How to Write a Business Proposal That Attracts Investors

It’s common for companies to write business proposals to attract potential sponsors and investors. Convincing them to invest in your company through a business proposal can be tough. So, writing such text pieces is a serious job.

There are many factors you need to consider to write a persuasive proposal to win over financiers. With this in mind, we have made a list of some handy points that can go a long way toward helping you write an effective business proposal.

How to Write Attractive Business Proposals

A business proposal is a multi-page document describing your business purpose and goals, often crafted for potential investors. A well-written proposal can do wonders in attracting funding and investors. Consider the below points to craft an ideal proposal:

Gather All the Information About Your Company

You should be well aware of everything directly and indirectly associated with your business operations. It will help you decide what information to include in your business proposal.

• Go through all your business documents (which can be reports, financial statements, annual reports, etc.)
• Shortlist the key info that you think would be worth mentioning
• Find and gather authentic stats/studies/reports to support your claims (For example, if your business is to sell eco-friendly appliances, you can refer to veritable stats laying stress on why we should switch to eco-friendly products.)

When you have a clear picture of your company, you will write only what matters without adding unnecessary stuff that might distract potential investors.

Study the Potential Investors

This is important! There will be no use if your business proposal doesn’t cater to the needs of your potential investors. You can only address their needs when you have a true understanding of their likes and dislikes. So, it’s necessary to examine your target audience first. The following points may be helpful:

• Conduct your research to find and shortlist your potential investors (taping into the online platforms/forums they use frequently can prove useful).
• Study your competitors to figure out what type of investors they target 
• Determine what your potential financers find motivational
• You can also use AI in product research to find out details about your competitor’s products and their special features and understand why their investors invest in it

Treat yourself as your potential investor and write in a way that convinces you. If your proposal doesn’t sound persuasive and inspiring to you, chances are that it won’t attract other investors too.

Go with a Proper Layout and Design

The outline of the business proposal can vary from one business to another. However, the basic parts remain the same, which include but are not limited to:

• Title page
• Table of contents
• Brief introduction of the company in Executive Summary (1-2 pages)
• A need statement (2-3 pages)
• Market analysis (1-2 pages)
• Legal information  (1-2 pages)
• Solution your business aims to offer (3-4 pages)
• Financial predictions and pricing info (2-3 pages)
• Deadlines (1 page)
• Explanation of the pertinent terms (1 page)
• Closing Remarks (1 Page)
• And so on…

In terms of design, your proposal should use a standard font like Cambria, Calibri, or Arial. Keep its size anywhere between 11 and 12. You should leave at least a 1-inch margin from all sides to ensure high readability. Make use of headings, bullets, tables, or numbers to give it a catchy look. Last but not least, be sure to incorporate videos, images, or other infographics to keep readers’ interest intact.

Pay Special Attention to the Executive Summary

It has been observed that most investors look at an executive summary to decide if they should continue reading the entire business proposal. If they find it unattractive, they are more likely to Say No to you (something that scares startups a lot).

An executive summary is the overview of your business. So, it should be concise and clear. You shouldn’t make it vague by adding unnecessary wording/information. Your aim should be to encourage angel investors and venture capitalists, such as Forum Ventures, Angelpad, and Village Global to invest in your company in short words.. To craft an appealing executive summary, you will need to:

• Grab the readers’ attention in the opening sentences by highlighting the problem and its solution your company aims to provide.
• Keep it concise as much as possible (going with a lengthy summary has been shown ineffective in turning heads)
• Mention only the key information that your potential investors may find informative

You can have someone else read it to find areas for improvement. There are also many AI writing assistants available online such as AI summarizer that can help add conciseness to your executive summary. Getting assistance from such tools may help you stay to the point, increasing your odds of grabbing investors’ attention.

Use the Formal Writing Tone

When it comes to the writing tone, your attitude should be polite and genuine. It shouldn’t sound commanding at all. Try to use a professional tone without using complex jargon or wording. Make sure your message is perceived correctly by the target audience.

You may want to adopt a writing tone that conveys:

• Authority
• Professionalism
• Sureness

Your writing tone should give readers the impression that whatever you’ve mentioned is genuine. Don’t use any wording that may have double meanings or that readers may find boring or rude. Your goal should be to convince them instead of sparking negative feelings about your business.

Don’t Set Unrealistic Goals/Projections

Abstain from making any exaggerated promises and quoting invalid projections/stats. It will do more harm than good. There shouldn’t be any ambiguity in your proposal. Write only what makes sense. Unrealistic goals and projections will ultimately damage your credibility as a business, causing problems for your future fundraising efforts.

Final Words!

A well-written business proposal can help you win over more investors. We have discussed some useful tips that can help you write an attractive proposal. You should have a clear picture of your company, find, and study your potential investors, use a proper layout and design, give special attention to the executive summary, use a professional writing tone, and abstain from setting unrealistic goals and projects.