What is a business proposal?
“The difference between something good and something great is attention to detail.” – Charles R. Swindoll
First, we need to understand what a proposal is.
According to Business Dictionary a proposal is a solicited or unsolicited submission by one party to supply (or buy) certain goods or services to (or from) another. Unlike an offer, a proposal is not a promise or commitment but, if accepted by the other party, its proposer is expected to follow through and negotiate for the creation of a binding contract. If submitted in response to a request for proposals (RFP), it normally constitutes a bid.
A business proposal is defined as a purposeful sales document formulated to illustrate how a business will carry out a project, give the value of the project to the prospective client and ask for the client’s business. Therefore, it is a document that a business submits to another enterprise or organization putting forward a business arrangement.
Types of business proposals
There are two major types of business proposals: invited and non-invited.
An invited proposal is submitted in response to an advertisement from the buyer or client. For instance, organization and government agencies wanting to purchases services and products from private suppliers invite contractors to place their bids.
Alternatively, some businesses ask for Request for Proposals (RFP) from a selection of suppliers that they willing to consider as a prospective partner. In each case, the business is competing against other bidders. It is in the interest of your business to present a competitive and compelling business proposal.
Non-invited or unsolicited proposals are submitted to potential clients even when they have not requested for one. In this scenario, you give suggestions to the company or organization to purchase services or products in return for funds. For instance, you can tender a proposal to develop an app for an organization or training services for its staff.
The most important thing in both cases is to come up with well researched offer to convince buyers. A business proposal is limited to the scope of the specific project or need. In addition, it has a specific audience. The primary function for a proposal is to solicit or grow a business opportunity.
The stages of writing a good business proposal – bear in mind that you need to outline the scope of the project: what needs to be done/delivered, an indication of milestones and timetables, team management, when will the project be complete, when is payment due and so on. The way you write the business proposal directly influences your chances as a potential business partner; the details create the big picture.
Furthermore, don’t forget that a proposal is a sales document, designed to persuade the client to hire your company instead of a competitor. So make certain your proposal reinforces your company’s strengths and addresses any potential reservations the client may have about hiring you.