SCOPE OF BUSINESS PROPOSAL
1. Understanding Business Proposal
In general, the business proposal is a written document prepared by the entrepreneur in describing all the relevant elements of both internal and external of the business plan.
Another definition describes that business proposal or business plan is a selling document that reveals the attractiveness and expectations of a business that will be open to potential funders.
According to Bygrave: A business plan is a document that convoys selling the excitement and promise of your ussines to any potential backers or stakeholders.
It is a document that expressed confidence in the ability of a business to sell goods or services to generate satisfactory profits and attractive to funders.
1. Understanding Business Proposal
In general, the business proposal is a written document prepared by the entrepreneur in describing all the relevant elements of both internal and external of the business plan.
Another definition describes that business proposal or business plan is a selling document that reveals the attractiveness and expectations of a business that will be open to potential funders.
According to Bygrave: A business plan is a document that convoys selling the excitement and promise of your ussines to any potential backers or stakeholders.
It is a document that expressed confidence in the ability of a business to sell goods or services to generate satisfactory profits and attractive to funders.
According to Hisrich Peters: The business plan is written document prepared by the entrepreneur that describes all the relevant external and internal elements INVOLVED in starting a new venture. Often it is integration of functional plans such as marketing, finance, manufacturing and human resources.
Is a written document prepared by the entrepreneur that describes all the relevant elements of both internal and external to the company about starting a business, usually involving marketing, capital, manufacturing and human resources.
2. Importance of Business Proposal
In the course of business proposal employers adjust to the objectives to be achieved. The proposal must be able to describe all aspects relating to the business which will be opened so that it can attract funding or other resources that will be invited to cooperate.
In this case the development of a business can be used as a medium of communication with outside parties. Once the importance of drafting a business proposal it should be pure business proposals made by the employers themselves, and not just copy other people's business proposal.
There are several reasons why employers need to develop a business proposal, among other things:
To obtain capital from investors or funders.Ø Sometimes entrepreneurs who will start a business can not provide their own capital that need capital from investors.
To give you an idea of the performance of the business to be run to the outside.Ø By reading the business proposal, usually to describe the ability of the employer to manage its business and how the business operations are carried out.
It can be a guide for entrepreneurs to stay focused on the business goals and targets.Ø In this proposal a complete set of business goals, vision, mission and business plans will be achieved in the future so that it can be used as a guideline in conducting its business.
To get the chance to achieve success.Ø With the business proposal that outsiders get complete information about the business to be opened. Expected that the interest of outside parties to cooperate. This can lead to successful businessman.
According to Bygrave (1944:115) there are several important reasons why you should make up the Business Plan:
1. To sell yourself on the bussines.
By creating a good business proposal, interesting and easily understood by the other party, then the employer is not directly sell the business idea and business ideas to others who will be invited to cooperate (investors, suppliers, business service management, etc.)
2. To OBTAIN bank financing.
Comprehensive business proposal that can provide a clear and convincing to the bank to drain funds.
3. To OBTAIN investment fund.
The owners of capital will generally look for companies that have a good health condition. This condition can be seen in the business proposal, business proposals were well arranged demonstrated a clear and detailed plan so that it can attract the capital pemilk.
4. To OBTAIN large contracts.
As a development, business proposal can be used to expand partnerships with other companies. With a good business proposal can give that effort to open a business opportunity for other companies to become interested in cooperation.
5. To attract key employees.
Proposal made efforts to attract entrepreneurs to join professional employees. By looking at a company business proposal, experienced and professional employees are able to assess clearly whether the business will be run companies can succeed or not. If the perceived benefit to the employee, they will be interested to join. Keep in mind in the business world, more companies looking for professional employees employed.
6. To motivate and focus your management team.
Business proposal can be used as a guide for the direction and management to run its business, making it more focus and not deviate from its intended purpose.
The success of a business is certainly not determined by a good business proposal, but many factors can influence it. However, the proposal effort is needed. Employers in making business proposals always have certain goals to be achieved. It is not released to the success of their business.
When employers need to develop a business proposal?
o When thinking of opening a business / business.
o Before you start
o When a business needs to be renewed
o To acquire new information,
o Etc
3. Benefits of Business Proposal.
There are several benefits that can be obtained by employers by drafting a business proposal, namely:
a. As a communication tool in describing the business as a whole will be opened to other parties.
b. As a means of comparison between the actual performance of the business expected.
c. Help employers understand the economic factors of competition and financial analysis, allowing you to carefully make assumptions about how much of a chance to succeed.
d. To develop and test strategies and the results expected from an outside perspective.
e. To clarify the existence of resources in managing the business, because it can be used as follows:
Provide clear and complete information about funding sourcesØ
Provide an overview of employers' ability to meet its obligationsØ
Provide information and forecasts the market potential market share that may be achievedØ
Identify the critical risk of making it easier to determine a precaution.Ø
4. Systematics of Business Proposal
To make a good business proposal there are several steps that must be followed, namely:
a. Knowing the important factors in the process of drafting a business proposal
b. Prepare everything needed to make a business proposal
c. Knowing and preparing supporting factors
d. Knowing the business proposal preparation instructions
The first step is to figure out a few things that are important factors that must be considered to develop a good business proposal and professional. This is the basis for an employer to carry out the following three steps. Important factors are as follows:
a. Realistic goals.
Business objectives to be achieved should be adjusted to the ability of the fund to be more specific so clearly measurable ketercapaiannya. Besides, there must be equality and unity between time and parameters.
b. Flexibility.
The proposal of business to be developed should be able to adjust to any actual development effort. Existing flexibility allows employers to create or formulate alternative strategies for dealing with business development.
c. Time limit.
Any goals set and arranged in a proposal effort should be made to continuously and sustainably. This means that some of the goals set have links that relate to and support the achievement of further goals. And any progress a time limit. There is a time in every evaluation progress.
d. Commitment.
To start a business, entrepreneurs will not be able to walk on his own without the support of all parties involved be it family, business partners, employees and other parties as necessary. All parties involved should support and commit together to run the business.
The second step is to prepare everything necessary to make a business proposal. The second step is more talk about the skills that must be owned by the entrepreneur in starting a business. There are 5 (five) are required.
Entrepreneurs in preparing a business proposal, namely:
1. Having knowledge in the field of technology, creativity, initiative and innovative
2. Having the ability to make financial projections
3. Having the ability in the areas of marketing, production and human resources
4. Having the ability in the field of business management
5. Having a clear vision and mission and focus
The next third step is to know and prepare other supporting factors. There are two factors that are supporting the efforts of the contents of the proposal are:
1. Competition Situation Analysis.
Employers need a variety of sources that will be used to monitor the potential competitors. This is important because it can affect the marketing strategies that will be used. Also related to the purpose of its business prospects. Knowledge of analysis of the competitive situation is also used to estimate how big the strengths and weaknesses of existing products on the market and measure the competitiveness of its products compared to other products.
2. Policy In Setting Rates.
Product pricing is done should really correct that the price of these products can successfully penetrate the market and generate maximum profits. For a set price must also consider the prices that are on the market.
The fourth step is the entrepreneur must know the business proposal preparation instructions. Set the desired type of business and profitable is not an easy job. To set it, an entrepreneur has to work hard to get the relevant information. This information can be obtained from, among others:
1. Personal contacts,
- Employers
- Professional
- Consumer
2. Observation
- Fair trade
- Consumer
- Suppliers
- Competitors
- Distributor
- Former employee
- Agent
- Experts and practitioners
3. Direct Mail
- Reading
- Reports and statistics
- Media
- Books
- Directory
- Government Information
- Trade associations
4. Research, internet and web
- Competitors
- Market
- Information industry
- Department of Government
After getting the relevant information, the next step is preparing the business proposal. In general, business proposal must be prepared based on the SWOT analysis (Strength, Weakness, Opportunity and Threat) analysis of the strengths, weaknesses, opportunities and risks that will be faced.
While the information contained in a business proposal including a description of the business, product, location, market, competition, financial reporting, management, personnel, credit proposals and other auxiliary attachments.
a. Description of Business.
Business Description contains a brief description of the business is or will be run by businessmen. In this section, the employer argued backgrounds selection of business and its future prospects. Various advantages and obstacles faced and the solutions proposed are also anticipated.
b. Products.
About the product described in detail starting from the shape, size, type, use, quantity of product per period, and others. Items will be generated depending on the interest and knowledge of entrepreneurs. Sometimes employers are already having knowledge in providing products, both from my own experience and the experience of others. Some things that can be used as consideration to choose the products that will be produced, among others:
- Consumer demand for products
- Consumer needs are still not identified
- The purchasing power of consumers
- Competition in the market
- The resources that support production
c. Location.
Business location to be selected should be included in the proposal effort. This is because the location is part of the marketing aspect as well as price and promotion. To determine the location of the business there are 2 (two) things that need to be addressed:
1. Relations backward (backward linkage), for example, how to obtain the raw material. These relationships have an impact on the cost of production.
2. Relation to the front (forward linkage), for example, local marketing results. This relationship problems associated with the sale and distribution of products to get into the hands of consumers. Things that should be considered include:
o Close to sources of raw materials
o Close to market
o Easy to get a human resources
o Ease in transport
o Ease in obtaining raw materials
o Ease in obtaining water
o The attitude of the local government and surrounding communities
d. Markets and Market Segments.
In this kind of business proposal also specified what the target market. Similarly, the market segment to be addressed, how the company's position in the market.
There are five (5) types of the target market of the company, namely:
1. Monopolistic Market
2. Perfect Competition
3. Oligopoly Market
4. Monopolistic Market
5. Monopsony market
While the company's position in the market that will be addressed is divided into 4 (four), namely:
1. Market leader (market leader)
2. Challenger market (market challenger)
3. Followers Market (market follower)
4. Perelung Market (nice market)
e. Other Aspects.
Other things that should be described in detail in the proposal are as follows:
1. Competition.
In a business proposal to clearly state which position the company among its competitors (competitors) that will be faced in the market. Besides, employers also must be able to describe the marketing strategies that will run to win the competition. Marketing strategies include: distribution, promotion and product development plans. The determination of this marketing strategy is very important because it can make the chances of success of a business that is being or will be implemented.
2. Financial Statements.
Employers must include financial statements possessed. It is beneficial for people with capital to assess the real capabilities and potential capabilities of the company. The financial statements include the following:
o Balance of company
o Reports Profit / Loss
o The report per capital (equity)
Of these financial statements puhak out in cooperation with the firm to assess liquidity, profitability and solvency of the company.
3. Management.
In a business proposal also outlines about forms of ownership, organizational structure and the role and authority of each part in the organization of the company. Similarly, the status of the business will be run, whether persereoan limited status, firm, CV or any other business entity.
4. Personnel.
Employers explain in detail the composition of personnel to fill the organizational structure. To get and put the employees in accordance with their fields, completely done carefully and thoroughly. Consideration of the capacity, quality and quantity of employees conducted in a professional manner without knowing collusion and nepotism.
5. Credit Proposal.
After providing a clear and complete understanding of the business to be opened or executed, employers usually include credit proposals. The aim is to propose a number of funds required in order to develop their business. Funding requirements needed to be detailed allocation, for example, to increase the number of machines, hire new building, purchase of raw materials and so on.
6. Attachments / Other Important Documents.
Terakhhir part in an attached business proposal important company documents. The document contains, among others: the deed of incorporation of the company, SIUP, land titles, and so forth.
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