The 7 Stages of Writing a Startup Funding Proposal
Your proposal is the first impression you make on an institution you are requesting funds from. It consists of your goals, plan, and the evidence to back them up. Funding is typically rejected for three reasons. Either the source does not believe in your plan, the source does not believe in your qualifications, or the source does not trust your budget. Here are the seven stages of writing a startup proposal.
Summary
“Begin with a summary that gives a good overview of your project. Discuss things such as what you want to accomplish, your means of meeting those goals, how long things will take, and your budget,” advises James Meredith, business writer at Academized.
You will also want to give an account of your present financial situation. Give the reader some information about your balance sheets and income, and provide projections on future income. If you’re in debt, outline what your plan is for eliminating it. Put your summary on a separate sheet of paper before your main body of text. Summaries are best written after you have finished the main proposal.
Introduction
Your introduction will provide information about your company, including its name, location, its employees, and what it does. Talk about your company’s goals and include your mission statement. What is your motivation for doing what you do? What makes you qualified to receive the funding you’re requesting? Give some examples of your accomplishments and provide evidence. If you’ve received endorsements, include them here as well. Demonstrate that you have the experience and know-how in the area of activity you’re seeking funds for. Keep this section brief and free of jargon.
Objectives
“This section is about what you hope to achieve. Remember to talk about your goals, and not your methods. Talk about the problems your startup is going to solve, and how people will benefit,” recommends Betty Oliver, editor at EssayRoo.
Give a timeframe for accomplishing your objectives. Make sure that everything you talk about in this section is measurable. There should be a tangible method of determining if you were successful.
The Plan
Here is where you explain how you will achieve your objectives. Provide a detailed discussion of the methods you’ll be using, who will be using them, and when in the project they will be carried out. Describe the activities you’ll be undertaking and the reasons for them. Explain in what order you’ll be carrying out these activities and who will be staffing them. Remember to tailor each of your proposals to the financial source you’re appealing to. Do some research on each one so you can address the questions and concerns they are likely to have. Make sure your proposal is well written and carefully proofread. There are services and tools such as BoomEssays, SimpleGrad, UKWritings, and StateofWriting that can help.
Measures of Success
Explain how you will measure your progress. How do you define success? Present your plan for determining and measuring your achievements. Talk about how you will evaluate your methods and adapt them over the course of the project. Inform the reader of who will be evaluating your project’s level of success and why they were chosen. Explain how you will be gathering and analyzing your data, and give them an idea of what your reports will cover.
Budget
Here you will provide a realistic estimate of all the costs that will be involved in starting and operating the project. Break your budget down into categories like salaries, supplies, and rent. You should explain how the money you’re requesting will be allocated, as well as how other sources of funding will be spent. Don’t include any unexplained funds or contingencies. Include every item the funding source has requested of you. Remember to include funding that is going towards consultants. Tailor this section to each financial source, investors and lenders need different information, because one is concerned with loan repayment, while the other needs to know about the return on their investment.
Wrapping Up
Be sure to include all necessary documents that provide the evidence to back up your assertions. This can refer to legal documents, financial statements, and any other documents the lending or investing institution has requested. Write simply, clearly, and concisely. Don’t use broad statements, everything you say should be specific, relevant, and backed up with proof. Show your proposal to some colleagues or friends, someone not familiar with it, before you submit it.
Conclusion
To receive funding for your startup, you need to convince the lender or investor that you are worthy based on your plan and qualifications. Do your research for each institution you make a request of, so you can tailor your proposal according to their interests.
