Having a business proposal that is on point is going to get you a lot farther than having a proposal that needs some work or is missing some key components.
The bottom line is that if your business proposal is solid, then you’re going to be more likely to get that client that you’re pursuing.
It doesn’t matter if you are the best in your industry or not, because if you submit a poorly written proposal, you’re going to lose business.
The best way to get a handle on writing proposals is to have a proposal template for you to follow.
What is a Business Proposal?
Business proposals generally follow a pattern regardless of the industry. Differences are minor and only reflect whether or not you offer a service or a product. Otherwise, the entire approach is virtually identical.
When you’re deciding on your template, you need to understand exactly what a business proposal is and what it does. Business proposals are not the same as business plans, which is a common point of confusion.
Business proposals include an outline of what you intend to offer and why you are the person or company that should be selected to complete the job. Think of it like a cover letter for a resume. It’s the first thing a company sees and so it needs to entice the person reading it in a way that they want to reach out to you for more information.
Something else to note about business proposals is the way that you send them and who you send them to. Proposals can be either unsolicited or solicited. Solicited proposals are ones that have been requested by potential clients. They’re also known as warm leads.
Unsolicited proposals are akin to cold calls. You’re reaching out to individuals hoping to attract their business without them ever having asked you to contact them.
Unsolicited proposals are akin to cold calls. You’re reaching out to individuals hoping to attract their business without them ever having asked you to contact them.
Unsolicited proposals are akin to cold calls. You’re reaching out to individuals hoping to attract their business without them ever having asked you to contact them.
Business Plans and Business Proposals Are Not the Same
This cannot be stressed enough – proposals and plans are not the same. When a company sends you an RFP or request for proposal, they are not expecting to receive a business plan.
What they want is a proposal that is attempting to sell your client on the service or product that you offer. Business plans give the details of the way your business is run. Clients don’t want to see that. They want to know why you’re the best choice for them to make.
Business plans are only offered if you’re seeking funding from an outside source like that of an investor. There is much more detail regarding costs in a business plan because those details are essential to an investor as they want to know where their money is going.
A proposal, on the other hand, is only going to maybe offer an estimate that is much more informal than a detailed cost breakdown.
What Goes Into a Business Proposal?
There are three distinct things that need to go into a business proposal – the problem, proposed solution to the problem, and estimated pricing. These are the basic things that need to be considered when writing out the proposal because these key elements are going to be what influences your potential client.
When it comes to starting your proposal, start writing a rough draft that includes the three fundamental concepts that you need to include in your submission. From there, you’ve got to think about things a little deeper.
Formatting Your Business Proposal
As you create your proposal template, there are specific things that you need to include like a title page, a table of contents, and an executive summary.
Your executive summary needs to include a quick synopsis of what your proposal includes and should not exceed a single page.
The next thing in your proposal needs to be the statement of the problem or issue that your company aims to resolve. You’ll need to discuss the problem in a way that showcases you understand their dilemma and that you are on the same page they are, except you have the solution to their problem.
Next comes the approach and methodology. In a short explanation, the approach needs to include the steps you’re going to take in order to tackle the problem at hand. This will be detailed in explaining exactly how you plan to fill your client’s needs.
Being detailed does not mean letting loose with all the technical or industry jargon because your client may not want to read that. Your potential client needs to be able to understand what you’re saying, and if they’re not up to speed on the tech talk, they’re not going to want to keep reading.
You’ll need to add your qualifications next. These will include the reasons why you’re the best person for the job. This includes training, relevant education, similar previous projects, years of experience, and anything else that will highlight why you’re the one the client needs.
Once that is done, you’ll need to make sure you add a schedule with expected benchmarks to keep track of the progress of the project. Your potential client will want to know about how long the job is going to take, and so they want quality information. At the same time, don’t forget to give yourself a buffer in case something goes wrong.
Remember, if you finish the project early, then you’re a hero in the eyes of your client, and they’ll be more likely to bring you on again. If you’re late, though, and don’t plan for it, then they’ll be less likely to go forward with you or your business.
Your potential client is also going to need to know the expected payment schedule and any other legal matters that may need to be addressed. Be sure to adjust the title to reflect whether or not it’s a one-time fee or an expected schedule to ensure timely payments.
Lastly, you’ll want to include the benefits that your potential client will gain by going forward with you as their partner. It is the last opportunity that you have to make your sale, so you want to be clear and concise about what they will gain when choosing you as their solution.
The Length of a Business Proposal
People often ask how long a business proposal needs to be. The short answer to that question is as long as it needs to be to get the message across.
Final length will depend on your industry and the expected scope of the project. Naturally a more detailed project will require a more extended proposal to cover the scope, while a less complicated project may require a shorter proposal.
Use the format suggestions above to create your proposal template. From there, you’ll be well on your way to having a proposal that grabs the attention of the client that will want to give you their business.
Don’t aim for a word count, but rather aim for a completed proposal that has everything you need and everything the client wants. This is the chance for you to make an excellent first impression, so don’t just rush through it.
Final Thoughts
Remember, a business proposal is not the same thing as a business plan. They are two different documents with two different purposes. One is for clients and the other is for investors. Don’t get them confused.
Keep jargon down to a minimum when you’re submitting your proposal to keep the prospective client engaged in what you sent. Too many big words will not impress the person reading it. Instead, it could very well turn them off of wanting to hire you.
Finally, don’t forget to follow up after sending a proposal to see if your potential client has any questions that need to be answered.
Your proposal can make or break a deal for you, so it’s important for you to pay attention to what you’re doing. Too much, and you’ll lose interest. Too little, and you won’t hold the interest.
The bottom line for you is If you follow all of these steps and the format, you will be good to go.
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