How To Write An Investment Proposal

An investment proposal is a formal and carefully constructed presentation which is given to potential investors.

The presentation details your business’s purpose and goals in order to persuade investors to financially support your project.

How To Write An Investment Proposal?

Here we have included the preliminary information needed to draft an investment proposal.

The information needed can vary depending on the type of business or project that it is being created for.

Before Writing Your Proposal

There is essential research you must conduct before you can even begin to write your investment proposal.

Thoroughly researching the market and competition is the most vital step.

Create buyer personas and customer journeys to get a good understanding of what is needed from you by the customer.

Then you must review your product to make sure it is viable enough to present to investors, but still requires some more development effort and time which will come with financial support.

Lastly, gather information about the investors you’re pitching to.

Knowing the type of investor you’re pitching to e.g. a bank is important so you’re able to tailor your pitch towards that specific demographic.

Researching previous projects they’ve rejected, funded, and are planning to fund is key in understanding if you’re going to be the right fit for them.

Brief Description Of The Project

Introducing the project you are hoping to get investors for is the first information you will convey and therefore must be concise and interesting.

Setting your project apart from others on the market is crucial to demonstrate the value and importance you can bring to the table.

Sponsorship, Management, And Technical Assistance

It is important to include any history and business of sponsors you’ve worked with, including financial information.

Demonstrating a good management arrangement, including the names of the selected employees alongside their credentials indicates a well thought through business plan that is capable of delivering results.

Here you must include a description of the technical arrangements that are needed in order to make the project work and any other external assistance needed such as using an external production company or marketing professional.

Market And Sales

Strong knowledge of the market is essential, including the potential users of the products, distribution channels to be used, and competition.

Projected production volumes, prices, sales objectives, and market shares of the proposed venture are figures that investors will want to know in order to properly consider the project.

Any critical factors that may determine the market potential of the project must be mentioned here to demonstrate strong knowledge of what challenges the project may face and how well equipped you are to deal with them.

Manpower, Resources Needed, Technical Feasibility And Environmental Considerations

Manpower, Resources Needed, Technical Feasibility And Environmental Considerations

In this section details of how the operations will be run, depending on the type of business, are needed.

Suppliers, availability of manpower, locations of plants, sourcing costs and quality of materials, import restrictions, and a breakdown of operating costs are all vital information to demonstrate to the investors whether or not your project is profitable.

Any potential environmental issues, and how these would be addressed and prevented in the future are important, especially in today’s current climate crisis.

Investment Requirements, Financing, And Returns

Here is where the investors will be paying most attention as here you will detail how much investment you require and the potential returns they may be making.

The projected financial statement must include information on the profitability of the project and return on investment (see also ‘What Is A Greenfield Investment?‘).

Further indicate the critical factors that will determine profitability.

Government Support And Regulations

As with any new venture, there are rules and regulations set out by the government regarding all aspects of a business.

You should be knowledgeable about the legislation in place that will affect your project, including any potential government support from grants and exchange controls of capital entry and repatriation.

Establish how your project is expected to contribute to the economic development of the country to investors.

Timetable For Project Preparation And Completion

Finally, a timetable spanning the beginning to the completion of the project must be displayed to investors so they can determine how quickly they are able to see a return on their investment.

Too quick of a completion and the investors may assume you haven’t thought the project through well enough.

Too long of a completion and the investors will not consider the business to be viable enough to invest in.

What To Avoid In A Proposal?

There are things that are really important to include in an investment proposal, but there are also things that are important to leave out.

It is crucial to make a compelling argument for your project, so make sure the proposal isn’t too long or too complicated.

Avoid using jargon and complex academic sentences, make it simple to understand and want to invest in it.

Adding irrelevant information such as any previous skills or experience you may have may seem like a good idea, but if they aren’t relevant to the project then it will just add noise around your pitch and could overload the investors meaning they don’t take in the vital information.

Being confident and precise when asking for the amount of money you’d like invested in your project is key.

If you have detailed support to back up why you need the money, what you’ll do with it and the amount needed to get you started investors will be more inclined to consider your proposal.

Talking about money isn’t always easy, but they know that’s why you’re there so don’t be afraid to make your case.


Writing an investment proposal is a daunting task, but done well and it could be a life-changing one.

There are many important details to convey to prospective investors; this should be done in a clear and concise manner to make it as effective as possible.

We hope you enjoyed reading this article and have helped you gain an understanding of what is expected when writing an investment proposal.

Luke Baldwin

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