13 Mar How To Write a Business Proposal
Opportunities can crawl to your doorstep, or you can go out there and grab it yourself – this is to say that you either propose a business or a business be proposed to you. Every business owner should know how to write a business proposal.
Several businesses out there are similar to yours, giving similar services the best way possible, and trying several mediums or methods to make their businesses expand. Without proper business management and knowledge, you probably would be an unequal match for these businesses that are similar to yours – that would be a backlash to your company, and you don’t want that.
Business proposals, if done right, can get you opportunities to boost your business. Before progression, what is a business proposal in the first place?
What is a business proposal?
A business proposal is a document a company creates and presents to another company to propose business and secure its arrangement.
You must know that a business proposal and a business plan are two different documents and cannot be likened to one or interchanged.
A business plan is a document used for a yet-to-be-established business, while a business proposal can only be prepared by an already-established business. This is not the only difference, but we will discuss this further in another article.
In business proposals, we have two types – solicited and unsolicited.
- Solicited business proposal: this has to do with a request from another company seeking an answer to its problem, which it cannot solve on its own. This company sends notice of this by inviting other businesses through RFP (Request for proposal). This request attracts several other organizations to propose a solution to the problem encountered by this company.
- Unsolicited business proposal: this is the type of business proposal that an individual or a company presents to prospective clients or companies when they have not requested it. Usually, this is done in hope of establishing a business-related relationship with them.
We would navigate the ways you should write your business proposal to help you secure that business.
How to write a business proposal
Some ways might be different from what would be discussed here as the first step of writing a proposal. However, this scheme has been top-notch in securing businesses and establishing relationships. To get your proposal right, you must adhere to the following:
● Find yourself a business proposal template
There are many of them on the internet, and they’re not hard to find. Everything through the internet has been made easy, and this is one of them.
You probably would have to find yourself a strategy to tackle your client’s problem. When a company or organization releases an RFP, it might be for a supply of goods and services. You have to understand that and do your research to find the best statement of the problem (this means you have to thoroughly understand the problem you’re requesting to solve), pricing, the best solution, and proof.
All these become easier with a business proposal template and save a lot of stress. This is because writing a business proposal is not funny. It is both time-consuming and tiring.
● Title page
This is where you do the formalities – introducing yourself, your company, and your business. Always remember to put the date you would submit the proposal and the company you’re sending it.
Well, for me, I like to read a clear and concise document. You shouldn’t send a vague or incoherent proposal for a business you don’t want to miss.
● Outline/table of content
This can as well add value to the conciseness of your proposal. When you’ve made a book to propose a business or solution to an existing problem, you would have to create this content table that would link everything in your proposal to its specific page – not everyone has ample time to go through every single thing you’ve made. Some just jump straight to the point, pick the most important items and move on.
A table of content makes your (potential) client grab the points quickly without being bored of the lengthy work and words you’ve used.
● Spell out your experience
You can talk about your most recent experience but do not exaggerate. You’re dealing with a business that can lead to future deals, not a fairy tale. You must understand that this is business and deals with reputation and legal actions. Therefore, when recapping your experience(s), be truthful. Your experiences are relevant as they may align with the problem you’re about to solve. It would give you an edge over other companies or competitors.
● Identify the problem
Here, you must have gone through the RFP twice or thrice to be sure you understand the problem. When you have done this, you have to explain it to your client. It is a problem they fished out, but you have to show that you are more experienced because that is why you’re the one to solve the problem and not them.
You have to show that you thoroughly understand the problem stated before giving a solution for it.
● What is your solution?
You have to have a more detailed solution to the problem at hand. Bear in mind that you’re not the only one out there in the business. Other renowned and revered business owners probably got wind of the RFP you got. You have to make a difference to win this business contract.
This being said, you have to find ways to construct a more detailed solution and how you intend to go about it in your proposal.
● What are the benefits of this solution?
Here, the client is about the evidence and a possible outcome after you must have applied your solution. You will have to convince them with either testimony from other clients or get other evidence to back up your claims.
You can provide evidence of where you’ve saved a business or where you exhibited top-notch professionalism. Sometimes proposals save a company from going bankrupt; you can put the outcome of your most recent business proposal.
Pricing demands a high research level. You probably do not want to estimate an under or over-budget price. First of all, you must be an experienced person to deal with this. Second, you should be sure that you can do this. If you can, then estimating the price wouldn’t be much of a hard but to crack.
● Outline the terms and conditions
Ts and Cs come in when you’re sure you’ve done everything right. Ensure to review it with your legal team. It would include the price, payment process, and timeline. ‘Terms and conditions’ must be accepted before the business kicks off.
This is where you give a space for the company signatories to sign and bind the contract in agreement. It includes you and your client.
Writing a top-notch proposal and going through all that stress does not mean you will land the contract. It all depends on the client. They may not agree to your terms and conditions at the end of the day or your pricing list.
If that happens, it does not mean you are incompetent. This can be attributed to the adage, ‘the money in the market has its owner already.
You can follow our website and subscribe to our YouTube channel to get more insights and enjoy other useful topics and discussions.