Tips to Create a Capital Investment Proposal
There are so many ways that you can do to get capital investment. The most popular way to get capital is probably getting a loan from the bank. However, complicated regulations and high-interest rates can ruin your business. This is why most businessmen today avoid getting capital from banks. They prefer to look for investors who are willing to invest in their businesses.
But, inviting investors to invest in a business requires a proper proposal. Below are the tips to create a capital investment proposal.
How to Create a Capital Investment Proposal
Below are the steps that you can follow to propose.
- Introduction Chapter
Creating an introduction chapter is important so that the investor will be able to know the background of the business you are running. In the introduction chapter, mention the vision and mission of your company or business and future goals that will be reached. The introduction chapter is like convincing the investor that he will not be at a loss of investing in your company.
- Company’s Profile
Once you have created the introduction chapter, shortly create your company’s profile. 3 points should be written in the profile, which are kind of business, the name of your company, and the location. It is important so that the investor will be able to know what kind of business you are running and where it is headquartered.
- Organizational Structure of the Company
Every legal company has an organizational structure either you own or with a system or team that runs your company. It can also be made between the owner and employees. If your company already has a good organizational or managerial structure, then mention the company’s CEO, manager, human resources development, and so on.
- Company’s Products
Every company surely has products or services sold. When you are writing the products of your company, make sure the kind of product sold, product manufacturing, and also product excellence. The investor will want to know how your company’s products are manufactured and the benefits compared to the same products from other companies.
- Create a Target Market
Target market is an important point in the proposal making. So, always mention it in the proposal so that your investment will be able to know your target market. You can create your target market based on jobs, wages, regions, or cities. If you mention your target market in your capital investment proposal, it will be a plus point.
- Marketing Chapter
In the marketing chapter, you need to explain further about the marketing strategy of your company. Explain how you will promote your business so that investors will easily analyze the profit that they will get.
- Financial Report
The next important thing that you should not miss is transparent and detailed financial reports. Here, you need to create a budget allocation that your company needs. Then, create a profit calculation scheme that can be reached. And last, make a profit-sharing calculation system. This way, investors will know how much money they should invest and how much profits they can get.
