FREE online courses on Venture Capital Funding - Major Sections of a Business Proposal - Production

 

Describe all stages of the production process and whatever affects production. A key point here is production costs. How did you arrive at the cost of goods sold?

 

Production characteristics

This section should focus on the production characteristics:

·         Is it a difficult or a sophisticated production process?

·         Are there many components or just a few?

·         How much value does the company actually add to the product?

·         How much is purchased in sub-assembly format?

·         What components are crucial to the production process?

·         Is it a standard production process or does it have many difficult tasks?

·         If it is a complicated process, will people with special skills be needed to carry it out?

 

Suppliers

Describe the companies that supply your company with raw materials or other necessary items. At this point in the proposal, you need to list the three or four

top suppliers and the items they supply in tabular form:

 

 

Suppliers	Type of Product	Rupee value of the product
Supplier A	Product A	20,000
Supplier B	Product B	15,000
Supplier C	Product C	10,000

 

Later, you may be required to provide the Venture Capitalist with a complete list of suppliers of major components. The Venture Capitalist will use the list to call suppliers and verify your list.

 

Subcontractors

If subcontractors or other people complete part of the work in bringing the product to the market place, describe them and the relationship with them. List several of the subcontractors and the rupee value of work you are contracting with them. Later you will need to supply the Venture Capitalist with a complete list of subcontractors, names, addresses, telephone numbers and volume so the Venture Capitalist can contact these subcontractors.

 

Backlog

Indicate the amount of backlog outstanding for the company's products. List the items requested and the size of the order. You can also give the Venture Capitalist a good idea of the backlog by listing the top three or four customers and their backlog of orders.

 

Later in your meeting with the Venture Capitalist you should show him a complete list of the backlog so he can see where the orders are coming from and who purchases the product.