Answer to #1
A business plan is another form of proposal. A business plan is necessary when you want to start your own business. A business plan is critical for securing financial support of any kind. Such a plan also ensures that you have done your homework and know what you are doing in launching your business. It provides you with a detailed road map to chart a course to success.
Letter of transmittal: Provides contact information for all principals and explains your reason for writing. If you are seeking venture capital or an angel investor, the transmittal letter may become a pitch letter. In that case you would want to include a simple description of your idea and a clear statement of what's in it for the investor. The letter should include a summary of the market, a brief note about the competition, and an explanation of why your business plan is worthy of investment.
Mission Statement: Explains the purpose of your business and why it will succeed.
Executive Summary: Highlights the main points of your business plan and should not exceed two pages. It should conclude by introducing the parts of the plan and asking for financial backing.
Table of Contents: Lists the page numbers and topics included in your plan.
Company Description: Identifies the form of your business (proprietorship, partnership, or corporation) and its type (merchandising, manufacturing, or service). For existing companies, describes the company's founding, growth, sales, and profit.
Product or Service Description: Explains what you are providing, how what you are providing will benefit customers, and why what you are providing is better than existing products or services.
Market Analysis: Discusses market characteristics, trends, projected growth, customer behavior, complementary products or services, and barriers to entry. Identifies your customers and how you will attract, hold, and increase your market share. Discusses the strengths and weaknesses of your direct and indirect competitors.
Operations and Management: Explains specifically how you will run your business, including location, equipment, personnel, and management. Highlights experienced and well-trained members of the management team and your advisors.
Financial Analysis: Outlines a realistic start-up budget and presents an operating budget. Explains how much money you have, how much you will need to start up, and how much you will need to stay in business.
Appendices: Provide necessary extras such as managers' rsums, promotional materials, product photos, sales forecasts, personnel plans, anticipated cash flows, profits and losses, and balance sheets.
Answer to #2
C
Answer to #3
Copy of the RFP: A copy of the request for proposal may be included in the front matter of a formal proposal. Large organizations may have more than one RFP circulating, and identification is necessary.
Letter of Transmittal: Addresses the person who is designated to receive the proposal or who will make the final decision, describes how you learned about the problem or confirms that your proposal responds to the enclosed RFP, presents the major features and benefits of your proposal, and mentions the time limit for which the bid stands.
Abstract or Executive Summary: Provides a brief summary of the proposal's highlights.
Title Page: Includes the title of the proposal, the name of the client organization, the RFP number or other announcement, the date of submission, and the author's name.
Table of Contents: Includes all headings and their beginning page numbers.
List of Illustrations: Includes each figure or table title and its page number.
Appendix: Contains ancillary materials of interest to some readers.
Answer to #4
E
Answer to #5
Proposals are written offers to solve problems, provide services, or sell equipment. Some proposals are internal, often taking the form of justification and recommendation reports. Most proposals, however, are external.
Proposals may be divided into two categories: solicited and unsolicited. When firms know exactly what they want, they prepare a request for proposal (RFP) specifying their requirements. Government agencies, as well as private businesses, use RFPs to solicit competitive bids from vendors. Most proposals are solicited. Enterprising companies looking for work might submit unsolicited proposals, which are offers to solve problems or provide products or services.
Informal proposals have the following six parts:
Introduction: Explains the reasons for the proposal and highlights the writer's qualifications. May also provide a hook to make the proposal more persuasive.
Background, Problem, and Purpose: Identifies the problem and discusses the goals or purposes of the project. If the proposal is unsolicited, it convinces the reader that a problem exists. If the proposal is solicited, it persuades the reader that you understand the problem completely.
Proposal, Plan, and Schedule: Discusses your plan for solving the problem, what you propose to do, and how it will benefit the reader. It may include a schedule of activities or timetable showing when events will take place.
Staffing: Describes the credentials and expertise of the project leaders. It may also identify the size and qualifications of the support staff, along with other resources such as computer facilities.
Budget: Presents a list of proposed project costs.
Authorization Request: Requests approval or authorization and reminds the reader of key benefits. It might also include a deadline beyond which the offer is invalid.
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