business. Investors often prefer to know what the company plans to do with their capital investments and how they will receive beneficial dividend payouts by adding the company to their investment portfolio.

The most relevant keyword that business professionals associate with start-ups is funding.  Funding is the lifeblood of a start-up, and an adequate fund allows the company to offer quality products and invest in marketing to gain consumer attention. In the modern business ecosystem, investors of regional industries often flock towards attractive and feasible business ideas to hedge their investments. A proper financial plan must comprise of the following pointers –

  • Funding Sources in Business Lifecycle
  • Phase-wise allocation of the Funds
  • Strategy to Create Reserve Funds
  • Break-Even Analysis
  • Estimated Financial Projection

Once in contact with these investors, aspiring start-ups are exposed to a series of funding plans and options to gain investments. Still, it is the responsibility of the top management to decide the most strategically accurate investment option for the company's future.

4. Outline the Key Growth Factors

A new habit that entrepreneurs have grasped is to analyze the company's Key Growth Factors so that they can capitalize on those elements to not only become successful in the present but also to survive through ever-changing uncertain market fluctuations. In the era where business entities are becoming more data-driven day-by-day, so are the entrepreneurs who incorporate them.

New business owners or entrepreneurs have grown fond of data-driven strategies to start their ventures. With the use of market data, business owners estimate the company's key growth factors in the market. These Key Growth Factors are the main components contributing to the scalability of the business in the market. They can be internal growth factors such as progressive management tactics or external growth factors such as popularity among consumers.

How can Commitbiz Help?

We at Commitbiz comprise a team of specialized industry professionals that have been operating in the business setup sector for more than 15 years. With all the years of experience, we make sure that business owners can set up business in the UAE and various global business locations. We provide a complete array of business setup services ranging from business incorporation, company secretarial services, accounting & bookkeeping services to nominee director services. Contact us to know more about our services.