{"id":4256,"date":"2021-09-03T20:12:29","date_gmt":"2021-09-03T17:12:29","guid":{"rendered":"https:\/\/snov.io\/glossary\/?p=4256"},"modified":"2024-02-26T17:11:51","modified_gmt":"2024-02-26T14:11:51","slug":"business-proposal","status":"publish","type":"post","link":"https:\/\/snov.io\/glossary\/business-proposal\/","title":{"rendered":"Business proposal"},"content":{"rendered":"\n

\u201cHow to make a business proposal?\u201d<\/em> \u2014 a question that, perhaps, any B2B<\/a> startup has faced at least once.<\/p>\n\n\n\n

Successful selling consists of many components, with the quality product or service being just one of them. Sometimes, a sales presentation or business proposal can boost a customer’s sales funnel<\/a> movement and increase the number of successfully closed deals. <\/p>\n\n\n\n

Here, we\u2019ll explain the differences between types of business proposals and give some valuable tips on how to write them.<\/p>\n\n\n\n

What is a business proposal?<\/h2>\n\n\n\n

A business proposal<\/strong> is aimed at attracting potential clients with what a company sells.<\/p>\n\n\n\n

It\u2019s a document<\/strong> in either digital or printed form that explains product or service features, taking into consideration the lead\u2019s needs and wants. In other words, business proposals show how a company can help solve a customer\u2019s specific problem. <\/p>\n\n\n\n

Types of business proposals<\/h2>\n\n\n\n

Business proposals can be solicited and unsolicited.<\/p>\n\n\n\n

A solicited<\/strong> proposal is sent upon customer request and can be formal or informal. An unsolicited<\/strong> proposal is sent out as a base test and, in this sense, is similar to a cold email<\/a>.<\/p>\n\n\n\n

Consider these business proposal examples:<\/p>\n\n\n\n

Informally solicited proposal<\/h3>\n\n\n\n

Company A has discovered Company B and got interested in its products. As the result of an informal conversation between the two, Company A asks for a document to learn more details about the product\u2019s quality, shipping terms, pricing options, etc. It isn\u2019t obliged to respond to the offer.<\/p>\n\n\n\n

Formally solicited proposal<\/h3>\n\n\n\n

Company A is a regular client of Company B and has already figured out what it needs. It\u2019s willing to place an order and wants to double-check the terms before paying.<\/p>\n\n\n\n

Company A asks Company B to send a business proposal, containing item names, prices, shipping details, etc. After receiving an offer, it\u2019s obliged to respond during an agreed period. In case Company A agrees to the terms, the offer will turn into a legally binding purchasing agreement.<\/p>\n\n\n\n

Unsolicited proposal<\/h3>\n\n\n\n

Company B runs a lead gen campaign and wants to inform Company A about services offered. It creates a general proposal that contains an introduction of Company B, its expertise, terms for cooperation, partnership programs, and other business-related information.<\/p>\n\n\n

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\"Email<\/a><\/figure><\/div>\n\n\n

Customer request types<\/h2>\n\n\n\n

Although solicited business proposals are made upon the request from a prospect<\/a>, clients\u2019 requests may differ, depending on the number of details included:<\/p>\n\n\n\n

Request for information<\/a><\/h3>\n\n\n\n

RFI is a request that buyers issue for discovery purposes, e.g., to compare products, services, or vendors present on the market.<\/p>\n\n\n\n

Request for proposal<\/h3>\n\n\n\n

This is an in-depth document that asks for a formally solicited business proposal. A buyer may send RFPs to several vendors and then choose the best offer.<\/p>\n\n\n\n

Request for quotation<\/h3>\n\n\n\n

Also known as the Invitation for Bid, RFQ is issued when a customer wants to purchase a specific service or product and compares prices on the market. Unlike RFPs where clients consider time estimates, provider\u2019s experience, and other terms, RFQs are issued to make a choice based on the price. <\/p>\n\n\n\n

It\u2019s also issued in case of a prolonged deal registration process. To reduce financial or currency risks, the company requests a quote (as a sort of a promise) from a supplier to assure the right to buy the product at a specified price in the future.<\/p>\n\n\n\n

How to write a business proposal in 8 steps<\/h2>\n\n\n\n

There is no conventional design or structure you should use for the proposal, so you may either compile it by yourself or pick up a fitting business proposal template, for example, on PandaDoc, Jotform<\/a>, or Canva<\/a> and adjust it to your case.<\/p>\n\n\n\n

Still, there are some common elements to include in your business proposal: <\/p>\n\n\n\n

1. Title Page: Present your company name, client’s name, and proposal date.<\/h3>\n\n\n\n

Here you should put your name, your company\u2019s name, and a proposal title, say \u201cWeb design proposal\u201d<\/em> or \u201cApp software development.\u201d<\/em> You can also add the proposal\u2019s starting date, your company\u2019s registered address, phone, email, logo, and the name of the prospect.<\/p>\n\n\n

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\"Example
Example of business proposal title page (Source: <\/em>PandaDoc<\/em>)<\/em> <\/figcaption><\/figure><\/div>\n\n\n

2. Table of Contents: Provide an overview of the sections in your proposal<\/h3>\n\n\n\n

If your proposal isn\u2019t a single-page document, it’s a common courtesy that you list all chapters and specify pages. Besides, you can add hyperlinks to the document to make it easier to navigate.<\/p>\n\n\n\n

3. Executive Summary: Summarize your proposed solution<\/h3>\n\n\n\n

This is a separate-page chapter where you briefly describe who you are, what you do, and the purpose of contacting. You can also list how the customer will benefit if they choose your company, for example, \u201cturnkey service provision,\u201d \u201cinsurance coverage,\u201d \u201cdedicated manager or consultant,\u201d<\/em> and so on.<\/p>\n\n\n\n

4. Main Body: Detail the problem, solution, implementation plan, and outcomes<\/h3>\n\n\n\n

Here you should list initial requirements from the client and precisely describe how you\u2019re going to meet them, how much it will cost, and how long it will take. <\/p>\n\n\n\n

For example:<\/p>\n\n\n\n

To deliver marketing automation for Company A, we will carry out several works:<\/em><\/p>\n\n\n\n