A business proposal is a written offer from a seller to a prospective sponsor or client). It is a document that outlines a proposed business plan, detailing the product or services to be provided, the costs associated, and the benefits of the proposal. Business proposals are often a key step in the complex sales process, whenever a buyer considers more than price in a purchase). A proposal puts the buyers requirements in a context that favors the sellers products and services, and educates the buyer about the sellers capability to satisfy their needs).
There are three distinct categories of business proposals):
- Formally solicited: These types of proposals are made when a private firm, government agency, or association negotiates to supply a service or product to a single company and when a company has excellent credibility and a track record of achievements. The standard format for this type of proposal consists of a cover letter, a table of contents, and several sections, including an executive summary, a statement of the problem and the proposed solution, a description of the sellers qualifications, and a pricing section.
- Informally solicited: These types of proposals are submitted to potential customers who have not requested a proposal. They are similar to formally solicited proposals but are less structured and may not include a cover letter or a table of contents.
- Unsolicited: These types of proposals are submitted to potential customers who have not requested a proposal. They are often used to introduce a new product or service to a potential customer.
Writing an effective business proposal is key to winning clients, partners, and investors. A business proposal is your opportunity to grow your business, so its an important document. Every small business plan should outline how you intend to get customers, clients, and partners, but your proposal is how youll win their business. Whether youre proposing new products and services or trying to secure funding, your proposal needs to answer your potential partners questions about your business. Business proposals can be as short or as long as necessary to communicate required information.
