This essay Elements of a business proposal has a total of 556 words and 3 pages.
Elements of a business proposal
The business description is among the most important elements of a business proposal. This is among the first elements that will determine whether I support the proposal from the students or not. The business description element of the business proposal explains the business activities of the business, how the business makes money and how it intends to increase its income. This element of the proposal is very important and therefore it should be very clear. A thorough business description tries to answer the questions- the reason for the formation of the business, the mission and business model of the business and existing strategic relationships that need to be leveraged. The section should include the entire information from simple identification information such as location, principal owners, the legal structure, and most complex information like an analysis of the market opportunity, the projected growth of the business and capital requirements of the business. From this information I shall be in a position to rate the innovativeness of the business, the viability of the idea, the future benefits that may be derived from the business, the reason for the formation of the business and the vision for the founders of the business.
This is another very important element of a business proposal. This parts of the business proposal should include the pricing policy, that is, how the owners aim to p rice the products or services, the relationship between the prices of the products or services and the corresponding image. In addition, the sales strategies show the proposed distribution method, that is, how the business will take its products or services to the market, and how the competitors get their products to the market. Promotional efforts are part of the sales strategies and shows the advertising and public relations methods of the company. This part is of great importance to the investors because it helps them to highlight the differences between the business' pricing and distribution strategies compared to that applied by the competitors.
This part of the proposal features the forward-looking projections and it includes the projected financial statements such as projected profit and loss accounts, projected balance sheets, and projected cash flow statements for the next four or five years. Using the financial projections it is very easy to calculate the probable profits of the business . The investors use this information to ascertain whether the proposed business will give them the value for their money and the payback period required by the business.
Segmentation, Targeting & Positioning
This element of the business proposal shows the market that the business wants to serve and how their service will differ from the service that the customers get from the competitor firms. In addition, this section shows the positioning strategy to be employed by the business. The positioning strategy should be different from that employed by the competitor businesses. The investor uses this information to assess the viability of the target market and the segmentation that the business targets. What is more, the investor uses this information to gauge buying behavior of the target market and the probability that they will buy more of the products or services offered by the business at the projected price.