Definition of Commercial Project
Commercial project is a business idea, business plan or proposal, the main goal of which is to make profit. Your commercial project may concern making, selling or buying some goods, products or services.
While preparing the submission form
of a commercial project, consider the meanings and the contents of the sections below.
Performance, Portfolio and Reports
In this section you need to give the funder brief information about you or your organization.
This is with the aim of convincing the investor that you are the best person or organisation to undertake the project and the funds are going to be used efficiently.
In this section include the following:
- your biography or organisation’s history
- your track records and portfolio
- financial reports
The summary of the project is its abstract without the details of the project, which includes:
a) the title of the project,
b) brief description,
c) location of implementation,
d) type and sphere of the of project
e) type and size of required investment,
f) the term of investment and the conditions of return.
Short Description of Investment Project
Your investment project should start with a brief description of the proposed investment idea. This part of your proposal is the summery of your project that potential investors will see and read first.
So, do your best to briefly describe the key points and main features of your proposed project, and make sure that the project description is written well.
The Term of Investment and the Conditions of Return
The information of this section is being published in summary. The investment period is the period during which the invested funds will be used. In the summary, investors should be shown how and when their investment will be returned and what they will gain from investing in your project. Write more detailed information in the project schedule and funding (financing) sections.
The data described in the summary are required fields that must be completed in the project submission form.
In this section justify the need and expediency of the project. with the information on the target customers, their problem, your solution, and the benefits of your solution.
Marketing And Sales Method
In your project you must show your market research results and what your action plans to dominate your market. You need to come up with different strategies and methods that you can implement in order to maintain or gain a market lead. So, it is important to list all these planned action plans into your investment proposal.
To be able to assess your project’s potential investors must have information on your planned marketing and advertising strategies,
pricing models, employee acquisition process, product sources, etc.
In particular, while writing this section of your proposal, try to provide information on:
- projected production volumes, unit prices, and market share of proposed venture,
- potential users of products and distribution options indicating where your business will sell its products or services,
- present sources of supply for products, future competition and possibility that market may be satisfied by substitute products,
- advertising and promotion plans and strategies, etc.
You need to also include all the technical and operational aspect
of your planned business.
This means that your proposal needs to include information about the administration of business practices, people you intend to hire for the business, the business location, the operating costs, the equipment suppliers, the sources of raw materials, manpower resources, and other expenditures.
So, as much as it refers to your idea, in your proposed project include information on:
- special technical complexities and need for know-how and special skills to create the highest level of efficiency possible,
- possible suppliers of equipment,
- availability of manpower and of infrastructure facilities such as transport and communications, power, water, gas, etc.,
- source, cost, and quality of raw material supply and relations with support industries,
- import restrictions on required raw materials, if it is applicable, etc.
This section of your project will state what will any investor get out of funding your project. So, in project write down information on investment requirements, project financing, and returns.
Your project will provide investors with a clear understanding of how much their money or resources can help your business and how much they will gain in return.
So, in this section try to clearly describe:
- the source of funds,
- the return of investment,
- projected gains and losses,
- the profitability of the business,
- possible loans, etc.
In your proposed project write also timetable envisaged for project preparation and completion. This will let potential investors know the length of their agreement with you (the business owner). This is also important for business owners since timetables allow to keep on track with own business goals.
So, in your project provide details on your planned deadlines of operations, internal time frames or schedules of your planned activity.
This section of your proposal should include information on how investors can divest of their investments with your business or company. Exit strategy should also include information for how your business will deal with business failure.
Common exit strategies include being acquired by another company, the sale of equity, or a management or employee buyout.
Thus, in your project plan how you will transfer ownership of the business down the line, whether you choose to sell the business, or try to scale it and seek to be acquired.
Here you may add any information you think is important for investors.
For example, if it is applicable, you may write about specific government incentives and support available to project, expected contribution of project to economic development, etc.