How to Write Investment Proposal Template with Examples

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How to Write Investment Proposal Template with Examples

 

Entrepreneurial success often occurs when different factors work hand in hand to create a good environment for a business to thrive. And one of these important factors is the presence or abundance of money or, in business terms, investment capital.

And too often, business ideas are not realized due to the lack of capital or investments. But if you are serious in either starting or revamping a business, you first need to create a sound business plan and pair this with an equally compelling investment proposal.

In this article, we will help you create the best investment proposal for your business by sharing the most important components of an investment proposal. In addition, we have also included examples of multiple free proposal templates so that you will have an idea on they look like and use these actual printable templates for your own business proposal.

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What is an Investment Proposal?

In the entrepreneurial world, a proposal is a document that details suggestions and a plan of action towards achieving a certain goal or task. And when a proposal is written to gain the attention of and the monetary support from investors, lenders, and financial institutions in order to fund and seed the beginnings or the continuing operations of a business identity, property, asset, or other legal money-making schemes, this proposal is called an investment proposal.

How to Write an Investment Proposal

The most compelling investment proposal is the document that succinctly and accurately informs a potential investor what is in it for him or her if he or she decides to bankroll the said project. And to make sure that your investment proposal embodies these characteristics, we have created a list of the most important parts or pieces of information that should be included in your written investment proposal. Find out what these are below…

1. Description of Proposed Investment Project

All investment proposals should start with a brief description of the proposed investment project or idea. It is in this part of your proposal where you get to share with the world what your business idea is all about. Or, if you want more funds for an already launched business, you need to write about the things that you want to do in order to re-energize your business.

Remember that this portion of your proposal is the first thing that potential investors will see and read so make sure that its first few paragraphs are written well. Do not hesitate to reword and create multiple drafts of this proposal introduction just so you can make your proposal as compelling as possible.

Simple Printable Proposal Template

Free Download

2. Company Performance and Financial Report

Another must-include section in any investment proposal is a section about your company’s performance and financial background. If you already have an established company, it can be very easy to include a snapshot of your business records (like the company financial report) and achievements in this section.

On the other hand, if you have not yet launched your business, you can replace this section with information about you (the business owner), how you came up with the business idea or project, and what you intend to do with the business once you get all the funding you need.

Simple Investment Proposal Template

Free Download

3. Planned Marketing and Sales Method

Another important component of an investment proposal is a market research and what your action plans to dominate your market. To illustrate, a thorough market research study will allow you to know who your competitors are in your chosen field or industry. After reviewing the results of this study, you need to come up with different strategies that you can implement in order to maintain or gain a market lead. And you need to list all these planned action plans into your investment proposal.

A good investment proposal will include information on your planned marketing and advertising strategies, pricing models, employee acquisition process, product sources, etc. Your proposal needs to include as much information as possible to help any potential investor make a better assessment of your business’ potential.

4. Business Technical Operations Management

Investors would want to know everything about your proposed business idea or project before they commit to being full-pledged investors. That is why you need to also include all the technical and operational aspect of your planned business.

This means that your proposal needs to include information about the people you intend to hire for the business, the business location, the operating costs, the equipment suppliers, the sources of raw materials, manpower resources, and other expenditures.

Business Proposal Investors Template

Free Download

5. Project Financing

Investment proposals are not complete without a section on project financing. This is especially important for potential investors since this will state what will any investor get out of funding your business idea or project.

Information like the source of funds, the return of investment, projected gains and losses, the profitability of the business, possible loans, and other financing options should be clearly stated in the investment proposal. This will provide investors with a clear understanding of how much their money or resources can help your business and how much they will gain in return.

Also, make sure that you do not falsely represent your business by making unverifiable claims on this section of your proposal. Investors can do background checks or redo the math of your financial projections. And when they find out that you have embellished some portions of your proposal, you may not only have just lost a potential investor but it may also affect your reputation as an entrepreneur.

Stock Investment Proposal Template

Free Download

6. Project Timetable

A business or project timetable should also be included in your investment proposal because this will let potential investors know the length of their agreement with you (the business owner). This is also important for business owners since timetables allow them to keep on track with their own business goals.

7. Exit Plan

A sound investment exit plan is another important component of an investment proposal. As its name suggests, this section of your proposal should include information on how investors can divest of their investments with your business or company. Exit plans should also include information for how your business will deal with business failure.

Real Estate Investment Proposal Template

Free Download

And that’s it! Those are the seven most important components of an investment proposal. Optimize your proposal for them and do not forget to use actionable verbiage throughout the proposal narrative. That way, you will have a very engaging and compelling proposal that will entice as many investors as you like.

By the way, do not forget to use any of the free proposal templates embedded in this article as your guide in creating the best investment proposal for your company.


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