STUDY THIS GUIDE TO WRITE A BUSINESS PROPOSAL IN 9 EASY STEPS
One of the most essential steps in an elaborate sales procedure is writing a business proposal. When a seller makes simple sales, the buyer is only interested in the price.
However, in more complex sales or investment procedures, the buyer or investor is not just interested in price, but also in value and the ultimate satisfaction of a need.
Therefore, knowing how to write a business proposal is essential for persons engaged in more complex sales procedures, or those seeking for investors for a business venture.
This is a guide to writing a killer business proposal that is bound to make your prospects come running to you.
What is a Business Proposal?
A business proposal is basically an elaborate attempt made to convince a prospective buyer or an investor to purchase or invest in a particular product or service. It contains the specific details of
the product or service including the expected value or benefit of acceptance.
A business proposal is a document that contains an overview of the cost and the expected solution a product or service will provide.
Types of Business Proposal
A business proposal is of 2 main types, and they are:
1. Solicited Proposal:
A business proposal can be formally solicited or informally solicited. A formally solicited proposal is one that is requested by a client or investor through formal channels and upon the fulfilment of certain considerations.
An informally solicited proposal is a business proposal that is requested by a client or
investor through informal channels such as a casual conversation between the client and the seller.
2. Unsolicited Proposal:
This type of proposal is unilaterally sent to a prospect without any formal or informal request. It is usually used to attract new clients or investors; or to publicize a new product or service.
What is the Purpose of a Business Proposal?
A business proposal serves as a detailed account of the essential details of a product, service or business plan.
Its main purpose is to sway and convince the investor or client to carry out an action; or purchase a product or service, while highlighting its benefits and value.
What are the Essential Components of a Business Proposal?
A good business proposal should contain the following components:
1. Title:
This contains the name of the proposal, your name or that of your business, the name of the
prospect or their business name, and the date of submission. The name of the proposal must be
compelling enough to pique the interest of the recipient.
2. Table of Contents:
The table of contents serves as a map to help the reader navigate the contents of the proposal. Most times, recipients of a business proposal may not have the time to read through the entire document.
Adding a table of contents to your document makes it easy to read and helps the reader to easily
find what part of the document they want to read.
3. Executive Summary:
This is a brief statement of the contents of your proposal. The executive summary must be catchy
enough to get the interest of the reader and must highlight the value proposition and expected
benefit of the proposed product or service.
4 Statement of the Problem:
This section highlights the need which the proposed product or service is to solve. This must be
stated as clearly as possible, and must directly relate to the prospect’s need or problem.
5. The Proposed Solution:
After highlighting the relevant problem or need, you need to show the prospect that you are capable of solving it. This section of the document tells the reader the solution you can provide for the issue raised in the previous section and your value proposition.
6. Qualifications:
This section contains the business’ credentials and qualifications as they relate to the present need. This is where you will convince the reader to trust you to fix the issue and deliver the proposed solution. This tells them why they should choose your proposal over others.
7. Timeline:
This highlights the steps you are willing to take if the prospect accepts your proposal. It contains a step by step schedule of how you will execute the proposed solution and the expected timeline for completion.
8. Pricing:
This section contains the cost of execution of the proposed solution and your pricing schedule. It is advisable to have a flexible pricing structure and a pricing comparison table. This gives your prospect different options to choose from.
9. Terms and Conditions:
This section contains the legal aspect of the proposal. Here, you will state the legal terms and conditions of accepting your proposal. It is advisable to consult a lawyer to draft the terms and conditions of your proposal.
10. Acceptance:
This is the final section of your proposal. It contains the mode of acceptance of your proposal to enable your prospect to approve it. This section usually contains the signatures of the parties involved, including that of the prospect.
How to Write a Business Proposal
Follow these easy steps to write your business proposal:
● Craft a compelling title, making sure to include your name or that of your business, and the name of the prospect or their business name.
● Create a table of contents for easy navigation of your proposal.
● Write a summary of your proposal using compelling and captivating words to pique the interest of your prospect. Be sure to include your value proposition and the expected outcomes.
● Highlight the prospect’s pain point and the related problem.
● Pitch in your solutions to the already stated problem.
● Highlight your qualifications and credentials to win their trust.
● State your pricing options.
● State the terms and conditions of agreement to your proposal. This should be drafted by a legal practitioner.
● Include a section where your prospect can put their signature to signify their acceptance of your proposal.
Conclusion
A good business proposal helps you to get the attention of a prospective client or investor, and a killer proposal helps you to secure that client or investor.
Writing a business proposal is easy, and as long as you follow the steps in this guide, you can come up with a captivating proposal for your business.
If you need further assistance in writing a business proposal, feel free to contact us. Happy writing!
