A Guide For Writing A Funding Proposal

A Guide For Writing a​ Funding Proposal
No guide for writing a​ funding proposal would be complete without cautioning that a​ business looking for funding cannot do so without also presenting a​ completed business plan. ​
Every lender,​ whether bank or​ other financial institution,​ venture capitalist,​ or​ private individual,​ will want to​ see the​ firms business plan in​ addition to​ the​ project detail. ​
Theyll want to​ know the​ companys mission,​ its goals,​ its steps to​ achieving those goals,​ its products and​ services,​ its available resources,​ the​ market,​ the​ competition,​ and​ your firms competitive edge. ​

The business plan that accompanies the​ funding proposal you write and​ present should also include the​ owners or​ officers and​ all major players such as​ executives and​ others instrumental in​ the​ day to​ day workings of​ the​ company. ​

If youre new to​ writing a​ funding proposal a​ guide is​ essential,​ whether a​ written brochure or​ publication,​ online assistance,​ or​ a​ counselor at ​ the​ local small business development center. ​
SCORE,​ the​ Service Corps for Retired Executives,​ is​ another topnotch resource that can guide you through writing a​ funding proposal. ​
The volunteers are all retired executives and​ other experts who have been where you are and​ have succeeded. ​

In addition to​ the​ standard documents that the​ bank or​ credit union will require for the​ loan application,​ the​ lender also expects to​ see a​ written funding proposal when you apply for the​ loan. ​
Rather than looking at ​ writing a​ funding proposal as​ a​ tedious chore,​ look at ​ it​ as​ the​ guide for your lender to​ see just how exciting,​ promising and​ profitable your idea and​ firm could be and​ what an opportunity they have to​ be a​ financial part of​ your great venture. ​

Give your funding proposal a​ zippy but clear title,​ then talk about the​ overview of​ the​ project youve planned,​ supplying background information on​ the​ problem as​ you see it,​ the​ details of​ the​ project that will solve the​ problem,​ what resources you have available and​ what resources youll need to​ get the​ job done,​ what staff and​ administration help you have and​ what else you might need,​ the​ facilities available for your project and​ any that youll need to​ lease or​ buy in​ addition,​ any supplies or​ equipment or​ personnel that will be added,​ and​ any communication capabilities or​ requirements that are pertinent. ​
Present a​ budget for your project. ​

Step by step,​ you should....
* Write a​ cover letter with your funding proposal,​ both as​ an enticement to​ read the​ proposal and​ a​ guide to​ what will be found in​ the​ funding proposal pages. ​
Included in​ the​ cover letter,​ besides the​ title,​ are a​ brief introduction to​ your firm,​ the​ purpose of​ the​ loan and​ the​ amount of​ money you are requesting. ​

* the​ funding proposal should begin with the​ company name,​ address,​ and​ contact information such as​ phones and​ emails. ​
Here should also be the​ names,​ titles and​ social security numbers of​ all the​ principals,​ the​ reason for the​ loan,​ the​ amount requested and​ details of​ what you will be doing with the​ money including the​ equipment and​ supplies purchase,​ perhaps the​ lease of​ new facilities,​ the​ resources now available,​ the​ staff that might be added,​ and​ the​ administration personnel that will oversee the​ project. ​

* Next offer extensive details about the​ firm,​ including any previous projects and​ performance,​ clientele,​ overall goals and​ objectives,​ unique aspects of​ the​ firm and​ the​ ownership and​ legal structure. ​

* Background information is​ next,​ with details about the​ company budget,​ as​ well as​ the​ project budget,​ the​ market and​ the​ competition,​ and​ your firms standing among the​ competition. ​
Details on​ the​ current clientele as​ well as​ an evaluation plan for determining the​ companys overall financial and​ competitive health and​ for that of​ the​ project itself should be included as​ well. ​

* All key personnel should be profiled,​ including their education,​ the​ accomplishment both as​ a​ firm member and​ prior,​ as​ well as​ their qualifications. ​
Along with background information and​ a​ budget for the​ project,​ you should provide all information and​ documents about the​ last three years of​ the​ companys operations. ​
if ​ not in​ business that long,​ provide the​ financial statements including balance sheets and​ income statements that you have. ​
Collateral should be pledged for the​ funding. ​

* Written communication is​ a​ crucial part of​ your funding proposal and​ someone should guide you through the​ process by proofreading the​ materials,​ to​ check for spelling,​ grammar,​ factual accuracy and​ overall quality of​ presentation. ​

Any time you apply for a​ loan,​ whether the​ details of​ the​ needed resources,​ the​ project overview,​ the​ statement of​ the​ problem,​ and​ the​ budget are already in​ the​ application or​ the​ cover letter,​ you should still submit a​ funding proposal as​ an overall guide to​ the​ loan officer and​ other funding decision makers.

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