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What You Should Do If You Have A Great Business Idea?

Guy Kawasaki couldn’t have said it better. Humans generate ideas all the time. You must have had a hundred ideas over the course of the day. Some might have come up in the shower. Other ideas may have come to you on the way to the office. Some might have even showed up right in the middle of “taking care of business”.

As you read this book, you already have a business idea in mind. There’s no doubt about it. And it can also be assumed that you’re pretty excited about that idea.

Whatever that business idea is, it’s not enough. Don’t misunderstand, though. Every business all started with an idea. But before you can turn that idea into profit, you need a few more things.

Capital is one of them.

Unless you already have the money in your hands, you’re going to need investments, donations or even pledges in order to fuel the fire that is your ambition.

Most successful businessmen use the term “bootstrapping” to refer to the act of self-financing. It’s not a bad way to go as well; as long as you already have the resources. But what if you don’t?

What do you have that’s going to connect your idea to the money you need for take-off? A proposal, that’s what you need.

Remember, you’re the only one who believes in your idea at this point. There is no doubt in your firm belief on how good it’s going to be.

So the next thing you have to do is to convince other people that your idea is good! People with the money to start your idea.

This is where your implementation comes in. The only way to present a business idea to business-oriented people is through a proposal.

A proposal could be anything from a business letter to a Powerpoint presentation to bunch of figures written on paper in a coffee shop. Proposals happen when a person with the business idea (you) approaches the people with the means to make that idea workable (them).

But no matter what the venue of your proposal may be, you can bet your million-dollar idea that every proposal has a certain set of characteristics in order to convince your potential source of capital.

The elements of a proposal

A proposal should be customized. Investors and businesses hate generic approaches. When you give them a generic letter, you get a generic answer. Those answers are usually negative in nature.

When you’ve found a source of capital (there’ll be more of that later), you need to do your homework. Who are they? How do you think your idea is going to benefit them? What can they possibly get out of funding your idea? How different is your idea from anything else they’ve seen?

What they’ve done? The responsibility of due diligence falls on the entrepreneur’s shoulders. When you have a customized approach, your potential investors will see how determined and convinced you are of your idea. They’ll have no other choice but to agree with you on the point that your idea is a profitable one!

A proposal should be quantifiable. Business is all about money. Money is all about numbers. Therefore, your proposal should have numbers in them. In fact, your whole business idea should be translated into numbers. Using your knowledge of your potential client, you should be able to show them how much money they can make out of your idea.

That means you should already have a prepared expense sheet to let them know where their money is going. On top of that, you need to be honest about your costs so that things are transparent. Avoid using vague and descriptive terms like amazing and wonderful and profitable and wealthy. The best way for a business-minded person to see your point is if you show them exactly how much you’re talking about.

A proposal should be specific and straight-to-the-point. Face it. People in business have heard all the sales talk in the world. The most successful business owners might have done some selling on their own. They know it when someone is trying to sweet-talk them into a deal. That will make your proposal insincere and devious.

At best, simply state what you plan to do and let their imaginations do the rest. “Here’s what I do. Here’s how much you can make. Here’s what I need to make that happen. I’d be happy to answer any questions you might have.” Simple. Powerful. While you don’t have any investors to impress at the moment, the best thing you should do is to work on your proposal.

This will give you a better image of what you have to offer. It will also show you the weaknesses of your idea and provide you some time to work out those bugs. One important thing you have to remember is that the goal of a proposal is to get your investors to have the same enthusiasm you have about your idea.

When you have a great idea, you need to give it form and shape. The best form to give an idea is the form of a proposal that is customized, specific and quantifiable. The best way to create such a person is to ask yourself “Would I want to fund my own idea if I had the money?

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