When you intend to raise business funds then you must first settle it in your mind that what you are writing is a business proposal and it must be written as a proposition. One of the major synonyms for the word ‘proposition’ is ‘offer.’ Simply put, when you are working on a business proposition that will help you raise funds, you are supposed to be making an offer and when you are not making any offer then it cannot be referred to as a business proposition. I have seen a number of documents that people refer to as proposals that should not be called proposals. An essay about your lofty ideas should be different from the proposition you are making to a potential business partner or investor.
One major thing that you find lacking in very many proposals is what some people refer to as ‘What’s in it for me? (WIIFM).’ You cannot be writing a proposal and all you talk about is how good your ideas are and how well it can succeed in the market place if only you get the needed support from the person who is reading the proposition. Some proposals go on to tell you how the idea was conceived and when it was conceived but all that may do for someone is to help the person know that you are the original owner of the idea and that does not translate to money!
Some other people may even be good enough to tell you when they intend to start the idea and how every phase of the idea will go or when they will kick off but it really does not matter when you are not offering anything to the person who is going to drop the funds. What counts, apart from all the other nice outlines stating what you intend to do and when you intend to do them is what you are offering your sponsor or partner.
It’s called business and that is why the sponsor or partner wants to release the money. Maybe we should even do away with the word release because they are actually investing the money. It is not that some of them do not know what to do with the money. They know what to do with it. They want to invest in several businesses and grow their own income so that they can actually sit back and relax because they know their money is working for them. When you bear in mind the fact that they actually want to invest in what you do with the hope to make more money, then you will begin to work seriously on what the investor gets for investing in your business.
Your terms for partnership have to be spelt out if you are working on partnerships. The duration and the benefits during that time must be spelt out. Are you offering twenty percent profit of your monthly income or annual income or are you offering thirty percent profit. If you have your business well planned out then you should have an idea of how much you can make and what part of the profit you can offer to the investor. If you are going to be dropping part of the money then you can be talking about doing a fifty-fifty profit sharing business.
What you have cannot be referred to as a proposal until it offers something to the person who is expected to invest. Work on your propositions as from today and make sure they are offering something to potential investors.