Starting up a business is not an easy task to do. It may sound exciting, but the journey to change an idea into reality requires discipline, clear goal settings, and a winning business proposal!
A business plan is like a road map that guides you through your journey and helps you reach your ultimate goal. Just like it is difficult to travel without a road map, it is impossible to start a business without a proposal.
What is a business proposal?
Many people believe that a business proposal and a business plan are similar. However, they couldn`t be more wrong.
The primary purpose of a business proposal is to persuade a company or an organization to do business with you. While a business plan is all about your company`s strategies and growth plans.
It also outlines your value proposition and bridges the gap between you and your potential clients. A well-written business proposal can help entrepreneurs to build up their customer base.
It is a formal document that is created by a company and is provided to the prospect of securing a business agreement. A brilliantly written business proposal sells either your product or service, rather than your business itself.
Types of Business Proposals
A business proposal can be of two types: unsolicited and solicited.
Solicited Business Proposal: The business proposal when requested by a customer or a client is called a solicited business proposal.
Unsolicited Business Proposal: As the name defines, the unsolicited business proposal is usually meant to approach a client or a customer, even if they do not ask for it.
Key Things to keep in mind while writing a business proposal
A common mistake that small business owners often make while writing a business proposal is that they do not cover the key questions in their proposal. Every small business owner must cover these questions in their proposal to customize it according to their potential clients.
The person you might be meeting with your business proposal might not be the final decision-maker. It is always best to ask the prospect about the entire decision-making process or approval process.
Do your homework carefully. Research your competition to find their pain points or gaps. Ask your prospect about their past experiences related to the product or services that you are offering them.
Keep the budget in mind and find out their target price that will help you avoid wasting time on projects that have no chance for much profit.
Calculate the costs of your labor or materials, you will incur in case your proposal might get accepted. Make sure that you have got all the revenue numbers in place.
5 Steps to Draft a Persuading Business Proposal
Here are five sections that every business proposal must address:
- Introduction- Beginning a business proposal with a clear, crisp, and informative introduction can get your brownie points. Highlight what makes your business and product unique, your credentials, achievements, and awards.
- Executive Summary- In this section, you can explain why you are the perfect fit for the job, and give the reader the crucial message for the proposal.
- Table of Contents- This is useful for longer proposals that consist of details. List each section with its corresponding page number to make it easier for the reader. However, try to keep your business proposal short.
- Body- Here you can explain the information on scheduling, pricing, and logistics
- Conclusion- Ending your proposal with a call-to-action encourages your potential client to contact or visit you. Hence, end your business proposal with a powerful Call-to-Action.
Once your business proposal is complete, send it to your main point-of-contact and primary decision-maker. If you are unsure of who will receive the proposal, do not hesitate to ask.
You can send your business proposal via an email attachment. Plan a follow-up to see if they have any query.
If you regularly send business proposals, but not getting any desired results, you must join our Everything about Entrepreneurship course. With this course, you can learn the mantra that makes every entrepreneur successful.
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