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Writing Proposals

Internal External




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 dont 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.

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, Methodology, Staffing, Administration and Evaluation) Budget & Budget Justification Biographical Data and References Appendices

1. Title Page
It Contains: Project Title Project Team Institution Name Submission Deadline, 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

3. 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. Has to be persuasive: Include the facts and evidence, statistics that support the need for the project. Include an explanation of the project's significance and how compatible it is with your organizations programs. Give the reader hope.

4. Project Description

This section should have 5 subsections Objectives Methods Staffing Project Administration Evaluation

5. Budget
The budget must be calculated with

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

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

6. Biographical Data and References

Biographical data must be submitted

with proposals to show the background, areas of interest, research qualifications, capabilities, and publications of the person submitting the proposal and those who will be working on the project. A current list of references to relevant literature in the field.

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

Common Errors Made

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

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

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. content

Executive Summary
Most important part of the plan
30-second test Concise explanation

Venture objectives Market prospects Financial forecasts Sources and uses


Table of Contents
Include page numbers
List of headings

Major Subsections

The business plans 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

Sample: Statement of Purpose

This business plan is written to secure financing in the amount of $24,000, which will cover the following costs:

$10,000 in equipment $14,000 in operating capital

The loan will supplement the owners equity investment of $20,000, and will be repaid beginning the month after disbursement according to lender terms. Funds will play a crucial role in sustaining the business as the client base grows, and will allow the business to become self-sufficient by the beginning of year two.

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, opening date, hiring

employees, revenue levels/ growth) 1-3 year plan future milestones to reach (sales goals, hiring employees)

Business Description
Mission statement
Legalities: business type Basic product or service description New, takeover, expansion, franchise

General strategy plan List of planned milestones (business formation, opening date, hiring employees, reaching certain revenue goals) Planned strategic alliances
Work already done Experience in the business

Products and Services

Detailed description of products or

services Indicate stage of development: inprocess, prototypes, samples Patents or trademarks, legal contracts, licensing agreements, regulations, certifications The Brochure Section

Market Analysis
Industry analysis
Customers: individual, business Competition

Marketing Strategy
Cite Sources!

Market Analysis: Industry Analysis

Market background
Industry-wide information, trends Local industry information, trends

Market capture and expectations

Social, economic, legal, technological


Market Analysis: Customers

Customer definition, consistency
Individual customer demographics

Location, age, gender, occupation Ethnic group, lifestyle, education, income Sector, location, structure Sales level, distribution classification, number of employees

Business customer demographics

Rule of Three for Competitive Study

Why your company is superior Trends in competitive companies Similar and dissimilar SWOT (strengths, weaknesses, opportunities, threats) Lessons learned Advertising Eye on the future

Competitive grid and explanation

Competitive Grid
Competitor Offerings Shahnaz Hussain Mens/women's cut/styles/color perms Starts at $38 100% markup High traffic, highly visible 20+years, up-to-date trends Set hours, little schedule flexibility Low 11 active chairs Over 4000 Body Care Mens cuts only BEST CUTS Mens/ womens cut/ style/ color/ perms Starts at $30 75% markup High traffic, not visible 13+ 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, highly visible 15+ years, young hairstylists Manager never there High 8 active chairs ?

Marketing Strategy
Obtaining a profitable share of the entire


Product: sellable aspects, brand image Pricing: cost-plus or economic value Placement Promotion

Job descriptions of the decision makers
I do everything! Compensation, benefits

Contribution and background as

leverage to perform Advisory board

Production/ Operations
Logistics plant location, facilities needed, space requirements, capital equipment needed, labor requirements

If applicable: purchasing policy, quality control program, inventory control system, production cost breakdown, subcontracts

Environmental and other issues Further research and development What is done vs. what is TO BE done

Cost of construction: 7.8 million francs ($1.5 million). Weight of foundations: 277,602 kg (306 tons). Size of base area: 10,281.96 square meters (2.54 acres). Pressure on foundation: 4.1 to 4.5 kg per square centimeter Total weight: 8.56 million kg (9441 tons). Maximum sway at top caused by metal dilation: 18 cm (7 inches). Weight of elevator systems: 946,000 kg (1042.8 tons). 1671 steps to the top. 15,000 iron pieces (excluding rivets).

Maximum sway at top caused by wind: 12 cm (4.75 inches).

2.5 million rivets. Maximum sway at top caused by metal dilation: 18 cm (7 inches). 40 tons of paint.

Financial Plan

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

What is an Guaranteed Loan?

Loan obtained from a financial institution,

guaranteed by the Loans of various sizes

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, rent, or mortgage) Legal/ Professional Fees Equipment Supplies Salary/ Wages Utilities Payroll Expenses Internet

Licenses/ Permits
Insurance Advertising/ Promotions

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 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


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



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

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