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Investigating New Offerings

How to get a company's prospectus.

A company's prospectus is a formal legal document designed to provide information and full details about an investment offering for sale to the public. Companies are required to file the documents with the Securities and Exchange Commission (SEC) . The prospectus documents must be made available to a prospective public investor prior to purchase. Investors are encouraged to read and understand the terms of the offering before making a purchase decision.

Key Takeaways

• A prospectus is a formal document that is required by and filed with the SEC that provides details about an investment offering for sale to the public.
• This document is used to help potential investors make a more informed decision on whether or not to invest.
• EDGAR is a public online tool that allows individuals and analysts to search for and retrieve corporate prospectus filings.
• Investors may also seek to obtain a prospectus through their broker or by contacting a company's investor relations department.

Mutual funds and hedge funds must also offer potential investors a prospectus; however, here we focus on firms' prospectus prior to a corporate IPO or secondary offering.

What's in a Prospectus?

Company prospectus documents have become increasingly accessible with the advent of the internet. Most companies have a corporate website with a section labeled Investor Relations that should have available a wide range of company documentation, including quarterly and annual reports . Many investment websites may also offer links directly to a company's or fund's prospectus documents. 

The prospectus document is issued to inform investors of the potential risks involved with investing in a particular stock or mutual fund. The information provided in the prospectus also serves as a form of protection for the issuing company against any claims that information was not fully disclosed or detailed prior to the investor putting money into an investment.

Companies that wish to offer stock or bond for sale to the public must file a prospectus as part of the registration process with the SEC. Companies must file a preliminary and final prospectus. However, the SEC has specific guidelines as to what's listed in a prospectus for various securities.

The  preliminary prospectus (sometimes known as a red herring ) is the first offering document provided by a security issuer and includes most of the details of the business and transaction. However, the preliminary prospectus doesn't contain the number of shares to be issued or price information. Typically, the preliminary prospectus is used to gauge interest in the market for the security being proposed.

The final prospectus contains the complete details of the investment offering to the public. The final prospectus contains any finalized background information as well as the number of shares or certificates to be issued and the  offering price .

A prospectus will include the following information at a minimum:

• A brief summary of the company’s background and financial information
• The name of the company issuing the stock
• The number of shares
• Type of securities being offered
• Whether an offering is public or private
• Names of the company’s principals
• Names of the banks or financial companies performing the underwriting

Some companies are allowed to file an abridged prospectus, which is a prospectus but contains some of the same information as the final prospectus.

The first offering is detailed by the preliminary prospectus provided by the security issuer, which outlines information about the company, its business plan and structure, and the transaction in question. The preliminary document also discloses names of the company's principals, details about the amount the underwriters are earning per sale and specifies whether the offering is public or private.

The final prospectus contains details and information about the finalized offering, including the precise number of shares or certificates being issued and the offering price of shares. 

In the case of  mutual funds , a fund prospectus contains information on and details about its objectives, proposed  investment strategies , perceived potential risks, projected performance, distribution policy, fees and expenses and fund management.

In the U.S., all companies filing with the SEC must supply their documentation to a service known as EDGAR , or the Electronic Data Gathering, Analysis and Retrieval System. The EDGAR website allows you to get all the filings of a company , including its prospectus and annual reports, which include financial statements. The EDGAR database can be searched using the company ticker symbol. EDGAR’s Companies & Other Filers Search will list a company's filings with the most recent filings shown first. Most of the filings made through EDGAR are available for download or can be viewed for free.

Canada has a similar website known as SEDAR+ , which includes SEDAR (System for Electronic Document Analysis and Retrieval), which provides company filings on the web. Like EDGAR, the SEDAR+ website provides easy access to public company documentation.

As an example, the figure below, produced from EDGAR, shows a sample prospectus for the company PNC Financial Group's offering of corporate bonds maturing in the year 2024.

We can see the following information listed:

• Securities offered, which are senior notes that pay 3.50%
• The maturity date of the notes, which is January 23, 2024
• The issue date, which has yet to be determined
• How interest will be paid and denominations to be issued
• Use of proceeds or how the money raised will be spent, which might include financing operations, paying down debt, or buying back stock

U.S. Securities and Exchange Commission. " Updated Investor Bulletin: Investing in an IPO ."

Cornell Law School. “ Preliminary Prospectus .”

Investor.gov. " Registration Under the Securities Act of 1933 ."

Investor.gov. " Mutual Fund Prospectus ."

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A prospectus is a legal document required by the U.S. Securities and Exchange Commission (SEC) for companies that offer securities for sale to the public. Its purpose is to provide potential investors with information including the company’s financial health, the risks associated with investing in its securities, and associated fees and expenses. Mutual funds, exchange-traded funds (ETFs), public offerings and other common investments have prospectuses that you can look over before investing.

Here’s more about the purpose of a prospectus, how to find one and what key information to look for when reading this type of document.

What is the purpose of a prospectus?

The primary purpose of a prospectus is to provide potential investors with the information they need to make informed investment decisions, including the potential risks involved with the investment.

By law, companies that offer securities for sale must provide potential investors with a prospectus. The document must be filed with the SEC and is subject to strict regulatory requirements. Current shareholders must also be provided with a copy of the prospectus including summary prospectuses that are issued after any updates or changes to the fund’s managers or other key business areas.

What does a prospectus include?

The SEC has guidelines for what must be included in a prospectus in order to help investors compare different investments more easily. A prospectus for shares in a fund company (think mutual funds or ETFs, for instance) will generally have at least the following information:

• Investment objectives/goals
• Fee table and expenses
• Investment strategies
• Investments, risks and performance
• Management information, including investment advisors and portfolio managers
• How to buy and sell fund shares
• Tax information
• Financial intermediary compensation

Prospectuses may differ depending on the nature of the investment offering. For example, an initial public offering for a company’s stock will be different from an established mutual fund prospectus. The IPO prospectus typically won’t have a reporting history since it’s a new offering, and will also include a “use of proceeds” section that covers how the company will use the money raised in the offering.

For stock in a company, a prospectus and/or prospectus supplement will typically contain some or all of the following:

• Summary of consolidated financial data
• Ratio of earnings to fixed charges
• Risk factors
• Use of proceeds
• Description and price range of common stock or securities
• Plan of distribution, dividend policy, capitalization and dilution
• Underwriting information
• Legal information

Summary prospectus vs statutory prospectus

A summary prospectus is a disclosure document that includes key information from the beginning of a complete prospectus and recent updates but doesn’t include all the sections and details of a statutory prospectus. As the name suggests, summary prospectuses are typically abbreviated versions of statutory prospectuses.

Example of a prospectus

How to find a prospectus

For many investments, you can find prospectuses on the issuing company’s website. Vanguard, for example, lists its ETF prospectuses on one page. You can also find them under “fund literature,” which also typically includes shareholder reports and statements of additional information. Fidelity and other large companies also have dedicated pages that host all relevant fund literature.

In addition to company websites, the government has EDGAR , a database where you can access the filings all public companies make with the SEC, including prospectuses. This is where you’ll find information for regular companies that offer common stock. The database can be a little tricky to use, but this EDGAR guide can help you navigate the search function. It also has a glossary of the different form types you’ll find in the database.

And if you’re already a shareholder of a fund, you should receive a prospectus from the investment company and other financial documents on a periodic basis, as required by the SEC.

Where to find important information on a prospectus

When reviewing a prospectus, you’ll want to read through the risks associated with the investment, the company’s financials and management team, along with fees and expenses. The investment objectives and strategies are also important to review to see if they align with what you want and your risk tolerance .

Most prospectuses have a table of contents and are in PDF form, which means you can easily search for keywords using the (control + F) search function.

Bottom line

A prospectus is an important legal document that provides potential investors with information about a company’s investment offering. Investors should review prospectuses carefully to understand the risks associated with an investment and verify whether the company’s objectives align with their own. If you still have questions or concerns about a particular investment opportunity after reading a prospectus, consult a financial advisor for further guidance.

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How to Write an Effective Business Sale Prospectus

When it comes to selling your business, a well-crafted business sale prospectus is essential for attracting potential buyers and getting the best price possible. A prospectus is a comprehensive document that showcases your business , its operations, financials, and future potential. With a perfect blend of storytelling and data, an effective prospectus can be the key to unlocking your business’s true value. In this detailed guide, we will discuss how to write an effective business sale prospectus, incorporating engaging headings, valuable insights, and best SEO practices to make your document stand out.

Understanding the Purpose of a Business Sale Prospectus

Before diving into the details, it’s crucial to understand the purpose of a business sale prospectus. A prospectus serves as a sales tool that provides potential buyers with an in-depth look into your business, its performance, and its growth prospects. By presenting a clear, concise, and compelling narrative, your prospectus can pique the interest of buyers and help you secure a successful sale.

Gathering the Right Information

To craft an impactful prospectus, you need to gather relevant information that highlights the strengths and potential of your business. This includes:

• Company history and background
• Business model and value proposition
• Market analysis and competitive landscape
• Financials and key performance indicators (KPIs)
• The management team and organizational structure
• Growth opportunities and future plans

Writing a Captivating Executive Summary

The executive summary is the first section of your prospectus and should grab the reader’s attention right away. It should provide an overview of your business and its key selling points, including:

• A brief introduction to your company and its mission
• A snapshot of your financial performance and growth trajectory
• Highlights of your competitive advantages and unique value proposition
• A summary of your business’s potential for future growth

Showcasing Your Business Model and Value Proposition

In this section, delve into the details of your business model and explain how your company generates revenue. Highlight the unique aspects of your value proposition and discuss how it differentiates your business from competitors. Use engaging headings and clear explanations to make this section easy to understand and navigate.

Analyzing Your Market and Competitive Landscape

Provide an overview of the market your business operates in, including market size, growth trends, and key customer segments. Identify your main competitors and discuss your business’s competitive advantages, such as superior products, services, or intellectual property. Use data-driven insights to showcase your market position and growth potential.

Presenting Financials and KPIs

A crucial aspect of your prospectus is the presentation of your financial information and KPIs. This section should include the following:

• Historical financial statements (income statement, balance sheet, cash flow statement)
• Financial projections and assumptions
• Key performance indicators relevant to your industry (e.g., customer acquisition cost, lifetime value, churn rate)
• Explanation of any irregularities or unique aspects of your financials

Highlighting Your Management Team and Organizational Structure

Introduce your management team and highlight their relevant experience and qualifications. Showcase their contributions to the company’s success and explain how they will continue to drive growth in the future. Also, provide an overview of your organizational structure, including key departments and roles.

Discussing Growth Opportunities and Future Plans

In this section, outline your plans for future growth and how potential buyers can capitalize on these opportunities. This might include expanding into new markets, developing new products or services, or leveraging strategic partnerships.

Crafting a Compelling Conclusion

Wrap up your business sale prospectus with a strong conclusion that reinforces your main selling points and entices potential buyers to take the next step. Summarize the key aspects of your business, its competitive advantages, and growth opportunities. Remind readers why your business is a valuable investment and encourage them to explore further by contacting you or your representatives.

Ensuring SEO Optimization and Readability

To ensure your prospectus ranks well in search engines and reaches a wider audience, implement SEO best practices:

• Incorporate relevant long-tail keywords throughout the document without overstuffing
• Use descriptive and engaging headings to break up sections and improve readability
• Optimize your document’s metadata, including title tags and meta descriptions, to enhance search engine visibility
• Keep paragraphs concise and use clear, straightforward language

Bonus Tip:Take the time to proofread and edit it thoroughly. Use tools like Grammarly.com to identify and fix grammar errors, and consider enlisting a professional editor or copywriter to ensure your document is polished and compelling.

Writing an effective business sale prospectus is a critical step in marketing your business and attracting the right buyers. By providing a comprehensive overview of your company’s history, value proposition, financial performance, and growth potential, you can showcase the unique aspects that make your business a valuable investment opportunity. Following the tips and best practices outlined in this guide, you can create a compelling prospectus that stands out from the competition and helps you secure the best possible price for your business.

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Write an Investment Prospectus

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Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom. Also note: This is not legal advice.

Introduction

Creating a prospectus can be daunting and it is essential for investors and companies to ensure that it is accurate and compliant with applicable laws. A prospectus is a document provided by a company which outlines the offering of a security to potential investors; containing information about the firm’s past performance, current financial standing and future plans. It provides all the necessary details for investors to make an informed decision about whether or not to invest in said company, as well as safeguarding their investment by ensuring that the business is abiding by relevant regulations.

The prospectus also serves another purpose - to attract investors. By providing thorough information, it builds trust between them and the business while creating confidence in its legitimacy. This can be particularly beneficial for start-up organisations who may not have an established track record yet. For companies, having this document demonstrates their commitment to transparency and accountability which both increases credibility with stakeholders as well as establishing trust amongst them.

At Genie AI, we are here to help you make this process easier - providing detailed step-by-step guidance on how to create a secure legal template library without paying a lawyer fee along with access our free template library today! Our millions of datapoints teach AI what constitutes market-standard language for such documents; so whether you’re an experienced attorney or just starting out in writing your first draft – we’ve got you covered! With us, you can avoid any legal pitfalls whilst ensuring that you protect both yourself and your investors from potential risks down the line; no matter what stage your company is at. Read on below for more advice from Genie AI on how best to create an effective prospectus today!

Definitions (feel free to skip)

Executive Summary - A summary of the main points of a document that is typically located at the beginning of the document. Prospectus - A document that provides detailed information about an investment opportunity, including an overview of the investment, the management team, and the financial plan. Target Audience - The specific group of people that a document or message is intended for.

Understanding the Basics of Investment Prospectus Writing

Researching common prospectus formats, gaining an understanding of the basics of prospectus writing, defining your audience and goals, identifying who will be reading the prospectus, outlining the primary goal of the document, developing an outline and writing plan, brainstorming key points to include, organizing the points into a logical outline, establishing a timeline for writing the prospectus, crafting an effective executive summary, summarizing the main points of the document, highlighting the investment opportunity and its benefits, outlining the management team and operating structure, presenting the investment opportunity and its benefits, describing the investment opportunity in detail, explaining the potential benefits of the investment, presenting potential returns and roi, analyzing the market and the competition, researching the relevant market, identifying the competition, explaining the potential advantages of the investment, describing the management team, outlining the qualifications of key team members, describing the skills and experience of the management team, explaining the operating structure and financial plan, presenting the operating structure of the investment, outlining the financial plan for the investment, explaining the sources of funding, outlining the risk factors, identifying potential risks associated with the investment, explaining the strategies for mitigating those risks, finalizing and distributing the prospectus, proofreading and editing the document, formatting the document for printing or digital distribution, distributing the prospectus to the intended audience, get started.

• Learn about the purpose of an investment prospectus
• Review the SEC requirements for writing a prospectus
• Familiarize yourself with the key components of a prospectus, such as risks, fees, and performance
• Understand who the intended audience is for the prospectus
• Research different types of prospectus writing

Once you have a good understanding of the basics of investment prospectus writing, you can move on to the next step in the guide.

• Gather samples of investment prospectuses from various sources such as the SEC, investment banks, and other institutions
• Read through the samples to get an idea of the common format and structure
• Note the language and tone used in the prospectuses
• Identify the common topics and sections included in the prospectus
• Once you have a thorough understanding of the common prospectus formats, you can move on to the next step in the guide.
• Read up on the basics of investment prospectus writing, such as what should be included, how to structure it and what the various sections are
• Understand the purpose of a prospectus, which is to provide potential investors with information about a company’s financial situation and future plans
• Familiarize yourself with the Securities and Exchange Commission’s rules and regulations for creating a prospectus
• Research and analyze the competition to determine what other companies in the same industry are doing and how to make your prospectus stand out
• Know the different types of prospectuses (e.g. private placement memorandum, offering circular, private-placement letter)

You’ll know you’ve completed this step when you have a good understanding of the basics of prospectus writing, the purpose of a prospectus, SEC regulations, the competition, and the different types of prospectuses.

• Identify who is likely to read the prospectus (e.g. potential investors, investment analysts, etc.)
• Consider what the primary goals of the prospectus are (e.g. to inform, to persuade, etc.)
• Make sure the language used in the prospectus is suitable for the audience
• Tailor the content of the prospectus to the target audience
• Define the key message that you want to communicate to the reader
• When you are satisfied that the prospectus is written for the intended audience, with the goals in mind, you can move on to the next step.
• Identify the specific individuals or organizations who will be reading the prospectus.
• Research the background and interests of the readers to ensure that the correct tone and level of detail is used.
• Decide whether the prospectus should be tailored for each reader or sent out in a single version.
• When you have identified the readers and their needs, you can move on to the next step of outlining the primary goal of the document.
• Determine the primary goal of the document and state it clearly
• Outline the supporting information that will be included in the document
• Ensure the primary goal is clearly communicated and that the information is relevant and useful to the reader
• Review the outline and verify that it accurately reflects the goal of the document
• When the outline is finalized, the next step can begin
• Create a timeline for when each section needs to be completed
• Develop an outline for the document, including a list of topics to be covered in each section
• Consider the target audience when outlining the document
• Make a list of the information and research materials you will need to complete each section of the document
• Outline the structure of the document - what information will go at the beginning, in the middle, and at the end
• When you have an outline and writing plan in place, you will have a solid foundation for creating your investment prospectus
• Identify the purpose of the investment prospectus
• Look at the investor’s goals and needs
• Research the target market
• Identify key points of the investment
• Determine what financial data needs to be included
• Determine other information that should be included in the prospectus
• Research comparable investments in the same sector
• When you have a list of key points to include in the prospectus, check it off your list and move on to the next step.
• Create an outline that includes all the key points you brainstormed
• Decide on a flow that works best for the prospectus
• Group related points together in the outline
• Prioritize the points and determine which should be included in the introduction, body, and conclusion
• Check that the outline is organized in a logical and clear way
• When the outline is complete, you can move on to the next step of writing the prospectus.
• Gather the necessary information from the team and potential investors
• Decide on a timeline for the project and document it
• Set a schedule for each step of the process
• Assign tasks to project members and allocate sufficient time for each task
• Determine when the prospectus will be completed and when it will be shared with potential investors
• Track project progress to ensure completion on time

How you’ll know when you can check this off your list and move on to the next step:

• When all tasks associated with the prospectus are complete and the timeline is properly documented.
• Define the target audience of the executive summary
• Consider what information should be included in the summary
• Keep the summary concise and direct
• Highlight the most important points of the prospectus
• Focus on the benefits of investing
• Describe the company and its products or services
• Explain the unique value proposition of the company
• Include any competitive advantages
• Summarize the key financial and operational objectives
• Provide a conclusion that ties all the elements together

When you can check this off your list and move on to the next step:

• When you have incorporated all the key elements of an executive summary into your prospectus.
• Understand the purpose of the document and outline the main points you want to include
• Create a summary of the main points that is clear and concise
• Keep the summary short and straightforward
• Check for any information that is essential to understanding the document and make sure to include it in the summary
• Check for accuracy, clarity, and relevance
• Once you are satisfied with the summary, you can consider this step complete and move on to the next step.
• Describe the project in detail and explain why it’s a good investment opportunity
• Highlight the main points of the project, such as expected returns, potential risks, timeline, and any other relevant information
• Explain how the project will benefit investors, such as tax incentives, potential for growth, etc
• Include any other relevant details that make this project a viable option for investors
• You can check this off your list when you have all the necessary information included in the document and it is written in a clear and concise way.
• Create an executive summary of the investment opportunity and its benefits
• Identify the management team and what roles they will play
• Explain the structure of the business and how it will operate
• Detail the experience and qualifications of the management team
• Outline the organizational structure and how it will be managed
• Describe any relevant industry experience of the management team
• Provide a timeline of the activities needed to launch the business

Once you have outlined the management team and operating structure, you can move on to the next step in the guide.

• Provide a brief overview of the investment opportunity and the benefits it offers
• Explain why this investment opportunity is attractive and why investors should pursue it
• Identify the potential returns of the investment, including any potential risks
• Describe the competitive advantage the investment has over other opportunities
• Summarize the key points of the investment opportunity to create a compelling case

When you have provided an overview of the investment opportunity and its benefits, you will know you can check this step off your list and move on to the next step.

• Research the company, including its history, finances, management, competitive landscape, and other relevant factors
• Outline the potential for returns and risks associated with the investment
• Describe the investment opportunity in detail, including an overview of the company, its potential markets, products or services, and its competitive advantage
• Provide an analysis of the potential for return on investment
• Explain the potential risks associated with the investment

When this step is complete, you should have a clear and comprehensive description of the investment opportunity and its potential risks and rewards.

• Outline the long-term benefits of the investment, including how it is likely to increase in value over time
• Discuss the different types of returns that investors can expect to receive
• Explain the tax benefits associated with the investment, if any
• Describe the potential social, environmental, or economic benefits of the investment
• Highlight any other potential benefits that the investment could bring

You will know you are finished with this step when you have included all potential benefits of the investment in your prospectus.

• Gather all of the necessary information about the investment including past performance, current market trends, and future projections
• Determine the expected return on investment (ROI) for the investment and present it in the prospectus
• Calculate the potential risk associated with the investment
• Present a realistic timeline for when the investor can expect to see returns
• Explain the potential tax implications and the investor’s responsibility to pay taxes

When you have completed this step, you will have presented realistic potential returns and ROI, as well as the associated risks and timeline.

• Research the current market trends for the investment category, as well as competitors in the space
• Evaluate the strengths and weaknesses of the competition in relation to the investment you are offering
• Research the overall environment of the target market you have identified, including any external factors that may influence the success of the investment
• Use surveys, focus groups, interviews, etc. to gather insights on how the market perceives the investment you are offering
• Analyze the data you have collected to identify any potential opportunities or threats to the success of the investment
• When you have completed your analysis, you should have a good understanding of the current market situation and how your investment will fit into it.
• Gather data on the industry, such as market size, growth rate, potential customers, and potential competitors
• Research the current competitive landscape and identify possible opportunities or threats
• Analyze the industry and market to determine any potential trends
• Identify any external factors that could influence the market
• When you have a thorough understanding of the industry and its dynamics, you will be ready to move on to the next step.
• Research the competition in the target market to identify their strengths, weaknesses, and potential threats
• Make note of any potential obstacles or challenges posed by the competition
• Analyze the strategies of the competition to identify any potential opportunities
• Note any industry trends, pricing strategies, and customer service approaches of the competition
• When you’ve identified the competition, their strengths, weaknesses, opportunities, and threats, as well as industry trends, pricing strategies, and customer service approaches, you can check this step off your list and move on to the next step.
• List the potential advantages of the investment in bullet point format
• Outline the potential returns of the investment
• Explain why investors should consider this investment
• Provide a summary of the potential benefits of the investment
• Once you have listed and explained the potential advantages, you can check this step off your list and move on to the next step: Describing the Management Team.
• List the qualifications of the executive team members
• Identify any key personnel that are not part of the executive team, but who are integral to the success of the project
• Describe the experience of the executive team members related to the business being pursued
• Demonstrate the ability of the executive team to successfully manage the business being pursued
• Outline any other relevant qualifications that the executive team members possess
• Once you have outlined the qualifications of the executive team, you can move on to the next step of outlining the qualifications of key team members.
• Gather the resumes of each key team member.
• Outline the qualifications of each key team member, such as their education, licenses, and experience in the investment industry.
• Include any other qualifications that the team members have that may be pertinent to the investment prospectus.
• Use an easily readable format and include relevant information such as titles, years of experience, and specialties.

When you can check this off your list:

• When all of the qualifications of each key team member have been outlined in the investment prospectus.
• Research the qualifications and experience of the management team
• Describe each team member’s role in the company and their experience in the industry
• Outline how each team member’s skills and experience will help the company achieve its goals
• Describe the qualifications and experience of any consultants used by the company
• When you are finished, you can proceed to the next step of explaining the operating structure and financial plan
• Outline the operating structure of the investment, including roles and responsibilities
• Explain the financial plan, including revenue streams and budgeting
• Include any financial projections and forecasts
• Describe any risks associated with the investment
• Explain how you plan to measure and monitor performance
• Include any information about capital requirements or investors

Once you have outlined the operating structure, explained the financial plan and included any financial projections and forecasts, you can move on to the next step.

• Outline the strategy for the investment
• Describe the operational structure of the investment
• Explain the roles and responsibilities of the different parties involved
• Include any relevant documents and information to support the operating structure
• Assess any risks associated with this structure
• Include any relevant legal documents associated with the structure

Once all the information is gathered, reviewed and organized, you can mark this step as complete and move on to the next step - outlining the financial plan for the investment.

• Research historical financial data of current investments
• Identify any potential risks associated with an investment
• Estimate expected return on investment
• Estimate liquidity and cash flow of the investment
• Estimate the investment’s future performance
• Calculate the return on equity
• Prepare a financial plan

When you have completed the above steps, you can check it off your list and move on to the next step.

• List the sources of funding, such as debt, equity, grants, and lines of credit.
• Identify the terms of the different sources of funding, such as the interest rate, payment schedule, and any collateral required.
• Summarize the sources of funding and the terms associated with them in the investment prospectus.
• Check whether you have provided a complete overview of the sources of funding for the investment when you finish summarizing them.
• Identify all of the potential risks associated with the investment, such as market volatility, liquidity, or other external factors
• List the risks and potential consequences for the investor
• Provide any details or information about the risks that could be helpful in understanding them
• Outline any strategies that can be used to mitigate or lessen the risks
• When all risks have been identified and outlined, you can move on to the next step in writing the investment prospectus – identifying potential risks associated with the investment.
• Analyze the investment from both an internal and external viewpoint to identify potential risks
• Research and analyze the industry, market, and regional environment where the investment is located
• Review existing and future competition to identify potential risk areas
• Evaluate potential legal and regulatory risks
• Consider the potential operational and financial risks
• Make sure to take a holistic view of the investment, considering all potential risks
• When you have identified and analyzed all potential risks, you can move on to the next step of outlining the risk factors.
• Research the investment and analyze the potential risks associated with it
• Develop strategies to minimize the risks, such as diversification or hedging
• Outline the strategies in the prospectus
• Provide a brief summary of each strategy
• Include any supporting documents if necessary
• Once you have outlined the strategies and their respective summaries, you can move on to the next step.
• Gather all materials needed for the prospectus, such as the executive summary, financial information, and other information that was gathered from previous steps.
• Create a cover page for the prospectus that includes the name of the company and key individuals involved.
• Gather the contact information for all recipients of the prospectus.
• Distribute the prospectus electronically or via physical mail.
• Follow up with the recipients to ensure they received the prospectus and to answer any questions they have.

When you have completed the above steps, you will have finalized and distributed the prospectus. You can then check this off your list and move on to the next step.

• Read through the prospectus a few times to check for any typos, grammar errors, or formatting issues.
• Have someone else read the prospectus to give a fresh set of eyes, and to catch any errors you may have missed.
• Make any necessary edits or changes to the prospectus.
• When the prospectus is free of any errors and has been approved, you can check this step off your list and move on to formatting the document for printing or digital distribution.
• Select a paper size and format that best suits your document
• Choose a font type and font size that is appropriate for the document
• Adjust the margins, page layout, and page numbering
• Ensure that all images, charts, and tables are properly inserted and sized
• Insert headers and footers if desired
• Preview the document to ensure that it looks as intended

Once you have proofread and formatted the document, you can be confident that it is ready for printing or digital distribution.

• Gather contact information for potential investors
• Determine the best method for distributing the prospectus (email, mail, etc.)
• Compose the email and/or letter to accompany the prospectus
• Send the prospectus to the intended audience
• Track responses and follow up as needed
• When all of the intended recipients have received the prospectus and any accompanying materials.

Example dispute

Lawsuits referencing prospectus.

• A plaintiff may raise a lawsuit against a company referencing a prospectus if the prospectus contains inaccurate or misleading information that results in the plaintiff suffering financial losses.
• The plaintiff must be able to prove that the company was aware of the false or misleading information in the prospectus and that it was material to the decision of the plaintiff to purchase the security.
• Civil liability may arise if the company did not properly update the prospectus with any material changes after the problems were identified by the company.
• If the lawsuit is successful, the plaintiff may be able to recover their losses in full, plus interest, and any punitive damages awarded by the court.
• In order to win the case, the plaintiff must show that the false or misleading information in the prospectus was the direct cause of their financial losses.

Templates available (free to use)

Aim Listing Verification Notes Admission Documents Or Prospectus Consent Letter From Mentioned Parties Prospectus Regulation Rules Forward Looking Statements Ipo Prospectus Legend Free Writing Prospectus For Registered Equity Offerings Free Writing Prospectus For When You Upsize Or Downsize Your Ipo Memo On Directors Responsibilities Regarding A Prospectus Secondary Offer Prospectus Content Outline

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Understanding a prospectus

• by StockWire
• April 7, 2023

A prospectus – what exactly is it?

In short, a prospectus is a legal document that informs the public and potential investors about the planned release of a new security which could be anything from stocks and ETFs (exchange traded funds) to mutual funds and bonds. The prospectus will reveal information about the company that investors will want to take into account before they potentially invest in the security. 

The prospectus will contain information about facets like the management team of the company, financial performance, potential growth and more that will help investors to make better decisions with regards to their risk tolerance. The SEC (Securities and Exchange Commission) requires companies to submit this document before going public with their security. 

How a prospectus works

We know what a prospectus contains but how does the process actually work? Well, a company will first need to submit a preliminary prospectus which is filed before the company plans to take their security public. 

This preliminary prospectus is basically used to gauge the temperature of interest from potential investors. The preliminary prospectus is the one that will contain all of the information about the company for potential investors to take into account. However, it will not contain information like how many outstanding shares will become available or what the starting share prices will be. 

When the company feels they have enough information, they will then file their final prospectus when their security is actually ready to officially go public. The final prospectus will contain all of the relevant information about pricing and share volume that the preliminary prospectus left out. 

It’s worth noting that companies will file a prospectus to also share information about some of the risks involved with purchasing their security. It’s important that they do this to some degree as the prospectus is actually there to also protect companies from any claims that they did not fully disclose pertinent information about their financial status or potential growth.  (1) U.S. Securities and Exchange Commission. "What Is a Registration Statement?"

Types of prospectuses

We have touched on the fact that companies need to issue a preliminary and final prospectus before they can take their security public. However, there are actually a number of different types of prospectuses. Let’s take a brief look at some of the different types of a prospectus that one can find. 

An abridged prospectus: in short, one could call this a “summary prospectus.” It is basically just a reader-friendly document that contains the information of the company and its security in simpler terms. 

A deemed prospectus: there are times where a company may opt against selling their securities directly to the public. If this is the case, they will use an issuing house to handle the task of issuing their prospectus. This would be known as a deemed prospectus.  

A mutual fund prospectus: as the name suggests this is based on mutual funds or ETFs. The mutual fund prospectus will issue information on the fund’s overall objectives, investment strategies, past financial performance, the distribution policy of the funds, potential risks and information on the management team. `

A shelf prospectus: a shelf prospectus is when a company issues a prospectus that contains information on several different securities, all at once. This is also known as “shelf registration.” The “shelf” in the name refers to the shelf life of the prospectus, as it generally only lasts for a year. 

A statutory prospectus: one could consider a statutory prospectus to be a mixture of the abridged prospectus and the mutual fund prospectus. This is because it provides a summary of ETF or mutual funds securities but in much greater detail. 

The varying components of a prospectus

We have briefly touched on some of the information you can find in a prospectus but there are several other factors to consider. In addition to some of the points we have touched on, let’s take a look at some of the other key components that you can find within a company’s prospectus. By knowing what the components of a prospectus are, you will be better equipped to read and understand them. 

General overview and history: as we noted earlier, a company will include information on their history and some of their past accomplishments as a company as well. This will include what strategies have helped them achieve success in the past, what their financial history looks like and what the unique selling point of the company is that helps them stand out from the competition. 

Financial information: a company may then include a closer look at financial performance over a specified period of time. This could include things like stock performance and the gross and net profit of the company in that time. 

Deal structure: you will typically find that companies who have issued securities in the past will make sure to add this in their future prospectuses. The prospectus will include information about the capital structure of the company with details on the company’s debt, equity and how investor participation will impact the deal structure. It will also make it clear what the company would ideally like their future capital structure to look like as well. 

Information on management: on a more basic level, the company will include information about their higher level executives in the company, where they received their education and qualifications from and how the executives seek to protect the company’s investments. 

Securities offering: the prospectus will detail the two types of securities that a company can offer investors, namely debt securities and equity securities. This additional round of potential investment will be detailed in the prospectus and will show what the potential rates on the securities will be. 

Risk potential: a company’s prospectus will also include any risk potential of investing in the security. This will show the investor what issues they may face with regard to government regulations or capital restrictions. 

Products and services: this part is fairly basic, it’s simply where the company will highlight what they may include to sell to the public. 

Plan for capital intake : this will be a detailed look at what the company plans to do with the investments it receives for its security once it goes public. This could include what new products it intends to finance or what it plans to expand the company. 

Prospectus FAQs

How does a prospectus serve the public.

A prospectus is vital for potential investors in the public as it gives you crucial information about the company that is about to issue a security. Not only do you receive information on the previous financial standing of the company but you also receive information on potential risks of purchasing the security they are about to go public with. 

Is there more than one kind of prospectus?

Yes, for the most part you will typically be dealing with a preliminary and a final prospectus. However, as we mentioned earlier on, there are varying degrees of a prospectus when used for things like ETFs. mutual funds or for limited periods of time. 

Who regulates these prospectuses and can they be trusted? 

All company prospectuses in the US are regulated and filed by the SEC. No company in the US can issue a public security without going through the SEC first with their preliminary and final prospectuses. You can trust that the SEC has rigorously combed through these prospectuses to ensure the information is accurate.

Stockwire Inc. does not hold a position in the securities and/or financial instrument(s) mentioned herein, has not received any compensation, whether in securities or monetary form, for the content of this publication by any company mentioned herein and does not stand to benefit from any volume generated by this publication. Stockwire Inc. and its authors do not provide investment advice or recommendations regarding the purchase or sale of any securities. Investors are responsible for their own investment decisions. Any information, opinions or views provided in this document, including hyperlinks to the Stockwire website or the websites of its affiliates or third parties, are for your general information only, and are not intended to provide legal, investment, financial, accounting, tax or other professional advice. While information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Stockwire Inc. or its affiliates. You should conduct your own research and consult with your qualified advisor before taking any action based upon the information contained in this document. Stockwire Inc. and its affiliates do not accept any liability for any for any investment decisions made based on the information provided in this document. Furthermore, the products, services and securities referred to in this publication are only available in Canada and other jurisdictions where they may be legally offered for sale. If you are not currently a resident of Canada, you should not access the information available on the Stockwire Inc. website. For more information on our terms and conditions of use, please see stockwire.com/terms/ and stockwire.com/privacy/ and stockwire.com/disclaimer/

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How to Write a Prospectus

Last Updated: February 5, 2024 Fact Checked

This article was co-authored by wikiHow staff writer, Jennifer Mueller, JD . Jennifer Mueller is a wikiHow Content Creator. She specializes in reviewing, fact-checking, and evaluating wikiHow's content to ensure thoroughness and accuracy. Jennifer holds a JD from Indiana University Maurer School of Law in 2006. There are 10 references cited in this article, which can be found at the bottom of the page. This article has been fact-checked, ensuring the accuracy of any cited facts and confirming the authority of its sources. This article has been viewed 136,734 times. Learn more...

A prospectus is, in effect, a research proposal. The purpose of this document – be it a single page or dozens of pages long – is to sell your idea to the appropriate professor or research committee. You may be writing a prospectus for an undergraduate research project, a grad school study, or a doctoral dissertation. A prospectus also is used to apply for grants or other funding from universities or nonprofit organizations. [1] X Trustworthy Source Investor.gov Website maintained by the Securities and Exchange Commision’s Office of Investor Education and Advocacy providing free resources about investing. Go to source

Things You Should Know

• State your topic of study and the questions you intend to answer; then, explain how and why your study will answer those questions.
• Outline the chapters of your prospectus and each stage of research, and include an estimate of the project's costs and timeline.
• Use standard formatting unless otherwise instructed, with a table of contents and bibliography.
• Carefully proofread your prospectus before submitting it for evaluation.

Describing the Goals of the Study

• Your topic isn't as broad as an entire subject such as history or sociology. Rather, you're going to list a specific aspect of that subject, such as "The Causes of World War II" or "The Impact of Globalization in Latin America."
• This topic generally would be far too broad to write a single paper (or even a single book) about and even begin to cover it in a more than superficial manner.
• In a shorter prospectus, such as for an undergraduate research paper, you typically won't need to devote more than a sentence to your topic before moving on to your research questions.

• Before you start formulating your questions, you may want to look at other research projects in your discipline to get a good idea of the types of questions typically asked.
• For example, a history question may involve extensive research and synthesis of that research to discover any patterns that may emerge.
• In contrast, questions in the social sciences such as political science may be based more on data gathering and statistical analysis.
• In a short prospectus, this may simply be a bullet-point list of specific questions you expect to address through your research.
• A longer prospectus, such as a grant proposal or dissertation prospectus, typically devotes several pages to discussing the specific questions that your research will address.

• The more advanced you are in your discipline, the more crucial this portion of your prospectus is going to be.
• If you're writing a prospectus for a research project in an undergraduate course, your professor likely won't expect you to contribute something new or profound to the field. However, graduate research and dissertations typically attempt to make a unique contribution to the area.
• You may need to do some preliminary research before you can write this portion of your prospectus, particularly if you believe you are the only person ever to do research seeking specifically to answer the questions you've listed.
• Any statement you make regarding the importance of your research should be supported by research, and you should be able to defend those assertions to the people reviewing your prospectus.

• You want your thesis statement to be as clear as possible. If you find it difficult to craft a clear answer to the questions you've presented, it may be that your questions aren't as clear as they could be.
• Keep in mind that if your question is vague or muddled, you're going to have a hard time coming up with a clear, definitive thesis statement.

• At this level, you're not just selling your idea, you're also selling your own knowledge, passion, commitment, and skills as a researcher to find the answers you seek.
• For grant applications, information about yourself as a person and your personal interest in the topic you plan to research also can be important. When deciding which projects to fund, having a personal commitment or dedication to a particular issue may give you an edge.
• Depending on the type of research you plan to do, you also may have to outline your position and your access or ability to gather various types of information, such as archives or classified documents.

Explaining the Organization of the Study

• Keep in mind that this is just a plan – nothing's set in stone. At this early stage, your paper likely will change as you get into your research or start gathering the data and crunching numbers to work on your project.
• You can create specific paragraphs or an outline, or you can write this section in a single seamless narrative. For shorter papers, that's probably all this section will be – essentially a couple of paragraphs that tell the readers how you anticipate you'll organize the final report on the project.

• For example, if you're doing a statistical analysis, you must first gather the data, then compile statistics from that data, then analyze the statistics you create.
• For scientific experiments, this is the place where you'll describe the steps in the experiment.
• If you're doing a project in the humanities, the stages of your research may not be as clear-cut as they would be if you were doing a research project for a more scientific discipline.

• For graduate research projects or dissertations, the timeframe may be more open-ended. In these situations, you should provide an estimate in your prospectus of when you believe your project will be completed.
• Coming up with a timeline and ultimate deadline of when the research will be completed is particularly important if you're applying for a grant.
• How long you think it will take to complete your research affects the feasibility of the project, which is ultimately how your prospectus will be evaluated. Be realistic in what you can do within the time constraints you have.
• Keep in mind that while you may be able to get an extension if your research ends up taking longer than you anticipated in your prospectus, you also may be expected to justify the reasons you need more time or explain why the initial estimate in your prospectus was incorrect.

• This is especially important if you're applying for a grant, as the people who review your prospectus will want a detailed breakdown of what you intend to do with the money if you're awarded the grant.
• Typically you'll need to include expenses such as fees for access to archives or for copying, any costs for data collecting, and rentals of lab or other equipment.
• You also should include a list of any resources you plan to use for which you anticipate there being no cost, such as use of the university library or computers and employment of student volunteers.

Formatting Your Prospectus

• The guidelines also typically will include details on which citation method you should use, and may include details on using a particular style guide that will govern word usage, grammar, and punctuation rules.
• Your assignment information also may specifically state how long each section is supposed to be, and which sections must be included.

• Type your prospectus in a standard, legible font such as Times New Roman or Helvetica.
• Typically you'll have one-inch margins on all sides of the paper, and your text will be double-spaced. Include page numbers if your prospectus is more than one page.
• Follow the guidelines from your professor or department in regard to creating a cover sheet or using special formatting or headers on the first page.
• If footnotes or end notes are required, set these up in your word processing app before you start working on your prospectus.

• The table of contents essentially is a list of chapters for your final report, and gives the readers of your prospectus an idea of what the final report will look like and how long it will be.

• Some professors or departments require an annotated bibliography, in which you not only cite the sources you plan to use but provide a detailed description of what the source is and how it fits into your research.
• Check the guidelines from your professor or department to make sure you're using the correct citation method for your bibliography.

• Reading your prospectus backwards is a good way to proofread and catch errors you might have missed otherwise.
• In addition to editing for grammar and punctuation, you also should check your language carefully. Make sure everything is written in a formal, professional tone.
• Keep your audience in mind as you edit. While you may be writing your prospectus for professors or a department committee that has full understanding of your project's topic, you shouldn't assume any particular level of understanding. Rather, your prospectus should be written so that it can be understood by a generally intelligent person without any special knowledge in your field.

Expert Q&A

• Be realistic about what you can accomplish through your research. Writing a prospectus that seems narrow in scope, but feasible, is better than writing a prospectus that seems overly ambitious and impractical. Thanks Helpful 0 Not Helpful 0
• Don't worry if your final paper or study ends up deviating from your prospectus. This often happens when you get further into your research, and is to be expected. Thanks Helpful 0 Not Helpful 0

You Might Also Like

• ↑ https://www.investor.gov/introduction-investing/investing-basics/glossary/prospectus
• ↑ https://www.wichita.edu/academics/fairmount_college_of_liberal_arts_and_sciences/english/deptenglish/WritingaResearchProspectus.php
• ↑ https://english.washington.edu/sites/english/files/documents/ewp/academicresearchpapersequence_grollmus.pdf
• ↑ https://www.slu.edu/arts-and-sciences/theological-studies/student-resources/pdfs/prospectus-template.pdf
• ↑ https://writing.wisc.edu/handbook/assignments/planresearchpaper/
• ↑ https://poorvucenter.yale.edu/writing/graduate/writing-through-graduate-school/prospectus-writing
• ↑ https://www.investor.gov/introduction-investing/investing-basics/glossary/mutual-fund-fees-and-expenses
• ↑ https://examples.yourdictionary.com/reference/examples/table-of-content-examples.html
• ↑ https://www.sciencebuddies.org/science-fair-projects/science-fair/writing-a-bibliography-examples-of-apa-mla-styles
• ↑ https://academicguides.waldenu.edu/writingcenter/writingprocess/proofreading

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Blog Business How to Write Business Proposal (Examples + Free Templates)

How to Write Business Proposal (Examples + Free Templates)

Written by: Aditya Sheth Jan 25, 2024

The great Mark Cuban once said, “Sales cure all.” If a business doesn’t sell, it doesn’t make money and by extension the business fails. That’s why you need to write business proposals .

A well-written business proposal can often mean the difference between winning or losing a prospective client.

In this in-depth guide to creating business proposals, we show you how to close more deals, make more sales and crush your business goals — all by using easy-to-edit professional business proposal templates .

Here’s what this guide will cover (click to jump ahead):

What is a business proposal, what are the components of a business proposal.

• How to write a business proposal step by step

What should you include in a business proposal?

What are the types of business proposals, more business proposal examples + writing and design tips.

• FAQs about business proposals

Looking for a shortcut? Watch this quick video for an overview of everything to include in your business proposal:

A business proposal is a document designed to outline a business plan to convince potential client, investor or partner to engage in a business agreement with you or your company. It’s basically a sales pitch in writing to persuade potential clients to show them benefits of working with you or your company for their business success.

A business proposal outlines what your business does and what you can do for your client . It can be general like this business proposal example:

Or it can be more specific, like this business proposal template which focuses on proposing a project for the Newton Center Rail:

Or this business proposal sample, which presents a plan for a social media strategy and campaign:

To design a business proposal that holds the client’s attention, identify their pain points . Then provide your buyer with the right solution to alleviate those frustrations.

Working on a new project? These project proposal examples might come in handy for you.

The components of a business proposal can change depending on the field, company size and client needs. While details may differ, strong proposals typically introduce your company, explain the problem, offer a solution and its benefits, highlight your team’s skills, and outline timeline, cost and next steps.

How to write a business proposal step by step

Before you start creating your business proposal template, you need to understand the business proposal format. At a high level, your effective business proposal should include the following:

• Create a compelling business proposal title
• Build a table of contents
• Craft the executive summary
• Write a detailed problem statement
• Propose your solutions
• Showcase your team’s expertise
• Create a realistic timeline
• Present your payment structure
• Specify the terms and conditions
• Receiving the decision

Below, you can see business proposal examples that demonstrate how to include these 10 sections.

1. Create a compelling business proposal title

A compelling title could mean the difference between someone reading your proposal or ignoring it in favor of a competitor’s . 

What makes a good title page? Here are the essential elements to include: 

• Your name along with your company’s name
• The name of the prospect (or their business) 
• The date you’re submitting the proposal

The gray business consulting proposal template above contains all the details a prospect would want to know. The title also offers a strong tangible benefit to the prospective buyer. Honestly, “Who doesn’t want to grow their business?”

2. Build a table of contents

The table of contents is a fundamental part of every winning business proposal template. It makes your proposal scannable and easy to read.

The people you will be pitching to are usually C-level executives. These are busy people who don’t have time to read your entire proposal in one go.

That’s why most of the business proposal examples in this list include a table of contents.

Adding a table of contents to your document makes it easy for them to go through it at their own pace. They can also skim through parts of the proposal that they deem more important. You can see how this abstract business proposal template uses the table of contents:

You can also make your business proposal template easier to navigate by adding hyperlinks to the document, particularly in the table of contents. This way your clients can jump to specific sections without having to scroll through the entire document. Ensuring your business plan format follows a clear structure can greatly enhance readability and comprehension for potential investors or partners.

It’s easy to add hyperlinks in the Venngage editor. Select the text you’d like to turn into a link, then click the link icon in the top bar. From there, select the page you want to link to! Then download your completed design as an Interactive PDF .

3. Craft the executive summary

The executive summary is a staple in all kinds of annual reports , leadership development plan , project plans and even marketing plans . It is a concise summary of the entire contents of your document. In other words, write a business proposal outline that is easy to glance over and that highlights your value proposition.

The goals of your executive summary are:

• Introduce your company to your buyer
• Provide an overview of your company goals
• Showcase your company’s milestones, overall vision and future plans
• Include any other relevant details

This gray business proposal example has a detailed yet short executive summary including some social proof in the form of clients they’ve worked with:

Take note of how precise this business proposal example is. You want to keep your executive summary concise and clear from the get-go. This sets the right tone for the rest of your proposal. It also gives your buyer a reason to continue reading your proposal.

Crafting an executive summary and keeping it concise and compelling can be challenging. but you can use an AI summarizer online to generate an executive summary. Such tools are trained on relevant AI models that can extract core points from a given text. You can get such a point either in bullet form or in abstract summary form.

Pro Tip: Try to write an executive summary such that, even if your prospective client doesn’t read the entire proposal (with a good executive summary, they most likely will), they should have a clear idea about what your company does and how you can help them.

4. Write a detailed problem statement

The point of writing a business proposal is to solve a buyer’s problem. Your goal is to outline the problem statement as clearly as possible. This develops a sense of urgency in your prospect. They will want to find a solution to the problem. And you have that solution.

 A well-defined problem statement does two things: 

• It shows the prospect you have done your homework instead of sending a generic pitch
• It creates an opportunity for you to point out a problem your prospect might not be aware they had in the first place. 

This bold business proposal template above clearly outlines the problem at hand and also offers a ray of hope i.e. how you can solve your prospect’s problem. This brings me to… 

5. P ropose your solutions

The good stuff. In the proposed solution section, you show how you can alleviate your prospective buyer’s pain points. This can fit onto the problem statement section but if you have a comprehensive solution or prefer to elaborate on the details, a separate section is a good idea.

Spare no details regarding the solution you will provide. When you write a business proposal, explain how you plan to deliver the solution. Include an estimated timeline of when they can expect your solution and other relevant details.

For inspiration, look at how this business proposal template quickly and succinctly outlines the project plan, deliverables and metrics :

6. Showcase your team’s expertise

At this point, the prospect you’re pitching your solution to likes what they’re reading. But they may not trust you to deliver on your promises. Why is this?

It’s because they don’t know you. Your job is to convince them that you can fix their problem. This section is important because it acts as social proof. You can highlight what your company does best and how qualified your team is when you write a business proposal for a potential client.

This free business proposal template showcases the company’s accolades, client testimonials, relevant case studies, and industry awards. You can also include other forms of social proof to establish yourself as a credible business. This makes it that much more likely that they will say yes!

Pro Tip: Attaching in-depth case studies of your work is a great way to build trust with a potential client by showcasing how you’ve solved similar problems for other clients in the past. Our case study examples post can show you how to do just that.

7. Create a realistic timeline

To further demonstrate just how prepared you are, it’s important to outline the next steps you will take should your buyer decide to work with you.

Provide a timeline of how and when you will complete all your deliverables. You can do this by designing a  flow chart . Or add a  roadmap  with deadlines. Pitching a long-term project? A timeline infographic would be a better fit.

If you look at this abstract business proposal template below, even something as simple as a table can do the trick.

The timeline is not always set in stone, rather it’s an estimation. The goal is to clarify any questions your potential client might have about how you will deliver for the underlying B2B sales process.

8. Present your payment and terms

On this page, you can outline your fees, payment schedule, invoice payment terms , as well as legal aspects involved in this deal. You can even use the  Excel Invoice Template  to create professional-looking invoices (including brand logo and other elements) and add them to this page.

The key to good pricing is to provide your buyer with options. A  pricing comparison table can help with this. You want to give your client some room to work with. Make sure you’re not scaring off your client with a high price, nor undervaluing yourself. 

Breaking up your pricing in stages is another great way to make sure your potential client knows what he’s paying for. Look at how this simple business proposal template does this:

The legal aspects can slot right into the terms and conditions section. Alternatively, you can add them to the signature section of the proposal to keep things simple.

9. Specify the terms and conditions

Summarize everything you have promised to deliver so far. Include what you expect from your prospective buyer in return.   Add the overall project timeline from start to end, as well as payment methods and payment schedule, incorporating these details into an online digital project management tool. This way, both of you will be clear on what is being agreed on.

This step is very important as it outlines all the legal aspects of the deal. That is why the terms and conditions section of your proposal needs to be as clear as possible.

I recommend consulting a lawyer or your legal team when working on this section of the business proposal. If you’re a business veteran and understand the legalities of your business, you can use the same terms and conditions across all your proposals.

10. Receiving the decision

The final step of this whole process. Your client has read your business proposal and they want to buy what you have to offer.

Add a small section at the end of your proposal to get the necessary signatures. This way, you and your client can sign the proposal and the partnership becomes official.

Be sure to also include your contact information in your business proposal template. It acts as a gentle prompt to your client to contact you in case they have any questions. A professional way of doig that would be to include an e-business card with your contact details, email i.d and any other social links you want to share. You can go through this article for the best digital business cards .

A business proposal usually aims to answer the following questions: 

• Who you are and what your company does
• The problem your buyer is facing
• The solution your company offers to alleviate the problem
• How your company will implement this solution effectively
• An estimate of resources (time, money, etc) required to implement the solution

You can see how this sample business proposal template covers the above points.

Notice how this proposal template addresses the same project like in one of the previous templates, but uses a completely different design style (more retro, while the previous business proposal template is more modern and minimalistic).

Generally, there are three types of business proposals:

1. Formally solicited 

A formally solicited business proposal is made when you respond to an official request to write a business proposal.

In this scenario, you know all the requirements and have more (if not all) information about a prospective buyer. You simply need to write the business proposal for your buyer to evaluate so you can begin the sales process .

2. Informally solicited 

Informally solicited business proposals are written when there isn’t an official request for a proposal. A prospective buyer is interested in your services and asks for a proposal so they can evaluate it.

An informally solicited proposal requires a lot more research from your end. These types of proposals are usually created out of informal conversations. They are not based on official requests which often contain more detail.

3. Unsolicited 

Think of this as a marketing brochure or a cold email . Unsolicited business proposals will often take a generic, one-size-fits-all approach to business proposals. Unsolicited proposals lack any understanding of the buyer or their requirements.

But with additional  market research , personalization and identifying customer pain points , you can propose a customized solution based on your buyer’s needs. This can be a very persuasive approach, such as in this business proposal example:

Now that you know how to write a business proposal, let’s look at how you can optimize your proposal to deliver results!

Below you’ll find some winning business proposal templates and examples to get you started. I’ve also included some design tips to keep in mind when you’re creating your next business proposal: 

1. Know your audience 

If you have some clarity on who your ideal buyer is — their pain points, their budget, deadlines, among other things — you’ve already won half the battle.

If you are a business that helps clients with everything from running giveaways or helping grow their blog , identify which customers to pitch. This is a sure-shot way to close the deal.

Mapping user personas  for your ideal buyer can help bring some clarity. It will also help you position your business proposal correctly. This improves the chance of your buyer moving your business proposal to the “Yes!” pile.

2. Put your brand front and center

If your company follows certain brand guidelines, incorporate them in your business proposal templates. Consider how business proposal examples like the one below highlight brand identity :

From the color palettes to the company logos , everything follows their brand guidelines. The result: a business proposal that’s consistent across the board.

Pro Tip: Switching this template to match your brand assets is actually pretty easy. Venngage’s My Brand Kit feature allows you to import your color palettes, logos as well as font choices. Any Venngage template can now be your template.

You can also consider this sample business proposal template:

App design companies sure do know their design. They did a phenomenal job keeping their brand colors consistent while opting for a black design. This unique color scheme also makes their white logo prominent throughout the proposal.

3. Try less text, more visuals

Have you ever read a proposal and thought to yourself, “Wow, this is all text and has no images, I love it!”? Yeah, me neither.

The free business proposal template below is a perfect example of the “less is more” principle. It does a phenomenal job of communicating what it needs to. By substituting some of the text with icons and visuals, you get a clean business proposal that’s much more scannable.

Want to keep things strictly professional? Instead of icons, you can always add your team’s headshots. This shows your buyer exactly who they’ll be working with.  

Check out this formal business proposal format for some inspiration:

4. Switch up your business proposal designs

It doesn’t hurt to go above and beyond once in a while. Jazz up your business proposal template with some extra colors. This helps make your business proposal more engaging. It also helps your buyers retain information faster.

The business proposal example alternates between black, white and grey backgrounds. It still manages to maintain consistency in its branding . Just switching up your backgrounds once in a while can also bring in some variety to an otherwise standard business proposal.

This SEO business proposal sample proves that it’s possible to switch up the colors in every other page. But it still maintains the same color scheme across the entire proposal just like a professionally designed website : 

Pro Tip: Not a color expert? Our guide on picking colors can help you pick the right color scheme for your proposals.

FAQ about business proposals

What is the purpose of a business proposal.

A business proposal aims to streamline the B2B sales process (which is often complex ) between you as a seller and a buyer.

It does this by serving the dual purpose of acting as a source of information. The proposal also acts as a sales pitch aimed at convincing your buyer why they should buy what you have to offer.

What are the best practices for business proposal design?

• Do a thorough spell-check. The goal of your business proposal is to convince your buyer why you’re the perfect person for the job. A proposal with typos or grammatical errors communicates the opposite. A thorough spell-check before you send your proposal is a must.
• Keep things clear and readable: Clarity is an important aspect that you have to ensure in your business proposal. If you want your proposal to hit home and make an impact on the buyer, you have to write it in an understandable way. To keep things clear and readable, there are a couple of things that you can do. You can, for one, take care to use easy wording and segmented sentences from the get-go. You can also try paraphrasing the hard parts of your proposal once you are done writing it.
• Let your brand shine. As discussed before, writing a business proposal is all about knowing your ideal buyer and focusing on their pain points. But that doesn’t mean your business proposal template has to be boring. Demonstrate how different you are compared to other companies. You can do this through your brand guidelines , by using more visuals, switching up your proposal design or showing off your personality in your writing . 
• Create a business proposal PDF. Downloading your business proposal in PDF format allows you to attach other collaterals with your business proposal. These can include a company explainer video or case studies showcasing the work done with past clients. Also, who doesn’t love saving paper?

How long should your business proposal be? 

The length depends on the scope of the work as well as the complexity of the project. Here is a one-page business proposal template:

Can your business proposal template really be one page? Yes, as long as you understand who your buyer is and their pain points. You should also have the ability to communicate everything your ideal buyer needs to know about your business in a succinct manner.

Or if you’re feeling adventurous how about just two pages? Often, clients prefer if you go straight to the point and avoid all the fluff.

For example, this green modern marketing proposal template wastes no time in getting down to brass tacks:

Need more inspiration? Check out this blog on the 5 marketing proposal examples that’ll help elevate your business.

There is no one size fits all approach when it comes to deciding how many pages you should include in your business proposal template. And at the end of the day, “the only rules are the ones you set for yourself”.

At the end of the day, writing winning business proposals that sell is all about you understanding your buyer, their potential pain points and positioning yourself as someone who can alleviate those pain points. 

Now that you know how to write compelling business proposals, what are you waiting for?

Take action and start creating your own business proposals to close more deals and grow your business today!

More business communications templates + writing tips you might be interested in…

• 31 Consulting Proposal Templates to Close Deals
• 20+ Professional Business Letterhead Templates + Branding Tips
• How to Write a White Paper [Tips & Templates]

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Seeking engagement and purpose, corporate employees turn to workplace volunteering

Ron Waddell, Founder and Executive Director of Legendary Legacies, second from left, poses with men benefitting from his nonprofit organization, Friday, April 19, 2024, in Worcester, Mass. Waddell credits Blue Cross Blue Shield volunteers for truly investing in their employee service opportunities, which are increasing across the corporate realm. From left are Antoine Williams, Waddell, Jonathan Maldonado and Gary Goyette. (AP Photo/Charles Krupa)

Ron Waddell, Founder and Executive Director of Legendary Legacies, left, talks with Jesus Pizarro, right, who is cutting the hair of Abrain Mendez, at his nonprofit organization, Friday, April 19, 2024, in Worcester, Mass. Waddell credits Blue Cross Blue Shield volunteers for truly investing in their employee service opportunities, which are increasing across the corporate realm. (AP Photo/Charles Krupa)

Ron Waddell, Founder and Executive Director of Legendary Legacies, right, talks with Gary Goyette at the nonprofit organization, Friday, April 19, 2024, in Worcester, Mass. Waddell credits Blue Cross Blue Shield volunteers for truly investing in their employee service opportunities, which are increasing across the corporate realm. (AP Photo/Charles Krupa)

Michelle Barbin, a Blue Cross Blue Shield employee volunteer, poses, Friday, April 19, 2024, in Worcester, Mass. Barbin says Blue Cross Blue Shield’s robust employee volunteer programs provide fulfillment and development opportunities – benefits that are driving companies nationwide to implement more robust workplace service programs.(AP Photo/Charles Krupa)

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NEW YORK (AP) — Michelle Barbin’s job does not always fill her bucket. Yes, she likes her nine-to-five helping improve consumer experiences at Blue Cross Blue Shield of Massachusetts. She emphasizes she wouldn’t have spent nearly 19 years working for the health insurance provider otherwise.

But her “empathetic heart” gets true satisfaction from the company’s opportunities to apply professional skills toward resource-strapped nonprofits. Routine work — managing projects or organizing slideshows — feels more fulfilling when it involves, say, a new marketing campaign for a Pittsburgh children’s health group.

She’s reaped developmental benefits, too; she credits her leadership on a day of service for helping convince her current boss to hire her onto a new team.

“This is a huge part of why I stay,” Barbin said.

Employees increasingly find that robust workplace volunteer programs meet their desires for in-person connections, professional growth and altruistically inclined employers — career objectives that might be missing in conventional corporate atmospheres. The surge in interest coming out of the pandemic-era shutdowns that forced many Americans to reevaluate their commitments to their communities led to more corporate partners, volunteer hours and active participants in 2023 than ever before, according to Benevity, a platform that helps companies manage such programs.

More than 60% of respondents reported increased participation last year in employee volunteer activities, according to an Association of Corporate Citizenship Professionals survey of 149 companies .

Even employees who don’t volunteer themselves feel better about working somewhere with strong public-spirited cultures. Regardless of their own individual volunteer commitments, they feel proud about their affiliation with a socially conscious company, according to Jessica Rodell, a University of Georgia management professor who studies worker psychology.

Companies with robust volunteer programs tend to also have lower turnover rates, she said.

“Volunteering can be one tool in a company’s toolbox to help employees invest of themselves enough in the company to perform well, and then want to stay there instead of go somewhere else,” Rodell said.

It can be an especially good tool for instilling social purpose among frontline employees who tend to derive a sense of meaning from work but report detachment from their company’s mission.

But flexibility is key. Business management experts note that employees must have the freedom to choose their volunteer activities, nonprofit partners and time commitments for fruitful bonds to actually develop.

Workplace volunteering was not something that Jesse Weissman knew he wanted from employers when joined Microsoft in May 2021. Three years later, it’s an aspect of professional life that he said would warrant serious consideration if he ever pursued a new job.

Searching for a deeper connection to the Seattle community, Weissman began mentoring students of color through Microsoft’s partnership with the Boys and Girls Clubs of America and a local nonprofit. Since September 2022, he’s worked with Microsoft’s Black employee affinity group in the Seattle area to arrange speaking and mentorship opportunities for his colleagues.

“It filled a hole that I didn’t realize,” Weissman said.

Not just any slapdash activity will do, experts say. These service days are not necessarily circled on office-wide calendars as afternoons of matching tees and on-site photo opportunities. Some companies set aside regular work hours for months at a time so employees can build websites or develop business strategies for local charities.

Executives might think that a lighthearted, social effort — filling backpacks at a happy hour, for example — is necessary to turn out their fun-loving employees. But Rodell, the management professor, said that more time-intensive, meaningful programs have greater resonance with volunteers.

Best practices include following employees’ leads and meeting them where they’re at. Skills-based opportunities at Blue Cross Blue Shield range from one-day, “flash” projects to monthslong partnerships. The company sets aside 15 days annually for associates to spend volunteering, much like vacation and sick time. Affinity groups can co-create service projects.

Integrating giving into the volunteer programs is another way to engage busier, seasoned employees with less time to serve but deeper pocketbooks. Liberty Mutual matches employee gifts to more than 11,000 eligible charities. The insurance company’s volunteers are further incentivized by the chance to earn miniature grants for the charity of their choice. Totals reach $2,500 for those who have completed 100 service hours.

Some employees recently spent parts of more than six months consulting with More Than Words, a Boston nonprofit that provides work for youth ages 16 to 24 who have cycled through foster care, courts, homeless shelters or other systems. After surveying participants, Liberty Mutual employees identified a lack of front-end support, according to Naomi Parker, the nonprofit’s chief advancement officer. Youth needed help obtaining transportation and food before they could hold down a job.

The volunteer commitments are now part of extensive ties that have seen a Liberty Mutual employee join the More Than Words board and more than $3.4 million committed to the nonprofit since 2013. Employees have given more than $85,000 including matches and other incentives.

“It doesn’t turn into a LinkedIn post, right?” Parker said. “It’s not a quick hit. It’s real. It’s deep. And it’s not for show.”

Volunteering can be a gateway to relationships beyond the otherwise costly, behind-the-scenes help provided by employees. The long-term partnerships in turn introduce budget-constrained nonprofits to new pools of donors.

Now is an especially good time to forge those connections given that Gen Z is forecast to overtake Baby Boomers in the workforce this year, said Blackbaud Giving Fund Executive Director Matt Nash. Over three-fifths of charitable donors recently volunteered with the organization they supported, according to a Fidelity Charitable report. As younger employees increase their earnings, Nash said, well-formed bonds can become especially lucrative for nonprofits.

Legendary Legacies Executive Director Ron Waddell had no expectations that Blue Cross Blue Shield employees would stay engaged with his nonprofit’s work rehabilitating young gang members. Several IT specialists and data analysts had helped them better capture metrics on the success of their programs — important for both feedback and grant applications. But many months later, one volunteer made a $200 donation in what Waddell considered a testament to their honest motives.

It wasn’t “a performative measure to look good,” he said. “You could tell folks were really invested.”

Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy .

Orexo publishes prospectus and applies for admission to trading of social bonds on Nasdaq Stockholm

Uppsala, Sweden - May 10, 2024 . On March 28, 2024, Orexo AB (publ), ("Orexo" or the " Company ") ( STO:ORX) (OTCQX:ORXOY ) successfully issued senior secured callable floating rate social bonds in an amount of SEK 500 million and with a tenor of four years (the " Bonds "). 

Pursuant to the terms and conditions for the Bonds, Orexo has undertaken to apply for admission to trading of the Bonds on the sustainable bond list of Nasdaq Stockholm. For this purpose, the Company has prepared a listing prospectus, which today has been approved by the Swedish Financial Supervisory Authority (Sw. Finansinspektionen). The prospectus is available at the Company's website www.orexo.com and at the Swedish Financial Supervisory Authority's website www.fi.se. The application for admission to trading has been submitted and the first day of trading of the Bonds is estimated to be around May 14, 2024.

For further information please contact:

Nikolaj Sørensen, President and CEO

Fredrik Järrsten, EVP and CFO

Lena Wange, IR & Communications Director

Tel: +46 (0)18 780 88 00

E-mail: [email protected]

About Orexo

Orexo is a Swedish pharmaceutical company with over 25 years of experience developing improved pharmaceuticals based on proprietary formulation technologies that meet large medical needs. On the US market, Orexo provides innovative treatment solutions for patients suffering from opioid use disorder and adjacent diseases. Products targeting other therapeutic areas are developed and commercialized worldwide with leading partners. Total net sales in 2023 amounted to SEK 639 million, and the number of employees to 116. Orexo is listed on Nasdaq Stockholm's main list and is available as an ADR on OTCQX (ORXOY) in the US.

For more information about Orexo please visit www.orexo.com. You can also follow Orexo on X, LinkedIn, and YouTube.

The information was sent for publication, through the agency of the contact person set out above, on May 10, 2024, at 1.30 pm CET.

https://news.cision.com/orexo/r/orexo-publishes-prospectus-and-applies-for-admission-to-trading-of-social-bonds-on-nasdaq-stockholm%2Cc3976889

Andreessen Horowitz investor says half of Google's white-collar staff probably do 'no real work'

• Andreessen Horowitz's David Ulevitch discussed  "fake work" in tech in an interview published Monday.
• He said:  "Half the white-collar staff at Google probably does no real work."
• Tech firms such as Google and Meta have conducted mass layoffs in recent years.

An investor at the Silicon Valley venture firm Andreessen Horowitz is the latest VC to get involved in the debate about "fake work" in the tech industry.

In an interview published on Monday with Emily Sundberg in her " Feed Me " newsletter, David Ulevitch, a general partner at Andreessen Horowitz , called Google "an amazing example" of a corporation employing people in "BS jobs."

Ulevitch said that "irrelevant jobs proliferate" at megacorporations and employees at these big, white-collar firms know that "a bunch of the people can probably be let go tomorrow and the company wouldn't really feel the difference. Maybe it'd even improve with less people inserting themselves into things."

Ulevitch was previously the CEO of the web-security startup OpenDNS, which he sold to Cisco for $635 million in 2015.

"The growing professional managerial class in America, and more importantly, the societal perception that those jobs are 'really important,' is a weakness, not a strength," he added. "I should note, I have been a part of this class in my career, and it's great — people really treated me like I was very impressive and important when I was an SVP at Cisco, and so naturally I thought I was, too. This dynamic is endemic across corporations and is lame."

Ulevitch said one effect was "the decline of small businesses that power America's industrial and manufacturing base," as people in these industries age out of the workforce, the work gets outsourced abroad, and these jobs are seen as less desirable than white-collar gigs.

"Another issue with all the 'BS' jobs in large corporations is that it takes profits away from shareholders who are most often the pensioners and retirement accounts of the rest of America," he said. "So those people aren't just being useless (and being coddled to think useless jobs actually matter — they don't), but they are also taking money away from the rest of the workforce's retirement programs."

Related stories

Ulevitch pointed the finger at Google specifically, saying it's "an amazing example."

"I don't think it's crazy to believe that half the white-collar staff at Google probably does no real work," he said. "The company has spent billions and billions of dollars per year on projects that go nowhere for over a decade, and all that money could have been returned to shareholders who have retirement accounts."

Google didn't immediately respond to a request for comment from Business Insider. Meanwhile, Ulevitch told BI via email: "My only comment is that I think it ranks as one of the least controversial things I've ever said."

In recent years, other VCs have entered the debate around "fake work" and overstaffing at Big Tech companies.

Marc Andreessen has criticized what he calls the managerial " laptop class " and tweeted in 2022: "The good big companies are overstaffed by 2x. The bad big companies are overstaffed by 4x or more."

Keith Rabois , an investor in Tesla and former PayPal executive, said last year that recent layoffs at Meta and Google were the result of overstaffing.

"All these people were extraneous," he said. "This has been true for a long time. The vanity metric of hiring employees was this false god in some ways."

"There's nothing for these people to do," he said. "It's all fake work," adding: "Now that's being exposed, what do these people actually do? They go to meetings."

Thomas Siebel, the billionaire CEO of C3.ai, said last year that Google and Meta overhired staff and didn't have enough work for them to do.

"They really were doing nothing working from home," he said. "If you want to work from home, like four days of work in your pajamas, go to work for Facebook."

Though some laid-off tech workers have said they had to "basically fight to find work," at their old companies, others have said their companies over-hired and management assigned workers menial tasks to create the illusion that they were necessary.

Tech firms such as Meta and Google have laid off thousands of workers since 2022, often citing an interest in becoming more efficient.

Meta CEO Mark Zuckerberg said last year that 2023 would be the company's " year of efficiency " and expressed his distaste for a bloated organizational structure of "managers managing managers." And Google CEO Sundar Pichai told staff in 2022 that "there are real concerns that our productivity as a whole is not where it needs to be for the head count we have."

On February 28, Axel Springer, Business Insider's parent company, joined 31 other media groups and filed a $2.3 billion suit against Google in Dutch court, alleging losses suffered due to the company's advertising practices.

Watch: Nearly 50,000 tech workers have been laid off — but there's a hack to avoid layoffs

• Main content

Diversified Healthcare Portfolio

The Portfolio seeks capital appreciation. The Portfolio seeks to achieve its objective by investing in a portfolio primarily consisting of stocks of companies diversified within the healthcare industry.

Why Consider Investing in the Healthcare Industry Biotechnology and pharmaceuticals have increased the length and quality of life for millions of people. As the aging population continues to grow, so too does the demand for new and better health care related products and services. 

Virtually every day, advances in health care are being made, often leading to revolutionary breakthroughs in areas such as medical diagnostics, equipment and services, agriculture, patient care, forensics, environmental cleanup and preservation.

The healthcare industry is currently composed of the following sub-sectors:

• Pharmaceutical
• Biotechnology
• Healthcare Providers
• Medical Devices
• Medical Supply Companies

Why Consider Investing in the Diversified Healthcare Portfolio

• Growth Potential —The Portfolio offers you the opportunity to participate in the growth potential of pharmaceutical, biotechnology, health care providers, medical devices and medical supply companies.
• Healthcare Issuer Diversification —The Portfolio's investments are diversified across a variety of health care sectors, which may help limit portfolio volatility.

The companies selected for the Portfolio may share a variety of traits, among others, as of the time of selection, such as:

• Innovative products and services
• Operations within a market with high barriers to entry
• Ownership of highly valuable intangible assets such as patents and intellectual property
• FactSet Estimates* consensus analyst recommendation of "Hold" or better
• Attractive balance sheets
• Well-capitalized

*FactSet Estimates is a database that provides detail-level estimates and recommendations from many different contributing firms. FactSet Estimates translates the data into a uniform consensus average recommendation from the contribution firms.

Diversification does not ensure a profit or eliminate the risk of loss.

Country Breakdown

Sector breakdown, market cap / style breakdown.

The weighted average and the weighted harmonic averages shown are attributable to the underlying portfolio holdings, and does not represent a statistics of the trust itself.

1 The Historical 12 Month Distributions figure is for illustrative purposes only and is not indicative of the trust's actual distributions. For a trust deposited after April 1, 2019, and effective July 31, 2019 for all other trusts, this per unit amount is based upon the weighted average of the actual distributions paid by the securities included in the trust over the 12 months preceding the trust's deposit date, and is reduced to account for the effects of fees and expenses which will be incurred when investing in the trust. The Historical 12 Month Distributions figure is as of the date listed in the prospectus during the trust's initial offering period, and is updated each calendar quarter following the close of the trust's initial offering period. Due to the negative economic impact across many industries caused by the recent COVID-19 outbreak, certain issuers of the securities included in the trust have elected or may elect to reduce the amount of, or cancel entirely, dividends and/or distributions paid in the future. As a result, the Historical 12 Month Distributions figure will likely be higher, and in some cases significantly higher, than the actual distribution rate achieved by the trust. There is no guarantee the issuers of the securities included in the trust will declare dividends or distributions in the future. The distributions paid by the trust may be higher or lower than the Historical 12 Month Distributions amount shown due to certain factors that may include, but are not limited to, a change in the dividends or distributions paid by issuers, actual expenses incurred, currency fluctuations, the sale of trust securities to pay any deferred sales charges, trust fees and expenses, variations in the trust's per unit price, or with the call, maturity or the sale of securities in the trust.

2 As of the close of business day prior to Initial Date of Deposit. The actual distributions you may receive will vary from any historical or estimated amount due to changes in the trust's fees and expenses, in actual income received by the trust, currency fluctuations and with changes in the trust such as acquisition or liquidation of securities. Distributions made by certain securities in the trust may include non-ordinary income.   The trust will make distributions of income and capital on each specified Distribution Date to unitholders of record on the preceding Record Date, provided that the total cash held for distribution meets or exceeds any applicable minimum that may be specified in the prospectus. Undistributed income and capital will be distributed on the next Distribution Date in which the total cash held for distribution meets or exceeds any applicable minimum that may be specified in the prospectus.   The trust may make distributions that represent a return of capital for tax purposes to the extent of the Unitholder's basis in the Units, and any additional amounts in excess of basis would be taxed as a capital gain. Generally, you will treat all capital gains dividends as long-term capital gains regardless of how long you have owned your Units. Unitholders should consult with their individual tax advisors.

Security prices will fluctuate . The value of your investment may fall over time.

An issuer may be unwilling or unable to declare dividends in the future, or may reduce the level of dividends declared. This may result in a reduction in the value of your Units.

The financial condition of an issuer may worsen or its credit ratings may drop, resulting in a reduction in the value of your Units. This may occur at any point in time, including during the initial offering period.

You could experience dilution of your investment if the size of the Portfolio is increased as Units are sold. There is no assurance that your investment will maintain its proportionate share in the Portfolio’s profits and losses.

Stocks of foreign companies in the Portfolio present risks beyond those of U.S. issuers. These risks may include market and political factors related to the company’s foreign market, international trade conditions, less regulation, smaller or less liquid markets, increased volatility, differing accounting practices and changes in the value of foreign currencies.

The Portfolio is concentrated in securities issued by companies in the healthcare industry. As discussed further in “Risk Factors – Industry Risks,” companies in the health care industry such as those involved in advanced medical devices and instruments, hospital management and biotechnology face risks such as extensive competition, product liability litigation, and evolving government regulation. Negative developments in the health care industry will affect the value of your investment more than would be the case in a more diversified investment.

We do not actively manage the Portfolio. Except in limited circumstances, the Portfolio will hold, and may continue to buy, shares of the same securities even if their market value declines.

1 The historical 12 month distributions per unit and each historical 12 month distribution rate of the securities included in the trust are for illustrative purposes only and are not indicative of the trust’s actual distributions or distribution rate. The historical 12 month distributions per unit amount is based upon the weighted average of the actual distributions paid by the securities included in the trust over the 12 months preceding the trust’s deposit date, and is reduced to account for the effects of fees and expenses which will be incurred when investing in a trust. Each historical 12 month distribution rate is calculated by dividing the historical 12 month distributions amount by the trust’s initial $10 public offering price per unit. There is no guarantee the issuers of the securities included in the trust will declare dividends or distributions in the future. Due to the negative economic impact across many industries caused by the recent COVID–19 outbreak, certain issuers of the securities included in the trust may elect to reduce the amount of, or cancel entirely, dividends and/or distributions paid in the future. As a result, the historical 12 month distributions per unit and each historical 12 month distribution rate will likely be higher, and in some cases significantly higher, than the actual distribution rate achieved by the trust. The distributions paid by the trust, as well as the corresponding rates, may be higher or lower than the figures shown due to certain factors that may include, but are not limited to, a change in the dividends or distributions paid by issuers, actual expenses incurred, currency fluctuations, the sale of trust securities to pay any deferred sales charges, trust fees and expenses, variations in the trust’s per unit price, or with the call, maturity or the sale of securities in the trust. Distributions made by certain securities in the trust may include non–ordinary income.

2 As of the close of business day prior to Initial Date of Deposit. The actual distributions you may receive will vary from any historical or estimated amount due to changes in the trust’s fees and expenses, in actual income received by the trust, currency fluctuations and with changes in the trust such as acquisition or liquidation of securities. Distributions made by certain securities in the trust may include non–ordinary income.

The trust will make distributions of income and capital on each specified Distribution Date to unitholders of record on the preceding Record Date, provided that the total cash held for distribution meets or exceeds any applicable minimum that may be specified in the prospectus. Undistributed income and capital will be distributed on the next Distribution Date in which the total cash held for distributions meets or exceeds any applicable minimum that may be specified in the prospectus.

The Trust may make distributions that represent a return of capital for tax purposes to the extent of the Unitholder’s basis in the Units, and any additional amounts in excess of basis would be taxed as a capital gain. Generally, you will treat all capital gains dividends as long–term capital gains regardless of how long you have owned your Units. Unitholders should consult with their individual tax advisors.

• Initial Deposit

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1 The S&P and Moody's ratings apply to the bonds held by the trust, and not the trust itself.   A Standard & Poor's credit rating is a current opinion of the creditworthiness of an obligor with respect to a specific debt obligation. This opinion of creditworthiness may take into consideration the creditworthiness of guarantors, insurers or other forms of credit enhancement on the obligation.   Moody's municipal ratings are opinions of the investment quality of the issues and issues in the US municipal and tax-exempt markets. As such, these ratings incorporate Moody's assessment of the default probability and loss severity of these issuers and issues.

** The principal amount of short term bonds included in the portfolio represents bonds intended to pay the deferred sales charge with the proceeds upon their scheduled maturity dates.

Historical Pricing

No price history records found for this date range

Distributions

No distribution history records found for this date range

LIQUIDATION PRICE Represents the value per unit that a unitholder would receive if the unitholder redeemed or sold units. This price is equal to the net asset value per unit plus any remaining organization costs and creation and development fee. This price reflects any remaining deferred sales charges payable in connection with a liquidation of units.

OFFER PRICE Represents the net asset value per unit plus any applicable organization costs and sales charges. This is the regular public offering price per unit paid to purchase units. This price is often subject to certain sales charge discounts described in a trust prospectus.

NET ASSET VALUE (NAV) Represents the value per unit of a trust's portfolio securities and other assets reduced by trust expenses and other liabilities, including remaining organization costs, deferred sales charges and creation and the development fee.

This page contains historical pricing or historical income distributions information for the unit trust listed above. It should not be used for federal or state tax purposes. Please contact your financial advisor for tax information.

This information does not constitute an offer to sell, or a solicitation of an offer to buy securities in any state, or other jurisdiction to any person to whom it is not lawful to make such an offer. A trust that contains a state name in the trust name is generally available for sale only to investors in that state. The information shown may relate to a trust that is no longer offered to the public. In such a case, this information does not constitute an offer to sell, or a solicitation of an offer to buy units of the trust.

Cumulative Return (%)

Average annual return (%).

Dow Jones Industrial Average The Dow Jones Industrial Average SM (DJIA SM ) is an unmanaged index generally representative of the U.S. stock market. This index consists of a price-weighted average of 30 blue-chip stocks that are generally the leaders in their industry. Indices are statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

MSCI EAFE Index The Morgan Stanley Capital International Europe, Australasia, and Far East Index ("MSCI EAFESM") is an unmanaged index generally representative of major overseas stock markets. The MSCI EAFE SM Index is the exclusive property of Morgan Stanley Capital International Inc. and has been licensed for use by Invesco Distributors, Inc. and certain trusts. MSCI is a service mark of Morgan Stanley Capital International Inc. The trust is not sponsored, endorsed, sold or promoted by Morgan Stanley Capital International Inc. or Morgan Stanley & Co. Incorporated (collectively,"MS"). Neither MS nor any other party makes any representation or warranty, express or implied, to the owners of the trusts or any member of the public regarding the advisability of investing in unit investment trusts generally or in the trust particularly or the ability of the MSCI EAFESM Index to track general stock market performance.

NASDAQ 100 Index NASDAQ 100 index represents 100 of the largest non-financial, domestic and international companies traded on the NASAQ Stock Market, Inc. based on market capitalization.

S&P 500 Index The Standard & Poor's 500 Index is an unmanaged index generally representative of the U.S. stock market.

Russell 2000 Index The Russell 2000 Index is an unmanaged index generally representative of the U.S. market for small-capitalization stocks. Frank Russell Company ("FCR") is the source and owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Frank Russell Company is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof.

S&P MidCap Index  The Standard & Poor's MidCap 400, introduced in 1991, is now the most widely used index for mid-sized companies. S&P MidCap 400 covers approximately 7 percent of the U.S. equities market.

DJ Select Dividend Index The Dow Jones Select Dividend Index seeks to represent the top 100 U.S. stocks by dividend yield. The Index is derived from the Dow Jones U.S. Total Market Index and generally consists of 100 dividend paying stocks that have: 5-year non-negative Dividend Growth; 5-year Dividend Payout Ratio of 60% or less; and 3-month average daily trading volume of at least 200,000 shares. The Dow Jones Select Dividend IndexSM is a service mark of Dow Jones & Company, Inc. and has been licensed for use for certain purposes by Invesco Distributors, Inc. and the trust. The trust, based on the Dow Jones Select Dividend IndexSM, is not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such product.

DJ Consumer Goods Index The Dow Jones U.S. Consumer Goods Index is service mark of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Invesco Distributors, Inc. and the trust. The trust, based on the Dow Jones U.S. Consumer Goods Index, is not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such product.

DJ Financial Index The Dow Jones U.S. Financials Index is service mark of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Invesco Distributors, Inc. and the trust. The trust, based on the Dow Jones U.S. Financials Index, is not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such product.

DJ Healthcare Index The Dow Jones U.S. Health Care Index is service mark of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Invesco Distributors, Inc. and the trust. The trust, based on the Dow Jones U.S. Health Care Index, is not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such product.

DJ Industrials Index The Dow Jones U.S. Industrials Index is service mark of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Invesco Distributors, Inc. and the trust. The trust, based on the Dow Jones U.S. Industrials Index, is not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such product.

DJ Materials Index The Dow Jones U.S. Basic Materials Index is service mark of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Invesco Distributors, Inc. and the trust. The trust, based on the Dow Jones U.S. Basic Materials Index, is not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such product.

DJ Oil & Gas Index The Dow Jones U.S. Oil & Gas Index is service mark of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Invesco Distributors, Inc. and the trust. The trust, based on the Dow Jones U.S. Oil & Gas Index, is not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such product.

DJ Technology Index The Dow Jones U.S. Technology Index is service mark of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Invesco Distributors, Inc. and the trust. The trust, based on the Dow Jones U.S. Technology Index, is not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such product.

DJ Telecom Index The Dow Jones U.S. Telecommunications Index is service mark of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Invesco Distributors, Inc. and the trust. The trust, based on the Dow Jones U.S. Telecommunications Index, is not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such product.

DJ Utility Index The Dow Jones U.S. Utilities Index is service mark of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Invesco Distributors, Inc. and the trust. The trust, based on the Dow Jones U.S. Utilities Index, is not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such product.

DJ Total Market Index Dow Jones U.S. Total Market Index is service mark of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Invesco Distributors, Inc. and the trust. The trust, based on the Dow Jones U.S. Total Market Index, is not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such product.

MS Technology Index The Morgan Stanley Technology Index SM is the exclusive property of Morgan Stanley. Morgan Stanley and the index are service marks of Morgan Stanley and have been licensed for use by Invesco Distributors, Inc. The trust is not sponsored, endorsed, sold or promoted by Morgan Stanley or Morgan Stanley & Co. Incorporated (collectively, "MS"). Neither MS nor any other party makes any representation or warranty, express or implied, to the owners of the trust or any member of the public regarding the advisability of investing in funds generally or in the trust particularly or the ability of the index to track general stock market performance.

IPOX 30 Index The IPOX-30 Index was first published on August 10, 2004. However, IPOX Schuster LLC established the index performance history as of January 3, 1989. The index components are selected purely through rules-based, quantitative criteria. IPOXTM is a registered/pending international trademark of IPOX Schuster LLC. IPOX Indexes (patent pending).

DJ Consumer Services Index The Dow Jones U.S. Consumer Services Index is service mark of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Invesco Distributors, Inc. and the trust. The trust, based on the Dow Jones U.S. Consumer Services Index, is not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such product.

DJ Select MicroCap Index The Dow Jones Select MicroCap Index SM is a service mark of Dow Jones & Company, Inc. and has been licensed for use for certain purposes by Invesco Distributors, Inc. and the trust. The trust, based on the Dow Jones Select MicroCap Index SM , is not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such product.

IPOX 100 Index The IPOX-100 Index was first published on August 10, 2004. However, IPOX Schuster LLC established the index performance history as of January 3, 1989. The index components are selected purely through rules-based, quantitative criteria. IPOXTM is a registered/pending international trademark of IPOX Schuster LLC. IPOX Indexes (patent pending).

Russell 1000 Value Index Frank Russell Company ("FCR") is the source and owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Frank Russell Company is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof.

Barclay's U.S. Aggregate Index Barclay's U.S. Aggregate Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market.

MSCI U.S. REIT Index GD MSCI U.S. REIT Index GD is an unmanaged index considered representative of real estate equity performance. The index is computed using the gross return, which does not withhold taxes for non-resident investors.

S&P Global 1200 Index The S&P Global 1200, the first real-time investable global index, offers investors efficient exposure to the world economy. Capturing approximately 70% of the world's capital markets, it is a composite of 31 local markets from seven headline indices, many of which are accepted leaders in their regions.

S&P 500 Industrials The S&P 500 Industrials is an unmanaged index considered representative of the industrials market.

S&P ADR Index The S&P ADR Index is constructed from the non-U.S. components of the S&P Global 1200.

MSCI Emerging Markets The MSCI Emerging Markets is an unmanaged index considered representative of stocks of developing countries.

BofA Merrill Fixed Rate Preferred Securities BofA Merrill Lynch Fixed Rate Preferred Securities Index tracks the performance of fixed-rate U.S. dollar-denominated preferred securities issued in the U.S. domestic market.

S&P Composite 1500 Index The S&P Composite 1500 Index is a broad market portfolio representing the large, mid- and small-cap segments of the US equity market.

Dow Jones U.S. Large Cap Growth Index The Dow Jones U.S. Large-Cap Growth Total Stock Market Index is a subset of the Dow Jones U.S. Total Stock Market Index, which measures all U.S. equity securities with readily available prices. It includes stocks among the largest 750 that demonstrate growth style characteristics.

Dow Jones U.S. Market Index The Dow Jones U.S. Market Index is a market-capitalization-weighted index maintained by Dow Jones Indexes providing broad-based coverage of the U.S. stock market. The Dow Jones U.S. Market Index, considered a total market index, represents the top 95% of the U.S. stock market based on market capitalization. Also known as the "Dow Jones U.S. Index".

S-Network Agriculture Index SM (AGRI IndexSM) The AGRI IndexSM is a compilation of global agricultural stocks that are principally engaged in four primary agricultural sectors: chemicals and fertilizers, equipment and irrigation, commodity agricultural products, and livestock producers.

AMEX Gold Miners Index The AMEX Gold Miners Index is a modified market capitalization weighted index comprised of publicly traded companies involved primarily in the mining for gold and silver. The Index includes common stocks and ADRs.

S&P100 Index The S&P 100 Index, a sub-set of the S&P 500®, measures the performance of large cap companies in the United States. The Index comprises 100 major, blue chip companies across multiple industry groups. Individual stock options are listed for each index constituent.

Barclays Municipal Bond Index Barclays Municipal Bond Index is an unmanaged index considered representative of the tax-exempt bond market.

S-Network Water Index SM The S-Network Water IndexSM (Ticker: ^JGI) is the composite index and includes water utilities and companies engaged in water infrastructure and technology development. The composite is divided into two sub-indexes: S-Network Water Works SM (Ticker: ^JWW), a compilation of 30 water utilities, and S-Network Water Technology and Infrastructure SM (Ticker: ^JWT), which embraces 30 water technology and infrastructure stocks. "S-Network Global Indexes, LLC SM ", and "S-Network Water Tech Index SM " and "S-Network Water Works Index SM " are service marks of S-Network Global Indexes, LLC and have been licensed for use by the Portfolio. The Portfolio is not sponsored, endorsed, sold or promoted by S-Network Global Indexes, LLC and S-Network Global Indexes, LLC makes no representation regarding the advisability of investing in the Portfolio.

S-Network Water Technology and Infrastructure SM S-Network Water Technology and Infrastructure SM (Ticker: ^JWT) embraces 30 water technology and infrastructure stocks. S-Network Global Indexes, LLC SM , and S-Network Water Tech Index SM " and "S-Network Water Works Index SM " are service marks of S-Network Global Indexes, LLC and have been licensed for use by the Portfolio. The Portfolio is not sponsored, endorsed, sold or promoted by S-Network Global Indexes, LLC and S-Network Global Indexes, LLC makes no representation regarding the advisability of investing in the Portfolio.

MSCI Commodity Producers Index MSCI Commodity Producers Index is a free float-adjusted market capitalization index designed to reflect the performance of listed commodity producers across three industries.

Dow Jones U.S. Large-Cap Growth Total Stock Market Index The Dow Jones U.S. Large-Cap Growth Total Stock Market Index is a subset of the Dow Jones U.S. Total Stock Market Index, which measures all U.S. equity securities with readily available prices. It includes stocks among the largest 750 that demonstrate growth style characteristics.

Ardour Global Index (Composite) AGIGL Index "Ardour Global Indexes, LLC SM ", "ARDOUR GLOBAL INDEX SM (Composite)", "ARDOUR COMPOSITE SM ", "ARDOUR GLOBAL INDEX SM (Extra Liquid)", "ARDOUR GLOBAL ALTERNATIVE ENERGY INDEXES SM ", and "ARDOUR GLOBAL ALTERNATIVE ENERGY SM " are service marks of Ardour Global Indexes, LLC and have been licensed for use by Invesco Ltd. and the trust. The trust is not sponsored, endorsed, sold or promoted by Ardour Global Indexes, LLC and Ardour Global Indexes, LLC makes no representation regarding the advisability of investing in the trust.

Ardour Global Alternative Energy Index (Composite) The Ardour Global Alternative Energy Index SM - Extra Liquid (TICKER: AGIGL) is a compilation of global alternative energy stocks that are principally engaged in the business of alternative energy. The AGIGL comprises public companies engaged in five primary sectors: a) Enabling Technologies, b) Environmental Technologies, c) Environmental Efficiency, d) Alternative Energy Sources, and e) Distributed Generation. Constituents include the thirty largest and most actively traded stocks in the Ardour Global IndexSM (Composite). An investment cannot be made directly into an index.

WILDERHILL CLEAN ENERGY INDEX® (ECO) A priority of WilderHill Clean Energy Index (ECO) is to define and track the Clean Energy sector: specifically, businesses that stand to benefit substantially from a societal transition toward use of cleaner energy and conservation. Stocks and sector weightings within the Index are based on their significance for clean energy, technological influence and relevance to preventing pollution in the first place.

S&P Small Cap 600 Index(ECO) The S&P Small Cap 600 Index is a market-value weighted index that consists of 600 small-cap U.S. stocks chosen for market size, liquidity and industry group representation.

S&P Euro 350 Index The S&P Europe 350® is an equity index drawn from 17 major European markets, covering approximately 70% of the region's market capitalization. It is a unique index, designed for the investor seeking broad market exposure in Europe through an index that is efficient to replicate.

The performance data quoted for the individual series of a trust that has not terminated or has an open termination date is from the deposit date through the current date quoted. For individual series that have terminated, performance data quoted is from the deposit date through the termination date.

Performance data quoted represents past performance, which is no guarantee of future results. Investment returns and principal value will fluctuate and units, when redeemed, may be worth more or less than their original cost.

Returns are cumulative total returns (not annualized) unless labeled as average annual total returns. All returns reflect trust expenses as incurred and assume reinvestment of income and principal distributions, except for trusts that do not offer the option of reinvesting distributions into additional trust units. Please see the related trust prospectus for additional information. Returns do not reflect taxes.

A trust's performance, especially for short time periods, should not be the sole factor in making your investment decision. Please keep in mind that high, double-digit returns are highly unusual and cannot be sustained. Investors should also be aware that these returns were primarily achieved during favorable market conditions.

Returns With Sales Charge reflect the maximum sales charge that would be payable by an investor upon sale or redemption of units at the end of the applicable period(s). The sales charge includes any initial or deferred sales charges other than creation and development fee. These returns do not reflect any creation and development fee prior to collection (generally the close of the initial offering period). Any creation and development fee is reflected in the returns as of the time of payment. by a trust. These returns reflect any contingent deferred sales charges only if the charges would be payable upon a unit sale or redemption at or prior to the end of the applicable performance period(s). Certain trusts are no longer offered for sale to the public and, as a result, do not publish an offer price or have a sales charge. In these cases, returns will not reflect a sales charge if a trust was not actually offered for sale to the public on the first day of the applicable period because units of the trust could not have been purchased by an investor at that time. These returns will show 'N/A' for With Sales Charge data

Returns Without Sales Charge do not reflect any sales charge and do not reflect any creation and development fee prior to collection (generally the close of the initial offering period). Any creation and development fee is reflected in the returns as of the time of payment by a trust.

There is no assurance the trust will achieve its investment objective. An investment in this unit investment trust is subject to market risk, which is the possibility that the market values of securities owned by the trust will decline and that the value of trust units may therefore be less than what you paid for them. Accordingly, you can lose money investing in this trust. Certain trusts are unmanaged and their portfolios are not intended to change during the trusts' lives except in limited circumstances. Certain trusts are passively managed and seek to track their target index during the trust's life. For a more complete discussion of the risks of investing in this trust, click on the Fact Card.

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