Hello! This is LUMOS, the automated financial management solution for government-funded R&D and business projects.

For early-stage startups, securing government-funded projects is essential. However, getting accepted is no easy task. Competition is fierce, and many founders struggle with how to draft their proposals.

Today, we will discuss how to write an effective business proposal. A government-funded project proposal differs significantly from an investor relations (IR) pitch deck. Unlike private investment IR, government projects utilize public funds, which makes fairness in the evaluation procedures and formats critical. To ensure this fairness, the required document formats, evaluation methods, and procedures are strictly regulated by law.

While the idea of legally regulated formats might sound daunting, it actually means there is an established system with clear formulas and target areas to address. Let us break down the formula for writing a successful government proposal.

The standard legal table of contents for these proposals is shown above. It is divided into four main sections: Problem - Solution (Feasibility) - Scale-up (Growth Strategy) - Team. This framework is commonly referred to as PSST.

Each main section is further divided into detailed subsections, complete with drafting guidelines. These subsections and guidelines represent the formal checklist for your proposal. Reviewers utilize this framework to assign scores for each section to ensure evaluating fairness. By aligning closely with this formula, you can write a highly successful proposal. Let us dive into the details.

1. Problem Identification

1-1. Motivation for the Business Idea & Development Progress (History)

In each subsection, there are key areas emphasized with numbers and underlines. Because evaluators reference these specific points to assign scores, you must address them thoroughly and accurately.

• External Motivation: Detail the market problems comprehensively, supporting your claims with data from interviews, surveys, or relevant research.

• Internal Motivation: Align your internal engineering or business motivation closely with the external market motivations described above.

• Development Progress (History): Present your development track record along with the results of your Minimum Viable Product (MVP) or initial testing.

1-2. Objectives of the Proposed Project

• Solution: Clearly explain current solutions and explicitly detail how your approach differentiates itself.

• Necessity: Address the gaps and pain points of current solutions to demonstrate why your project is necessary.

• Purpose: Elaborate on the specific benefits and value your solution will deliver to the market and society.

1-3. Target Market Analysis

• Market Size & Status: Quantify your current target market size in detail (TAM, SAM, SOM).

• Characteristics: Describe the distinct characteristics of your market (e.g., B2B SaaS, B2C, etc.).

• Competitive Intensity: Analyze the number of competitors and their revenue within the current market to illustrate the level of competition.

• Future Outlook: Demonstrate market growth potential and outlook backed by statistical data.

• Customer Analysis: Define and present the profiled characteristics of your target customers.

We have covered the outline for the Problem section of the proposal. In our next guide, we will explore instructions on proving Feasibility.

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• Guiding Guide to Business Proposals Part 1 - Problem Identification (Link)

• Guiding Guide to Business Proposals Part 2 - Feasibility (Link)

• Guiding Guide to Business Proposals Part 3 - Growth Strategy (Link)