Looking for more information? Search this blog

Friday, September 30, 2011

How to write an effective business proposal in Nigeria

Whenever you have a business idea you know will do great and provide the kind of results that will be profitable, naturally a business proposal comes in handy. But not every business proposal is worth the effort in the eyes of those who are in a position to approve it for various reasons. Sometimes the business proposal doesn’t do a good job of explaining the business opportunity. Sometimes it might just be that the idea is relatively new and so is considered risky. So it follows that a good business proposal, one that is well written may not be sufficient to convince a potential client on the merits or benefits of the proposed business idea or opportunity. Not everyone is swayed by words or pictures, some ideas may sound objectively good but not good enough for some other people. It really requires some depth and skill to properly provide a basis for the business proposal to be accepted.
So in order to get to the heart of the matter – writing an irresistible business proposal let us really get to the heart of what a business proposal is and should look like.

What is a business proposal?
It is a documented business deal that offers and explains a business opportunity or idea and set out the requirements and implications of such an offer. In another way it could simply be termed a piece of document that identifies and explains a business deal or idea and spells out the conditions for setting it up and the benefits and who gets what. We could also say a business proposal is a contract between two or more parties that will yield an expected reward for all those involved.

Why write a business Proposal?
Business proposals are written in order to exploit a business opportunity. The person proposing the business usually does not have all the means to successfully exploit the opportunity and so needs to partner or gain the support of someone else in order to realize the opportunity. Let’s assume that you have identified an opportunity to market a particular product in a new market you have identified but you do not have the means to exploit that opportunity perhaps you lack the mobility to deliver the products or the warehousing facility or may be the finance, then writing a proposal to someone who has what you lack is the link between the opportunity and the desired profit.

How to write a powerful business proposal
Business ideas that have been identified and agreed upon must be properly spelled out in order to have a workable guide. The how of business proposal writing is the plan and its details spelt out and the role and rewards everyone is expected to contribute and receive. The steps involved in writing out the documents could follow this format, please note that you don’t state these steps verbatim but they merely reflect the questions that must be answered before they become irresistible.

What’s in it for me?
Before approaching anyone for a business offer first check to know what they would really like, that now becomes the basis of what is in it for them. If I am offered a deal in which my skills are needed then I must first know what is in it for me in terms of profit before I agree to be part of it.

What is involved?
What are the requirements of setting up the deal? How much do I have to invest in the deal or what other things am I supposed to bring with me to the table? That is the second thing that needs to be spelt out in the business proposal.

Who gets what?
Who gets what in terms of profit sharing formula? How much of the expected profit will come to me and how much will go to others involved.

Provide the details of the business opportunity
What are the potential risks involved? What are some challenges that may be faced? The other partners should be informed on time so that they don’t feel tricked later on when things start going differently.

At this point the business deal should be attractive because the profit and costs have been clearly spelt out. The details of the deal should be the last thing that should come up and preferably after the profit or motive of the deal has been clearly stated.

Tips and Warnings about writing a business proposal
Just because the deal has been sealed doesn’t mean that all is well certain other things still need to be put in place such as;

Get the approval and Set the terms of the business deal
If the details are acceptable, then get the other parties to agree to set terms. There must be terms and conditions that apply to the deal although in order to set boundaries and resolve disputes that may arise in the course of the business deal. This should come after the deal has been accepted.

Sign an agreement
Ensure that when the proposal is accepted that all parties involved sign an agreement that they shall be bound by the terms of the deal.

Want to have a professionally written Business Proposal you can sell to potential partners, investors or Suppliers? Contact me to help you write one: 0803 206 4106 or paulonwueme@gmail.com

1 comment:

  1. Great content, there is a lot to learn when writing a business plan. Also Business Planning is a vital step if you want to run your business, rather than have your business run you.