A business proposal is a formal document you send to prospective clients, partners or investors, asking the question – “Do you want to do business with us?”, but it is more than that. The business proposal’s mission is to convince these people to want to do business with you, and how it does this is through the outline of what your proposed business is, what the costs, advantages, and risks are, and why in the end you are the best person or company for the job.
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Small Business Investment Proposal Template
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The Basic Parts of a Business Proposal:
After all the budgeting and project analyses and plans are laid out, it’s time to draft the proposal. Whoever you’re addressing it to, a proposal will follow this general outline:
- Title Page: This should contain your company name, the date, and the addressee’s details. Be direct here as much as possible. Serious prospects will be turned off by a generic “To Whom It May Concern.” Do your research and find out the names of your clients.
- Table of contents: Mostly for detailed, multiple-paged proposals.
- Executive summary: Make a statement of a customer issue and how your service is the solution.
- Approach and methodology: Your proposed plan to solve the client’s problem.
- Qualifications: List your past successes in similar or related situations; convince them you are the one for the job.
- Schedule and benchmarks: A timeline of the project.
- Cost proposal: This will include an estimated budget (for investors) and payment schedules.
An easier way to get started is to peruse this list and pick one that fits closest to your situation. You can draft your proposal loosely on top of your free sample to make a winning business proposal. You can also check cost proposal templates for more.
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How to Use These Templates?
These free documents can be downloaded as Word documents, completely editable. Some will be completed samples you can tailor to fit your needs, and others will be outlines showing you where to input your information. Creating a business or Sales Proposal Template cannot be made easier.
The Best Time to Draft a Business Proposal:
Not every business will have to draft a business proposal, nor would it have to do it for every business that has a partnership in it. (There will be times you will also receive a proposal from another firm, for example.) You should think of the business proposal as the first step to any major, planned initiative:
- When you are looking to expand your influence by linking up with related firms as partners.
- When you are seeking extra funding to tackle some ambitious growth project.
- When you are pitching clients, especially buyers who go wholesale, to hire you as their supplies.
Al these are examples of external proposals when you are trying to put your company forward as an option to prospective clients who are outside your company. Take a look at investment proposal templates for more.
But a business proposal can also be issued within a company, addressed to the appropriate decision-makers when you want to push a particular project you think will benefit the company’s mission. This takes the format of a project proposal that follows the general guidelines and outline of a proper business proposal.
General FAQs
1. What Does a Business Proposal Mean?
A business proposal is a document containing an offer that’s designed to persuade an organization to buy a specific product or service. It can be either solicited or unsolicited. This proposal outlines the services that you’ll be offering while also explaining why you’re the best person for the job.
2. What are the Elements of a Business Proposal?
The basic elements of a business proposal are as follows:
- Title Page
- Table of contents
- Executive summary
- Problem statement
- Approach and methodology
- Schedule and benchmarks
- Summary of expenses and benefits
3. What is the Difference Between a Business Proposal and a Business Plan?
A business proposal is when an established business is trying to sell a prospective client on their product or service. A business plan outlines a detailed description of how a business is set up along with its company structure, products & services, marketing strategy, financial projections, etc.
4. What are the Types of Business Proposals?
The three types of business proposals are:
- Formally Solicited, wherein the proposal responds to an official request for proposal.
- Informally Solicited, wherein the proposal comes in when there isn’t an official request for a proposal.
- Unsolicited, wherein a product/service is introduced to a prospective customer through marketing brochures.
5. What is the Purpose of a Business Proposal?
The main purpose of a business proposal is to offer solutions to the problems faced by prospective customers. It aims to put your business and your client on the same page. Apart from that, it also enables businesses to secure funding so that they can sell their products or services.
