proposal Article

Making a

financial pitch

B u s we n elizabeth s h

• resenting your



• argeting your



• aking the



Co a c h

t e r i e s

M u h i d e ss

Co a c they would

s elizabeth r i actually e h


serious money

Monetary proposal provides the details on how

you intend to accomplish your business program:

• how much money you need

• how that money will be used

The situation

Once your company takes a

significant infusion of capital — through

debt financing or the sale of equity —

the people providing the money will certainly

ask to see something in writing —

economic proposal.

The perfect solution

At BMO Bank of MontrealВ®, we could

committed to assisting Canadian

businesses develop and succeed. The

purpose of this Business Coach is to help

you make a financial proposal that

spots you and your company in the best

light conceivable as you seek to attract personal debt

or collateral capital.

• what returns can be expected

• what secureness will be provided

Apart from getting essential to raising capital,

the preparation of a financial proposal can be

extremely beneficial to the operation of the

business. Being a fundamental supervision tool,

the proposal:

• orces one to write down specifics clearly and



• elps you to determine and plainly define


products, marketplaces and suppliers

• rovides you having a guideline against which to


measure results

• onveys a lasting impression of you and your


company, and enables others to assess your

likelihood of success

It has to be taken into account that economical proposal

will be based on your strategy, which is

essentially a crafted summary of:


• hat your company is


• in this article you intend to have it

• how you intend to get there

It can be useful in the event you also have Producing Your

Strategy, a associate booklet from your

Business Mentor Series available on the web from our

resource page by bmo. com/business-resources

STEP 1 Format of the pitch

Whether most likely seeking funds from a bank, a

venture capital organization, a authorities program or

any other resource, you will be supposed to provide

a document which has most or all of the


• above page: business name, address,


telephone number, email and internet address,

and key associates

• Table of material: referenced by simply page numbers

• Summary: one page

on who will receive the proposal and for what

purpose. The summary should certainly state in brief:


• hat the corporation is will not

• ts history


• wherever its future is

• loath the company has to get there


(i. elizabeth., the amount and sources of money)

Keep it simple and honest, and you're midway

there. Look at these illustrations:

Example 1

• ndustry review: overview of your business


showcasing key date ranges and specifics

• anagement structure: qualifications,


skills and obligations

• The product/service

Capital t

• he market: production/supply, financial

functionality — previous and upcoming

• inancing outline: emphasizing application


of funds

• asic information: bank, accountants, legal representatives,


The ABC Co. is a British Columbia firm (30

employees) that manufactures auto parts such as

brake discs, drums and linings in one owned plant.

Sales are to Original Equipment Producers

(OEMs). Quantity peaked 36 months ago by $4 mil

(pre-tax profits $200, 000) and there are

two succeeding loss years (year-end Sept

30). Publication value of the company is usually $750, 1000, and

around $300, 000 is required in a combination

of debt/equity to replenish working capital.

incorporation, panel of administrators, shareholders

• ppendices: which include detailed supervision


journal, product books, valuations

of assets, monetary statements (preferably

audited), detailed projections — profit and loss,

cash flow, significant contracts

STEP TWO Making a very good first


The one-page summary following table of

contents can make...