Business Proposal Writing Tips for Small Businesses

When a major company is looking to purchase products and/or services from other companies, there are a lot of other competitor companies who would be lining up and submitting their business proposal in the hopes of winning a contract. Being able to be chosen by a major company to supply all their operation need means an increase in revenue and profit.

Business Proposal and Its Purpose

According to, “a business proposal is a written document sent to a prospective client in order to obtain a specific job”.

Therefore, as an entrepreneur, your ability to write an effective business proposal can dictate to your company’s potential success or failure. And since a business proposal is a form of a persuasive document, the burden often falls on the writer because he is responsible for convincing the client into choosing your offering.

That is why even the most seasoned entrepreneur may find the task of writing a business proposal challenging and overwhelming.

However, to make sure that your business will be successful, it is your responsibility as an entrepreneur to know how to write an effective business proposal and lead the entire organization to success.

The main purpose of writing a business proposal is to respond to the request of another company and secure a contract with the requesting party. And the requesting party needs products and/or services suppliers, the product proposal templates should provide essential information, such the quality of the products and/or services, its price, deliveries, and payment terms.

An Effective Business Proposal

It is not a secret that your ability to write a good business proposal can help you secure a deal or business agreement with a prospective client. Oftentimes, when a company is looking for an outside source to purchase products and/or services from, it would require bidders to submit a request for proposal (RFP).

This formal document shows an outline of the requirements which the bidders need to deliver at a specific period of time. Aside from convincing the requesting party that yours is the perfect company to do the job, it is also equally important to show them how you will be able to meet their personal standards and company needs.

  • Understand the Client’s Requirements – Having a clear picture of the factors that played behind the client’s problem is crucial to understanding their requirements.
  • Get to Know the Client – Without taking the time to research about the client, writing a business proposal can become a more challenging task. To make things easier for you, it is smart to determine the problems of the client so that you can write a proposal that can effectively solve the problem. A good way to do this is to talk to the client personally and get to know about what their goals, policies, and current issues.
  • Develop a Methodology – Once you have determined the client’s problem, you will need to develop a methodology that’s beneficial for your client. Gather the selected people in your organization and brainstorm ideas. Make sure that your methodology can address their concerns and meet their set of requirements.
  • Stand Out – If you want the client to notice your business plan, make certain that you have highlighted the strengths and achievements of your company.

Types of Business Proposals

Once you have clearly defined the core of your business, you will realize how your company is able to fulfill the needs or calling of other companies. However, it is important to be aware of the difference between a business proposal and business plan. Imagine how embarrassing it would be to stand in front of a prospective client while discussing your business plan. It is important to know that a business proposal is your sales pitch to the requesting party while a business plan is usually presented to an investor, not to a client.

In this section, you will learn the different types of business proposals, as well as the nature of their content.

1) Solicited Business Proposal

When a large company needs to buy products and/or services from an external source, an RFP is usually requested to the bidding party. As discussed earlier, the RFP is a formal document that stating the specific needs of the requesting party. This type of business proposal acts your application or ticket to persuading the requesting party to choose your products and services.





2) Unsolicited Proposal

This type of business proposal is usually written when the requesting party is not asking for an RFP from the bidders. However, it is important for the bidder to determine how your company is able to address and deliver the other party’s unidentified needs.





3) Grant

Unlike the other types of business proposals, grant proposals templates usually seek to fund particular types of businesses or projects. However, make sure that you are able to provide the client with a range of information, such why you are qualified and how you will utilize the fund.





Now that we have reached the last part of this, make sure to keep all things you have learned in mind always when writing an effective business proposal. If you want to find more references, do not hesitate to view and download our collection of company proposal templates.



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