BUSINESS PROPOSAL

A Business Proposal is a document that offers a solution to a problem or a course of action in

response to a need. Unlike a business plan, which is written to run your company and raise
capital, a business proposal is an unsolicited or solicited bid for business.

A business proposal is an offer letter which can be categorized as a "Persuasive document." It

has been called or categorized such because the sole aim of preparing and sending an offer
letter is to persuade the client to purchase the product or service or accept an offer made by
the company. It is not an easy task to write an offer letter and make it persuasive in nature so
that a reader may feel motivated to look into the proposal and make a decision to purchase
your services or accept your proposal.

Types of Business Proposal:

 Solicited Business Proposal:

A corporation or government body is seeking a business to fulfill a project or complete a task

and thereby, allows companies to bid for the project. An open bid is placed on the market
with other companies competing for an interview spot. The winning candidate is offered the
project.

 Unsolicited Business Proposal:

At some point, a small business may want to do business with a larger company or forge a
joint venture. A well-written business proposal should win the hearts and minds of the target
audience.

Elements of Business Proposals

 Solutions: After you have written a lead paragraph on the company's needs and
problems, follow up with a solid presentation of how your business can provide
solutions. The key here is to promise solutions you can deliver.

 Benefits: All winning business proposals, clearly outline for the company the benefits
to be gained from doing business with you. If your small business can offer complete
confidentiality and meet tight deadlines state it in your benefits section.

 Credibility: This is often the overlooked portion of a business proposal but all
winning proposals glow with credibility. If you have worked with clients in the same
field or have an award-winning business, then third-party endorsements will build
credibility.

 Samples: A business proposal with samples and evidence of your ability to deliver is
vital to gaining the winning bid. A small sample of your work can show your ability
to do the job.

 Targeted: A winning business proposal is all about communication. Speak in a

language spoken by your intended audience. If the proposal evaluators are from an
engineering background or financial department use the appropriate jargon.
Structure of a Business Proposal

Every major component of the proposal has its own section with a heading. With the
exception of the introduction, which does not have a title, start each heading at the left margin
and use bold title case. Make titles short and descriptive of the sections that follow.
Whenever information from a source is mentioned in the proposal, cite it within the text. Put
the last name of the author, a comma and the publication date of the source inside
parentheses, directly after the information.

 First Section (The introduction stating the situation)

The first section, the introduction, is a strong statement that provides an overview of the
proposal. Summarize the problem to be addressed or the goal to be attained. Explain why
society needs your plan. Indicate the products or services to be developed and the expected
consumer response. Include details that highlight the originality of your goods or services.
What sets them apart from what is already available? Identify the primary participants in the
plan and how their past experiences are pertinent to the current project.

 Overview Section (relevant heading: proposed solution; steps involved, benefits,

potential obstacles)

Start with a section explaining your outlook. Begin with a short vision statement.

 What future do you foresee for the business? For instance, is your audience local,
regional, national or global?
 What will your impact be on your customers? Explain your short and long-term goals.
 What smaller objectives must be achieved before the ultimate goal is reached?
 How will you accomplish these goals? Since the activities in this section are often
time-related, consider using numbered bullets to indicate your organization and
timeline.

 Descriptive Sections

 In the marketing section, identify your potential customers and why they will find
your goods or services superior to what is already available. Include issues such as
durability, dependability and price.
 Discuss your approach to advertising. How will you find and approach customers?
 Why will these tactics be successful? Use a financial management section to outline
your current financial position and expected start-up costs. Explain your financing
strategies. What amount will you contribute, and where will you obtain the rest of the
funds? What accounting methods will you use?
 A daily operations section gives you the opportunity to explain what personnel you
need, what infrastructure is required, what your insurance costs will be and how you
will deliver your goods or services.

 Conclusion

In the conclusion, summarize the status quo. What is the current situation? Then make an
argument as to why your business proposal is an appropriate response to a specific need. Be
realistic and discuss potential problems of the plan, such as barriers to implementation, biases
and limitations. Follow the final section with documents that support your plan, such as
insurance policies, resumes, loan forms and other financial information, partnership
agreement, inventory and patent or trademark documentation.

GUIDELINES IN WRITING BUSINESS PROPOSAL

Content and Format

Whether you are writing a business plan for a start up venture, submitting a proposal in the
hopes of securing a contract, attracting new customers, or securing support from investors,
it's essential to make sure the document you create is formatted in an appropriate manner.

There is no one correct business proposal format that has to be used in every situation. There
are many different ways to format these types of documents. However, this fact does not
mean "anything goes" when it comes to creating a business proposal. While there is more
than one "right way" to format a professional proposal, there are dos and don'ts every
proposal writer should follow.

Format is not the only consideration when creating and submitting a business proposal.
Presenting high quality ideas is essential. It's also important to include the right types of
information and to ensure the document is well-written. Proofread carefully for content,
clarity grammar and spelling before finalizing your proposal and submitting to the final
recipient(s).

Business proposals typically include the following information:

 Name of company and/or individual submitting proposal

 Date of submission
 Executive summary
 Statement of circumstances under which proposal is being submitted (i.e., in response
to a request or as a follow-up to a meeting)
 Description of products or services offered
 Charts and graphs as appropriate
 Time frame for delivery
 Information about limitations or exclusions
 Detailed pricing information
 Procedure for requesting additional information
 Deadline for response (if applicable)

Guidelines in Writing Business Proposal

1. Follow Provided Instructions

If you are creating a response to a request for proposal (RFP), chances are you were provided
with specific instructions about the format that should be used for your response. Follow the
formatting directions to the letter. Some RFPs are so specific they provide exact heading
titles, font sizes and word limit instructions. While creativity can be a good thing, deviating
from the specified format for an RFP is not. Failure to follow the instructions could mean
your document will be excluded from consideration.
2. Make the Document Skim-Friendly

Keep in mind those who review your business proposal will likely skim the document before
making a decision about whether or not to review it closely. Use formatting techniques to
make it easy for reviewers to find major sections and important information. Ensure that each
section of your proposal is clearly labeled with headings as appropriate and use bullet points
and tables to draw readers' eyes to key content. Avoid overusing special formatting features
like bold, italics and underlining, using them only as necessary for emphasis.

3. Consider the Audience

Keep in mind the expertise and knowledge base of the target audience when writing your
proposal. Use language likely to make sense to the people who will be reading your proposal
- and making decision about whether or not to work with you - throughout the document.
Remember that persuasion lies at the heart of the intent of your proposal. Rather than
focusing too much on the features of what you have to offer, use language that emphasizes
how accepting your proposal can benefit those who are in a decision making position and the
organizations or individuals they represent.