Financial Proposal Writing

I shared my standard OM outline with lenders and asked if they'd provide feedback on what's most important to them. Here's the lender-approved format: 1) Executive Summary ‣ Tell the entire story in a page or 2. This includes an overview of the transaction, location, business plan, sponsorship, timing, key underwriting metrics, etc. ‣ This will be easier to digest if its broken into subsections instead of a giant wall of text. 2) Financing Request ‣ Loan purpose (acquisition, construction, etc.) ‣ Loan amount ‣ Loan term ‣ Loan metrics (LTC, LTV, DY, etc.) ‣ Who or what entity is the Guarantor? ‣ Sources and Uses table 3) Investment Highlights ‣ In this case, the "investment" is the lender's debt investment in this deal, so in addition to common highlights like property and location, the highlights can include lender-focused items like strength of the sponsor, conservative loan metrics, etc. 4) Risks & Mitigants ‣ Every deal has challenges and lenders will appreciate that you're highlighting them. 5) Property Overview ‣ Past – When was the property built, renovated, originally purchased (for a refi), historical occupancy, initial tenancy date, etc. ‣ Present – Current size, condition, occupancy, rent roll, parking, professional photos, site plans, floor plans, etc. For construction, you need to also include the status of architectural drawings, permitting, GMP, etc. ‣ Future – Renovation/construction plan, projected costs, timeline, renderings, etc. 6) Location Overview ‣ Important demand drivers, e.g., proximity to public transportation, major nearby employers, etc. ‣ Maps (regional and neighborhood) ‣ Meaningful neighborhood amenities 7) Market Overview ‣ Demand metrics, e.g. tenants in the market (if commercial), population/job growth, etc. ‣ Rent/vacancy stats ‣ Rent comps + map ‣ Sale comps + map ‣ Development pipeline 8) Financials ‣ Historical operating statements ‣ In-place and stabilized pro forma ‣ Stabilized valuation ‣ 5 to 10-year annual cash flow ‣ Assumptions 9) Sponsor Overview ‣ Company overview + history ‣ Similar past projects / track record ‣ Key principals + background ‣ Prior debt and equity partners ‣ For construction, include the rest of the development team (GC, architect, etc.) ‣ If there's an institutional LP, they should be included. Additional Notes: ‣ Attach a corresponding Excel model with working formulas (not hard-coded) when sending the OM. Lenders will need to take data from the OM and put it in their own format for their IC memo. It's much easier and faster to grab this data from tables in Excel. ‣ Lenders are going to want more information on the sponsor(s) like guarantor financials, have they had any past foreclosures, etc. You don't need to include this information in the OM given the sensitive nature, but be prepared to provide it separately. Anything else you'd add? 'Like' and Repost if this may benefit any of your connections.

When raising capital and speaking to investors, there are several key pieces of information you should have prepared to present yourself as credible, organized, and investment-ready: 1. Financials ▪︎Revenue, Profit Margins, and Cash Flow: Investors need a detailed understanding of your financial health. ▪︎Projections: Show financial forecasts for the next 3-5 years. Be ready to explain how you will meet your targets. ▪︎Burn Rate: If your business isn’t yet profitable, clearly explain how much money you are spending monthly and when you expect to break even. ▪︎Valuation: Be prepared to explain how you arrived at your current valuation. 2. Clear Use of Funds ▪︎Capital Allocation: Investors want to know exactly how their money will be used. Will it go toward hiring, marketing, product development, or scaling operations? ▪︎Milestones: Outline specific milestones the funding will help you achieve, such as launching a new product or entering a new market. 3. Business Model and Market Opportunity ▪︎Business Model: Clearly explain how your company makes money and how scalable the model is. ▪︎Total Addressable Market (TAM): Investors want to understand the size of the opportunity. How big is the market, and what share can you realistically capture? ▪︎Competitive Landscape: Be able to discuss your competitors and explain how you are differentiated. 4. Traction ▪︎Key Metrics: Have data to show growth (e.g., user acquisition, customer retention, sales, or partnerships). ▪︎Proof of Concept: Demonstrate product-market fit through customer feedback, pilot programs, or revenue generated. ▪︎Case Studies: Provide examples of how your product or service has performed successfully with real customers. 5. Team ▪︎Founders’ Experience: Investors often invest as much in the team as they do in the business idea. Highlight your team’s qualifications, relevant industry experience, and ability to execute the business plan. ▪︎Advisors: If applicable, mention any industry experts or reputable advisors involved with your company. 6. Exit Strategy ▪︎Investor Return: Explain how investors will make a return on their investment. This could be through an IPO, acquisition, or other liquidity event. ▪︎Timeline: Provide a realistic timeframe for achieving these exits. 7. Risk Factors ▪︎Challenges: Be honest about the risks your business faces (e.g., market competition, regulatory challenges, or technological development). ▪︎Mitigation Plans: Show that you have a clear strategy to manage these risks. 8. Legal and Compliance Information ▪︎Intellectual Property: If applicable, ensure that you have documentation related to patents or trademarks. ▪︎Regulatory Compliance: If your business operates in a regulated industry, be ready to discuss your compliance with relevant laws and regulations. 9. Pitch Deck Prepare a concise and visually appealing pitch deck summarizing all the above points. It should tell your business story while keeping investors engaged.

Big visions require solid numbers. But numbers alone won’t win trust. You need projections that show both growth and security. Here’s how you can craft financial projections that inspire confidence: 💡 Start with Realistic Assumptions. Investors can spot overly optimistic projections. Ground your estimates in current market trends and reliable data. 💡 Highlight Key Metrics. Revenue, profit margins, and cash flow are non-negotiables. Focus on the numbers investors care about. 💡 Create a Detailed Cash Flow Forecast. It shows how you manage expenses and ensure liquidity. This reassures investors about your financial control. 💡 Include Multiple Scenarios. Show the best, worst, and expected cases. This proves you've thought through uncertainties. 💡 Be Transparent About Assumptions. Break down your assumptions clearly. Transparency builds trust. 💡 Plan for the Long Term. Don’t stop at a year or two. Show five-year projections to prove sustainability. 💡 Use Visuals. Presenting your financials through graphs and charts makes them easier to digest. Share this with someone preparing their pitch for investors. P.S. Investors want security with potential. Make sure your numbers tell that story. #financialprojection #fundraising #investorpitchdeck #financials #pitchdecks

Selling to leadership is tough. Learn to speak finance, and everything changes. (This works for both B2B sales and internal pitches.) Speak the language of financial metrics and business impact, and you’ll earn buy-in. Whether you’re pitching a product, service, or internal idea, this skill makes you a trusted partner to decision-makers. Want to dive deeper? Download my free guide “10 Levels of Profitability” here: https://bit.ly/40pY3CQ Here’s why: Executives don’t want fluff. They need to know *how* your solution or proposal will impact their business financially. Here’s how to make your pitch resonate: 1️⃣ Talk Margins, Not Just Savings ↳ Show how your solution improves gross, operating, or net profit margins. Make it clear how it improves topline or streamlines processes to ultimately add value to the bottom line. 2️⃣ Connect to Cash Flow ↳ Highlight how your solution will boost cash flow, not just the bottom-line. Smart executives prioritize cash flow over simple revenue increases or cost savings because it keeps the business stable and flexible. 3️⃣ Show ROI and Payback Period ↳ Present clear numbers on return on investment (ROI) and how quickly they’ll see a payback. Executives need to know when their investment will yield results. 4️⃣ Impact Key Financial Ratios ↳ Explain how your proposal enhances key metrics like ROE (Return on Equity), ROA (Return on Assets), or EBITDA. This demonstrates that you understand their financial framework and how your solution strengthens it. 5️⃣ Talk Risk Management ↳ Show that you’ve considered potential downsides. Demonstrate how your proposal mitigates financial risk and supports long-term stability—not just quick gains. Why this matters: 1️⃣ You Stand Out ↳ Most sales pitches and internal proposals focus on benefits. When you speak in terms of financial strategy and impact, you differentiate yourself. 2️⃣ You Build Trust ↳ Speaking their language shows you understand their challenges, priorities, and goals. 3️⃣ You Become Indispensable ↳ When you can prove your solution impacts key business metrics, you shift from being just another vendor or team member to a trusted advisor. If you want to learn finance strategy to elevate your pitch and proposals, join 3,000 learning with me here: https://bit.ly/famcol Remember: Learn to speak finance, and you’ll open doors that most can’t. ♻️ 𝐋𝐢𝐤𝐞, 𝐂𝐨𝐦𝐦𝐞𝐧𝐭, 𝐑𝐞𝐩𝐨𝐬𝐭 to help someone else. And follow Oana Labes, MBA, CPA for more  

In enterprise sales, your proposal/agreement is the moment of decision for the deal. Before you send over your proposal, make sure it has these 3 commitments. A proposal is more than pricing. It’s a commitment document. When done right, it helps your customer understand what they’re buying and guides them how to decide to move forward. Here are the 3 commitments every great proposal should include: 1. Financial Commitment Spell out the commercial terms in clear language It should be so simple that a 10 year old can understand it. Break down your pricing components and summarize the total cost for the first year. Your customer should be able to explain it to their CFO without help from you. 2. Effort Commitment Set expectations for what it’s going to take to implement and go live. What happens after the contract is signed? Include a timeline for implementation, onboarding, and go-live. Be specific about what happens if they don’t go live by the proposed go live date. Will they be charged for the subscription? Be clear about this. Your customer should never be surprised by the amount of work that is required after the signature. Even better if you offer to do much of the work for them. 3. Decision Commitment Every proposal needs an expiration date. If you leave it open-ended, you’re inviting ghosting and indecision. Create a clear deadline so the customer knows when a decision needs to be made. Proposals should accelerate your sale, but you have to make sure these three things are included. ______ How about you, what are your best proposal tips?