A proposal is a formal suggestion or plan; for people to think about and decide on. It is an essential tool that shows professionalism in making a request. There is no particular format for writing a proposal it just depends on what that individual is writing at that particular moment. Appearance is one of the key factors that makes a good proposal. The second factor is Substance.
PURPOSE OF WRITING A PROPOSAL
1. The proposal provides an opportunity for an entrepreneur to present his idea to an investor.
2. It helps in marketing quality ideas to investors through the proposal.
3. The Proposal act as an appetizer that ignites the funder’s interest.
4. It creates an impression to venture capitalist, seed angels or business partners that you are an inventor of ideas.
5. It shows what should be done, why it should be done and persuades the reader that you have the managerial skills and you are qualified to complete the job within the specified time and cost constraint.
TYPES OF PROPOSAL
There are different types of a proposal:
1. Business Proposal: This is written to commercial organizations for buying, selling or supplying goods or services for money.
2. Grant Proposal: This is used to request for a particular sum of money to do something either from banks or microfinance banks etc.
3. Scholarship Proposal: It is used in making a request to pay for tuition fee throughout their learning years.
4. Partnership Proposal: As the name implies, this one is written when individuals or organization wants to go into business partnership so that they can have a clear understanding of where each party stands.
5. Building Proposal: This proposal is for making an appeal to request fund for structure. Such as Schools, Markets, Shopping malls etc.
BASIC CONTENT OF A PROPOSAL
1. Summary: It is written in two to three sentences at the beginning of the proposal in order to help the reader have an overview of what the proposal is. “Edu Naij requests 500,000 for one year, digital marketing training program for jobless youths in South-South. Training will be at four locations in the six Southern States.
2. Organization Information: This should be done within two to three paragraphs in the proposal, making the funder to know more about your firm and why it can be trustworthy to give funds and can also make use of it effectively. Your firm Brief details such as history, their mission, whom you have worked for and past record of achievement. Describe If your programs are numerous or multifaceted, don’t forget to add your firm chart or other attachments that give details.
3. Problem/Need/Situation Description: This is where you prove to the funder that the problem you want to solve is very important and demonstrate that your group is very professional on the issue. These are some basic tips:
- Never you assume that the founder is very familiar with your topic.
- The situation should be described in both truthful and social interest terms, if possible. Good data that helps to demonstrate your group is capable in the field.
- Your issues should be described within a specific locality as possible. If you want to teach youths in your locality about Digital Marketing, tell the funder about the importance of Digital Marketing in your locality — not in Nigeria as a whole.
- Describe a difficult situation that has the same dimensions as your solution. Don’t depict a picture of internet fraud or scam. When you are organizing a program for Digital Marketing for youths.
- Don’t describe the difficult situation as the lack of your project. “We don’t have enough Digital Marketers” that is not the problem. The problem is increased levels of joblessness.
4. Work Plan/Specific Activities: Your organization overall goals should be explained? Then go on to give details, including:
- What are you going to do? Describe the events. Tell the funder concerning the task’s “output,” or how many “parts of provision” you intend to provide over an exact time period.
- What has project preparation taken place? If you have already done inquiries, protect the obligation of participants, then designate it to the founder in order to show you are well-prepared.
- Who is going to carry out the work and what are their credentials? (Some funders will ask for the name of your groups, the person that is in full control for the project, whether unpaid assistant or paid. (Resume is being included here).
- When will the project start? Some funders will like to know when the project is going to start and when the project is going to end. A project can start when you start carrying out expenses on it. If the project is going to be long, there should be a timeline included.
5. Outcomes/Impact of Activities: Make the funder be aware of what influence your project is going to have and the developmental change is going to bring.
6. Other Funding: Here the founder needs to know if other groups are willing to commit funds to the project. Few funders want to be the sole support. Funders generally, expect you to ask for a contribution from more than one source.
7. Future Funding: How are you going to fund the project? If you have the intention of funding it. Most funders don’t like funding similar set of projects. The funder wants to see whether you have a long-term vision and funding plan and the project sustainability.
8. Evaluation: You need to describe the information you will collect to tell you how you came close. If the evaluation will involve money, be sure to put that cost in the project budget.
9. Budget: What will be the cost of the project? one or two-page showing predictable income and expenses for the project should be attached.
10. Expenses: We have two kinds of expenses in a proposal they are: Direct Project Expenses and Administrative or Expenses.
- Direct Project Expenses: These are non-personnel expenses you would not sustain if you don’t embark on the project. They are transportation, equipment rental, supplies, and insurance. etc
- Administrative or Overhead Expenses: These are non-personnel expenses you will sustain whether you carry out the project or not.
Note: Your expenses must be carefully sum up in the proposal. An incorrect addition will affect the proposal.
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There are two categories of income in Proposal:
- Earned Income
- Contributed income
Earned Income: This is the income you get from people in exchange for the service you render. A tutoring project may have income from publications sold out.
Contributed Income: This comes in two categories: cash and in-kind. This Show cash contribution.
Ade Public Foundation (received) 5,000
The city of Eket (committed) 2,500
Akan Widget Firm (pending) 3,300
Other funders (pending) 5,400
The following will be demanded by the founder(s):
- A copy of your IRS letter declaring your organization tax exempt.
- A list of your board of directors and their affiliations.
- Last year Financial statement.
- A budget for your current fiscal year.
- A budget for the next fiscal year within three or four months of the new year.