Do I need to write a Business Plan and a prospal letter to get my business started?

Question

Does the business plan include a prospal letter, or do you need both, if your requesting grants, loans, or a financial jump start. What's the difference between your business plan and or your prospal letter, Is it telling the needs and requesting the needs?

Answer 1

Do both - not only is it good for the grants and loans but it also helps you to clarify what you plan to do and the time frames. I started my business in January with the help of a government loan and we had to do a proposal letter, a business plan, a projected cash flow and many other documents that have proved very helpful to me in operating my small business. If you live in Canada, you can apply for the same grant - it's called the Self Employment Benefits plan, and is run by the Employment Insurance office. They give you great training (two weeks in class) and tons of support, as well as close to $13,000 over 8 months that you do not have to repay. You can also apply for loans up to $5,000 to get off the ground.

Good luck!

Answer 2

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Answer 3

The best routes to take are to research the process of starting a business as well as the industry you're interested in.

I recommend checking out the SBA, Entrepreneur, The Start Up Journal & Nolo. All 4 are great informational resources for the new/small business owner. I posted links for you in the source box.

Research, research, research – this cannot be stressed enough. Read as much as you can. Here are some book titles that are relevant:

* Writing a Convincing Business Plan by Arthur R. DeThomas Ph.D., Lin Grensing-Pophal
* The Definitive Business Plan: The Fast Track to Intelligent Business Planning for Executives and Entrepreneurs (2nd Edition) by Richard Stutely
* The Complete Book of Business Plans: Simple Steps to Writing a Powerful Business Plan (Small Business Sourcebooks) by Joseph A. Covello
* The One Page Business Plan with CD-ROM by James T., Jr. Horan

There are plenty of free informational resources out there. Check the source box for links to articles.

Hope that helps! I wish you much success & happiness in all your ventures!

Answer 4

The Business Plan details the steps you will take, where(location)what type of business, monies needed to establish this business, your goals for the year /up to 5 years etc. the Proposal letter is a concise , short version but enough to give the lending facility why you want the loan and assurance how you'll be able to repay-why the Business Plan is important for it will get or not get your loan.

Answer 5

A business plan will be very helpful for you to assess all that is involved in the day to day operations and fixed and variable costs.
You need to assess what your monthly costs will be - rent, labor, material, phone, accounting, licenses, interest on borrowing... etc... so that you can assess how much sales you will require to make the business a viable business.
Sometimes a thorough plan might reveal that if you invest your seed money in a safe investment, you might get a better return (you have to consider value of the time you are going to invest in the business).
As far as proposal is concerned, if you need to borrow funds, the lending institution might require one.
After all it is said that people don’t plan to fail but fail to plan. Put your plan on paper and update periodically as you start to find small and big successes.

Answer 6

If you are getting financial backing especially from a bank you would need a proposal( an idea that would inspire someone to join forces with you in making money). Then once the idea is accepted you would need a business plan ( showing the projected pro and cons the 5 year gain or lost estimates). talk to the small business experts in your town.

Answer 7

It all depends on what your business may be and your potential source of funds. Best thing to do is ask your potential funding source what type of information they require. They may even have a template for you. In general, however, it is a good idea or you to have a business plan -- even if you all you do is use it for yourself. The plan will document your goals, you step by step plan, your competition, you financial and resource needs, your risk and your expected return on investment. All of these are good for you to know, and critical for any potential investor.

Answer 8

Not unless your going to a lender for a loan to strart your business. Otherwise, write a rough draft of a business plan so that you can use it to keep you on course.

Answer 9

Since it's a proven fact, that many businesses fail in their very first year. I suggest you take "business courses 101." So you won't end up, the very same way, plus having to pay back the "loan." <}:-})

Answer 10

it's a good way to set goals for your business, and you can change it as your business grows