How to write an investment proposal
At least one-third of startups fail due to a lack of business partners and financial support. You have to be very competitive when it comes to attracting investment. Don't put your business idea on the shelf, look for partners and investors with the bepartner - service for business partner match. A good investment proposal is the key to obtaining investment in your business project. We have put together our own checklist-template for writing an investment proposal.
What is an investment proposal?
The investment proposal is a document designed to brief the investor with the business idea, business stages and interaction of business partners.
The structure of investment proposal
- Short description of the project or business idea. These few phrases are the most important, because they are the first ones your potential investor reads. So make sure they are well written.
- Summary. Here you should briefly but convincingly write your value proposition, that is information about your target audience, their problem, your solution and the benefits it brings to customers and investor. Specify your return on investment. Talk about your success, if any, and your entrepreneurial experience. Keep it realistic and remember the key question: What does it give the investor? Make your proposal state that your idea can actually make a profit;
- Project details. In this section, write about the current state of the business, financial data, product information, product stakeholders, market conditions;
- Your marketing and sales strategies;
- Information about your team and business partners. Where the business is located, number of employees, equipment and technology you already have, and what else you need to acquire;
- Financials. Include your funding sources, projections, profitability, and exit plan;
- Try to avoid the following mistakes in your text.
Try to write so that the text is understandable to everyone, not only specialists, avoid professional jargon.
Write only relevant information. Your experience may be impressive, but if it applies to a completely different area, you do not need to create information noise.
Don't make your investment proposal long. An investment proposal is an important document for obtaining funding for a startup or business project. Therefore, give proper attention and time to its creation. The investor may not even begin to read it if the headline is not bright and clear enough. Write relevant and reliable information.
We hope that our tips will help you attract investment to your business. Have a great partnership!