This article contains steps on how to write a business proposal in the year 2022 as well as why it is necessary for a start-up.
You have had a beautiful business idea locked up in your head and now you have eventually brought it to reality. Kudos!
Starting a business and watching it grow gradually feels good. Sometimes, the speed at which our business grows can be astonishing. Even at that, we always want more. You would always feel there is a lot of untapped potential around you and certain that prospects would benefit from your product or service but the problem is how to reach these people. Well, this is not much of a challenge. A business proposal comes in handy at this stage of your business.
Now that you have an answer, you are probably worried about how to go about writing one right? Worry no more. This article will take you through the process in the simplest ways, but before then, let’s quickly understand clearly what a business proposal is.
WHAT IS A BUSINESS PROPOSAL?
Oftentimes, a business proposal is confused for a business plan. A business plan and proposal are two different documents with different purposes and functions respectively. The major difference between both is that a business plan is a document that presents facts, while a business proposal is a request for a deal and a quotation of prices.
A business plan is a document that clearly shows how a business intends to achieve its objectives and goals. On the other hand, a business proposal is a document that a business uses to request a contract from a client.
A business proposal goes to a prospective client directly from an established business. A proposal is intended to get investors to support a business.
Though the business proposal provides an overview of what the company does, just like a business plan, its major objective is to provide the details of the suggested business idea.
A business proposal aims to answer the following:
- 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
TYPES OF BUSINESS PROPOSAL
There are basically two types of business proposals: Solicited and Unsolicited proposal.
1. Solicited Business Proposals
This type of proposal is requested by a prospective client. In a solicited business proposal, the other organization specifically requests for a proposal. This happens when a company needs a problem solved; they invite different business entities to submit a proposal which details how they will solve the problem. In this case, there is a competition and only the best gets the contract.
2. Unsolicited Business Proposal
In the case of unsolicited proposal, the potential client may not request a proposal, you approach them with a proposal as long as you have identified a problem can solve for them.
STEPS ON HOW TO WRITE A BUSINESS PROPOSAL
Writing a business proposal is not something you just jump on. Before writing your proposal, you need to carry out background checks on the business your writing, in order to understand what exactly you will include while writing.
In a situation where it is a solicited proposal (the prospect requests a proposal), ensure you read it carefully so you know exactly what they’re looking for. You can go further to have a meeting with the new client to fully understand the problem they’re trying to solve.
Once you have properly done your research, it’s safe to begin writing your business proposal following these steps:
1. Start With a Title Page
A title page is more like an introduction. It has to convey some basic information. On it should bear your name, your company’s name, the date you submitted the proposal, and the name of the prospect you are submitting the proposal to.
The look of your first page may make or ruin your chances. So you need to make sure it’s catchy and aesthetically appealing.
2. Create a Table of Content
Sometimes, flipping through the pages in search of particular information can be draining. Nobody has time to go through such stress. The people you will be pitching to are usually executives, who are mostly busy people and don’t have time to read your entire proposal at once. This is where a table of contents comes handy.
Adding a table of contents to your proposal makes it easy for your prospect to go through it at their own pace unaided. It also makes it easy for them to skim through parts of the proposal that they deem more important.
In other words, table of content makes the information in your proposal very accessible.
If you are sending your proposal electronically, it helps to include a clickable table of content that will jump to the different sections of your proposal for easy navigation.
3. Write Your Executive Summary
This can be likened to your value proposition. The executive summary shows why you are sending the proposal and why your solution is the best of every other option.
It should outline the benefits of your company’s products or services, and how they can solve your potential client’s problem. This part of the proposal has to be specific and straight to the point.
It gives your buyer a reason to continue reading your proposal. A well written executive summary should give your prospect a clear idea about what your company does and how you can help them without having to go through the whole proposal.
4. State the Problem or Need
This section is where you provide a summary of the issue affecting the potential client. This area gives you the opportunity to show them you have a clear understanding of their needs and the problem.
It therefore requires careful research to be able to write this. You have to do your homework. Take a holistic look at the specific issues your client is facing that you can help solve.
5. Propose a Solution
This is the point you proffer solution to the problem. Make sure your proposed solution is in line with the needs of your prospect so they know you specifically created the proposal for them. Let them know which methods you will use to solve the problem and a timeframe for when they should expect them.
Spare no details with respect to the solution you will provide. This is another section that may win you the contract. Nobody desires to invest where results are not certain.
6. Share Your Qualifications
Again, in business, trust is paramount. Before trust can be built, you will have to proof that you are qualified enough. Why should they trust you? Use this section to prove why you are best for the job or contract as the case may be.
You can spice it up by including client’s success stories; mention any relevant awards or accreditations to boost your authority. They may be smiling sheepishly at this point. Of course, that’s a good sign.
This section is important because it acts as social proof. You can highlight what your company does best and how qualified your team is
To further show 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 the jobs. You can do this by including a roadmap with deadlines.
7. Include pricing options
Most of the time, this is where the problem lies. It gets a bit dicey, as you may not want to under or over-price your product.
However, you can outline your fees, payment schedule, and payment terms. You may go further to break up your pricing in stages to ensure your potential client clearly knows what he is paying for.
8. Clarify Your Terms and Conditions
This is where you go into detail about the project timeline, pricing, and payment schedules. It’s a summary of what you and the client are agreeing to if they accept your proposal. To avoid misunderstanding, prepare clear terms and conditions with your own legal team before sending the proposal to the client.
This aspect of a business proposal is important. It outlines all the legal aspects of the contract. That is why the terms and conditions need to be as clear as possible.
9. Create a Space for Signatures to Document Agreement
After your client has read your business proposal and has consented to work with you, the next thing is to accept by impending their signature. This is the last part of your business proposal. So, include a signature box for the client to sign and let them know exactly what they are agreeing to when they sign. Hence, create a small section at the end of your proposal to get the necessary signatures. This allows your client to sign the proposal.
That is all there is in writing a proposal. With this in mind, here a helpful tips to writing a professional business proposal:
- Start with an outline.
- Try less text, more data and visuals.
- Pimp up your business proposal template with some extra colors.
- Add social proof.
- Keep it simple and unique.
- Quality control.
There’s a lot to keep in mind when writing a business proposal. Here are a few tips to help you out:
CONCLUSION
Basically, your business proposal should be aimed at identifying your client’s needs and how your business plans to solve the needs. Regardless of the type of proposal, the structure remains the same. There are numerous business proposal templates online that you can look up for a better understanding.
With that and the information contained in this article, you are good to draft a contract-winning proposal.
Read Also
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- How to Become a Successful Business Manager
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- Ways of Raising Capital for a Startup Business
- Top 20 Small Business Ideas to Start at the University
- 6 Things Business Owners Look For in a Graduate
- 10 Reasons to Start a Business Before Graduation
- How to Write a Successful Business Plan
- Top 10 Best Business Schools in the World
