It is a bit quite difficult to start your own business; there are some points which should be taken care of. You should be aware of the pro and cons of the business you wish to start. You should have business plan that contains the entire pro and con and the nuances of the financial set up for the business. Preparing a good business that impresses the potential investor of your business needs a fresh and innovative idea that have the capacity to turn the investment into profits.
A business proposal stands for the proposal that a seller makes for the buyer, so that the buyer gets the total idea of the product he is about to buy. The proposal makes the buyer understands that the products that the seller is proposing consists of the requirements of the buyer. The proposal should have all the details of the business and the proposal that succeeds makes both the buyer and seller in a winning situation giving both the parties their share of profits. The business proposals are of three distinct types: proposals that are solicited formally, proposals that are solicited informally, proposals that are unsolicited. The proposals that are solicited formally are written for a published requirement containing a proposal request, a quotation request, bid invitation or a information request. The informal solicited proposal is made against a conversation between the vendor and the customer. This kind of proposal has no formal requirements. The unsolicited proposals are the marketing brochures that have no direct connection between the customer and its requirements.
Components for a business proposal
The business proposal of your business should have all the prerequisites that are necessary to make the proposal successful. The components for both the formal and informal proposals are different and should be taken care while writing your business proposal. The components for the formal proposal includes matrix for requirements, executives summary, technical volume, management volume, cost volume. These components are essential in the formal proposal. The informal proposal comprises of the description of the products, key issue, specifications, costing of the venture, and delivery time.
Financial planning of the business proposal
The business proposal is complete only when it has the proper planning of the finances. The planning of the finances includes the incoming and outgoing of the finances, the management of the finances, and looking after the sales to calculate the profit and its shares. The financial statement of the business plan does not need to be complied in sequence but if it is in sequence it is will be nice for you and the investor. The planning of the finances should be started with a forecast for the sales and its estimation, about how much you intend to sell and how the pricing is being done. It should include a budget for expenses, a statement for a cash flow, and projections of the income, the tricks you will be dealing with the assets and liabilities, and at last the breakeven analysis. These points should be kept in mind while writing the proposal.