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Writing Proposals

Internal External

Solicited

Unsolicited

PROPOSALS

Letters of Intent
 Usually short ,concise, brief, and clear.
 Read the instructions of the funding

agency, sometimes they specify the format and sections needed.

Concept Paper/Letter of Intent
 Project Introduction (Do some homework

about agency)  State the problem that needs to be addressed  Project Description (Objectives, Approach, new methods and benefits)  Time and Support Needed (If Budget is not requested don’t include)  Contact Information

Your authorization is needed for the initiation of the summer analyst program. I must emphasize the immediate and long-term benefits that will result from this new addition to human resources. It is a fast fix for our overworked employees during the summer, and it extends a successful hiring pattem for years to come. Please inform me of your decision within two weeks so that we can prepare for the university oncampus recruiting season beginning in January. As you have played an instrumental role in building the HR department, your thoughts are greatly appreciated. I would enjoy meeting with you to discuss the proposal.

Methodology. Administration and Evaluation)  Budget & Budget Justification  Biographical Data and References  Appendices . Staffing.Main Elements of a Proposal The following are major elements to be included in a proposal:  Title Page  Abstract (Executive Summary)  Statement of Need  Project Description (Objectives.

Title Page It Contains:  Project Title  Project Team  Institution Name  Submission Deadline.1. or the Date of Preparation .

2. Abstract/ Executive Summary This section is a summary of the whole proposal and the most important section. It should serve as a description of the whole proposal –  It must stand alone – even if separated from proposal It must be understood by both experts in your field and by generalists.  It might be the only section read by all members of grants committee who are not the primary reviewers but nevertheless their score is taken into consideration .

. Statement of Need  This section represents the reason behind your proposal and should specify the problem to be solved and the need to solve it or research it. statistics that support the need for the project.  Has to be persuasive: Include the facts and evidence.  Give the reader hope.  Include an explanation of the project's significance and how compatible it is with your organization’s programs.3.

4. Project Description This section should have 5 subsections  Objectives  Methods  Staffing  Project Administration  Evaluation .

go back through the proposal narrative and make a list of all personnel and non-personnel items related to operation of the project.5. . Budget  The budget must be calculated with reasonable accuracy.  The budget must be divided into direct and indirect costs.  As you start preparing the budget.

Preparing the Work Plan  Statement of the problem  Statement of the purpose and scope  Discussion of tasks to be accomplished  Description of final products or outcomes  Review of schedules and requirements  Plans for following up  Working outline .

. Biographical Data and References  Biographical data must be submitted with proposals to show the background. and publications of the person submitting the proposal and those who will be working on the project. capabilities. research qualifications. areas of interest.6.  A current list of references to relevant literature in the field.

 .Certifications.  .Letters of support. .  .7. Appendices This section includes documents and information which support the proposal such as:  .Illustrations.Figures and graphs.

unexplored areas . it does not work. The application is fragmented and disjointed Carelessness – “I don’t have to go into detail. There are no results of pilot studies or other preliminary data. The proposal tends to be too cautious and does not venture into new. There are no clearly defined priorities and timetable.Common Errors Made        The proposal is too ambitious. trust me and look at my track record” Cannot rely on your reputation. The Budget is unrealistic.

Business Plan elements        Cover Sheet Executive Summary Table of Contents Statement of Purpose Company History Business Description Products and Services .

 Market Analysis    Customers Competition Marketing Strategy  Management  Operations  Financial Plan  Appendices .

content .Cover Sheet  Identity information  The words “Business Plan”  Your name and business name  Company logo  Address  Telephone number  Fax Number  Email Address  Web Address (URL)  Submission date  Looks vs.

Executive Summary  Most important part of the plan  30-second test  Concise explanation     Venture objectives Market prospects Financial forecasts Sources and uses  WRITTEN LAST .

Table of Contents  Include page numbers  List of headings   Major Subsections .

 The business plan’s objectives: financing or operating Statement of Purpose guide  Financing      How much money is needed? What will the money be used for? How will the funds benefit the business? Why does this loan or investment make business sense? How will the funds be repaid?  Operating guide  Who will use it?  Will it layout strategy plans?  How will it be updated?  Becoming self-sufficient .

000 in operating capital The loan will supplement the owner’s equity investment of $20. .Sample: Statement of Purpose This business plan is written to secure financing in the amount of $24.000.000 in equipment $14. Funds will play a crucial role in sustaining the business as the client base grows. which will cover the following costs: • • $10.000. and will allow the business to become self-sufficient by the beginning of year two. and will be repaid beginning the month after disbursement according to lender terms.

hiring employees) . revenue levels/ growth)  1-3 year plan – future milestones to reach (sales goals. opening date. hiring employees.Company History  Mission Statement  Basic product description  Names of principals and brief background on each  Legalities: business type  Company location  Number of employees  Customer highlights  Your niche and unique qualities  Strategic alliances  Awards and merits  Company milestones (business formation.

takeover. reaching certain revenue goals)  Planned strategic alliances  Work already done  Experience in the business . expansion. hiring employees.Business Description  Mission statement  Legalities: business type  Basic product or service description  New. opening date. franchise  General strategy plan  List of planned milestones (business formation.

certifications  “The Brochure Section” . prototypes. regulations.Products and Services  Detailed description of products or services  Indicate stage of development: inprocess. legal contracts. licensing agreements. samples  Patents or trademarks.

business  Competition  Marketing Strategy  Cite Sources! .Market Analysis  Industry analysis  Customers: individual.

trends  Market capture and expectations  Social. trends  Local industry information. legal. economic.Market Analysis: Industry Analysis  Market background  Industry-wide information. technological issues .

age. gender. occupation Ethnic group. distribution classification. number of employees  Business customer demographics   . location. education. lifestyle.Market Analysis: Customers  Customer definition. income Sector. structure Sales level. consistency  Individual customer demographics   Location.

threats) Lessons learned Advertising Eye on the future  Competitive grid and explanation . opportunities.Competition  Rule of Three for Competitive Study        Why your company is superior Trends in competitive companies Similar and dissimilar SWOT (strengths. weaknesses.

up-to-date trends Set hours. highly visible 20+years.Competitive Grid Competitor Offerings Shahnaz Hussain Men’s/women's cut/styles/color perms Starts at $38 100% markup High traffic. little schedule flexibility Low 11 active chairs Over 4000 Body Care Men’s cuts only BEST CUTS Men’s/ women’s cut/ style/ color/ perms Starts at $30 75% markup High traffic. highly visible 15+ years. up-to-date trends Custom hours to suit clients needs Sole stylist 1 active chair Over 300 Service Prices Retail Prices Location Expertise Service Turnover Capacity Client Base Starts at $50 100% markup Moderate traffic. young hairstylists Manager never there High 8 active chairs ? . not visible 13+ years.

Marketing Strategy  Obtaining a profitable share of the entire marketplace     Product: sellable aspects. brand image Pricing: cost-plus or economic value Placement Promotion .

Management  Job descriptions of the decision makers  “I do everything!”  Compensation. benefits  Contribution and background as leverage to perform  Advisory board .

subcontracts  Environmental and other issues  Further research and development  What is done vs. capital equipment needed. production cost breakdown. inventory control system. quality control program. labor requirements  If applicable: purchasing policy. space requirements. what is TO BE done .Production/ Operations  Logistics  plant location. facilities needed.

Cost of construction: 7. Weight of elevator systems: 946.602 kg (306 tons). Pressure on foundation: 4.96 square meters (2.75 inches).5 million).000 kg (1042. 2.54 acres).5 kg per square centimeter Total weight: 8.8 million francs ($1. 1671 steps to the top.281. Maximum sway at top caused by wind: 12 cm (4.000 iron pieces (excluding rivets). Maximum sway at top caused by metal dilation: 18 cm (7 inches). Maximum sway at top caused by metal dilation: 18 cm (7 inches). .1 to 4.5 million rivets.8 tons). Weight of foundations: 277.56 million kg (9441 tons). 40 tons of paint. 15. Size of base area: 10.

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Financial Plan  THE PRIMARY EVALUATING TOOL   Support all information Make conservative projections  Start-up Budget: amount needed to open  Operating Budget: ongoing expenses once open  Sources and Uses Sheet .

Methods of Financing  Personal funds  Family/ friend loans and gifts  Angel investor  Venture capital  Grants  Personal loan  Business loan .

guaranteed by the  Loans of various sizes .What is an Guaranteed Loan?  Loan obtained from a financial institution.

What are the Requirements?  An excellent personal and business credit record  Adequate collateral  Cash investment: generally 20-30% of total project  Experience in the business you are starting  A solid business plan .

Financial Plan: Startup Budget  Personnel (costs prior to opening)  Occupancy (lease. or mortgage)  Legal/ Professional Fees  Equipment  Supplies  Salary/ Wages  Utilities  Payroll Expenses  Internet  Licenses/ Permits  Insurance  Advertising/ Promotions . rent.

Financial Plan: Operating Budget         Personnel Lease/ Rent/ Mortgage Loan Payments Legal Fees Accounting Supplies Salaries/ Wages Dues/ Subscriptions/ Fees  Repairs/ Maintenance          Insurance Advertising/ Promotions Depreciation Payroll Expenses Internet Payroll Taxes Travel/ Entertainment Miscellaneous 3-6 Months of Operating Capital .

Financial Plan: Sources and Uses  Sources of funds  Details of requested financing    Amount Use Terms .

SOURCES & USES OF FUNDS SOURCES OF FUNDS INVESTMENT CAPITAL Cash on Hand Investment by Founder Investment by Others Incentives and Grants DEBT CAPITAL Bank Business Loan Bank Personal Loan SBA Guaranteed Loan Other Loans TOTAL APPLICATION OF FUNDS Rent & Security Deposits Equipment/ Fixtures Leasehold Improvements Initial Inventory Working Capital Insurance Professional Fees Advertising Signage Contingency Reserve TOTAL .

CASH FLOW PROJECTION Month Cash In-Flows Sales Other Income Total In-Flows Cash Out-Flows Cost of Goods Sold Rent/ Mortgage Owner's Salary Other Salaries Advertising/ Promotion Utilities Loan Payments (current) Loan Payments (previous) Telephone Office Expense Dues/ Subscriptions Accounting Insurance Professional Fees Internet Repairs/ Maintenance Licenses/ Permits Travel/ Entertainment Legal Fees Bank Charges Miscellaneous Total Out-Flows Beginning Cash Balance Ending Cash Balance 1 2 Year One 3 4 5 6 7 8 9 10 11 12 Total .

Pro-Forma Income Statement Year Sales Less: Cost of Goods Sold Gross Profit Operating Expenses Rent/ Mortgage Owner's Salary Other Salaries Payroll Taxes Advertising & Promotion Telephone Office Expense Dues and Subscriptions Accounting Insurance Professional Fees Internet Repairs & Maintenance Licenses & Permits Travel & Entertainment Legal Fees Bank Charges Miscellaneous Depreciation Amortization Interest Total Operating Expenses Net Profit Before Taxes 1 2 3 .

Pro-Forma Balance Sheet (Opening Day of Business) CURRENT ASSETS Cash Accounts Receivable Inventories Prepaid Expenses Other Current Assets TOTAL CURRENT ASSETS FIXED ASSETS Land Leasehold Improvements Equipment Vehicles Other Fixed Assets Subtotal Fixed Assets Less: Accumulated Depreciation TOTAL FIXED ASSETS TOTAL ASSETS CURRENT LIABILITIES Accounts Payable Short-Term Debt Accrued Expenses Other Current Liabilities TOTAL CURRENT LIABILITIES LONG-TERM DEBT OWNER'S EQUITY Paid-In Capital Retained Earnings TOTAL OWNER'S EQUITY TOTAL LIABILITIES & OWNER'S EQUITY .

Appendices  Supplemental materials  Resumes of management team  Past three years of tax returns  Current bank statements  Copies of existing loans or notes  Interim income statement and balance sheet  Personal financial statement  Copies of legal documents  Copies of potential contracts  Letters of reference  TOTAL PACKAGE FOR A LOAN APPLICATION .

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