How to write an Investor Proposal Template – Asking an investment for your business or project is challenging as you need to convince the investor that you are an excellent solution for certain problems for certain groups. So how you can make a winning proposal to encourage the investor in funding what you are doing?
Summarizing the Project or Business
Start your proposal with an overview of your business or project. It lets the investors know who you are and what you are doing. Do this briefly and include additional information such as your targeted groups or customers, the current issues, the solutions and the benefits of realizing them.
Stating the Problems
Now is the time to explain the problems more by giving a detailed description of them. Tell the investors what problems are facing by your targeted groups or customers so that you are doing this project or offering this product. Don’t state the solutions here because they belong to the next section.
After stating the problems, share your solutions. Describe what you are making, whether it is service or product, and why this is beneficial for the targeted groups or customers. This is an important part because the investors will highly consider how the solutions can address the problems. When describing your products or services, always keep it simple.
Don’t use jargon or technical words. Since you are requesting funds from your investor, it will be very impolite to let him think so hard just to process the words in your proposal and get what you mean. You need to make the investor understand every word that is written in the document easily. Your expertise in describing your products doesn’t have to be represented with a complicated description of your solution.
Describing the Targeted Groups
Let the investor know the people you are targeting with your product or service. Describe their characteristics and other necessary information to give an image in the investor’s mind what kind of people they are that makes them a nice target. Also, show the investor how big your market is and your goal in reaching them, for example, how much the percentage of the market you want to reach to measure the success of the business or project. Surely as the business owner, understanding your customers properly is very important as it gives you a bigger opportunity in getting their attention.
Explaining Your Business
The explanation here should be more about how you run your business or project such as what strategies or methods used in reaching your business’ goals and getting profits. You can also provide the special qualifications that make you different from your competitors so they can’t compete with you in certain things. Tell the investor as well about your position in the business and how long you have been doing this. All this information can help the investor in making a decision.
Here it comes the main point of the proposal, asking the funds. Don’t be shy and be open. Just tell how much money you want the investor to provide and how you will use the money. Explain what you are going to buy and why you need to buy them. You don’t want to hide anything in this section because it influences the result that you will get from the proposal.
You may also need to research your investor to check what qualifications are usually measured to accept an investment proposal. Knowing this information can help you find out what must be provided in your proposal.
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