Home / Insightful Articles / How to Write a Winning Business Proposal that Secures Investor

How to Write a Winning Business Proposal that Secures Investor

If a statement like “business proposal” makes you think about long PDFs filled with unnecessary content, then you need to stop. Investors seek strong and compelling evidence, clear economics, and a creator who can execute operations in an AI-accelerated market. You need to write a proposal that catches the eye , a proposal that answers the three important questions, especially on the first page. Questions like: Can this team win? Will the market let them grow? Will my money return, and how fast?

Writing a Winning Business Proposal

In this article, I will be showing you a practical, step-by-step method to build and write a proposal that gets attention and is also funded.

1. Start with the single best one-line hook (the first 15 seconds)

Open with a strong value statement that answers: who, what problem, how, and why now. For example, “Green cart reduces their last-mile food waste for Lagos supermarket by 35% using cold-chain micro-hubs and AI routing and we are asking for 50 million naira to scale 10 stores  in 12 months.”

This matters because it catches the attention of the investors and they can decide fast. That one line sets the stage and frames every follow-up number, you just have to keep it tight and quantified.

2. A one-page executive summary that they can scan in 60 seconds

For starters, treat the executive summary as your brief presentation on paper. Put this at the very front; 

  1. A one-sentence mission statement, for example, what you do and who you serve
  2. A clear question like; how much capital, for what milestones, and proposed equity or instrument.
  3. Three key traction or validation points; for instance, revenue, pilot or customer commitments, MVP (Minimum Viable Product) metrics.
  4. A one-line exit or a return thesis is how investors can make their money.

Investors see hundreds of proposals and if your first page doesn’t stand out like this then they might just skip your proposal as well. But if you have a single page that answers “what, how much, why now, and why you” they will read that first and if the summary is compelling, they will read the rest.

3. A problem, market, and opportunity (prove it matters)

Don’t just theorize, prove. You can use these three concrete items;

  1. Size the market; TAM or SOM or SAM (Total Addressable Market or Serviceable Available Market or Serviceable Obtainable Market) with sources using public reports, then 
  2. Demonstrate the pain with customer quotes, competitor failures, or unit economics that don’t work without your solution
  3. Timing is a must because now is the right moment with regulations, tech, consumer behavior, AI tools, and inflation.

With the statement that says figures speak louder than words, if you say “$200M market” show the source or the math that leads to that estimate. A credible third-party data source builds trust.

4. Your solution and product-market fit (make it tangible)

Explain your product or features in plain simple language, then show evidence of the fits like; LTV: CAC, or letters of intent but if you have none, you can show a quick feasibility study or a customer development summary, for instance, the interviews, or where they are willing to pay.

You could also include a simple before and after example that shows how the customer benefits in monetary terms, for example, “Store A reduced waste by 300k naira/month, increasing gross margin by 7%”.

5. A Business model and unit economics

These are numbers investors care most about, they want to know how you make money whether unit economics scale. With the likes of;

  1. Pricing model e.g unit price, subscriptions, margins
  2. Customer acquisition channel and CAC (Customer Acquisition Cost)
  3. LTV (Lifetime Value), payback period, and contribution margin
  4. A 3-year financial snapshot in revenue, gross margin, and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)

Realism equals optimism, also includes assumptions and sensitivity, for example, what happens if CAC is 20% higher or growth is 30% slower? This clear, conservative projections and break-even analysis makes you credible. Your business must be able to solve a real problem or even fulfill a significant need in the market.

6. Traction and roadmap

These should be milestones that de-risk the business, you can do this by showing what you have achieved and what comes next in timeline form e.g product milestones, customer commitments, platform launches, key hires, and regulatory steps. Investors buy progress which is why each milestone should potentially reduce risk or increase valuation. 

7. Team and advisors

You need to find a team and advisors because investors often bet on people. List founders, core hires, and advisors with one-line credibility statements with past exits, relevant industry experience, and technical domain expertise. These help you explain any gaps you will hire and why those hires are realistic because many investors decide on team fit before numbers. They also want to see biographies of the owner and key employees, the legit structure of your business, an organisational chart, etc.

8. Funding ask and use of funds

You need to be specific with these, state the exact amount you want, the instrument (that is it should have equity, be safe, and a convertible note), and a clear breakdown of how the money will be used in products, hires, marketing, runway, etc. Also, you need to state the expected milestones that funding will deliver and the next raise timeline.

An example breakdown (50M naira ask): 40% product and engineering, 30% go-to-market, 20% operations and hires, 10% contingency, this is because investors prefer a clear ROI path.

9. Exit or returns (show investors upside)

You need to be honest about likely exits such as acquisition, IPO and buyout, and the timelines because investors expect a range, not a promise. You can also use comparable exits or multiples where possible and if it is a long play, then show mid-term monetization strategies.

10. Use of appendices and backup

This is the “fat” appendix that answers the question. Put detailed financial models, unit economics, competitive analysis, customer interviews, legal or IP docs, and product screenshots in the appendix to gain the attention of the investors. During thorough investigations, investors will ask these, and having them ready speeds their decisions.

Pitch decks and proposals should be brief like a deck can be 10 slides for the main story but appendices can be long. Examples and the best-practice decks are publicly available and useful as templates.

11. Formatting and delivery

These are practical rules that will make you stand out;

  1. A one-page cover with a 2-4 page proposal plus appendix (or a 10-slide deck plus appendix). Keep the main ask and model visible up front.
  2. Use plain English that has no vague buzzwords. Numbers plus sources equals adjectives.
  3. PDF plus link to interactive model (Google Sheets) plus a one-minute explainer video if possible.
  4. Tailor your work; if you are sending to an angel, then just focus on team and traction, for VCs focus on scale and defensibility, and for corporate investors emphasize mainly on partnership fit.

Conclusion: Be humble and measurable

Bold visions win attention and credibility wins investment. Use clear numbers, realistic scenarios, defensible assumptions, and a tight team narrative. 

Read Also

How to Leverage Influencer Marketing for Business Visibility

Digital Marketing Strategies for Business Branding

Finance and Investment Made Simple: Strategies for Long-Term Success

Tagged:

Leave a Comment

Discover more from ParrotMouth

Subscribe now to keep reading and get access to the full archive.

Continue reading