A business proposal is a formal document designed to offer a specific product or service to a prospective buyer or client. Unlike a business plan, which is created to run a company or raise capital, a business proposal is a bid to obtain business from another party and can be either solicited or unsolicited.
Business proposals are critical for securing new contracts, initiating projects, and fostering business growth, and it’s usually a formal step before creating a business agreement.
When to Use a Business Proposal
You should use a business proposal template to grow your business and solicit new customers. You are contacting potential clients to see if you could work together to further your mutual goals.
Whether the proposal was solicited or unsolicited, you want to create a compelling proposition laying out your business’s essential details.
Types of Business Proposals
Solicited Business Proposal
A solicited proposal is one that the potential customer or client seeks via a request for proposal (RFP). Your company then provides the business proposal it asked for.
You may also provide a business proposal upon receiving a request for information (RFI) or a request for a quote (RFQ) to provide the customer with additional information about your offerings.
Clients may come to you to see if you’d be an appropriate vendor for their situation. A business proposal template can help you answer their request and win business.
Unsolicited Business Proposal
You send unsolicited business proposals to customers when they have not explicitly asked for them. Your company is reaching out to attempt to gain new business with your submission.
If you target an unsolicited business proposal appropriately and clearly state the benefits of working with your business, you can experience success with an unsolicited offer.
Continuation or Renewal of Business Proposal
Continuing or renewing a business proposal lets you continue working with an existing client to update or extend an agreement’s terms.
Business Proposal Examples
If you’re looking for a business proposal example, explore some below:
Grant Proposal
A grant proposal helps a business gain funding to keep its operations going. Non-profit organizations usually implement this proposal, but it can also benefit some for-profit organizations.
- Target audience: An evaluation committee.
- How to write: Emphasize how your organization will use the funds to continue its mission.
- What to highlight: How you’ll measure success with the funding you use.
Event Proposal
This document lets you highlight how you’ll put on an event for a business, such as a conference, convention, or important meeting.
- Target audience: Company leaders.
- How to write: Include how the event will help improve business for the client.
- What to highlight: Your unique features will make the event memorable for attendees.
Marketing Proposal
A traditional or social media marketing proposal can help you explain how you’ll advertise for a client, whether for a specific event or an ongoing relationship.
- Target audience: Clients who want to expand their reach.
- How to write: Explain your methods and how you can help clients meet their outreach goals.
- What to highlight: Your tried-and-true approach to marketing or similar clients.
Sales Proposal
Sales professionals use sales proposals to present a compelling offer of the product or service to another business. Your sales process may be different for various clients, so be sure to tailor each proposal accordingly.
- Target audience: Companies need products or services to improve their operations.
- How to write: Explain how your products/services will fulfill an absent need.
- What to highlight: The value your offerings provide over competitors’.
Construction Proposal
A construction project proposal helps you communicate the construction services you can offer clients.
- Target audience: Clients who want to build or expand a structure for their operations.
- How to write: Communicate your process and timeline.
- What to highlight: The value and commitment to quality you offer.
Writing and Design Tips
Here are some writing and design tips to maintain professionalism in your proposal:
Stay Consistent
Ensure your messaging remains consistent. Offer only what your company typically provides, and avoid making extravagant promises you can’t fulfill.
Make Your Proposal Clear and Succinct
Keep your proposal professional and reserved. This way, you can center the focus on what you have to offer without distracting visual elements interfering with your message.
An effective business proposal provides comprehensive information succinctly. It’s not overly wordy, and you don’t need to share every information about your business.
Personalize Your Proposal
Research your proposal’s recipient to understand their unique challenges. Personalize your proposal to clarify why you’re the best business to work with, ensuring you distinguish your offerings from your competitors’ products or services.
Conduct Quality Control
Before you send your proposal, you can check that it:
- Meets clients’ needs and expectations
- Includes your value proposition
- Is easy to read/skim
- Complies with regulatory, ethical, and legal requirements
If you send unsolicited proposals, follow up professionally and be prepared for rejection.
Incorporate a Call-to-Action
Incorporate a call-to-action so the recipient knows what steps to take if they want to work with your business.
Add a Table of Contents
If your business proposal is long, consider adding a table of contents so readers can easily find different sections.