Why You Need Investment Proposal! Are you asking: why do I need and invest proposal? Or at what stage of my business do I need an investor motivated investment proposal? In fact, these and many more questions of yours will be answered in this article.
Investor Needs Differ
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As a matter of fact, a Start-up investment proposal may be for an angel investor, investment company or government agencies. These three group of investors are looking at different parameters. While government agencies are looking at social economic results, the angel investor and financial institutions are watching the investment returns. In fact, to satisfy any of these needs and get your required investment is why you need a business investment proposal.
So, then, you are faced with; How do I write a business proposal for an investor? How do I writing the Perfect Investment Proposal. The answers to these questions are why you need investment proposal. That’s because that will deal with the components of the investment proposal. So, if you are wondering about How to Write the Best Business Proposal for Investors, here are what you should do.
Why You Need Investment Proposal
The investment plan will highlight what you are contracting with the investor. It will also give you details of your obligations to the investor. Then will highlight how you will go about meeting up with this obligations. Here, therefore, are why you ned the investment plan.
The investment proposal will help you articulate the following:
- A brief description of your project – you need to tell your investor what the project is all about. That will help you make decision. If you understand that certain social matters play role on investment decisions, then you know that this matters. For instance, some people may not like to invest in alcohol or betting businesses.
- Sponsorship of the project – This is important. It includes ownership and stake holding in the business.
- Management of the project as well as that of your company is important to the investor.
- Technical assistance/technical feasibility – your operational technical capabilities come to play here. This may deny you the investor, because the investor wants to be sure that his fund will be well managed as that both the principal and interest returns back to him in peace.
- Available market – how large is this market? Can you penetrate into the market? What barriers to entry are there?
- Government involvement or encouragement – Any incentives
- Globalization – any global or foreign exchange implications?
- Turnover targets – You need this to convince your investor that the level of turnover generated will be able to drive the business to success.
Why You Need Investment Proposal! – You Need Also:
- Manpower availability – all manner of manpower should be enumerated. You have to show that this is there to man the project activities. Technical Operations Management showing your management capabilities is necessary too. Remember to include the profile of your technical staff.
- Raw material resources – Are these locally available or do they need to be imported? What limitation does it pose on the project.
- The environmental analysis – The community and other associated environmental implications are needed.
- Social impact assessment – you have to show this in black and white. Remember what happens in the Niger Delta of Nigeria when projects are sited.
- A comprehensive financial investment requirements – you require a comprehensive list of you CAPEX AND OPEX.
- Project returns analysis – The investment appraisals in financial statements will reveal the necessary Project Performance indicators. The investor watches this so much.
- Projected Marketing Strategies or marketing mix – Yes. If the market is there, how do you want to penetrate into it? What market share are you driving at to achieve?
Why You Need Investment Proposal! More Information Need Here:
- Current achievement – The brief history of the project will include a highlight of your achievement so far. Take time to present this. You can use a table or graph.
- The project timeline – This shows the investor how long the project will take. It helps you too to keep track with your business goals.
- Your Company vision, aims and objectives are needed
- The project goals and mission which is always a subset of your company goals and missions must be highlighted here.
How to Go Forward:
Did you read through? What are your take away? Can we discuss them? Do you need an investment proposal now? Cheer up! I am just trying to see how we can be of help. Complete Full Marks Consultants Limited, the owner of this website are group of professionals. In fact, they are chartered accountants and management consultants. We re here to help you.
We bear your business start-up burdens. This we do this by developing a workable business plan for you. Be it specific or non-specific (management) business plan, we get it for you. Our feasibility analysis is what you need for your investment proposals. In fact, we hit your ground warm by registering your business at CAC and get your FIRS documentations etc.
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Founder/Managing Partner of Complete Full Marks Consultants Ltd. An Economist turned Chattered Accountant and Tax Practitioner with over 37 years of industrial experience.