It is important to know how to write a funding proposal as this is your chance to convince potential funders that your business is run efficiently, that it is accountable and that it can achieve the objectives it sets.
How to write a funding proposal that will have impact
Before you begin to write your funding proposal, you need to do planning and research. You must be clear on the following:
- Know the requirements of the funder who will receive the proposal.
- Find a funder who has similar agenda to yours.
- What need is being met by the product or solution your business offers?
- What is the product or solution offered by your business?
- How does your product or solution meet the need defined above?
- How much will it cost to get your business idea off the ground?
Resource: New Ways SMEs Can Find Funding
Follow these hints on how to write a funding proposal
- Be structured. If your proposal is well-thought out and ordered, it says a great deal about how you’ll run your business. The converse is also true.
- Be persuasive. The aim of writing a funding proposal is to get someone to agree to give you money.
- Be technically detailed and correct. This means you have to have done your homework.
- Be brief and to the point. Convey the required information in a concise manner.
Funding proposal must-haves
Your proposal needs to include:
A summary will provide an overview of the project. It must identify the challenge that your business wishes to address, how you plan to address it, why you want to address it, how long it will take and how much it will cost.
The introduction gives an overview of your business that includes what your company is called, where it is based, what it does and who it employs. Include your vision and mission statement and company goals.
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Provide detailed background information about the business that shows it is a good risk for the funder. It also provides information about the environment that your business operates in, including the market that it addresses. Here you can include a SWOT analysis of your company.
Project details describe exactly how your business plans to reach its goals. Be clear about your objectives and what it will take to reach them. Also list your resources, including staff and technology, that will help you achieve your goals. It’s also important to include how you will measure your progress. Give the relevant figures and refer to the supporting documents where required.
The conclusion will explain how the funds will be used and accounted for. Include the main budget items and once again, refer to supporting documents for more detail. The budget is the financial plan that will control the allocation of funds. You need to research your costs to work out your budget, remembering to allow for contingencies.
Supporting documents and materials can include anything that may help the funder reach a decision. These can include financial information, legal documents and any other information about your company that you think will be relevant.