While many entrepreneurs find writing a business proposal hard to crack, mastering them drastically increases the chance of securing a deal. However, to do so can take time and significant know-how since business proposals are not a one-size-fits-all document.
In this article, we’ll provide various simple tips and tricks for creating the perfect business proposal.
Table of Contents
What is a business proposal?
Types of business proposals
1. Informally solicited business proposals
2. Formally solicited business proposals
3. Unsolicited business proposals
Tips to help write a great business proposal
1. Create your title page
2. Outline your customer’s problem and your company’s solution
3. Write an executive summary
4. Create a pricing table
5. Summarize your qualifications
6. Lay out the terms of the agreement
Simple business proposal templates
Bottom line
What is a business proposal?
Running a business involves building connections, partnerships, and better opportunities. Whether it’s securing a deal, winning over an investor’s trust, or starting a new collaboration, there’s one thing businesses can’t afford to ignore: the art of the business proposal.
So, what exactly is a business proposal? In simple terms, it’s a document a business owner presents to a potential client, partner, or investor, laying out how their business can meet their needs. Think of it as a formal pitch but on paper–or digitally.
Types of business proposals
1. Informally solicited business proposals
Informally solicited business proposals usually come after a chat between a business and a possible client or investor, like a blind date. Since the client won’t be looking for competing bids, business owners should have their proposal hit the head on the nail. Remember, the goal is to win them over, not bore them out.
2. Formally solicited business proposals
Formally solicited business proposals are exactly what they sound like. A client requests them through a formal process like a Request for Proposal (RFP). When that RFP lands, it’s game time for the business.
Now, this isn’t about sending a generic proposal. Entrepreneurs must send a response that perfectly matches what the clients want. After all, they are looking for answers to their problems, so a proposal with the best solution will have a better chance of closing the deal.
3. Unsolicited business proposals
Sometimes, businesses can leap and put out their ideas without waiting for an invitation. It’s a bold move that can lead to mouth-watering opportunities if entrepreneurs do it right. But that’s not all. These pitches walk a fine line. If they’re too generic, recipients may toss them aside.
But if they are too pushy, it will reduce the chances of anyone taking the business seriously. The real magic happens when a company can spark curiosity and show it understands the audience’s needs.
Tips to help write a great business proposal
1. Create your title page
If there’s one thing that matters when it comes to business proposals, it’s first impressions, which is why business owners must nail how they look. Therefore, the proposal’s title page must be well thought out because it’s a sneak peek into their professionalism and brand identity.
Furthermore, don’t clutter the design, as it may be distracting to the clients. Remember to make drafts simple and include the essentials, such as the proposal title, business name, contact information, and last but not least, the submission date.
Adding a logo can spice up the proposal and reinforce the brand identity. After all, if the outside doesn’t impress, will anyone care to look inside?
2. Outline your customer’s problem and your company’s solution
When a business proposal appeals to the client’s challenges and offers the right solution, it’s a win-win situation. However, to achieve this, the first step is to outline the problem clearly and use real data to demonstrate business insights. The second step is to avoid assumptions because precision builds trust.
For the third step, present the solution. What changes will the business owner need to make, and how will the issues be solved? After this, break the proposal down into sections, such as the problem, plan, measurable goals, and clear benefits.
3. Write an executive summary
The executive summary is the beating heart of any business proposal. In it, you should explain why they’re reaching out and why your business is the best choice for addressing the client’s needs.
Moreover, it highlights the client’s challenges and provides a compelling outline of the unique, proposed solution. Remember to tailor each summary to the client, making it feel upfront and personal. Skip the fluff and get right to the point. If done correctly, this section will make them eager to read more.
4. Create a pricing table
Entrepreneurs must get their pricing right, as this can make or break the deal. Clients and investors want clarity – so the proposal should tell them what they’re paying for and why they’re paying for it.
That’s where a well-thought-out pricing section comes in handy. Don’t just box them in with a flat fee. Instead, offer multiple pricing tiers for flexibility and customized solutions without forcing a yes or no from the client. And be transparent, as nobody likes surprises buried in the fine print. Include everything is included, from service costs to optional add-ons. This will establish a trustworthy partnership that works for both sides.
5. Summarize your qualifications
Why should a client choose one business over another? This question may be the most critical part of any business proposal. It’s where business owners show off what they can do that makes them better than the competition – don’t brag, just prove your value.
Then, use client reviews to support your claims. Or even better, tell a story. Case studies can show how problems were solved step by step. Then, as a bonus, add a few nods from industry experts.
6. Lay out the terms of the agreement
Sealing the deal should feel simple, not intimidating. At the end of the proposal, everything should be crystal clear, including the terms, the next steps, and any further agreements needed. The point is to give clients enough confidence to say, “Let’s do this!”
Some proposals invite further discussion, while others include legally binding terms with space for signatures. The goal is to keep the proposals clear and professional. Make them easy for clients and investors to understand.
Simple business proposal templates
Still not sure where to start when it comes to writing a business proposal? Don’t worry, there’s a plethora of free tools online, including some that even provide writing prompts while customizing each section. This makes them a great option for anyone looking for a quick but professional way to create great proposals. Click here for one such free option.
Bottom line
In summary, writing a proposal is more than presenting facts and figures; you must understand the simple craft of showing your clients why you are qualified for the job.
Every step, from creating a catchy subject line to clear pricing and follow-ups, is important to bagging a deal. Just remember to be professional, approachable, and persistent, but avoid being pushy. Overall, a great proposal should set the tone for a strong, lasting relationship between clients and investors.
