How to Write a Business Proposal [Examples + Template]

Meredith Hart

Published: December 05, 2023

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Here's what every new business owner needs: an extra 8 hours in the day, an endless supply of coffee, and, most importantly, a really strong business proposal.

how to write a business proposal: image shows a person holding a pen and another person typing on a laptop

A business proposal can bridge the gap between you and potential clients. Done correctly, and it will outline your value proposition and persuade a company or organization to do business with you.

Here, we'll take a look at the various kinds of business proposals and go over how to write one. We’ll also see some ideas and examples to help guide yours.

Know exactly what you need? Jump to one of the following sections:

What is a business proposal?

Types of business proposals, how to write a business proposal, business proposal templates, business proposal example, tips for writing a business proposal, business proposal ideas.

A business proposal is a formal document that’s created by a company and given to a prospect to secure a business agreement.

It's a common misconception that business proposals and business plans are the same. However, a proposal helps you sell your product or service — not your business itself.

Think of it this way: instead of assisting your search for investors to fund your business, a proposal helps you seek new customers.

Follow Along With HubSpot's Business Proposal Template

business-proposal

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There are two types of business proposals: unsolicited and solicited.

  • Unsolicited Business Proposals : With unsolicited business proposals, you approach a potential customer with a proposal, even if they don't request one, to gain their business.
  • Solicited Business Proposals : Solicited business proposals are requested by prospective clients so that they can decide whether to do business with your company.

In a solicited business proposal, the other organization asks for a request for proposal (RFP). When a company needs a problem solved, they invite other businesses to submit a proposal that details how they'd solve it.

writing business proposal for funding

Propose your business as the ideal solution using our Free Business Proposal Templates

  • Problem summary
  • Proposed solution
  • Pricing information
  • Project timeline

You're all set!

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Fill out the form to get your template.

Whether the proposal is solicited or unsolicited, the steps to create your proposal are similar. Make sure it includes three main points:

  • A statement of the organization's problem
  • Begin with a title page.
  • Explain your why with an executive summary.
  • State the problem or need.
  • Propose a solution.
  • Share your qualifications.
  • Include pricing options.
  • Summarize with a conclusion.

Before writing your business proposal, it's crucial you understand the company. If they've sent you an RFP, make sure you read it carefully, so you know exactly what they want.

I recommend having an initial call or meeting with any new clients to ensure you fully understand their objectives. Ask open-ended questions to understand not just what they want, but why they want it.

Once you've done your research, it's time to begin writing your business proposal. While there's no one-size-fits-all approach to writing a business proposal, there's several elements most proposals include. (I designed this example business proposal using Canva .)

1. Begin with a title page.

You have to convey some basic information here. Introduce yourself and your business. Be sure to include:

  • Your company's name
  • The date you submitted the proposal
  • The name of the client or individual you're submitting the proposal to

Your title page should reconcile engagement with professionalism. I think of it as your first tone-setter, so you need to make sure yours is sleek, aesthetically appealing, and not too "out there."

Here's an example of what a business proposal template looks like when done right:

How to Write a Business Proposal: Business Proposal Example Title Page

The executive summary details exactly why you're sending the proposal and why your solution is the best for the prospective client.

Specificity is key here. Why are you the best choice for them?

Like a value proposition, your executive summary outlines the benefits of your company's products or services and how they can solve your potential client's problem.

After reading your executive summary, the prospect should offer a clear idea of how you can help them, even if they don't read the entire proposal. Here's what one should look like:

How to Write a Business Proposal: Sample Executive Summary

3. State the problem or need.

This is where you share a summary of the issue impacting the potential client. This is your opportunity to show them you understand their needs and the problem they need help solving.

How to Write a Business Proposal: Example Event Overview

In the example above, I included several signals to showcase my expertise – that I've been in the photography biz for 10 years, that I've worked with over 500 clients, and that I've been featured a number of publications. 

As you approach this section, focus on presenting yourself as an authority. Consider leveraging tools like:

  • Case studies
  • Client testimonials
  • Relevant awards
  • Industry accreditations

6. Include pricing options.

Pricing is where things can get a bit tricky, as you don't want to under or over-price your product.

How to write a business proposal: Include Pricing Options

The pricing section of your proposal could include:

  • A detailed pricing breakdown, including packages, tiers, and add-ons or optional services
  • How product features and benefits align with pricing choices
  • Pricing for different needs and budgets
  • How your pricing compares with competitors
  • An FAQ section to respond to anticipated objections and explain your pricing strategy

7. Summarize with a conclusion.

After sharing the above information, simplify it all into one final section.

  • First, briefly summarize the proposal. Be sure to share your qualifications and why you’d serve as the best choice.
  • Then, to prompt further conversation, confirm your availability to go over the next steps.
  • At the end of the proposal, the goal is to have the client ready to work with you. So, be sure to offer your contact information for easy follow-up.

In need of some inspiration before you begin writing? Here are example business proposal templates from popular business proposal software companies you can use to help create your proposal.

1. HubSpot's Free Business Plan Templates

HubSpot Business Proposal Template

Download these Templates

We know how crucial a great business proposal is to your and your client’s success. That's why we've compiled 2 Free Business Proposal Templates for you to use and customize for any of your projects.

You'll gain access to a concise, one-page template (pictured above), as well as a longer template for you to refine your plan and proposal.

Download the templates now to get started on building your proposal.

What We Like

The one-page template is clear, straightforward, and easy to read — without skipping on the key elements of a business proposal. This format is especially useful for busy clients who appreciate brevity and clarity.

2. Web Design Proposal

Business Proposal Templates: Web Design

With advertising on social networks projected to reach $82.23 billion dollars in 2025 , it's in your business's best interest to have a plan for growing your client's social media presence.

To help you in that effort, the information in this social media marketing proposal includes an executive summary to help introduce your high-level ideas, an assessment of the client’s company to show your diligence, and a breakdown of billing to show how your company charges for posting, content creation, and analytics.

This template includes all the bells and whistles of a social media proposal packaged in a fun yet professional design. It also includes helpful writing instructions under each section.

8. Content Marketing Proposal

Business Proposal Templates: Content Marketing

Business proposal templates are helpful places to get started, but what should your business proposal look like when it's complete? This template should inspire you.

When pitching your content marketing services to clients, this template can help you organize your ideas. While it walks you through initial objectives and how to communicate your prospected results, one of the most helpful parts of this template is the pricing ideas it gives you when charging for your services.

In the business template example below, Social Portal Consulting (SPC) pitches a marketing proposal to Graphic Bean. At first sight, this proposal appeals to the creative. I recommend going a step forward and designing the layout in your or your client’s brand colors.

Business Proposal Example: Social Media

Besides the design, the social media icons quickly tell the prospect what platforms Social Portal is pitching. Because we see Facebook, Twitter, Instagram, and Pinterest icons, the client instantly knows that this proposal doesn’t include LinkedIn, YouTube, or other platforms.

While maintaining its design, this example outlines Social Portal Consulting’s plans efficiently. It begins by providing insight into Graphic Bean and its goals before elaborating on how SPC can leverage its expertise to help them achieve them.

This business proposal template includes an easy-to-follow timeframe for goals and objectives while keeping the client abreast of how payment will happen across the project.

Overall, this is an excellent example of how to combine the elements of social media marketing into a creative and concise business proposal. Finally, we'll leave you with some business proposal ideas to get you started on your own.

  • Start with an outline.
  • Keep it simple.
  • Stay on brand.
  • Quality control.
  • Include data and visuals.
  • Add social proof.
  • Use a call-to-action.
  • Create a sense of urgency.
  • Make the decision for them.
  • Incorporate video into your proposal.
  • Include up-sell and add-on opportunities.
  • Clarify your terms and conditions.
  • Include a space for signatures to document agreement.
  • Create a table of contents.

1. Start with an outline.

If you want to produce a thoughtful, effective business proposal, you need to have some idea of what you're hoping to achieve with it.

Before I dive into writing a proposal, I always outline the major sections of the proposal that I want to include. That way, I can stay focused and make sure my message stays intact as I write.

Use these free business proposal templates to make sure that your outline includes everything you need.

2. Keep it simple.

Ultimately, there's no definitive blueprint for how long a business proposal has to be. Yours should be however long it takes to convey the information you want to get across.

That said, I'm a firm believer in quality over quantity, especially when it comes to business proposals. Keep your sentences short and simple, and avoid including too much business jargon.

You want anyone who picks up your proposal to make sense of it. So, be straightforward and don't get too fancy. Aim for substance over flash.

3. Stay on brand.

Don't be afraid to let your company's personality shine through in your proposal. Stay true to your brand and show the client what sets you apart from your competitors.

4. Quality control.

I've made it a habit to add an editing/QA step in my writing process. During this step, I do a quick spelling and grammar check before hitting send.

So, as you draft your proposal, and after checking for the basics, keep scanning this document until it's just right.

Check to make sure your proposal:

  • Meets client needs and expectations
  • Highlights your value proposition
  • Is well-structured and easy to read or skim
  • Complies with legal, ethical, and regulatory requirements
  • Looks professional and engaging

5. Include data and visuals.

You want your business proposal to capture your prospect's attention and help set you apart from any other ones they might have received. One of the best ways to do that is to include hard, quantitative data that helps stress the value of your business.

Use relevant, compelling figures that highlight what you have to offer. This can establish authority and make your proposal more convincing. It also helps to include visuals such as charts and graphs to enhance your proposal.

6. Add social proof.

From my experience, you can only be so convincing when you're personally talking up how great your business is — which is why adding social proof is key to establishing credibility.

At the end of the day, prospects are skeptical. They may not take you at your word. But they'll likely trust peers and fellow customers. That's why including elements like customer quotes and testimonials can go a long way.

7. Use a call-to-action.

I've learned that the best proposal in the world can only take you so far if you don't clearly define the next steps. That's why you have to make sure the reader knows what to do after reading your proposal.

A clear call-to-action is the best way to get there.

Define and highlight exactly what they should do to act on the interest your proposal has generated. Without that guidance, you might leave your reader in limbo.

HubSpot customers : Use this CTA builder to create powerful customized CTAs.

8. Create a sense of urgency.

No one wants to feel as if they missed out on a great opportunity. From my experience, prospect tend to drag their feet and put off making a decision if there isn't a sense of urgency.

So, as you create your business proposal, your goal should be to add a degree of urgency. When prospective clients read your business proposal they should feel that the best time to sign up for your service is now .

One way I accomplish this is by stating short and long-term goals for their business. They'll have to wait for the long-term goals, but I make the short-term goals so enticing that they'll be ready to begin a collaboration.

9. Make the decision for them.

Craft your copy in a way that seems like saying "no" to the proposal would be stepping over dollars to pick up pennies. Your offer should go above and beyond their expectations. Do everything in your power to remove friction and objections along the way.

10. Incorporate video into your proposal.

If you're creating an online proposal using document file formats like PDF, add multimedia elements. This will enhance the proposal experience, make your document richer, and keep them engaged.

Try adding a video at the beginning as an intro to your proposal. Or, put a video in the project breakdown to verbally discuss some of the more confusing parts.

Extras like this can make an impression. This tip works especially well with prospects who are visual or auditory communicators.

Pro tip : HubSpot Video makes it easy to record and embed video into a website or email for a big proposal boost.

11. Include up-sell and add-on opportunities.

They say you won't receive unless you ask. And readers won't explore the upper tiers of your solutions if you don't give them the opportunity.

So, share some upsells and add-ons about your business that they can act on. Call out a specific pain point and how this extra can add value.

With this step, balance is important. Show them everything your business has to offer without overwhelming your recipient.

12. Clarify your terms and conditions.

Your business proposal should include details on your project timeline and payment schedule. This summary is basically what you and the client agree to if they accept your proposal.

How to write a business proposal: Example Terms and Conditions

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How to Write a Business Proposal in 7 Steps

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Whether you’re a B2B or a B2C company, you’re in the business of convincing customers to choose to spend their money with your business. For a B2B company that process usually involves a business proposal. In the B2B industry, once you've attracted new customers, which are most likely other businesses, you have to actually make a deal. Unlike B2C companies, who use marketing strategies and then hope their customers respond and purchase their product and service, there's a little more involved in this exchange. That's where your business proposal will come into the picture.

Luckily, even though your process and the exact format for your business proposal can be unique to your company, there is also a general formula you can follow to make things easier, especially the first few times you write a proposal.

In this guide, we'll walk you through the general steps of how to write a business proposal—including how to decide what kind of proposal you're writing, how you should organize it, and what information you should include.

writing business proposal for funding

How to write a b usiness proposal: 7 essential steps to follow

With these starting points in mind, let's get down to the process. Whether you’re just learning how to write a business proposal, or want to change up the one you’ve already been using, you’ll want to break down writing into a step-by-step approach. The organization is key when you’re writing a business proposal—structure will not only help you answer the core questions mentioned above, but it’ll also help you create consistent, successful proposals every time you’re pitching new business.

This being said, when writing a business proposal, you can break down the document into these sections:

Introduction

Table of contents

Executive summary

Project details

Deliverables and milestones

Bonus: Appendix (if necessary)

Step 1: Introduction

The introduction to your business proposal should provide your client with a succinct overview of what your company does (similar to the company overview in your business plan). It should also include what sets your company apart from its peers, and why it’s particularly well-suited to be the selected vendor to undertake a job—whether the assignment is a singular arrangement or an ongoing relationship.

The most effective business proposal introductions accomplish more with less: It’s important to be comprehensive without being overly wordy. You'll want to resist the temptation to share every detail about your company’s history and lines of business, and don’t feel the need to outline every detail of your proposal. You'll want to keep the introduction section to one page or shorter.

Step 2: Table of contents

Once you've introduced your business and why you're the right fit for the client you're submitting the proposal to (a quasi-cover letter), you'll want to next create a table of contents. Like any typical table of contents, this section will simply outline what the client can expect to find in the remainder of the proposal. You'll include all of the sections that we'll cover below, simply laid out as we just did above.

If you're sending an electronic proposal, you may want to make the table of contents clickable so the client can easily jump from section to section by clicking the links within the actual table of contents.

Step 3: Executive summary

Next, your business proposal should always include an executive summary that frames out answers to the who, what, where, when, why, and how questions that you’re proposing to the client lead. Here, the client will understand that you understand them.

It's important to note that despite the word "summary," this section shouldn't be a summary of your whole business proposal. Instead, this section should serve as your elevator pitch or value proposition. You'll use the executive summary to make an explicit case for why your company is the best fit for your prospect’s needs. Talk about your strengths, areas of expertise, similar problems you’ve solved, and the advantages you provide over your competitors—all from the lens of how these components could help your would-be client’s business thrive.

Step 4: Project details

When it comes to how to write a business proposal, steps four through six will encompass the main body of your proposal—where your potential client will understand how you’ll address their project and the scope of the work.

Within this body, you'll start by explaining your recommendation, solution, or approach to servicing the client. As you get deeper within your explanation, your main goal will be to convey to the client that you’re bringing something truly custom to the table. Show that you've created this proposal entirely for them based on their needs and any problems they need to solve. At this point, you'll detail your proposed solution, the tactics you’ll undertake to deliver on it, and any other details that relate to your company’s recommended approach.

Step 5: Deliverables and milestones

This section will nest inside the project details section, but it’s an essential step on its own.

Your proposal recipient doesn’t get merely an idea of your plan, of course—they get proposed deliverables. You'll outline your proposed deliverables here with in-depth descriptions of each (that might include quantities or the scope of services, depending on the kind of business you run). You never want to assume a client is on the same page as you with expectations, because if you’re not aligned, they might think you over-promised and under-delivered. Therefore, this is the section where you'll want to go into the most detail.

Along these lines, you can also use this section of the prospective client's proposal to restrict the terms and scope of your services. This can come in handy if you’re concerned that the work you’re outlining could lead to additional projects or responsibilities that you’re not planning to include within your budget.

Moreover, you might also want to consider adding milestones to this section, either alongside deliverables or entirely separately. Milestones can be small, such as delivery dates for a specific package of project components, or when you send over your first draft of a design. Or, you can choose to break out the project into phases. For longer projects, milestones can be a great way to convey your company’s organization and responsibility.

Step 6: Budget

There’s no way around the fact that pricing projects isn’t easy or fun—after all, you need to balance earning what you’re worth and proving value, while also not scaring away a potential client, or getting beaten out by a competitor with a cheaper price. Nevertheless, a budget or pricing section is an integral part of a business proposal, so you'll want to prepare your pricing strategy ahead of time before getting into the weeds of any proposal writing.

This being said, if you fear the fee might seem too high to your potential client, you might decide to break out the individual components of the budget—for example: social media services, $700; web copywriting $1,500—or create a few different tiers of pricing with different services contained in each. The second approach might not work for all types of businesses or proposal requests, but it may be worth considering if you’re worried about your overall fee appearing steep.

With these points in mind, once you've determined how to outline your pricing, you'll list it out (you might even include optional fees or services) and the overall cost for the scope of work you've described.

Step 7: Conclusion

Finally, your conclusion should wrap up your understanding of the project, your proposed solutions, and what kind of work (and costs) are involved. This is your last opportunity to make a compelling case within your business proposal—reiterate what you intend to do, and why it beats your competitors’ ideas.

If you're writing an RFP, again, meaning a potential client has requested this document from you, you might also include a terms and conditions section at this point. This end-on piece would detail the terms of your pricing, schedule, and scope of work that the client would be agreeing to by accepting this proposal.

Bonus step: Appendix (optional)

After the conclusion, you might also decide to include an appendix—where you add any supplemental information that that either doesn’t fit within the main proposal without being disruptive for the reader, or is less than essential to understanding the main components of your proposal. You’ll likely only need an appendix if you have stats, figures, illustrations, or examples of work that you want to share with your potential client. This being said, you might also include contact information, details about your team, and other relevant information in this section.

If you don't have any additional information to include, don't worry—you can end your business proposal with the conclusion section.

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Once we uncover your personalized matches, our team will consult you on the process moving forward.

Business proposal considerations

Before you dive into determining how to write a business proposal that will give you a competitive edge, there are a few important things to keep in mind.

First, you'll want to make sure that you’re accomplishing the right objectives with your proposal. When writing a business proposal, you’re trying to walk a line between both promoting your company and addressing the needs of your would-be client, which can be difficult for any company to do.

This being said, you'll want to remember that a business proposal is different than a business plan, which you likely already wrote for your company when you were starting your business. Your business plan spells out your company's overall growth goals and objectives, but a business proposal speaks directly to a specific could-be client with the purpose of winning their business for your company.

With this in mind, in order to write a business proposal for any potential client, you'll need to establish your internal objectives and how these will contribute to the work you're proposing. To explain, you'll need to consider the following:

What tasks will need to be done for this work?

Who will do each task, and oversee the job at large?

What you’ll charge for the job?

Where will the work be delivered?

When will it be done?

Why are you the best fit for the job the client needs to be accomplished?

How will you achieve results?

Not only are these questions at the heart of clear and concise writing, but you also won't be able to write your business proposal without answers to them. So as you're going through the different pieces of your business proposal, keep in mind the objectives of your business, while also remaining persuasive regarding why the potential client should work with you instead of someone else.

The next important thing you'll need to keep in mind before you start writing a business proposal is what kind of proposal are you writing. Essentially, there are two types of business proposals—solicited proposals where someone requested the proposal from your company—and unsolicited proposals, where you're sending the document to another business unprompted.

In the case of solicited proposals, often called RFPs (short for a request for proposal), it’s likely that this potential client already knows at least a little about your business. With these kinds of business proposals, you'll want to spend less time convincing the client that you're the best small business consultant for the job and more on making your proposal feel custom to their specific brief, project, or problem. On the whole, the less generic your business proposal is, the more likely you are to win the work.

Unsolicited proposals, on the other hand, are much harder to sell.

As you’re writing a business proposal to a company that doesn’t know they may need your services, you’ll want to focus on getting them to understand why your company is specifically unique. You want to show them that you can add significant value to their business that they don’t already have. If there is currently someone performing the function you would like to, the sell will even be more difficult.

Business proposal examples

So, now that we've gone through all of the steps to show you how to write a business proposal, let's discuss some examples. As you go through the writing process, you might find it's helpful to consult external resources to review business proposal samples or templates and see how other businesses have structured these types of documents. Specifically, it might be even more helpful to review business proposal examples that relate to your particular industry—such as marketing, advertising, or finance.

General business proposal sample

If you're looking for a general business proposal example, you might consult BPlan, which offers advice, examples, and templates for the documents that are required to plan and operate a small business. In the BPlan sample, BPlan breaks their example into three overarching parts—a problem statement, a proposed solution, and a pricing estimate. This may be a good place to start if you're writing a business proposal for the first time and need a simple, general example to follow.

For a solicited proposal or RFP, you may want to reference a business proposal example that specifically operates under the assumption that you've been asked for this proposal. In this case, you may check out one of the downloadable RFP templates from Template Lab.

Template Lab offers both Word and PDF versions of their templates—and these business proposal samples will include sections more appropriate for RFPs including terms and conditions, scheduling, and points of contact.

Business proposal template services or software

For the most advanced and plug-and-play type business proposal samples, you may decide to utilize a service like Proposify or PandaDoc. These software services allow you to choose from their library of professionally designed and outlined business proposal examples (which are also usually industry-specific) and customize the template for your business's needs.

It's important to note, however, that although you may be able to sign up for a free trial for these services, most of them will eventually require a paid subscription.

5 best practices for writing a business proposal

Writing a business proposal can seem overwhelming at first, as it requires you to provide information about your company and its services as they relate specifically to what your prospect needs. As you go through the process again and again, however, it will become easier and easier to write a succinct and effective business proposal.

This being said, there are a few best practices you can keep in mind to help you as you get started:

1. Be direct.

Although you might feel the urge to show off your language skills while trying to impress a client, when you’re writing a business proposal, tour best bet to win business is to be clear, concise, and direct. You won't want to use overly flowery language or anything that could possibly be misconstrued.

2. Don’t leave room for ambiguity.

You'll want to make sure your proposal is straightforward and easy to understand, with no room for misinterpretation around what you say you’ll do or deliver.

Therefore, you'll want to avoid overly complicated industry jargon to be sure your client can understand exactly what you're talking about and what it means within the scope of your (and their) business.

3. Write for the right audience.

If you were writing a proposal for a specialty food business, it shouldn't look or sound exactly the same as if you were writing a proposal for an asset management company. You'll always want to keep your audience in mind as your craft and develop your proposal.

Ultimately, your best bet is to be straightforward, clear, and stick to the details, but you also shouldn't be afraid to tailor your writing to your audience so that your client feels that the proposal has truly been created with their business in mind.

This being said, your proposal should show that you not only understand your potential client but that you also respect them professionally.

4. Consider a title page.

Although this may not be necessary for a shorter business proposal, a title page can help with the general organization, flow, and professional feel of your document.

Like a title page for any other type of report, this one-page cover sheet would precede the remainder of your proposal and would likely include your business's name, contact information, and logo, as well as who you're submitting the proposal to.

Depending on your business or the potential client you're submitting the proposal to, you might decide that a title page is unnecessary, however, it's worth keeping in mind that it may be something to visually draw in your reader from the start.

5. Err on the side of brevity.

Finally, within the world of business proposals, shorter is usually better. This isn't to say, of course, that you should leave out details or omit important sections—it simply means that you should try to find the most succinct way to say what you need to say and get your point across to the potential client.

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The bottom line

There's no doubt about it—learning how to write a business proposal is a lot of work. Luckily, however, you can follow our steps so you know what to include in your proposal and how to include it.

Ultimately, selling your services to potential clients is part of running and managing your business and as you do it again and again, it will only become easier.

This being said, as you go through the lifecycle of your business, you'll begin to accumulate a library of business proposals that you can continuously reference and use to develop your pitching strategy and writing process based on proposals that have and have not worked. And, hopefully, by taking the time to invest in this business proposal process, you'll be winning the work you need to grow your business.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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Blog Business

How to Write Winning Business Proposal: Examples & Free Templates (2024)

By Aditya Sheth , Jan 25, 2024

How to Write Winning Business Proposals

The great Mark Cuban once said, “Sales cure all.” If a business doesn’t sell, it doesn’t make money and by extension the business fails. That’s why you need to write business proposals .

A well-written business proposal can often mean the difference between winning or losing a prospective client.

In this in-depth guide to creating business proposals, we show you how to close more deals, make more sales and crush your business goals — all by using easy-to-edit professional business proposal templates .

Here’s what this guide will cover (click to jump ahead):

What is a business proposal.

  • How to write a business proposal step by step

What should you include in a business proposal?

What are the types of business proposals, more business proposal examples + writing and design tips.

  • FAQs about business proposals

Looking for a shortcut? Watch this quick video for an overview of everything to include in your business proposal:

An effective business proposal is a document used by a B2B or business-facing company (this may not always be the case, but most B2B SaaS companies do so) where a seller aims to persuade a prospective buyer into buying their goods or services.

A business proposal outlines what your business does and what you can do for your client . It can be general like this business proposal example:

general business proposal template

Or it can be more specific, like this business proposal template which focuses on proposing a project for the Newton Center Rail:

simple business proposal project proposal template

Or this business proposal sample, which presents a plan for a social media strategy and campaign:

social media marketing business proposal template

To design a business proposal that holds the client’s attention, identify their pain points . Then provide your buyer with the right solution to alleviate those frustrations.

How to write a business proposal step by step

Before you start creating your business proposal template, you need to understand the business proposal format. At a high level, your effective business proposal should include the following:

Table of contents

Executive summary, the problem statement, the proposed solution, qualifications, the timeline, pricing, billing, and legal, terms and conditions, the acceptance.

Below, you can see business proposal examples that demonstrate how to include these 10 sections.

Business proposal title

A compelling title could mean the difference between someone reading your proposal or ignoring it in favor of a competitor’s . 

What makes a good title page? Here are the essential elements to include: 

  • Your name along with your company’s name
  • The name of the prospect (or their business) 
  • The date you’re submitting the proposal

Gray Business Consulting Proposal Template Cover Page_Venngage

The gray business consulting proposal template above contains all the details a prospect would want to know. The title also offers a strong tangible benefit to the prospective buyer. Honestly, “Who doesn’t want to grow their business?”

The table of contents is a fundamental part of every winning business proposal template. It makes your proposal scannable and easy to read.

The people you will be pitching to are usually C-level executives. These are busy people who don’t have time to read your entire proposal in one go.

That’s why most of the business proposal examples in this list include a table of contents.

Adding a table of contents to your document makes it easy for them to go through it at their own pace. They can also skim through parts of the proposal that they deem more important. You can see how this abstract business proposal template uses the table of contents:

Creative Social Media Business Proposal Template Table of Contents

You can also make your business proposal template easier to navigate by adding hyperlinks to the document, particularly in the table of contents. This way your clients can jump to specific sections without having to scroll through the entire document. 

It’s easy to add hyperlinks in the Venngage editor. Select the text you’d like to turn into a link, then click the link icon in the top bar. From there, select the page you want to link to! Then download your completed design as an Interactive PDF .

Proposal-ToC-Example

The executive summary is a staple in all kinds of annual reports , leadership development plan , project plans and even marketing plans . It is a concise summary of the entire contents of your document. In other words, write a business proposal outline that is easy to glance over and that highlights your value proposition.

The goals of your executive summary are:

  • Introduce your company to your buyer
  • Provide an overview of your company goals
  • Showcase your company’s milestones, overall vision and future plans
  • Include any other relevant details

This gray business proposal example has a detailed yet short executive summary including some social proof in the form of clients they’ve worked with:

Gray Business Consulting Proposal Template About Us

Take note of how precise this business proposal example is. You want to keep your executive summary concise and clear from the get-go. This sets the right tone for the rest of your proposal. It also gives your buyer a reason to continue reading your proposal.

Pro Tip: Try to write an executive summary such that, even if your prospective client doesn’t read the entire proposal (with a good executive summary, they most likely will), they should have a clear idea about what your company does and how you can help them.

The point of writing a business proposal is to solve a buyer’s problem. Your goal is to outline the problem statement as clearly as possible. This develops a sense of urgency in your prospect. They will want to find a solution to the problem. And you have that solution.

 A well-defined problem statement does two things: 

  • It shows the prospect you have done your homework instead of sending a generic pitch
  • It creates an opportunity for you to point out a problem your prospect might not be aware they had in the first place. 

Texture Business Proposal Template

This bold business proposal template above clearly outlines the problem at hand and also offers a ray of hope i.e. how you can solve your prospect’s problem. This brings me to… 

The good stuff. In the proposed solution section, you show how you can alleviate your prospective buyer’s pain points. This can fit onto the problem statement section but if you have a comprehensive solution or prefer to elaborate on the details, a separate section is a good idea.

Spare no details regarding the solution you will provide. When you write a business proposal, explain how you plan to deliver the solution. Include an estimated timeline of when they can expect your solution and other relevant details.

For inspiration, look at how this business proposal template quickly and succinctly outlines the project plan, deliverables and metrics :

Sales Plan Proposal Table Template_Venngage

At this point, the prospect you’re pitching your solution to likes what they’re reading. But they may not trust you to deliver on your promises. Why is this?

It’s because they don’t know you. Your job is to convince them that you can fix their problem. This section is important because it acts as social proof. You can highlight what your company does best and how qualified your team is when you write a business proposal for a potential client.

business proposal qualifications section

This free business proposal template showcases the company’s accolades, client testimonials, relevant case studies, and industry awards. You can also include other forms of social proof to establish yourself as a credible business. This makes it that much more likely that they will say yes!

Pro Tip: Attaching in-depth case studies of your work is a great way to build trust with a potential client by showcasing how you’ve solved similar problems for other clients in the past. Our case study examples post can show you how to do just that.

To further demonstrate just how prepared you are, it’s important to outline the next steps you will take should your buyer decide to work with you.

Provide a timeline of how and when you will complete all your deliverables. You can do this by designing a  flow chart . Or add a  roadmap  with deadlines. Pitching a long-term project? A timeline infographic would be a better fit.

If you look at this abstract business proposal template below, even something as simple as a table can do the trick.

Abstract Business Consulting Proposal Template Timeline_Venngage

The timeline is not always set in stone, rather it’s an estimation. The goal is to clarify any questions your potential client might have about how you will deliver for the underlying B2B sales process.

On this page, you can outline your fees, payment schedule, invoice payment terms , as well as legal aspects involved in this deal. You can even use the  Excel Invoice Template  to create professional-looking invoices (including brand logo and other elements) and add them to this page.

The key to good pricing is to provide your buyer with options. A  pricing comparison table can help with this. You want to give your client some room to work with. Make sure you’re not scaring off your client with a high price, nor undervaluing yourself. 

Breaking up your pricing in stages is another great way to make sure your potential client knows what he’s paying for. Look at how this simple business proposal template does this:

Bold Business Proposal Template Pricing Page_Venngage

The legal aspects can slot right into the terms and conditions section. Alternatively, you can add them to the signature section of the proposal to keep things simple.

Summarize everything you have promised to deliver so far. Include what you expect from your prospective buyer in return.  Add the overall project timeline from start to end, as well as payment methods and payment schedule. This way, both of you will be clear on what is being agreed on.

This step is very important as it outlines all the legal aspects of the deal. That is why the terms and conditions section of your proposal needs to be as clear as possible.

Modern Business Proposal

I recommend consulting a lawyer or your legal team when working on this section of the business proposal. If you’re a business veteran and understand the legalities of your business, you can use the same terms and conditions across all your proposals.

The final step of this whole process. Your client has read your business proposal and they want to buy what you have to offer.

Add a small section at the end of your proposal to get the necessary signatures. This way, you and your client can sign the proposal and the partnership becomes official.

Be sure to also include your contact information in your business proposal template. It acts as a gentle prompt to your client to contact you in case they have any questions. A professional way of doig that would be to include an e-business card with your contact details, email i.d and any other social links you want to share. You can go through this article for the best digital business cards .

Orange-Simple-Project-Proposal-Template

A business proposal usually aims to answer the following questions: 

  • Who you are and what your company does
  • The problem your buyer is facing
  • The solution your company offers to alleviate the problem
  • How your company will implement this solution effectively
  • An estimate of resources (time, money, etc) required to implement the solution

You can see how this sample business proposal template covers the above points.

business project proposal template

Notice how this proposal template addresses the same project like in one of the previous templates, but uses a completely different design style (more retro, while the previous business proposal template is more modern and minimalistic).

Generally, there are three types of business proposals:

1. Formally solicited 

A formally solicited business proposal is made when you respond to an official request to write a business proposal.

In this scenario, you know all the requirements and have more (if not all) information about a prospective buyer. You simply need to write the business proposal for your buyer to evaluate so you can begin the sales process .

2. Informally solicited 

Informally solicited business proposals are written when there isn’t an official request for a proposal. A prospective buyer is interested in your services and asks for a proposal so they can evaluate it.

An informally solicited proposal requires a lot more research from your end. These types of proposals are usually created out of informal conversations. They are not based on official requests which often contain more detail.

3. Unsolicited 

Think of this as a marketing brochure or a cold email . Unsolicited business proposals will often take a generic, one-size-fits-all approach to business proposals. Unsolicited proposals lack any understanding of the buyer or their requirements.

But with additional  market research , personalization and identifying customer pain points , you can propose a customized solution based on your buyer’s needs. This can be a very persuasive approach, such as in this business proposal example:

corporate business proposal example

Now that you know how to write a business proposal, let’s look at how you can optimize your proposal to deliver results!

Below you’ll find some winning business proposal templates and examples to get you started. I’ve also included some design tips to keep in mind when you’re creating your next business proposal: 

1. Know your audience 

If you have some clarity on who your ideal buyer is — their pain points, their budget, deadlines, among other things — you’ve already won half the battle.

If you are a business that helps clients with everything from running giveaways or helping grow their blog , identify which customers to pitch. This is a sure-shot way to close the deal.

Mapping user personas  for your ideal buyer can help bring some clarity. It will also help you position your business proposal correctly. This improves the chance of your buyer moving your business proposal to the “Yes!” pile.

2. Put your brand front and center

If your company follows certain brand guidelines, incorporate them in your business proposal templates. Consider how business proposal examples like the one below highlight brand identity :

content marketing plan business proposal example

From the color palettes to the company logos , everything follows their brand guidelines. The result: a business proposal that’s consistent across the board.

Pro Tip: Switching this template to match your brand assets is actually pretty easy. Venngage’s My Brand Kit feature allows you to import your color palettes, logos as well as font choices. Any Venngage template can now be your template.

You can also consider this sample business proposal template:

Example of a Business Proposal

Design companies sure do know their design. They did a phenomenal job keeping their brand colors consistent while opting for a black design. This unique color scheme also makes their white logo prominent throughout the proposal.

3. Try less text, more visuals

Have you ever read a proposal and thought to yourself, “Wow, this is all text and has no images, I love it!”? Yeah, me neither.

The free business proposal template below is a perfect example of the “less is more” principle. It does a phenomenal job of communicating what it needs to. By substituting some of the text with icons and visuals, you get a clean business proposal that’s much more scannable.

Social Media Plan Proposal Template

Want to keep things strictly professional? Instead of icons, you can always add your team’s headshots. This shows your buyer exactly who they’ll be working with.  

Check out this formal business proposal format for some inspiration:

Red Human Resources Consulting Proposal Template Team

4. Switch up your business proposal designs

It doesn’t hurt to go above and beyond once in a while. Jazz up your business proposal template with some extra colors. This helps make your business proposal more engaging. It also helps your buyers retain information faster.

Simple Business Proposal Example

The business proposal example alternates between black, white and grey backgrounds. It still manages to maintain consistency in its branding . Just switching up your backgrounds once in a while can also bring in some variety to an otherwise standard business proposal.

This SEO business proposal sample proves that it’s possible to switch up the colors in every other page. But it still maintains the same color scheme across the entire proposal just like a professionally designed website : 

SEO Marketing Proposal

Pro Tip: Not a color expert? Our guide on picking colors can help you pick the right color scheme for your proposals.

FAQ about business proposals

What is the purpose of a business proposal.

A business proposal aims to streamline the B2B sales process (which is often complex ) between you as a seller and a buyer.

It does this by serving the dual purpose of acting as a source of information. The proposal also acts as a sales pitch aimed at convincing your buyer why they should buy what you have to offer.

What are the best practices for business proposal design?

  • Do a thorough spell-check. The goal of your business proposal is to convince your buyer why you’re the perfect person for the job. A proposal with typos or grammatical errors communicates the opposite. A thorough spell-check before you send your proposal is a must.
  • Keep things clear and readable: Clarity is an important aspect that you have to ensure in your business proposal. If you want your proposal to hit home and make an impact on the buyer, you have to write it in an understandable way. To keep things clear and readable, there are a couple of things that you can do. You can, for one, take care to use easy wording and segmented sentences from the get-go. You can also try paraphrasing the hard parts of your proposal once you are done writing it.
  • Let your brand shine. As discussed before, writing a business proposal is all about knowing your ideal buyer and focusing on their pain points. But that doesn’t mean your business proposal template has to be boring. Demonstrate how different you are compared to other companies. You can do this through your brand guidelines , by using more visuals, switching up your proposal design or showing off your personality in your writing . 
  • Create a business proposal PDF. Downloading your business proposal in PDF format allows you to attach other collaterals with your business proposal. These can include a company explainer video or case studies showcasing the work done with past clients. Also, who doesn’t love saving paper?

How long should your business proposal be? 

The length depends on the scope of the work as well as the complexity of the project. Here is a one-page business proposal template:

one page business proposal template

Can your business proposal template really be one page? Yes, as long as you understand who your buyer is and their pain points. You should also have the ability to communicate everything your ideal buyer needs to know about your business in a succinct manner.

Or if you’re feeling adventurous how about just two pages? Often, clients prefer if you go straight to the point and avoid all the fluff.

For example, this green modern marketing proposal template wastes no time in getting down to brass tacks:

Project Business Proposal

Need more inspiration? Check out this blog on the 5 marketing proposal examples that’ll help elevate your business.

There is no one size fits all approach when it comes to deciding how many pages you should include in your business proposal template. And at the end of the day, “the only rules are the ones you set for yourself”.

At the end of the day, writing winning business proposals that sell is all about you understanding your buyer, their potential pain points and positioning yourself as someone who can alleviate those pain points. 

Now that you know how to write compelling business proposals, what are you waiting for?

Take action and start creating your own business proposals to close more deals and grow your business today!

More business communications templates + writing tips you might be interested in…

  • 31 Consulting Proposal Templates to Close Deals
  • How to Write a Project Proposal [10+ Templates]
  • 20+ Professional Business Letterhead Templates + Branding Tips
  • How to Write a White Paper [Tips & Templates]
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  • Building Your Business
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  • Business Plans

How To Write the Funding Request for Your Business Plan

What goes into the funding request, parts of the funding request, important points to remember when writing your request, frequently asked questions (faqs).

MoMo Productions / Getty Images

A business plan contains many sections, and if you plan to seek funding for your business, you will need to include the funding request section. The good news is that this section of your business plan is only needed if you plan to ask for outside business funding. If you're not seeking financial help, you can leave it out of your business plan. There are a variety of  ways to fund your business  without debt or investors. Below, we'll cover how to write the funding request section of your business plan.

Key Takeaways

  • The funding request section of your business plan is required if you plan to seek funding from a lender or investors.
  • You'll want to include information on the business, your current financial situation, how the money will be used, and more.
  • Tailor each funding request to the specific funding source, and make sure you ask for enough money to keep your business going.

The funding request section provides information on your future financial plans, such as when and how much money you might need. You will also include the possible sources you could consider for securing your funds, such as loans or crowdfunding. Later, you can update this section when you need outside funding again for business growth.

An Outline of the Business

Yes, you've done this already in past sections, but you want to give potential lenders and investors a recap of your business. In some cases, you might simply share the funding request section so you need to have your business details such as what you provide, information about your target market, your structure (i.e. LLC), owners' and members' information (for partnerships and corporations), and any successes you've had to date in your business.

Current Financial Situation

Again, you've provided some financial information in the financial data section , but it doesn't hurt to summarize. If you're submitting just the funding request, you'll need this information to help financial sources understand your money situation.

Provide financial details such as income and cash flow statements, and balance sheets in your funding request section.

Offer your projected financial information as well. If you're asking for a loan for which you'll be offering collateral, include information about the asset. If the business had debt, outline your plan for paying it off. Finally, share how you'll pay the loan or what sort of return on investment (ROI) investors can expect by investing in your business.

How Much Money Do You Need Now and in the Future?

Indicate what type of funding you're asking for such as a loan or investment. Outline what you need now and what you might need in the future as far as five years out. 

How Will the Funds Be Used?

Detail how you'll be using the money, whether it's for inventory, paying a debt, buying equipment, hiring help, and more. If you plan to use the money for several things, highlight each and how much money will go to each.

Most financial sources would rather invest in things that grow a thriving business than things that pay for debt or overhead expenses. 

Current and Future Financial Plans

Current and future financial plans include items such as loan repayment schedules or plans to sell the business. If you're getting a loan, outline your plans for repayment (although most lenders will have their own schedules). If you have plans to sell the business, let the lender know that and how it will affect them. Other issues to consider are relocation (if you move) or a buyout. Finally, let investors know how they can exit the deal, such as cashing out (and how long before they can do that).

You're asking for money, so you need to always be professional and know your business inside and out. Here are some other things to keep in mind:

  • Tailor your funding request to each financial source : Lenders and investors need different information, such as loan repayment versus ROI, so create different reports for each. 
  • Keep your funding sources in mind : Each resource will have different questions and concerns. Do a little research so you can address them in your report.
  • Ask for enough to keep your business going : Don't be stingy, as you don't want your business to fail from a lack of money. At the same time, don't be greedy, asking for more than you need. 

How do you request funding for a nonprofit?

Most nonprofits seek funding in the form of grants. Write a grant proposal that includes information on the project or organization, preliminary budget needs, and more. Be sure to format it with a cover letter, proposal summary, the introduction of the organization, problem statement, objectives, methods, evaluation, future funding needs, and the budget.

What are three methods of funding?

Grants and scholarships, equity financing, and debt financing are the main three methods of funding for small businesses . Grants and scholarships do not need to be repaid and are often best for nonprofit organizations. Equity financing is when you receive money in exchange for ownership and profits. Debt financing is when you borrow money that needs to be repaid.

Want to read more content like this?  Sign up  for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!

Small Business Administration. " Fund Your Business ."

Congressional Research Service. " How To Develop and Write a Grant Proposal ."

Library of Congress Research Guides. " Types of Financing ."

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Write your business plan

Business plans help you run your business.

A good business plan guides you through each stage of starting and managing your business. You’ll use your business plan as a roadmap for how to structure, run, and grow your new business. It’s a way to think through the key elements of your business.

Business plans can help you get funding or bring on new business partners. Investors want to feel confident they’ll see a return on their investment. Your business plan is the tool you’ll use to convince people that working with you — or investing in your company — is a smart choice.

Pick a business plan format that works for you

There’s no right or wrong way to write a business plan. What’s important is that your plan meets your needs.

Most business plans fall into one of two common categories: traditional or lean startup.

Traditional business plans are more common, use a standard structure, and encourage you to go into detail in each section. They tend to require more work upfront and can be dozens of pages long.

Lean startup business plans are less common but still use a standard structure. They focus on summarizing only the most important points of the key elements of your plan. They can take as little as one hour to make and are typically only one page.

Traditional business plan

write traditional plan

Lean startup plan

A lean business plan is quicker but high-level

Traditional business plan format

You might prefer a traditional business plan format if you’re very detail-oriented, want a comprehensive plan, or plan to request financing from traditional sources.

When you write your business plan, you don’t have to stick to the exact business plan outline. Instead, use the sections that make the most sense for your business and your needs. Traditional business plans use some combination of these nine sections.

Executive summary

Briefly tell your reader what your company is and why it will be successful. Include your mission statement, your product or service, and basic information about your company’s leadership team, employees, and location. You should also include financial information and high-level growth plans if you plan to ask for financing.

Company description

Use your company description to provide detailed information about your company. Go into detail about the problems your business solves. Be specific, and list out the consumers, organization, or businesses your company plans to serve.

Explain the competitive advantages that will make your business a success. Are there experts on your team? Have you found the perfect location for your store? Your company description is the place to boast about your strengths.

Market analysis

You'll need a good understanding of your industry outlook and target market. Competitive research will show you what other businesses are doing and what their strengths are. In your market research, look for trends and themes. What do successful competitors do? Why does it work? Can you do it better? Now's the time to answer these questions.

Organization and management

Tell your reader how your company will be structured and who will run it.

Describe the  legal structure  of your business. State whether you have or intend to incorporate your business as a C or an S corporation, form a general or limited partnership, or if you're a sole proprietor or limited liability company (LLC).

Use an organizational chart to lay out who's in charge of what in your company. Show how each person's unique experience will contribute to the success of your venture. Consider including resumes and CVs of key members of your team.

Service or product line

Describe what you sell or what service you offer. Explain how it benefits your customers and what the product lifecycle looks like. Share your plans for intellectual property, like copyright or patent filings. If you're doing  research and development  for your service or product, explain it in detail.

Marketing and sales

There's no single way to approach a marketing strategy. Your strategy should evolve and change to fit your unique needs.

Your goal in this section is to describe how you'll attract and retain customers. You'll also describe how a sale will actually happen. You'll refer to this section later when you make financial projections, so make sure to thoroughly describe your complete marketing and sales strategies.

Funding request

If you're asking for funding, this is where you'll outline your funding requirements. Your goal is to clearly explain how much funding you’ll need over the next five years and what you'll use it for.

Specify whether you want debt or equity, the terms you'd like applied, and the length of time your request will cover. Give a detailed description of how you'll use your funds. Specify if you need funds to buy equipment or materials, pay salaries, or cover specific bills until revenue increases. Always include a description of your future strategic financial plans, like paying off debt or selling your business.

Financial projections

Supplement your funding request with financial projections. Your goal is to convince the reader that your business is stable and will be a financial success.

If your business is already established, include income statements, balance sheets, and cash flow statements for the last three to five years. If you have other collateral you could put against a loan, make sure to list it now.

Provide a prospective financial outlook for the next five years. Include forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. For the first year, be even more specific and use quarterly — or even monthly — projections. Make sure to clearly explain your projections, and match them to your funding requests.

This is a great place to use graphs and charts to tell the financial story of your business.  

Use your appendix to provide supporting documents or other materials were specially requested. Common items to include are credit histories, resumes, product pictures, letters of reference, licenses, permits, patents, legal documents, and other contracts.

Example traditional business plans

Before you write your business plan, read the following example business plans written by fictional business owners. Rebecca owns a consulting firm, and Andrew owns a toy company.

Lean startup format

You might prefer a lean startup format if you want to explain or start your business quickly, your business is relatively simple, or you plan to regularly change and refine your business plan.

Lean startup formats are charts that use only a handful of elements to describe your company’s value proposition, infrastructure, customers, and finances. They’re useful for visualizing tradeoffs and fundamental facts about your company.

There are different ways to develop a lean startup template. You can search the web to find free templates to build your business plan. We discuss nine components of a model business plan here:

Key partnerships

Note the other businesses or services you’ll work with to run your business. Think about suppliers, manufacturers, subcontractors, and similar strategic partners.

Key activities

List the ways your business will gain a competitive advantage. Highlight things like selling direct to consumers, or using technology to tap into the sharing economy.

Key resources

List any resource you’ll leverage to create value for your customer. Your most important assets could include staff, capital, or intellectual property. Don’t forget to leverage business resources that might be available to  women ,  veterans ,  Native Americans , and  HUBZone businesses .

Value proposition

Make a clear and compelling statement about the unique value your company brings to the market.

Customer relationships

Describe how customers will interact with your business. Is it automated or personal? In person or online? Think through the customer experience from start to finish.

Customer segments

Be specific when you name your target market. Your business won’t be for everybody, so it’s important to have a clear sense of whom your business will serve.

List the most important ways you’ll talk to your customers. Most businesses use a mix of channels and optimize them over time.

Cost structure

Will your company focus on reducing cost or maximizing value? Define your strategy, then list the most significant costs you’ll face pursuing it.

Revenue streams

Explain how your company will actually make money. Some examples are direct sales, memberships fees, and selling advertising space. If your company has multiple revenue streams, list them all.

Example lean business plan

Before you write your business plan, read this example business plan written by a fictional business owner, Andrew, who owns a toy company.

Need help? Get free business counseling

writing business proposal for funding

How to Create a Startup Funding Proposal: 8 Samples and Templates to Guide You

writing business proposal for funding

Being a founder is difficult. Managing the day-to-day as a founder while trying to secure capital for your business can almost feel impossible. Thankfully, there are different tools and techniques that founders can use to systemize their fundraise to focus on what truly matters, building their business.

One of those tools is a startup funding proposal. In this guide, we’ll break down what a startup funding proposal is and how you can leverage it to build momentum in your fundraise.

What Is a Startup Funding Proposal?

A startup funding proposal is a document that helps startup founders share an overview of their business and make the case for why they should receive funding. A startup funding proposal can be boiled down to help founders layout 3 things:

  • What — what does your startup do
  • How — how does your startup or product help customers accomplish what they are seeking
  • Why — why does your startup need funding and why should an investor fund your business

Related Resource: How to Write a Business Plan For Your Startup

Types of Startup Funding Proposals

Like any business document, there are many ways to approach a startup funding proposal. Ultimately it will come down to pulling the pieces and tactics that work best for your business. Investors are seeing hundreds, if not thousands, of deals a month so it is important to have your assets buttoned up to move quickly and build conviction during a raise. Check out a couple of popular types of funding proposals below:

Traditional Startup Funding Proposal

The most traditional or “standard” standard funding proposal is generally a written and visual document that is created using word processing software and/or design tools.

A traditional proposal is great because it allows you to share context with every aspect of your business. For example, if you include a chart of growth you’ll be able to explicitly write out why that was and what your plan is for future growth.

This document is generally designed to fit your brand and will hit on the key components of your business is structured and predictable way. We hit on what to include in your proposal below.

Startup Funding Proposal Pitch or Presentation

The most common approach we see to a fundraise or proposal is the pitch deck. Pitch decks take the same components as any proposal and fit them into a visual pitch deck that can be easily navigated and understood by a potential investor.

Pitch decks are not required by investors by are generally expected and are a great tool that can help you efficiently close your round. To learn more about building your pitch deck, check out a few of our key resources below:

  • Tips for Creating an Investor Pitch Deck
  • 18 Pitch Deck Examples for Any Startup
  • Our Teaser Pitch Deck Template

1-on-1 Proposals (Elevator Pitch)

A 1 on 1 proposal or an elevator pitch is the quickest version of any proposal. Every founder should have an elevator pitch in their back pocket and is a complementary tool to any of the other funding proposals mentioned here.

As the team at VestBee puts it, “Elevator pitch” or “elevator speech” is a laconic but compelling introduction that can be communicated in the amount of time it takes someone to ride an elevator, usually around 30 seconds. It can serve you for fundraising purposes, personal introduction, or landing a prospective client.”

Email Proposal

Another common way to share a startup funding proposal via email. While the content might be similar to what is seen in a “traditional” funding proposal this allows you to hit investors where they spend their time – their inbox.

The format will follow a traditional proposal with less emphasis on visual aspects and more emphasis on the written content. Check out an example from our Update Template Library below:

Related Resource: How to Write the Perfect Investment Memo

Investor Relationship Hub

Lastly, there is an investor relationship hub or data room that can be used to share your proposal with potential investors. A hub is a great place to curate multiple documents or assets that will be needed during your fundraise. For example, you could share your funding proposal and your financials if they are requested by a potential investor.

Related Resource: What Should be in an Investor Data Room?

What to Include in Your Startup Funding Proposal

How you share your funding proposal might differ but ultimately the components are generally closely related from one proposal to the next. However, be sure that you are building this for your business. There is no prescriptive template that will work for every business.

writing business proposal for funding

Project Summary

First things first, you’ll want to start with a summary of your project or your business. This can be a high-level overview of what your proposal encompasses and will give an investor the context they need for the rest of the proposal. A couple of ideas that are worth hitting on:

  • What your company does and how it’s different from existing solutions to pressing problems.
  • Existing market gaps and how your product covers them.
  • The importance of your product in your industry and how it improves the industry.
  • Existing resources and manpower, investment requirements, and potential limitations.

Current Performance and Financial Report

Of course, investors want to see how your business has been performing. The data and metrics around your business are generally how an investor builds conviction and further interest in your business. We suggest using your best judgment when it comes to the level of metrics or financials that you’d like to share. A couple examples of what you might share:

  • Current assets and liabilities
  • MVP presentation for companies still in the ideation stage
  • Appendix with financial reports

Related Resource: ​​ Building A Startup Financial Model That Works

Existing Investors and Partners

Inevitably investors will want to know who else you have raised capital from and partnered with in the past. Include a brief description of the different investors you have on your cap table and be ready to field additional questions if they have any.

Pro tip: The first place an investor will go to when performing due diligence is your current investors. Make sure you have a strong relationship and good communication with your current investors.

Market Study and Sales Goals

Investors will also care about your customer acquisition efforts and want to make sure you can repeatably find and close new customers. A couple of things that might be important to include in this section:

  • Product pricing and information
  • Revenue targets and goals
  • Customer acquisition model and efforts
  • Sales and marketing related KPIs
  • Stories or testimonials from happy customers

Current Valuation, Investment Requirements, and Expected Returns

This is an opportunity to lay out your cap table and explain your current valuation, investment requirements, and what future valuations could look like. As always, we suggest using your best judgment when it comes to what level of detail you’d like to share about your cap table.

Potential Pitfalls and Solutions

There is an inherent risk when investing in any startup. It is important to make sure potential investors are aware of this. Layout the common pitfalls your startup might face and stop you from achieving your goals. Next, lay out the solutions to these problems and how you plan to tackle them if/when they arise.

8 Startup Funding Proposal Samples and Templates

Below are 8 proposal templates to help you kick off your next fundraise. Note that some of these are technically investor updates and not designed for first-time fundraising. Keep in mind that a startup funding proposal could also be utilized for additional funding after the first round of funding.

1. An Investment Summary Template by Underscore VC

writing business proposal for funding

Underscore VC is a seed-stage venture fund based out of Boston. As the team at Underscore writes :

“As part of this, we strongly recommend you write out a pitch narrative before you start to build a pitch deck. “Writing the prose forces you to fill in the gaps that can remain if you just put bullets on a slide,” says Lily Lyman, Underscore VC Partner. “It becomes less about how you present, and more about what you present.”

This exercise can help you synthesize your thoughts, smooth transitions, and craft a logical, compelling story. It also helps you include all necessary information and think through your answers to tough questions.

Check out the template here .

2. The Visible “Standard” Investor Update Template

Our Standard investor update template is great for communicating with existing investors. If you are regularly sending Updates to their investors they should know when you are beginning to raise capital again and can almost be treated as an investment proposal.

Check out the template for our standard investor update template here .

3. Sharing a Fundraising Pitch via Video

writing business proposal for funding

Videos are a great way to give the right context to the right investors in a concise and quick way. Video is a great supporting tool for any other information or documents you might be sending over. For example, you can include a few charts or metrics and some company information and use the video to further explain the data and growth plans. Check out the template here .

4. Financial Funding Proposal

The team at Revv put together a plug-and-play financial funding proposal. As they wrote, “A funding proposal must provide details of your company’s financials to obtain the right amount of funding. Check out our funding proposal template personalized for your business.” Check out the template here .

5. Investor Proposal Template for SaaS Companies

The team at Revv put together a template to help founders grab the attention of investors. As they wrote, “With so many Investing Agencies, this Investor proposal will surely leave an impact on your company in the long run.” Check out the template here .

6. Startup Funding Proposal Sample

Template.net has created a downloadable funding proposal template that can be edited using any tool. As they wrote, “Get your business idea off the ground by winning investors for your business through this Startup Investment Proposal. Fascinate investors with how you are going to get your business into the spotlight and explain in vivid detail your goals or target for the business.” Check out the template here .

7. Simple Proposal Template

Best Templates has created a generic proposal template that can be molded to fit most use cases. As they wrote, “Use this Simple Proposal Template for any of your proposal needs. This 14-page proposal template is easily editable and fully customizable using any chosen application or program that supports MS Word or Pages file formats.”

8. Sample Investment Proposal for Morgan Stanley

Another example is from the team at Morgan Stanley. The template is commonly used by their team and can be applied to most proposal use cases.

Connect With More Investors and Tell Your Story With Visible

Being able to tie everything together and build a strategy for your fundraise will be an integral part of your fundraising success. Check out how Visible can help you every step of the way below:

Visible Connect — Finding the right investors for your business can be tricky. Using Visible Connect, filter investors by different categories (like stage, check size, geography, focus, and more) to find the right investors for your business. Give it a try here .

Pitch Deck Sharing — Once you’ve built out your target list of investors, you can start sharing your pitch deck with them directly from Visible. You can customize your sharing settings (like email gated, password gated, etc.) and even add your own domain. Give it a try here .

Fundraising CRM — Our Fundraising CRM brings all of your data together. Set up tailored stages , custom fields , take notes, and track activity for different investors to help you build momentum in your raise. We’ll show how each individual investor is engaging with your Updates, Decks, and Dashboards. Give it a try here .

writing business proposal for funding

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How to write a business proposal (The modern way)

Yauhen Zaremba

Yauhen Zaremba Director of Demand Generation at PandaDoc

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Why should you learn how to write a business proposal?

It goes without saying that nothing speaks to a customer’s direct needs like a well-written proposal.

It is the key to unlocking new opportunities, securing lucrative deals, and watching your ideas flourish.

So, just how do you make sure that your proposal is engaging to every potential client?

We analyzed nearly 570,000 proposals sent in 2021 through the PandaDoc platform for insights on what works best and what doesn’t. This article is based on the results of this research.

Key takeaways

  • A business proposal outlines a product, service, or project a company offers potential clients or partners to convince them the business can meet their needs.
  • A well-crafted business proposal is essential as a business deal will often follow if successful. The components of a business proposal can vary based on industry, company size, and many other factors.
  • All business proposals should include three components: information about your company, demonstrated knowledge of the problem, and pricing and methodology.
  • Modern business proposals are sent electronically. Platforms like PandaDoc have tools to help you create a collaborative environment for negotiation, feedback, and electronic signature.
  • 65% of business proposals containing a signature block close within 24 hours. Don’t forget to follow up and ask your potential client if they have any questions.
  • A successful business proposal focuses on the client’s needs.

writing business proposal for funding

→DOWNLOAD NOW: FREE BUSINESS PROPOSAL TEMPLATE

What is a business proposal and why is it important?

In simple terms, a business proposal is a document that outlines a specific product, service, or project that a company offers to potential clients or partners, with the aim of persuading them that the business can meet their needs. A business deal follows if a proposal is successful. As they often present the benefits, features, and terms of a certain idea, business proposals are important in many industries for sales, marketing, project management, and other business endeavors.

Depending on the needs of the client and the industry that you occupy, the content included in a standard proposal will fluctuate.

For example, at PandaDoc, many of our business proposals are customized to fit the unique needs of enterprise-level organizations that are too big for our smaller plans.

If you were to compare our sales team to that of a construction company submitting a proposal to construct a building, the difference in requirements becomes clear. The proposal required for building construction is probably longer and may include far more business proposal topics than our sales representatives would include when closing a deal.

What should be included in a business proposal outline?

When thinking about how to create a business proposal, you should include everything you believe you need in order to sell your product or service.

This includes all of the basic headings and subheadings you’ll see in a traditional proposal, as well as any supplemental documentation to justify your costs and reinforce your proposed approach to solving the client’s problem.

In addition to basic information about your product, when planning how to write a business proposal you should also consider including the following:

  • Contact information
  • Value statements
  • Pricing tables
  • Client testimonials
  • Examples of past work (case studies)
  • Images, graphics, and related multimedia

If you’re sending your proposal electronically, you should also consider including an electronic signature block so that decisionmakers can quickly and easily seal the deal when they’re ready to proceed.

What types of business proposals are there?

All business proposals are essentially the same, but your submittal method may vary depending on the type of business proposal you need to send.

Solicited proposals are an example of a business proposal that a company has asked you to provide for their consideration. The potential customer has reached out to your business and requested a proposal. This usually falls into one of two categories:

Formally solicited proposals are typically competitive and follow a standardized (formal) process. The prospective client sends out an RFP detailing the scope of work and requests that your business formally submit a bid to complete that work.

Informally solicited proposals are typically created based on conversations between a prospective client and a vendor that they want to work with. There might not be any formal documentation, and there may be no competitive process. This work can often lead to a sole-source, non-competitive contract.

Unsolicited proposals are documents that your company sends to a prospective client who hasn’t asked for one. They are not submitted in response to an RFP or an information request. Such proposals are typically created based on a market opportunity — often one that the client is either unaware of or hasn’t yet acted upon.

What is the basic format of a business proposal?

The traditional format of a business proposal is as follows:

  • Cover letter
  • Table of contents
  • Executive summary
  • Proposal & solutions pages
  • Testimonials & social proof
  • Agreement & CTA

Based on our research into over 566,000 proposals created on PandaDoc platform, most business proposals are around nine pages in length.

To get a closer look at how to get started and bring your business proposal ideas to life using these steps, check out each section lower down in this article.

How to make a business proposal in 9 steps

Knowing how to write a business proposal is a bit like building a house. While there are certain elements that are always necessary — like the foundation — a house varies based on location and the architect or homeowner’s preferences.

In the same way, the components of a business proposal can vary based on industry, company size, and many other factors.

Just like writing anything else, a well-written proposal begins by gathering information and assessing the problems that your potential client is trying to solve.

When writing a business proposal, the following items are what readers are looking to glean from your proposal. Think of these as the roof, walls, and foundation of your document:

  • Information about your company. Your background, your qualifications, and why you’re a better fit than the rest of your competitors.
  • Demonstrated knowledge of the problem. Proof that you’ve listened and done your research. You know what the client needs and you have a viable solution.
  • Pricing and methodology. How you plan to solve the client’s problem, information about your proposed solution, and how much it’s going to cost.

In the next section, we’ll take you through how to write a business proposal using our social media proposal template as an example.

If you’re not a social media company, don’t worry.

While the business proposal template we’re using is an example of a simple project proposal, the basic structure applies to nearly every business proposal — no matter how complex they might be.

You can download this business proposal example and business proposal templates on our website.

Here are the main elements of a business proposal.

Before you start making a business proposal, a quick note on length

Based on our analysis of proposals on our platform, we found that the average proposal length is about nine pages.

But, as several of our own account executives and sales team members were quick to point out, longer doesn’t always mean better.

“Short and sweet has a high conversion rate,” said Josh Gillespie, from Upmarket Sales . “Fewer pages and less fluff is better. Ideally, a proposal should be fewer than 10 pages for transactional proposals below $10,000, and never more than 50 pages.”

Artyom Voronetskiy, Account Executive with PandaDoc, agrees:

“Keep it short, on-point, and eye-catching. Do not write more than six to ten pages unless your product is extremely complicated.”

While you should make sure to include all relevant information that prospective clients will need in order to make a decision, take care to avoid overcrowding them with irrelevant details.

1. Create a cover page

This section of a business proposal includes basic information like your company’s name and contact information, your company logo, your client’s name, and contact information, the date, and a title.

writing business proposal for funding

A strong title page makes the project proposal look neat, organized, and well put together.

It’s also the very first thing that your prospective client will see when they open your proposal, and everyone knows how important that first impression can be.

Studies have shown that you have as little as 50 milliseconds to make a good first impression when designing visual content like websites.

The same holds true for the cover page of your business proposal.

Unlike the rest of your document, a cover page is a place where you can place graphics and visual content to set the tone before the reader dives into the meat of your proposal.

But don’t go overboard with complicated graphics and logos on this page. Users love simple and familiar designs , especially at a first glance.

This is also a great way for you to stand out. Based on our data, only about 13% of business proposals we see use cover pages . Take advantage of this missed opportunity and use it to stand out from your competitors.

2. Introduce yourself with a cover letter

You wouldn’t walk up to your potential client and dive into project specifics without introducing yourself, would you?

A cover letter is that introduction.

Include a one-liner about your company, short background information about how your business came to be, and a brief overview of what makes your company better than the rest.

Make it friendly and encourage your reader to reach out with any questions. Close it with a thank you and a signature.

writing business proposal for funding

Cover letters don’t have run on to the point of exhaustion. They can be simple, short, and sweet. In this example, the text is just over 100 words, but you could make it even easier to read by using bullet points.

Check this out:

Dear [Client.FirstName]

Thank you for considering [Sender.Company] for your social media marketing needs.

Enclosed, you’ll find a proposal based on our understanding of your social media expectations. Briefly, we propose:

  • An expanded social media strategy across currently unused platforms and channels
  • A comprehensive distribution strategy designed to generate original and unique content
  • Improved post automation for increased audience engagement during peak times

Our methods and procedures are based on extensive analysis, an intense study of social media trends, and the application of specifics unique to [Client.Company].

We are confident in delivering effective results within your social media channels.

Thanks again for considering us, and please don’t hesitate to get in touch with questions.

My contact information is below.

Your cover letter can take on many forms, and you can use those formats to make your business proposal stand out from the crowd.

In our business proposal example, note that we’ve also used an image to keep things fun and interesting.

This is critical throughout your proposal. In our research, we found that a business proposal with media like photos and videos included is 34% more likely to close.

As you’re making your proposal, don’t be afraid to add graphics and images to keep readers engaged. A winning business proposal is more than just black text on a white page.

statistics on business proposal

3. Table of contents

Unless your business proposal is very brief, include a table of contents that outlines the basic structure of your document.

A table of contents is an important, but often overlooked, part of any longer document because it helps the reader know what they can expect to find in the proposal.

Most word processors generate a table of contents automatically using the headings in your document . As you’re writing a business proposal, take the time to set the formatting for your headings and then simply generate a table of contents from those headings.

A table of contents isn’t always necessary, but it can make a business proposal much easier to parse as your document is passed around to all appropriate parties.

Remember: Proposal documents may not be read chronologically. Different decision-makers will care about different things and will check your business proposal to see how it addresses their unique pain points.

Don’t lose a deal just because stakeholders couldn’t find what they were looking for!

4. Set the scene with an executive summary

Your executive summary sets the scene for the rest of your business proposal by providing a high-level overview that summarizes the contents of future pages.

If you provided a few of these details in your cover letter, this is your opportunity to go into greater detail and summarize your overall strategy.

Using our example of a business proposal, our potential clients are primarily realtors in the greater Chicago area looking to reach new clients through social media marketing, so your executive summary might read like this:

This proposal outlines a coordinated plan crafted with the intent of building John’s Real Estate social media presence, primarily including Facebook, Instagram, YouTube, Vine, and Twitter.

By engaging an audience through social media channels, our team will demonstrate the ability to generate awareness, widen your company’s potential reach within your target market, and contribute to driving more website traffic, which will ultimately result in top-line growth.

We help realtors identify, target, and communicate with their ideal clients through each of the following:

  • Creating Engaging Social Content
  • Posting Company-Related Updates
  • Promotions & Social Campaigns
  • Integrating Social Media Activity into Other Marketing Plans
  • Monitoring

While our competitors work to serve multiple industries and target audiences, we specialize in the real estate industry. Our co-founder Tom Lancaster also has a background in both social media and real estate, giving him a unique perspective on the needs of the market.

Your own executive summary will shift depending on the duties you’re performing for the client, and what kind of industry they’re in.

Your tone might also change. If you’re targeting a young travel startup run by college graduates, you might use a more casual tone peppered with industry jargon and humor.

Jump Social Media Marketing offers full-service social media services for the real estate industry. Our team ensures area realtors are targeting their core market with an authentic message across the best channels possible.

Jump Social Media Marketing will work to identify, target and market to your ideal customer through Facebook, Instagram, YouTube, Vine, and Twitter channels. Our team estimates we will grow your social media followers from your combined 214 followers to over 5,000 in the next six months and generate additional leads for your business.

We know that today’s realtors are also tasked with marketing homes and their own real estate firms. With a background in real estate and social media, Jump Social Media understands the unique needs of your industry.

While writing a business proposal, keep in mind that your executive summary isn’t designed to explain every detail or sell your entire RFP response by itself!

Don’t get lost describing deliverable logistics or strategic plans. Focus on the client’s needs and the outcomes they specifically wanted to address in their request for proposal.

Let your executive summary present a high-level overview and leave the other pages of the document to explain the details. This will prevent your summary from getting overcrowded or bogged down with specifics best handled elsewhere.

5. Proposal and solutions pages

The proposal section is a general overview of the custom-made solution your company has devised for your potential client.

This section gets into the specifics.

Anticipate their questions, and take them through the process so they know what they’re signing up for when they hire you.

Describe exactly what deliverables they can expect and when they can expect them.

A timetable that pairs deliverables with their expected date can make your document more visually appealing, and your information more digestible.

writing business proposal for funding

You might also break down your main objectives even further by describing how you plan to execute a given strategy.

In our example of a business proposal, we touched on six key goals during our executive summary. Let’s expand on those here.

1. Creating engaging social content

Beginning with quick and thorough planning/preparation, our team will plan out a dynamic, ongoing social content calendar to guide you to your goals.

We will grow an increasing social audience and follower base using each of the following techniques:

  • Hashtag campaigns
  • Strong use of keywords
  • Sharing/retweeting relevant news
  • “Liking” posts
  • Staying updated within the industry
  • Contributing our own unique content to broaden reach.

2. Posting company related updates

Our plan is to engage your social media audience by sharing company news, press releases, events, employee spotlights, and more.

We will also pay attention to industry trends, and share them. This will help to gain exposure to your target market.

3. Promotions and social campaigns

We will utilize social channels to connect with your follower base and engage them with promotions to get them excited about both current events and the brand itself.

These campaigns may be as short as a day or run up to six months. We’ll analyze the results from each campaign, and then we will provide a report of its success.

Results of campaigns can be compared so the most effective promotions, offers, or contests can be replicated.

4. Integrating social media activity into other marketing plans

With clear communication and monthly brainstorm meetings, we’ll be able to consolidate the marketing initiatives to fit your goals and promotional material.

Campaigns via social media are more important than just sharing about giveaways, sales, contests, and/or promotions. We will agree on a schedule for a series of posts to keep up the exciting momentum for all prospective customers.

5. Monitoring

It is important to regularly maintain marketing activity for maximum growth.

We will continually monitor each channel and will respond to any questions, comments, and posts within a two-hour time period. Two hours will allow us to confirm that accurate information is relayed back to the person asking.

6. Analytics

We will provide you with each of the following:

  • Daily and weekly analytics. Follower growth, reach, demographics, comments, “likes”, shares, retweets, and additional metrics as provided by each platform and our own internal tracking data.
  • Reporting. Summarizing various results and activities over each quarter.

We will also set up a monthly meeting to go over the results and then tweak our approach accordingly.

Your own content may look different than this depending on your business proposal writing skills and services, but you can still use the example as a framework. Add in more details as needed.

For example, a cybersecurity company would need to include information on penetration testing and how often it would be done to look for possible intrusions and hacks.

Breaking up this section

While writing business proposal content, keep in mind that this section is both the most important and the most flexible section of all.

Your entire proposal doesn’t need to be bundled into a single, long section. It can easily be broken down into smaller sections such as:

  • Strategic Assessment
  • Implementation
  • Goals & Outlook

There are other combinations you can try, depending on your business proposal and how your solution should be explained.

If you’re offering a complex solution to a client problem, breaking your proposal into bite-sized chunks is a great way to ensure that readers understand your solution.

The importance of good data

Leveraging good data is critical when creating an effective business proposal.

Use details surrounding impact and ROI around your products and services to prove your worth and add value to your proposal.

Consider these two phrases:

“Our customers love us!”

“To date, our products and methodologies have helped more than 700 companies increase their sales by 35%!”

Which sounds better? Which is more compelling? Numbers and figures catch the eye and help readers build trust. By demonstrating a proven record of success, with numbers and data, you’re adding tangible details that help to justify your costs.

This is especially useful when competing with other solicited proposals, especially if you can include these data points as visual representations (charts, graphs, etc.) of your success within your proposal document.

This is the section where clarity and specifics are key — and nearly every member of our sales team agreed.

Create a pricing table that clearly identifies each product or service, and pair it with the most accurate pricing information you can provide.

Jump Social Media Marketing operates on a monthly billing cycle. Here’s a layout of the pricing and services for John’s Real Estate.

writing business proposal for funding

While building the proposal, all you’d need to do is set the price for the item and the quantity of distribution.

If you were sending an hourly contract, the quantity becomes the estimated number of hours invested at a predetermined rate.

For recurring payment schedules, you’ll need to structure the document in a way that reflects your monthly workflow.

Transparency is critical in this section. Potential customers want to know how you’re charging them, what they’re being charged for, and over what period they should expect to pay.

Be sure to include all details in a clear and accurate way.

7. About us

While you already said hello with the cover letter, this section is where you get to explain what makes your company unique.

If you’re a small business or a new company, get personal and give your potential client a chance to get to know you and your team members. Include brief bios and photos of the people they’ll be working with.

If your company has a unique backstory, a mission, or a cause that your company stands for, share that with readers. For example:

Too often in social media , good things come at a price. At Jump, paying for followers or favorable reviews of products is tantamount to criminal activity.

Authenticity is important in today’s online world, and Jump Social Media Marketing makes this our No. 1 priority in your social media space.

The information included on this page doesn’t have to be a stodgy company boilerplate or a cleverly designed sales pitch.

As the old saying goes: People buy from people — so don’t be afraid to let your team’s personality shine through.

8. Testimonials and social proof

No sales proposal is complete without information about your past successes, awards, and jobs well done.

Often, this comes in the form of social proof, such as client testimonials and short case studies.

Why do you need this? Because social proof matters!

According to data, over half of customers are more likely to trust earned media, like recommendations from friends and family, above all other forms of advertising.

By including recommendations from satisfied customers and industry awards that prove your expertise, you can earn additional trust from prospective clients.

Here’s a good example of how Jump Social Media Marketing might leverage the accolades they’ve received:

Jump Social Media Marketing has received major public recognition for our work.

We’ve been named as Chicago’s Best Social Media Agency for Small Businesses by the Chicago Tribune for the past three years and have been recognized as a recommended partner by the National Association of Realtors .

We also grew the Chicago Real Estate Solutions Facebook page from 0 to 5,000 in six months , secured 250 new leads in that time frame , with 25% converting to sales .

You can also provide testimonials from past clients who can speak to your approach and how it worked for them, like so:

writing business proposal for funding

Lively and humorous testimonials like these can add additional personality to your company while building trust and rapport with potential clients.

However, keep your industry in mind when compiling testimonials and do your best to find user feedback that fits the mood.

If your industry has serious clients, a humorous approach may not be appropriate. If you’re working with a 3D manufacturing company with B2B clients, the messaging and tone they take with their own clients — and what they expect from the businesses they work with — may follow different expectations.

Be sure to plan accordingly.

9. Agreement and CTA

Depending on your business proposal, you may include an agreement, a call to action, and terms and conditions at the end of your document.

Your signature below indicates acceptance of this social media marketing proposal and entrance into a contractual agreement with Jump Social Media Marketing beginning on the signature date below:

writing business proposal for funding

Depending on your goals and your sales process, you need to be very careful in this section. In many jurisdictions, proposals are considered legally binding contracts if they meet the criteria for a contract.

By adding legal language and/or an electronic signature request at the bottom of your document, you might be entering into a contract earlier than expected.

This may not be ideal if your proposal is only intended to provide a rough estimate of costs or bring the client into further negotiations.

If you don’t intend to create a legally binding contract from your proposal, be sure to note that in your document and prompt the reader to contact you to move the process forward.

On the other hand, well-built proposals can double as complete contracts with all the terms and conditions necessary to start work immediately.

If you’re confident in the scope of work and you’re ready to take on the additional work, let the client know by promoting them for a signature.

How does a business proposal look?

First things first: We’re well past the turn of the century. Nobody likes getting thick envelopes in the mail.

Modern business proposals are sent electronically, and this is more convenient for both you and your potential customers.

While it’s possible to email a proposal created with a word processor like Microsoft Word, platforms like PandaDoc are a better fit. Our tools help you create a collaborative environment for negotiation, feedback, and electronic signature .

Regardless of how you choose to send a business proposal, be sure to pay close attention to the look and feel of your document. Especially because your proposal may be your first impression with several key stakeholders, it’s essential that you follow expected formats and make a good impression.

If you search for business proposal examples online or take a look at our template library , you’ll find that most proposals rely on the structure described above to emphasize their value propositions.

Taking care to create a visually appealing business proposal will help you communicate your ideas more easily. It’s also something that your competitors are doing and something that many clients are beginning to expect.

In our research, we found that roughly 80% of proposals included an image and 20% included a video. We also saw higher close rates when these multimedia tools were used compared to when they weren’t.

Exactly how a business proposal is designed still has some flexibility, depending on your brand and what you’re trying to achieve, but keep in mind that it can have a big impact on success.

Business proposals with pages of blocky text are much harder to navigate than proposals with charts, graphs, images, and bullet points.

It’s important to spend time beautifying your proposal,” points out Jared from PandaDoc Sales .

“A proposal that are can draw the eye directly to relevant content and keep the reader engaged is a powerful tool when trying to close a deal.”

Rather than writing a 1000-word About Us section, consider including team member headshots and a brief bio.

Rather than adding highly technical language about operational processes and leaving stakeholders to figure it out, provide visual aids that summarize the information in a clear and easy fashion.

Clearly defining your milestones isn’t the only reason to pay careful attention to how your business proposal is written.

While there can be legal ramifications to poorly written proposal content, perhaps the most important consideration is the impression that your proposal leaves behind.

Your proposal introduces your client to the quality of work they can expect from your business. If it’s full of typos, spelling, and grammatical errors, or just seems sloppy, you’re unlikely to close the deal.

Read and re-read. Be sure to proofread every passage for errors before you send it to prospective clients or save it as a template.

You can also offset some of this tedium, especially on smaller deals, by focusing on creating a concise offering rather than a long-winded document.

A word about costs

When you’re creating proposals, it’s easy for costs to add up. Costs for customized professional business proposals can take hours of research, consultation, and preparation — all with no guarantee of success.

That’s why savvy companies do everything they can to lower the cost of proposal preparation. Typically this is done by generating a template for business proposals — an outline or skeleton that someone can fill out quickly to save time and expedites internal company processes.

It’s an effective way to keep overhead low. Based on our research, an average of 20 documents are generated from each template you create .

That’s a huge time saver for any business.

If these aren’t assets that you have on your staff, consider hiring that skillset onto your team or hiring a freelancer to assist with proofreading and correction.

While many clients will overlook a stray typo or a misplaced comma, too many errors will land your proposal in the discard pile.

When you’re creating business proposals, it’s easy for costs to add up. Costs for customized professional business proposals can take hours of research, consultation, and preparation — all with no guarantee of success.

After you hit ‘Send’ on your business proposal

Once you’ve sent your proposal, your next step will depend on the process. Based on our information, about 65% of business proposals containing a signature block close within 24 hours.

business proposal

However, your mileage may vary. RFPs tend to be competitive processes, so you may have to wait until the submission window closes before you hear a response.

Don’t forget to follow up and ask your potential client if they have any questions. Based on the business proposals we looked at, you are 30% more likely to close a deal if you send a series of reminders to keep your proposal top of mind.

how to close deals by 30%

PandaDoc and other proposal software tools can help you monitor your proposal using document analytics so that you know exactly when to reach out.

These tools let you know when your potential client viewed your proposal, how many times they opened it, and which sections they spent the most time on.

With these insights, you can anticipate their questions or objections and have your responses ready to go.

7 ideas to make your business proposal stand out

Just because you may have a perfect business proposal all ready to go, it doesn’t mean it will stand out from the crowd. Many startups fail due to competitors, so a unique proposal idea can make your readers sit up and take notice. Pizazz isn’t what matters here, rather any idea that adds value to your proposal and communicates quality. Here are a few ideas to put the spotlight on your business proposal:

  • Personalize your business proposal for each client: Ensure that your business proposal meets the exact challenges and interests of each recipient, as this will show you understand their specific needs.
  • Create a business proposal website: A professional business proposal website will always wow your potential clients. Not only will it showcase your company and highlight your industry expertise, but it will give your recipient simple access to relevant information and make your proposal interactive. This is a feature that will leave a lasting impression.
  • Add a VR or AR demo: If your business proposal includes a virtual reality (VR) or augmented reality (AR) demo, it will make for an immersive proposal experience as it adds interactivity to your proposal. Again, this idea offers a memorable experience with lasting impact.
  • Add sound to your proposal: A really clever way to make your message stay in the memory of your reader is to add music or sound to a business proposal. This could be a song or jingle, sound effects, or royalty-free music.
  • Try a direct mail element: Make your business proposal stand out among a sea of digital communication by going back to traditional methods and adding a personalized direct mail element. A handwritten note or small gift will make your business proposal memorable, highlighting your attention to detail and dedication to personalized communication.
  • Ask an influencer to present or vouch for your proposal: If you are already working with an influencer, their input can boost your proposal credibility. Show that respected figures in the industry support you, and this will add authority and appeal to your business proposal, upping your chances of success.
  • Hide a few Easter Eggs: A hidden message, cute animation, or a secret section are all little surprises add a touch of fun and intrigue to your busniess proposal. Easter eggs really encourage exploration and will encourage your readers to spend more time on your proposal. It won’t be one they’ll forget in a hurry!

Free business proposal templates and winning examples can make writing simple

Need to know how to write a business proposal but don’t know where to begin? PandaDoc can help with some great examples of business proposals.

In the proposals that we looked at, those created using our business proposal templates regularly created high-performing results for customers with minimal editing time.

Take a look at some of the metrics around the top professional business proposal templates currently in our template library .

Once you’ve fitted an existing business proposal template to your personal needs, you can save it as a fresh template in your content library for even faster reuse.

In doing so, you can slim the entire business proposal design process down from hours to minutes or spend more time refining your proposal for maximum appeal.

To see the true power of the PandaDoc editor, be sure to check out our community gallery for expertly designed templates from real PandaDoc customers.

If you’re a PandaDoc user, you can even swipe these business proposals and load them directly into your PandaDoc editor with a single click.

It’s just that easy.

writing business proposal for funding

Social Media Marketing Proposal Template

Used 13721 times

Legally reviewed by Yauhen Zaremba

A successful business proposal focuses on the client’s needs

Ultimately, your proposal should be focused on your client’s needs and how your business plans to fix them.

No matter how you choose to write a business proposal, never lose sight of that goal.

The RFP you receive will have most of the information you need to build a great proposal.

Take things step-by-step, and use the opportunity to show your client that your business is the right fit for the job.

But, why not sign up for a free 14-day trial with PandaDoc today?

PandDoc is not a law firm, or a substitute for an attorney or law firm. This page is not intended to and does not provide legal advice. Should you have legal questions on the validity of e-signatures or digital signatures and the enforceability thereof, please consult with an attorney or law firm. Use of PandaDocs services are governed by our Terms of Use and Privacy Policy.

Originally was published in October 2016 and has been updated for comprehensiveness in January 2024

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A Guide to Writing a Small Business Grant Proposal

A piece of paper with a lit lightbulb drawn on.

Last Updated on 

January 19, 2023

While there may be more opportunities for non-profit organizations when it comes to grant funding, grants for small business owners are not rare.

In fact, small businesses received more than $334 billion in total award obligations through the SBA in 2021 , spread across more than 9 million transactions and 7 million new awards. Over $254 million was spent through grants alone. The amount spent on grant awards has risen in 2022 as well, increasing to more than $455 million.

Federal contracts and financial assistance are out there. And that is without mentioning small business research grants and other types of non-governmental contracts and awards.

Grants for small businesses can often be a better option than a loan, as grants do not require repayment of any kind. The caveat? Your goals need to align with the goals of the organization or awarding agency you’re seeking a grant from.

Many grants are dedicated to supporting non-profit work or specific research initiatives. However, small business grants are dedicated to helping owners and founders achieve specific business goals or projects that align with a funding agency’s mission or a particular initiative.

This includes research grants designed to support businesses working on research and development that has a high potential for commercialization. As a biotech founder, CEO, or employee, this is most likely the exact type of grant you’re looking for.

Like non-profit grants, small business grants are offered through both government and non-government agencies. Furthermore, unlike loans, grants do not need to be paid back.

In this article, we’ll review small business grants, grant proposals, and how to write small business grant proposals. We’ll also review some best practices for grant writing, the differences between a “good” and “bad” proposal, the various types of grants available, and additional resources to help you write a small business grant.

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What Is a Small Business Grant Proposal?

A small business grant proposal, like a typical grant proposal, is a clear and concise presentation of what you’re proposing to do before it actually happens. It usually takes the form of a written document that you either prepare online or physically.

You send your proposal to a particular funding agency that’s providing a grant opportunity you’re interested in.

The presentation should thoroughly explain the reasons for your proposal and why you’re applying for grant funding from a specific funder. Explain the who, what, when, where, how, and why of your proposed project or program.

When you clearly and concisely explain your proposal in an organized and well-thought manner, you will have a better chance at receiving approval from the grant reviewers.

What Are the Steps to Developing a Grant Proposal?

There are several steps you should take to develop an effective proposal. First, begin with an idea, followed by planning, strategy, and success.

What is the idea you’re hoping to make a reality? It’s ideally something you’re already working on and are seeking additional funding to help continue developing, but it can also be something you’re planning on starting and need funding to begin that journey.

Once you know what you’re trying to accomplish, you need to start planning. Flesh out the details of what your program, project, or initiative is all about that you’re seeking funding for.

After planning, you’ll need to start forming a strategy. This involves detailing your approach and methodology regarding bringing your program or project to life. How will you effectively put your plan into action?

With a strategy in place for success, you’ll be able to show the funder how you will accomplish what you’re setting out to do and how you will evaluate your accomplishments, giving the funder confidence in you by showing them you’ve got a game plan.

From here, you will want to take some additional steps before you start researching grant and developing your proposal:

  • Make sure your idea can be funded, as some things are not eligible for grant funding
  • Read the grant application guidelines carefully, they will help you determine if you actually qualify or not
  • Make note of the eligibility requirements and what the funder is requesting; you might not be eligible or have everything they’re asking for

Lastly, ask yourself:

  • Is my proposal doable?
  • Does it have a focused goal?
  • Can you provide everything a funder is asking for in the application? (If you can’t, you’re putting yourself in a position to become disqualified, wasting time and effort)
  • Is it in alignment with your own goals and, most importantly, with the goals of the potential funding agency?
  • Is there a beginning, middle, and end? (Granting agencies do not fund projects forever; in fact, most grants only last a year or two, depending on who’s providing the grant)
  • Can you meet the deadline? (Grants have deadlines; if you start too late, you’ll have to rush and that can lead to mistakes and disqualification)

Grant Proposal Review & Common Elements

Grant proposal guidelines and instructions vary from funder to funder. This means the required information and formatting may be different from proposal to proposal. To better understand the common elements, it can help to review grant proposal guidelines and instructions to get a sense of what will be asked of you.

In the guidelines that you can typically find on the funding agency’s website, you’ll see exactly what you need to do in order to apply for a grant. While following these guidelines and instructions does not guarantee you’ll get funding, it does increase the likelihood of getting approved.

If the guidelines provide a list of do’s and don’ts, take note. Funding agencies will have various requests for you that include things they’d like to see in your application and things they wouldn’t like to see.

There may also be a checklist for completed requirements. If that’s the case, you can use the checklist to track your progress and make sure you don’t miss anything. Budget your time to make sure you’ve got enough time to get everything together that is required of you before the deadline. You don’t want to rush. It can lead to mistakes, which will automatically disqualify you in most cases.

Similarly, if you don’t complete and submit the proposal by the listed due date, your application will automatically be denied. We can’t stress this enough—give yourself enough time!

You’ll also see in the guidelines that a grant proposal must include information submitted in a specific order. Make sure to do this, and follow the instructions for each section exactly. Funders will most likely reject your application if your proposal is not in the correct order.

There are additional requirements for proposals that can include submitting the proposal to a specific address or department, rules about how you can submit the application, and reporting leadership or major staffing changes after you’ve submitted your proposal.

Do your diligence and read the guidelines and instructions carefully. Grant proposal reviews can be the best way to learn what to expect. That said, there are some elements, or sections of information, seen across many different types of grant proposals. These can include:

  • A cover sheet or letter of intent that allows the agency to estimate how many independent reviewers will be needed; it also helps the agency avoid potential conflicts of interest in the review
  • A short executive summary, or “abstract” in the non-profit world, summarizing your grant proposal
  • A table of contents; it should help the reviewer find what they need quickly and easily should they want to flip to a specific section
  • A needs statement and problem statement describing the purpose of your project, the need you’re addressing, or problem you’re solving, and why the project is important
  • A project description or narrative explaining the project you want to fund in greater detail; you can separate different ideas into sections to better explain each aspect of your project and review the expected outcomes; this description can sometimes be included in the executive summary
  • A list of your goals; ideally you will pick SMART (Specific, Measurable, Attainable, Realistic, Timeline) goals
  • A description of the methods you will use, in addition to project management plans and timeline, illustrating how you will achieve your goals and objectives
  • A staffing list showing how you will staff your project
  • A detailed budget explaining what the money will be used for
  • A cover letter providing an introduction of yourself or your business as the grant seeker, in addition to a description of your ethos, professionalism, and proposed project or business goal

You will most likely need to include information about yourself and your business as well, including:

  • Your business’s mission and history
  • Your business’s financial health and stability
  • Any additional support documents, usually in the form of appendices; additional records, endorsements, tax status information, personnel bios, letters of support, etc.

Including this information is not only important, it’s necessary. Without it, your application will be disqualified.

Remember, this isn’t the exact order for every grant proposal. Proposals vary from funder to funder, and each may ask for a different order that the information above should be included. It’s vital that you follow the grant’s instructions exactly and include everything that’s asked for.

Before You Start, Research

Before you start writing your grant proposal, you’ll want to research the grant or grants you are applying for and the organization to whom you are submitting your proposal. This is part of the pre-award phase, covered in more detail on grants.gov .

Also consider who your audience is, what the grant’s expectations are, and how you will achieve your goals if you secure funding. To properly prepare for your application, it’s important that you:

  • Follow the steps for developing a grant proposal listed above; this means clearly defining what you want to do, why you want to do it, how you’ll do it, when you’ll do it, and who you’ll do it for—remember to be SMART when defining your goals (Specific, Measurable, Achievable, Relevant, and Time-bound.)
  • Identify an awarding agency or organization that funds projects or goals like the one you have in mind and figure out if their goals align with your own.
  • Identify a grant funding opportunity before you begin the application process; it’s important that you find a grant that matches your proposal and goals and a funder whose mission aligns with yours.
  • Review the agency’s grant proposal guidelines, eligibility requirements, and instructions document to determine if you are eligible and have everything on hand that they’ll require.
  • Register to apply for grants through websites like grants.gov and sbir.gov ; depending on the agency, you will have to go through several steps to register and may be required to complete different types of registration to receive all the necessary identification.
  • Review any grant proposal samples you might have or can find in order to get a better understanding of what a good or bad proposal looks like.

Research will help you identify a grant you can actually apply for, an agency that will want to work with you, and a better feel of what the funder’s interests actually are. This will vary from funder to funder, but doing your research will help greatly.

How to Write a Small Business Grant Proposal

The grant writing process can be quite arduous. But, there are a variety of ways to approach it. The best way you can handle the writing process, in our experience, is to begin with great research, followed by developing an effective proposal that carefully follows all the instructions and guidelines a funding agency provides, including everything they ask for. It’s all about giving the information that is required, not pushing the information that you want.

After taking all the necessary steps, such as registering your business in the proper places, identifying a grant funding opportunity, and determining your eligibility, you’ll begin preparing your written application and developing your proposal.

Below we break down the basic approach to writing a small business grant proposal based on our own experience as a small business.

Keep in mind that this is a guide for you to learn how to write a proposal. We outline a general approach of how to write a small business grant proposal. It will help you be well-prepared to begin the writing process, but does not necessarily follow exactly how a funder will want you to put together your proposal. Remember to follow instructions carefully!

Be meticulous in your following of the proposal’s instructions. This means including all the necessary documentation, completing the required forms, and staying on top of deadlines.

Write Your Cover Letter

You can start by writing your cover letter. However, it may help to leave this till the end of your application, as you might have a clearer idea of the main parts of your proposal and their value.

That said, if you do start with your cover letter, make sure to keep it short but impactful—you need to capture the attention of the agency’s reviewers.

Say what you need without using too much fluff, being as direct as possible without missing the important parts. And make sure to connect your project and goals with the funding agency’s own. If you can make a connection between their mission, funds, and your proposed project, you will have a better chance of getting approval.

Write Your Executive Summary

Next, write your executive summary. This serves as an overview of why your organization wants the grant, what your funding needs are, and how you plan to follow through with the project. Be as engaging as possible, using short and clear sentences that concisely illustrate the main aspects of your proposal.

Introduce Your Business

You can introduce your business next. Share as much relevant information as you can about your infrastructure, history, mission, experience, etc.

Here you include a biography of key staff, your business track record (success stories), company goals, and philosophy; essentially, highlight your expertise.

Client recommendations, letters of thanks, feedback from customers and the general public are must-have things to write in a grant proposal.

Also include all valid industry certifications (ISO or Quality Certifications), licenses, and business and indemnity insurance details.

You need to show that your company or organization has the capacity and the ability to meet all deliverables from both an execution perspective but also meet all legal, safety, and quality obligations.

Write Your Needs & Problem Statements

Now, write your needs and problem statement. It should illustrate the problem you will solve and how the grant funds will help you do it. It will be important to convey the scope of the problem or need of addressing and what sets you apart from others trying to solve the same problem or need. It can be helpful to include any research you’ve done on this matter as well.

Don’t rush this section of the proposal. It’s a critical element. Craft your argument patiently, and make sure to use any supporting data and research you have to back up your argument and plan.

It’s important to keep the language simple as well, as there is a big chance the reviewer doesn’t have the same technical expertise you do. Keep jargon to a minimum, or fully explain what each term means, in order to keep things clear.

Write Your Project Description

Next, write your project description. Clearly explain your goals for the project, how you plan to achieve those goals, and how the grant funding will help. Stick to SMART objectives, ones that can be easily tracked and measured. Doing so will help you demonstrate your eventual successes to the grantor, an important part of the grant process later on.

When you explain how you plan to achieve your goals, it can help to include specific information about your project’s timeline, budget, staffing, the resources and community you’ll leverage, and why you’re in a strong position to tackle a problem or need. It can also help to explain how you will track your project and goals, evaluating your overall success.

Ideally, your project description provides a clear picture of your goals, how you will achieve those goals, what you plan to do with the funds, and how you will manage and measure your project’s progress. If you tie your goals into the funding agency’s mission or goal, you will build an even stronger case for your business.

Write a Detailed Budget

After that section, you will need to write about your budget. It’s critical that you provide a detailed project budget that outlines how you will use the funding and what your operational costs will be. This will also serve to explain your expenses and justify the amount of money you’re seeking.

Provide any financial documents you may have to back up your budget here, and try to stay within the funding limits the funding agency is offering. It’s important to neither overquote nor underquote yourself, because while you might secure the grant by underquoting, you may not walk away with enough funding for your project. Overquote and you may see your application rejected.

When we say provide a detailed budget, we mean it. Include information about all of the costs, whether they’re direct or indirect. This can include everything from personnel, materials and supplies, and equipment to travel costs, advertising, utilities, insurance, and more.

Remember to check your numbers. You want to ensure they’re accurate. Otherwise, your application might not make it through the review process. Simple errors like an incorrect decimal point or forgotten number can significantly distort your budget. If you need to, leverage a team member who is excellent with numbers.

Perform a Final Review & Have Your Team Help

After you’ve finished writing, attached all the necessary documentation, and completed the required forms, you need to review your application! Make sure you have:

  • Followed all the instructions
  • Stuck within the guidelines
  • Included all the necessary documentation
  • Completed the required forms
  • Formatted your proposal correctly
  • Eliminated simple spelling or math errors

It can help to have others review your application as well. They can bring a different perspective and fresh eyes to the proposal and catch things you may have missed. In fact, it can help to have as many people you trust review the proposal. When you’re confident there are no errors, it’s time to submit your proposal.

Properly Submit & Track Your Application

Depending on the funding agency you’re submitting your application to, there will be different instructions for submitting. Figuring out what these submission processes look like can sound a little daunting, but each group will provide clear instructions somewhere on their website on how to properly submit your proposal.

It will be important that, once you submit the application, you make sure to track it to address any errors that are flagged and view the assembled application to ensure it is 100% accurate.

Once you’ve submitted, you can check online that your application has all the correct information and hasn’t been flagged for errors. After making sure your proposal wasn’t flagged, all you can do is wait for a response from the funding agency.

If the review process goes well, you may be asked to provide additional information. The way this request is handled can vary from department to department. For example, the NIH uses the Just-in-Time (JIT) process, located in its eRA Commons .

If you’re selected to receive funding, you’ll be sent a notice that you have been selected for the award! In the case of the NIH and the SBIR/STTR programs, you’ll receive a Notice of Award (NoA) , the official grant award document the department uses to notify an awardee the grant has been made. From there, you will be able to access more information on how to manage the award, and what the post-award process and requirements entail.

In addition, you will gain access to a wide number of agency resources and programs, helping you maximize the benefits of your grant funding.

While the approval rating for grants has increased through 2022, grant funding is highly competitive, and there is a big chance your proposal will be rejected. Don’t give up! It’s important that you keep trying. If the review does not go well, you will be able to reach out to the program official to discuss next steps. You can review feedback, address the issues, and resubmit your application .

12 Tips for Writing A Successful Business Grant Proposal

Below are steps to writing award-winning grants that you can use to improve your proposal, potentially increasing your chances at writing a small business grant application that will get approved.

Develop a Game Plan

Create a game plan for where you’re headed. Don’t dive into effort without knowing exactly what you’re doing. You’re going to want some mode of operation to complete the grant writing process, and a game plan can help you do that. In fact, you’re already using a game plan right now: learning how to write grant proposals in an effective way.

Don’t Rush & Pay Attention to the Agency’s Goals

First and foremost, don’t rush your writing. Grant applications can be long and grueling, and it can be easy to make mistakes if you try to rush through the grant proposal writing process.

Hopefully you start early enough so that you can take your time writing before the deadline gets closer. Making mistakes can make it take even longer to complete your proposal, and will lead to a rejection.

Taking your time will undoubtedly make it easier to craft your story and proposal, leading to a more developed proposal narrative and project description before you start writing grant applications. Having a strong story and a detailed proposal will help you stand apart from other grant applicants, clearly explaining the what, why, and how of your proposal.

Use Rich Media When You Can

Use pictures, charts, and graphics if permitted. Using rich media can help your proposal come to life and convey important points in different ways. While this may be harder to do with certain applications, look for instances where you can add visuals.

Research Prior Winners

If there are previous grant winners for the specific grant you’re applying for, review their business and the project. There may be a connection or similarity between your business and a prior winner that you can integrate into your proposal.

Seeing what kinds of businesses are awarded a certain grant can help you narrow down if your business is a good fit, what you could do to increase your chances, and ultimately help you save time by not applying to a grant you’re unlikely to land.

Search Through Local Grants First

It might be easier to secure a local grant than a federal grant offered nationwide. While federal grants can be more appealing—the award is typically larger—local grants are sometimes less competitive. Start your search by looking at locally offered grants, and expand your search as you rule out grants you might be able to apply for through your city, the state and regional levels.

Apply for Grants of All Sizes

In addition to searching for local grants first, you should also pay attention to funding opportunities of all sizes. Smaller grants can sometimes be easier to secure, and doing so can even make your business more appealing to agencies offering larger grant funds. Showing the support you’ve already received can make you more attractive to grantors.

Use a Team Approach

It’s often helpful and more effective to assemble a team to write your proposal. Ideally you can include people who have review proposals before or someone who has experience as an editor. Your choices do not have to be limited to your business, you can find people outside your organization to help with the process.

Approach The Writing Process Like a Reviewer

It can help to think about your grant proposal like a peer reviewer, rather than a business owner. The funding agencies you’ll send your applications to always have long-term organizational goals and objectives that you will want to appeal to. If you can set your proposal apart from others by showing how your use of the grant funds will directly align with the funding agency’s mission, you may stand a better chance at securing approval.

Provide Up-To-Date Information & Complete All Requests

Provide relevant up-to-date information. If you provide out-of-date information, you will come across as dated. This relates to completing all requests. Remember to give the funder 100% of what they ask for. This means following instructions exactly. You want to provide the information they need, not push your information on them.

Include an Evaluation

Include an evaluation that clarifies how you will evaluate your project or program’s performance. Determine a way to evaluate the project you’ve just received funds before. Will it be internal or external? Funding agencies typically look at evaluations very favorably.

Try, Try, Try Again

Even people who have a lot of experience writing grant proposals face rejection. In fact, most applicants face rejection more than approval. That said, the grant writing process can be highly productive. You get to dial in your objectives, methodology, and more, clearly defining what problem you’re addressing, how you will achieve your objectives, and more.

Don’t let rejection stop you. Try again and incorporate whatever feedback you can get a hold of into your next proposal.

Think About Hiring a Grant Writer

It’s no secret that grant writing can be difficult. If it’s proving too difficult or time-consuming, consider hiring a grant writer to help you complete and submit your proposal. Although these professionals can be expensive to hire, it may be worth the money in the long term.

The writer will likely know the type of language to use to make your application stand out in addition to the correct formatting. Their expertise in grant writing can make the process much quicker as well.

What Makes a Good Proposal?

A good small business grant proposal has a number of identifiable characteristics. None of which are very surprising:

  • Easy to understand; it doesn’t need to be sophisticated, it needs to be understandable
  • Proposes something that is doable within a certain timeframe
  • Clear and concise
  • Details what will be done, when it will be done, and how it will be done
  • Tells a compelling and exciting story; what led up to your business’s decision to go in this direction, and what benefits people will experience
  • Has excellent flow and continuity
  • Visually appealing
  • Engages the reader and provides social proof

If your proposal has all of these characteristics, it doesn’t guarantee you will get approved. But, it does increase the likelihood you will secure the funding you need. Having a well-written and visually appealing proposal, in addition to compelling research and data, is essential.

What Makes a Bad Proposal?

Sure enough, bad grant proposals have some common traits as well. These include:

  • Lacks clarity; make sure the funder knows what you’re proposing to do
  • Loaded with errors; if you can’t take care of proposal, how will you treat the money you’re provided
  • Unrealistic expectations
  • No clear outcomes
  • Lack of alignment; doesn’t match up with funder’s goals and how the funder wants to see the world
  • Bores the reader; you want the proposal to excite the reader by proposing a brighter future

Bad writing, no matter the context, is just that: bad writing! Even if you believe your proposed project has all the marks of a winner, you will still need to make sure your grant proposal is well-written and thought out to help stand out from all the other applicants and make it easier for peer reviewers to understand your proposal.

Types of Grant Proposals & When to Use Them

There are several types of grants small business owners can apply for. Your eligibility for each type will depend on a number of factors. When to use each type will vary based on your proposed project and goals as well.

Federal Grants

Federal grants are a type of government grant or economic aid the US government provides from the funds made available through the general federal revenue. The government gives grants to stimulate the economy and draws from the U.S. general federal revenue. Grants can be funds for a portion of a certain project or organizational costs, or include complete funding for a project or research.

There are more than 1,000 different grant programs available to businesses and individuals that qualify, distributed by 26 grant-specific agencies across 21 distinct categories.

State Grants

State grants are need-based, state-specific awards that usually provide a smaller amount of funds than federal grants. As they are state-specific, there is often less competition, making them more attainable for small businesses. While they are smaller than a federal grant, state grants can provide the boost an organization needs to carry a project or program further, and demonstrate the project’s attractiveness to other granting agencies.

Local Grants

Local grants are awards issued by a city, county, or township, or any other local government department or agency. that stimulate the economy directly around them. Applicants are only eligible for local grants if they meet specific requirements, the most obvious being whether or not the county or city deems that the business is part of that area. This is typically true if the organization provides services to the city and its residents.

Corporate Grants

A corporate grant comes directly from a major corporation. Like federal grants, corporate grants will have various requirements, provide different amounts of funding, and be suited for specific or broad types of business or research. Companies generally set aside capital at the beginning of the fiscal year and host competitions to distribute the funds to qualified businesses.

Other Types of Grants: Nonprofits

In addition to the grants dedicated to for-profit businesses, there are four types of non-profit grants. These are dedicated to and designed for non-profit organizations and businesses.

It may not apply to you and your business, but it’s worth mentioning. The four types include: competitive grants, continuation grants, pass-through grants, and formula grants.

Competitive Grants

Nonprofits, universities, colleges, K-12 schools, and government organizations can apply for competitive grants. Occasionally, a small business may be eligible to apply as well. Competitive grants, like any grant, are submitted for approval and reviewed by a team of reviewers who make a decision to fund the proposed project or not.

Competitive grants simply mean the grant application is competitive and involves an approval process that is performed by a committee or board of directors, who base their decision on different criteria. This also means the grants are discretionary, and do not need to be awarded.

Formula Grants

Formula grants are non-competitive, and are typically awarded to support larger programs. Like a competitive grant, formula grants award funds that are distributed to businesses and organizations based on meeting specific criteria. Unlike a competitive grant, these awards are distributed to applicants based on a statistical formula and overseen by a legislative body.

All applicants that meet the criteria will receive funding, but the amount is based on certain benchmarks. This means formula grants are always awarded. Awardees can include states, local governments, territories, and other types of government organizations.

From there, states may be able to allocate money to organizations and businesses for a specific activity. The amount the awardee distributes can be based on the numbers an organization serves or the number of residents in the community.

Pass-through Grants

Like federal, state, and local grants, pass-through grants come from the federal government. The funding is distributed to a state or local government, who then passes on the funding to different organizations, institutions, and businesses. Eligible applicants can apply to states or municipalities for federal funds to stimulate the local economy and make an impact in a specific community or area.

Continuation Grants

Non-profit organizations can use continuation grants to renew a previously awarded grant for an additional amount of time. Without a continuation grant, the funding for the project would expire. These grant opportunities are also an opportunity for the awardee and funder to foster a relationship. While continuation grants are discretionary and mostly available to existing awardees, new applicants may be considered.

How to Find Grants for Small Businesses

There are different databases available online that you can access to search for various small business grants. Some are free, while others require a subscription.

Below we review government grant databases on the federal, state, and local levels, as well as corporate grants you can apply for and the databases you can use to search for private grants.

Federal Small Business Grants & Databases

Government agencies are among the biggest distributors of business grants, supporting a range of enterprises from environmental conservation to child care services. Applying may seem intimidating, but federal grants are great opportunities for small-business owners looking to grow.

Grants.gov allows you to search for grants based on category, eligibility, agency, and funding instrument type. It lists all of the grant opportunities currently available across more than a thousand different programs as well as closed and archived opportunities. It aims to simplify the grant search and application process.

SAM.gov is an official US government website. It is a central database for everyone who makes, receives, and manages federal grants and awards. Government contractors can use SAM, short for Systems for Award Management, to search for grants and contracts and view contract opportunity reports . To use the site and do business with the US government, you need to register your business. Learn more about the website’s requirements and features using its  help center .

USDA Biotechnology Risk Assessment Research Grants

The National Institute of Food and Agriculture (NIFA) offers a wide range of grant programs for agriculture- and agriculture science-based research and business initiatives. One such program,  the Biotechnology Risk Assessment Research Grants (BRAG) program , provides funding to support research that will help regulatory agencies make “science-based decisions about the effects of introducing into the environment genetically engineered organisms (GE).” This includes a wide range of organisms, from plants, microorganisms, fish, and birds to mammals and other animals.

Businesses can view BRAG’s Request for Applications (RFA) to learn more about the grants program, funding opportunity, award information, eligibility information, and more. Businesses can also apply for a grant directly on the agency’s website.

USDA Rural Business Development Grants

The U.S. Department of Agriculture (USDA) oversees and manages the Rural Business Development Grant program . It provides funding to strengthen and grow small businesses throughout rural communities.

In order to qualify for funding, businesses cannot have more than 50 new employees. Additionally, the business must have less than $1 million in gross revenue. It needs to also be located in an eligible rural area . Grant proposals are accepted only once per year through the local or state USDA Rural Development offices.

SBIR/STTR Programs

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs enable US-based, for-profit small businesses to become involved in federal research & development. The STTR also includes a partnership between the small business and nonprofit research institutions to formally collaborate in Phase I and Phase II.

These programs include a searchable solicitations database you can explore to find potential funding opportunities. These contract opportunities are available through different funding agencies, including the NIH, NSF, and more:

The National Institutes of Health (NIH) has a funding database that allows researchers to search for different types of grants, contracts, and even programs that help repay loans. There is also research training and career development available. You can subscribe to their weekly email newsletter that summarizes the funding opportunities posted each week and stay up to date with what solicitations are currently open.

The National Science Foundation (NSF) has an opportunities database that allows you to filter their opportunities according to different factors like award type, directorate, division, and education level. The database lists current, available opportunities with their respective due dates.

However, you can find the agency’s archived funding opportunities on its website as well. Reviewing the archived listings can give you a better idea of what the NSF has funded in the past, what they may fund in the future, and whether or not any of it applies to your R&D.

The US Department of Energy (DOE) lists funding opportunity announcements (FOAs) on their website according to offices within the department. You can search through its database based on program, fiscal year, and post date or close date. Additionally, the DOE lists Open Lab Announcements and Closed Lab Announcements as well.  

Through the Office of Small Business Programs (OSBP), the US Department of Defense (DOD) offers a number of grants, contracts, and funding opportunities for organizations and small businesses performing research and development.

OSBP manages a number of DOD programs, from the Mentor Protege Program and Indian Incentive Program to DOD small business program funding, market research, procurement goals, and contracting processes and activities. You can explore the various programs managed by OSBP and search for contract or grant opportunities on its website. These opportunities are mostly applicable to small businesses interested in commercializing their R&D.

State & Regional Small Business Grants & Databases

Economic development administration.

The Economic Development Administration (EDA) is an agency overseen by the Department of Commerce (DOC). It provides grants, resources and technical assistance to communities based on local business needs and conditions in order to stimulate and support economic growth and development while promoting entrepreneurship.

You can search the site for current and previous funding opportunities spread across the agency’s various programs. Additionally, you can search the economic development directory for regional offices and local resources.

State Business Incentives Database

The State Business Incentives Database is a database created by the Council for Community and Economic Research (C2ER) . With close to 2,000 programs from around the US, the database gives business owners, economic developers, business development professionals, and economic researchers a place to search for and compare various incentive programs.

Its site includes a map feature you can use to search for grants based on location, and provides information on tax credits and exemptions. To use the site, you must have an account. However, accounts are only available to members of C2ER.

California Grants Portal

The California Grants Portal was developed by the California State Library. It provides a central location for state grant opportunities, allowing state grant-making agencies to add and update their award information, and for grant seekers to search the database for opportunities. This makes it possible for all state grant opportunities to be searchable online.

Each listed grant includes a summary of what is needed to apply and how, along with links that businesses and organizations can follow to learn more. To the same effect, the California Grants Portal site includes an FAQ section .

State Trade Expansion Program

The State Trade Expansion Program (STEP) , provides state and territory governments with funding to distribute to small businesses with export development.

Supported by the SBA, STEP helps small businesses cover the costs to start or expand into international markets. Funding and eligibility requirements vary based on your state, but the money can be used to participate in a variety of business activities.

California Office of the Small Business Advocate

The California Office of the Small Business Advocate (CalOSBA) supports economic growth and development in California, ensuring California-based small businesses and startups have the support and resources needed to search for programs and understand regulations.

CalOSBA’s many funding programs include the California Microbusiness COVID-19 Relief Grant Program, California Small Business COVID-19 Relief Grant Program, California Dream Fund, and more.

Minority Business Development Agency Centers

The Minority Business Development Agency Centers (MBDA) is a nationally ran network of business development centers that support the growth and promotion of minority-owned small businesses. This includes helping businesses secure funding and contracts and compete in emerging markets.

Search for your local MBDA center and programs to apply for various types of funding, including state and local business grants and loans. The agency also typically holds a small-business grant competition annually. You can find contest updates on MBDA’s website.

Corporate/Foundation Small Business Grants & Databases

Many corporations and larger companies offer nonprofit and small-business grants. While some corporations work solely with nonprofits, others also provide funding to for-profit small businesses.

GrantWatch is a grant listing directory that currently features more than 28,000 grants, funding opportunities, awards, and archived grants—some of the archived grants will become available again as well. These grants come from a wide variety of sources: corporations, foundations, and government agencies on the federal, state, and local levels.

While GrantWatch can be an excellent database to search for grants , it does require that you become a member. With the free account, you gain access to a number of features and can search for grants using different dimensions, such as location and grant type.

However, if you want to get highly granular with your searches, access complete grant information, and access direct links to Requests for Proposals (RFPs) in order to apply, you’ll need to sign up for a paid account. The website also provides a wide range of resources, news, and more.

Sloan Foundation

The Sloan Foundation offers grants that support original research and education focused on science, technology, engineering, and more. The foundation’s funds are provided through the accumulated wealth of Alfred P. Sloan, and its mission is to use its funds and grantmaking abilities in the service of the public good.

The foundation selects projects to fund based on proposals submitted by both individuals and teams with original and innovative ideas. It is most interested in projects that have an expected return to society, show strong methodological characteristics, and do not yet have wide access to funding through government agencies, the private sector, or other foundations.

You can learn about the foundation’s grants , its grantmaking strategy, what it doesn’t fund, its grant application process, and more on its website. It also provides a searchable grants database you can use to see what’s currently available and archived.

GrantForward

GrantForward is a funding opportunity database and recommendation service created by academics for researchers. You can search for grants using a specific keyword, however, in order to get complete use of the site and additional searches, you’ll need to create an account. Free trials are available.

GrantForward uses a search algorithm alongside a team of specialists to continuously add new and up-to-date funding opportunities to its database, making sure your searches are as relevant and current as possible. It also provides search filters that make it easy to quickly find a funding opportunity that fits your needs.

The database includes a wide range of grant types you can search through, from fellowships to post-doctoral to equipment, facility, and organization grants. In addition to searching for grants, you can find pre-solicitations and awarded projects as well. However, you’ll need an account to complete these searches.

Instrumentl

Nonprofits and professional grant writing consultants rely on Instrumentl to match with the right funders, identify trends, and track and manage grants.

While Instrumentl works most closely with nonprofits, helping match grant writers with private and corporate grants their organizations can use to achieve specific goals, it also provides an extensive database for other opportunities. This includes federal and state grant funding opportunities.

You can search the website’s grant database by focus area, location, or foundation . In addition to its databases, you can leverage Instrumentl’s educational resources to better understand how to use Instrumentl, improve your grant writing, and more.

Visa Everywhere Initiative

The Visa Everywhere Initiative is a grant competition that offers funding to tech-forward startups across five different regions around the globe. Applicants must show how they’ve developed a product or service that creatively involves Visa’s products.

Visa will select the top five finalists in each region — and these businesses will move forward to a global finals event. The overall winner of the competition is awarded a $100,000 small-business grant. Additional grants are awarded to second- and third-place finalists, audience favorites, as well as regional and local winners.

FedEx Small Business Grant

FedEx’s annual grant competition awards more than $250,000 to 10 small businesses. This includes $4,000 in FedEx print and business services and a $50,000 grant to its three grand prize winners. While the 2022 contest has closed, it opens up again each year. Dates are posted to the company’s website once they are finalized.

The FedEx small business grant, as one would expect, is available to US-based, for-profit small businesses that have been in operation for a minimum of six months. Businesses can have no more than 99 employees. You can visit the site’s FAQs to learn more about eligibility requirements and more.

fundsforNGOs

fundsforNGO provides a wide range of resources and services for countless industries . It works to improve access to resources and enable a more sustainable environment. The organization accomplishes this by researching, developing, and curating content that supports the growth and sustainability of nongovernmental organizations (NGOs) and individuals working specifically in poverty alleviation and sustainable development.

Its many features include business intelligence, training, publications, and networking. However, most importantly for you, it also provides searchable databases of grants, donors, and proposals aimed to help NGOs find the information they need and track funding opportunities. In addition to its databases, fundsforNGOs also assists with grant writing, helping you plan and create your proposals.

Additional Resources

There are additional resources you can rely on to help with your search for grant funding. This includes various organizations that provide free help for your business. Many sources you can find through sba.gov and sbir.gov, however, you can also review the agencies below.

Small Business Development Centers

Small Business Development Centers (SBDCs) offer support to small businesses and entrepreneurs. There are local, regional, state, and national offices located across the country, so it can help to find one closest to you.

Some SBDCs are associated with local universities or a state’s economic development agency, as well, and can help connect you with small business grants, federal grants, and business financing opportunities. SBDCs generally offer training, counseling, and technical assistance in addition to support with grant funding.

For example, an SBDC can usually help you create a compelling business plan and pitch for your business, and help you understand how you’ll want to use the grant money you’re seeking out.

This also includes navigating the grant process. SBDC advisors have a lot of visibility locally and can help connect you with small business grants.

SCORE is a nonprofit organization supported by the SBA. It provides free entrepreneurship training, tools, and mentorship to US-based small business owners. Like SBDCs, SCORE is a free online resource entrepreneurs can access when they need help.

You can use SCORE to connect with a wide range of experts based on zip code for free. You can also request a match, search for a business mentor, or find your local chapter to get the advice or expertise you’re looking for. The SCORE mentor you’re matched with will hopefully be able to identify local grant opportunities for you and review your pitch or proposal to ensure it’s compelling and well-written.

In addition to mentorship, you can access a variety of workshops online and in-person. Browse through SCORE’s library of webinars , on-demand courses , and local workshops to find a class that can help you improve. Live classes are also available if you can’t attend workshops in person.

Grant Resources Center

The Grants Resource Center (GRC) is part of the American Association of State Colleges and Universities. This subscription service helps college/university offices secure more funding from federal and private groups.

It provides publications on a fixed schedule, management resources , funding resources , and a database where you can search for grants . Searching for a grant requires an account with GRC.

Procurement Technical Assistance Centers

P rocurement Technical Assistance Centers (PTACs) provide assistance to businesses looking to work with the US government, Department of Defense, and other federal, state, and local government agencies. Most of the assistance provided by your local PTAC is free.

If you need to determine if your business is ready for government contracting, eligible for small business certifications, register in the correct place to begin the process, or assistance with researching past contract opportunities, then your local PTAC can help. You can search the SBA PTAC database to find a center near you.

You can also work with a procurement center representative (PCR) if you need help securing government contracts. Because PCRs are able to see government procurement strategies before they’re announced, they are in a good position to help you in touch with a small business opportunity.

Additionally, PCRs also help carry out SBA policies and programs, assist small businesses with payment issues, conduct market research, and provide counseling with the contracting process.

Small Business Grant Proposal Templates

There are many free online grant proposal templates to choose from. A template can help you put together a visually appealing proposal or give you an idea of how to format your own proposal.

We suggest you use a template as a study guide or reference point rather than your actual proposal only because the grant you are applying for may require different formatting or information. That said, here are some resources that provide small business grant proposal templates:

  • PandaDoc grant proposal template
  • Jot Form grant proposal PDF templates
  • Wise free grant proposal template
  • Sample.net small business grant proposals in PDF
  • Technical Writer HQ grant writing templates
  • SampleTemplates grant proposal samples & small business grant proposal templates
  • Template.net grant proposal word templates

Conclusion: Applying For a Small Business Grant With Confidence

As a small business owner, things can feel pretty daunting at times. Being able to cover costs, push ahead on new programs or initiatives, and keep everything going requires significant cash flow. Luckily, there are a number of grant funding sources available to small businesses in the US.

Knowing what the grant writing process looks like and how to write a grant proposal before you get started can be a great help, reducing the amount of time, energy, and effort required to put together a winning grant proposal. This guide can serve as the first step toward building the knowledge and confidence needed when applying for a grant, and will make it easier to secure the funding you need to bring your idea to light.

Excedr has worked with a number of clients who secured grant funding in order to fund research and development, specific business initiatives, and provide services to the communities around them.

In some cases, that grant funding was available to use to lease lab equipment. By leasing the lab equipment they needed, our clients were able to extend their funding and save more for their research and development efforts.

In other cases, the grant funding was able to cover a client’s R&D or business costs, freeing up more room in their budget for equipment procurement and other initiatives.

Rather than put all that extra money into purchasing a few pieces of equipment, our clients leased instead, saving money on upfront costs and spreading out payments via manageable and consistent payments. If you’re interested in learning more about our leasing program , our team will be happy to provide you with more details. Contact us and let us know how we can help with your leasing needs.

Good luck on your grant writing journey. Securing grant funding can be an amazing moment and opportunity to accomplish great things!

Small Business Grants: Where to Apply & Writing a Grant Proposal

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Home > Finance > How To Write A Business Proposal For Funding

How To Write A Business Proposal For Funding

How To Write A Business Proposal For Funding

Modified: February 21, 2024

Learn how to write a compelling business proposal for funding in the finance industry. Gain tips and strategies to secure the financial support you need.

(Many of the links in this article redirect to a specific reviewed product. Your purchase of these products through affiliate links helps to generate commission for LiveWell, at no extra cost. Learn more )

Table of Contents

Introduction, research and preparation, executive summary, problem statement, proposed solution, market analysis, marketing and sales strategy, operational plan, financial plan, funding request.

Welcome to the world of business proposals! If you’re seeking funding for your business or project, a well-crafted business proposal is a crucial tool to help you secure the resources you need. Whether you’re approaching investors, banks, or potential partners, a compelling business proposal can make all the difference.

In this guide, we will walk you through the step-by-step process of writing a business proposal for funding. From conducting thorough research to presenting a comprehensive financial plan, we’ll cover all the key elements that will help you create a persuasive and professional proposal.

A solid business proposal serves as a roadmap for your venture, outlining your vision, goals, and strategies to attract investors or lenders. It showcases your understanding of the market, highlights the unique value of your offering, and demonstrates the viability and profitability of your business.

Keep in mind that writing a business proposal requires both creativity and thoroughness. You need to strike a balance between presenting a captivating narrative and providing concrete facts and figures. Your proposal should inspire confidence in your venture while backing it up with solid research and analysis.

Throughout this article, we’ll provide you with valuable tips and insights to help you craft a winning business proposal. We’ll guide you through the research and preparation phase, explain each essential section of the proposal, and offer suggestions on how to optimize your proposal for a successful outcome.

Remember, a well-prepared and compelling business proposal is your key to unlocking the funds you need to bring your ideas to life. So let’s dive into the process, shall we?

Before diving into the writing process, it’s crucial to conduct thorough research and preparation. This step sets the foundation for a strong business proposal and ensures that you have a solid understanding of your market, industry, competitors, and target audience.

Start by identifying your target audience and understanding their needs and pain points. Research their preferences, demographics, and purchasing behaviors. This information will help you tailor your proposal to align with their interests and showcase how your offering solves their problems.

Next, analyze your industry and market trends. Stay updated on the latest developments, emerging technologies, and consumer demands. Identify any potential gaps or opportunities in the market that your business can capitalize on. This analysis will not only demonstrate your industry knowledge but also show potential investors that you are well-positioned to succeed.

Take the time to study your competitors. Identify their strengths, weaknesses, and unique selling points. Determine what sets your business apart and highlight your competitive advantage in your proposal. Understanding your competition will also help you fine-tune your marketing and sales strategies to differentiate yourself in the market.

During the research phase, gather relevant data and statistics to support your claims and projections. Whether it’s market research reports, financial data, or industry case studies, having solid evidence will strengthen the credibility of your proposal.

Additionally, it’s essential to understand your own business inside and out. Develop a clear and concise mission statement, define your business goals, and articulate your core values. Outline your products or services, pricing strategy, and revenue models. Having a comprehensive understanding of your own business will enable you to effectively communicate your vision and objectives in the proposal.

Finally, consider the financial aspects of your venture. Create financial projections, including revenue forecasts, profit margins, and cash flow analysis. Investors want to see a clear path to profitability, so ensure that your projections are realistic and based on sound assumptions.

The research and preparation phase may seem time-consuming, but it is a crucial step to ensure the success of your business proposal. It will provide you with the knowledge and insights needed to create a comprehensive and compelling document that captures the attention of potential funders.

The executive summary is arguably the most important section of your business proposal. It serves as a snapshot of your entire proposal, summarizing the key elements and enticing the reader to delve deeper into the details. An effective executive summary can make a significant difference in capturing the attention of potential funders and piquing their interest in your venture.

In this section, provide a concise and compelling overview of your business, highlighting the most critical points. Start with a strong opening statement that grabs the reader’s attention and clearly communicates the purpose of your proposal. Paint a compelling picture of your business and the unique value you bring to the market.

Next, briefly outline your business concept, products or services, and target market. Clearly articulate the problem you are addressing and how your offering solves it. Highlight the market opportunity and demand for your solution, showcasing the potential for growth and profitability.

Describe your business’s competitive advantage and explain why you are well-positioned to succeed. Emphasize any unique features, intellectual property, or strategic partnerships that set you apart from competitors. This will demonstrate that you have a distinct value proposition that can lead to a sustainable competitive edge.

Mention your business’s mission, vision, and core values to showcase the purpose and principles driving your venture. Investors appreciate companies that have a strong sense of purpose and a clear direction for their growth.

Dive into your financial projections, highlighting the revenue potential and expected return on investment. Present your key financial metrics, such as projected sales, profit margins, and cash flow projections. This will give potential funders a sense of the financial viability and scalability of your business.

Lastly, include a clear and concise funding request. State the amount of funding you are seeking and how it will be used to support your business’s growth. Be specific and transparent about your funding needs to instill confidence in potential investors or lenders.

Overall, the executive summary should be persuasive, engaging, and leave the reader wanting to learn more. It should effectively convey the uniqueness and potential of your business, making a compelling case for why it deserves funding.

Remember, the executive summary sets the tone for your entire business proposal, so invest time in crafting a captivating summary that grabs the reader’s attention from the start.

In the problem statement section of your business proposal, you need to clearly and concisely outline the problem or pain point that your business is addressing. This is your opportunity to highlight the challenges or inefficiencies in the market that your product or service aims to solve.

Start by identifying the specific problem you are addressing. Provide a clear description of the pain point that customers in your target market are experiencing. Use data, research, or anecdotal evidence to support your claims and demonstrate the widespread nature and impact of the problem.

Next, illustrate the negative consequences or limitations that arise from this problem. Highlight how it hinders productivity, causes financial losses, or negatively affects customer satisfaction. By emphasizing the severity and implications of the problem, you can convey the urgency of finding a solution.

It is also important to showcase the current inadequacies of existing solutions or alternatives. Explain why the current options in the market are insufficient or ineffective in fully addressing the problem. This will further emphasize the need for your unique offering.

When presenting the problem statement, make sure to align it with the larger market and industry trends. Demonstrate that the problem is not an isolated issue but a widespread concern faced by many potential customers. By doing so, you can position your business as a valuable solution provider in an evolving and growing market.

Keep in mind that the problem statement should be concise and focused. Avoid overwhelming the reader with excessive details or unnecessary information. Instead, zero in on the core problem and its impact, making a clear and compelling case for your business’s relevance and necessity.

Lastly, be sure to connect the problem statement to your proposed solution. Transition seamlessly from discussing the problem to introducing how your product or service effectively addresses it. This helps the reader understand the connection between the problem and your business’s value proposition, setting the stage for the subsequent sections of your business proposal.

By clearly articulating the problem statement, you can create a sense of empathy with potential funders and highlight the significance of your business in addressing a pressing need in the market. The problem statement primes the reader to see the value and potential of your solution, making it a crucial component of a persuasive business proposal.

In the proposed solution section of your business proposal, you have the opportunity to present your innovative and unique solution to the problem identified in the previous section. This is the chance to showcase how your product or service fills the gap in the market and effectively addresses the pain points of your target audience.

Start by providing a concise and clear description of your solution. Explain how your offering solves the identified problem and improves the lives or businesses of your customers. Emphasize the key features and benefits that set your solution apart from existing alternatives.

Illustrate how your solution effectively mitigates the negative consequences or limitations outlined in the problem statement. Show how it improves efficiency, reduces costs, enhances productivity, or increases customer satisfaction. Use concrete examples, case studies, or testimonials to demonstrate the real-life impact of your solution.

It is crucial to highlight the unique value proposition of your solution. What makes your offering different from competitors? Is it a breakthrough technology, a novel approach, or a combination of services that no one else provides? Clearly articulate the unique selling points that make your solution stand out.

Furthermore, explain how your solution aligns with current market and industry trends. Describe how it leverages emerging technologies, caters to evolving customer preferences, or capitalizes on market gaps. This showcases your ability to adapt and stay ahead in a dynamic business environment.

Support your claims with market research and data. Present statistics, trends, or industry reports that validate the effectiveness and potential success of your solution. This helps build credibility and demonstrates your understanding of the market landscape.

When discussing the proposed solution, use language that is accessible and easy to understand. Avoid technical jargon or excessive complexities. Instead, focus on presenting the benefits in a clear and relatable manner, so that even non-experts can grasp the value of your solution.

Finally, it is important to outline your plan for implementing the solution. Explain the steps you will take to bring your offering to market, including product development, manufacturing, distribution, or service delivery. Outline your timeline, milestones, and key deliverables to demonstrate your preparedness and commitment to executing your business plan.

By effectively communicating your proposed solution, you can capture the attention and interest of potential funders. Demonstrate how your innovative and differentiated offering resolves a pressing problem, positioning your business for success in the marketplace.

In the market analysis section of your business proposal, you need to provide a comprehensive overview of your target market, its size, trends, and dynamics. This section helps potential funders understand the potential market opportunity and assess the viability of your business within it.

Start by defining your target market. Describe the specific demographic, geographic, and psychographic characteristics of your ideal customers. This helps investors understand the specific niche you are targeting and how well your solution aligns with their needs and preferences.

Next, provide an analysis of the market size and growth potential. Utilize market research data and industry reports to showcase the size of the addressable market and its projected growth rate. This demonstrates the scalability and revenue potential of your business.

It’s also important to analyze the market dynamics and trends. Highlight any emerging technologies, regulatory changes, or consumer behavior shifts that are shaping the market. A thorough understanding of the current and future trends provides insight into the longevity and adaptability of your business.

Identify your direct and indirect competitors and analyze their market position, strengths, and weaknesses. Assess their pricing strategies, customer base, and market share. This analysis helps you understand the competitive landscape and positions your business to differentiate itself effectively.

Furthermore, conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) to evaluate the internal and external factors that impact your business. Identify your unique strengths that give you a competitive advantage, while also acknowledging any weaknesses or challenges that need to be addressed.

As part of the market analysis, it is crucial to outline your marketing and sales strategy. Explain how you plan to reach your target customers and communicate the value of your solution. Discuss your pricing strategy, distribution channels, and marketing tactics. This demonstrates your understanding of how to effectively penetrate the market and generate revenue.

Throughout the market analysis, use data and statistics to support your statements and projections. Cite reputable sources and provide clear references to back up your claims. This adds credibility to your proposal and helps potential funders trust your market analysis.

By conducting a thorough market analysis, you demonstrate a deep understanding of your target market and its potential. This gives investors confidence in your business’s ability to succeed and grow within the market, increasing the chances of securing funding.

In the marketing and sales strategy section of your business proposal, you need to outline how you plan to promote and sell your product or service to your target audience. This section demonstrates your understanding of the customer acquisition process and your ability to generate revenue.

Start by clearly defining your target market. Revisit the demographic, geographic, and psychographic characteristics of your ideal customers. This helps you tailor your marketing and sales efforts to effectively reach and engage your target audience.

Next, explain the marketing channels you will utilize to reach your customers. Will you focus on digital marketing, traditional advertising, or a combination of both? Describe your strategies for social media marketing, search engine optimization, content marketing, email marketing, or any other channels relevant to your business.

Provide insights into your branding and messaging. Elaborate on the unique value proposition you want to communicate and how it differentiates you from competitors. Discuss your brand positioning, tone of voice, and visual identity. A strong and consistent brand image helps build trust and attract customers.

Detailed explanations of your promotional campaigns and tactics are also important. Outline any planned events, partnerships, or collaborations that will enhance your visibility and reach. This could include attending trade shows, sponsoring industry events, or leveraging influencer marketing.

Additionally, explain your sales strategy. Will you have an in-house sales team, rely on distribution partners, or utilize e-commerce platforms? Describe the sales process, including lead generation, qualification, and conversion. Discuss your pricing strategy, discounts, and any incentives you plan to offer to drive sales.

Metrics and analytics are crucial in evaluating the success of your marketing and sales efforts. Explain the key performance indicators (KPIs) you will track to measure the effectiveness of your marketing campaigns and sales activities. Discuss how you will analyze the data and make data-driven decisions to optimize your strategies.

Finally, in this section, provide a timeline and milestones for your marketing and sales initiatives. Outline when you plan to launch specific campaigns, roll out new features or products, or expand into new markets. This demonstrates your proactive approach and ability to execute your marketing and sales plans.

In the operational plan section of your business proposal, you need to outline how your business will operate on a day-to-day basis. This section provides an in-depth understanding of your business’s infrastructure, processes, and resources.

Start by describing your business’s physical location or facilities. Explain the size, layout, and amenities of your workspace. If you don’t have a physical location, discuss your plans for remote work or shared office spaces. Provide details on any necessary equipment, technology, or machinery required to run your operations efficiently.

Next, outline your organizational structure and key roles within your company. Describe the management team, their responsibilities, and their relevant experience. Explain your hiring and staffing plans, including any projected growth in personnel as your business scales.

Detail the processes and workflows that drive your business operations. This can include product development, inventory management, quality control, order fulfillment, or service delivery. Highlight any unique approaches or proprietary methodologies that give you a competitive advantage.

It’s essential to address any legal and regulatory requirements that govern your business operations. Discuss the permits, licenses, or certifications necessary for your industry or specific activities. Demonstrate your commitment to compliance and adherence to industry standards.

Consider the technology and systems that will support your operations. Discuss your IT infrastructure, software applications, or customer relationship management (CRM) tools that you will utilize. Explain how these technologies will enhance your efficiency, productivity, and customer service.

Address the scalability and growth potential of your operations. Identify any potential bottlenecks or challenges that may arise as your business expands. Outline your strategies for scaling your operations, such as expanding production capacity, optimizing supply chains, or outsourcing certain functions.

Describe your vendor and supplier relationships. Explain how you will choose and manage your suppliers to ensure the quality and timely delivery of goods or services. If applicable, discuss any strategic partnerships or collaborations that enhance your operations.

Lastly, discuss your contingency plans for any potential risks or challenges that could impact your operations. Address scenarios such as equipment failure, supply chain disruptions, or changes in market demand. Show investors that you have considered these risks and have strategies in place to minimize their impact.

By providing a clear operational plan, you demonstrate that you have thought through the details of how your business will function on a day-to-day basis. This showcases your preparedness and professionalism, making a strong case for the feasibility and sustainability of your business.

In the financial plan section of your business proposal, you need to provide a comprehensive overview of your financial projections, including revenue forecasts, expenses, and funding requirements. This section demonstrates the financial viability and potential profitability of your business.

Start by providing an executive summary of your financial plan, highlighting the key financial metrics and projections. This allows investors to quickly grasp the financial health of your business and its growth potential.

Outline your revenue projections for the upcoming years. Clearly articulate the sources of your revenue and explain how you arrived at your revenue forecasts. Consider factors such as pricing, market demand, sales volume, repeat business, and customer acquisition rates. Ensure that your revenue projections are realistic and based on industry benchmarks and data.

Next, list your anticipated expenses. This includes both fixed and variable costs, such as rent, salaries, utilities, raw materials, marketing expenses, and overheads. Provide a breakdown of your expenses and explain any major cost drivers.

It’s essential to include a detailed cash flow projection. This forecast demonstrates the flow of money in and out of your business. It ensures that you have sufficient funds to cover your expenses and repay any debts. A healthy cash flow projection is crucial for the long-term sustainability of your business.

Consider creating a profit and loss statement, also known as an income statement. This statement summarizes your revenue, costs, and expenses to determine your net profit or loss. It provides a snapshot of your business’s financial performance and helps assess its profitability.

Besides the revenue and expenses, discuss your balance sheet . This financial statement provides an overview of your business’s assets, liabilities, and equity. It demonstrates the financial position of your business at a specific point in time and helps illustrate its stability and strength.

Additionally, address funding requirements in this section. Clearly state the amount of funding you are seeking and explain how you will utilize the funds. Provide a breakdown of how the funds will be allocated, such as product development, marketing campaigns, or operational expenses. This showcases your financial planning and transparency.

Lastly, it’s important to include any supporting documentation or financial analysis that strengthens your financial plan. This may include historical financial statements, market research data, or industry benchmarks. These additional details provide investors with a deeper understanding of the financial health of your business.

By presenting a well-structured and comprehensive financial plan, you demonstrate your ability to manage the financial aspects of your business effectively. It instills confidence in potential funders, showing them that you have a clear understanding of your business’s financial viability and potential for growth.

In the funding request section of your business proposal, you need to clearly and specifically state the amount of funding you are seeking and explain how the funds will be used to support your business’s growth and development.

Begin by stating the exact amount of funding you are requesting. Be specific and provide a breakdown of how the funds will be allocated to different areas of your business. For example, you might need funds for product development, marketing and advertising, hiring personnel, equipment, or expanding into new markets.

Explain the rationale behind your funding request. Discuss the specific needs and opportunities that necessitate the additional capital. Highlight the potential return on investment and growth potential that the funding will unlock for your business.

When discussing the use of funds, provide a detailed explanation of how the funds will be allocated and how they will contribute to the success of your business. For each area or activity that requires funding, outline the specific costs and benefits. This shows potential funders that you have thoroughly evaluated your needs and have a strategic plan for utilizing the funds.

Consider addressing the timeline for fund utilization. Explain when you anticipate needing the funds and how you plan to phase the funding in relation to your business’s growth milestones. This demonstrates your preparedness and your ability to manage the funds effectively.

While it is important to be clear about your funding request, it is equally important to justify the funding amount. Provide a detailed financial analysis and projections that support your request and show potential funders the potential return on investment.

Additionally, discuss the potential exit strategies for investors if applicable. Explain the options for investors to realize their investment, such as through a public offering, acquisition, or buyback of shares. This demonstrates your understanding of the investor’s perspective and commitment to their interests.

Finally, conclude the funding request section by expressing your appreciation for the potential funders’ consideration and your willingness to provide any additional information they may require. Reiterate your confidence in your business’s potential and your commitment to success.

By clearly and persuasively presenting your funding request, you increase the chances of securing the financial support you need to take your business to the next level. Show potential funders that you have a well-thought-out plan for the funds, backed by solid financial projections and a clear understanding of the potential return on investment.

In conclusion, this business proposal provides a comprehensive overview of your venture, highlighting its unique value proposition, market potential, and financial projections. You have taken potential funders through a journey of understanding the problem you aim to solve, the innovative solution you have developed, and how you plan to market, sell, and operate your business.

The strategic research and preparation conducted to support this proposal demonstrate your commitment to success and your understanding of the market and industry trends. Your proposed solution effectively addresses the identified problem, emphasizing your competitive advantage and the potential for growth and profitability in the market.

The market analysis provides a thorough understanding of your target audience, industry dynamics, and competitive landscape. Your marketing and sales strategies showcase your ability to effectively reach customers, differentiate your offering, and generate revenue. The operational plan demonstrates your capabilities in managing the day-to-day operations and scaling your business for future growth.

The financial plan outlines the revenue projections, expenses, and funding requirements for your business. It showcases your financial acumen and provides potential funders with a clear understanding of the potential return on investment. The funding request section clearly articulates the specific nature of your funding needs, how the funds will be utilized, and the potential impact it will have on your business.

In closing, this business proposal is a comprehensive, compelling, and well-researched document that highlights the viability and potential of your venture. It demonstrates your thorough understanding of the market, your innovative solution, and your strategic plans for growth and success.

Thank you for considering this business proposal, and we welcome the opportunity to discuss it further and provide any additional information or clarification. We are confident that with your support, our business will achieve the success and impact we envision.

In the appendices section of your business proposal, you can include supplemental information that supports and enhances the content of your proposal. These documents provide additional context, evidence, and credibility to reinforce your claims and strengthen the overall proposal.

Here are some examples of documents that you may consider including in the appendices:

  • Market research reports: Include market research data, surveys, or studies that validate the demand for your product or service. This adds credibility to your market analysis and demonstrates that you have conducted thorough research.
  • Financial statements: Include past financial statements, such as balance sheets, profit and loss statements, and cash flow statements. These statements provide a historical financial snapshot of your business and show its financial health and stability.
  • Case studies: Include case studies or success stories that showcase how your product or service has benefited previous customers. This demonstrates the value of your offering and provides tangible evidence of its effectiveness.
  • Contracts or agreements: Include any relevant contracts, agreements, or partnerships that you have established. This includes distribution agreements, strategic partnerships, or licensing agreements. These documents show that you have secured key relationships or collaborations to support the growth of your business.
  • Professional portfolios: If applicable, include professional portfolios or resumes of key team members or founders. This provides additional credibility by highlighting the expertise, skills, and experience of your team.
  • Legal and regulatory documents: Include any permits, licenses, or certifications required for your business operations. This demonstrates your commitment to compliance and adherence to industry regulations.
  • Product demonstrations or prototypes: If you have a physical product, include images, videos, or prototypes that illustrate its features and functionality. This provides a visual representation of your product and helps potential funders understand its value.

Ensure that the documents included in the appendices are relevant, organized, and clearly labeled. Refer to them within the main body of the proposal when necessary, to direct readers to the corresponding appendices.

While the appendices section is optional, it can significantly enhance the persuasiveness and credibility of your business proposal. It allows potential funders to delve deeper into the supporting documents and gain a more comprehensive understanding of your business and its potential for success.

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Step-By-Step Guide to Writing a Grant Proposal

Writing a grant proposal is incredibly time-consuming.

No joke. It's one of the most complicated documents you could write in your entire life.

There are different requirements, expectations, and formats—not to mention all the prep work you need to do, like market research and clarifying your project timeline.

Depending on the type of company or organization you represent and which grants you’re applying for, your grant could run anywhere from a dozen to a hundred pages. It’s a lot of work, and we’re here to help.

In this guide to grant proposals, we offer writing steps and examples, as well as resources and templates to help you start applying for funding right away.

Graphic showing increased success when writing grant proposals

Types of grant proposals

Grant proposals typically fall into one of these main categories:

Research grant proposals - Research grant proposals are usually sent by university professors or private research organizations in order to fund research into medical, technological, engineering, and other advancements.

Nonprofit grant proposals - Nonprofits send grant proposals to philanthropic organizations and government agencies to acquire funds for community development, health, education, and similar projects.

Technology grant proposals - Grant proposals can also be sent by technology companies (software, hardware, solar, recycling, environmental, manufacturing, health, and other types of tech companies). These proposals are often sent to large government organizations looking for solutions to current and future problems, as well as VC firms looking to invest in smart startups.

Small business grant proposals - Local governments often give grant awards to small businesses to help them kickstart, market, or expand.

Arts grants - Grants allow artists that would otherwise lack the financial resources to devote extended periods of time to their art. They might need to complete an installation that can be enjoyed by the community as part of the grant.

Grant RFP proposals - There can also be a request for proposals (RFP) for just about anything. From multinational organizations like the UN to family philanthropic grants, you can find RFPs for a variety of projects.

How to prep before you write

Before you can sit down to write your grant proposal, you’ll need to have a deep understanding of:

Existing scientific literature (for research grants) or relevant reports and statistics

Market and competitor landscape

Current available solutions and technologies (and why they’re not good enough)

Expected positive impact of your project

The methods and strategies you’ll employ to complete your project

Project phases and timelines

Project budget (broken down into expense categories)

With these things all buttoned down, you’ll have a much easier time writing the sections that cover those details, as well as the sections that highlight their meaning and importance (such as your statement of need and objectives).

Create a document where you can play around. Take notes, write down ideas, link out to your research, jot down different potential budgets, etc.

Then, when you’re ready to write, create a fresh document for your actual grant proposal and start pulling from your notes as needed.

How to write a grant proposal (ideal format)

Now, let’s get writing.

The ideal outline for a grant proposal is:

Cover Letter

Executive summary, table of contents, statement of need, project description, methods and strategies, execution plan and timeline, evaluation and expected impact, organization bio and qualifications.

If you’re not writing a super formal grant proposal, you might be able to cut or combine some of these sections. When in doubt, check with the funding agency to learn their expectations for your proposal. They might have an RFP or other guidelines that specify the exact outline they want you to follow.

Note: In business proposals, the cover letter and executive summary are the same, and those phrases are used interchangeably. But for grant proposals, the cover letter is a short and simple letter, while the executive summary offers a description of key aspects of the proposal.

In your cover letter, you'll write a formal introduction that explains why you are sending the proposal and briefly introduces the project.

What to include :

The title of the RFP you are responding to (if any)

The name of your proposed project (if any)

Your business or nonprofit organization name

A description of your business or organization, 1-2 sentences

Why you are submitting the proposal, in 1-2 sentences

What you plan to do with the funds, in 2-4 sentences

Dear [Name], The Rockville Community Garden is responding to the city of Rockville’s request for proposals for nonprofit community improvement projects. The Rockville Community Garden is a space for relaxation, healthy eating, exercise, and coming together. We are submitting a proposal to request funding for Summer at the Garden. Every summer, parents are tasked with finding childcare for their children, and we have received countless requests to host a summer camp. We're requesting funding to cover tuition for 100 low-income children ages 5 to 12. The funds will make our summer camp accessible to those who need it most. Thank you for your consideration, [Signature] [Title]

The executive summary of a grant proposal goes into far more detail than the cover letter. Here, you’ll give

Statement of Need overview, in 2 - 5 sentences

Company Bio and Qualifications, in 2 - 5 sentences

Objectives, in 2 - 5 sentences

Evaluation and Expected Impact, in 2 - 5 sentences

Roman architecture stands the test of time until it doesn’t. Roman building techniques can last thousands of years but will crumble to dust instantaneously when earthquakes strike. Meanwhile, our own building techniques of reinforced concrete and steel last only a couple of centuries. Ancient Architecture Research firm is dedicated to modernizing roman building techniques to create new structures that are earthquake safe and sustainable. Our principle investigators hold PhDs from renowned architecture universities and have published in numerous journals. Our objectives for the research grant are to create a prototype structure using Roman building techniques and test it on a shake table to simulate an earthquake. The prototype will pave the way for our application for an amendment to the California building code to permit unreinforced masonry construction. With the success of the prototype, we will prove the safety and viability of this technique. This project will have an enormous potential impact on several crises plaguing the state of California now and in the future: disaster relief, affordable housing, homelessness, and climate migration. Unreinforced masonry construction can be taught and learned by amateur builders, allowing volunteers to quickly deploy temporary or permanent structures.

Next up, you need your Table of Contents! Make sure it matches the names of each of your following sections exactly. After you’ve written, edited, and finalized your grant proposal, you should then enter accurate page numbers to your TOC.

Next up is the statement of need. This is where you sell why you’re submitting your grant request and why it matters.

A description of who will benefit from your proposal

Market and competitive analysis

Statistics that paint a picture of the problem you’re solving

Scientific research into how the problem is expected to worsen in the future

Reasons why your small business deserves funding (founder story, BIPOC founder, female founder, etc.)

While women hold 30% of entry-level jobs in tech, they only make up 10% of C-suite positions. The Female Leadership Initiative seeks to develop women tech leaders for the benefit of all genders. Female leaders have been proven to positively impact work-life balance, fairer pay, creativity, innovation, teamwork, and mentorship.

In this section, you’ll describe the basics of your research project, art project, or small business plan. This section can be kept fairly short (1 - 3 paragraphs), because you’ll be clarifying the details in the next 5 paragraphs.

The name of your project (if any)

Who will benefit from your project

How your project will get done

Where your project will take place

Who will do the project

The Fair Labor Project will seek to engage farm workers in the fields to identify poor working conditions and give back to those who ensure food security in our communities. Trained Spanish-speaking volunteers will visit local farms and speak with workers about their pay and work conditions, helping to uncover any instances of abuse or unfair pay. Volunteers will also pass out new work gloves and canned food. Volunteers will also place orders for work boots and ensure that boots are later delivered to workers that need them.

You should also write out clear goals and objectives for your grant proposal. No matter the type of agency, funding sources always want to see that there is a purpose behind your work.

Measurable objectives tied directly to your proposed project

Why these objectives matter

We seek to boost volunteer turnout for our voter registration efforts by 400%, allowing us to reach an additional 25,000 potential voters and five additional neighborhoods.

Now it’s time to clarify how you’ll implement your project. For science and technology grants, this section is especially important. You might do a full literature review of current methods and which you plan to use, change, and adapt. Artists might instead describe their materials or process, while small business grant writers can likely skip this section.

The names of the methods and strategies you will use

Accurate attribution for these methods and strategies

A literature review featuring the effectiveness of these methods and strategies

Why you are choosing these methods and strategies over others

What other methods and strategies were explored and why they were ultimately not chosen

“We plan to develop our mobile app using React Native. This framework is widely regarded as the future of mobile development because of the shared codebase that allows developers to focus on features rather than create everything from scratch. With a high workload capacity, react native also provides user scalability, which is essential for our plan to offer the app for free to residents and visitors of Sunny County.”

You’ll also need to cover how you plan to implement your proposal. Check the RFP or type or grant application guidelines for any special requirements.

Project phases

The reasoning behind these phases

Project deliverables

Collaborators

In our experience and based on the literature,11,31-33 program sustainability can be improved through training and technical assistance. Therefore, systematic methods are needed to empirically develop and test sustainability training to improve institutionalization of evidence-based programs. This will be accomplished in three phases. In Phase 1, (yr. 1, months 1-6) we will refine and finalize our Program Sustainability Action Planning Model and Training Curricula. As part of this refinement, we will incorporate experiential learning methods3-6 and define learning objectives. The Program Sustainability Action Planning Training will include action planning workshops, development of action plans with measurable objectives to foster institutional changes, and technical assistance. We will also deliver our workshops in Phase 1 (yrs. 1 and 2, months 6-15) to 12 state TC programs. Phase 2 (yrs. 1, 2, and 3) uses a quasi-experimental effectiveness trial to assess the Program Sustainability Action Planning Training in 24 states (12 intervention, 12 comparison). Evaluation of our training program is based on the theory of change that allows for study on how a change (intervention) has influenced the design, implementation, and institutionalization of a program.7,8,11,28 We will collect data on programmatic and organizational factors that have been established as predictors of sustainability9,11 using state level programmatic record abstraction and the Program Sustainability Assessment Tool (PSAT)43 to assess level of institutionalization across intervention and comparison states at three time points. Data will be used to establish the efficacy of the Program Sustainability Action Planning Model and Training Curricula. In Phase 3 (yr. 4, months 36-48), we will adapt our training based on results and disseminate Program Sustainability Action Planning Model and Training materials. - From Establishing The Program Sustainability Action Planning Training Model

A budget table with various expense categories

An explanation of what each category entails

Expenses broken down by month or year (if this fits your proposal)

Here’s an example budget table with expense categories:

Grant proposal budget table

You can then include a brief description of each category and the expenses you expect within them.

A great grant proposal should clarify how you will measure positive outcomes and impact.

Details on the expected impact of your project

Who will benefit from your project and how

Your plan for evaluating project success

How you will measure project success

We will measure the success of the project by monitoring the school district’s math scores. We are expecting an 8% increase in state testing scores from the fall to the spring across grades 1 through 3.

And lastly, finish up your grant proposal with a bio of your organization, your company, or yourself.

Company name

The names of people on your team

Professional bios for everyone on your team

Your educational background

Any relevant awards, qualifications, or certifications

Jane Doe received her masters in fine arts specializing in ceramics from Alfred University. She has received the Kala Fellowship and the Eliza Moore Fellowship for Artistic Excellence.

Successful grant proposal examples

Want to write winning grant applications?

We’ve rounded up examples of successful, awarded grants to help you learn from the best.

Check out these real examples across science, art, humanities, agriculture, and more:

Funded arts and research grants from the University of Northern Colorado

Samples of awarded proposals from the Women’s Impact Network

National Cancer Institute examples of funded grants

Institute of Museum and Library Services sample applications

Specialty Crop Block Grant Program awarded grants examples

Grant application and funding resources

To help you get started writing and sending grant proposals, we’ve found some great application resources.

Research grants:

United States Environmental Protection Agency (EPA) grants

William T. Grant Foundation grants on reducing inequality

Russel Sage Foundation research grants

Nonprofit grants:

Walmart’s Local Community Grants

Bank of America’s Grant Funding for Nonprofits

Canada GrantWatch’s database of nonprofit grants

Technology grants:

Google Impact Challenges

UN Sustainable Development Goals Fund

US Department of Energy Funding

Small business grants:

US Chamber of Commerce Small Business grants

Canada Small Business Benefits Finder

US Small Business Administration (SBA) grants

Arts grants :

National Endowment for the Arts grants

Art Prof Artist Grants

Canada Council for the Arts grants

Get started with our proposal writing templates

The best way to start any proposal is with a template. A template informs your writing, while drastically speeding up the time it takes to design an attractive proposal.

All of our 75+ proposal templates can easily be adapted for any purpose, including grants or requests for funding. Try our project proposal template and make it your own by adding your executive summary, statement of need, project description, execution plan, budget, and company bio.

Start a free trial to check out all of our proposal software features , including reusable content snippets, e-signatures, viewing and signing analytics, and more.

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How to Create Business Proposals Faster

November 14, 2017

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Proposal Templates > Funding Proposal Template

Funding Proposal Template

If you’re trying to raise money, it’s crucial that you present your organization or project in the best possible light. We’ve made it easy to impress with our free and fillable funding proposal template. Start customizing in minutes!

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Articles / How to Write a Business Plan Funding Proposal /

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How to Write a Business Plan Funding Proposal

Did you know? Proposal Packs are designed for writing business plan funding proposals with pre-written templates, samples, graphic design options and automation software.

How to Write a Business Plan Funding Proposal

You have a great idea for starting a new business or expanding your current one. You've thought through all the issues and created a roadmap for success. Now all you need is the funding to put your dreams into action. But how are you going to secure that funding? You can't just stroll into a bank or sit down at a committee meeting and hand them your notes and spreadsheets. You need to write a business proposal to lay out your plans and request the funds - and show you can pay them back.

You're an entrepreneur, you think, not a writer! You've never written more than a business letter and a meeting agenda. Don't worry. It doesn't need to be an intimidating process, because there is a basic structure to every business proposal. Here are the four parts, in order: simply 1) introduce yourself; 2) show that you understand your customers/clients and their needs; 3) describe how your goods and services meet those needs and present your expected expenses and profits; and 4) persuade the bank or committee that you have integrity and can be trusted with the money.

You don't need to start out with blank pages, either. You can speed up the proposal writing process by using pre-designed templates and samples, along with simple automation software.

The length of your proposal will vary depending on the complexity of the project you are proposing and how much funding you require. It is obviously easier to describe an expansion plan and present financial data for an existing business than it will be to describe how you will get a new business up and running. Your proposal might be only ten pages long, or it might need to include dozens of pages.

The secret to creating a successful funding proposal is to show a need or desire on the part of your prospective clients/customers, and then to show how you will meet that need and profit from providing the solution. When requesting funding, you also need to keep in mind the needs of the bank or funding committee. Put yourself in the other party's shoes. What does your prospective funder need or want? What are their concerns? How have you gathered this information? What sort of information about your business experience and financial know-how will the funding institution want from you before handing you money? Lending institutions and grant committees want to understand your background and your plan to determine if your business is likely to succeed.

A bank or investor will also want to see your plan for paying them back. This is where a repayment plan is necessary, as well as information that shows you have enough assets for collateral in case you default. Banks will have a lower risk threshold than an angel investor so you will need to tailor your request more conservatively for a bank. A bank may only be concerned that the loan will be paid back with interest. An investor will also want to see your exit plan and know how you plan on cashing out.

Start your business plan funding proposal by introducing yourself and the proposal with a Cover Letter and Title Page. Your Cover Letter should be brief: simply explain who you are, include all relevant contact information, and print the letter on your company letterhead. Also add a call to action statement such as requesting a meeting or directly asking that the funding be approved. The Title Page should simply introduce your proposal and the specific project you are proposing. Some examples might be "Business Plan for New Panne Bella Italian Bakery," "Proposed Expansion of Grayle's Hardware Store," or "Funding Proposal for New Downtown Art School."

After the introduction section comes the section where you talk about your clients or customers: the people who want or need your goods or services. Here you will include topics that demonstrate your understanding of the business market. Depending on the complexity of the project you are proposing, you may or may not need to start off with a detailed summary (called an Executive Summary). In this section, describe the market need that you intend to fill, and provide statistics and data to back up your assertions. You need to impress the proposal readers with your market knowledge. This is not yet the place where you talk about your goods or services. This section is all about proving a need or desire for your business.

After the market-centered section comes the section where you explain how your goods or services will provide solutions to the needs you described. You'll add pages with titles like Products, Services Provided, Benefits, Price List, Services Cost Summary and so forth - include all the topics you need to describe exactly what you intend to provide and how much it will cost. Depending on the sort of business you are requesting funding for, you may also need to include descriptions of Facilities, Equipment, and Personnel that you need for your proposed project.

At each step in this section, you will need to describe expected expenditures and returns. Depending on whether you are requesting funding for an existing business or asking for money to launch a new enterprise, you will need to prove your case by including pages with titles like Funding Request, Income Projection, Breakeven Analysis, Project Budget, Annual Budget, Cost Management, Cash Flow Analysis, and Return on Investment. Also make sure to include a Repayment Plan to show the bank or investor how they will be paid back and potentially profit from funding your business. Add your Exit Plan if submitting to an investor.

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After you've described what you are proposing to do and how much it will cost comes the final section, where you provide information about your company and your financial history. If you're already running a business, you'll need to provide a financial overview of that business, including pages such as a Profit and Loss Statement. Your goal is to conclude your proposal by convincing the prospective client that you can be trusted to deliver the goods or services you have described, succeed in your business, and pay back the funding. In this section, you'll add pages like About Us / Company History, Awards, Testimonials, References, Qualifications, Capabilities, Our Clients, Experience, and so on. Include everything you need to convince the bank or funding committee that you know what you're talking about and can do what you've promised.

After the proposal is written, take some time to make sure the pages look good, too. You might consider adding color and graphics by incorporating your company logo, selecting custom bullet points and fonts, or adding colored page borders. Don't go overboard, though - keep the overall tone business-like. Learn how to effectively select colors for a winning business proposal.

Proposal Pack

Be sure to carefully proofread and spell-check all the pages. If your proposal seems sloppy, the reader may conclude that you are not professional and don't pay attention to details. Recruit a proofreader who is not familiar with your proposal to do the final proof, because it's nearly impossible to spot errors in your own work. Keep in mind that spell check cannot catch words that are correctly spelled but misused.

Save your proposal as a PDF file or print it, and then deliver it. If the bank or funding committee has specific rules, obey them to the letter. It's common to email PDF files nowadays, but a hand-delivered printed proposal may impress the money-lenders more. If you have a lot of competition for limited funds in your area, put your best effort into the proposal and delivery.

You can see that each business plan funding proposal will include different pages because each must describe the market need, how the proposed project will meet that need, and why the management is credible and can be trusted with the funding.

But you can also see that all business plan funding proposals follow a similar format and structure. And remember that you don't need to start from scratch - you can find templates for all the pages mentioned in this article in Proposal Pack . These templates contain instructions and provide examples of information to include on each page. The product also contains a variety of sample funding requests, including business plan samples for a retail services company and one for a technical/digital product company. Starting off with Proposal Pack's templates and sample business plan proposals will give you a big head start on creating your own winning business funding proposal.

Proposal Pack Help Video: How to Write a Business Plan Proposal

This video shows how Proposal Kit is used to create a business plan. A business plan in this situation is typically in the format of a proposal for pitching to a bank, lender or investor when seeking funding for a business or startup.

Ian Lauder

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How to Write a Winning Grant Proposal: A Nonprofit’s Guide to Securing Funding

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Grants, which are funds awarded by an outside source and typically earmarked for a particular use, are incredibly valuable for nonprofit organizations to achieve their missions. In fact, it is not uncommon for organizations to rely on this type of funding to cover operating expenses, pay workers, and launch initiatives.

Common sources of grants include public and private institutions, including government departments, family trusts, foundations, and the like.

Because of the competitive nature of the grant process, it’s important to know how to write a grant proposal, how to evaluate which opportunities are worth pursuing, and how to effectively communicate your organization’s intentions.

What Is Grant Writing?

Grant writing is the application process required of an organization seeking certain financial awards. Crafting an impactful grant proposal takes compelling communication, clear language, and an understanding of the funding landscape. To start, it is useful to differentiate between funding sources and the types of grants they offer.

  • Federal grants are a way in which the U.S. government contributes to a wide range of ideas and projects that provide public services or stimulate the economy.
  • State grants vary from federal grants when it comes to administration. For example, a state grant is typically geared toward local needs as opposed to national or international causes.
  • Local (city or county) grants are useful for an even smaller scope. This level of targeted support typically involves the improvement of community development, infrastructure, public services, and individual efforts by community members.
  • Private grants can come from corporate or non-corporate entities, family trusts, foundations, financial institutions, or individuals. When it comes to these types of non-government grants, Candid keeps a global database of opportunities.

How to Write a Grant

These six steps will help you create a strong grant proposal, increasing your chances of achieving the funding and recognition that can drive your organization forward.

Dedicate ample time to analyzing your needs, including what areas of your organization will benefit from grants, exactly how much funding is needed, and realistic outcomes. You will want to thoroughly explore opportunities you qualify for, and allocate resources — time and personnel — to thoughtfully write your grant proposal.

2. Know what sets you apart

Grants are often highly sought after, so you’ll need to be well-versed on the ins and outs of what makes your organization unique and deserving. Conduct thorough research about your field, including the needs you serve and the impact you can make with grant funding. Share specific stories, testimonials, and experiences that stand out to you and the community at large that you serve.

3. Utilize facts and figures

Data will help prove your organization’s worth. Consider providing financial insights, information about existing partnerships, and budgeting outlooks. Use numbers to show the needs of populations you serve and project how beneficial grant funding will be, including plans for allocation.

4. Communicate clearly

Be highly sensitive to each and every requirement. These will vary by grant and must be followed. You’re the expert in your field, but your reader might not be. Write your grant proposal using clear, concise language without industry jargon if it’s not well-known. It’s important to also abide by any word counts or length requirements.

5. Fact-check and proofread

Get another set of eyes on the application to ensure nothing was overlooked, preferably someone with grant writing experience. Spelling errors, misrepresentations, and room for interpretation could all sway a grantor from accepting your proposal.

6. Educate yourself

For those interested in learning the latest nonprofit grant writing practices, USD offers a 100% online course focused on the step-by-step process of grant preparation, organization, and detailed evaluation. This course is best suited for nonprofit professionals and volunteers of all levels, including CEOs, executive directors, grant writers, and fundraising coordinators.

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Grant Writing Do’s & Don’ts

It’s probably clear by now that there are certain actions that will improve your chances of obtaining grant funding or quickly eliminate you from consideration. Here’s a simple breakdown of some of the most common habits to consider (and to avoid) when grant writing.

How do I know if I should apply for a grant?

Start by taking a close look at your organization’s circumstances — financial and otherwise — to evaluate exactly what areas need support. This will allow you to seek grant opportunities that are the right fit, also helping to ensure that you’ll stand out from other applicants.

Where do I find grant opportunities?

Resources like Grants.gov , Candid.org , and the Council on Foundations have searchable databases of grant opportunities. Consult your local network as well to learn about any community resources that might be available.

What are grant writing best practices?

Being prepared with facts and figures to prove your organization’s needs is important. Communicating clearly, knowing the latest industry trends, and setting yourself apart are also best practices when it comes to grant writing.

Where do I learn how to write a proposal for funding?

Courses such as USD’s online Nonprofit Grant Writing are incredibly useful to stay up to date on the latest, most effective methods. Students learn how to identify grant opportunities, step-by-step processes of grant preparation, how to integrate budgeting, and more.

What makes a grant proposal stand out?

Get specific during the grant writing process about how you will use grant funds and what beneficial outcomes are imminent. Make the grantor connect with your cause, even if this is the first time they’re learning about what you do. Include standout stories and examples to paint a clear picture of your circumstances.

What are some common mistakes in grant writing?

All too often, grant proposals include unrealistic asks, industry buzzwords that lack real meaning, and too much room for interpretation. Instead, it’s best to be as straightforward as possible and make clear what good you will be able to achieve with grant funding.

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Writing a Business Proposal Letter for Funding

If you’re seeking funding for your business, a well-written business proposal letter can be an effective way to convince investors, banks, or other financial institutions to invest in your venture.

In this article, we’ll walk you through the steps of writing a business proposal letter for funding, and provide you with a template to get started.

Step 1: Research and Preparation

Before you start writing your business proposal letter, it’s important to do your research and preparation. This includes identifying potential investors or lenders and learning about their investment criteria and preferences. 

You’ll also need to have a clear understanding of your business and its financial needs, as well as your plan for using the funds.

Step 2: Outline Your Proposal

Once you have done your research, it’s time to outline your proposal. This should include a summary of your business and its financial needs, as well as a detailed plan for using the funds. 

It’s important to make sure your proposal is clear and concise, and that it highlights the key benefits of investing in your business.

Step 3: Write Your Proposal Letter

Now that you have your proposal outlined, it’s time to write your letter. Your business proposal letter should be addressed to the appropriate person or organization and should include an introduction, body, and conclusion.

Introduction

In your introduction, you should start by introducing your company and explaining why you’re seeking funding. Be sure to explain why you believe your business is a good investment opportunity and what sets it apart from competitors.

The body of your proposal letter should include the details of your proposal. This should include information about your business and its financial needs, as well as your plan for using the funds. 

Be sure to provide specific examples of how you will use the funds to grow your business and increase its profitability.

In your conclusion, you should summarize the key points of your proposal and restate why you believe your business is a good investment opportunity. 

You should also include a call to action, encouraging the recipient to take the next steps to move forward with your proposal.

Step 4: Edit and Revise

Once you have written your proposal letter, it’s important to edit and revise it to ensure it is clear, concise, and error-free. You may also want to have someone else read over your letter to provide feedback and suggestions for improvement.

Business Proposal Letter for Funding Template

Here’s a template to get you started on writing your business proposal letter for funding:

[Your Company Letterhead]

[Recipient’s Name and Address]

Dear [Recipient’s Name],

I am writing to request funding for [Your Company Name]. We believe that our business has significant growth potential, and we are seeking financial support to help us reach our goals.

[Body Paragraph 1: Introduce Your Company] [Body Paragraph 2: Describe Your Business and Its Financial Needs] [Body Paragraph 3: Outline Your Plan for Using the Funds] [Body Paragraph 4: Provide Specific Examples of How You Will Use the Funds]

We believe that investing in [Your Company Name] is a sound investment opportunity that will provide a strong return on investment. We would be happy to provide additional information or answer any questions you may have.

Thank you for your consideration, and we look forward to hearing from you soon.

[Your Name] [Your Title] [Your Contact Information]

Step 5: Include Supporting Materials

In addition to your proposal letter, you may want to include supporting materials such as financial statements, market research, or testimonials from satisfied customers. 

These materials can help to provide further evidence of the potential success of your business and can give the recipient more confidence in your proposal.

Step 6: Follow Up

After sending your proposal letter, it’s important to follow up with the recipient to ensure they received it and to answer any questions they may have. 

This can help to keep the lines of communication open and increase the chances of a successful investment.

Tips for Writing an Effective Business Proposal Letter for Funding

  • Be clear and concise: Avoid using jargon or technical terms that the recipient may not understand. Use simple language and keep your letter to one or two pages.
  • Highlight the benefits: Make sure to clearly explain the benefits of investing in your business and how it fills a need in the market.
  • Customize it: Tailor your proposal letter to the specific recipient and their investment criteria. Show that you have done your research and understand their goals and interests.
  • Be professional: Use a professional tone and format for your letter, and make sure to proofread it for errors before sending.

Writing a business proposal letter for funding can be a challenging task, but by following these steps and using our template, you can create a compelling proposal that showcases the potential success of your business and its growth potential.

Remember to do your research, outline your proposal, and follow up with the recipient to increase the chances of a successful investment.

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How to Create a Business Proposal for Funding

business proposal for funding

Creating a business proposal for funding is something that all kinds of organisations need to do at some stage. Funding is necessary for small business development and putting certain projects into action. Without funding, organisations can’t achieve their goals and mission.

Putting together a funding proposal needs to be a carefully planned process. These proposals need to be laid out in the right format, they need to address the right topics, and provide the specific information that funders are looking for. In this guide, we’ll cover everything you need to know about funding proposals, and how to create one the right way.

What is a Proposal for Funding?

A proposal for funding is a document that requests money for a certain project. There are many reasons why businesses need funding, and so a business proposal for funding is used to help secure this. The proposal could be sent to private investors, banks, or part of a grant request.

A business proposal for funding includes everything a potential investor or donor will need to know about the project. This includes an overview of what the business or project is about, why it is important, what the funding will be used for, and possibly how investors could get a return.

Funding proposals are also often used by non-profits to attract donations. Funding proposals are different to business plans in that they solely focus on a specific funding request. While a business plan provides an overview of the entire business, a business funding proposal is more specifically related to an individual request for funding.

How Do You Write a Funding Proposal for a Business?

When writing a business proposal for funding, it is important to include every detail a potential investor or donor would need to know. This should include the following:

  • Overview: The proposal will need to include an overview of the funding request or project. This should provide a quick summary of everything the proposal will cover, including the overall mission and purpose of the project or business.
  • Organisation overview: An overview of your organisation/business. This should include what your business does, what it’s all about, what its background looks like, and an overview of the organisation’s management and staff.
  • Funding details: This is where you go into more detail about the business proposal for funding. This should explain what the project/funding proposal will look like. It should include an overall goal and purpose of the project, and a plan of action to follow once funding has been obtained. This should include any other important details, like a timeline of the project, how it will be assessed, and what communication with stakeholders will look like.
  • Support documents: When writing a funding proposal, it’s important to also include any supporting documents that could support your proposal. This could include things like copies of your financial statements or the constitution of the organisation.

How Do I Write a Funding Proposal Letter?

There are six important steps, or elements, to include. These are:

  • A formal header for the letter
  • An introduction to your organization
  • An overview of your project, explaining the purpose of the project
  • An explanation of why you require funding
  • An explanation of what kind of impact the funding could have
  • A formal closing statement

A funding proposal letter should cover these steps in order. The letter should include all necessary information while remaining concise and to the point.

What Do Funders Look for in a Proposal?

When reading a business proposal for funding, funders want to know exactly where their contributions will go and what will be achieved with them. This means the funding proposal should outline very clear objectives, or goals. These should be realistic, they should clearly address a problem, and they need to be measurable.

The proposal should also outline the specific actionable steps the organisation will take to achieve these objectives, and define how the funding will be used in these steps. Funders will want to see that these objectives are measurable so that they can know exactly what kind of impact their contributions will make.

Knowing how to create a business proposal for funding is necessary for any organisation that needs to ask for funds. This is important for business development and operating certain projects.

Follow the steps above, and make sure to include the right information in your funding proposal. As long as you highlight and cover all of the important details, gaining funding from your proposal will be a much easier process.

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    Here are the four parts, in order: simply 1) introduce yourself; 2) show that you understand your customers/clients and their needs; 3) describe how your goods and services meet those needs and present your expected expenses and profits; and 4) persuade the bank or committee that you have integrity and can be trusted with the money.

  20. How to Write a Winning Grant Proposal & Secure Funding

    How to Write a Grant. These six steps will help you create a strong grant proposal, increasing your chances of achieving the funding and recognition that can drive your organization forward. 1. Prepare. Dedicate ample time to analyzing your needs, including what areas of your organization will benefit from grants, exactly how much funding is ...

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  23. Writing a Business Proposal Letter for Funding

    Here's a template to get you started on writing your business proposal letter for funding: [Your Company Letterhead] [Date] [Recipient's Name and Address] Dear [Recipient's Name], I am writing to request funding for [Your Company Name]. We believe that our business has significant growth potential, and we are seeking financial support to ...

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