Business Proposal

CONTENTS about Business Proposal

In the first page you will be introduced about the contents of Business Proposal

1. TITLE PAGE
2. EXECUTIVE SUMMARY
3. BRIEF DESCRIPTION OF PROJECT & PRODUCTS
4. CRITICAL FACTORS
5. INSTALLED AND OPERATIONAL CAPACITIES
6. GEOGRAPHICAL POTENTIALS FOR INVESTMENT
7. PROJECT COST SUMMARY
8. PROJECT ECONOMIC
9. PROJECT FINANCING
10. PROJECT COST
11. SPACE REQUIREMENT
12. OFFICE EQUIPMENT
13. HUMAN RESOURCE REQUIREMENT
14. REVENUE DETAI
15. LOAN REQUIREMENT SUMMARY
16. LOAN RECOVERY SCHEDULE

Business Proposal

NAME OF BUSINESS: ________

BUSINESS ADDRESS: —————-

NAME OF PROMOTER: —————-

NIC NO: ———————-

Mobile : —————–

EXECUTIVE SUMMARY

The main purpose of developing this Business Proposal is to avail or hunt a grand to initiate/extend a running business. The owner of the business (Title)————– has been running this business for the last twenty years and got enough experience and prominent good wheel in the market. During this period the owner has earned a good amount of profit. Owner has a wide range of linkages with many customers.

Seeing the increasing demand and the profitability the owner has a grand plan to expand business operations with a good investment. Keeping in view the owner has decided to expand the business activities and operations by providing retail and whole sale services.

Therefore, in the light of above mentioned background, this proposal is being submitted in the honor of esteemed financial organization “(Financial Supporting Organization Name)” with the core purpose to boost up the capital of a running business deals in (ideal business/Product) items in the main market, of city(Name)…. which is the most effective business center and became the hub for all sorts of business activities.

The outlet is proposed to cater to the demand of (Proposed Product) items, belonging to middle and lower middle income groups. The demand for proposed items is constantly rising as per with the fast growth of population and abrupt change in life style of people. The consumers are becoming increasingly quality cognizant and looking for products offering value for money.

This tendency has led to quality products across (region name where you operate your business). The focus of the business would be to make available all sorts of crockery items and some other kitchen related innovative gadget and imported products at reasonable prices.

The total project cost for setting up ‘(Title of your Business) retail outlet is estimated at (amount…. Million) out of which (amount..)is capital cost and(… )working capital. This business will provide Employment opportunity to (number of employee) individuals including the owner/manager. The outlet will remain operational for 14 hours per day.

BRIEF DESCRIPTION OF PROJECT & PRODUCT

This document provides information about a running business with the title “(Title of Business)” Retail Outlet. It involves purchase of crockery items and variety of various products from any manufacturer from …… and other cities and selling it through retail outlet, operations in a rented premise, under a brand name, (title of business)” in main market of (city name) for last … years.

Many (item name) supply business also sell a combination of various brands productions and supplies. During the past few years, we experienced that supply of (products) materials, has been an increasing demand and gives a good profit. Indeed, innovation in the company products varies with the passage of time and modernization, the (Product) group products are introduced with quality improvement requires expensive and needs in huge volume.

Furthermore, the bulk purchase and consistent supply requires huge investment to compete in the fast growing competitive market. If industry competition and market awareness are not considered as formal barriers to this business it may pose a threat to the business. Therefore, the entrepreneur need to overcome the threat and challenges of the business. The followings are some important factors.

First of all in response to the ever-growing demand for items sold in such businesses, it needs to either opening additional shops thereby creating chains of shops across different locations or increasing mobile supply services. Secondly, improving the quality of retail services by making it fast, which needs additional human resources. Thirdly, Improving marketing strategy for attracting more clients;

Furthermore, it is very fundamental, Offering good quality and huge quantity of supplies to meet clients’ needs.
Then, Spending time and money wisely in the process of site selection is very important aspect for the success of business.

In addition, Offering required quality and quantity of products is another aspect of survival of business in the competitive market. Our business is offering a good range of products under one roof to facilitate the clients and fulfill their needs. the following products are offered to general public:

Exactly, the retention of experienced employees is another important factor for the profitability of the business. The owner of the business has good association with the business for last twenty years and obtained good experience of customer dealing and marketing. The owner will continue to work as Manager. Besides the Manager two skilled persons have been hired.

Marketing:

Of course, advertising and marketing of the products is another key factor for attracting large number of customers inside and outside the business location.

We have well advertised and running business during the last twenty years of operations while further marketing will be done through placing banners, publishing pamphlets and advertising on local cable networks to reaching out as many customers as possible, particularly to expand the business outside the business center.
We have analyzed our business by using SWOT (Strength, Weakness, Opportunities and Threat) analysis tools and identified the following:

Strength:

i. Easy access to all customer because our the location of our outlet is in front of main road;
ii. We have trained team and technically sound members;
iii. We are local entrepreneur so it is great advantage for us
iv. we have good links in the market;
v. our company offers very flexible payment options such as cash payment, bank transfer option, cheque payment.

Weakness:

o Our marketing strategy in the past showed below the required standard and many hinder us accessing other markets

Opportunities:

Indeed, the increasing number of general population is a golden opportunity in market because with the passage of time population increase at multiple level. Furthermore, the needs of public goes higher automatically. Secondly, increasing the trend of construction of houses, buildings with the rapid growth of population is at high track.

Threat:

i. A potential threat impacts economic downturn of the business.
ii. Coping with highly competitive market;
iii. Retention of quality staff is again a threat;
iv. Change in prices in the high volatile situation.

CRITICAL FACTORS you need to consider while developing Business Proposal

First of all you need to develop strong linkages with suppliers for sourcing good quality product at competitive prices because in an existing market you are going to establish a new business setup. Secondly, the efficient management of stock is very important to keep inventory cost at the minimum. Thirdly, selection of a central location plays significant role in growth of business so, keeping in mind the target market. Fourthly you need to remain updated about the latest market trends. Fifthly, induction of trained sales personnel for efficient customer handling is very important. Finally, the you need to set day to day strategy to compete the strong competition in the prevailing market.

INSTALLED & OPERATIONAL CAPACITIES

The income will depend on seasonal sales and ability of the venture to attract customers through quality and price incentives. Experienced and efficient sales staff also plays a critical role in determining the sales revenue of the business.

GEOGRAPHICAL POTENTIAL FOR INVESTMENT

Discus about the exact location where you are going to establish your business (title of Business’ shop is the most populated area. Customers have an easy access to the outlet.

PROJECT COST SUMMARY

Develop a detailed financial summary to analyze the commercial viability of (Title of business) Retail Outlet in the area under the Business Loan scheme by (bank name). Various cost and revenue related assumptions along with results of the analysis are outlined in this section. Lastly, the projected Income Statement, Cash Flow Statement and Balance Sheet are necessary.

Project Economics

The following table shows internal rate of return and payback period.

Indeed, returns on the investment and its productivity are highly dependent on the competency of the entrepreneur in selecting the appropriate business location, hiring trained sales persons and maintaining good quality services. these all important points must be reflected in your Business Proposal

Project Financing
Make table which provides details of the equity required and variables related to bank loan

Project Cost

Develop a project cost table

Furniture and fixture is required for display of items and storing of stock. Office equipment such as computer, printer, TV and air conditioner are essential for routine business operations and for giving a professional outlook to attract customers and achieve customer satisfaction.

Space Requirement
Indeed you need a wide space for your business therefor, Make a detailed table about space requirements

Office Equipment
Computers are necessary for routine office operations and record maintenance, similarly, bar-code reader and inventory management software is necessary for keeping track of inventory and for ease of reference for both customer and owner.

Human Resource Requirement

The above table provides details of human resource required in the 1st year to run this project. Estimate to increase salary at 10% annually.

Revenue Generation

Note:
This section will provide you with indicative figures of a possible loan repayment schedule. Therefore, you must keep it in your mind that the user receives an official repayment schedule from the loan sanctioning bank. Furthermore, entries in this template that are marked in red indicate manual entries, i.e. are changeable. You can change these numbers as per requirement.

Required Loan Summary:

Requirements
Loan Amount 1,500,000
Mark-up per Year 24%
Loan Tenure (Years) 5
Payment Type (Select one) Monthly
Grace Period 1 Year
(Select one)

Loan Overview
Grace Period (Instalments) –
Payments per year 12
Number of Payments 60
Total Interest Paid 1,089,117
Total Loan Amount Repaid 2,589,117

Loan Recovery Schedule

Do not forget to include a well planned loan recovery schedule in your Business Proposal

Installment	Opening Balance	Instalment	Principal	Interest	Closing Balance
1	1,500,000	43,152	13,152	30,000	1,486,848
2	1,486,848	43,152	13,415	29,737	1,473,433
3	1,473,433	43,152	13,683	29,469	1,459,750
4	1,459,750	43,152	13,957	29,195	1,445,793
5	1,445,793	43,152	14,236	28,916	1,431,557
6	1,431,557	43,152	14,521	28,631	1,417,036
7	1,417,036	43,152	14,811	28,341	1,402,225
8	1,402,225	43,152	15,107	28,044	1,387,117
9	1,387,117	43,152	15,410	27,742	1,371,708
10	1,371,708	43,152	15,718	27,434	1,355,990
11	1,355,990	43,152	16,032	27,120	1,339,958
12	1,339,958	43,152	16,353	26,799	1,323,605
13	1,323,605	43,152	16,680	26,472	1,306,925
14	1,306,925	43,152	17,013	26,139	1,289,912
15	1,289,912	43,152	17,354	25,798	1,272,558
16	1,272,558	43,152	17,701	25,451	1,254,857
17	1,254,857	43,152	18,055	25,097	1,236,802
18	1,236,802	43,152	18,416	24,736	1,218,386
19	1,218,386	43,152	18,784	24,368	1,199,602
20	1,199,602	43,152	19,160	23,992	1,180,442
21	1,180,442	43,152	19,543	23,609	1,160,899
22	1,160,899	43,152	19,934	23,218	1,140,965
23	1,140,965	43,152	20,333	22,819	1,120,633
24	1,120,633	43,152	20,739	22,413	1,099,893
25	1,099,893	43,152	21,154	21,998	1,078,739
26	1,078,739	43,152	21,577	21,575	1,057,162
27	1,057,162	43,152	22,009	21,143	1,035,153
28	1,035,153	43,152	22,449	20,703	1,012,704
29	1,012,704	43,152	22,898	20,254	989,807
30	989,807	43,152	23,356	19,796	966,451
31	966,451	43,152	23,823	19,329	942,628
32	942,628	43,152	24,299	18,853	918,328
33	918,328	43,152	24,785	18,367	893,543
34	893,543	43,152	25,281	17,871	868,262
35	868,262	43,152	25,787	17,365	842,475
36	842,475	43,152	26,302	16,850	816,173
37	816,173	43,152	26,828	16,323	789,344
38	789,344	43,152	27,365	15,787	761,979
39	761,979	43,152	27,912	15,240	734,067
40	734,067	43,152	28,471	14,681	705,596
41	705,596	43,152	29,040	14,112	676,556
42	676,556	43,152	29,621	13,531	646,935
43	646,935	43,152	30,213	12,939	616,722
44	616,722	43,152	30,818	12,334	585,905
45	585,905	43,152	31,434	11,718	554,471
46	554,471	43,152	32,063	11,089	522,408
47	522,408	43,152	32,704	0,448	489,704
48	489,704	43,152	33,358	9,794	456,347
49	456,347	43,152	34,025	9,127	422,322
50	422,322	43,152	34,706	8,446	387,616
51	387,616	43,152	35,400	7,752	352,216
52	352,216	43,152	36,108	7,044	316,109
53	316,109	43,152	36,830	6,322	279,279
54	279,279	43,152	37,566	5,586	241,713
55	241,713	43,152	38,318	4,834	203,395
56	203,395	43,152	39,084	4,068	164,311
57	164,311	43,152	39,866	3,286	124,445
58	124,445	43,152	40,663	2,489	83,782
59	83,782	43,152	41,476	1,676	42,306
60	42,306	43,152	42,306	846	0

Name of Entrepreneur: ——

Date: __

Signature: ___________

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