As the world is slowly moving towards entrepreneurship, sales, and marketing. If a business doesn’t sell, it doesn’t make money, and it fails when it is not making money. This is why there is a need to write a business proposal.
A well-written business proposal can determine if your business will get that big client or lose it.
There are many ways to get a job, and most of them don’t involve writing a business proposal. However, if you want the job you want, you need to write a business proposal.
A business proposal is your chance to show your potential employer why you’re the best candidate for the position. It can be hard to win over the hiring managers, but a good business proposal will make it easy. You’ll also need to be prepared for the questions they might ask. Here are some tips on how to write a great business proposal.
In this article, we will be showing you how to craft a great business proposal, make more sales and achieve your business goals.
Table of Contents
- What is a Business Proposal?
- Is a Business Proposal the same as Business Plan?
- Types of Business Proposal
- What Should I Include in My Business Proposal?
- Steps to Write a Business Proposal
- Contents Of A Business Proposal
What is a Business Proposal?
A business proposal is an official document created by a company and sent to a prospective client outlining your offers to secure a business deal or agreement. The proposal can be in a paper write-up or video format. However, most businesses present their proposal in a paper format.
Is a Business Proposal the same as Business Plan?
Many people are always confused about the difference between a business plan and a business proposal. While some people say that there is no difference between the two, the truth is that there is a difference.
A business proposal is different from a business plan. A business proposal intends to sell or offer a product or services to the potential client, while a business plan’s main objective is to sell the company itself. It tells in detail strategies of how your business operates and makes money.
Most business plans are written as a request for funding, while business proposals are solely for sales and not after funding.
Types of Business Proposal
There are two major types of business proposals that we will discuss in this article.
1. Unsolicited Business Proposal
An unsolicited business proposal is one in which there is no formal request for the proposal by the client. This is more like a cold emailing kind of marketing strategy. In an unsolicited business proposal, the proposal is written from information gotten during research by identifying the client’s needs and personalizing your proposal to meet their needs.
2. Formally Solicited Business Proposal
This type of business proposal occurs when a client formally requests a proposal. The proposal is tailored to meet the client’s needs in the formally solicited business proposal. In this situation, Clients give you the necessary information about their problems and what they need and request a proposal. You are now expected to write a proposal that meets the client’s requirements and solves their problems. This type of proposal is straightforward.
What Should I Include in My Business Proposal?
While writing a business proposal, you should include very important things in your proposal. I have classified this thing into three parts, always known as the three Ps. This consist of the problem statement, the proposed solution, and the pricing
One of the first things is defining the problem statement and outlining your business’s scope and objectives. This helps to guide you on the vision of your business. The problem statement provides a detailed explanation of the problem faced by your potential client. It highlights the pain point and gives you an overview of the general problem. It is necessary to be able to determine a perfect solution.
Also, outlining your business objective is a way of shaping your business. It makes it easy to know what you are offering and your unique selling points. You should be able to answer all of these questions.
● What is the problem I am solving with my business?
● How does my business help prospective clients?
● What are the unique services I offer that solve the client’s problem?
Another important thing to do is outline the project scope and the proposed solution. You should explain to your potential client how you intend to solve this problem.
What are the materials, experience, or knowledge you have that will help you solve this problem? Outline briefly to your client how, where, when, who and what will be used to solve this problem.
Doing this helps gain trust, and it makes your client have confidence in your services because they are sure you know what you are doing.
The third thing to do is calculate the cost of delivering the job. This is important to determine the average cost of job delivery. Underestimation or overestimation is not good in a business, leading to losses.
After carefully considering the method to solve the problem, the next step is cost analysis. This will give you and your client a complete guide on the amount of money required to take the job to completion from the start.
Steps to Write a Business Proposal
A business proposal is an important document that shows your worth to your potential clients. It can show that you have the skills and experience necessary to take on a project, and it can also represent your commitment to the project and the client.
However, writing a business proposal can be difficult. There are many different types of proposals, and each one requires its own set of steps and techniques. Fortunately, we’ve put together a guide that will help you write a great business proposal.
Outline Your Qualifications
First and foremost, you need to outline your qualifications for the position. This will help show your potential employers that you have the experience and skills necessary for the position. You should also include a list of examples of your work. This will show your potential employers that you are reliable and trustworthy.
Explain What You Can Do For The Company
Your business proposal should start with an overview of your skills and experience. You’ll need to include a summary of your work, what you know about the company, and why you’d be a great fit for the position. You can also list any challenges that the company is facing. This will give your potential employer a good idea of how to solve those challenges.
Show How You Would Handle A Difficult Situation
One of the most important things you can do when writing a business proposal is to show how you would handle a difficult situation. Show your potential employer that you’re the best candidate for the position and that you’re the kind of person they can trust. This will make it much easier for them to decide whether you’re the right person for the job.
If you don’t have experience in the position, make sure to mention that in your business proposal. This will show your potential employer that you’re willing to learn and grow as a business owner. You might also want to mention something about your plans for succession if the position becomes unavailable.
Contents Of A Business Proposal
Every business has different needs, which means that every position has its requirements. When you write a business proposal, you’re taking the opportunity to meet those needs and show your potential employer why you’re the best fit for the job.
When drafting a business proposal, make sure it has these sections.
The title of your business proposal should be compelling enough to keep your readers attention fixed to your proposal amid other competitors. This is the first thing your client will see and will most likely determine if your proposal will be worth reading.
2. Table of Content
The table of content makes your proposal easy to read and pages easy to locate. It is a fundamental part of the business proposal. Clients find it easy to skim through business proposals when they come with a table of content. This helps busy clients go straight to the point when reading your business proposal.
3. Executive Summary
The executive summary is a short write-up that introduces your company and provides an overview of the company’s objectives and goals. It also outlines your company’s mission and vision. Briefly state some completed jobs and includes other relevant details of the company.
4. Problem Statement
The goal of the problem statement is to outline the client’s current challenge, create a sense of urgency, and explain why the problem needs to be solved. A well-written problem statement tells your prospect you are interested in helping solve this problem, and it creates an opportunity to point to your prospect a problem they might not be aware they had.
5. Proposed Solution
The proposed solution tells the prospect about your ability to solve the problem. It tells in detail how you intend to solve the outlined problem. This requires a detailed explanation of how you intend to satisfy your client, and this part is relevant and one of the factors that determine if you will get the business or not.
This is where you brag a bit about your company’s achievements in the past and tell the prospective client about your ability to deliver and why you are the most qualified person for the job. Showing the client evidence of your past work is a sure way to grab their attention and make them trust you with their work.
This is a detailed analysis of the project timeline and how long it will take to deliver the job. This is necessary as it assures the client of your ability to deliver. The project timeline gives a critical analysis of the project schedule. It tells which part of the job will come first and the last to be executed.
8. Pricing and Legal
This is a breakdown of the cost and payment schedule if any. It also tells the client about all legal issues involved, if any. The pricing and legal aspect are very important, especially for jobs that involve huge amounts. The proposal can include a pricing plan which tells your prospective client how they will make the payments. Most huge contracts get payments up to three times.
One thing that pushes a prospect to pick your proposal over others is outlining what they stand to benefit from doing business with you. Tell your client what else you will offer them if they do business with you that other competitors will most likely not offer.
10. Terms and Condition
This section states all available terms and conditions involved in the job execution. This includes the consequence of contract default, and it provides all available clauses on the business proposal.
11. The Acceptance
This includes all signatories to the acceptance of the proposal. It should have space for you to sign and for your client to sign, including other signatories to serve as witnesses to the agreement.
Conclusively, writing a business proposal is a detailed task and requires individuals to be focused on how to persuade the client best to patronize your business against others. This article is a perfect guide for your business proposal write-up.