Have you finally decided to start a business? Or are you looking for more clients? It’s great to have a business of your own. However, like most things, it’s easier said than done.
There are several important questions you need to ask before you enter the world of entrepreneurship. To have a great idea about the product or services you want to sell is just the first step.
You need to think about who your target audience will be. What resources would you need? Is there an estimated budget that you will work with? You need to answer these questions before you legitimately start anything.
Additionally, you might also have to share these answers and observations with potential investors. So for all this, you need a well-written business proposal.
A business proposal has the power to win a prospective client and investor. It makes or breaks the chances of guaranteeing that your business has the potential of gaining success. Conversely, if you make a business proposal poorly, you can miss out on several lucrative opportunities.
The question is, how do you make a business proposal?
Is there a format? Are there any dos and don’ts? What to include and what should be avoided? Here we have created a guide to help you make an effective business proposal. Also, you must know that it all depends on the industry you are entering and the products and services you wish to sell.
What is a Business Proposal?
You must have heard the term ‘business proposal’ millions of times. Many people think it’s a way to present a business idea. However, it has a lot more to do. It’s a formally designed report that aims to persuade financiers and organizations to buy your product or service.
If you think your new or existing business can serve a client, you propose your idea. Of course, it’s written to win a project. But, additionally, a business proposal may also be a way to inform others about your business objectives, goals, products, and services.
Many people consider a proposal a sales document as it consists of all the relevant and standard information about the business. The key to crafting an effective business proposal is to share information in the right tone with the right audience in the most appropriate manner.
A business proposal generally includes a few standard components such as:
- Scope of the business
- Overview of your products and services
- Market analysis
- Financial costs
- Timelines
There are a few additional components, which we describe a little later in the post. When discussing effective business proposals, you cannot miss highlighting how your products and services can provide value to your clients.
How to Make a Business Proposal? A Step-by-Step Method
When you prepare a business proposal, you have to keep the audience in mind. It would help if you considered discussing some crucial components that benefit the sales process when proposing. We also know that every business proposal has a core objective – all you need to focus on is winning the client.
Mostly, there’s one chance to persuade and convince the clients. So, present your points clearly and efficiently.
You need to know that business proposals are different from business plans. Unfortunately, the two are often used interchangeably. So, before you begin, you must know the difference between the two.
;Here are some of the elements that propose effectiveness:
- Appealing and catchy title
- Table of contents
- Executive summary
- Idea or problem statement
- Proposed solution (product or service)
- Team and qualifications
- Timeline
- Costs and billing
- Legal terms and conditions
- Acceptance terms
Think of this proposal as a medium for communication where you will share relevant information with potential prospects. So, when making a business proposal, it’s necessary to follow a process.
If you’re wondering how to make a business proposal, here are some steps to follow:
1. Research
It’s always best to know the market and the current trends. Good research can help identify how competitive the landscape is and what challenges and opportunities exist in the market.
So, research is the first step of making a business proposal. You’ll have to begin with finding out the target audience and market segments for your products or services. This step will facilitate in designing the business proposal accordingly.
The first step is all about doing your homework. It helps you in preparing to make a difference. Also, if you’re targeting any specific client, it could be a good idea to see if you can meet them. It will help understand their needs to personalize your products to match their requirements.
2. Introduction
The second step is to prepare the introduction when making a business proposal. Here, you must follow a structure or format, which depends on the target audience and industry.
Some professionals have highlighted the importance of a cover letter. It reflects the company’s objectives and provides an overview of the overall background. In the introduction, you add a brief title too.
It includes the name of your company and its logo. Further, the title page also includes the client’s name you’re targeting.
3. Executive Summary
The executive summary is a significant part of the business proposal. In this step, you’re required to make a case. Some experts believe that it’s the most relevant part of the business proposal.
So, in the executive summary, you need to state facts and figures. Avoid jargon and keep your message to the point. Also, it’s better to state the objectives and make your tone informative and persuasive.
4. Procedures
Throughout writing a business proposal, it’s best to follow a logical flow to add technical details and relevant information. So, the next step is to include logistical information that can help clients make their decision.
In this phase, add the following:
- Price
- Schedule
- Documentations
- Legal information
The purpose of the business proposal is to get approved by the client. So, the procedure section is vital to make it legally binding.
5. Make the Proposal Visually Appealing
No one can deny the power of visuals. Making a visually appealing proposal means ensuring that it is well designed and structured. Along with adding all the relevant information, you must make it visually appealing as well.
When making a business proposal, keep the content simple and jargon-free. Your audience must be able to comprehend the details conveniently. Additionally, prioritize the appearance of your proposal.
6. Customized Pitch
If you wish to grab the attention of your prospective clients, focus on personalization. When making a proposal, personalize the content and features according to the specific needs and requirements of the clients.
We understand that customization is time-consuming. But you cannot miss the aspects of professionalism. The internet also provides some relevant templates that can be helpful in this regard.
7. Be Thorough and Differentiate Yourself
A business proposal can help you achieve a competitive edge. For this, you must clearly state how you differ from your competitors. Share the benefits and values of your products and services and how you offer the best solutions to your client’s problems.
Always give a definite reason to choose your service.
Moreover, once you have made your business proposal, proof it, and re-proof it, don’t miss any details at any point. Throughout, it’s better to focus on how to make a business proposal and thoroughly lay out all the information.
Once the client has your proposal, they must know that your approach was detail-oriented. Additionally, when finalizing the business proposal, ensure it’s free of grammar and typographical errors.
If you’re worried or confused, you can always hire professional business proposal writers. They have the expertise, skills, knowledge, and experience to prepare a convincing and well-designed business proposal.
8. Call to Action
The business proposal must always have a conclusion. At this point, it’s necessary to make sure that the client is completely convinced to deal with you. So, add a proactive call to action. It should be a bold statement that can motivate the client to sign the contract.
We believe that an impressive business proposal can help gain more clients. Hence, don’t miss this opportunity by leaving any details out.
What Should You Include in a Business Proposal?
It doesn’t matter if you’re a B2B or a B2C business; you need to focus on convincing customers constantly. It’s always about giving clients and customers a reason to spend their money on your products or services.
Some of the essential components of a business proposal are listed below:
1. Problem
When making a business proposal, share your clients’ problems you wish to solve. However, it’s better to creatively define the problem and express your understanding of the challenges faced by your client.
You must present how your product or service can solve the client’s problem from the beginning of the business proposal. It relies on understanding the goals and objectives of your client.
2. Approach to Solving the Problem
Secondly, when making a business proposal, you must convey your approach creatively and clearly. You must have a competitive approach as you are bidding against your rivals. Thus, be creative and innovative, easily grabbing your client’s attention.
3. Emphasize on Your Skills and Experience
The business proposal must reflect the skills and expertise of your business. Present your capabilities in a manner that easily convinces your clients. Also, it must distinguish you from others.
4. Methodology and Costs
People often get confused about writing a business proposal and what to include, and what to leave out. To begin with, it’s best to have a clear methodology in your mind.
The business proposal must also have information on the methods and tools used by your team to assess the cost estimations. It gives clients an idea of how you’ll meet their needs and budget.
Also, include a payment schedule to make it easier for clients to choose.
5. Formatting
Formatting is the key component of a well-drafted business proposal. Along with including all the standard elements of the business plan, you also need to follow a proper layout and design. If you aren’t sure how to go about this, you can use the internet to download some professional business proposal format or templates or hire professional business proposal writers who can also design the document for you!
Remember that the clients won’t make an effort to find details in your proposal. So, present it clearly with the right flow of information. Keep it as simple and appealing as possible.
3 Tips to Make the Best Business Proposals
Whether your business is in the initial phase or planning to expand to reach a new level, it’s always necessary to have a clear focus. When making a business proposal, keep it informative, to the point, and efficiently presented.
Through proposals, you must ensure that you answer all the queries of your clients and customers.
Always remember that a well-prepared and winning proposal lays the foundation for your business. It may sound simple, but you need a lot of time, research, and effort when making the proposal.
However, the proposal can help your business succeed when nicely made. So give it its due diligence.
Here are some tips to make the best business proposals:
1. Think Big
When preparing a business proposal, use a direct approach. First, you need to share the specific strategies and methods considering the understanding of the market. However, before this, you must set a clear and broader vision. Also, keep the end goal in mind.
Be specific about how you want your business to function in the next 5 to 10 years by thinking big. List down the tangible goals related to market share and profits. Also, focus on intangible goals like the willingness to adapt the market changes.
2. Understand Your Audience
You need to be familiar with target segments. That’s what you must know before making a business proposal. The idea is to have your audience in mind. It can be the financiers and investors, suppliers, or customers.
This helps tailor the ideas and strategies to meet your customers’ changing needs.
3. The KISS Principle
In the business documentation and reports, the KISS principle has achieved a lot of attention. It’s the acronym for Keep it Simple, Stupid. So, don’t complicate things by adding jargon or so many technical terminologies.
It’s better to use easily understandable content to educate your audience. It will facilitate the communication process and help convey the information correctly. Also, use a simple writing style that involves choosing common words.
Keeping it simple is the key to a good business proposal.
Types of Business Proposals
When making a business proposal, it’s crucial to comprehend the diverse types of proposals. You might need to choose one type according to your industry and business idea.
Here are the two main types of business proposals:
1. Solicited
The solicited business proposal is also known as a requested one. Again, it is because your client might have requested specifically for it.
The solicited proposal is provided based on the ‘request for proposal.’ There is a likelihood that your customer might have requested it officially or casually. When writing a solicited business proposal, you need to outline what exactly your business does. What are your products or services, and what complete solutions do you offer to your clients.
In this case, the clients are mentally prepared to buy what you sell. Moreover, they might be actively looking for a supplier. Hence, you cannot miss the opportunity of influencing them.
2. Unsolicited
The unsolicited proposals are the ones that involve you approaching a business yourself. Here, you offer a trial or demonstrate your product or service. Also, in many cases, the unsolicited proposal is used for seeking funds or investments.
Moreover, unsolicited proposals are made in a cold email or a simple marketing brochure. When making these proposals, a one-size-fits-all tactic is used. It’s more generic because it lacks an understanding of the buyer’s requirements and needs.
The unsolicited business proposals are based on market research. When making these proposals, it is necessary to personalize according to the identified customer pain points. It’s all about creating and proposing customized solutions according to the buyer’s needs. So, a persuasive approach is required.
CHow WSH Can Help You Make the Best Business Proposals for all Niche and Industries?
Writing Service Hub is a leading digital agency that comprises highly professional and skilled business writers. We have a team of experienced and professional business proposal writers that provide the best writing services.
Contact us if you’re looking forward to learning how to make a business proposal. We can share some well-designed proposal samples to give you an idea. Our team can also create business plans and proposals to help your business grow.
We have the right skills and expertise to create a proposal that matches your vision and requirements. Our team is also aware of the changing market trends. As a result, we create customized business proposals with updated components.
So, you can contact us anytime for our premium writing services. We deliver professionally drafted business proposals according to your deadlines.