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Blog Business How to Write Business Proposal (Examples + Free Templates)

How to Write Business Proposal (Examples + Free Templates)

Written by: Aditya Sheth Jan 25, 2024

The great Mark Cuban once said, “Sales cure all.” If a business doesn’t sell, it doesn’t make money and by extension the business fails. That’s why you need to write business proposals .

A well-written business proposal can often mean the difference between winning or losing a prospective client.

In this in-depth guide to creating business proposals, we show you how to close more deals, make more sales and crush your business goals — all by using easy-to-edit professional business proposal templates .

Here’s what this guide will cover (click to jump ahead):

What is a business proposal, what are the components of a business proposal.

• How to write a business proposal step by step

More business proposal examples + writing and design tips

What should you include in a business proposal, what are the types of business proposals.

• FAQs about business proposals

Looking for a shortcut? Watch this quick video for an overview of everything to include in your business proposal:

A business proposal is a document designed to outline a business plan to convince potential client, investor or partner to engage in a business agreement with you or your company. It’s basically a sales pitch in writing to persuade potential clients to show them benefits of working with you or your company for their business success.

A business proposal outlines what your business does and what you can do for your client . It can be general like this business proposal example:

Or it can be more specific, like this business proposal template which focuses on proposing a project for the Newton Center Rail:

Or this business proposal sample, which presents a plan for a social media strategy and campaign:

To design a business proposal that holds the client’s attention, identify their pain points. Then provide your buyer with the right solution to alleviate those frustrations.

Working on a new project? These project proposal examples might come in handy for you.

The components of a business proposal can change depending on the field, company size and client needs. While details may differ, strong proposals typically introduce your company, explain the problem, offer a solution and its benefits, highlight your team’s skills, and outline timeline, cost and next steps.

Sometimes, the complexity of crafting a business proposal, especially in projects requiring thorough market analysis or technical details, calls for professional insight. Seeking research proposal writing help can be invaluable in these instances, ensuring that your business proposals are not only well-structured but also highly persuasive and tailored to meet specific client needs.

How to write a business proposal step by step

Before you start creating your business proposal template, you need to understand the business proposal format. At a high level, your effective business proposal should include the following:

• Create a compelling business proposal title
• Build a table of contents
• Craft the executive summary
• Write a detailed problem statement
• Propose your solutions
• Showcase your team’s expertise
• Create a realistic timeline
• Present your payment structure
• Specify the terms and conditions
• Receiving the decision

Below, you can see business proposal examples that demonstrate how to include these 10 sections.

1. Create a compelling business proposal title

A compelling title could mean the difference between someone reading your proposal or ignoring it in favor of a competitor’s. 

What makes a good title page? Here are the essential elements to include: 

• Your name along with your company’s name
• The name of the prospect (or their business) 
• The date you’re submitting the proposal

The gray business consulting proposal template above contains all the details a prospect would want to know. The title also offers a strong tangible benefit to the prospective buyer. Honestly, “Who doesn’t want to grow their business?”

2. Build a table of contents

The table of contents is a fundamental part of every winning business proposal template. It makes your proposal scannable and easy to read.

The people you will be pitching to are usually C-level executives like the CEO (Chief Executive Officer), COO (Chief Operating Officer), or fractional executives who work part-time. These are busy people who don’t have time to read your entire proposal in one go.

That’s why most of the business proposal examples in this list include a table of contents.

Adding a table of contents to your document makes it easy for them to go through it at their own pace. They can also skim through parts of the proposal that they deem more important. You can see how this abstract business proposal template uses the table of contents:

You can also make your business proposal template easier to navigate by adding hyperlinks to the document, particularly in the table of contents. This way your clients can jump to specific sections without having to scroll through the entire document. Ensuring your business plan format follows a clear structure can greatly enhance readability and comprehension for potential investors or partners.

It’s easy to add hyperlinks in the Venngage editor. Select the text you’d like to turn into a link, then click the link icon in the top bar. From there, select the page you want to link to! Then download your completed design as an Interactive PDF .

3. Craft the executive summary

The executive summary is a staple in all kinds of annual reports , leadership development plan, project plans and even marketing plans. It is a concise summary of the entire contents of your document. In other words, write a business proposal outline that is easy to glance over and that highlights your value proposition.

The goals of your executive summary are:

• Introduce your company to your buyer
• Provide an overview of your company goals
• Showcase your company’s milestones, overall vision and future plans
• Include any other relevant details

This gray business proposal example has a detailed yet short executive summary including some social proof in the form of clients they’ve worked with:

Take note of how precise this business proposal example is. You want to keep your executive summary concise and clear from the get-go. This sets the right tone for the rest of your proposal. It also gives your buyer a reason to continue reading your proposal.

Crafting an executive summary and keeping it concise and compelling can be challenging, but you can use an AI summarizer online or an AI proposal generator to create a polished document or executive summary. Such tools are trained on relevant AI models that can extract core points from a given text. You can get such a point either in bullet form or in abstract summary form.

Pro Tip: Try to write an executive summary such that, even if your prospective client doesn’t read the entire proposal (with a good executive summary, they most likely will), they should have a clear idea about what your company does and how you can help them.

4. Write a detailed problem statement

The point of writing a business proposal is to solve a buyer’s problem. Your goal is to outline the problem statement as clearly as possible. This develops a sense of urgency in your prospect. They will want to find a solution to the problem. And you have that solution.

 A well-defined problem statement does two things: 

• It shows the prospect you have done your homework instead of sending a generic pitch
• It creates an opportunity for you to point out a problem your prospect might not be aware they had in the first place. 

This bold business proposal template above clearly outlines the problem at hand and also offers a ray of hope i.e. how you can solve your prospect’s problem. This brings me to… 

5. P ropose your solutions

The good stuff. In the proposed solution section, you show how you can alleviate your prospective buyer’s pain points. This can fit onto the problem statement section but if you have a comprehensive solution or prefer to elaborate on the details, a separate section is a good idea.

Spare no details regarding the solution you will provide. When you write a business proposal, explain how you plan to deliver the solution. Include an estimated timeline of when they can expect your solution and other relevant details.

For inspiration, look at how this business proposal template quickly and succinctly outlines the project plan, deliverables and metrics:

6. Showcase your team’s expertise

At this point, the prospect you’re pitching your solution to likes what they’re reading. But they may not trust you to deliver on your promises. Why is this?

It’s because they don’t know you. Your job is to convince them that you can fix their problem. This section is important because it acts as social proof. You can highlight what your company does best and how qualified your team is when you write a business proposal for a potential client.

This free business proposal template showcases the company’s accolades, client testimonials, relevant case studies, and industry awards. You can also include other forms of social proof to establish yourself as a credible business. This makes it that much more likely that they will say yes!

Pro Tip: Attaching in-depth case studies of your work is a great way to build trust with a potential client by showcasing how you’ve solved similar problems for other clients in the past. Our case study examples post can show you how to do just that.

7. Create a realistic timeline

To further demonstrate just how prepared you are, it’s important to outline the next steps you will take should your buyer decide to work with you.

Provide a timeline of how and when you will complete all your deliverables. You can do this by designing a  flow chart . Or add a  roadmap  with deadlines. Pitching a long-term project? A timeline infographic would be a better fit.

If you look at this abstract business proposal template below, even something as simple as a table can do the trick.

The timeline is not always set in stone, rather it’s an estimation. The goal is to clarify any questions your potential client might have about how you will deliver for the underlying B2B sales process.

8. Present your payment and terms

On this page, you can outline your fees, payment schedule, invoice payment terms, as well as legal aspects involved in this deal. You can even use the Excel Invoice Template to create professional-looking invoices (including brand logo and other elements) and add them to this page.

The adoption of invoice templates is beneficial for small businesses as it streamlines the invoicing process and maintains professionalism in financial dealings. Also, by utilizing small business invoice templates, you can efficiently manage invoicing tasks while upholding a polished and structured approach to financial transactions.

The key to good pricing is to provide your buyer with options. A  pricing comparison table can help with this. You want to give your client some room to work with. Make sure you’re not scaring off your client with a high price, nor undervaluing yourself. 

Breaking up your pricing in stages is another great way to make sure your potential client knows what he’s paying for. Look at how this simple business proposal template does this:

The legal aspects can slot right into the terms and conditions section. Alternatively, you can add them to the signature section of the proposal to keep things simple.

9. Specify the terms and conditions

Summarize everything you have promised to deliver so far. Include what you expect from your prospective buyer in return.   Add the overall project timeline from start to end, as well as payment methods and payment schedule, incorporating these details into an online project management tool. This way, both of you will be clear on what is being agreed on.

This step is very important as it outlines all the legal aspects of the deal. That is why the terms and conditions section of your proposal needs to be as clear as possible.

I recommend consulting a lawyer or your legal team when working on this section of the business proposal. If you’re a business veteran and understand the legalities of your business, you can use the same terms and conditions across all your proposals.

10. Receiving the decision

The final step of this whole process. Your client has read your business proposal and they want to buy what you have to offer.

Add a small section at the end of your proposal to get the necessary signatures. This way, you and your client can sign the proposal and the partnership becomes official.

Be sure to also include your contact information in your business proposal template. It acts as a gentle prompt to your client to contact you in case they have any questions. A professional way of doing that would be to include an e-business card with your contact details, email i.d and any other social links you want to share.

Now that you know how to write a business proposal, let’s look at how you can optimize your proposal to deliver results!

Below you’ll find some winning business proposal templates and examples to get you started. I’ve also included some design tips to keep in mind when you’re creating your next business proposal: 

1. Know your audience 

If you have some clarity on who your ideal buyer is — their pain points, their budget, deadlines, among other things — you’ve already won half the battle.

If you are a business that helps clients with everything from running giveaways or helping grow their blog, identify which customers to pitch. This is a sure-shot way to close the deal.

Mapping user personas  for your ideal buyer can help bring some clarity. It will also help you position your business proposal correctly. This improves the chance of your buyer moving your business proposal to the “Yes!” pile.

2. Put your brand front and center

If your company follows certain brand guidelines, incorporate them in your business proposal templates. Consider how business proposal examples like the one below highlight brand identity :

From the color palettes to the company logos, everything follows their brand guidelines. The result: a business proposal that’s consistent across the board.

Pro Tip: Switching this template to match your brand assets is actually pretty easy. Venngage’s My Brand Kit feature allows you to import your color palettes, logos as well as font choices. Any Venngage template can now be your template.

You can also consider this sample business proposal template:

App design companies sure do know their design. They did a phenomenal job keeping their brand colors consistent while opting for a black design. This unique color scheme also makes their white logo prominent throughout the proposal.

3. Try less text, more visuals

Have you ever read a proposal and thought to yourself, “Wow, this is all text and has no images, I love it!”? Yeah, me neither.

The free business proposal template below is a perfect example of the “less is more” principle. It does a phenomenal job of communicating what it needs to. By substituting some of the text with icons and visuals, you get a clean business proposal that’s much more scannable.

Want to keep things strictly professional? Instead of icons, you can always add your team’s headshots. This shows your buyer exactly who they’ll be working with.  

Check out this formal business proposal format for some inspiration:

4. Switch up your business proposal designs

It doesn’t hurt to go above and beyond once in a while. Jazz up your business proposal template with some extra colors. This helps make your business proposal more engaging. It also helps your buyers retain information faster.

The business proposal example alternates between black, white and grey backgrounds. It still manages to maintain consistency in its branding . Just switching up your backgrounds once in a while can also bring in some variety to an otherwise standard business proposal.

This SEO business proposal sample proves that it’s possible to switch up the colors in every other page. But it still maintains the same color scheme across the entire proposal just like a professionally designed website: 

Pro Tip: Not a color expert? Our guide on picking colors can help you pick the right color scheme for your proposals.

A business proposal usually aims to answer the following questions: 

• Who you are and what your company does
• The problem your buyer is facing
• The solution your company offers to alleviate the problem
• How your company will implement this solution effectively
• An estimate of resources (time, money, etc) required to implement the solution

You can see how this sample business proposal template covers the above points.

Notice how this proposal template addresses the same project like in one of the previous templates, but uses a completely different design style (more retro, while the previous business proposal template is more modern and minimalistic).

Generally, there are three types of business proposals:

1. Formally solicited 

A formally solicited business proposal is made when you respond to an official request to write a business proposal.

In this scenario, you know all the requirements and have more (if not all) information about a prospective buyer. You simply need to write the business proposal for your buyer to evaluate so you can begin the sales process .

2. Informally solicited 

Informally solicited business proposals are written when there isn’t an official request for a proposal. A prospective buyer is interested in your services and asks for a proposal so they can evaluate it.

An informally solicited proposal requires a lot more research from your end. These types of proposals are usually created out of informal conversations. They are not based on official requests which often contain more detail.

3. Unsolicited 

Think of this as a marketing brochure or a cold email. Unsolicited business proposals will often take a generic, one-size-fits-all approach to business proposals. Unsolicited proposals lack any understanding of the buyer or their requirements.

But with additional market research, personalization and identifying customer pain points, you can propose a customized solution based on your buyer’s needs. This can be a very persuasive approach, such as in this business proposal example:

FAQ about business proposals

What is the purpose of a business proposal.

A business proposal aims to streamline the B2B sales process (which is often complex) between you as a seller and a buyer.

It does this by serving the dual purpose of acting as a source of information. The proposal also acts as a sales pitch aimed at convincing your buyer why they should buy what you have to offer.

What are the best practices for business proposal design?

• Do a thorough spell-check. The goal of your business proposal is to convince your buyer why you’re the perfect person for the job. A proposal with typos or grammatical errors communicates the opposite. A thorough spell-check before you send your proposal is a must.
• Keep things clear and readable: Clarity is an important aspect that you have to ensure in your business proposal. If you want your proposal to hit home and make an impact on the buyer, you have to write it in an understandable way. To keep things clear and readable, there are a couple of things that you can do. You can, for one, take care to use easy wording and segmented sentences from the get-go. You can also try paraphrasing the hard parts of your proposal once you are done writing it.
• Let your brand shine. As discussed before, writing a business proposal is all about knowing your ideal buyer and focusing on their pain points. But that doesn’t mean your business proposal template has to be boring. Demonstrate how different you are compared to other companies. You can do this through your brand guidelines, by using more visuals, switching up your proposal design or showing off your personality in your writing . 
• Create a business proposal PDF. Downloading your business proposal in PDF format allows you to attach other collaterals with your business proposal. These can include a company explainer video or case studies showcasing the work done with past clients. Also, who doesn’t love saving paper?

How long should your business proposal be? 

The length depends on the scope of the work as well as the complexity of the project. Here is a one-page business proposal template:

Can your business proposal template really be one page? Yes, as long as you understand who your buyer is and their pain points. You should also have the ability to communicate everything your ideal buyer needs to know about your business in a succinct manner.

Or if you’re feeling adventurous how about just two pages? Often, clients prefer if you go straight to the point and avoid all the fluff.

For example, this green modern marketing proposal template wastes no time in getting down to brass tacks:

Need more inspiration? Check out this blog on the 5 marketing proposal examples that’ll help elevate your business.

There is no one size fits all approach when it comes to deciding how many pages you should include in your business proposal template. And at the end of the day, “the only rules are the ones you set for yourself”.

At the end of the day, writing winning business proposals that sell is all about you understanding your buyer, their potential pain points and positioning yourself as someone who can alleviate those pain points. 

Now that you know how to write compelling business proposals, what are you waiting for?

Take action and start creating your own business proposals to close more deals and grow your business today!

More business communications templates + writing tips you might be interested in…

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How to Write a Business Proposal [Examples + Template]

Published: June 10, 2024

Here’s what every new business owner needs: an extra eight hours in the day, an endless supply of coffee, and, most importantly, a really strong business proposal.

A business proposal can bridge the gap between you and potential clients. Done correctly, it will outline your value proposition and persuade a company or organization to do business with you.

Here, we’ll take a look at the various kinds of business proposals and go over how to write one. We’ll also see some ideas and examples to help guide yours.

Know exactly what you need? Jump to one of the following sections:

What is a business proposal?

How to write a business proposal, business proposal templates, business proposal examples, tips for writing a business proposal, business proposal ideas.

Free Business Proposal Template

Propose your business as the ideal solution using our Free Business Proposal Templates

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• Proposed solution
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A business proposal is a formal document that’s created by a company and given to a prospect to secure a business agreement.

It’s a common misconception that business proposals and business plans are the same. However, a proposal helps you sell your product or service — not your business itself.

Think of it this way: Instead of assisting your search for investors to fund your business, a proposal helps you seek new customers.

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How to Write a Business Plan in 9 Steps (+ Template and Examples)

Every successful business has one thing in common, a good and well-executed business plan. A business plan is more than a document, it is a complete guide that outlines the goals your business wants to achieve, including its financial goals . It helps you analyze results, make strategic decisions, show your business operations and growth.

If you want to start a business or already have one and need to pitch it to investors for funding, writing a good business plan improves your chances of attracting financiers. As a startup, if you want to secure loans from financial institutions, part of the requirements involve submitting your business plan.

Writing a business plan does not have to be a complicated or time-consuming process. In this article, you will learn the step-by-step process for writing a successful business plan.

You will also learn what you need a business plan for, tips and strategies for writing a convincing business plan, business plan examples and templates that will save you tons of time, and the alternatives to the traditional business plan.

Let’s get started.

What Do You Need A Business Plan For?

Businesses create business plans for different purposes such as to secure funds, monitor business growth, measure your marketing strategies, and measure your business success.

1. Secure Funds

One of the primary reasons for writing a business plan is to secure funds, either from financial institutions/agencies or investors.

For you to effectively acquire funds, your business plan must contain the key elements of your business plan . For example, your business plan should include your growth plans, goals you want to achieve, and milestones you have recorded.

A business plan can also attract new business partners that are willing to contribute financially and intellectually. If you are writing a business plan to a bank, your project must show your traction , that is, the proof that you can pay back any loan borrowed.

Also, if you are writing to an investor, your plan must contain evidence that you can effectively utilize the funds you want them to invest in your business. Here, you are using your business plan to persuade a group or an individual that your business is a source of a good investment.

2. Monitor Business Growth

A business plan can help you track cash flows in your business. It steers your business to greater heights. A business plan capable of tracking business growth should contain:

• The business goals
• Methods to achieve the goals
• Time-frame for attaining those goals

A good business plan should guide you through every step in achieving your goals. It can also track the allocation of assets to every aspect of the business. You can tell when you are spending more than you should on a project.

You can compare a business plan to a written GPS. It helps you manage your business and hints at the right time to expand your business.

3. Measure Business Success

A business plan can help you measure your business success rate. Some small-scale businesses are thriving better than more prominent companies because of their track record of success.

Right from the onset of your business operation, set goals and work towards them. Write a plan to guide you through your procedures. Use your plan to measure how much you have achieved and how much is left to attain.

You can also weigh your success by monitoring the position of your brand relative to competitors. On the other hand, a business plan can also show you why you have not achieved a goal. It can tell if you have elapsed the time frame you set to attain a goal.

4. Document Your Marketing Strategies

You can use a business plan to document your marketing plans. Every business should have an effective marketing plan.

Competition mandates every business owner to go the extraordinary mile to remain relevant in the market. Your business plan should contain your marketing strategies that work. You can measure the success rate of your marketing plans.

In your business plan, your marketing strategy must answer the questions:

• How do you want to reach your target audience?
• How do you plan to retain your customers?
• What is/are your pricing plans?
• What is your budget for marketing?

How to Write a Business Plan Step-by-Step

1. create your executive summary.

The executive summary is a snapshot of your business or a high-level overview of your business purposes and plans . Although the executive summary is the first section in your business plan, most people write it last. The length of the executive summary is not more than two pages.

Generally, there are nine sections in a business plan, the executive summary should condense essential ideas from the other eight sections.

A good executive summary should do the following:

• A Snapshot of Growth Potential. Briefly inform the reader about your company and why it will be successful)
• Contain your Mission Statement which explains what the main objective or focus of your business is.
• Product Description and Differentiation. Brief description of your products or services and why it is different from other solutions in the market.
• The Team. Basic information about your company’s leadership team and employees
• Business Concept. A solid description of what your business does.
• Target Market. The customers you plan to sell to.
• Marketing Strategy. Your plans on reaching and selling to your customers
• Current Financial State. Brief information about what revenue your business currently generates.
• Projected Financial State. Brief information about what you foresee your business revenue to be in the future.

The executive summary is the make-or-break section of your business plan. If your summary cannot in less than two pages cannot clearly describe how your business will solve a particular problem of your target audience and make a profit, your business plan is set on a faulty foundation.

Avoid using the executive summary to hype your business, instead, focus on helping the reader understand the what and how of your plan.

View the executive summary as an opportunity to introduce your vision for your company. You know your executive summary is powerful when it can answer these key questions:

• Who is your target audience?
• What sector or industry are you in?
• What are your products and services?
• What is the future of your industry?
• Is your company scaleable?
• Who are the owners and leaders of your company? What are their backgrounds and experience levels?
• What is the motivation for starting your company?
• What are the next steps?

Writing the executive summary last although it is the most important section of your business plan is an excellent idea. The reason why is because it is a high-level overview of your business plan. It is the section that determines whether potential investors and lenders will read further or not.

The executive summary can be a stand-alone document that covers everything in your business plan. It is not uncommon for investors to request only the executive summary when evaluating your business. If the information in the executive summary impresses them, they will ask for the complete business plan.

If you are writing your business plan for your planning purposes, you do not need to write the executive summary.

2. Add Your Company Overview

The company overview or description is the next section in your business plan after the executive summary. It describes what your business does.

Adding your company overview can be tricky especially when your business is still in the planning stages. Existing businesses can easily summarize their current operations but may encounter difficulties trying to explain what they plan to become.

Your company overview should contain the following:

• What products and services you will provide
• Geographical markets and locations your company have a presence
• What you need to run your business
• Who your target audience or customers are
• Who will service your customers
• Your company’s purpose, mission, and vision
• Information about your company’s founders
• Who the founders are
• Notable achievements of your company so far

When creating a company overview, you have to focus on three basics: identifying your industry, identifying your customer, and explaining the problem you solve.

If you are stuck when creating your company overview, try to answer some of these questions that pertain to you.

• Who are you targeting? (The answer is not everyone)
• What pain point does your product or service solve for your customers that they will be willing to spend money on resolving?
• How does your product or service overcome that pain point?
• Where is the location of your business?
• What products, equipment, and services do you need to run your business?
• How is your company’s product or service different from your competition in the eyes of your customers?
• How many employees do you need and what skills do you require them to have?

After answering some or all of these questions, you will get more than enough information you need to write your company overview or description section. When writing this section, describe what your company does for your customers.

The company description or overview section contains three elements: mission statement, history, and objectives.

• Mission Statement

The mission statement refers to the reason why your business or company is existing. It goes beyond what you do or sell, it is about the ‘why’. A good mission statement should be emotional and inspirational.

Your mission statement should follow the KISS rule (Keep It Simple, Stupid). For example, Shopify’s mission statement is “Make commerce better for everyone.”

When describing your company’s history, make it simple and avoid the temptation of tying it to a defensive narrative. Write it in the manner you would a profile. Your company’s history should include the following information:

• Founding Date
• Major Milestones
• Location(s)
• Flagship Products or Services
• Number of Employees
• Executive Leadership Roles

When you fill in this information, you use it to write one or two paragraphs about your company’s history.

Business Objectives

Your business objective must be SMART (specific, measurable, achievable, realistic, and time-bound.) Failure to clearly identify your business objectives does not inspire confidence and makes it hard for your team members to work towards a common purpose.

3. Perform Market and Competitive Analyses to Proof a Big Enough Business Opportunity

The third step in writing a business plan is the market and competitive analysis section. Every business, no matter the size, needs to perform comprehensive market and competitive analyses before it enters into a market.

Performing market and competitive analyses are critical for the success of your business. It helps you avoid entering the right market with the wrong product, or vice versa. Anyone reading your business plans, especially financiers and financial institutions will want to see proof that there is a big enough business opportunity you are targeting.

This section is where you describe the market and industry you want to operate in and show the big opportunities in the market that your business can leverage to make a profit. If you noticed any unique trends when doing your research, show them in this section.

Market analysis alone is not enough, you have to add competitive analysis to strengthen this section. There are already businesses in the industry or market, how do you plan to take a share of the market from them?

You have to clearly illustrate the competitive landscape in your business plan. Are there areas your competitors are doing well? Are there areas where they are not doing so well? Show it.

Make it clear in this section why you are moving into the industry and what weaknesses are present there that you plan to explain. How are your competitors going to react to your market entry? How do you plan to get customers? Do you plan on taking your competitors' competitors, tap into other sources for customers, or both?

Illustrate the competitive landscape as well. What are your competitors doing well and not so well?

Answering these questions and thoughts will aid your market and competitive analysis of the opportunities in your space. Depending on how sophisticated your industry is, or the expectations of your financiers, you may need to carry out a more comprehensive market and competitive analysis to prove that big business opportunity.

Instead of looking at the market and competitive analyses as one entity, separating them will make the research even more comprehensive.

Market Analysis

Market analysis, boarding speaking, refers to research a business carried out on its industry, market, and competitors. It helps businesses gain a good understanding of their target market and the outlook of their industry. Before starting a company, it is vital to carry out market research to find out if the market is viable.

The market analysis section is a key part of the business plan. It is the section where you identify who your best clients or customers are. You cannot omit this section, without it your business plan is incomplete.

A good market analysis will tell your readers how you fit into the existing market and what makes you stand out. This section requires in-depth research, it will probably be the most time-consuming part of the business plan to write.

• Market Research

To create a compelling market analysis that will win over investors and financial institutions, you have to carry out thorough market research . Your market research should be targeted at your primary target market for your products or services. Here is what you want to find out about your target market.

• Your target market’s needs or pain points
• The existing solutions for their pain points
• Geographic Location
• Demographics

The purpose of carrying out a marketing analysis is to get all the information you need to show that you have a solid and thorough understanding of your target audience.

Only after you have fully understood the people you plan to sell your products or services to, can you evaluate correctly if your target market will be interested in your products or services.

You can easily convince interested parties to invest in your business if you can show them you thoroughly understand the market and show them that there is a market for your products or services.

How to Quantify Your Target Market

One of the goals of your marketing research is to understand who your ideal customers are and their purchasing power. To quantify your target market, you have to determine the following:

• Your Potential Customers: They are the people you plan to target. For example, if you sell accounting software for small businesses , then anyone who runs an enterprise or large business is unlikely to be your customers. Also, individuals who do not have a business will most likely not be interested in your product.
• Total Households: If you are selling household products such as heating and air conditioning systems, determining the number of total households is more important than finding out the total population in the area you want to sell to. The logic is simple, people buy the product but it is the household that uses it.
• Median Income: You need to know the median income of your target market. If you target a market that cannot afford to buy your products and services, your business will not last long.
• Income by Demographics: If your potential customers belong to a certain age group or gender, determining income levels by demographics is necessary. For example, if you sell men's clothes, your target audience is men.

What Does a Good Market Analysis Entail?

Your business does not exist on its own, it can only flourish within an industry and alongside competitors. Market analysis takes into consideration your industry, target market, and competitors. Understanding these three entities will drastically improve your company’s chances of success.

You can view your market analysis as an examination of the market you want to break into and an education on the emerging trends and themes in that market. Good market analyses include the following:

• Industry Description. You find out about the history of your industry, the current and future market size, and who the largest players/companies are in your industry.
• Overview of Target Market. You research your target market and its characteristics. Who are you targeting? Note, it cannot be everyone, it has to be a specific group. You also have to find out all information possible about your customers that can help you understand how and why they make buying decisions.
• Size of Target Market: You need to know the size of your target market, how frequently they buy, and the expected quantity they buy so you do not risk overproducing and having lots of bad inventory. Researching the size of your target market will help you determine if it is big enough for sustained business or not.
• Growth Potential: Before picking a target market, you want to be sure there are lots of potential for future growth. You want to avoid going for an industry that is declining slowly or rapidly with almost zero growth potential.
• Market Share Potential: Does your business stand a good chance of taking a good share of the market?
• Market Pricing and Promotional Strategies: Your market analysis should give you an idea of the price point you can expect to charge for your products and services. Researching your target market will also give you ideas of pricing strategies you can implement to break into the market or to enjoy maximum profits.
• Potential Barriers to Entry: One of the biggest benefits of conducting market analysis is that it shows you every potential barrier to entry your business will likely encounter. It is a good idea to discuss potential barriers to entry such as changing technology. It informs readers of your business plan that you understand the market.
• Research on Competitors: You need to know the strengths and weaknesses of your competitors and how you can exploit them for the benefit of your business. Find patterns and trends among your competitors that make them successful, discover what works and what doesn’t, and see what you can do better.

The market analysis section is not just for talking about your target market, industry, and competitors. You also have to explain how your company can fill the hole you have identified in the market.

Here are some questions you can answer that can help you position your product or service in a positive light to your readers.

• Is your product or service of superior quality?
• What additional features do you offer that your competitors do not offer?
• Are you targeting a ‘new’ market?

Basically, your market analysis should include an analysis of what already exists in the market and an explanation of how your company fits into the market.

Competitive Analysis

In the competitive analysis section, y ou have to understand who your direct and indirect competitions are, and how successful they are in the marketplace. It is the section where you assess the strengths and weaknesses of your competitors, the advantage(s) they possess in the market and show the unique features or qualities that make you different from your competitors.

Many businesses do market analysis and competitive analysis together. However, to fully understand what the competitive analysis entails, it is essential to separate it from the market analysis.

Competitive analysis for your business can also include analysis on how to overcome barriers to entry in your target market.

The primary goal of conducting a competitive analysis is to distinguish your business from your competitors. A strong competitive analysis is essential if you want to convince potential funding sources to invest in your business. You have to show potential investors and lenders that your business has what it takes to compete in the marketplace successfully.

Competitive analysis will s how you what the strengths of your competition are and what they are doing to maintain that advantage.

When doing your competitive research, you first have to identify your competitor and then get all the information you can about them. The idea of spending time to identify your competitor and learn everything about them may seem daunting but it is well worth it.

Find answers to the following questions after you have identified who your competitors are.

• What are your successful competitors doing?
• Why is what they are doing working?
• Can your business do it better?
• What are the weaknesses of your successful competitors?
• What are they not doing well?
• Can your business turn its weaknesses into strengths?
• How good is your competitors’ customer service?
• Where do your competitors invest in advertising?
• What sales and pricing strategies are they using?
• What marketing strategies are they using?
• What kind of press coverage do they get?
• What are their customers saying about your competitors (both the positive and negative)?

If your competitors have a website, it is a good idea to visit their websites for more competitors’ research. Check their “About Us” page for more information.

If you are presenting your business plan to investors, you need to clearly distinguish yourself from your competitors. Investors can easily tell when you have not properly researched your competitors.

Take time to think about what unique qualities or features set you apart from your competitors. If you do not have any direct competition offering your product to the market, it does not mean you leave out the competitor analysis section blank. Instead research on other companies that are providing a similar product, or whose product is solving the problem your product solves.

The next step is to create a table listing the top competitors you want to include in your business plan. Ensure you list your business as the last and on the right. What you just created is known as the competitor analysis table.

Direct vs Indirect Competition

You cannot know if your product or service will be a fit for your target market if you have not understood your business and the competitive landscape.

There is no market you want to target where you will not encounter competition, even if your product is innovative. Including competitive analysis in your business plan is essential.

If you are entering an established market, you need to explain how you plan to differentiate your products from the available options in the market. Also, include a list of few companies that you view as your direct competitors The competition you face in an established market is your direct competition.

In situations where you are entering a market with no direct competition, it does not mean there is no competition there. Consider your indirect competition that offers substitutes for the products or services you offer.

For example, if you sell an innovative SaaS product, let us say a project management software , a company offering time management software is your indirect competition.

There is an easy way to find out who your indirect competitors are in the absence of no direct competitors. You simply have to research how your potential customers are solving the problems that your product or service seeks to solve. That is your direct competition.

Factors that Differentiate Your Business from the Competition

There are three main factors that any business can use to differentiate itself from its competition. They are cost leadership, product differentiation, and market segmentation.

1. Cost Leadership

A strategy you can impose to maximize your profits and gain an edge over your competitors. It involves offering lower prices than what the majority of your competitors are offering.

A common practice among businesses looking to enter into a market where there are dominant players is to use free trials or pricing to attract as many customers as possible to their offer.

2. Product Differentiation

Your product or service should have a unique selling proposition (USP) that your competitors do not have or do not stress in their marketing.

Part of the marketing strategy should involve making your products unique and different from your competitors. It does not have to be different from your competitors, it can be the addition to a feature or benefit that your competitors do not currently have.

3. Market Segmentation

As a new business seeking to break into an industry, you will gain more success from focusing on a specific niche or target market, and not the whole industry.

If your competitors are focused on a general need or target market, you can differentiate yourself from them by having a small and hyper-targeted audience. For example, if your competitors are selling men’s clothes in their online stores , you can sell hoodies for men.

4. Define Your Business and Management Structure

The next step in your business plan is your business and management structure. It is the section where you describe the legal structure of your business and the team running it.

Your business is only as good as the management team that runs it, while the management team can only strive when there is a proper business and management structure in place.

If your company is a sole proprietor or a limited liability company (LLC), a general or limited partnership, or a C or an S corporation, state it clearly in this section.

Use an organizational chart to show the management structure in your business. Clearly show who is in charge of what area in your company. It is where you show how each key manager or team leader’s unique experience can contribute immensely to the success of your company. You can also opt to add the resumes and CVs of the key players in your company.

The business and management structure section should show who the owner is, and other owners of the businesses (if the business has other owners). For businesses or companies with multiple owners, include the percent ownership of the various owners and clearly show the extent of each others’ involvement in the company.

Investors want to know who is behind the company and the team running it to determine if it has the right management to achieve its set goals.

Management Team

The management team section is where you show that you have the right team in place to successfully execute the business operations and ideas. Take time to create the management structure for your business. Think about all the important roles and responsibilities that you need managers for to grow your business.

Include brief bios of each key team member and ensure you highlight only the relevant information that is needed. If your team members have background industry experience or have held top positions for other companies and achieved success while filling that role, highlight it in this section.

A common mistake that many startups make is assigning C-level titles such as (CMO and CEO) to everyone on their team. It is unrealistic for a small business to have those titles. While it may look good on paper for the ego of your team members, it can prevent investors from investing in your business.

Instead of building an unrealistic management structure that does not fit your business reality, it is best to allow business titles to grow as the business grows. Starting everyone at the top leaves no room for future change or growth, which is bad for productivity.

Your management team does not have to be complete before you start writing your business plan. You can have a complete business plan even when there are managerial positions that are empty and need filling.

If you have management gaps in your team, simply show the gaps and indicate you are searching for the right candidates for the role(s). Investors do not expect you to have a full management team when you are just starting your business.

Key Questions to Answer When Structuring Your Management Team

• Who are the key leaders?
• What experiences, skills, and educational backgrounds do you expect your key leaders to have?
• Do your key leaders have industry experience?
• What positions will they fill and what duties will they perform in those positions?
• What level of authority do the key leaders have and what are their responsibilities?
• What is the salary for the various management positions that will attract the ideal candidates?

Additional Tips for Writing the Management Structure Section

1. Avoid Adding ‘Ghost’ Names to Your Management Team

There is always that temptation to include a ‘ghost’ name to your management team to attract and influence investors to invest in your business. Although the presence of these celebrity management team members may attract the attention of investors, it can cause your business to lose any credibility if you get found out.

Seasoned investors will investigate further the members of your management team before committing fully to your business If they find out that the celebrity name used does not play any actual role in your business, they will not invest and may write you off as dishonest.

2. Focus on Credentials But Pay Extra Attention to the Roles

Investors want to know the experience that your key team members have to determine if they can successfully reach the company’s growth and financial goals.

While it is an excellent boost for your key management team to have the right credentials, you also want to pay extra attention to the roles they will play in your company.

Organizational Chart

Adding an organizational chart in this section of your business plan is not necessary, you can do it in your business plan’s appendix.

If you are exploring funding options, it is not uncommon to get asked for your organizational chart. The function of an organizational chart goes beyond raising money, you can also use it as a useful planning tool for your business.

An organizational chart can help you identify how best to structure your management team for maximum productivity and point you towards key roles you need to fill in the future.

You can use the organizational chart to show your company’s internal management structure such as the roles and responsibilities of your management team, and relationships that exist between them.

5. Describe Your Product and Service Offering

In your business plan, you have to describe what you sell or the service you plan to offer. It is the next step after defining your business and management structure. The products and services section is where you sell the benefits of your business.

Here you have to explain how your product or service will benefit your customers and describe your product lifecycle. It is also the section where you write down your plans for intellectual property like patent filings and copyrighting.

The research and development that you are undertaking for your product or service need to be explained in detail in this section. However, do not get too technical, sell the general idea and its benefits.

If you have any diagrams or intricate designs of your product or service, do not include them in the products and services section. Instead, leave them for the addendum page. Also, if you are leaving out diagrams or designs for the addendum, ensure you add this phrase “For more detail, visit the addendum Page #.”

Your product and service section in your business plan should include the following:

• A detailed explanation that clearly shows how your product or service works.
• The pricing model for your product or service.
• Your business’ sales and distribution strategy.
• The ideal customers that want your product or service.
• The benefits of your products and services.
• Reason(s) why your product or service is a better alternative to what your competitors are currently offering in the market.
• Plans for filling the orders you receive
• If you have current or pending patents, copyrights, and trademarks for your product or service, you can also discuss them in this section.

What to Focus On When Describing the Benefits, Lifecycle, and Production Process of Your Products or Services

In the products and services section, you have to distill the benefits, lifecycle, and production process of your products and services.

When describing the benefits of your products or services, here are some key factors to focus on.

• Unique features
• Translating the unique features into benefits
• The emotional, psychological, and practical payoffs to attract customers
• Intellectual property rights or any patents

When describing the product life cycle of your products or services, here are some key factors to focus on.

• Upsells, cross-sells, and down-sells
• Time between purchases
• Plans for research and development.

When describing the production process for your products or services, you need to think about the following:

• The creation of new or existing products and services.
• The sources for the raw materials or components you need for production.
• Assembling the products
• Maintaining quality control
• Supply-chain logistics (receiving the raw materials and delivering the finished products)
• The day-to-day management of the production processes, bookkeeping, and inventory.

Tips for Writing the Products or Services Section of Your Business Plan

1. Avoid Technical Descriptions and Industry Buzzwords

The products and services section of your business plan should clearly describe the products and services that your company provides. However, it is not a section to include technical jargons that anyone outside your industry will not understand.

A good practice is to remove highly detailed or technical descriptions in favor of simple terms. Industry buzzwords are not necessary, if there are simpler terms you can use, then use them. If you plan to use your business plan to source funds, making the product or service section so technical will do you no favors.

2. Describe How Your Products or Services Differ from Your Competitors

When potential investors look at your business plan, they want to know how the products and services you are offering differ from that of your competition. Differentiating your products or services from your competition in a way that makes your solution more attractive is critical.

If you are going the innovative path and there is no market currently for your product or service, you need to describe in this section why the market needs your product or service.

For example, overnight delivery was a niche business that only a few companies were participating in. Federal Express (FedEx) had to show in its business plan that there was a large opportunity for that service and they justified why the market needed that service.

3. Long or Short Products or Services Section

Should your products or services section be short? Does the long products or services section attract more investors?

There are no straightforward answers to these questions. Whether your products or services section should be long or relatively short depends on the nature of your business.

If your business is product-focused, then automatically you need to use more space to describe the details of your products. However, if the product your business sells is a commodity item that relies on competitive pricing or other pricing strategies, you do not have to use up so much space to provide significant details about the product.

Likewise, if you are selling a commodity that is available in numerous outlets, then you do not have to spend time on writing a long products or services section.

The key to the success of your business is most likely the effectiveness of your marketing strategies compared to your competitors. Use more space to address that section.

If you are creating a new product or service that the market does not know about, your products or services section can be lengthy. The reason why is because you need to explain everything about the product or service such as the nature of the product, its use case, and values.

A short products or services section for an innovative product or service will not give the readers enough information to properly evaluate your business.

4. Describe Your Relationships with Vendors or Suppliers

Your business will rely on vendors or suppliers to supply raw materials or the components needed to make your products. In your products and services section, describe your relationships with your vendors and suppliers fully.

Avoid the mistake of relying on only one supplier or vendor. If that supplier or vendor fails to supply or goes out of business, you can easily face supply problems and struggle to meet your demands. Plan to set up multiple vendor or supplier relationships for better business stability.

5. Your Primary Goal Is to Convince Your Readers

The primary goal of your business plan is to convince your readers that your business is viable and to create a guide for your business to follow. It applies to the products and services section.

When drafting this section, think like the reader. See your reader as someone who has no idea about your products and services. You are using the products and services section to provide the needed information to help your reader understand your products and services. As a result, you have to be clear and to the point.

While you want to educate your readers about your products or services, you also do not want to bore them with lots of technical details. Show your products and services and not your fancy choice of words.

Your products and services section should provide the answer to the “what” question for your business. You and your management team may run the business, but it is your products and services that are the lifeblood of the business.

Key Questions to Answer When Writing your Products and Services Section

Answering these questions can help you write your products and services section quickly and in a way that will appeal to your readers.

• Are your products existing on the market or are they still in the development stage?
• What is your timeline for adding new products and services to the market?
• What are the positives that make your products and services different from your competitors?
• Do your products and services have any competitive advantage that your competitors’ products and services do not currently have?
• Do your products or services have any competitive disadvantages that you need to overcome to compete with your competitors? If your answer is yes, state how you plan to overcome them,
• How much does it cost to produce your products or services? How much do you plan to sell it for?
• What is the price for your products and services compared to your competitors? Is pricing an issue?
• What are your operating costs and will it be low enough for you to compete with your competitors and still take home a reasonable profit margin?
• What is your plan for acquiring your products? Are you involved in the production of your products or services?
• Are you the manufacturer and produce all the components you need to create your products? Do you assemble your products by using components supplied by other manufacturers? Do you purchase your products directly from suppliers or wholesalers?
• Do you have a steady supply of products that you need to start your business? (If your business is yet to kick-off)
• How do you plan to distribute your products or services to the market?

You can also hint at the marketing or promotion plans you have for your products or services such as how you plan to build awareness or retain customers. The next section is where you can go fully into details about your business’s marketing and sales plan.

6. Show and Explain Your Marketing and Sales Plan

Providing great products and services is wonderful, but it means nothing if you do not have a marketing and sales plan to inform your customers about them. Your marketing and sales plan is critical to the success of your business.

The sales and marketing section is where you show and offer a detailed explanation of your marketing and sales plan and how you plan to execute it. It covers your pricing plan, proposed advertising and promotion activities, activities and partnerships you need to make your business a success, and the benefits of your products and services.

There are several ways you can approach your marketing and sales strategy. Ideally, your marketing and sales strategy has to fit the unique needs of your business.

In this section, you describe how the plans your business has for attracting and retaining customers, and the exact process for making a sale happen. It is essential to thoroughly describe your complete marketing and sales plans because you are still going to reference this section when you are making financial projections for your business.

Outline Your Business’ Unique Selling Proposition (USP)

The sales and marketing section is where you outline your business’s unique selling proposition (USP). When you are developing your unique selling proposition, think about the strongest reasons why people should buy from you over your competition. That reason(s) is most likely a good fit to serve as your unique selling proposition (USP).

Target Market and Target Audience

Plans on how to get your products or services to your target market and how to get your target audience to buy them go into this section. You also highlight the strengths of your business here, particularly what sets them apart from your competition.

Before you start writing your marketing and sales plan, you need to have properly defined your target audience and fleshed out your buyer persona. If you do not first understand the individual you are marketing to, your marketing and sales plan will lack any substance and easily fall.

Creating a Smart Marketing and Sales Plan

Marketing your products and services is an investment that requires you to spend money. Like any other investment, you have to generate a good return on investment (ROI) to justify using that marketing and sales plan. Good marketing and sales plans bring in high sales and profits to your company.

Avoid spending money on unproductive marketing channels. Do your research and find out the best marketing and sales plan that works best for your company.

Your marketing and sales plan can be broken into different parts: your positioning statement, pricing, promotion, packaging, advertising, public relations, content marketing, social media, and strategic alliances.

Your Positioning Statement

Your positioning statement is the first part of your marketing and sales plan. It refers to the way you present your company to your customers.

Are you the premium solution, the low-price solution, or are you the intermediary between the two extremes in the market? What do you offer that your competitors do not that can give you leverage in the market?

Before you start writing your positioning statement, you need to spend some time evaluating the current market conditions. Here are some questions that can help you to evaluate the market

• What are the unique features or benefits that you offer that your competitors lack?
• What are your customers’ primary needs and wants?
• Why should a customer choose you over your competition? How do you plan to differentiate yourself from the competition?
• How does your company’s solution compare with other solutions in the market?

After answering these questions, then you can start writing your positioning statement. Your positioning statement does not have to be in-depth or too long.

All you need to explain with your positioning statement are two focus areas. The first is the position of your company within the competitive landscape. The other focus area is the core value proposition that sets your company apart from other alternatives that your ideal customer might consider.

Here is a simple template you can use to develop a positioning statement.

For [description of target market] who [need of target market], [product or service] [how it meets the need]. Unlike [top competition], it [most essential distinguishing feature].

For example, let’s create the positioning statement for fictional accounting software and QuickBooks alternative , TBooks.

“For small business owners who need accounting services, TBooks is an accounting software that helps small businesses handle their small business bookkeeping basics quickly and easily. Unlike Wave, TBooks gives small businesses access to live sessions with top accountants.”

You can edit this positioning statement sample and fill it with your business details.

After writing your positioning statement, the next step is the pricing of your offerings. The overall positioning strategy you set in your positioning statement will often determine how you price your products or services.

Pricing is a powerful tool that sends a strong message to your customers. Failure to get your pricing strategy right can make or mar your business. If you are targeting a low-income audience, setting a premium price can result in low sales.

You can use pricing to communicate your positioning to your customers. For example, if you are offering a product at a premium price, you are sending a message to your customers that the product belongs to the premium category.

Basic Rules to Follow When Pricing Your Offering

Setting a price for your offering involves more than just putting a price tag on it. Deciding on the right pricing for your offering requires following some basic rules. They include covering your costs, primary and secondary profit center pricing, and matching the market rate.

• Covering Your Costs: The price you set for your products or service should be more than it costs you to produce and deliver them. Every business has the same goal, to make a profit. Depending on the strategy you want to use, there are exceptions to this rule. However, the vast majority of businesses follow this rule.
• Primary and Secondary Profit Center Pricing: When a company sets its price above the cost of production, it is making that product its primary profit center. A company can also decide not to make its initial price its primary profit center by selling below or at even with its production cost. It rather depends on the support product or even maintenance that is associated with the initial purchase to make its profit. The initial price thus became its secondary profit center.
• Matching the Market Rate: A good rule to follow when pricing your products or services is to match your pricing with consumer demand and expectations. If you price your products or services beyond the price your customer perceives as the ideal price range, you may end up with no customers. Pricing your products too low below what your customer perceives as the ideal price range may lead to them undervaluing your offering.

Pricing Strategy

Your pricing strategy influences the price of your offering. There are several pricing strategies available for you to choose from when examining the right pricing strategy for your business. They include cost-plus pricing, market-based pricing, value pricing, and more.

• Cost-plus Pricing: This strategy is one of the simplest and oldest pricing strategies. Here you consider the cost of producing a unit of your product and then add a profit to it to arrive at your market price. It is an effective pricing strategy for manufacturers because it helps them cover their initial costs. Another name for the cost-plus pricing strategy is the markup pricing strategy.
• Market-based Pricing: This pricing strategy analyses the market including competitors’ pricing and then sets a price based on what the market is expecting. With this pricing strategy, you can either set your price at the low-end or high-end of the market.
• Value Pricing: This pricing strategy involves setting a price based on the value you are providing to your customer. When adopting a value-based pricing strategy, you have to set a price that your customers are willing to pay. Service-based businesses such as small business insurance providers , luxury goods sellers, and the fashion industry use this pricing strategy.

After carefully sorting out your positioning statement and pricing, the next item to look at is your promotional strategy. Your promotional strategy explains how you plan on communicating with your customers and prospects.

As a business, you must measure all your costs, including the cost of your promotions. You also want to measure how much sales your promotions bring for your business to determine its usefulness. Promotional strategies or programs that do not lead to profit need to be removed.

There are different types of promotional strategies you can adopt for your business, they include advertising, public relations, and content marketing.

Advertising

Your business plan should include your advertising plan which can be found in the marketing and sales plan section. You need to include an overview of your advertising plans such as the areas you plan to spend money on to advertise your business and offers.

Ensure that you make it clear in this section if your business will be advertising online or using the more traditional offline media, or the combination of both online and offline media. You can also include the advertising medium you want to use to raise awareness about your business and offers.

Some common online advertising mediums you can use include social media ads, landing pages, sales pages, SEO, Pay-Per-Click, emails, Google Ads, and others. Some common traditional and offline advertising mediums include word of mouth, radios, direct mail, televisions, flyers, billboards, posters, and others.

A key component of your advertising strategy is how you plan to measure the effectiveness and success of your advertising campaign. There is no point in sticking with an advertising plan or medium that does not produce results for your business in the long run.

Public Relations

A great way to reach your customers is to get the media to cover your business or product. Publicity, especially good ones, should be a part of your marketing and sales plan. In this section, show your plans for getting prominent reviews of your product from reputable publications and sources.

Your business needs that exposure to grow. If public relations is a crucial part of your promotional strategy, provide details about your public relations plan here.

Content Marketing

Content marketing is a popular promotional strategy used by businesses to inform and attract their customers. It is about teaching and educating your prospects on various topics of interest in your niche, it does not just involve informing them about the benefits and features of the products and services you have,

Businesses publish content usually for free where they provide useful information, tips, and advice so that their target market can be made aware of the importance of their products and services. Content marketing strategies seek to nurture prospects into buyers over time by simply providing value.

Your company can create a blog where it will be publishing content for its target market. You will need to use the best website builder such as Wix and Squarespace and the best web hosting services such as Bluehost, Hostinger, and other Bluehost alternatives to create a functional blog or website.

If content marketing is a crucial part of your promotional strategy (as it should be), detail your plans under promotions.

Including high-quality images of the packaging of your product in your business plan is a lovely idea. You can add the images of the packaging of that product in the marketing and sales plan section. If you are not selling a product, then you do not need to include any worry about the physical packaging of your product.

When organizing the packaging section of your business plan, you can answer the following questions to make maximum use of this section.

• Is your choice of packaging consistent with your positioning strategy?
• What key value proposition does your packaging communicate? (It should reflect the key value proposition of your business)
• How does your packaging compare to that of your competitors?

Social Media

Your 21st-century business needs to have a good social media presence. Not having one is leaving out opportunities for growth and reaching out to your prospect.

You do not have to join the thousands of social media platforms out there. What you need to do is join the ones that your customers are active on and be active there.

Businesses use social media to provide information about their products such as promotions, discounts, the benefits of their products, and content on their blogs.

Social media is also a platform for engaging with your customers and getting feedback about your products or services. Make no mistake, more and more of your prospects are using social media channels to find more information about companies.

You need to consider the social media channels you want to prioritize your business (prioritize the ones your customers are active in) and your branding plans in this section.

Strategic Alliances

If your company plans to work closely with other companies as part of your sales and marketing plan, include it in this section. Prove details about those partnerships in your business plan if you have already established them.

Strategic alliances can be beneficial for all parties involved including your company. Working closely with another company in the form of a partnership can provide access to a different target market segment for your company.

The company you are partnering with may also gain access to your target market or simply offer a new product or service (that of your company) to its customers.

Mutually beneficial partnerships can cover the weaknesses of one company with the strength of another. You should consider strategic alliances with companies that sell complimentary products to yours. For example, if you provide printers, you can partner with a company that produces ink since the customers that buy printers from you will also need inks for printing.

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

Identify who your customers are, the market you want to target. Then determine the best ways to get your products or services to your potential customers.

2. Evaluate Your Competition

One of the goals of having a marketing plan is to distinguish yourself from your competition. You cannot stand out from them without first knowing them in and out.

You can know your competitors by gathering information about their products, pricing, service, and advertising campaigns.

These questions can help you know your competition.

• What makes your competition successful?
• What are their weaknesses?
• What are customers saying about your competition?

3. Consider Your Brand

Customers' perception of your brand has a strong impact on your sales. Your marketing and sales plan should seek to bolster the image of your brand. Before you start marketing your business, think about the message you want to pass across about your business and your products and services.

4. Focus on Benefits

The majority of your customers do not view your product in terms of features, what they want to know is the benefits and solutions your product offers. Think about the problems your product solves and the benefits it delivers, and use it to create the right sales and marketing message.

Your marketing plan should focus on what you want your customer to get instead of what you provide. Identify those benefits in your marketing and sales plan.

5. Focus on Differentiation

Your marketing and sales plan should look for a unique angle they can take that differentiates your business from the competition, even if the products offered are similar. Some good areas of differentiation you can use are your benefits, pricing, and features.

Key Questions to Answer When Writing Your Marketing and Sales Plan

• What is your company’s budget for sales and marketing campaigns?
• What key metrics will you use to determine if your marketing plans are successful?
• What are your alternatives if your initial marketing efforts do not succeed?
• Who are the sales representatives you need to promote your products or services?
• What are the marketing and sales channels you plan to use? How do you plan to get your products in front of your ideal customers?
• Where will you sell your products?

You may want to include samples of marketing materials you plan to use such as print ads, website descriptions, and social media ads. While it is not compulsory to include these samples, it can help you better communicate your marketing and sales plan and objectives.

The purpose of the marketing and sales section is to answer this question “How will you reach your customers?” If you cannot convincingly provide an answer to this question, you need to rework your marketing and sales section.

7. Clearly Show Your Funding Request

If you are writing your business plan to ask for funding from investors or financial institutions, the funding request section is where you will outline your funding requirements. The funding request section should answer the question ‘How much money will your business need in the near future (3 to 5 years)?’

A good funding request section will clearly outline and explain the amount of funding your business needs over the next five years. You need to know the amount of money your business needs to make an accurate funding request.

Also, when writing your funding request, provide details of how the funds will be used over the period. Specify if you want to use the funds to buy raw materials or machinery, pay salaries, pay for advertisements, and cover specific bills such as rent and electricity.

In addition to explaining what you want to use the funds requested for, you need to clearly state the projected return on investment (ROI) . Investors and creditors want to know if your business can generate profit for them if they put funds into it.

Ensure you do not inflate the figures and stay as realistic as possible. Investors and financial institutions you are seeking funds from will do their research before investing money in your business.

If you are not sure of an exact number to request from, you can use some range of numbers as rough estimates. Add a best-case scenario and a work-case scenario to your funding request. Also, include a description of your strategic future financial plans such as selling your business or paying off debts.

Funding Request: Debt or Equity?

When making your funding request, specify the type of funding you want. Do you want debt or equity? Draw out the terms that will be applicable for the funding, and the length of time the funding request will cover.

Case for Equity

If your new business has not yet started generating profits, you are most likely preparing to sell equity in your business to raise capital at the early stage. Equity here refers to ownership. In this case, you are selling a portion of your company to raise capital.

Although this method of raising capital for your business does not put your business in debt, keep in mind that an equity owner may expect to play a key role in company decisions even if he does not hold a major stake in the company.

Most equity sales for startups are usually private transactions . If you are making a funding request by offering equity in exchange for funding, let the investor know that they will be paid a dividend (a share of the company’s profit). Also, let the investor know the process for selling their equity in your business.

Case for Debt

You may decide not to offer equity in exchange for funds, instead, you make a funding request with the promise to pay back the money borrowed at the agreed time frame.

When making a funding request with an agreement to pay back, note that you will have to repay your creditors both the principal amount borrowed and the interest on it. Financial institutions offer this type of funding for businesses.

Large companies combine both equity and debt in their capital structure. When drafting your business plan, decide if you want to offer both or one over the other.

Before you sell equity in exchange for funding in your business, consider if you are willing to accept not being in total control of your business. Also, before you seek loans in your funding request section, ensure that the terms of repayment are favorable.

You should set a clear timeline in your funding request so that potential investors and creditors can know what you are expecting. Some investors and creditors may agree to your funding request and then delay payment for longer than 30 days, meanwhile, your business needs an immediate cash injection to operate efficiently.

Additional Tips for Writing the Funding Request Section of your Business Plan

The funding request section is not necessary for every business, it is only needed by businesses who plan to use their business plan to secure funding.

If you are adding the funding request section to your business plan, provide an itemized summary of how you plan to use the funds requested. Hiring a lawyer, accountant, or other professionals may be necessary for the proper development of this section.

You should also gather and use financial statements that add credibility and support to your funding requests. Ensure that the financial statements you use should include your projected financial data such as projected cash flows, forecast statements, and expenditure budgets.

If you are an existing business, include all historical financial statements such as cash flow statements, balance sheets and income statements .

Provide monthly and quarterly financial statements for a year. If your business has records that date back beyond the one-year mark, add the yearly statements of those years. These documents are for the appendix section of your business plan.

8. Detail Your Financial Plan, Metrics, and Projections

If you used the funding request section in your business plan, supplement it with a financial plan, metrics, and projections. This section paints a picture of the past performance of your business and then goes ahead to make an informed projection about its future.

The goal of this section is to convince readers that your business is going to be a financial success. It outlines your business plan to generate enough profit to repay the loan (with interest if applicable) and to generate a decent return on investment for investors.

If you have an existing business already in operation, use this section to demonstrate stability through finance. This section should include your cash flow statements, balance sheets, and income statements covering the last three to five years. If your business has some acceptable collateral that you can use to acquire loans, list it in the financial plan, metrics, and projection section.

Apart from current financial statements, this section should also contain a prospective financial outlook that spans the next five years. Include forecasted income statements, cash flow statements, balance sheets, and capital expenditure budget.

If your business is new and is not yet generating profit, use clear and realistic projections to show the potentials of your business.

When drafting this section, research industry norms and the performance of comparable businesses. Your financial projections should cover at least five years. State the logic behind your financial projections. Remember you can always make adjustments to this section as the variables change.

The financial plan, metrics, and projection section create a baseline which your business can either exceed or fail to reach. If your business fails to reach your projections in this section, you need to understand why it failed.

Investors and loan managers spend a lot of time going through the financial plan, metrics, and projection section compared to other parts of the business plan. Ensure you spend time creating credible financial analyses for your business in this section.

Many entrepreneurs find this section daunting to write. You do not need a business degree to create a solid financial forecast for your business. Business finances, especially for startups, are not as complicated as they seem. There are several online tools and templates that make writing this section so much easier.

Use Graphs and Charts

The financial plan, metrics, and projection section is a great place to use graphs and charts to tell the financial story of your business. Charts and images make it easier to communicate your finances.

Accuracy in this section is key, ensure you carefully analyze your past financial statements properly before making financial projects.

Address the Risk Factors and Show Realistic Financial Projections

Keep your financial plan, metrics, and projection realistic. It is okay to be optimistic in your financial projection, however, you have to justify it.

You should also address the various risk factors associated with your business in this section. Investors want to know the potential risks involved, show them. You should also show your plans for mitigating those risks.

What You Should In The Financial Plan, Metrics, and Projection Section of Your Business Plan

The financial plan, metrics, and projection section of your business plan should have monthly sales and revenue forecasts for the first year. It should also include annual projections that cover 3 to 5 years.

A three-year projection is a basic requirement to have in your business plan. However, some investors may request a five-year forecast.

Your business plan should include the following financial statements: sales forecast, personnel plan, income statement, income statement, cash flow statement, balance sheet, and an exit strategy.

1. Sales Forecast

Sales forecast refers to your projections about the number of sales your business is going to record over the next few years. It is typically broken into several rows, with each row assigned to a core product or service that your business is offering.

One common mistake people make in their business plan is to break down the sales forecast section into long details. A sales forecast should forecast the high-level details.

For example, if you are forecasting sales for a payroll software provider, you could break down your forecast into target market segments or subscription categories.

Your sales forecast section should also have a corresponding row for each sales row to cover the direct cost or Cost of Goods Sold (COGS). The objective of these rows is to show the expenses that your business incurs in making and delivering your product or service.

Note that your Cost of Goods Sold (COGS) should only cover those direct costs incurred when making your products. Other indirect expenses such as insurance, salaries, payroll tax, and rent should not be included.

For example, the Cost of Goods Sold (COGS) for a restaurant is the cost of ingredients while for a consulting company it will be the cost of paper and other presentation materials.

2. Personnel Plan

The personnel plan section is where you provide details about the payment plan for your employees. For a small business, you can easily list every position in your company and how much you plan to pay in the personnel plan.

However, for larger businesses, you have to break the personnel plan into functional groups such as sales and marketing.

The personnel plan will also include the cost of an employee beyond salary, commonly referred to as the employee burden. These costs include insurance, payroll taxes , and other essential costs incurred monthly as a result of having employees on your payroll.

3. Income Statement

The income statement section shows if your business is making a profit or taking a loss. Another name for the income statement is the profit and loss (P&L). It takes data from your sales forecast and personnel plan and adds other ongoing expenses you incur while running your business.

Every business plan should have an income statement. It subtracts your business expenses from its earnings to show if your business is generating profit or incurring losses.

The income statement has the following items: sales, Cost of Goods Sold (COGS), gross margin, operating expenses, total operating expenses, operating income , total expenses, and net profit.

• Sales refer to the revenue your business generates from selling its products or services. Other names for sales are income or revenue.
• Cost of Goods Sold (COGS) refers to the total cost of selling your products. Other names for COGS are direct costs or cost of sales. Manufacturing businesses use the Costs of Goods Manufactured (COGM) .
• Gross Margin is the figure you get when you subtract your COGS from your sales. In your income statement, you can express it as a percentage of total sales (Gross margin / Sales = Gross Margin Percent).
• Operating Expenses refer to all the expenses you incur from running your business. It exempts the COGS because it stands alone as a core part of your income statement. You also have to exclude taxes, depreciation, and amortization. Your operating expenses include salaries, marketing expenses, research and development (R&D) expenses, and other expenses.
• Total Operating Expenses refers to the sum of all your operating expenses including those exemptions named above under operating expenses.
• Operating Income refers to earnings before interest, taxes, depreciation, and amortization. It is simply known as the acronym EBITDA (earnings before interest, taxes, depreciation, and amortization). Calculating your operating income is simple, all you need to do is to subtract your COGS and total operating expenses from your sales.
• Total Expenses refer to the sum of your operating expenses and your business’ interest, taxes, depreciation, and amortization.
• Net profit shows whether your business has made a profit or taken a loss during a given timeframe.

4. Cash Flow Statement

The cash flow statement tracks the money you have in the bank at any given point. It is often confused with the income statement or the profit and loss statement. They are both different types of financial statements. The income statement calculates your profits and losses while the cash flow statement shows you how much you have in the bank.

5. Balance Sheet

The balance sheet is a financial statement that provides an overview of the financial health of your business. It contains information about the assets and liabilities of your company, and owner’s or shareholders’ equity.

You can get the net worth of your company by subtracting your company’s liabilities from its assets.

6. Exit Strategy

The exit strategy refers to a probable plan for selling your business either to the public in an IPO or to another company. It is the last thing you include in the financial plan, metrics, and projection section.

You can choose to omit the exit strategy from your business plan if you plan to maintain full ownership of your business and do not plan on seeking angel investment or virtual capitalist (VC) funding.

Investors may want to know what your exit plan is. They invest in your business to get a good return on investment.

Your exit strategy does not have to include long and boring details. Ensure you identify some interested parties who may be interested in buying the company if it becomes a success.

Key Questions to Answer with Your Financial Plan, Metrics, and Projection

Your financial plan, metrics, and projection section helps investors, creditors, or your internal managers to understand what your expenses are, the amount of cash you need, and what it takes to make your company profitable. It also shows what you will be doing with any funding.

You do not need to show actual financial data if you do not have one. Adding forecasts and projections to your financial statements is added proof that your strategy is feasible and shows investors you have planned properly.

Here are some key questions to answer to help you develop this section.

• What is your sales forecast for the next year?
• When will your company achieve a positive cash flow?
• What are the core expenses you need to operate?
• How much money do you need upfront to operate or grow your company?
• How will you use the loans or investments?

9. Add an Appendix to Your Business Plan

Adding an appendix to your business plan is optional. It is a useful place to put any charts, tables, legal notes, definitions, permits, résumés, and other critical information that do not fit into other sections of your business plan.

The appendix section is where you would want to include details of a patent or patent-pending if you have one. You can always add illustrations or images of your products here. It is the last section of your business plan.

When writing your business plan, there are details you cut short or remove to prevent the entire section from becoming too lengthy. There are also details you want to include in the business plan but are not a good fit for any of the previous sections. You can add that additional information to the appendix section.

Businesses also use the appendix section to include supporting documents or other materials specially requested by investors or lenders.

You can include just about any information that supports the assumptions and statements you made in the business plan under the appendix. It is the one place in the business plan where unrelated data and information can coexist amicably.

If your appendix section is lengthy, try organizing it by adding a table of contents at the beginning of the appendix section. It is also advisable to group similar information to make it easier for the reader to access them.

A well-organized appendix section makes it easier to share your information clearly and concisely. Add footnotes throughout the rest of the business plan or make references in the plan to the documents in the appendix.

The appendix section is usually only necessary if you are seeking funding from investors or lenders, or hoping to attract partners.

People reading business plans do not want to spend time going through a heap of backup information, numbers, and charts. Keep these documents or information in the Appendix section in case the reader wants to dig deeper.

Common Items to Include in the Appendix Section of Your Business Plan

The appendix section includes documents that supplement or support the information or claims given in other sections of the business plans. Common items you can include in the appendix section include:

• Additional data about the process of manufacturing or creation
• Additional description of products or services such as product schematics
• Additional financial documents or projections
• Articles of incorporation and status
• Backup for market research or competitive analysis
• Bank statements
• Business registries
• Client testimonials (if your business is already running)
• Copies of insurances
• Credit histories (personal or/and business)
• Deeds and permits
• Equipment leases
• Examples of marketing and advertising collateral
• Industry associations and memberships
• Images of product
• Intellectual property
• Key customer contracts
• Legal documents and other contracts
• Letters of reference
• Links to references
• Market research data
• Organizational charts
• Photographs of potential facilities
• Professional licenses pertaining to your legal structure or type of business
• Purchase orders
• Resumes of the founder(s) and key managers
• State and federal identification numbers or codes
• Trademarks or patents’ registrations

Avoid using the appendix section as a place to dump any document or information you feel like adding. Only add documents or information that you support or increase the credibility of your business plan.

Tips and Strategies for Writing a Convincing Business Plan

To achieve a perfect business plan, you need to consider some key tips and strategies. These tips will raise the efficiency of your business plan above average.

1. Know Your Audience

When writing a business plan, you need to know your audience . Business owners write business plans for different reasons. Your business plan has to be specific. For example, you can write business plans to potential investors, banks, and even fellow board members of the company.

The audience you are writing to determines the structure of the business plan. As a business owner, you have to know your audience. Not everyone will be your audience. Knowing your audience will help you to narrow the scope of your business plan.

Consider what your audience wants to see in your projects, the likely questions they might ask, and what interests them.

• A business plan used to address a company's board members will center on its employment schemes, internal affairs, projects, stakeholders, etc.
• A business plan for financial institutions will talk about the size of your market and the chances for you to pay back any loans you demand.
• A business plan for investors will show proof that you can return the investment capital within a specific time. In addition, it discusses your financial projections, tractions, and market size.

2. Get Inspiration from People

Writing a business plan from scratch as an entrepreneur can be daunting. That is why you need the right inspiration to push you to write one. You can gain inspiration from the successful business plans of other businesses. Look at their business plans, the style they use, the structure of the project, etc.

To make your business plan easier to create, search companies related to your business to get an exact copy of what you need to create an effective business plan. You can also make references while citing examples in your business plans.

When drafting your business plan, get as much help from others as you possibly can. By getting inspiration from people, you can create something better than what they have.

3. Avoid Being Over Optimistic

Many business owners make use of strong adjectives to qualify their content. One of the big mistakes entrepreneurs make when preparing a business plan is promising too much.

The use of superlatives and over-optimistic claims can prepare the audience for more than you can offer. In the end, you disappoint the confidence they have in you.

In most cases, the best option is to be realistic with your claims and statistics. Most of the investors can sense a bit of incompetency from the overuse of superlatives. As a new entrepreneur, do not be tempted to over-promise to get the interests of investors.

The concept of entrepreneurship centers on risks, nothing is certain when you make future analyses. What separates the best is the ability to do careful research and work towards achieving that, not promising more than you can achieve.

To make an excellent first impression as an entrepreneur, replace superlatives with compelling data-driven content. In this way, you are more specific than someone promising a huge ROI from an investment.

4. Keep it Simple and Short

When writing business plans, ensure you keep them simple throughout. Irrespective of the purpose of the business plan, your goal is to convince the audience.

One way to achieve this goal is to make them understand your proposal. Therefore, it would be best if you avoid the use of complex grammar to express yourself. It would be a huge turn-off if the people you want to convince are not familiar with your use of words.

Another thing to note is the length of your business plan. It would be best if you made it as brief as possible.

You hardly see investors or agencies that read through an extremely long document. In that case, if your first few pages can’t convince them, then you have lost it. The more pages you write, the higher the chances of you derailing from the essential contents.

To ensure your business plan has a high conversion rate, you need to dispose of every unnecessary information. For example, if you have a strategy that you are not sure of, it would be best to leave it out of the plan.

5. Make an Outline and Follow Through

A perfect business plan must have touched every part needed to convince the audience. Business owners get easily tempted to concentrate more on their products than on other sections. Doing this can be detrimental to the efficiency of the business plan.

For example, imagine you talking about a product but omitting or providing very little information about the target audience. You will leave your clients confused.

To ensure that your business plan communicates your full business model to readers, you have to input all the necessary information in it. One of the best ways to achieve this is to design a structure and stick to it.

This structure is what guides you throughout the writing. To make your work easier, you can assign an estimated word count or page limit to every section to avoid making it too bulky for easy reading. As a guide, the necessary things your business plan must contain are:

• Table of contents
• Introduction
• Product or service description
• Target audience
• Market size
• Competition analysis
• Financial projections

Some specific businesses can include some other essential sections, but these are the key sections that must be in every business plan.

6. Ask a Professional to Proofread

When writing a business plan, you must tie all loose ends to get a perfect result. When you are done with writing, call a professional to go through the document for you. You are bound to make mistakes, and the way to correct them is to get external help.

You should get a professional in your field who can relate to every section of your business plan. It would be easier for the professional to notice the inner flaws in the document than an editor with no knowledge of your business.

In addition to getting a professional to proofread, get an editor to proofread and edit your document. The editor will help you identify grammatical errors, spelling mistakes, and inappropriate writing styles.

Writing a business plan can be daunting, but you can surmount that obstacle and get the best out of it with these tips.

Business Plan Examples and Templates That’ll Save You Tons of Time

1. hubspot's one-page business plan.

The one-page business plan template by HubSpot is the perfect guide for businesses of any size, irrespective of their business strategy. Although the template is condensed into a page, your final business plan should not be a page long! The template is designed to ask helpful questions that can help you develop your business plan.

Hubspot’s one-page business plan template is divided into nine fields:

• Business opportunity
• Company description
• Industry analysis
• Target market
• Implementation timeline
• Marketing plan
• Financial summary
• Funding required

2. Bplan’s Free Business Plan Template

Bplans' free business plan template is investor-approved. It is a rich template used by prestigious educational institutions such as Babson College and Princeton University to teach entrepreneurs how to create a business plan.

The template has six sections: the executive summary, opportunity, execution, company, financial plan, and appendix. There is a step-by-step guide for writing every little detail in the business plan. Follow the instructions each step of the way and you will create a business plan that impresses investors or lenders easily.

3. HubSpot's Downloadable Business Plan Template

HubSpot’s downloadable business plan template is a more comprehensive option compared to the one-page business template by HubSpot. This free and downloadable business plan template is designed for entrepreneurs.

The template is a comprehensive guide and checklist for business owners just starting their businesses. It tells you everything you need to fill in each section of the business plan and how to do it.

There are nine sections in this business plan template: an executive summary, company and business description, product and services line, market analysis, marketing plan, sales plan, legal notes, financial considerations, and appendix.

4. Business Plan by My Own Business Institute

My Own Business Institute (MOBI) which is a part of Santa Clara University's Center for Innovation and Entrepreneurship offers a free business plan template. You can either copy the free business template from the link provided above or download it as a Word document.

The comprehensive template consists of a whopping 15 sections.

• The Business Profile
• The Vision and the People
• Home-Based Business and Freelance Business Opportunities
• Organization
• Licenses and Permits
• Business Insurance
• Communication Tools
• Acquisitions
• Location and Leasing
• Accounting and Cash Flow
• Opening and Marketing
• Managing Employees
• Expanding and Handling Problems

There are lots of helpful tips on how to fill each section in the free business plan template by MOBI.

5. Score's Business Plan Template for Startups

Score is an American nonprofit organization that helps entrepreneurs build successful companies. This business plan template for startups by Score is available for free download. The business plan template asks a whooping 150 generic questions that help entrepreneurs from different fields to set up the perfect business plan.

The business plan template for startups contains clear instructions and worksheets, all you have to do is answer the questions and fill the worksheets.

There are nine sections in the business plan template: executive summary, company description, products and services, marketing plan, operational plan, management and organization, startup expenses and capitalization, financial plan, and appendices.

The ‘refining the plan’ resource contains instructions that help you modify your business plan to suit your specific needs, industry, and target audience. After you have completed Score’s business plan template, you can work with a SCORE mentor for expert advice in business planning.

6. Minimalist Architecture Business Plan Template by Venngage

The minimalist architecture business plan template is a simple template by Venngage that you can customize to suit your business needs .

There are five sections in the template: an executive summary, statement of problem, approach and methodology, qualifications, and schedule and benchmark. The business plan template has instructions that guide users on what to fill in each section.

7. Small Business Administration Free Business Plan Template

The Small Business Administration (SBA) offers two free business plan templates, filled with practical real-life examples that you can model to create your business plan. Both free business plan templates are written by fictional business owners: Rebecca who owns a consulting firm, and Andrew who owns a toy company.

There are five sections in the two SBA’s free business plan templates.

• Executive Summary
• Company Description
• Service Line
• Marketing and Sales

8. The $100 Startup's One-Page Business Plan

The one-page business plan by the $100 startup is a simple business plan template for entrepreneurs who do not want to create a long and complicated plan . You can include more details in the appendices for funders who want more information beyond what you can put in the one-page business plan.

There are five sections in the one-page business plan such as overview, ka-ching, hustling, success, and obstacles or challenges or open questions. You can answer all the questions using one or two sentences.

9. PandaDoc’s Free Business Plan Template

The free business plan template by PandaDoc is a comprehensive 15-page document that describes the information you should include in every section.

There are 11 sections in PandaDoc’s free business plan template.

• Executive summary
• Business description
• Products and services
• Operations plan
• Management organization
• Financial plan
• Conclusion / Call to action
• Confidentiality statement

You have to sign up for its 14-day free trial to access the template. You will find different business plan templates on PandaDoc once you sign up (including templates for general businesses and specific businesses such as bakeries, startups, restaurants, salons, hotels, and coffee shops)

PandaDoc allows you to customize its business plan templates to fit the needs of your business. After editing the template, you can send it to interested parties and track opens and views through PandaDoc.

10. Invoiceberry Templates for Word, Open Office, Excel, or PPT

InvoiceBerry is a U.K based online invoicing and tracking platform that offers free business plan templates in .docx, .odt, .xlsx, and .pptx formats for freelancers and small businesses.

Before you can download the free business plan template, it will ask you to give it your email address. After you complete the little task, it will send the download link to your inbox for you to download. It also provides a business plan checklist in .xlsx file format that ensures you add the right information to the business plan.

Alternatives to the Traditional Business Plan

A business plan is very important in mapping out how one expects their business to grow over a set number of years, particularly when they need external investment in their business. However, many investors do not have the time to watch you present your business plan. It is a long and boring read.

Luckily, there are three alternatives to the traditional business plan (the Business Model Canvas, Lean Canvas, and Startup Pitch Deck). These alternatives are less laborious and easier and quicker to present to investors.

Business Model Canvas (BMC)

The business model canvas is a business tool used to present all the important components of setting up a business, such as customers, route to market, value proposition, and finance in a single sheet. It provides a very focused blueprint that defines your business initially which you can later expand on if needed.

The sheet is divided mainly into company, industry, and consumer models that are interconnected in how they find problems and proffer solutions.

Segments of the Business Model Canvas

The business model canvas was developed by founder Alexander Osterwalder to answer important business questions. It contains nine segments.

• Key Partners: Who will be occupying important executive positions in your business? What do they bring to the table? Will there be a third party involved with the company?
• Key Activities: What important activities will production entail? What activities will be carried out to ensure the smooth running of the company?
• The Product’s Value Propositions: What does your product do? How will it be different from other products?
• Customer Segments: What demography of consumers are you targeting? What are the habits of these consumers? Who are the MVPs of your target consumers?
• Customer Relationships: How will the team support and work with its customer base? How do you intend to build and maintain trust with the customer?
• Key Resources: What type of personnel and tools will be needed? What size of the budget will they need access to?
• Channels: How do you plan to create awareness of your products? How do you intend to transport your product to the customer?
• Cost Structure: What is the estimated cost of production? How much will distribution cost?
• Revenue Streams: For what value are customers willing to pay? How do they prefer to pay for the product? Are there any external revenues attached apart from the main source? How do the revenue streams contribute to the overall revenue?

Lean Canvas

The lean canvas is a problem-oriented alternative to the standard business model canvas. It was proposed by Ash Maurya, creator of Lean Stack as a development of the business model generation. It uses a more problem-focused approach and it majorly targets entrepreneurs and startup businesses.

Lean Canvas uses the same 9 blocks concept as the business model canvas, however, they have been modified slightly to suit the needs and purpose of a small startup. The key partners, key activities, customer relationships, and key resources are replaced by new segments which are:

• Problem: Simple and straightforward number of problems you have identified, ideally three.
• Solution: The solutions to each problem.
• Unfair Advantage: Something you possess that can't be easily bought or replicated.
• Key Metrics: Important numbers that will tell how your business is doing.

Startup Pitch Deck

While the business model canvas compresses into a factual sheet, startup pitch decks expand flamboyantly.

Pitch decks, through slides, convey your business plan, often through graphs and images used to emphasize estimations and observations in your presentation. Entrepreneurs often use pitch decks to fully convince their target audience of their plans before discussing funding arrangements.

Considering the likelihood of it being used in a small time frame, a good startup pitch deck should ideally contain 20 slides or less to have enough time to answer questions from the audience.

Unlike the standard and lean business model canvases, a pitch deck doesn't have a set template on how to present your business plan but there are still important components to it. These components often mirror those of the business model canvas except that they are in slide form and contain more details.

Using Airbnb (one of the most successful start-ups in recent history) for reference, the important components of a good slide are listed below.

• Cover/Introduction Slide: Here, you should include your company's name and mission statement. Your mission statement should be a very catchy tagline. Also, include personal information and contact details to provide an easy link for potential investors.
• Problem Slide: This slide requires you to create a connection with the audience or the investor that you are pitching. For example in their pitch, Airbnb summarized the most important problems it would solve in three brief points – pricing of hotels, disconnection from city culture, and connection problems for local bookings.
• Solution Slide: This slide includes your core value proposition. List simple and direct solutions to the problems you have mentioned
• Customer Analysis: Here you will provide information on the customers you will be offering your service to. The identity of your customers plays an important part in fundraising as well as the long-run viability of the business.
• Market Validation: Use competitive analysis to show numbers that prove the presence of a market for your product, industry behavior in the present and the long run, as well as the percentage of the market you aim to attract. It shows that you understand your competitors and customers and convinces investors of the opportunities presented in the market.
• Business Model: Your business model is the hook of your presentation. It may vary in complexity but it should generally include a pricing system informed by your market analysis. The goal of the slide is to confirm your business model is easy to implement.
• Marketing Strategy: This slide should summarize a few customer acquisition methods that you plan to use to grow the business.
• Competitive Advantage: What this slide will do is provide information on what will set you apart and make you a more attractive option to customers. It could be the possession of technology that is not widely known in the market.
• Team Slide: Here you will give a brief description of your team. Include your key management personnel here and their specific roles in the company. Include their educational background, job history, and skillsets. Also, talk about their accomplishments in their careers so far to build investors' confidence in members of your team.
• Traction Slide: This validates the company’s business model by showing growth through early sales and support. The slide aims to reduce any lingering fears in potential investors by showing realistic periodic milestones and profit margins. It can include current sales, growth, valuable customers, pre-orders, or data from surveys outlining current consumer interest.
• Funding Slide: This slide is popularly referred to as ‘the ask'. Here you will include important details like how much is needed to get your business off the ground and how the funding will be spent to help the company reach its goals.
• Appendix Slides: Your pitch deck appendix should always be included alongside a standard pitch presentation. It consists of additional slides you could not show in the pitch deck but you need to complement your presentation.

It is important to support your calculations with pictorial renditions. Infographics, such as pie charts or bar graphs, will be more effective in presenting the information than just listing numbers. For example, a six-month graph that shows rising profit margins will easily look more impressive than merely writing it.

Lastly, since a pitch deck is primarily used to secure meetings and you may be sharing your pitch with several investors, it is advisable to keep a separate public version that doesn't include financials. Only disclose the one with projections once you have secured a link with an investor.

Advantages of the Business Model Canvas, Lean Canvas, and Startup Pitch Deck over the Traditional Business Plan

• Time-Saving: Writing a detailed traditional business plan could take weeks or months. On the other hand, all three alternatives can be done in a few days or even one night of brainstorming if you have a comprehensive understanding of your business.
• Easier to Understand: Since the information presented is almost entirely factual, it puts focus on what is most important in running the business. They cut away the excess pages of fillers in a traditional business plan and allow investors to see what is driving the business and what is getting in the way.
• Easy to Update: Businesses typically present their business plans to many potential investors before they secure funding. What this means is that you may regularly have to amend your presentation to update statistics or adjust to audience-specific needs. For a traditional business plan, this could mean rewriting a whole section of your plan. For the three alternatives, updating is much easier because they are not voluminous.
• Guide for a More In-depth Business Plan: All three alternatives have the added benefit of being able to double as a sketch of your business plan if the need to create one arises in the future.

Business Plan FAQ

Business plans are important for any entrepreneur who is looking for a framework to run their company over some time or seeking external support. Although they are essential for new businesses, every company should ideally have a business plan to track their growth from time to time.  They can be used by startups seeking investments or loans to convey their business ideas or an employee to convince his boss of the feasibility of starting a new project. They can also be used by companies seeking to recruit high-profile employee targets into key positions or trying to secure partnerships with other firms.

Business plans often vary depending on your target audience, the scope, and the goals for the plan. Startup plans are the most common among the different types of business plans.  A start-up plan is used by a new business to present all the necessary information to help get the business up and running. They are usually used by entrepreneurs who are seeking funding from investors or bank loans. The established company alternative to a start-up plan is a feasibility plan. A feasibility plan is often used by an established company looking for new business opportunities. They are used to show the upsides of creating a new product for a consumer base. Because the audience is usually company people, it requires less company analysis. The third type of business plan is the lean business plan. A lean business plan is a brief, straight-to-the-point breakdown of your ideas and analysis for your business. It does not contain details of your proposal and can be written on one page. Finally, you have the what-if plan. As it implies, a what-if plan is a preparation for the worst-case scenario. You must always be prepared for the possibility of your original plan being rejected. A good what-if plan will serve as a good plan B to the original.

A good business plan has 10 key components. They include an executive plan, product analysis, desired customer base, company analysis, industry analysis, marketing strategy, sales strategy, financial projection, funding, and appendix. Executive Plan Your business should begin with your executive plan. An executive plan will provide early insight into what you are planning to achieve with your business. It should include your mission statement and highlight some of the important points which you will explain later. Product Analysis The next component of your business plan is your product analysis. A key part of this section is explaining the type of item or service you are going to offer as well as the market problems your product will solve. Desired Consumer Base Your product analysis should be supplemented with a detailed breakdown of your desired consumer base. Investors are always interested in knowing the economic power of your market as well as potential MVP customers. Company Analysis The next component of your business plan is your company analysis. Here, you explain how you want to run your business. It will include your operational strategy, an insight into the workforce needed to keep the company running, and important executive positions. It will also provide a calculation of expected operational costs.  Industry Analysis A good business plan should also contain well laid out industry analysis. It is important to convince potential investors you know the companies you will be competing with, as well as your plans to gain an edge on the competition. Marketing Strategy Your business plan should also include your marketing strategy. This is how you intend to spread awareness of your product. It should include a detailed explanation of the company brand as well as your advertising methods. Sales Strategy Your sales strategy comes after the market strategy. Here you give an overview of your company's pricing strategy and how you aim to maximize profits. You can also explain how your prices will adapt to market behaviors. Financial Projection The financial projection is the next component of your business plan. It explains your company's expected running cost and revenue earned during the tenure of the business plan. Financial projection gives a clear idea of how your company will develop in the future. Funding The next component of your business plan is funding. You have to detail how much external investment you need to get your business idea off the ground here. Appendix The last component of your plan is the appendix. This is where you put licenses, graphs, or key information that does not fit in any of the other components.

The business model canvas is a business management tool used to quickly define your business idea and model. It is often used when investors need you to pitch your business idea during a brief window.

A pitch deck is similar to a business model canvas except that it makes use of slides in its presentation. A pitch is not primarily used to secure funding, rather its main purpose is to entice potential investors by selling a very optimistic outlook on the business.

Business plan competitions help you evaluate the strength of your business plan. By participating in business plan competitions, you are improving your experience. The experience provides you with a degree of validation while practicing important skills. The main motivation for entering into the competitions is often to secure funding by finishing in podium positions. There is also the chance that you may catch the eye of a casual observer outside of the competition. These competitions also provide good networking opportunities. You could meet mentors who will take a keen interest in guiding you in your business journey. You also have the opportunity to meet other entrepreneurs whose ideas can complement yours.

Exlore Further

• 12 Key Elements of a Business Plan (Top Components Explained)
• 13 Sources of Business Finance For Companies & Sole Traders
• 5 Common Types of Business Structures (+ Pros & Cons)
• How to Buy a Business in 8 Steps (+ Due Diligence Checklist)

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Martin luenendonk.

Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.

This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.

How to Write a Business Proposal

Briana Morgaine

8 min. read

Updated March 18, 2024

A business proposal can make or break your chances of securing a new client. Write a great one, and you’ll likely snag their business.

Write a poor one, and you might lose out—even if you’re offering the best service out there. So, how do you write a business proposal? What is the proper format? What do you need to include?

While it all depends on your industry, and whether or not you’re offering a product or service, writing a business proposal is pretty straightforward. We’ll answer all those questions and more throughout the course of this guide. 

• What to expect with this business proposal guide

Whether you’re starting fresh or need to look at a specific section, here’s what we’ll be covering in this guide. 

• What a business proposal is
• The differences between a business proposal and a business plan
• The format of a business proposal
• How long to make your business proposal
• How to write a business proposal

You can download a  free business proposal template here  to start writing up your own proposal as you work through this article. By the end, you’ll be prepared to develop a well-written business proposal that can explain your business clearly and win more clients. Let’s get started.

• What is a business proposal?

A business proposal is a document you’d send to a prospective client, outlining the service you’re offering, and explaining why you’re the best person for the job. 

It’s a  pitch by a business or individual  to complete a specific job or project, to supply a service, or, in some instances, to be the vendor of a certain product.

What are the different types of business proposals?

A business proposal can be either solicited or unsolicited. With a solicited proposal, the prospective client will put out a request for proposals; with an unsolicited business proposal, you are approaching a client in hopes of attracting their business, even though they did not explicitly request a proposal.  

While both are commonplace, a solicited proposal is an easier sell, as your prospective client has already decided that they want to make a purchase or use a service, and they’re evaluating possible vendors or businesses.

With a solicited proposal, your prospective client might have issued an RFP, or “request for proposal.” This is exactly what it sounds like—they want you to send over a business proposal so they can take a look at it.

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• Differences between a business proposal and a business plan

A business proposal is not the same as a  business plan . This is the most common misconception, but while there are areas of overlap (like your  executive summary ) the two are different.

That being said, you can certainly pull information from your business plan while writing your business proposal—in fact, that’s a great way to start.

But don’t confuse the two; they are distinct and separate. In short, a business plan represents the cohesive strategy of how your business operates and makes money. A business proposal is an official pitch to clients selling your products or services. 

A business proposal outlines a particular product or service offered by an established business to a prospective client.

You’re trying to sell your prospective client on your product or service, not on your business itself. You’re not after funding, as you are with a business plan, you’re trying to make a sale.

A business proposal is also not an estimate; although you’ll likely touch on costs and pricing in your business proposal, an estimate is much more informal and just a quick look at the costs, not the whole picture.

• What goes into a business proposal?

Your business proposal should address the three Ps:

• Problem statement: What your customer’s current problem is
• Proposed solution: How your business solves that problem better than other solutions
• Pricing: How much that solution costs compared to alternatives

If you’re stuck on how to start, maybe try brainstorming first; start with these three points, and you’ll have a rough, bare-bones version of your business proposal.

Once you’ve done that if you’re ready to go more in-depth, here is a step-by-step look at how to format your business proposal.

Your business proposal should start with a title page, which should include your name, the name of your company, the name of the person to whom you’re submitting your proposal, and the date submitted.

Table of contents

Depending on how long your business proposal is, a table of contents is a nice touch. Include it after your title page, and before you launch into any details. If you’re delivering it as a PDF, including anchor links down to each section, so it’s easy to get to specific areas. 

Executive summary

Introduce your proposal with a great executive summary, one that really sells your business and the products or services you provide—it’s about why you’re the right company for the job. You can draw from your business plan’s executive summary here, too.

Statement of problem, issue, or job at hand

Following your executive summary, go on to discuss the problem that the client is currently facing. Think of “problem” or “issue” loosely; after all, their main problem may just be finding the right person to complete their project. But be sure you understand why they want the product or service they’re seeking. If the proposal is for developing a brand new website, make sure you understand what they want to get out of the site—better sales, more content management flexibility. 

This is the place to show your new client that you  understand their needs , and fully grasp the issue they are trying to solve. Take this opportunity to restate the issue they are facing in your own words so that they know you understand what they are looking for.

Approach and methodology

This section shows how you plan to tackle your potential client’s problem, and the steps you’ll take to carry out your plan.

This is where you’ll get into the nitty-gritty of how you actually plan to fulfill your client’s needs. While earlier sections might have been a bit surface-level, this section of the business proposal is where you’ll go into detail about what steps you’ll take to solve their problem.

Be careful of going into  too  much detail, though—keep the jargon to a minimum. Your client should be able to follow along and get a clear sense of your plan, but you don’t want to drown them in minutiae.

Qualifications

Go ahead, brag a little—this is the section of your business proposal where you get to convince your potential client why you are the most qualified person to take on the job.

You can mention any relevant education, industry-specific training, or certifications you have, your past successful projects of a similar nature, years of experience, and so on.

Schedule and benchmarks

Be clear with your potential client: How long will your proposed project take?

Making sure you and your prospective client are on the same page from the outset will help make sure that the relationship stays positive for both of you, and that you don’t set your client up with unrealistic expectations.

While you might be tempted to underestimate how long it will take you to complete the project, don’t. Don’t promise what you can’t deliver!

If you’re offering a product, this section might not be applicable to you, so feel free to omit it. The business proposal format is flexible, so tailor it to suit your business and industry.

Cost, payment, and any legal matters

Here is where you get down to brass tacks and state the cost, and payment schedule if necessary.

How you structure this section will largely depend on the particular project or service you are offering. A section entitled “Fee Summary” may be sufficient if one-time payment is required; otherwise, a “Fee Schedule” list or pricing table might be more appropriate. Always refer back to the client’s RFP whenever possible, to make sure you’re supplying them with all the information they need to help make their decision.

If there are any legal issues to attend to, such as permits or licensing, include this information here. Feel free to add a section entirely devoted to handling the legal side of the project if need be.

This is your final sell—don’t be afraid to detail for your prospective client all they have to gain by choosing you to complete the project.

Impress upon your clients why you are the best choice, and all the ways in which their business will benefit from choosing you and your business as their solution.

• How long should a business proposal be?

When it comes to the format of a business proposal, this is the million-dollar question without an answer. Remember in school, when you’d ask your teacher how long an essay should be, and they’d reply, “as long as it takes to answer the question.”

The same applies to your business proposal. It ultimately depends on your industry, the scope of the project, and the client’s specifications in terms of detail and elements included.

That being said, the tighter your initial proposal can be and the more directly you can make your point, the easier it will be to pitch it to clients. Start by following the business proposal format above as a guide, and you’ll be well on your way to creating a winning business proposal—and securing new clients.

Bri Morgaine is a seasoned content marketing leader with a decade of experience in copy editing, social media operations, and content strategy— having honed her skills at industry giants like Palo Alto Software and Andreessen Horowitz.

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How to Write a Business Proposal [Steps, Tips, & Templates]

You need to send a business proposal, and you want it to close. But how can you improve your chances?

Every year, we analyze the proposals sent with our software to discover what makes closing more likely. We used this research to craft this very guide .

To help you write better business proposals, we’ve curated the essential proposal format, a step-by-step process, plenty of templates to help you get started, and strategies for following up.

From images to esignatures, keep reading for data-backed insights into the most successful proposals.

What’s in this guide:

• What is a business proposal?
• Basic proposal format
• What to prepare before writing a business proposal
• How to write a business proposal in 7 steps
• 8 business proposal templates
• 5 ideas to take your business proposal to the next level
• What to do after you send a business proposal
• Using analytics for business proposal insights

A business proposal is sent by a salesperson or account manager to a prospective client in order to pitch a product or service. A great proposal should include an executive summary or cover letter, details on the project timelines and deliverables, what makes the company the right choice for the job, and pricing and payment details.

Business proposals are typically sent from one business to another for all sorts of different services, such as enterprise software subscriptions, interior design, accounting, marketing, event catering, etc.

The purpose of a business proposal is to:

Sell your product or service with details, client results, testimonials, etc.

Clarify what is and isn’t included in the proposal to accurately manage expectations

Layout terms and conditions to protect both parties

Lock in the deal right away with esignatures built into the proposal

Large corporations and government agencies will typically send out a request for proposal to competing companies and then choose the best (or cheapest) one.

A business proposal is very different from a business plan, because it is typically written to clarify a paid engagement between two companies. This might be a short project or a long contract. A business plan, on the other hand, is typically an internal document crafted to chart a businesses path forward towards goals, such as market expansion, revenue growth, new product lines, etc.

Types of business proposals

There are many different types of business proposals. They are typically broken down by industry.

Here are some common types of business proposals, by industry :

Real estate and construction

Professional services

Proposals can also be categorized based on the type of offering :

One-off projects

Recurring subscription

Ongoing service

Package options

Later on in this guide, we include a variety of proposal templates. Depending on what you selling, you might find it easier to begin with a template designed for your industry or for the type of offer you’re selling (such as a one-off project). So be sure to peruse through the previews of each proposal so that you can see which template will save you the most time.

Business proposal example

An excellent business proposal addresses the client’s pain points and showcases the proposed solution.

Here’s an example business proposal to inspire you. The accounting proposal kicks things off with an attractive cover page.

All in all, it includes the cover page, an executive summary letter, an about us section, team photos and bios, a project summary, a breakdown of the proposed services, a pricing section, onboarding steps, and a contract with esignatures.

The services breakdown offers a great example of how to categorize your services and provide hourly estimates.

After researching over 1 million proposals, we found that winning proposals are most likely to include all of the following.

Here’s the idea proposal structure :

1. Cover page

The cover page, also called a title page, should be kept simple. It prominently features a photograph or graphic design that is on-brand, you can use graphic design templates as a starting point. It also usually includes the project name, or the client name, as well as your company name. Some companies might include contact information on the cover page, while others will save that for a separate page.

Check out this cover page , which is bright, bold, and on-brand.

2. Executive summary

The executive summary is essentially your pitch.

It’s your shot at capturing the client’s attention and showing them that you have an approach that will exceed their expectations.

It’s typically written in paragraph form (1 to 3 paragraphs) but can also include a bulleted list for a more skimmable style.

Make sure that your executive summary includes:

A quick description of the client’s problem or starting point

How your company will serve the client and why you’re suggesting this unique approach

Why your company is the best choice (average results, unique selling propositions, differentiators, awards, etc.)

This content marketing proposal offers an excellent example of an executive summary. Though in this proposal, the section is instead titled “Focus and Objectives.” What makes it great is that it’s on brand, goal-oriented, personable, and skimmable.

3. Approach or solution

In this section, you write about your process and why you approach things the way you do. For example, a Facebook marketing agency might say that they believe that creative work is essential to advertising success, and that’s why they devote 90% of their time to developing videos, images, and copy.

Some companies will craft a custom approach section for each client, while others will re-use the section again and again. It all comes down to the number of services you offer and how much or how little you customize your work.

In corporate training, it’s essential to clarify your approach so the client knows why your system will be effective. In this training template example , their process shows the essential steps in their proprietary approach.

4. About the company

This is your chance to brag. In your company bio, be sure to mention all of the important things that set your company apart. That might include your management style, the talent you have on your team, your average client retention rate or contract length, and any accolades.

With their location, awards, and team structure, this About Us page is an excellent example of how to sell yourself with authority.

5. Deliverables

Use the deliverables section to summarize exactly what the client will receive from the engagement.

A TikTok ads management firm might include 15 ad creatives per month in their deliverables, for example. While an accounting firm might list the reports that will be sent weekly or monthly, along with the bookkeeping service.

In a construction project, on the other hand, the company might showcase the different milestones that the project will hit, and when these milestones are expected to be completed.

In this proposal , the Deliverables section is titled “Scope of Services,” and it includes a list of all of the services that the prospective client will receive. Deliverables are mentioned within the scope, including a logo, brand colors, business cards, and brand guidelines.

6. Social proof or work samples

No matter what you sell, prospective clients will want to know that you have the right experience for the job.

Social proof can come in the form of written testimonials and case studies, video testimonials and case studies, portfolio photographs, G2 and Capterra badges, and rating averages from Google, Trustpilot, or other review sites.

For an architecture firm, construction company, or website designer, work examples can prove more powerful than testimonials. Prospects want to see what you can do. This architecture proposal showcases the company’s work on a rehabilitation project.

The pricing section is of course the one that your clients will read again and again and deliberate over. That’s why it’s so important to make it clear, simple, and well-formatted.

Tables are a great way to showcase what’s included in the total project cost or to provide package options.

Similar to interior design and construction services, event planning typically includes both hourly costs and hard costs (for products and venues). Here’s an example of an event management proposal that includes a breakdown of the hourly work and the hard costs.

8. Terms and conditions

When you use modern proposal software , you can build a contract right into your proposal, eliminating the need for separate contract software.

Your proposal should include legal jargon that can protect both you and your client. You might have a statement of work and a master service agreement or terms and conditions.

In this website design proposal , there are 6 pages in total for the contract section. The potential client can easily click around to view all of these pages and share the proposal with their legal team if needed.

For proposals that are longer than 8 pages, it’s wise to include a table of contents. If you use Proposify as your proposal software, then every proposal will automatically have the table of contents on the left-hand side, making it easier for the potential client to click around and review important sections multiple times.

A lot goes into writing a proposal. Before you can get to the writing part, you need to prepare.

This means talking with the client to figure out their needs, using your experience to pitch the best project, and talking with colleagues who will be involved in the project to see if they agree on the services you plan to propose.

You might also need to talk with your legal department and ask them for a contract template that you can include at the end of the proposal so that when the client signs off, it's legally binding.

Everything you need to prepare to write a business proposal:

An understanding of the client's needs

Your determination of the best approach

Details that will get the client to say yes

Agreement with internal colleagues

The pricing options you want to offer

Knowledge of who needs to sign off

Legal contract language or templates

To be a good writer , you must be concise, specific, and detailed. It really is that simple. The more examples and details you provide, the better.

That said, it does help to follow a process so that you can be sure you’re providing everything that the decision-makers expect and more.

Here are the 7 essential steps for writing a business proposal:

Step 1. Determine the client’s needs

The first step is to figure out what your client needs.

As mentioned in our section on preparation above, you’ll need to speak with your client. If this is a new client, it might take two to five sales calls to collect all of the information you need. For an existing client, you can probably figure out what to include in their renewal proposal with just one call.

But of course, asking your client what they need isn’t enough. You need to use your expertise to choose the best solution for them, even if it’s not what they want or expect.

Step 2. Kick off your proposal with a template

Once you’ve done your due diligence, the next step is to choose a proposal template so you’ll save time on both writing and designing.

You can use a template that matches your specific business or click around to find one with all the sections and a design style you like. Even if it’s not created for your specific industry, it’ll be easy to update the content to match your service or product.

Check out our full library of proposal templates.

Step 3. Write the evergreen messaging about your company

It’s always smart to tackle writing section by section. This way, you don’t get overwhelmed.

We recommend starting with the sections that are relevant to your business and that can be reused again and again. Your value propositions should guide the content.

Tackle these sections:

The cover page

The approach section

The about us page and team bios

The social proof or portfolio pieces

By starting off with what makes your company special, you’ll break the ice during your writing process and also create your own custom template that you can use for further proposal writing.

Step 4. Craft the meat of the proposal (executive summary, approach, deliverables, etc.)

By now, you should have chosen a template and written your core company messaging.

Now it’s time to write the meat of the proposal.

In this step, you’ll be catering your proposal to the new client. A startup will require a different proposal than a small business, and the same goes for an enterprise.

Here are some of the things you might need to write:

The unique methodology or approach you’ll offer this client (if it changes per client)

The problem statement or executive summary

The client’s goals

The scope of work

The project process and timelines

The deliverables

You can fill in your template’s sections and take a peek at other templates to get inspiration and see if there are any additional sections or details you should add.

Step 5. Add in the project total or pricing options

Next, you should calculate your fees.

Depending on your business, you might add up flat rates, product costs, or hourly estimates to come up with a fixed project total. Or, you might present a price range that the project will likely fall between (making it clear that additional hourly costs could arise. Or perhaps, you’ll offer a pricing table with different options to choose from.

Step 6. Add legal terms and conditions and esignatures

When you use proposal software (instead of just a PDF or Google slides), you can add a contract directly to your proposal.

If you already have approved contract language from your legal department, you can simply add it to the contract section of your proposal in Proposify. If not, you’ll need to chat with your legal team or business lawyer to ensure you’re adding all the right stipulations.

Proposals with esignatures close 35% faster and are 426% more likely to be accepted. So be sure to assign an esignature both to yourself and your client.

Step 7. Finalize the design and review all of the content before sending

Now it’s time to review and finalize your proposal. Check for errors, places in the template you forgot to fill out, and wording that can be improved.

Make sure the graphic design is on point too. Switch out the template with your own brand colors and fonts. You can have a designer on your team handle this, or handle style customization yourself (with no design experience necessary).

The best way to write a business proposal? With a template of course.

We’ve rounded up 10 of the best templates for different types of businesses. And for each, we show you the proposal sections included to help you pick the right one for you.

Keep in mind that with any of these proposals, you can add and remove sections and also customize any page with text, headlines, images, videos, fee tables, and more.

1. Business consulting proposal template

This consulting proposal template can be used by any type of consulting firm.

Proposal sections :

Project Summary

Project Activities

Your Investment

2. Advertising Proposal Template

With this advertising proposal template, you can showcase your digital or traditional advertising services. The template includes TV, web, radio, and magazine, but you can update it to reflect your pitch.

Cover Letter

Who Are We?

Testimonials

Your Advertising Media Mix

3. Branding Proposal Template

Perfect for branding consultants, logo designers, and messaging strategists, this branding proposal template includes the project scope and timeline to help you clarify your process to potential clients.

Overview & Goals

Scope of Services

Sample Case Study

4. Commercial Lease Proposal Template

This commercial lease proposal template can be used for leasing office buildings, manufacturing facilities, warehouses, and event spaces.

Our Process

Meet Our Team

Terms and Conditions

5. Construction Bid Template

Use this construction bid template for new construction projects or renovations. It includes a detailed cost estimate table and a required deposit.

Cost Estimate

6. Catering Proposal Template

This catering proposal template is perfect for corporate projects but can work for weddings or personal events as well. You can use it for conferences, luncheons, retreats, or any other type of event.

Introduction

Event Details

7. Corporate Photography Proposal Template

With a beautifully designed portfolio section and a very detailed pricing table and print options, this is the perfect template for corporate photography . It also includes tips for success, so clients know how to make the most of their photoshoot time.

What We Offer

Photography Packages

Tips for Success

8. Financial Services Proposal Template

You can use this financial services proposal template to pitch financial services like risk management, budgeting, and investment management.

Services and Fees

Looking to kick up your proposals a notch?

Try one of these smart ideas:

1. Make your pricing dynamic

Dynamic pricing means that clients can choose what they want and that will automatically change the project total that they sign off on.

Proposals with options and add-ons have a 35.8% higher closing rate . Try giving package options and including add-ons such as ancillary services or maintenance work.

2. Create graphic designs for timelines and processes

Winning business proposals often include informative visuals to help clients understand your process at a glance.

You could create a graphic for project phases, milestones, or big deliverables.

3. Get creative with your social proof

Client testimonials are an easy starting point when it comes to social proof.

But can you do better? Can you get more creative and stand out from other consulting firms?

Here are some ways to improve your social proof game:

Include visuals for your average ratings (for example 4 and a half stars filled in).

Add any badges or graphics available from review sites like G2 and Trustpilot.

Film professional case study videos and embed them in your proposal.

Create a screenshare video where you talk through your digital portfolio samples.

Include an informal video testimonial from your client.

Add a video showing your team at work (ie, on the job site, running a workshop, speaking, etc.)

Write mini case studies with before and after transformations, result data, etc.

4. Have an “excludes” section

Is there something that is definitely not included in your proposal? Do clients often assume it’s included or do they get confused?

If so, try adding a section that describes everything that isn’t included in the proposal. You could mention that you don’t offer these services, or state that they’re available at an additional fee (if you want to upsell them).

5. Include videos for introductions or complex concepts

When you add a video to your proposal, you increase its chances of closing by 41% .

Here are some video ideas to try:

Informal intros filmed with Loom

Professional videos of your team at work

Case study videos

Quick descriptions of complex deliverables, methodologies, etc.

You sent the proposal. Now what?

Here’s what to do next.

Sign it yourself

Make sure you sign the proposal right away (before your client opens it). This offers a more professional presentation and makes it more likely that your new client will add their signature too.

Be prepared to follow up

Project proposals don’t always close all by themselves. As any good salesperson knows, follow-up is essential.

With Proposify, you can set up automated reminders. When we analyzed over 1 million proposals sent with our software, we found that proposals with pre-scheduled reminders have a 35% higher closing rate than those without.

Make adjustments to the proposal to close the deal

It’s okay to make changes. In fact, proposals that get revised are actually more likely to close than ones that don’t. When a client asks for revisions, it means they’re interested.

You might need to adjust your proposal document for its scope, deliverables, timeframe, or payment schedules.

Save different proposal templates

After you’ve created one proposal, you should save it as a template and give it a name. You might also want to duplicate it and adjust it to create a new proposal template. For example, if you offer SEO services , you might want to have one proposal for an SEO audit and another one for your monthly SEO retainer.

Create email templates

You can also create and store email templates that will save you time in the long run.

Try creating different templates for sending, reminders, and thank yous. If you offer different types of services, you can craft a unique sending template for each one.

Get feedback from clients on both won and lost proposals

One of the best ways to improve is to take feedback. Whether you win or lose the proposal, find out why.

Here are some tips on how to do this:

Won - When you win a proposal, you might ask the client why they decided to move forward with you on their first strategy call. Or, have their account manager ask the same question and pass the info to you.

Lost - If a client doesn’t sign the proposal after 3 weeks, you can send a quick email with something like, “Just looking for some feedback. Can you let me know why you decided not to move forward? Thanks.”

In today’s digital world, a business proposal should be more than a formal document.

When you use the right tool to create and send your proposal, you should be able to gather important insights and trends.

Viewing metrics for a specific client

With Proposify, you can see the activity for every proposal. Know when clients are opening and viewing proposals so you can follow up in a way that matches their activity.

Average viewing metrics

Proposify also offers average viewing metrics that help you benchmark your views:

Total viewed

Average time to view

Average length of viewing

Average views per proposal

This is great for gauging how a new client compares with past activity.

Average closing metrics

You can also check your average closing rate and track it over time.

Check these closing metrics:

Closing rate

Try setting goals for improving your closing rate and then check your progress each month.

Insights by proposal type

Segment viewing and closing metrics by workspace, client name, or stream. A stream is a custom category that you can use for different service types, client industries, etc.

Growth trends

And lastly, you can check your growth trends to find out how much you’re earning in new contracts and existing contracts. This is great for seeing your past revenue growth and for forecasting.

Trends include:

New won proposals (chart)

Active income (chart)

Start with a solid understanding of your client’s goals and needs. Use a template to save time creating messaging and tables that will seal the deal. Then, try advanced techniques like dynamic pricing and videos to improve your closing rates even further.

Sign up for Proposify free for 14 days or get started with one of our templates .

Dayana Mayfield is a B2B SaaS copywriter who believes in the power of content marketing and a good smoothie. She lives in Northern California. Connect with her on LinkedIn here: linkedin.com/in/dayanamayfield/

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How to Write a Detailed Business Plan Step-by-Step [Free Template]

Posted july 17, 2024 by noah parsons.

Writing a business plan is one of the most valuable things you can do for your business. 

Study after study proves that business planning significantly improves your chances of success by up to 30 percent 1 . That’s because the planning process helps you think about all aspects of your business and how it will operate and grow.

Ready to write your own detailed business plan? Here’s everything you need ( along with a free template ) to create your plan.

Before you write a detailed business plan, start with a one-page business plan

Despite the benefits of business planning , it’s easy to procrastinate writing a business plan. 

Most people would prefer to work hands-on in their business rather than think about business strategy . That’s why, if you’re writing a business plan for the first time, we recommend you start with a simpler and shorter one-page business plan.

With a one-page plan, there’s no need to go into a lot of details or dive deep into financial projections—you just write down the fundamentals of your business and how it works. 

A one-page plan should cover:

• Value proposition
• Market need
• Your solution

Competition

Target market.

• Sales and marketing
• Budget and sales goals
• Team summary
• Key partners
• Funding needs

A one-page business plan is a great jumping-off point in the planning process. It’ll give you an overview of your business and help you quickly refine your ideas.

Check out our guide to writing a simple one-page business plan for detailed instructions, examples, and a free downloadable template .

When do you need a more detailed business plan?

While I will always recommend starting with the one-page plan format, there are times when a more detailed plan is necessary:

• Flesh out sections of your plan: You need to better understand how your marketing, operations, or other business functions will operate.
• Build a more detailed financial forecast: A one-page plan only includes a summary of your financial projections. A detailed plan includes a full financial forecast, including a profit and loss statement, balance sheet, and cash flow forecast to better measure performance.
• Prepare for lenders and investors: While they may not read the full plan, any investor will ask in-depth questions that you can only answer by spending time writing a detailed business plan.
• Sell your business: Use your business plan as part of your sales pitch, and show potential buyers all the details of how your business works.

How to write a detailed business plan

Let’s walk through writing a detailed business plan step-by-step and explore an example of what a finished business plan (for a local swim club Pools & Laps) built with LivePlan’s business plan builder looks like.

1. Executive summary

Yes, the executive summary comes first in your plan, but you should write it last—once you know all the details of your business plan. 

It is just a summary of your full plan, so be careful not to be too repetitive—keep it between one or two pages and highlight: 

• Your opportunity: This summarizes what your business does, what problem it solves, and who your customers are. This is where you want readers to get excited about your business
• Your team: For investors, your business’s team is often even more important than what the business is. Briefly highlight why your team is uniquely qualified to build the business and make it successful.
• Financials: What are the highlights of your financial forecast ? Summarize your sales goals, when you plan to be profitable, and how much money you need to get your business off the ground.

For existing businesses, write the executive summary for your audience—whether it’s investors, business partners, or employees. Think about what your audience will want to know, and just hit the highlights.

2. Opportunity

The “opportunity” section of your business plan is all about the products and services that you are creating. The goal is to explain why your business is exciting and the problems that it solves for people. You’ll want to cover:

Problem & solution

Every successful business solves a problem for its customers. Their products and services make people’s lives easier or fill an unmet need in the marketplace. 

In this section, you’ll want to explain the problem that you solve, whom you solve it for, and what your solution is. This is where you go in-depth to describe what you do and how you improve the lives of your customers.

In the previous section, you summarized your target customer. Now you’ll want to describe them in much greater detail. You’ll want to cover things like your target market’s demographics (age, gender, location, etc.) and psychographics (hobbies and other behaviors). 

Ideally, you can also estimate the size of your target market so you know how many potential customers you might have.

Every business has competition , so don’t leave this section out. You’ll need to explain what other companies are doing to serve your customers or if your customers have other options for solving the problem you are solving. 

Explain how your approach is different and better than your competitors, whether it’s better features, pricing, or location. Explain why a customer would come to you instead of going to another company. 

3. Execution

This section of your business plan dives into how you will accomplish your goals. While the Opportunity section discussed what you’re doing, you now need to explain the specifics of how you will do it.

Marketing & sales

What marketing tactics will you use to get the word out about your business? You’ll want to explain how you get customers to your door and what the sales process looks like. For businesses with a sales force, explain how the sales team gets leads and what the process is like for closing a sale.

Depending on the type of business that you are starting, the operations section needs to be customized to meet your needs. If you are building a mail-order business, you’ll want to cover how you source your products and how fulfillment will work.

If you’re building a manufacturing business, explain the manufacturing process and the necessary facilities. This is where you’ll talk about how your business “works,” meaning you should explain what day-to-day functions and processes are needed to make your business successful.

Milestones & metrics

So far, your business plan has mostly discussed what you’re doing and how you will do it. 

The milestones and metrics section is all about timing. Your plan should highlight key dates and goals that you intend to hit. You don’t need extensive project planning in this section, just key milestones that you want to hit and when you plan to hit them. 

You should also discuss key metrics : the numbers you will track to determine your success.

The Company section of your business plan should explain your business’s overall structure and the team behind it.

Organizational structure

Describe your location, facilities, and anything else about your physical location relevant to your business. You’ll also want to explain the legal structure of your business—are you an S-corp, C-corp, or an LLC? What does company ownership look like?

Arguably one of the most important parts of your plan when seeking investment is the “Team” section. This should explain who you are and who else is helping you run the business. Focus on experience and qualifications for building the type of business that you want to build. 

It’s OK if you don’t have a complete team yet. Just highlight the key roles that you need to fill and the type of person you hope to hire for each role.

5. Financial plan and forecasts

Your business plan now covers the “what,” the “how,” and the “when” for your business. Now it’s time to talk about money. 

Financial forecasts

What revenue do you plan on bringing in, and when? What kind of expenses will you have? How much cash will you need?

These are the types of questions you’ll answer by creating detailed forecasts. Don’t worry about getting it perfect, these are just educated guesses. Your goal is to get numbers down that seem reasonable so you can review and revise financial expectations as you run your business. 

You’ll want to cover sales , expenses , personnel costs , asset purchases, cash , etc, for at least the first 12 months of your business. If you can, also create educated guesses for the following two years in annual totals. 

If you intend to pursue funding, it’s worth noting that some investors and lenders might want to see a five-year forecast. For most other cases, three years is usually enough.

If you’re raising money for your business, the Financing section is where you describe how much you need. Whether you’re getting loans or investments, you should highlight what and when you need it. 

Ideally, you’ll also want to summarize the specific ways you’ll use the funding once you have it. 

For more specifics, check out our write-up explaining what to include in your business plan for a bank loan .

Historical Financial statements

If your business is up and running, you should also include your profit and loss statement , balance sheet , and cash flow statement . These are the historical record of your business performance and will be required by lenders, investors, and anyone considering buying your business. 

If you don’t want lengthy financial statements overwhelming this section of your business plan, you can just include the most recent statements and include the rest within your appendix.

6. Appendix 

The final section of your business plan is the appendix . Include detailed financial forecasts here and any other key documentation for your business. 

If you have product schematics, patent information, or any other details that aren’t appropriate for the main body of the plan but need to be included for reference.

Tips to write a detailed business plan

Keep it brief.

You may not be limited to one page, but that doesn’t mean you need to write a novel. Keep your business plan focused using clear, plain language and avoiding jargon. Make your plan easier to skim by using short sentences, bulleted lists, and visuals. Remember, you can always come back and add more details.

Related Reading: 7 tips to make a high-quality business plan  

Start with what you know

Don’t worry about following a strict top-to-bottom approach. Instead, build momentum by starting with sections you know well. This will help you get information down and ultimately make you more likely to complete your business plan. 

Set time limits

You don’t have to write your business plan in one sitting. It may be more valuable to set a time limit, see how much you get done, and return to it again in another session. This will keep you focused and productive and help you fit plan writing into your other responsibilities.

Reference business plan examples

Real-world business plan examples from your industry can provide valuable insights into how others have successfully presented their ideas, strategies, and financials. Exploring these examples can inspire your own approach and offer practical guidance on what to include and how to tailor it to your specific needs.

Just be sure not to copy and paste anything.

Prioritize sections that really matter

When writing a detailed business plan, focus on the parts most important to you and your business. 

If you plan on distributing your plan to outsiders, you should complete every section. But, if your plan is just for internal use, focus on the areas that will help you right now.

Download a free business plan template

Are you ready to write your detailed business plan? Get started by downloading our free business plan template . With that, you will be well on your way to a better business strategy, with all of the necessary information expected in a more detailed plan.

If you want to improve your ability to build a healthy, growing business, consider LivePlan.

It’s a product that makes planning easy and features a guided business plan creator , drag-and-drop financial forecasting tools , and an AI-powered LivePlan Assistant to help you write, generate ideas, and analyze your business performance. 

Use your detailed business plan to grow your business

Your business plan isn’t just a document to attract investors or close a bank loan. It’s a tool that helps you better manage and grow your business. And you’ll get the most value from your business plan if you use it as part of a growth planning process . 

With growth planning, you’ll easily create and execute your plan, track performance, identify opportunities and issues, and consistently revise your strategy. It’s a flexible process that encourages you to build a plan that fits your needs.  

So, whether you stick with a one-page plan or expand into a more detailed business plan—you’ll be ready to start growth planning.

Sources in this article

• Parsons, Noah. “Do You Need a Business Plan? This Study Says Yes” Bplans: Free Business Planning Resources and Templates , 10 May 2024, www.bplans.com/business-planning/basics/research .

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20 Best Business Proposal Examples & Templates to Use

Written by: Raja Mandal

The perfect business proposal requires concise content, compelling benefits and a unique business appeal.

But if you're new to writing them, you're probably boggled with questions like:

• How do you design it?
• What should you include?
• And how do you make your proposal compelling enough to seal the deal?

The process can feel like a confusing maze with no clear direction.

To help you navigate it successfully, we have compiled a list of 20 business proposal examples and templates to inspire you and act as a starting point to write your business proposal.

Table of Contents

20 business proposal examples.

• What Is a Business Proposal?
• What Are the Types of Business Proposals?
• How Do I Write a Business Proposal?
• What Is the Best Business Proposal?
• What Not to Do in a Business Proposal?
• How Long Should a Business Proposal Be?
• Creating an effective business proposal requires time, effort, and necessary design and documentation skills. However, with Visme's 20 business proposal examples and templates, anyone can create one in minutes.
• Visme provides business proposal templates for various industries, including web development, construction, copywriting, and graphic design.
• Choose a template and customize it using Visme's suite of design tools, including brand wizard, collaboration tools, AI writer, AI image editing tools and more.
• Sign up for Visme to create a winning business proposal for your next project or client within just a few clicks.

Here are 20 examples of business proposals that can guide you in creating a successful proposal for your own business. These examples cover various industries and business sizes, from graphic design to supply chain management.

Each template is fully customizable, so you can choose any template that suits your business type and size and modify it to meet your needs.

1. Website Design Business Proposal Example

This website design business proposal example template becomes an instant visual delight with a distinctively refreshing blue color palette, plenty of whitespace and high-quality images. The inclusions of maps and radial gauges facilitate effective data visualization.

Utilize a comprehensive company overview, work samples, trustworthy testimonials, an understandable project overview and a transparent budget breakdown. Perfect for web designers and businesses that value comprehensive understanding in a visually pleasing format.

Enhance your efficiency with Visme's AI document generator . This advanced tool can help you generate documents in no time. All you have to do is create a first draft using a prompt, choose a style from the options and customize it further to match your needs.

Save your time and effort using Visme’s document generator and spend more time growing your business.

2. Modern Business Proposal Example

Check out this sample business proposal template, featuring a sleek design that's both modern and user-friendly. The cover and pricing pages highlight important information with a dark green overlay on a background image.

The template includes data widgets and a detailed list format to present your business services best. The pricing page features a three-tier pricing structure with corresponding services, making it easy to compare options.

3. Mobile Video Game Development Business Proposal Example

Are you looking to showcase your expertise in the industry while making a solid visual impact?

Explore this vibrant business proposal example template, featuring a unique purple and orange color combination that gives your proposal an extra edge. Enhance your presentation with engaging 3D illustrations and vector icons to keep your audience hooked.

Also, the template includes a "Why Choose Us?" page, a detailed 'Plan of Action' page that helps outline your mission and strategies, while the 'Investments' page offers a clear view of how you plan to allocate funds.

Customize the 3D illustrations and vector icons using Visme’s drag-and-drop editor. Choose from thousands of vector graphics , high-quality stock images , 3D animated illustrations and more to match your proposal’s content.

Simplify content creation and brand management for your team

• Collaborate on designs , mockups and wireframes with your non-design colleagues
• Lock down your branding to maintain brand consistency throughout your designs
• Why start from scratch? Save time with 1000s of professional branded templates

Sign up. It’s free.

4. Creative Business Proposal Example

Elevate your brand’s image with the visually stimulating creative business proposal example template. This template employs a harmonious blend of blue shades and orange accents, creating a fresh and professional aesthetic.

The design is enhanced using shapes, circles and arrows, contributing to its creative appeal. Placeholder images and data widgets are included, ensuring your information is clearly displayed and easily digestible.

Use this template to add creativity and clarity to your proposal and create a great first impression for your clients.

5. Construction Business Proposal Example

Use this construction business proposal example template to make your proposals aesthetically pleasing and strong, just like your architecture.

This sample business proposal stands out due to the strategic use of images as a prominent design element – be it on the front page, as a background on various pages or interspersed among the text.

The effective combination of yellow and blue colors makes the proposal visually appealing and easy to navigate. The thoughtfully organized sections include "Successful Projects," "Project Overview," "Budget and Pricing," and "Project Delivery."

If you're working with your team on a proposal, you can simplify the process using Visme Workflows . This tool allows you to manage roles, track progress, set deadlines and handle corrections all in one place.

Doing so can ensure a smooth workflow between team members and save time from the briefing stage to the final design.

6. Copywriting Business Proposal Example

Craft compelling narratives with this copywriting business proposal template tailored for copywriters and marketing businesses. It attracts the target audience by featuring engaging copy that effectively showcases your writing capabilities.

The template incorporates customer testimonials, a strong tool for establishing trust and enhancing credibility. A roadmap illustrates the project's phases and corresponding dates, providing a clear timeline for when different website pages will be written.

Also, the terms and conditions ensure a mutual agreement and understanding of the project's scope.

Do you often struggle with writer's block and wish to save more time? Visme's AI Writer can be your ultimate solution. This powerful tool can help you proofread, edit and even generate copy for any document you create in Visme.

Whether you're looking for business proposal ideas or working on an existing proposal, this tool can help polish your content or cut your writing time by half. All you need to do is provide the tool with simple prompts and see the magic happen.

7. Digital Marketing Business Proposal Example

Engage your audience with the digital marketing business proposal template. Its bright blue and yellow combination exudes energy and creativity, making a strong impression on your clients.

The business proposal format leverages data widgets, including progress bars and population arrays, for clear and concise data presentation. The included project overview utilizes visually appealing icons to explain the services offered.

Furthermore, a flowchart-style roadmap briefly outlines the project's process and timeline.

The template is perfectly suited for digital marketing agencies or freelancers looking to showcase their services and scale their business in a vibrant and organized manner.

8. Freelance Writer Business Proposal Example

This freelance writer business proposal example template is creatively designed and structured to persuade the reader immediately.

Each page in this proposal stands out with a different color, adding a dynamic and engaging element to your presentation.

With a minimalist design, this proposal utilizes large, bold fonts for clear, impactful communication with less text. It effectively uses icons to present information in a clear, visually appealing manner.

Overall, the professional design not only aids in selling your services but also portrays your expertise and creativity.

9. SEO Business Proposal Example

This SEO business proposal template is next-level. It's got a cool design with overlay background and transparent shapes that make the information really pop.

The template features a comprehensive step-by-step process to demonstrate how you will optimize clients' web pages. It also includes a clear line graph to provide an overview of past projects, presenting the success rate and growth over time.

Additionally, the proposal has a dedicated "The Team" page to introduce your team members and emphasize their skills and expertise.

Add more transparency in presenting your team using Visme's organizational chart maker .

Choose a suitable organizational chart template from Visme's library and customize it to fit your needs. You can add or remove positions, change the colors and fonts and even add images to make your chart more appealing.

Watch the video below to learn more about creating an organizational chart in Visme.

10. Photography Business Proposal Example

Relying on the saying that a picture says a thousand words, the proposal uses professional images of different models as the primary focus, showcasing the photographer's expertise and technical skills.

The minimalist design favors a light brown color and plenty of white space to let the images shine. This approach lifts the portfolio's visual elements and draws attention to the work's quality and style.

Seamlessly enhance your pictures with Visme's AI image editing tools . Edit, touch up, unblur and upscale your images in a few clicks. Select the image in your document, choose an action, give a prompt and Visme will do the rest.

Visme's AI-powered tools, customizable templates and top-notch customer support are helping businesses worldwide achieve their design objectives. However, don't just take our word for it. Check out what one of Visme's satisfied users has to say about the platform.

Business Owner

11. Accounting Business Proposal Example

Express your accounting firm's professionalism through a well-structured, comprehensive proposal using this business proposal template. The template uses a mature blend of blue and brown color combinations, making it appealing to potential business partners while maintaining a professional look.

It uses a flowchart to perfectly display the audit procedure and the various phases of engagement, making complex processes easily digestible for prospective clients.

The template contains vital pages, such as the company profile, where you detail your business's history and credentials. The 'Audit Procedures' page outlines your working process, while the 'Fee Investment' page explains your pricing structure. These ensure that the client gets a thorough understanding of your offering.

Effortlessly manage information across multiple documents with Visme's Dynamic Fields . Save fields once and watch as every document updates when changes are made. This is perfect for keeping your business proposals up-to-date.

Watch the video below to learn more about how this feature works.

12. Contractor Business Proposal Example

This proposal example features a minimalist, clear design with a peaceful sky-blue theme. Black and white images are tastefully utilized, supporting the professionalism and seriousness of the proposal.

The document is structured into essential sections, including project scope, timeline, pricing, and terms. These critical sections allow you to concisely express the specifics of your offering to clients, ensuring they understand the full breadth of your services.

This template is ideally suited for individual contractors seeking work from clients on a global scale.

13. Graphic Design Business Proposal Example

This business proposal template is visually alluring and dynamic, as one might expect from a graphic design proposal.

It utilizes an engaging color scheme, combining inviting purple and sky blue shades. The design elements are unique and eye-catching, incorporating a variety of shapes like ellipses, circles and abstracts to add visual interest.

The “Our Services” page optimizes icons for a cleaner and delightful presentation, outlining services offered in a visually compelling and understandable manner.

It's more than adequate to say the overall design of this proposal template itself screams "Graphic Design.”

Design your business proposal collaboratively using Visme collaborative design features . Invite your team members via email or share a link to the document and start working together to achieve your goals.

Visme's collaborative design features, like live editing, commenting, and annotating will ensure that everyone is on the same page and that your business proposal is as effective as possible.

Read our comprehensive guide about how to do collaborative design right with Visme, or watch the video below to learn more.

14. Video Production Business Proposal Example

With its primary objective of winning over prospective clients, this template creatively showcases your video production ideas.

The proposal features high-quality screenshots from video clips previously produced and offers a glimpse of expertise and work quality. It includes a proposed plan section with time and price, allowing potential clients to weigh the value of your services.

Furthermore, the template has three unique sections to propose three video ideas tailored to the client you're submitting the proposal to, strengthening your rapport with them.

Take control of your proposal's performance with Visme's Analytics feature . It tracks unique visits, visitor IP, average time spent and many more, granting valuable insights into client engagement.

Channel this knowledge to refine your designs, optimizing success for future proposals. Empower your process, and let data guide your strategy.

15. Supply Chain Management Business Proposal Example

Create a persuasive, detail-oriented proposal using this template to win over your supply chain management clientele.

Strengthen your credibility and appeal to potential clients by highlighting your achievements and value propositions with statistics in the "Why Choose Us" section.

The "What's Next" section outlines a step-by-step process for taking action after the proposal phase. This roadmap guides potential clients through the partnership journey, helping to foster a commitment to you.

Moreover, this template includes a dedicated customer testimonials page, a powerful tool to leverage satisfied past clients' voices to assure potential clients of your service's quality and reliability.

16. Finance Consultancy One Pager Business Proposal Example

This one-page business proposal example synthesizes all the crucial information about your consultancy into a concise yet impactful format.

With a bold and striking yellow and black color palette, this one-pager stands out, instilling a sense of professionalism and assurance in your potential clients.

Importantly, this template leverages data visualizations, including pie charts and radial gauges, to effectively communicate critical data to potential clients. These visual aids are excellent for quickly conveying complex financial data in an easily digestible manner.

Transform your data into compelling visuals with Visme's wide selection of data visualization tools . From progress bars to radial gauges and population arrays, Visme offers 30+ data widgets .

If you need to showcase more extensive data sets, try Visme's 20+ types of charts and graphs , including pie charts , bar graphs , line graphs , scatter plot and more.

17. SaaS Startup One Pager Business Proposal Example

Designed for SaaS startups, this one-pager is a powerful tool to achieve a strong impression and understanding of your business proposal in a single glance.

It utilizes a vigorous blue and red color combination to capture attention and highlight the vibrancy of the proposed SaaS solution.

In the layout, a picture visually represents your startup's mission or product, immediately drawing in the viewer's curiosity. Furthermore, the market analysis section's graphical illustrations effectively communicate the startup's potential within the market landscape.

To ensure a consistent and professional appearance of your business documents, Visme offers a brand wizard tool that allows you to save and apply your branding assets with just a single click.

All you have to do is copy and paste your website URL, and the tool will automatically extract your brand colors, fonts, and company logos. This feature saves you time and ensures your business documents have a uniform look and feel.

Explore our comprehensive guide about creating a branding kit in Visme, or watch the video below to learn more.

18. Marketing and Media One Pager Business Proposal Example

Are you a marketing and media business looking for new businesses? This business proposal example offers an impactful and concise way to showcase the essential elements of your business.

The lively blue, pink, and orange color scheme adds a refreshing visual appeal to this comprehensive one-pager.

The template utilizes tables to present key features and financials in an easy-to-read format. This organized data promptly provides potential stakeholders with relevant information to evaluate your venture.

Additionally, it includes sections on the target audience, market analysis, and revenue model to provide a well-rounded view of your business.

19. Email Marketing Business Proposal Example

Built for email marketers, this proposal combines visually striking design with data-driven substance to create a persuasive narrative for potential clients.

Its refreshing blue color scheme and dynamic design capture and maintain your prospective client's attention from start to finish. The proposal harnesses the power of compelling data visualizations, such as population arrays and progress bars, succinctly presenting your statistics.

20. Fashion Business Proposal Example

Let's conclude this visual journey with this fashion business proposal example template. Its attractive color scheme of Persian indigo and red rose infuses a sense of style and sophistication, ideally suited to a fashion business. The template also features high-quality images of models, adding a professional and visually appealing element.

It provides specific sections where you can detail top locations, packages and venues, ensuring your prospective partners, investors and sponsors fully understand the breadth and scope of your fashion business.

After you have personalized your business proposal template, Visme gives you several options to share and publish it. Here are the ways you can do it:

• Download your project in PNG, JPG, and PDF formats to share it offline.
• Share your business proposal with your clients using the shareable link provided by Visme.
• Generate a code snippet in Visme to embed your business proposal on any web page.

Business Proposal FAQs

Q. what is a business proposal.

A business proposal is a document you send to potential clients or partners. It outlines your company's products or services that can help solve the client's problem. Essentially, it's your way of selling your solution to win a specific project.

Q. What Are the Types of Business Proposals?

There are three major types of business proposals used across industries:

• Formally Solicited Proposals: These proposals are created in response to an official request for proposal (RFP). For instance, a municipal body might issue an RFP for a waste management system, and companies would send in their proposals tailored to meet the stated requirements.
• Informally Solicited Proposals: This type of proposal caters to a less structured request. For example, during a meeting, a client might express a need for a solution, and a business could respond with an informal proposal targeting the client's needs.
• Unsolicited Proposals: These are proposals that businesses submit without any prior request, often as marketing tools. For example, a software company might send an unsolicited proposal to a potential client presenting a new customer management system to improve the client's operations.

Q. How Do I Write a Business Proposal?

Writing a business proposal involves multiple steps:

• Understand Client's Needs: Learning about your client's needs and expectations is crucial. This knowledge will guide the whole proposal.
• Outline your Proposal: Start with a brief summary of the proposal, and then write about how your service or product meets or exceeds the client's needs.
• Detail your Services or Products: Clearly describe what you're proposing, how it works and how it solves the client's problem.
• Provide the Cost Breakdown: Detail the pricing of your product or service so the client understands their investment.
• Summarize the Proposal: In conclusion, recap how your proposal meets the client's needs.

To get more comprehensive guidelines, refer to our article on how to write a business proposal .

Q. What Is the Best Business Proposal?

The best business proposal is one that is tailored to meet the specific needs and expectations of your client. It should clearly explain how your product or service can solve a problem or enhance the client's situation.

To make the proposal more effective, make it well-structured, concise, written in clear, simple language and error-free.

Lastly, end the proposal with a strong call to action that motivates the client to take the next step, whether scheduling a meeting, a call or signing a contract.

Q. What Not to Do in a Business Proposal?

In a business proposal, there are several things to avoid:

• Not Personalizing Your Proposal: Every proposal should be tailored to the client's needs and expectations.
• Over-Cluttering the Design: Maintain a clean, organized document design, allowing content to breathe with white spaces.
• A Complex Layout: Ensure your layout is simple and intuitive so that essential sections of the proposal are easily accessible.
• Using Incorrect or Too Many Fonts: Be cautious with font variations. Use a maximum of two types of fonts and ensure they are professional and readable.
• Poor Quality Images : Images and graphics included should be high-resolution and relevant to the content.
• Leaving out Branding Elements : Failing to incorporate your logo, brand colors, etc., can lead to missed chances of reinforcing business identity.

Q. How Long Should a Business Proposal Be?

The ideal length of a business proposal depends on the specific client or use case. It should not be too brief to leave out valuable information or too long to cause the client to skim or skip sections.

Find a perfect balance of providing comprehensive detail without overloading. Therefore, a business proposal could be as short as one page or as long as 50 pages, depending on the client's needs.

Create Professional Designed Proposals & More With Visme

With our collection of 20 best business proposal examples and templates, you're now equipped to create persuasive, compelling proposals that captivate your clients and win more deals.

Take your business proposal to the next level with Visme.

Visme is a versatile tool, perfect for crafting professional business proposals and more. It allows you to design stunning documents with interactive and engaging elements, without the need for a designer or coding. It hosts a suite of powerful features and AI-powered tools all under one platform.

Whether you're creating presentations, infographics or proposals, Visme has a wealth of templates and tools to help bring your ideas to life in the most visually appealing way.

Ready to make a lasting impression with your business documents? Sign up for Visme today !

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About the Author

Raja Antony Mandal is a Content Writer at Visme. He can quickly adapt to different writing styles, possess strong research skills, and know SEO fundamentals. Raja wants to share valuable information with his audience by telling captivating stories in his articles. He wants to travel and party a lot on the weekends, but his guitar, drum set, and volleyball court don’t let him.

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How To Write a Business Plan

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Starting a business is a wild ride, and a solid business plan can be the key to keeping you on track. A business plan is essentially a roadmap for your business — outlining your goals, strategies, market analysis and financial projections. Not only will it guide your decision-making, a business plan can help you secure funding with a loan or from investors .

Writing a business plan can seem like a huge task, but taking it one step at a time can break the plan down into manageable milestones. Here is our step-by-step guide on how to write a business plan.

Table of contents

• Write your executive summary
• Do your market research homework
• Set your business goals and objectives
• Plan your business strategy
• Describe your product or service
• Crunch the numbers
• Finalize your business plan

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Step 1: Write your executive summary

Though this will be the first page of your business plan , we recommend you actually write the executive summary last. That’s because an executive summary highlights what’s to come in the business plan but in a more condensed fashion.

An executive summary gives stakeholders who are reading your business plan the key points quickly without having to comb through pages and pages. Be sure to cover each successive point in a concise manner, and include as much data as necessary to support your claims.

You’ll cover other things too, but answer these basic questions in your executive summary:

• Idea: What’s your business concept? What problem does your business solve? What are your business goals?
• Product: What’s your product/service and how is it different?
• Market: Who’s your audience? How will you reach customers?
• Finance: How much will your idea cost? And if you’re seeking funding, how much money do you need? How much do you expect to earn? If you’ve already started, where is your revenue at now?

Step 2: Do your market research homework

The next step in writing a business plan is to conduct market research . This involves gathering information about your target market (or customer persona), your competition, and the industry as a whole. You can use a variety of research methods such as surveys, focus groups, and online research to gather this information. Your method may be formal or more casual, just make sure that you’re getting good data back.

This research will help you to understand the needs of your target market and the potential demand for your product or service—essential aspects of starting and growing a successful business.

Step 3: Set your business goals and objectives

Once you’ve completed your market research, you can begin to define your business goals and objectives. What is the problem you want to solve? What’s your vision for the future? Where do you want to be in a year from now?

Use this step to decide what you want to achieve with your business, both in the short and long term. Try to set SMART goals—specific, measurable, achievable, relevant, and time-bound benchmarks—that will help you to stay focused and motivated as you build your business.

Step 4: Plan your business strategy

Your business strategy is how you plan to reach your goals and objectives. This includes details on positioning your product or service, marketing and sales strategies, operational plans, and the organizational structure of your small business.

Make sure to include key roles and responsibilities for each team member if you’re in a business entity with multiple people.

Step 5: Describe your product or service

In this section, get into the nitty-gritty of your product or service. Go into depth regarding the features, benefits, target market, and any patents or proprietary tech you have. Make sure to paint a clear picture of what sets your product apart from the competition—and don’t forget to highlight any customer benefits.

Step 6: Crunch the numbers

Financial analysis is an essential part of your business plan. If you’re already in business that includes your profit and loss statement , cash flow statement and balance sheet .

These financial projections will give investors and lenders an understanding of the financial health of your business and the potential return on investment.

You may want to work with a financial professional to ensure your financial projections are realistic and accurate.

Step 7: Finalize your business plan

Once you’ve completed everything, it's time to finalize your business plan. This involves reviewing and editing your plan to ensure that it is clear, concise, and easy to understand.

You should also have someone else review your plan to get a fresh perspective and identify any areas that may need improvement. You could even work with a free SCORE mentor on your business plan or use a SCORE business plan template for more detailed guidance.

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The takeaway

Writing a business plan is an essential process for any forward-thinking entrepreneur or business owner. A business plan requires a lot of up-front research, planning, and attention to detail, but it’s worthwhile. Creating a comprehensive business plan can help you achieve your business goals and secure the funding you need.

Related content

• 5 Best Business Plan Software and Tools in 2023 for Your Small Business
• How to Get a Business License: What You Need to Know
• What Is a Cash Flow Statement?

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Writing a Business Proposal That Wins Deals (+Templates)

Learn how to write a business proposal that stands out, impresses buyers & seals more deals. Learn how to prepare and what to include in your proposal.

5 minute read

helped business professionals at:

Short answer

What to include in a business proposal

• Personal message / Cover letter
• Table of contents
• Executive summary
• Overview of your company and product or service
• Deliverables
• Outcomes, benefits, and ROI (if applicable)
• Social proof
• Case studies
• Terms and conditions
• Agreement (e-signature)

Read on to get practical details for each slide ⤵

What is a business proposal?

A business proposal is a presentation or PDF that details a product, service, or project to a prospective client. It is used near the end of the sales process and covers the prospect’s needs and objectives, and the provider’s solution, pricing, and expected outcomes.

A successful business proposal ends with the prospective client accepting and signing the document.

PDF is traditionally the go-to format for business proposals.

But in recent years, and increasingly with the rise of AI, leading sales teams and professionals are transitioning from static PDFs to interactive proposals that give prospects more freedom for customization , and increase the likelihood they’ll accept and sign the document.

Types of business proposals

Business proposals broadly fall under 3 types:

1) Service provider business proposal

Service proposals cover services given over time such as cleaning, security, gardening, IT, staffing, and management.

Service proposals normally include start and termination dates for the service, rather than timelines and milestones, and focus on deliverables rather than KPIs.

2) Product business proposal

Product business proposals cover a product or solution. It’s commonly used by B2B SaaS companies in high-tech or manufacturers that supply parts or raw materials to other companies.

This type of business proposal can focus on KPIs and ROI in the case of SaaS, or on delivered quantities and qualities in the case of manufacturers.

This is not to be confused with a product proposal given to stakeholders and decision-makers before product development or a product launch.

3) Project business proposal

A business proposal for a project covers a service, a deliverable provided once, and limited in time. This type of proposal is used by providers such as consulting agencies, construction companies, engineering firms, legal firms, and website development companies.

Project business proposals focus on timetables, milestones, and the project’s impact as measured in KPIs and ROI.

These are not to be confused with project proposals made outside the sales context . Such project proposals are used internally (or externally as part of a broader service) to get the buy-in and backing of stakeholders and decision-makers.

This type of project proposal is closer to a project plan than a business proposal.

Solicited vs. unsolicited business proposal

Unsolicited.

These business proposals are used as part of early prospecting to generate leads and MQLs. These are essentially the same as sales prospecting decks .

Solicited informally as part of the sales process

These proposals, sometimes called sales proposals , are used after one or more sales meetings have occurred and only after the prospect has shown interest in buying. This is what most people refer to when saying “business proposal”.

Solicited formally as a response to an RFP (Request for Proposal)

An RFP response is sent only when an RFP is issued for a service or solution you provide. Often the RFP will have particular requirements and a specific structure and format for application.

What does a business proposal look like?

The standard format for a business proposal is PDF. Proposals are often designed to be asthetically pleasing and more inviting than a text-only document.

But in recent years leading sales teams are moving away from PDFs to interactive digital proposals. These new digital formats help them differentiate from the competition, and provide valuable engagement analytics, support engagement, and increase close rates.

Here’s an interactive proposal example by Storydoc:

How to write a business proposal slide by slide

To compose a highly effective business proposal you’ll need to differentiate your value proposition, address key selling points, manage expectations, and involve all critical stakeholders.

By the end of this guide, you’ll know how to make world-leading business proposals, surpass your competitors in every way, and get more deals over the finish line.

This guide is a broad guide. However, different industries require different proposals with different focuses and different slides. And so, below you’ll find links to our specialized proposal writing guides for whichever your niche or use case may be.

Proposal writing guides for specific use cases:

TIP: Write your proposal quickly. Writing effective business proposals quickly is essential for closing deals. Proposals don’t have to be perfect, but they need to be timely to keep the prospect engaged and avoid ghosting.

The title slide is like a shop window. It’s your prospect’s expectations for what’s inside. It should be visually appealing, but that’s not enough.

To get a headstart over your competitors with your proposal title slide it needs to capture the essence of your value proposition, establish relevancy, and create intrigue.

Easier said than done. But definitely doable.

How to make a business proposal title slide that sets you apart?

To nail your cover slide, and stand out from other proposals competing for their business do the following:

• Include a short version of your unique sales proposition in the title and tagline.
• Include the prospective client’s company name and other information specific to them in the title or tagline.
• Include their company logo beside yours.
• Include the sender’s and the recipient's names.
• Include relevant imagery
• Include the expected reading time (to set their effort expectations)
• Include some form of motion, like animation or video to grab attention (but don’t make it too distracting).

2) Personal note or Cover letter

A personal note or cover letter is an introduction that eases the reader into the proposal. It establishes the basic context needed to start reading.

Your cover letter should be kept conversational and short. Don’t make it too cold and formal, and don’t make it a form of an executive summary, just make the connection to past meetings, voiced expectations, and people involved.

TIP: It’s good practice to put a face to the note, to make it warmer and personal (like in the example below).

3) Table of contents

It’s important to add a table of contents to your proposal for 3 reasons:

• It manages the prospect’s expectations and lets them quickly see if everything they expect is in the doc.
• It helps the prospect assess the effort it would take to review the proposal.
• It allows prospects and decision-makers to access deep content easily and quickly, in their first or subsequent reviews.

TIP: Adding jump-links will provide you with click data on which slides prospects found most important. With this info, you could follow up with them knowing exactly what issues to address.

4) Executive summary

An executive summary in a business proposal should be kept very short and easy to scan using bullet points, ordered lists, short texts, and preferably a video (if you’re using interactive proposal formats).

It is NOT a long and text-heavy intro like you find in reports or research papers.

What to include in a business proposal executive summary?

• Your company and expertise
• Key selling points (the client’s imminent needs)
• The impact of your product or service
• What you intend to do and provide (game plan outline)

TIP: Using a slide template like in the example below you could embed a video about your business, product, service, and expertise, and reduce the text needed to deliver your message.

5) Challenges

The challenges slide, sometimes called the problem slide , is a short yet ultra-specific description of the problem or challenges that plague your prospect and that your solution aims to solve.

Since your prospect knows their own pains, there is no need to explain them in length. Simply describe their pain points in titles using their own words from past meetings and correspondence.

In the example below we used a simple “card” format to list the main challenge.

6) Objectives

The objectives slide lists the desired outcomes gained from procuring your service or product. This is essentially the mirror image of the client’s challenges.

Use the prospect’s own words to articulate their objectives, same as I advised for describing their challenges. This would make them more relatable and compelling.

7) Product or service overview

Your service or product overview slide should explain what your solution doe s, a bit about how it does it, and what makes it uniquely valuable.

Make an effort to focus your overview on how your solution addresses the client’s main problem , important features or deliverables, and especially the impact it brings.

This slide is best done with a mix of video and text, where the video gives a broad overview and the text is tailored to the specific prospect and their concerns.

How to create an effective business proposal solution slide?

Ensure your value proposition clearly solves the client's business challenge.

• Highlight unique aspects of your solution that address the client's specific needs.
• Address any potential gaps in your products and services proactively.
• List potential risks and discuss them with the client before they become issues.
• Develop contingency plans for each identified risk and demonstrate your preparedness.
• Incorporate visual aids to enhance understanding and retention. Support your text with interactive graphs and charts , videos, infographics, annotations, and images.
• Cater to different learning styles by using multimedia content, like video, scrollytelling , and data visualization .
• There is no one way to make this slide. Depending on the level of complexity and the number of challenges you want to address you can use tabs, cards, a list of items, or a narrator slide .

8) Deliverables

The deliverables slide includes services beyond and around the main solution, like onboarding, training, integration, design, customer support, dashboards, documentation, audits, hardware supplied, etc.

How to make and present a business proposal solution slide?

When creating this slide:

• Provide a brief list of the specific services you will provide.
• Explain how these services will be delivered (step-by-step).

This will remove uncertainty and unwanted surprises. It will give the client the confidence to move forward and help you justify pricing.

When presenting this slide:

• Discuss the timeline with the client during the proposal presentation to ensure alignment.
• Explain how communication will be handled.

This will help to align the client’s expectations for response times and meeting schedules with what you are willing to do.

Importantly, be cautious about offering too much access using direct messaging to avoid constant interruptions.

9) Outcomes, benefits, and ROI

This slide includes the outcomes the client is expected to get by procuring your product or service. The most compelling outcomes are measurable impacts on the client’s KPIs or support them directly.

Measurable outcomes demonstrate your accountability, which builds the client’s trust in your ability to deliver.

How to make a business proposal outcomes slide?

• Clearly define how success will be measured using specific KPIs.
• Agree on these KPIs during the initial conversation with the prospect.
• Ensure KPIs are easy to understand and directly tied to the proposal objectives.

10) The team

The team slide puts faces to the service you provide. This slide introduces the specific team within the company that will take care of the client and work with them closely to achieve their objectives.

People trust and appreciate the individuals they collaborate with more than a faceless organization. This gives the prospect a sense of connection which could reduce their focus on price.

How to create a business proposal team slide?

• Include a quality image of 2-4 key team members with a friendly expression.
• Assign each team member a short professional description with their job title, responsibilities, and past success.
• Connect each team member to their LinkedIn profile to allow the prospect to learn more.

11) Social Proof

Social proof is a standard for almost any type of persuasive document. A social proof slide can include video testimonials, client review quotes, client logos, trust badges, and awards.

Limit yourself to the minimum needed to show trustworthiness, authority, and capability.

Make sure your social proof closely resembles your prospect’s challenges, niche, and circumstances. The more your prospects recognize themselves in your quotes and testimonials the more persuasive it will be.

12) Case study

Case studies, sometimes called customer success stories , serve as proof of your competence and capability to deliver on what you promise.

Most prospects will want to want to see proof of past success with a client like them, with the same needs and challenges.

The example slide template below has a snapshot of the case study in text and a testimonial video (placeholder). You can cater to prospects who prefer to read as well as those who prefer to listen.

How to make a case study slide?

• Include 1 -3 links to your most relevant case studies.
• Assign a short teaser text for each case study to help the reader quickly understand what each case study is about.

Use your best-known logos, but not at the expense of relevancy.

Use tabs to minimize the space needed to present the case studies

13) Pricing

The pricing slide can either show your pricing plan options , in case of a SaaS product business proposal or show the breakdown of the services and deliverables provided , in case of a service proposal.

Both options allow the client visibility into the investments and their corresponding impact. But it also gives them control over the deal at a more granular level.

This minimizes frustration over unexpected costs or missing deliverables they expected to get which were not included in the deal.

How to build an effective business proposal pricing slide?

• Present the prices along with their potential ROI and non-monetary benefits.
• Emphasize the value and outcomes to shift the client’s focus from cost to investment.
• Allow the prospect to actively select the plan they want or check each individual service they require to give them a sense of control and ownership over their decision.

14) Terms and conditions

This section is a binding legal document that lists the terms of the agreement and the compensation each side should receive.

This is for your legal team to determine.

Things to ensure in your terms and conditions:

• Include a summary of the engagement duration and termination terms.
• Clearly state the compensation details and payment schedule.
• Break down payments into phases and ensure you get paid before starting work, even if it’s a partial deposit.

15) Agreement and e-signature

This is the part all your efforts have been leading up to. All you need is the beautiful signature in the box that seals the deal.

Don’t use a static PDF as your business proposal format if you can avoid it, since it makes this part more difficult and may trip you at the finish line.

Use modern digital proposal software that allows you to embed an e-signature box right in your proposal. And better yet, software that syncs with your CRM and automatically updates the lead status.

16) Next steps

The next steps slide is where you tell your client what will be the next immediate mutual action items after accepting the deal.

The plan for moving forward should be clear, concrete, and involve specific people.

How to create an effective next steps slide?

• Schedule follow-up meetings or calls to discuss the proposal further.
• Help the client visualize the process to reduce friction in their decision-making.
• Embed your live calendar app in the proposal to make it super easy for the prospect to book the next meeting with you.

17) Contact

Provide your contact information so your contact or any decision maker within the client’s organization can communicate with you to ask questions, get more information, or update you on progress.

Business proposal templates that get the deal

To help you speed up your proposal writing I brought you some of our best business proposal templates .

These interactive templates are easily customizable and completely reusable.

They were built and optimized based on what we’ve constantly seen work best for Storydoc clients.

Stroydoc can be integrated with your CRM so these templates can be automatically personalized and sent to the prospect from your sales platform with a click.

Before writing your proposal: how to prepare

1) Collect the critical information to customize your proposal to the client’s specific needs and circumstances. But don’t stop there - seek their feedback to refine the proposal (don’t assume you got it right in the first draft).

2) Make sure you understand the prospect’s decision-making process and criteria. Ask the prospect and try to identify all key stakeholders, decision-makers, and other obstacles involved in the process.

3) Get the client's expectations for the next steps and timelines . Discuss expected timelines with prospects and clarify the steps that will occur after accepting the proposal.

4) Get verbal agreement from the prospect before writing your proposal.

This bit is critical! Only write your proposal after discussing the main points of a possible deal with the prospect and getting their agreement. This will avoid nasty surprises and misunderstandings.

After writing your proposal: presenting to the client

Writing your business proposal is the hard part. But you have to present it effectively to finish the job.

DO NOT SEND YOUR PROPOSAL BY MAIL.

When you send your proposal over email you lose control over the conversation. So always schedule a call to walk the client through the proposal instead of emailing it.

Doing a live walkthrough with the client lets you handle objections, clarify details, and address concerns in real-time.

This is critical for avoiding confusion, doubts, or clients focusing solely on the price.

After presenting your proposal you can send it by email for further review by other decision makers.

NOTE: Do your best to prevent your prospects from printing out your proposal. A 2020 study found that once someone prints your proposal, your chances of landing the deal shrink by 84%!

Another benefit of using digital proposals is that you get engagement analytics that gives you visibility into who inside the client’s organization read the proposal, how long, which slides they focused on, and who they shared it with.

After presenting your proposal

• Plan your negotiation strategy - determine your best and worst-case scenarios for negotiations. Decide on your objectives and what you're willing to compromise on.
• Maintain your influence with follow-up interactions - Schedule a follow-up meeting immediately after presenting the proposal to discuss the proposal and next steps. Also regularly share knowledge and insights to keep the client engaged post-proposal.
• Prepare to handle client queries and requests - Clear proposals lead to more specific questions from prospects. Be ready to provide additional information if requested by the client.

As the Head of Marketing, I lead Storydoc’s amazing content-ops team in our fight to eradicate Death-by-PowerPoint wherever it resides. My mission is to enable decision-making by removing the affliction of bad content from the inboxes of businesses and individuals worldwide.

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How to Write a Business Proposal: Step-by-Step Guide

You just finished an amazing meeting with a potential client, they seem ready to pull the trigger and excited to work with you. Then they utter the following sentence: “Please send me a proposal.” And now you have to remember how to write one. This guide will give you a system and guidelines on how to write a business proposal and make that process easy and repeatable.

Writing business proposals is arguably not that fun. In fact, most business owners would rather avoid the task. However, if you have an amazing business proposal template to start with you can speed the process up significantly. The key is to build everything right the first time round and give yourself a reusable template you can tweak and adjust until it’s perfect.

What we'll cover

• Proposal templates
• Visual presentation and design
• Introduction (Executive summary)
• Detailed specification
• Terms and conditions
• Optimizing your proposals for conversion

What is a business proposal?

An effective business proposal is a formal document created with the purpose of persuading your potential customers to work with you. It’s a document used in a variety of industries - from selling carpets to offering enterprise software solutions and social media marketing , all of it starts with a business proposal.

Two types of business proposals

Besides the difference in the industry, the main division is between solicited and unsolicited business proposals. A solicited business proposal is sent when you already have a connection with the potential customer and they’re interested in what you’re selling. 

Usually, the buyer themselves will ask for a proposal outlining your problem statement. Whether they’re a small business or government agencies, your proposal should follow the project details they’ve outlined.

On the other hand, unsolicited proposals are sent without the explicit request of someone who may be interested in what you’re selling. Whether you’re writing formally solicited proposals or unsolicited ones, you’ll need to know how to structure them. 

Although it’s easier to create a solicited proposal, don’t stress out about writing unsolicited ones. Our guide can help you in both situations.

How to write a business proposal the easy way

Have you ever freehanded a business proposal into the body of an email? Or started compiling it in a Word document from scratch? Or maybe you’re more into InDesign so you noticed a typo on your freshly exported PDF?

The fact of the matter is, creating a proposal for every client from scratch is both exhausting and a waste of time. Having a structured proposal writing system in place will save you countless hours. At the most basic level, your proposal writing system is two things:

• Having a great business proposal template written with everything in it
• Knowing what needs editing each time

The first thing, getting your business proposal template in order, is vital. The second is a matter of personalization to the specific job and client.

What is a business proposal template?

Put simply, a proposal template is a proposal that is about 90% finished. Think of it as a collection of all the best pieces of content you’ve ever put into previous proposals.

Your best introduction describing the problem statement, your best pricing strategy , best type of proof, best title page, etc. A winning template combines all the best elements of the proposals you’ve sent which resulted in sales for your product or service.

If you’re using proposal software like Better Proposals, compiling this shouldn’t be difficult, because you will know which proposals work for your target audience thanks to our analytics and reports.

But what if you’ve never sent proposals before so you don’t have a basis for templates? What if you don’t have the time or just don’t know a thing about proposals? No reason to worry – our proposal library has more than 130 different proposal templates that help sell a wide range of products or services .

Once you have your template in place, you’ll only need to fill out the major details, such as:

• The client's information
• Specifics about the offer
• Pricing, timelines, detailed specification
• A proof section with an example similar to the offer you’re sending, etc.

Once you add these, your business proposal is ready to go. The main idea is that templates help you write proposals in 15 minutes instead of 5 hours. To see what the template creation process looks like, check out how easy it is to design yours in Better Proposals .

The importance of a good business proposal template

The best thing about a good proposal template is that you only need to create it once. After that, it’s just a matter of tweaking the details. If you do it properly the first time around, sending out a proposal turns into a few minutes’ work. 

The best tip we have is to choose your best proposal and turn it into a template. Allocate a good day to getting it as good as it can be - turn all specific information into placeholders, get your formatting sorted, and make sure your pricing section is clean and clear.

This also means editing the copy like it’s a headline on your website. Consider the wording, your client, and the emotions you want to evoke - really make each section shine.

Despite their growing popularity, this is the time to resist the urge to use AI content writers . The content they produce is easy to spot and putting effort into creating a great business proposal template makes all the difference. 

Later in this article, we’ll look at what is included in a business proposal, and that goes for your template too. We’ll provide business proposal examples as well. Next time you have that meeting with your potential client and they ask you to send them a business proposal for your proposed solution, you’ll confidently walk away knowing exactly what to do.

How to write a business proposal that sells

Most people think that writing a business proposal is boring and time-consuming. And for the most part, they’re right. There really is no creative flair in writing them and it’s all about pitching your product or service so that the new client says yes and gives you money. 

But it doesn’t have to be this way. There is a way to make proposal writing easier and more efficient and get your prospective client on board more quickly.

In the following sections, we’ll show you that writing a business proposal is more about preparation and using the right tools to make writing easier. In other words, we’ll teach you how to write a business proposal with minimal effort and maximum sales performance.

Once you pick the right proposal software tools, you’ll see how easy it is to create a winning proposal.

What questions are your customers asking?

When writing a business proposal, there’s a situation going on that only the best salespeople understand. Your potential client has a list of questions. They’ll rarely tell you what those questions are, mostly because they’re pretty awkward. 

For example, we had a situation when I quoted someone £40,000 for some software once. The proposal was about 17 pages long, and the client replied with one sentence:

“Sounds good. What happens if you die? How do I get my data back?”

I didn’t think it was an appropriate time to go back to him and explain I probably wouldn’t care about his data if I was dead. However, I did explain to him a contingency plan that we had in place for nearly a decade now for this exact situation. I told him, and he signed up.

This got me thinking. While this guy was the first bold enough to ask that question, he can’t have been the first guy to think it. From that moment on, we included the contingency plan in every business proposal we sent under a section called 'How we protect your data'.

Awkward questions your potential customers have but won’t ask you:

• What happens if you die?
• What will I do if they screw up my search engine rankings?
• What happens if they take over my website and vanish?
• What happens if they redesign my website and I get fewer conversions than I got before?

A rare client will actually ask these questions to your face, but it doesn’t mean they won’t pop into their mind. Think about it. How many questions do people actually ask on the back of proposals? Answer these questions in your proposal before the client gets a chance to ask them.

How do you want your potential clients to feel?

Don’t think of business proposals as just sales documents - think of them as taking someone on an experience. Think movies. The emotions override the content. It’s less important how you get them to feel sadness at the end, so long as you do.

Writing a business proposal isn't that different. It's all about the emotion you want your potential client to feel at the end of reading it. For example:

• Excitement – Describing possibilities using uplifting pictures and success stories is good here. Don’t bore them with a document resembling a long business plan.
• Confidence – Include lots of proof and trust-building elements into this. Don’t make suggestions; be certain in your wording.
• Action taking – Lots of commanding words and talking about the next step. Don’t bog them down with a list of 42 things to decide on. Just get them to do the “next” thing.

You could find the best custom writing service out there and you’d still be the only one who can do this properly. That’s because, depending on your client and what you’re selling, only you know what’s most appropriate.

What you definitely don’t want to be doing is talking in “maybes”, “ifs”, and using suggestive wording when you want someone to trust you. It sounds like you’re not sure. As a good friend, Mitch Miller, says:

“The doctor doesn’t ask the patient if it’s the right prescription. He just prescribes the right thing and tells them to get out of the office.”

The 8 core elements of writing a business proposal

There are 8 elements most business proposals should include. Some are absolutely essential; some are not – that depends on your specific situation. Here they are:

Does your proposal need to have all of these sections? Maybe yes, maybe not – it depends. However, all of our proposal templates have these sections out of the box. But wait - there’s one thing we haven’t mentioned on purpose.

0. The cover page

All proposals should have a well-designed cover page with an image and text to address the specific client. We’re leaving it out because all of our business proposal templates come with beautiful, professionally designed cover pages already built in.

A beautifully designed cover page can help your business stand out because it gives your entire document a level of professionalism. What’s more, it brings the wow factor that pulls clients in right off the bat.

1. The introduction

Also known as the Executive summary. Good business proposals always start with a great introduction . This is the most read part of your proposal, so it needs to get across that you understand their situation and you’re clear on their goal. Your meetings and discovery sessions should be heavily predicated on getting the information for this section of the proposal.

The biggest reason you’re not winning new business is not getting a chance to do a meeting or initial call about the job. As a result, you never discovered what the client wants to achieve, what’s important to them, and what makes them tick. And because you don’t know that information, you lead with the things that don’t matter as much (e.g., the price or the technicalities of what you’re going to do). 

This is why a discovery call is one of the most important things to include when you learn how to write a business proposal. Without it, you’re essentially guessing what the client needs.

Every business proposal needs a good introduction

Your introduction should show the client that you’ve listened to their problem and that you have the cure, which you will show them in the next section. If you want to create an ongoing relationship, you need to show that you’ve researched your client’s company.

If you want to present your clients with a custom service, this is the place to stress that. Show them how you customize your usual offer to match their exact pain point.

According to our own research, this is the most-read section of all business proposals besides the pricing. Most clients read just these two sections, so make sure that you invest extra time and care in this one.

How to write a proposal introduction

This section is also known as a summary or an executive summary, depending on your resources. Even though the title is different, everything else is the same – it’s a section where you discuss how you’re going to solve the client’s problem and present your value proposition.

The most important tip we have here is to make it all about the client and the solution to their problem. In other words, refrain from going on and on about yourself. At the end of the day, a client reading a proposal wants to know what solution you offer. And if they’re interested in your company history or the process of forming an LLC , they’ll Google it.

Make sure to keep it short and to the point. You want to keep your entire proposal easy to read and as enjoyable of an experience for your potential client as possible. 

Since the executive summary is such an important part of any standard business proposal, don’t be afraid of asking your team members to read it and give you feedback. And if you need more practical writing tips, check out our in-depth proposal introduction writing guide .  

2. The detailed specification

This part varies depending on what you’re selling. If it’s a website, this could be a list of pages and features. If you’re writing a social media marketing proposal, then this could be the strategy or the talent and credentials of your team. It’ll vary.

The basic idea is to be as detailed as possible in your offer. That way, the prospective client understands exactly how your proposed solutions work.

The reason it’s important is that if the deal goes bad, you both have this section to refer back to. Your business proposal outlines accountability and what the client should hope for. Moreover, it also serves as a good exercise for you when writing a good business proposal, as this is all the information you’re going to gather in any discovery phase of the deal.

It’s important here to keep this in plain English. Stay far away from jargon, as it will only confuse the potential client. The less the reader understands, the less they trust you.

Also, if you absolutely must write about your company, this might be the place to do it. Who you are, what you do, how long you’ve been doing it, and what makes you stand out. However, don’t spend too much time or space on this because the focus is on the client, not you.

3. The timescales

It doesn’t matter if it’s a wide bracket, like 2-4 weeks – you have to give the client some clue about your project timeline . Otherwise, it’s a massive unknown.

It can be really useful to find out if the client has a special event or another reason for a project timeline to be important to them. If there is, tie that in. You can even tie that into scarcity to give them the incentive to sign the proposal off by a certain date. And if you’re writing unsolicited proposals, you need to be especially convincing and present your project timeline in a way that will make it hard to say no to. 

Be as specific as possible, but also use this section to your advantage. More time to deliver means two things:

• You can finish earlier than promised and impress your client
• You have more time to spare if something goes unexpectedly wrong

More time is always better, but make sure that you consider the need for urgency as well.

4. The proof

You must prove to your client that you can actually deliver your proposed solution. Now, you might say, “we have examples on our website”. That’s nice – but the client is not looking at your website, they’re reading your proposal – your one big “ask” for the business. They want solid proof and a few good case studies will do.

You need to have sufficient proof in a good business proposal. This could be examples, testimonials, video case studies, screenshots from a client proving you helped them with something, a recording of a voicemail – anything.

As you can see in our business proposal example, it doesn’t have to be complex and have the production value of a Spielberg classic. It just needs to get the point across.

To help them feel like they’ll be in good hands, you can also indicate relevant credentials and certifications your team managers and members have. After all, product managers and team leaders will play a massive role in ensuring that your product or service is of top quality.

The good news is, there is more than one type of proof that you can choose. Case studies, testimonials, portfolio pieces, explainer videos – there are lots of ways to convince your clients that you’re the real deal.

5. The price

Based on our data, this is the second most read section of any business proposal – people usually jump straight from the introduction to the pricing table. Needless to say, spend some extra time here to make it look right.

When using our business proposal templates, you can choose how to format your price based on project details. That said, there are a few things you want to make sure of. 

The first is that the pricing is super clear. If you have somewhat of a confusing pricing structure, then this might be time to think about simplifying it.

Speaking of which, we’ve done some research on pricing in business proposals and you can see our results in the latest Proposal Report . As it turns out, it’s a better idea to have a single offer and price instead of trying to get more money with upsells. Proposals with a single offer sold significantly more – 20.6% for offers with upfront costs and 33% higher for offers with monthly retainer costs.

The reason is that a business proposal is a matter of getting a simple answer – yes or no. The more options you add, the more difficult it gets for them to decide whether to sign or not. Keep your responsive pricing tables super simple.

The way you format your price can help avoid further negotiations. Our analysis of real-life pricing mistakes should give you a good idea of what to avoid.

How to name your pricing section

Finally, there is one more thing that you should know about the pricing section – don’t call it that. We’ve discovered that these names work better:

• Return on investment
• And others following this pattern

Basically, you want your clients to see your services as an investment in their business, rather than a simple cost and money down the drain. Small businesses or enterprise clients, no one wants to spend money - they want to invest it.

6. The guarantee

Some people love the idea of a guarantee. Others don’t like giving guarantees for fear of abuse. However, a guarantee is a great way to push new clients further towards conversion.

Instead of a typical money-back guarantee, consider guaranteeing a part of your service or a timescale. Cheryl Laidlaw’s “Website in a Day” service is a good example. 

She, at the time of writing, charges £1,995 for the day and delivers the website THAT NIGHT. The client doesn’t go home (and neither does Cheryl) until it’s done – which is an amazing offer .

7. The next steps

A lot of times, people seem to forget the very basics – to show the client what to do next. Sure, some people might read your business proposal and say, “Great, okay, let’s go ahead”. But why would you leave it up to them to figure it out?

It’s not their job to figure out how to buy from you, especially if you’re sending informally solicited proposals. Just make sure to tell them what the next steps are. Usually, this will be something like:

Step 1: Sign the proposal by typing your name in the box below and hitting ‘Accept’. This makes the proposal a legally binding contract.

Step 2: We’ll invoice you for 50%. Please pay for this immediately.

Step 3: We’ll arrange our initial consultation call with you.

Anyone can do these tasks on their own – they’re not all that complex. The problem is that if you leave all of this unsaid, you’re leaving your clients wondering. Explain all the details of what’s going to happen next.

8. The terms and conditions

You absolutely should be including your contract or terms and conditions. Just put it on a separate page called Terms & Conditions or Terms of Business .

There’s a great contract written for freelancers which covers 98% of the basics. If you’re not using a contract in your business right now, use this until your legal team demands something better.

You should always include your terms in your business proposals because when someone signs the proposal, they automatically sign the contract . It covers you and it covers the client, so it’s only natural to include it.

Just reading the words “terms and conditions” may make you feel dizzy because of the work ahead, but it’s actually something that you can do once and never fret about again later.

A business proposal that's optimized for conversion

So let's say you've followed all the steps in the "How To Write A Business Proposal Guide," and you now have the best structured proposal on the planet, and it still loses business. Why could this be? - perhaps it's a conversion problem. We’ve analyzed hundreds of thousands of proposals sent through our platform to see what makes them convert. Here are some data-backed tips to help you.

1. Send your proposals quickly

For over four years now, sending proposals out within 24 hours of meeting the client has been the best way to increase conversion rates. According to our data, proposals that are sent out within that time frame had a 23% higher conversion rate than those sent only a day later.

2. Include a cover page

While jumping straight into the introduction won’t hurt your conversions significantly, our data shows having a cover page makes a difference. Proposals with a cover page convert 4.6% better than the ones without it.

3. Don’t go overboard

The length of a business proposal will largely depend on what you do. That said, proposals that convert the best are short, concise, and to the point. Our data backs this up, showing that the optimal proposal length has been 6-7 sections for five years now.  

4. Make sure your proposals are mobile-friendly

The number of clients opening business proposals on desktop computers has been steadily decreasing over the years. As a matter of fact, as much as 46% of proposals are now opened on mobile devices. 

You won’t get a second chance to make a first impression, and you can’t control what device your client chooses to use. So what do you do? Choose a responsive design that looks great on all screen sizes.

5. Look professional

Pixelated logos, mismatched fonts, and typos are the best way to lose credibility right off the bat. Our data shows that branding goes a long way, with proposals sent from a custom domain converting 19.3% better than the ones sent from a third-party domain.

6. Integrate live chat

Great customer service is always crucial to increasing your conversion rate. Live chat not only helps you to respond to your client's questions in real time but also puts them at ease. That’s why proposals with integrated live chat convert 18.2% better than those without it.

7. Make the offer easy to accept

The harder you make it for the client to do business with you, the more business you’re losing. With business proposals, the answer is easy - use a web-based platform like Better Proposals. That way, you’re letting clients sign documents electronically and pay, all in one place.

Using traditional PDFs sent as email attachments makes your conversion rate 88% worse. It's not a surprise when you think about it - nobody likes going through the hassle of printing, signing, scanning, and sending the document back.

Using proposal software to write, send, and track your business proposals

The truth is, rarely anyone writes proposals these days – most people use proposal software. Here’s why it’s a good idea:

• Proposal software is web-based . You can send your clients links instead of PDF files.
• Proposals are optimized for different devices. They look and feel the same on a phone, laptop or tablet.

• You get to use proposal templates . (We have more than 130 of them.)
• You can track what the client does with the proposal. You get notifications when they read, forward and sign.

• Clients can instantly sign proposals electronically. This means your proposals are considered legally binding contracts. No need for third-party tools like DocuSign or DocuSign alternatives – good proposal software has that already built in.
• Clients can pay from the proposal. Paypal, Stripe, GoCardless, you name it.

• You can use a variety of integrations . MailChimp, Zapier, Salesforce, HubSpot , or whatever else you are using in your sales workflow.
• Detailed reporting . Find out what works and what doesn’t, no guessing.

• The ability to use live chat . You can chat with the client as they’re reading the proposal, increasing your conversions.
• You get to write your proposals in 15 minutes , not 5 hours. Pull the data from your CRM and populate it with automatic fields - it’s that simple.

These are just some of the many reasons why you should consider using proposal software rather than opening Word next time you want to write an effective business proposal.

The takeaways

Whether you’re a seasoned professional or just starting a new business , following our guide will help you dramatically increase the number of people who say yes to your proposals. In summary, here are the exact steps that you need to take to write an amazing business proposal:

• Start off with a proposal template
• Find out the questions that your clients are asking
• Think of how you want the clients to feel as they read the proposal
• Include the 8 elements of a winning business proposal, as listed above
• Use proposal software to automate the writing process

One of the biggest reasons people take forever to write business proposals and ultimately do a bad job is because they are using software that simply isn’t geared up to doing the job in an effective way. It might sound like a self-serving suggestion , but you should take a look at using Better Proposals for writing your next business proposal. 

The business proposal templates in our Marketplace alone will save you a ton of time with many business proposal examples to browse, and our proposal software has everything you need for writing proposals in one place.

How many signatures can you collect in 14 days?

Proposal Rejected: 10 Common Business Proposal Mistakes and How to Fix Them

Find data-backed reasons business proposals fail and find out how to avoid making the same proposal mistakes yourself.

Business Proposal Pricing Mistakes: How (Not) to Present Your Pricing Table

Check out these real-life proposal pricing table mistakes, why they're costing you business, and what to do instead.

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How To Write A Business Plan: A Comprehensive Guide

The Startups Team

How To Write A Business Plan: A Comprehensive Guide

A comprehensive, step-by-step guide - complete with real examples - on writing business plans with just the right amount of panache to catch an investor's attention and serve as a guiding star for your business.

Introduction to Business Plans

So you've got a killer startup idea. Now you need to write a business plan that is equally killer.

You fire up your computer, open a Google doc, and stare at the blank page for several minutes before it suddenly dawns on you that,  Hm…maybe I have no idea how to write a business plan from scratch after all.

Don't let it get you down. After all, why would you know anything about business planning? For that very reason we have  4 amazing business plan samples  to share with you as inspiration.

For most founders,  writing a business plan  feels like the startup equivalent of homework. It's the thing you know you have to do, but nobody actually wants to do.

Here's the good news: writing a business plan doesn't have to be this daunting, cumbersome chore.

Once you understand the fundamental questions that your business plan should answer for your readers and how to position everything in a way that compels your them to take action, writing a business plan becomes way more approachable.

Before you set fingers to the keyboard to turn your business idea into written documentation of your organizational structure and business goals, we're going to walk you through the most important things to keep in mind (like company description, financials, and market analysis, etc.) and to help you tackle the writing process confidently — with plenty of real life business plan examples along the way to get you writing a business plan to be proud of!

Keep It Short and Simple.

There's this old-school idea that business plans need to be ultra-dense, complex documents the size of a doorstop because that's how you convey how serious you are about your company.

Not so much.

Complexity and length for complexity and length's sake is almost never a good idea, especially when it comes to writing a business plan. There are a couple of reasons for this.

1. Investors Are Short On Time

If your chief goal is using your business plan to secure funding, then it means you intend on getting it in front of an investor. And if there's one thing investors are, it's busy. So keep this in mind throughout writing a business plan.

Investors wade through hundreds of business plans a year. There's no version of you presenting an 80-page business plan to an investor and they enthusiastically dive in and take hours out of their day to pour over the thing front to back.

Instead, they're looking for you to get your point across as quickly and clearly as possible so they can skim your business plan and get to the most salient parts to determine whether or not they think your opportunity is worth pursuing (or at the very least initiating further discussions).

You should be able to refine all of the key value points that investors look for to 15-20 pages (not including appendices where you will detail your financials). If you find yourself writing beyond that, then it's probably a case of either over explaining, repeating information, or including irrelevant details in your business plan (you don't need to devote 10 pages to how you're going to set up your website, for example).

Bottom line: always be on the lookout for opportunities to “trim the fat" while writing a business plan (and pay special attention to the executive summary section below), and you'll be more likely to secure funding.

2. Know Your Audience

If you fill your business plan with buzzwords, industry-specific jargon or acronyms, and long complicated sentences, it might make sense to a handful of people familiar with your niche and those with superhuman attention spans (not many), but it alienates the vast majority of readers who aren't experts in your particular industry. And if no one can understand so much as your company overview, they won't make it through the rest of your business plan.

Your best bet here is to use simple, straightforward language that's easily understood by anyone — from the most savvy of investor to your Great Aunt Bertha who still uses a landline.

How To Format Your Business Plan

You might be a prodigy in quantum mechanics, but if you show up to your interview rocking cargo shorts and lime green Crocs, you can probably guess what the hiring manager is going to notice first.

In the same way,  how  you present your business plan to your readers equally as important as what you present to them. So don't go over the top with an extensive executive summary, or get lazy with endless bullet points on your marketing strategy.

If your business plan is laden with inconsistent margins, multiple font types and sizes, missing headings and page numbers, and lacks a table of contents, it's going to create a far less digestible reading experience (and totally take away from your amazing idea and hours of work writing a business plan!)

While there's no one  right  way to format your business plan, the idea here is to ensure that it presents professionally. Here's some easy formatting tips to help you do just that.

If your margins are too narrow, it makes the page look super cluttered and more difficult to read.

A good rule of thumb is sticking to standard one-inch margins all around.

Your business plan is made up of several key sections, like chapters in a book.

Whenever you begin a section (“Traction” for example) you'll want to signify it using a header so that your reader immediately knows what to expect from the content that follows.

This also helps break up your content and keep everything nice and organized in your business plan.

Subheadings

Subheadings are mini versions of headings meant to break up content within each individual section and capture the attention of your readers to keep them moving down the page.

In fact, we're using sub-headers right now in this section for that very purpose!

Limit your business plan to two typefaces (one for headings and one for body copy and subheadings, for example) that you can find in a standard text editor like Microsoft Word or Google Docs.

Only pick fonts that are easy to read and contain both capital and lowercase letters.

Avoid script-style or jarring fonts that distract from the actual content. Modern, sans-serif fonts like Helvetica, Arial, and Proxima Nova are a good way to go.

Keep your body copy between 11 and 12-point font size to ensure readability (some fonts are more squint-inducing than others).

You can offset your headings from your body copy by simply upping the font size and by bolding your subheadings.

Sometimes it's better to show instead of just tell.

Assume that your readers are going to skim your plan rather than read it word-for-word and treat it as an opportunity to grab their attention with color graphics, tables, and charts (especially with financial forecasts), as well as product images, if applicable.

This will also help your reader better visualize what your business model is all about.

Need some help with this?

Our  business planning wizard  comes pre-loaded with a modular business plan template that you can complete in any order and makes it ridiculously easy to generate everything you need from your value proposition, mission statement, financial projections, competitive advantage, sales strategy, market research, target market, financial statements, marketing strategy, in a way that clearly communicates your business idea.

Refine Your Business Plans. Then Refine Them Some More.

Your business isn't static, so why should your business plan be?

Your business strategy is always evolving, and so are good business plans. This means that the early versions of your business plans probably won't (and shouldn't be) your last. The details of even even the best business plans are only as good as their last update.

As your business progresses and your ideas about it shift, it's important revisit your business plan from time to time to make sure it reflects those changes, keeping everything as accurate and up-to-date as possible. What good is market analysis if the market has shifted and you have an entirely different set of potential customers? And what good would the business model be if you've recently pivoted? A revised business plan is a solid business plan. It doesn't ensure business success, but it certainly helps to support it.

This rule especially holds true when you go about your market research and learn something that goes against your initial assumptions, impacting everything from your sales strategy to your financial projections.

At the same time, before you begin shopping your business plan around to potential investors or bankers, it's imperative to get a second pair of eyes on it after you've put the final period on your first draft.

After you run your spell check, have someone with strong “English teacher skills” run a fine-tooth comb over your plan for any spelling, punctuation, and grammatical errors you may have glossed over. An updated, detailed business plan (without errors!) should be constantly in your business goals.

More than that, your trusty business plan critic can also give you valuable feedback on how it reads from a stylistic perspective. While different investors prefer different styles, the key here is to remain consistent with your audience and business.

Writing Your Business Plan: A Section-By-Section Breakdown

We devoted an entire article carefully breaking down the  key components of a business plan  which takes a comprehensive look of what each section entails and why.

If you haven't already, you should check that out, as it will act as the perfect companion piece to what we're about to dive into in a moment.

For our purposes here, we're going to look at a few real world business plan examples (as well as one of our own self-penned “dummy” plans) to give you an inside look at how to position key information on a section-by-section basis.

1. Executive Summary

Quick overview.

After your Title Page — which includes your company name, slogan (if applicable), and contact information — and your Table of Contents, the Executive Summary will be the first section of actual content about your business.

The primary goal of your Executive Summary is to provide your readers with a high level overview of your business plan as a whole by summarizing the most important aspects in a few short sentences. Think of your Executive Summary as a kind of “teaser” for your business concept and the information to follow — information which you will explain in greater detail throughout your plan. This isn't the place for your a deep dive on your competitive advantages, or cash flow statement. It is an appropriate place to share your mission statement and value proposition.

Executive Summary Example

Here's an example of an Executive Summary taken from a sample business plan written by the Startups.com team for a fictional company called Culina. Here, we'll see how the Executive Summary offers brief overviews of the  Product ,  Market Opportunity ,  Traction , and  Next Steps .

Culina Tech specializes in home automation and IoT technology products designed to create the ultimate smart kitchen for modern homeowners.

Our flagship product, the Culina Smart Plug, enables users to make any kitchen appliance or cooking device intelligent. Compatible with all existing brands that plug into standard two or three-prong wall outlets, Culina creates an entire network of Wi-Fi-connected kitchen devices that can be controlled and monitored remotely right from your smartphone.

The majority of US households now spend roughly 35% of their energy consumption on appliances, electronics, and lighting.  With the ability to set energy usage caps on a daily, weekly or monthly basis, Culina helps homeowners stay within their monthly utility budget through more efficient use of the dishwasher, refrigerator, freezer, stove, and other common kitchen appliances.

Additionally, 50.8% of house fires are caused in the kitchen — more than any other room in the home — translating to over $5 billion in property damage costs per year.  Culina provides the preventative intelligence necessary to dramatically reduce kitchen-related disasters and their associated costs and risk of personal harm.

Our team has already completed the product development and design phase, and we are now ready to begin mass manufacturing. We've also gained a major foothold among consumers and investors alike, with 10,000 pre-ordered units sold and $5 million in investment capital secured to date.

We're currently seeking a $15M Series B capital investment that will give us the financial flexibility to ramp up hardware manufacturing, improve software UX and UI, expand our sales and marketing efforts, and fulfill pre-orders in time for the 2018 holiday season.

2. Company Synopsis

Your Company Synopsis section answers two critically important questions for your readers: What painful  PROBLEM  are you solving for your customers? And what is your elegant  SOLUTION  to that problem? The combination of these two components form your value proposition.

Company Synopsis Example

Let's look at a real-life company description example from  HolliBlu * — a mobile app that connects healthcare facilities with local skilled nurses — to see how they successfully address both of these key aspects.  *Note: Full disclosure; Our team worked directly with this company on their business plan via Fundable.

Notice how we get a crystal clear understanding of why the company exists to begin with when they set up the  problem  — that traditional nurse recruitment methods are costly, inconvenient, and time-consuming, creating significant barriers to providing quality nursing to patients in need.

Once we understand the painful problem that HolliBlu's customers face, we're then directly told how their  solution  links back directly to that problem — by creating an entire community of qualified nurses and directly connecting them with local employers more cost-effectively and more efficiently than traditional methods.

3. Market Overview

Your Market Overview provides color around the industry that you will be competing in as it relates to your product/service.

This will include statistics about industry size, [growth](https://www.startups.com/library/expert-advice/the-case-for-growing-slowly) rate, trends, and overall outlook. If this part of your business plan can be summed up in one word, it's  research .

The idea is to gather as much raw data as you can to make the case for your readers that:

This is a market big enough to get excited about.

You can capture a big enough share of this market to get excited about.

Target Market Overview Example

Here's an example from HolliBlu's business plan:

HolliBlu's Market Overview hits all of the marks — clearly laying out the industry size ($74.8 billion), the Total Addressable Market or TAM (3 million registered nurses), industry growth rate (581,500 new RN jobs through 2018; $355 billion by 2020), and industry trends (movement toward federally-mandated compliance with nurse/patient ratios, companies offering sign-on bonuses to secure qualified nurses, increasing popularity of home-based healthcare).

4. Product (How it Works)

Where your Company Synopsis is meant to shed light on why the company exists by demonstrating the problem you're setting out to solve and then bolstering that with an impactful solution, your Product or How it Works section allows you to get into the nitty gritty of how it actually delivers that value, and any competitive advantage it provides you.

Product (How it Works) Example

In the below example from our team's Culina sample plan, we've divided the section up using subheadings to call attention to product's  key features  and how it actually works from a user perspective.

This approach is particularly effective if your product or service has several unique features that you want to highlight.

5. Revenue Model

Quite simply, your Revenue Model gives your readers a framework for how you plan on making money. It identifies which revenue channels you're leveraging, how you're pricing your product or service, and why.

Revenue Model Example

Let's take a look at another real world business plan example with brewpub startup  Magic Waters Brewpub .*

It can be easy to get hung up on the financial aspect here, especially if you haven't fully developed your product yet. And that's okay. *Note: Full disclosure; Our team worked directly with this company on their business plan via Fundable.

The thing to remember is that investors will want to see that you've at least made some basic assumptions about your monetization strategy.

6. Operating Model

Your Operating Model quite simply refers to how your company actually runs itself. It's the detailed breakdown of the processes, technologies, and physical requirements (assets) that allow you to deliver the value to your customers that your product or service promises.

Operating Model Example

Let's say you were opening up a local coffee shop, for example. Your Operating Model might detail the following:

Information about your facility (location, indoor and outdoor space features, lease amount, utility costs, etc.)

The equipment you need to purchase (coffee and espresso machines, appliances, shelving and storage, etc.) and their respective costs.

The inventory you plan to order regularly (product, supplies, etc.), how you plan to order it (an online supplier) and how often it gets delivered (Mon-Fri).

Your staffing requirements (including how many part or full time employees you'll need, at what wages, their job descriptions, etc.)

In addition, you can also use your Operating Model to lay out the ways you intend to manage the costs and efficiencies associated with your business, including:

The  Critical Costs  that make or break your business. In the case of our coffee shop example, you might say something like,

“We're estimating the marketing cost to acquire a customer is going to be $25.  Our average sale is $45.  So long as we can keep our customer acquisition costs below $25 we will have enough margin to grow with.”

Cost Maturation & Milestones  that show how your Critical Costs might fluctuate over time.

“If we sell 50 coffees a day, our average unit cost will be $8 on a sale of $10.  At that point we're barely breaking even. However as we scale up to 200 coffees a day, our unit costs drop significantly to $4, creating a 100% increase in net income.”

Investment Costs  that highlight strategic uses of capital that will have a big Return on Investment (ROI) later.

“We're investing $100,000 into a revolutionary new coffee brewing system that will allow us to brew twice the amount our current output with the same amount of space and staff.”

Operating Efficiencies  explaining your capability of delivering your product or service in the most cost effective manner possible while maintaining the highest standards of quality.

“By using energy efficient Ecoboilers, we're able to keep our water hot while minimizing the amount of energy required. Our machines also feature an energy saving mode. Both of these allow us to dramatically cut energy costs.”

7. Competitive Analysis

Like the Market Overview section, you want to show your readers that you've done your homework and have a crazy high level of awareness about your current competitors or any potential competitors that may crop up down the line for your given business model.

When writing your Competitive Analysis, your overview should cover  who  your closest competitors are, the chief  strengths  they bring to the table, and their biggest  weaknesses .

You'll want to identify at least 3 competitors — either direct, indirect, or a combination of the two. It's an extremely important aspect of the business planning process.

Competition Analysis Example

Here's an example of how HolliBlu lays out their Competitive Analysis section for just one of their competitors, implementing each of the criteria noted above:

8. Customer Definition

Your Customer Definition section allows you to note which customer segment(s) you're going after, what characteristics and habits each customer segment embodies, how each segment uniquely benefits from your product or service, and how all of this ties together to create the ideal portrait of an actual paying customer, and how you'll cultivate and manage customer relationships.

Customer Definition Example

HolliBlu's Customer Definition section is effective for several reasons. Let's deconstruct their first target market segment, hospitals.

What's particularly successful here is that we are explained why hospitals are optimal buyers.

They accomplish this by harkening back to the central problem at the core of the opportunity (when hospitals can't supply enough staff to meet patient demands, they have to resort on costly staffing agencies).

On top of that, we are also told how  big  of an opportunity going after this customer segment represents (5,534 hospitals in the US).

This template is followed for each of the company's 3 core customer segments. This provides consistency, but more than that, it emphasizes how diligent research reinforces their assumptions about who their customers are and why they'd open their wallets. Keep all of this in mind when you are write your own business plan.

9. Customer Acquisition

Now that you've defined who your customers are for your readers, your Customer Acquisition section will tell them what marketing and sales strategy and tactics you plan to leverage to actually reach the target market (or target markets) and ultimately convert them into paying customers.

marketing Strategy Example

Similar to the exercise you will go through with your Revenue Model, in addition to identifying  which  channels you're pursuing, you'll also want to detail all of relevant costs associated with your customer acquisition channels.

Let's say you spent $100 on your marketing plan to acquire 100 customers during 2018. To get your CAC, you simply divide the number of customers acquired by your spend, giving you a $1.00 CAC.

10. Traction

This one's huge. Traction tells investors one important thing: that you're business has momentum. It's evidence that you're making forward progress and hitting milestones. That things are happening. It's one of the most critical components of a successful business plan.

Why is this so important? Financial projections are great and all, but if you can prove to investors that your company's got legs before they've even put a dime into it, then it will get them thinking about all the great things you'll be able to accomplish when they do bankroll you.

Traction Example

In our Culina Traction section, we've called attention to several forms of traction, touching on some of the biggest ones that you'll want to consider when writing your own plan.

Have I built or launched my product or service yet?

Have I reached any customers yet?

Have I generated any revenue yet?

Have I forged any strategic industry relationships that will be instrumental in driving growth?

The key takeaway here: the more traction you can show, the more credibility you build with investors. After all, you can't leave it all on market analysis alone.

11. Management Team

Here's what your Management Team section isn't: it's not an exhaustive rundown of each and every position your team members have held over the course of their lives.

Instead, you should tell investors which aspects of your team's experience and expertise directly translates to the success of  this  company and  this  industry.

In other words, what applicable, relevant background do they bring to the table?

Management Team Example

Let's be real. The vast majority of startup teams probably aren't stacked with Harvard and Stanford grads. But the thing to home in on is how the prior experience listed speaks directly to how it qualifies that team member's current position.

The word of the day here is relevancy. If it's not relevant, you probably don't need to include it in your typical business plan.

12. Funding

Funding overview.

The ask! This is where you come out and, you guessed it,  ask  your investors point blank how much money you need to move your business forward, what specific milestones their investment will allow you to reach, how you'll allocate the capital you secure, and what the investor will get in exchange for their investment.

You can also include information about your  exit strategy  (IPO, acquisition, merger?).

Funding Example

While we've preached against redundancy in your business plan, an exception to the rule is using the Funding section to offer up a very brief recap that essentially says, “here are the biggest reasons you should invest in my company and why it will ultimately benefit you.”

13. Financials

Spreadsheets and numbers and charts, oh my! Yes, it's everybody's “favorite” business plan section: Financials.

Your Financials section will come last and contain all of the forecasted numbers that say to investors that this is a sound investment. This will include things like your sales forecast, expense budget, and break-even analysis. A lot of this will be assumptions, or estimates.

The key here is keeping those estimates as realistic as humanly possible by breaking your figures into components and looking at each one individually.

Financials Example

The balance sheet above illustrates the business' estimated net worth over a three-year period by summarizing its assets (tangible objects owned by the company), liabilities (debt owed to a creditor of the company), and shareholders' equity (source of financing used to fund the assets).

In plain words, the balance sheet is basically a snapshot of your business' financial status by laying out what you own and owe, helping investors determine the level of risk involved and giving them a good understanding of the financial health of the business.

If you're looking to up your game from those outdated Excel-style spreadsheets,  our business planning software  will help you create clean, sleek, modern financial reports the modern way. Plus, it's as easy to use as it is attractive to look at. You might even find yourself enjoying financial projections, building a cash flow statement, and business planning overall.

You've Got This!

You've committed to writing your business plan and now you've got some tricks of the trade to help you out along the way. Whether you're applying for a business loan or seeking investors, your well-crafted business plan will act as your Holy Grail in helping take your business goals to the next plateau.

This is a ton of work. It's not a few hours and a free business plan template. It's not just a business plan software. We've been there before. Writing your [business plan](https://www.startups.com/library/expert-advice/top-4-business-plan-examples) is just one small step in startup journey. There's a whole long road ahead of you filled with a marketing plan, investor outreach, chasing venture capitalists, actually getting funded, and growing your business into a successful company.

And guess what? We've got helpful information on all of it — and all at your disposal! We hope this guides you confidently on how to write a business plan worth bragging about.

Ronald Calderon

Great info for feedback my current business plan!

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How to write a business plan in seven simple steps

When written effectively, a business plan can help raise capital, inform decisions, and draw new talent.

Companies of all sizes have one thing in common: They all began as small businesses.  Starting small  is the corner for those just getting off the ground. Learn about how to make that first hire, deal with all things administrative, and set yourself up for success.

Writing a business plan is often the first step in transforming your business from an idea into something tangible . As you write, your thoughts begin to solidify into strategy, and a path forward starts to emerge. But a business plan is not only the realm of startups; established companies can also benefit from revisiting and rewriting theirs. In any case, the formal documentation can provide the clarity needed to motivate staff , woo investors, or inform future decisions.  

No matter your industry or the size of your team, the task of writing a business plan—a document filled with so much detail and documentation—can feel daunting. Don’t let that stop you, however; there are easy steps to getting started. 

What is a business plan and why does it matter? 

A business plan is a formal document outlining the goals, direction, finances, team, and future planning of your business. It can be geared toward investors, in a bid to raise capital, or used as an internal document to align teams and provide direction. It typically includes extensive market research, competitor analysis, financial documentation, and an overview of your business and marketing strategy. When written effectively, a business plan can help prescribe action and keep business owners on track to meeting business goals. 

Who needs a business plan?

A business plan can be particularly helpful during a company’s initial growth and serve as a guiding force amid the uncertainty, distractions, and at-times rapid developments involved in starting a business . For enterprise companies, a business plan should be a living, breathing document that guides decision-making and facilitates intentional growth.

“You should have a game plan for every major commitment you’ll have, from early-stage founder agreements to onboarding legal professionals,” says Colin Keogh, CEO of the Rapid Foundation—a company that brings technology and training to communities in need—and a WeWork Labs mentor in the UK . “You can’t go out on funding rounds or take part in accelerators without any planning.”

How to make a business plan and seven components every plan needs

While there is no set format for writing a business plan, there are several elements that are typically included. Here’s what’s important to consider when writing your business plan. 

1. Executive summary 

No longer than half a page, the executive summary should briefly introduce your business and describe the purpose of the business plan. Are you writing the plan to attract capital? If so, specify how much money you hope to raise, and how you’re going to repay the loan. If you’re writing the plan to align your team and provide direction, explain at a high level what you hope to achieve with this alignment, as well as the size and state of your existing team.

The executive summary should explain what your business does, and provide an introductory overview of your financial health and major achievements to date.  

2. Company description 

To properly introduce your company, it’s important to also describe the wider industry. What is the financial worth of your market? Are there market trends that will affect the success of your company? What is the state of the industry and its future potential? Use data to support your claims and be sure to include the full gamut of information—both positive and negative—to provide investors and your employees a complete and accurate portrayal of your company’s milieu. 

Go on to describe your company and what it provides your customers. Are you a sole proprietor , LLC, partnership, or corporation? Are you an established company or a budding startup? What does your leadership team look like and how many employees do you have? This section should provide both historical and future context around your business, including its founding story, mission statement , and vision for the future. 

It’s essential to showcase your point of difference in your company description, as well as any advantages you may have in terms of expert talent or leading technology. This is typically one of the first pieces of the plan to be written.

3. Market analysis and opportunity

Research is key in completing a business plan and, ideally, more time should be spent on research and analysis than writing the plan itself. Understanding the size, growth, history, future potential, and current risks inherent to the wider market is essential for the success of your business, and these considerations should be described here. 

In addition to this, it’s important to include research into the target demographic of your product or service. This might be in the form of fictional customer personas, or a broader overview of the income, location, age, gender, and buying habits of your existing and potential customers. 

Though the research should be objective, the analysis in this section is a good place to reiterate your point of difference and the ways you plan to capture the market and surpass your competition.

4. Competitive analysis 

Beyond explaining the elements that differentiate you from your competition, it’s important to provide an in-depth analysis of your competitors themselves.

This research should delve into the operations, financials, history, leadership, and distribution channels of your direct and indirect competitors. It should explore the value propositions of these competitors, and explain the ways you can compete with, or exploit, their strengths and weaknesses. 

5. Execution plan: operations, development, management 

This segment provides details around how you’re going to do the work necessary to fulfill this plan. It should include information about your organizational structure and the everyday operations of your team, contractors, and physical and digital assets.

Consider including your company’s organizational chart, as well as more in-depth information on the leadership team: Who are they? What are their backgrounds? What do they bring to the table? Potentially include the résumés of key people on your team. 

For startups, your execution plan should include how long it will take to begin operations, and then how much longer to reach profitability. For established companies, it’s a good idea to outline how long it will take to execute your plan, and the ways in which you will change existing operations.

If applicable, it’s also beneficial to include your strategy for hiring new team members and scaling into different markets. 

6. Marketing plan 

It’s essential to have a comprehensive marketing plan in place as you scale operations or kick off a new strategy—and this should be shared with your stakeholders and employees. This segment of your business plan should show how you’re going to promote your business, attract customers, and retain existing clients.

Include brand messaging, marketing assets, and the timeline and budget for engaging consumers across different channels. Potentially include a marketing SWOT analysis into your strengths, weaknesses, opportunities, and threats. Evaluate the way your competitors market themselves, and how your target audience responds—or doesn’t respond—to these messages.

7. Financial history and projections  

It’s essential to disclose all finances involved in running your company within your business plan. This is so your shareholders properly understand how you’re projected to perform going forward, and the progress you’ve made so far. 

You should include your income statement, which outlines annual net profits or losses; a cash flow statement, which shows how much money you need to launch or scale operations; and a balance sheet that shows financial liabilities and assets. 

“An income statement is the measure of your financial results for a certain period and the most accurate report of business activities during that time, [whereas a balance sheet] presents your assets, liabilities, and equity,” Amit Perry, a corporate finance expert, explained at a WeWork Labs educational session in Israel.

It’s crucial to understand the terms correctly so you know how to present your finances when you’re speaking to investors. Amit Perry, CEO and founder of Perryllion Ltd.

In addition, if you’re asking for funding, you will need to outline exactly how much money you need as well as where this money will go and how you plan to pay it back. 

12 quick tips for writing a business plan 

Now that you know what components are traditionally included in a business plan, it’s time to consider how you’ll actually construct the document.

Here are 12 key factors to keep in mind when writing a business plan. These overarching principles will help you write a business plan that serves its purpose (whatever that may be) and becomes an easy reference in the years ahead. 

1. Don’t be long-winded

Use clear, concise language and avoid jargon. When business plans are too long-winded, they’re less likely to be used as intended and more likely to be forgotten or glazed over by stakeholders. 

2. Show why you care

Let your passion for your business shine through; show employees and investors why you care (and why they should too). 

3. Provide supporting documents

Don’t be afraid to have an extensive list of appendices, including the CVs of team members, built-out customer personas, product demonstrations, and examples of internal or external messaging. 

4. Reference data

All information regarding the market, your competitors, and your customers should reference authoritative and relevant data points.  

5. Research, research, research

The research that goes into your business plan should take you longer than the writing itself. Consider tracking your research as supporting documentation. 

6. Clearly demonstrate your points of difference

At every opportunity, it’s important to drive home the way your product or service differentiates you from your competition and helps solve a problem for your target audience. Don’t shy away from reiterating these differentiating factors throughout the plan. 

7. Be objective in your research

As important as it is to showcase your company and the benefits you provide your customers, it’s also important to be objective in the data and research you reference. Showcase the good and the bad when it comes to market research and your financials; you want your shareholders to know you’ve thought through every possible contingency. 

8. Know the purpose of your plan

It’s important you understand the purpose of your plan before you begin researching and writing. Be clear about whether you’re writing this plan to attract investment, align teams, or provide direction. 

9. Identify your audience

The same way your business plan must have a clearly defined purpose, you must have a clearly defined audience. To whom are you writing? New investors? Current employees? Potential collaborators? Existing shareholders? 

Related articles

10. Avoid jargon

Avoid using industry-specific jargon, unless completely unavoidable, and try making your business plan as easy to understand as possible—for all potential stakeholders. 

11. Don’t be afraid to change it

Your business plan should evolve with your company’s growth, which means your business plan document should evolve as well. Revisit and rework your business plan as needed, and remember the most important factor: having a plan in place, even if it changes.

A business plan shouldn’t just be a line on your to-do list; it should be referenced and used as intended going forward. Keep your business plan close, and use it to inform decisions and guide your team in the years ahead. 

Creating a business plan is an important step in growing your company 

Whether you’re just starting out or running an existing operation, writing an effective business plan can be a key predictor of future success. It can be a foundational document from which you grow and thrive . It can serve as a constant reminder to employees and clients about what you stand for, and the direction in which you’re moving. Or, it can prove to investors that your business, team, and vision are worth their investment. 

No matter the size or stage of your business, WeWork can help you fulfill the objectives outlined in your business plan—and WeWork’s coworking spaces can be a hotbed for finding talent and investors, too. The benefits of coworking spaces include intentionally designed lounges, conference rooms, and private offices that foster connection and bolster creativity, while a global network of professionals allows you to expand your reach and meet new collaborators. 

Using these steps to write a business plan will put you in good stead to not only create a document that fulfills a purpose but one that also helps to more clearly understand your market, competition, point of difference, and plan for the future. 

For more tips on growing teams and building a business, check out all our articles on  Ideas by WeWork.

Caitlin Bishop is a writer for WeWork’s  Ideas by WeWork , based in New York City. Previously, she was a journalist and editor at  Mamamia  in Sydney, Australia, and a contributing reporter at  Gotham Gazette .

Should you send that follow-up? Get your answer by discovering the best practices for pitching to investors.

If you’ve been asking questions like, how will I know when I find a product market fit? How long should I explore before launching? Or what should I initially price my product? These are all questions that founders have asked, and below are the answers from the founders who’ve figured it out.

Tom Hewitson, Chief AI Officer at leading AI training company General Purpose , offers tips for small businesses

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A step-by-step guide to writing a pest control business plan

GorillaDesk Staff

Imagine you get a call from a homeowner who can’t get rid of their ant problem. Once on site, your technician discovers the hidden colony and gets to work solving the root of the problem.

This is the same game-changing discovery that a comprehensive pest control business plan can uncover for your company. By creating a business plan, you can identify any inefficiencies that are costing you money, then take action to treat the problem.

Removing these issues boosts your pest control business profit margin and sets the stage for healthy business growth. Get ready to conduct a deep inspection of your company and learn how to create a pest control business plan, plus how to make your business stand out to investors.

What is a pest control business plan?

Your pest control business plan is a comprehensive document that outlines your goals, strategies, and operational plans. It acts as a roadmap for starting your pest control business and expanding it in the future, and it can even help you secure funding if you need it.

Why do you need a business plan?

Along with acting as a guide for growing your company, a business plan is essential for finding investors and securing funding. Here’s why:

• It shows credibility: Potential lenders can refer to your business plan to see how well you’ve thought out your idea and developed a roadmap to becoming a successful pest control business.
• It shows profitability: Investors tend to avoid risk, and a business plan shows them that investing in your pest control company is anything but risky. Detailed financial projections, income statements, and balance sheets help convince investors that your business is stable and successful.
• It shows you’re prepared: Business plans also include your company’s weaknesses and how you’ll address them. This can boost lenders’ confidence in your success—and also gives you a solid starting point for managing those risks.

You can think of your business plan as a demonstration of your capability as an owner and the viability of your small business idea.

How to write a pest control business plan

Your pest control business plan should include these essential elements:

Executive summary

Your executive summary is a snapshot of your entire business plan. It should summarize your business mission, the services you offer, and your market analysis results. It should also engage your readers—especially since investors may use your summary to decide whether they should continue reading the rest of your business plan.

Your executive summary can also include: 

• Market opportunity: A summary of your market research and competitor and customer analyses
• Products and services offered: A full list of your product and service offerings
• Marketing and sales strategies: A quick look at how you plan to engage and sell to customers
• Financial highlights: Your current and projected finances, such as projected net profit, initial startup costs, and break-even time frame for operating costs

You might find it easier to write the executive summary last since its contents depend on other sections of your business plan.

Company overview

Your company overview is your first chance to dive into the details of what makes your business unique. Include information about the types of pest control services you offer, such as commercial or residential pest control, and any specialties, like organic chemicals or fumigation.

Additionally, use this section to answer questions like:

• Why did you start your business?
• What’s your mission statement?
• What milestones, like the number of customers served, amount of revenue, or number of new hires, have you achieved to date?
• What is your business’s legal structure, such as an S-Corp, LLC, or sole proprietorship?

You can also give investors insight into your future goals for your business here.

Industry analysis

You should already know a lot about your local pest control market. Gathering this knowledge helps you create a pest control marketing strategy , get familiar with your competitors and their strategies, and understand any trends affecting the pest control industry.

You’ll want to provide the following details in your industry analysis section: 

• Target market: Describe your target market, its growth projections, and the total potential market size for your pest control business.
• Competitors: What pest control businesses also operate in the same target market?
• Suppliers: What companies are the primary suppliers for you and your competitors?
• Trends: Have you noticed any trends that have affected your industry? These could be changing customer preferences or new technology like AI.

This information improves your ability to make strategic business decisions and shows lenders you’re an industry expert.

Customer analysis

This section identifies the customers you currently serve and future new customers. If you provide multiple types of services, you can break this section down into customer segments like residential customers, government customers, and commercial customers.

Include customer profiles, or personas, in this section to cover demographic information like: 

• Family or business size
• Marital status
• Homeownership
• Income levels or company budget
• Job titles and roles
• Interests and hobbies

You’ll also want to create psychographic profiles of your customers. These explain customers’ attitudes, beliefs, wants, needs, pain points, and potential objections.

Competitive analysis

Here, you’ll go over both indirect and direct competitors to your business. 

Indirect competition can include DIY pest control tools like ant baits or rodent traps that customers can purchase at the store. 

Direct competition includes other pest control businesses that offer the same or similar services in your target market.

You’ll need to provide additional details about your direct competitors here as well. Dig around to identify the following:

• What customers do they serve?
• What services do they provide?
• What pest control prices do they charge?
• What pricing strategies, like referral discounts or tiered plans, do they offer?
• What do they excel at?
• What are their weaknesses?

Finally, you’ll want to share your pest control business’ competitive advantage. Your “thing” could include services or treatment methods that competitors don’t offer, having a more experienced team of technicians, or offering high-quality customer service.

Marketing plan

Your marketing plan details your strategies for the following: 

• Your unique value proposition (UVP)
• Your products and services
• Prices and pricing strategies
• Place, or the location of your business and how it affects your success
• Promotion, or how you’ll reach potential customers through different methods like ads, social media, or search engine optimization

When explaining your promotion strategies, don’t forget to include both online and offline approaches like pest control ads, billboards, and direct mail.

You should also note any strategies to improve customer retention. Long-term customers can boost your profitability and show potential investors there’s less risk in funding your pest control startup.

Operations plan

Your operations plan section walks investors through your daily business operations, such as:

• Creating estimates
• Customer service
• Inventory management

Additionally, your operations plan should feature a list of business goals, or milestones, you want to achieve along with the dates you hope to achieve them. Some ideas include: 

• Reaching a certain amount of revenue
• Building a website
• Obtaining a business loan
• Purchasing new equipment or supplies
• Training staff
• Signing contracts with a certain number of customers

Think of these as long-term goals that indicate your business is headed in the right direction.

Management and team

Here, you’ll describe your management and team, their qualifications, and their roles. You can also note any pest control licenses certain technicians obtained or whether they have prior pest control experience.

If your team is small or lacks certain skills, you can build an advisory board to bring on external stakeholders to share their industry knowledge and help you grow your business.

Financial plan

The last section of your pest control business plan covers your financial plan for at least the next five years. It details your startup costs, revenue projections, and break-even analysis to show potential lenders the financial health of your business.

Important documents to share in your financial plan section include: 

• Profit and loss statement: Also called an income statement or P&L, this document shows your revenue, expenses, and final profit.
• Cash flow statement: Your cash flow statement helps you understand how much money you need to run or grow your business. It’s a critical part of planning that ensures you never run out of money.
• Balance sheets: Your balance sheets should detail your assets, like current marketing campaigns to target new service areas, and liabilities, like loans you need to pay back.

Include financial statements for each month and quarter, your first year, and each year after that. You should also include information about any current funding sources, like your personal savings or existing loans and investors.

5 tips to help your pest control business stand out

From thoughtfully crafted strategies to efficiency-boosting tools, gain investor interest with these tips:

1. Develop a UVP

Your UVP tells investors why your business is different—and possibly better—than your competitors’. A strong UVP can attract investors looking to differentiate their portfolios.

Some potential starting points for your pest control business UVP include:

• Specialty services, like bed bug or termite treatments
• Eco-friendly pest control solutions
• Child- and pet-friendly treatments

You can also point to your team’s excellent customer service or comprehensive pest treatments as features that set your business apart.

2. Improve operational efficiency

Using GorillaDesk helps you manage time-consuming tasks like scheduling and dispatching. ( Source )

Your operational efficiency directly impacts your bottom line. Using tools like GorillaDesk to optimize routes and technician schedules can reduce expenses and technician downtime while also shortening the amount of time it takes for payments to arrive by automating your invoices.

3. Promote your services

Let potential customers know you’re available to help them with pest problems by promoting your business both online and offline. 

Offline promotional strategies include billboards, flyers, and postcards with your business information, services, and any special offers.

Online strategies include running ads on platforms like Google Ads , setting up and optimizing your pest control website , and posting on social media .

You should also claim any business listing profiles like Yelp to provide the most up-to-date information and address customer questions.

4. Create excellent customer experiences

GorillaDesk makes it easy to ask customers to leave a review on your online business listings. ( Source )

Positive experiences drive customers to write a good review, with 38% of consumers in 2024 saying they write reviews when they have a good experience . And with 33% of U.S. consumers always checking local business reviews , this means providing review-inspiring experiences is essential for promoting your business.

But it’s not just customers who are watching. Investors also want to know if your business can grow through referrals and whether you can maintain a predictable cash flow thanks to higher customer loyalty.

Word-of-mouth marketing through sources like reviews can also strengthen your brand reputation—especially if you respond to customer reviews. Software like GorillaDesk makes it easy to capture customer thoughts and recommendations by automating your pest control review strategy . Once you complete a job, the software includes a note asking customers to leave you a review.

5. Provide essential training

Training your pest control technicians and office staff benefits them and your company in the following ways:

• Improved service quality
• Increased efficiency
• Improved compliance and risk mitigation
• More customer satisfaction and trust
• Increased upselling opportunities

Prioritizing training also shows investors that you’re committed to long-term growth.

Take your pest control business to the next level with GorillaDesk

Built with service businesses like yours in mind, GorillaDesk includes a handful of features designed to make your life easier. 

Invite customers to use the portal to review estimates and select a service, leave reviews for your business, and request future treatments. When it’s time for your technicians to hit the road, GorillaDesk streamlines your scheduling and routing to speed up arrival times and save on gas. Finally, you can automate your billing and invoices so customers always have the latest cost information—and you can accept payments in the field.

All of these efficiencies quickly add up to make your business an attractive investment for lenders and investors. Find out why GorillaDesk is an essential tool for pest control business owners like you. Start your 14-day free trial now .

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Kamala harris plan to tax unrealized capital gain is scary, here’s why.

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RALEIGH, NORTH CAROLINA - AUGUST 16: Democratic U.S. presidential candidate Vice President Kamala ... [+] Harris speaks on her policy platform, including improving the cost of living for all Americans, at the Hendrick Center For Automotive Excellence on August 16, 2024 in Raleigh, North Carolina. This is the candidate's first major policy speech since accepting the democratic party nomination.(Photo by Grant Baldwin/Getty Images)

As a presidential candidate, Vice President Harris has piggybacked on many of President Biden’s tax plans, including his pledge not to raise taxes on anyone making under $400,000 a year . But she has plenty of other big plans for your taxes listed here that reprise Biden’s tax goals, with some of her own ideas thrown in.

They include raising top marginal rates on the top earners from 37% to 39.6%. In 2019, she floated a 4% “income-based premium” on households making more than $100,000 to pay for Medicare for All, but this has not yet resurfaced in 2024. Among the more controversial of the Biden proposals—which Harris has repeated—is a tax on unrealized capital gains for taxpayers with wealth greater than $100 million. It may be labeled a “billionaire tax,” though $100 million is a tenth of a billion.

Even so, few may want to defend billionaires (or someone with a mere $100 million for that matter) in the current climate. Some argue this fairly targets extremely wealthy Americans who have taken advantage of tax rules to pay lower rates than their secretaries. For example, wealthy people can tap their resources by borrowing money rather than selling something that would trigger tax. Some attack the proposal as a wealth tax that will chill investments of capital.

Unlike an income tax, Harris’ new wealth tax would work like this. Households worth more than $100 million would pay an annual minimum tax worth 25% of their combined income and unrealized capital gains. Say you purchase stock for $10 a share. It doubles to $20 in the first year, but you still hold it. Even though you haven’t sold it, that $10 gain would be subject to the new tax.

Real estate would work the same way. You buy a house, building, or land. The increase in value over time would be taxed every year, even though you still hold it. We have never had a tax on gains that are not “realized,” meaning sold. In that sense, this new tax would be groundbreaking, a point we’ll come back to.

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Best tax software for the self-employed of 2022, income tax calculator: estimate your taxes.

Apart from policy, there are administrative issues galore. How do you go about valuing everything every year to be taxed? Public company stock would be straightforward. But most assets could be a nightmare, and who in the end gets to carry the day on value? Disputes about value in tax cases are legendary and voluminous. Nearly every estate tax case with the IRS includes valuation disputes , often with competing experts. In income tax cases, charitable contributions of noncash assets such as real estate or crypto often also end up in major valuation fights.

Just imagine what annual value statements with tax returns might look like, in a world where the increase in value since last year turns into taxes. Capital gains have always been singled out for lower taxes, not higher. And except in the case of estate tax measured on death, it has been nearly sacred not to tax “earnings” you didn’t receive.

Besides, what if value spikes one year, you pay tax, and then it plummets the next year? You still have the now worthless asset and can’t sell it for much. So why the unheard-of shift to tax something before its time?

What is arguably the scariest part of this idea? What if this opens the door to a more generalized effort by the government to tax you on something that you still own? Right now the proposal is only to use this wealth tax for the truly wealthy. Not just billionaires, but also anyone with at least $100 million.

Once we start down this path, could we some years from now face a tax like this for someone with $20 million, $10 million, even $1 million? You get the idea. Even if the “billionaire’s tax” to hit anyone at $100 million passes, there could be court challenges based on what the U.S. Constitution says about the government’s taxing power. The Supreme Court has not fully ruled on a question like this, although one recent guidepost came in a 2024 tax case, Moore vs. USA , in which the Supreme Court upheld a tax on undistributed foreign assets.

The chances of this wealth tax passing may not be high. Harris would need to win, and both the Senate and House would need to be controlled by Democrats. In any event, this proposal could signal the dawn of new taxes and more coming. You can read more about Harris’ big plans for your taxes.

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How Kamala Harris’ new policy plan could impact housing in Virginia

This story was reported and written by our media partner the Virginia Mercury.

Virginia Democratic lawmakers praised Vice President Kamala Harris’ housing policy plans in a virtual call Wednesday afternoon. The gathering came on the heels of a new campaign ad highlighting Harris’ plan to build three million new homes and rental units if elected president.

The plan is part of a proposal she unveiled ahead of the Democratic National Convention, which includes providing $ 25,000 in down payment assistance for some first-time homebuyers and tax incentives for builders.

A 2021 Joint Legislative Audit and Review Commission study found that most Virginains affected by affordable housing issues are renters. It also found that a declining number of Virginians can afford to purchase a home, while the state has an estimated shortage of at least 200,000 affordable rental units.

U.S. Rep. Don Beyer, D-Alexandria, said that Harris’ plans will help local governments handle affordable housing issues.

“She can do this by deploying tax incentives to build starter homes to alleviate the shortage of houses on the market for aspiring homeowners,” Beyer said.

He pointed to Harris’ support of increasing low income housing tax credits that local governments could utilize for construction of new homes and apartments. These tax breaks to developers help incentivize development of homes to various percentages of area median income.

But many localities in Virginia lack the authority to utilize LIHTC credits when negotiating developments and redevelopments with companies and a bill that would have expanded those abilities was vetoed this year by the governor. This is where state and federal levels of government can be helpful to local governments.

Alexandria councilman John Chapman stressed how increasing affordable housing options is “not a hyper-local issue.”

“We want to hear that at the state level, and we love to hear that at the federal level, that there’s a need for supply, and there are also going to be some additional tools,” he said.

Housing is a personal issue for him, Chapman said, as someone benefiting from living in the home that his mother was able to purchase, in part, from down payment assistance.

“I know personally of the effect of the generational wealth that has passed along from family to family,” Chapman said.

Some of Harris’ policy platforms will hinge on who controls the U.S. House and Senate next year if she is elected. In Virginia, Sen. Tim Kaine is running for re-election and all 11 congressional seats are in play.

Beyer said that he thinks the fact that both Harris and her running mate, Minnesota Gov. Tim Walz, have previously served in Congress can bode well for them.

He said that he thinks both candidates “struck a bipartisan and post-partisan tone in the convention.”

Bolstering housing supply is also something former president Donald Trump, the Republican presidential nominee, wants to address if re-elected.

Trump’s housing plans include opening portions of federal lands to allow for new home construction while addressing inflation overall, as well as building on previous efforts to r educe regulatory barriers to construction .

During his first term in office he created Opportunity Zones meant to attract investors to underinvested neighborhoods, but there’s n ot enough evidence to determine if poverty declined more in these zones than elsewhere.

Agenda 47 from his campaign also alleges that illegal immigrants have driven up the cost of housing. While limited legal immigrants qualify for federal housing assistance , undocumented people could lose their anonymity if they tried to purchase a home or lease an apartment.

Jeff Ryer, a spokesman for the Trump campaign in Virginia said that “Trump will defeat inflation, lower mortgage rates and make homeownership an achievable dream again for Virginia families.”

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Harris plans to tax unrealized stock gains — but only for people worth $100 million

Vice President Kamala Harris' endorsement of a Biden administration plan that includes a tax on stock holdings that have grown in value has emerged in recent weeks as a talking point among conservative pundits and Trump supporters who argue it amounts to socialism or even communism.

Under the current system, the federal government only taxes profits from stock investments — commonly known as capital gains — once a stock is sold. The plan backed by Harris would impose a levy on stock holdings as their value increases, whether they’re cashed in or not.

There is, however, a catch. The proposal backed by Harris would only apply to a narrow — and very wealthy — slice of the population: people whose net worth is at least $100 million. That's about 10,660 people in the U.S., according to one estimate .

Currently, no such tax exists — something that many advocates across the political spectrum, though mostly progressive-leaning ones, believe should be rectified. By most estimates, the top 1% has approximately 40% of their wealth tied up in unrealized capital gains.

The lack of taxes on capital gains has been considered by some economists and tax experts as a loophole for the wealthy.

Because taxes are imposed only when stocks are sold, the wealthy have deployed a strategy popularly called " buy, borrow, die ," which involves buying assets and borrowing against the value of those assets to buy even more assets. This a tax-free action, which allows for the assets to be passed on to heirs, who end up paying no taxes on the assets. Ultimately, over the lifetime of the ownership of a given asset, no tax is paid.

That the tax would be applied only to the ultra-wealthy — and only to "tradable" assets, thus excluding real estate or shares in private startups — has done little to stymie conservative opposition to the plan, and some on the right have seized on it to argue that Harris would be bad for business.

The right-leaning CATO Institute has said such a plan "raises deeper questions about individual property rights, financial privacy, and due process."

Former presidential candidate and venture capitalist Vivek Ramaswamy posted a video to X on Wednesday from a recent appearance on CNBC in which he railed against the plan.

" A few weeks ago, I started pointing out that Kamala Harris wants to tax *unrealized* capital gains," he wrote in the post on X. "The main objection I heard was 'she’ll never actually do this.' Now, we’re seeing it’s one of her signature economic policy proposals."

Ramaswamy's post was reposted by Elon Musk, one of the wealthiest people in the world. Notably, Musk at one point planned to purchase X by borrowing against the value of his Tesla holdings before turning to a slightly more conventional loan from Wall Street banks to make the acquisition.

Other objections to the Biden and Harris proposal include that the value on unrealized assets can decline by as much, or just as soon, as they've increased — meaning someone will have paid a tax on value it never even took advantage of if the stock market tanks.

However, Biden's proposal addresses this in part by assessing the tax over five years.

Jeff Huggett, a member of the Patriotic Millionaires group, wrote that average American workers experience the same kind of fluctuation in their financial lives, yet are still expected to pay tax each year on their earnings.

"The same should be expected of anyone who makes a killing on Wall Street," Huggett wrote in a blog post in July .

A new series of legal roadblocks have also been thrown up in a recent Supreme Court's decision that revolved around the government's taxing power. While the majority opinion in Moore v. United States, written by Justice Brett Kavanaugh and joined by the court's three Democratic appointees plus Chief Justice John Roberts, did not explicitly bar a wealth tax, many read the decision — as well as a concurring opinion by Justice Amy Coney Barrett and a dissent by Justice Clarence Thomas — as teeing up a way for future opponents of such a tax to bar its implementation.

Harris' plan would most likely face difficulty passing Congress: Biden couldn't get the proposal passed even when he enjoyed slim majorities in the House and Senate in the first part of his term.

Yet as a matter of fiscal prudence, Harris' proponents also point out that GOP nominee Donald Trump's budget plan, which revolves around extending his 2017 tax cuts, has been projected by the University of Pennsylvania's Wharton School of Business to add $5.8 trillion to the deficit over the next decade — nearly five times more than the $1.2 trillion increase estimated for Harris.

Biden has called his administration's proposal a “billionaire minimum income tax” and has sought a rate of 25%. The Committee for a Responsible Federal Budget has estimated it would raise as much as $503 billion over 10 years. While that would be just a fraction of the $5 trillion in tax increases Biden has proposed, his administration has described it as not only financially prudent but morally necessary.

“Preferential treatment for unrealized gains disproportionately benefits high-wealth taxpayers and provides many high-wealth taxpayers with a lower effective tax rate than many low- and middle-income taxpayers,” a Treasury Department document on the proposal stated. “Preferential treatment for unrealized gains also exacerbates income and wealth disparities, including by gender, geography, race, and ethnicity.”

Rob Wile is a Pulitzer Prize-winning journalist covering breaking business stories for NBCNews.com.

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Donors Quietly Push Harris to Drop Tax on Ultrawealthy

Vice President Kamala Harris’s fund-raising has benefited from a surge of interest from Silicon Valley and Wall Street.

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By Andrew Duehren and Theodore Schleifer

Reporting from Washington

Donors to Vice President Kamala Harris’s campaign are pushing her to reconsider supporting a proposed tax on the wealthiest Americans, as some Wall Street and Silicon Valley executives try to reshape the Democratic nominee’s governing agenda.

Ms. Harris’s campaign last week said she supported the tax increases included in President Biden’s latest White House budget proposal. One of those plans would require Americans worth at least $100 million to pay taxes on investment gains even if they have not sold the stocks, bonds or other assets that have appreciated.

Under the plan, those Americans would owe a 25 percent tax on a combination of their regular income, like wages, and so-called unrealized gains. The so-called billionaire minimum income tax could create hefty tax bills for wealthy individuals who derive much of their wealth from the stocks and other assets they own.

The proposal has hit a nerve with some of the donors who have flocked to supporting Ms. Harris after Mr. Biden dropped out of the presidential race, according to seven people familiar with the conversations.

Some have directed their complaints to the campaign’s advisers and top allies in the business community who are perceived to be in her inner circle. At least one top donor close to Ms. Harris has raised the issue with her in a private conversation, encouraging her to instead tax the ability of the ultrawealthy to borrow against their wealth.

Allies and staff of Ms. Harris have defended the plan to business leaders in private conversations, explaining that the tax would apply to only a small slice of wealthy Americans and could be delayed for investments that are not easily sold, according to the people familiar with the conversations.

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