How Do You Write an Investment Proposal?

How Do You Write an Investment Proposal?

To write an investment proposal, create a written pitch that clearly states the value that investors can receive from the proposal, how resources are to be used and any other important relevant information. It should also include a detailed account of the business or project, an estimation of the returns on investment and a schedule.

An investment proposal is similar to a business plan. Like a business plan, it is a written document that outlines the nature and needs of the business; however, it is designed specifically for attracting investors to finance the business.

There are several sections involved in an investment proposal. It should start with an executive summary, which should be clear, concise and grab investors' attention. It should clearly demonstrate the value to investors, how much return they can get for their investment and how their interests will be protected.

An investment proposal should include detailed sections on the nature of the business, the environment of the industry involved, financial structures and requirements, financial plans, statements and valuation estimates, plans of operation, how the business plans to create value for investors and a call to action. Other helpful information can include government regulations relevant to the business, information about marketing and sales systems and the management structure in place. Business owners should be sure to make their proposals clear and easy to follow so that investors can easily find sections of interest to them.

Business owners should not forget to thank potential investors. They should also demonstrate passion for the project or business.