Parts of the Project Proposal

Project proposal is written to gain money from the investors and to grant money as well as to loan money to a large project.  In order to have a successful project proposal, it should describe the things you want to accomplish and how you intend to achieve these things.

A successful project proposal may include the following parts:

  • Introduction
    It contains the project accomplishment and benefits of your project to the company. Explain in short sentence of how your project achieves the goals of the company.

 

  • Background of the Project
    It describes the background of the project such as how the idea for the project came out.
  • Method Used for the Project Proposal
    It demonstrates how to make the project happen so it should explain the methods or procedures to be used in order to have a successful project to achieve the company’s goals. It includes scope statement and risk that provides solution to overcome it.
  • Project Budget
    It provides the information about the cost of the project.  The reader should know how much money is needed to accomplish the proposed project and how the money will be spent.

 

  • Summary
    It contains the summary of the paragraph stating the project scope, project budget and the importance of the project.

Sample Proposal Letter

December 10, 2008

Mr. Eugene D. Samson
ABN Corporation
Santiago St. Sampaloc, Manila

Dear Sir/Madam:

Our company is specializing on designing Websites in PHP, WordPress, HTML, Drupal, Magento, Joomla, Graphic designs and Android iOS application development.

We are happy to announce that we are offering our services such as web Design and development projects at competitive rate without sacrificing on quality. Our services include Logo Design, Responsive Website Design, E-commerce solution, Web development and Web and Mobile Application.

As part of our promotion, we are proposing to have your website taking a free analysis and make a proposal to have a responsive design and building a mobile application only for your company and E-commerce solution.

Please let us know if you are interested to our offers. We are happy to share our proposal and the past work details including client testimonials.

We are looking forward to have your positive response the earliest possible time.

Sincerely yours,

Rodnel D. Herrin
Business Development Consultant

New Restaurant Feasibility Study

Entrepreneurs or businessman should take consideration of doing a feasibility study to make a right decision of putting up a restaurant business. They should determine the probability of success. They sometimes overestimate the size of the market in their area and do not take into account the tough competition they will face from established restaurant with loyal customer.

Factors to consider when planning a new restaurant:

–    Market

Studying market is one of the best effective ways to determine if the new restaurant will have enough client or customer.  It includes the study of demographic characteristics such as age and income to estimate the size of potential market.

–    Target Locations

Good business location most specially restaurant business includes high traffic location, large office complexes, near malls and hotels or retail centers.  Make sure that your business location creates demand for your restaurant. Also, consider the lease cost or rental cost and make sure that there is parking with easy customer’s access.

–    Competitors

Review your competition such as knowing the total number of restaurants in your target area as well as their style. Analyze their strengths and weaknesses to determine if there is a room for a new restaurant.

–    Industry

Be familiar with the industry by reviewing any statistical information about industry trends and growth. Consider attending meetings and talk to restaurant owners.

–    Food Cost

Break down the cost of each menu and determine who will be your major supplier and ask for pricing. Study food cost projections and the prices you are going to charged.

–    Management Capability

Hire restaurant manager and staff the have sufficient experience to run a restaurant. Train and motivate your staff to maintain high customer satisfaction and also so that your kitchen run smoothly.

Market Feasibility Study Outline

It is important for a business to study and analyze the potential market. Like for example if you plan to sell a certain product or offer a particular service, you have to determine if there are potential clients or customers in your location site. Market feasibility study is used as a tool to identify problems or obstacle that you may encounter during the implementation phase of your project. It will include the sales projection as well as the project cost. Also, it will know if the proposed project will be successful in terms of marketability.

market feasibility outline

What to include in your Market Feasibility Study

– Introduction

It includes specific details of the project addressed by the market study as well as the objectives of this study.

– Site Analysis

It includes the description of your chosen location for your business such as the topography, environmental, zoning, and architectural factors. It should address the visibility and accessibility of the site.

– Market Description

It contains the description of your target market including prospective customer’s lifestyle information that involves their age, sex and habits. Identify the factors affecting in choosing of the products or services. Also, it should include that size of the total market as well as the market trends.

– Competition

It analyzes the competitors such as their product lines and markets as well as the competitor’s strengths and weaknesses and compare your marketing strategies to your competitors.

– Pricing

It reviews the products or services cost including all variables and fixed expenses and make sure it will provides profits. Also, compare your prices with similar products or services in the industry.

– Distribution

It identifies the best effective method to distribute or getting your products or services to customers/clients in the target market.

– Promotion

It provides the potential promotion types or advertising method to be used including the media choices, project expenditure, and possible use of ad agency. Also, it describes your target audience.

– Sales Forecasting

It projects sales income for the next four quarters. It also involves sales history of your competitors based on research, recent sales trends in industry and seasonal adjustments.

– Production

It identifies the level of production/service necessary to meet the demand generated by marketing.

– Action Plan

It contains the list of all the marketing strategies and ranks all strategies by levels of importance.

Financial Feasibility Study

Financial feasibility study is written to determine the start up capital, sources of capital, return of investment and other financial consideration. This document contains how much money will be needed and details each expenses and potential income. It considers the start-up capital, expenses, revenues and investor’s income and disbursement.  The project will be feasible if the revenue is more than the project cost. It involves the study of start-up costs, operating cost, income and profit, and financial planning.

What to include in your financial feasibility study?

  • Start-up capital need until incomes are realized at full capacity. Start up cost includes business license, staffs training, initial production for manufacturing firm, and others.
  • Capital requirements for facilities, equipment and inventories
  • Working capital needs
  • Operating expenses such as rent, labor cost, professional fees, advertising and promotion expense, etc.
  • Contingency capital needs for construction delays, market access delays, technology malfunction, and others.
  • Other capital needs
  • Equity needs
  • Credit needs
  • Alternative credit sources such as banks, government, grants and economic development incentives
  • Expected income, costs, profit margin and expected net profit
  • Sales or usage needed to break-even
  • Expected cash flows
  • Income statement
  • Balance sheet
  • Other statements

Acknowledgement

Sample Acknowledgement

This project proposal has been completed by the researcher with the help of the employee of Petron Refinery Power Plant and the agencies involved in reverse osmosis plant.  With their assistances and support, the research wishes to express his sincerest gratitude most specially to the persons whose names and significances are mentioned below:

Engr. ARNOLD R. SANTOS, research, adviser, for giving constructive criticisms that challenged the researcher to do a valuable special project;

Dr. Emmanuel D. Escudero, the Director of the Graduate Program for his comments and valuable suggestions during the oral defense of the document, and for widely opening the researcher’s view of what must be done to obtain good document;

acknowledgment sample

To the members of the Oral Defense Committee namely Dr. Theresa R. Naguit, Dr. Jose R. Magtanong, Dr. Jcmer Navarro, Engr. Ronaldo R. Magsaysay, for their contributions in improving the document through their important suggestions and making the tasks seem not too hard to achieve a successful research study;
Friends and Classmate, for not leaving us through the most difficult part of this research study.

Beloved Family most especially to my Girlfriend, whose love and joy cannot be measured by any gauge ever made by man; and

The greatest of all, ALMIGHTY GOD, for giving me strength, good health, blessings and determination to go through all this.

My success, from thou I owed!

Sample Feasibility Study Outline

I.    Executive Summary

This section is very important part of the feasibility study because it provides summary of the detailed contained within the rest of the document.

II.    Description of Products and Services

This section provides description of the product and/or services. It should capture the important aspects of the products and/or services that the organization or the shareholders is considering.

III.    Technology Consideration

This section explain that the organization consider with regard to technology. Nowadays, modern technology have been used to businesses to improved their products and services.

Feasibility study outline

IV.    Product/Service Marketplace

This part will describes the existing marketplace for the products and/or services  including the target market for this product or services, competitor, suppliers and the reason why your client or customer choose your products or services.

V.    Marketing Strategy

This section provides description on how the products or services will market such as how to promote and advertise it to the prospective client or customer.  Marketing plans should be focused on the right target groups to yield the greatest return on investment.

VI.    Organization and Staffing

This section will enumerate the need for additional staffing or personnel for the new products or services.

VII.    Schedule

This part includes the schedule for the implementation of the product or services including the detailed schedule such as the product planning. It includes some targeted milestones and time frames for completion.

VIII.    Financial Projections

This section provides the description of the financial projections for the new products and/or services such as the cost-benefit calculation, projected income statement, balance sheets. It also provides the assumptions on which the illustrated financial projection are based.

IX.     Findings and Recommendation

This section provides the summary of the findings of the feasibility study and explains why some course of action is or is not recommended such as the advantages and disadvantages. Also, it contains the recommendation for the products and/or services.

Technical Feasibility Grant

The goal of technical feasibility grant is to fund the cost of the company to undertake a technical study.  Technical study that  pass to their requirements includes the development of new products, processes, technologies  as well as the redesign or improvement of current products , processes or services.  It also includes the possibility of extending or expanding company facilities to meet companies’ needs and application of new technologies for the companies’ growth.

The purpose of writing a technical feasibility study is to know if the project is viable. The content of feasibility study includes; prototyping and design, assessment of manufacturing process, evaluation and selection of plant, source of raw materials, cost analysis and market research.

Technical feasibility study is used to assess the details on how to deliver a product or services. It will determine how your business will produce, store, and deliver products and services. It serves as flowchart on how your product and services progress and move through your business to reach your target market. It involves the study of facility needs and suitability of production technology providers as well as the availability of raw materials, transportation, labor, and products.

Some countries provide technical feasibility grant to the companies who needs financial assistance for their business venture.  So it is important that you write it in a correct format.

Simple Business Proposal Sample

Proposed Fruit Shake in front of 7-Eleven Store

Name of Business: JCMer Fruit Shake

Proposed Location: JCMer fruit shake will be located in front of 7-eleven store at Paterno St. near Pilar State University

Nature of Business:

JCMer Fruit Shake will serve variety of fruit shakes including Banana Java flavor, Strawberry Banana flavor, Orange Crush flavor, Peachy Oat flavor, Blueberry flavor, Coconut Kale flavor, Avocado Pear flavor, Cranberry flavor, Mango Lasi flavor, Guyabano flavor, Chocolate flavor, Tutti Fruiti flavor, and many more.

This fruit shake will open everyday through Monday to Sunday at 7:00 am to 8:00 pm.

Marketing Plan

  • Know the total size of the market
  • State the current demand of the product such as fruit shake
  • Know the current trends
  • Evaluate if there is a growth opportunity for the business

Management Aspect

  • Elaborate the roles and responsibilities of each personnel
  • Provides training of the personnel
  • Describe the strategies to be used in order to cope up with the competition

Financial Aspect

  • Total cost of the business
  • Cost Analysis Benefit

Sales Forecast

  • Sales forecast spreadsheet
  • Startup expenses worksheet

Socio Economic Aspect

  • Contribution of the business for the reduction of umemployment
  • Contribution of business to community and economy

Business Feasibility Study Structure

For all we know, a Business feasibility study is written to know if the business idea will become successful or not when implemented. It serves as an evaluation tool for every business because it will determine whether or not it’s worth investing your time and money to this business idea. Also, it will determine the profitability of the business.

Business feasibility study will analyze your business idea, market and financial feasibility of the business. The objectives of your study are to assess the market size, your competitive analysis, capital requirements, and management ability.

business feasibility studyDuring market analysis, you have to determine the type of demand that available for your product or service you plan to offer such as the consumer and distributor and then establish the size of the market and its growth capacity.

After determining if the market is available, you have to know your competitors and determine what makes your product or service special compare to your competitors. Also, analyze the sales strategy to use. Other factor to consider is to determine the management and personnel requirements.

Of course, before starting your business you have to know the financial feasibility of your business idea including making sales forecast, computing start-up and working capital requirements, estimating profitability and financial viability. Financial projection includes balance sheet, income statement, cash flow, and break even analysis.

Below is an example of Business Feasibility Study outline:

•    Executive Summary
•    Introduction
•    Product or Service
•    Market
•    Competition
•    Industry
•    Marketing and Sales Strategy
•    Operating Requirements
•    Financial Projection
•    Balance Sheet Projection
•    Income Statement Projection
•    Cash Flow Projection
•    Break Even Analysis
•    Financial Requirement
•    Recommendation and Findings
•    Conclusion