Company Description/Overview
Products/Services Offered
Market Analysis
Marketing and Sales Strategies
Operations and Management
Financial Plan
Appendices
A business plan is a detailed document laying out how the business will function and develop in its first few years. The key is the “plan” part of the name, as it will specify how you will launch, gain customers, operate, make money, and, with any luck, expand.
Yet what many first-time business owners seem to forget is that a business plan is not a static document. The initial version is based largely on assumptions, supported by research. But as you run your business you’ll learn what works and what does not and make endless tweaks to your plan.
Thus, creating a business plan is not a one-time action – it’s a dynamic and continuous process of crafting and adapting your vision and strategy.
A business plan is generally much more detailed and broader than a business proposal, and has several elements :
A business proposal is created in connection to a specific business deal being offered by one party to another. As mentioned, when you take a business plan to an investor, you’re proposing a business relationship, so in this case a business plan and a business proposal are much the same.
But a business proposal could also be for others purposes, including:
A business proposal may offer specific terms for the potential relationship, or it may be just about the benefits the relationship will bring, with terms to be negotiated later. Essentially, it’s a sales tool to get people or companies to do business with you in some way.
Business proposals can be structured in various ways, but usually, they’ll include a summary of what your company can offer, a scope of the work to be done together, and sometimes, a price quote or a proposed structure of the business relationship.
Clearly, a business plan and a business proposal are similar – and can even be one and the same. At the same time, they can also serve very different purposes. Unlike a business plan, a business proposal can have a variety of aims and thus does not have a “one size fits all” structure.
Whichever one you need, be sure to take your time with the research and writing so your business has the best chance for success.
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What's the difference.
A business plan is a comprehensive document that outlines the goals, strategies, and financial projections of a business over a specific period of time. It serves as a roadmap for the business and is typically used internally to guide decision-making and operations. On the other hand, a business proposal is a document that is created to pitch a specific product or service to potential clients or investors. It outlines the benefits, costs, and potential outcomes of the proposed project in order to persuade the recipient to take action. While a business plan focuses on the overall strategy and operations of a business, a business proposal is more targeted and specific to a particular project or opportunity.
Attribute | Business Plan | Business Proposal |
---|---|---|
Purpose | Outlines the goals and strategies of a business | Proposes a specific project or service to a potential client or investor |
Audience | Internal stakeholders, investors, lenders | External clients, investors, partners |
Length | Can be comprehensive and detailed | Usually shorter and more focused |
Scope | Covers all aspects of the business | Focuses on a specific project or opportunity |
Implementation | Guides the execution of the business strategy | Outlines how the proposed project will be carried out |
Introduction.
When it comes to starting a new business or expanding an existing one, having a well-thought-out plan is essential. Two common documents used in the business world are the business plan and the business proposal. While they may sound similar, they serve different purposes and have distinct attributes that set them apart.
A business plan is a comprehensive document that outlines the goals, strategies, and financial projections of a business. It serves as a roadmap for the business and is typically used internally to guide decision-making and track progress. On the other hand, a business proposal is a document that is used to pitch a product or service to potential clients or investors. It outlines the benefits of the offering and explains why the recipient should choose to work with the business.
One of the key differences between a business plan and a business proposal is their scope. A business plan is typically a long-term document that covers all aspects of the business, including marketing, operations, and financials. It is meant to provide a comprehensive overview of the business and its goals. On the other hand, a business proposal is more focused and specific. It is tailored to a particular project or opportunity and is designed to persuade the recipient to take a specific action, such as investing in the business or purchasing a product.
Another difference between a business plan and a business proposal is their content. A business plan typically includes sections such as an executive summary, company description, market analysis, marketing strategy, operational plan, and financial projections. It is a detailed document that provides a thorough overview of the business and its operations. In contrast, a business proposal is more concise and focused. It usually includes sections such as an introduction, problem statement, proposed solution, benefits, and pricing. The goal of a business proposal is to persuade the recipient to take a specific action, such as signing a contract or making a purchase.
Business plans are typically used internally by business owners, managers, and stakeholders to guide decision-making and track progress. They are also used to secure funding from investors or lenders. A well-written business plan can help attract investors and convince them of the viability of the business. On the other hand, business proposals are used externally to pitch products or services to potential clients or investors. They are often used in sales and marketing efforts to generate new business opportunities. A well-crafted business proposal can help win new clients and grow the business.
In conclusion, while business plans and business proposals may sound similar, they serve different purposes and have distinct attributes that set them apart. A business plan is a comprehensive document that outlines the goals, strategies, and financial projections of a business, while a business proposal is a focused document that is used to pitch a product or service to potential clients or investors. Understanding the differences between the two documents is essential for any business owner looking to start or grow their business.
Comparisons may contain inaccurate information about people, places, or facts. Please report any issues.
A business plan and proposal are two different documents with two different purposes and functions. 3 min read
A business plan and proposal are two different documents with two different purposes and functions. A business plan is a document that clearly spells out how a business intends to realize its objectives and goals, while a business proposal is a sales document that a business entity uses to request a contract from a client.
A business plan and a business proposal are different from each other by content, goals, writing style, and structure. The major difference between both is that a business plan is a document that presents facts, while a business proposal is a request for a deal and a quotation of prices.
You can think of a business plan as the documentation of a company's grand vision. Business plans are naturally tactical. It's like stating where and when you want to start, when you want to get to the next point in view, and how you intend to accomplish that progress. A business plan includes descriptions of how the business is intended to run, the details of financial goals, possible business rivalry, marketing strategy, executive summary, and other factors that affect a company's planned business growth.
A business plan is particularly effective in making potential investors interested in a company (especially a startup company that's yet to make a name in its industry). Additionally, a business plan can provide an idea of what a company requires for professionals such as attorneys, accountants, and potential employees. A business plan distinctly describes the scope of the business, and in so doing, clears your thoughts as a business owner.
The business plan should be honestly made because it's the outline of the company's vision. It indicates whether or not the business goals of the company are realistically achievable. Experts say an effective business plan would take approximately six weeks of thorough research and groundwork to create. In other words, you typically can't create an effective business plan in one day, present it to potential investors the next day, and achieve desired results.
A business proposal goes to a prospective client directly from an established business. It's an attempt to sell a business entity's service or product to a client, and not an attempt to sell the business itself. Also, a business proposal isn't an estimate. Though costs and certain other details will be provided in the business proposal, an estimate is a lot more unofficial and simply a provision to skim over the costs. It doesn't present the entire picture.
Basically, business proposals show a particular idea, such as a new, profitable undertaking. The proposal is intended to get investors to support the particular business endeavor being suggested. For instance, a well-known eatery chain may wish to extend its business to a nearby state. Such an eatery would have to compose a business proposal in order to get the financial support of its target investors.
Though the business proposal provides an overview of what the company does (similar to a business plan), its major objective is to provide the details of the suggested business idea, including providing answers in advance for any concerns that could be raised by potential investors.
Basically, a business plan has three components: business model description, sales tactics, and financial goals. However, more elaborately, it has the following sections of information:
A solicited business proposal, when presented in response to a request for proposal (RFP), should be in the format requested by the client in their RFP. The same format may or may not be used for an unsolicited business proposal. Its purpose is to suggest and develop a business idea. Therefore, it's recommended to use the same format or some other format that's well-known in the field of endeavor.
An unsolicited business proposal offers a business entity the flexibility to choose what structure they deem appropriate. However, the proposal is expected to meet industry standards, no matter what format is used. For instance, it should emphasize major areas of interest, be thoroughly researched, offer a proposition of value, and feature a call to action.
If you need help with a business plan and proposal, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.
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“Ok, so you sell things.”
Well, honestly, I wasn’t surprised or peeved at the half-baked knowledge of my friend’s father when he made a snap judgment and conveniently labeled my marketing profession as sales.
After all, this wasn’t my first time when someone tagged me as a salesperson. So, I took a deep breath and explained to him how sales are different from marketing.
We, humans, dwell in a herd mentality and hone our word skills from our surroundings. Sometimes, we are simply careless, sometimes oblivious, but most of the time, we actually don’t know that the word has a different meaning.
This can be ignored in a casual conversation, but using the wrong words in a business space can change the implied meaning and lead to miscommunication. For example, cost vs. price , digitization vs. digitalization , warranty vs. guarantee , machine learning vs. artificial intelligence , etc.
“Don’t use words too big for the subject. Don’t say ‘infinitely’ when you mean ‘very’; otherwise you’ll have no word left when you want to talk about something really infinite.” – C. S. Lewis
This Process Street guest post untangles the confusion between two crucial terms – business plan and business proposal. These are used interchangeably in the business world, but their meaning and application are pretty different.
Words are the building blocks of communication. There is a French phrase for using the right word – le mot juste .
Let us strive for le mot juste !
Hop on and be a part of this fantabulous journey.
What is a business proposal, business plan vs. business proposal: what are the differences.
Here we go!
A business plan is a formal guide that acts as a blueprint, deciphering every root and branch to make a business successful. It is a written document that provides insights to internal and external stakeholders on business vision, goals, and strategies to achieve those goals.
“Without a plan, even the most brilliant business can get lost. You need to have goals, create milestones and have a strategy in place to set yourself up for success.” – Yogi Berra
A business plan, at its core, is an explanation of the below questions –
A business plan is not a bag of puffery statements. It is a document with factual information necessary for the survival of a business. You can create a business plan with the right tools or opt for a good business coach to get you started.
Let’s see what Tim Berry , business plan expert, founder and chairman of Palo Alto Softwar and bplans.com , has to say on business plans.
“What I love most about business plans is the business planning: like walking, it’s constant correction and review and revision. Planning, done right, is steering a business, managing growth, aiming the business towards the right future.” – Tim Berry , Small Business Trends
According to a study done by Palo Alto Software, those who create business plans double their chances to succeed in business .
Let us get down to brass tacks and understand why a business plan is super-duper important.
Record and present business information The primary intent of a business plan is to record and communicate information. It must document the business goals and the methods to attain those goals in a structured manner. It keeps businesses on track with their objectives.
A blueprint for seeking business investment ️ Whether you are a fledgling start-up or an established business seeking expansion or diversification, writing a winning business plan acts as a magnet to attract investors. It builds confidence and trust among investors about the lucrativeness of a business idea.
Lay down the right path ✔️ Not everything discussed verbally at an ideation stage transforms into reality in a pragmatic environment. Jotting down a business plan differentiates achievable from impracticable based on market dynamics, opportunities and threats, and company’s strengths and weaknesses. It sets the right track for business growth.
Establish short-term and long-term goals A business plan sets down short-term and long-term goals and the direction to accomplish them, right from baby steps to giant leaps. It becomes a basis to revisit the goals from time-to-time and make iterations depending on the present scenario.
“Any business plan won’t survive its first encounter with reality. The reality will always be different. It will never be the plan.” – Jeff Bezos, CEO of Amazon
Get clarity on your business A frequent question that pops-up in business discussions is: “Are we doing it right?”
A well-articulated business plan brings insightful knowledge on each aspect of a business – from what it has to offer to how to market the offerings.
Make informed decisions A business plan is a reality check to track what is being fruitful and what is causing hindrance. It paves the way to make a business sustainable.
Predict future financial performance Financial projection is the spotlight of a business plan. It’s the carrot that captivates the eyeballs and tickles investors to fund a new business.
A promising business plan talks about the company’s future financial performance – expenditure, profit, revenue, etc.
Explore new business opportunities A business plan is a flexible document that enables learning on the go. It bolsters research and infuses businesses with new and more feasible business opportunities. It gives organizations a fresh outlook and ushers them to be a howling success.
Now that we have answered the ‘what’ and ‘why’ of a business plan, let us move forward to solve the next riddle – how do you prepare it?
Identify your company’s vision, mission, and values Start by answering and figuring out your business personality:
This is your organization’s compass that acts as a foundation for the succeeding steps.
Know your target audience Dig deep into:
Learn market trends Identifying market trends keeps businesses ahead of the game. Analysis of industry data leads to business growth and profitability in the long run.
Weigh in the impact of unforeseen circumstances From financial turbulence to natural calamities and pandemics – a lot can go wrong in the future and leave a business shaking. Expect the unexpected and gird your loins for these testing times.
Creating a winning business plan increases the chances of success and spurs investors to fund your business.
According to a study published in Small Business Economics , entrepreneurs that create a plan are 152% more likely to start their business and appoint a registered agent and 129% more likely to push forward with their business beyond the initial start-up phase and grow it.
Here are the key components of an excellent business plan:
Executive summary First impression is the last impression!
An executive summary is a crucial part of this document. It provides the essence of the whole plan:
It should be informative and able to spark readers’ interest to know more about the business plan.
Overview of the business This section lists down information on:
…and all other related details.
Market analysis and strategies Put forth a strong case built on the solid rock of data analysis and statistics – present data on target market size, industry trends, sales forecasts, and marketing strategy.
Operating plan The operating plan highlights the operational requirements for the smooth functioning of a business. It includes facilities, supply chain management, inventory, manufacturing, shipment, logistics, staff management – everything under the sun that covers capital and expense (CapEx) requirements.
Growth plan This section answers the question: “Where do you see the business going in the next few years?” It provides visibility to investors on the milestones and how you will make money in near future.
Marketing plan Thee marketing plan section describes how to market the offerings to create and fulfill customers’ needs (who are the customers, product positioning, pricing policy, and promotional strategies?)
Management plan This section outlines how your organization is structured and basically how strong you are together. It describes the skills, background, and responsibilities of the management team. It builds conviction that the business is in good hands and has a proficient human capital.
Financial plan and projections This is the part where numbers become the king.
It draws up deets on inflow and outflow of money, sales forecast, profit and loss statement, balance sheet, cash flow statement, and budget expense. It discloses and forecasts the company’s financial goals, profitability model, and charts a course for the coming years.
Conclusion and appendix Conclude the business plan by succinctly bringing out the key pointers – the business’s vision, mission, goals, strengths, and growth trajectory. Make it compelling and to-the-point. Add relevant appendices to strengthen your business plan.
Pro tip: Use an all-inclusive ready-made business plan template document and Process Street ‘s business plan workflow to create unbeatable business plans.
Click here to access the Business Plan Checklist!
There are varying types of business plans depending on the purpose and usage:
A business proposal is the mantra that draws you closer to win a customer or bag a project.
Generally, it is a formal response to a Request for Proposal (RFP) sent by a prospective client looking for the right solution to their problems. It explains the particulars of a seller’s offerings and convinces the buyer that the proposed solution is the gateway to their business’s success and productivity.
“And, after all, winning business is what writing proposals is all about.” ― Tom Sant, Persuasive Business Proposals: Writing to Win More Customers, Clients, and Contracts
A business proposal comprises of four main points :
A business proposal is a testimony in itself that asserts, “I am the best you can get.”
Here are the reasons why you should and must make a business proposal :
The heart of preparedness is research and further research. After all, the devil is in the details.
Talk to prospective customers, visit their website(s), read published articles, and be a know-it-all for your prospective clients.
Sort out the ‘who’ First and foremost, dig every possible information about the client:
Understand the challenges Find what’s bothering them and what is causing hindrance to their business success. Learn about their existing solution and its challenges.
Stitch the glitch and offer the best solution After a thorough review of all the points mentioned above, find the best solution to your prospective client’s problems.
List down key differentiators This will help you to beat the competition in the dust. It draws a comparison chart and puts you in a superior position.
According to Gray Mackenzie, founder of GuavaBox ,
“Prior to submitting a proposal, make sure you have clearly defined all the major points verbally with the potential customer. By discussing the scope, cost, timeline, and details prior to submitting a written proposal, you can uncover objections earlier in the process.” – Gray Mackenzie, 10 Sales Experts Share Their Best Business Proposal Tips
Let’s get down to the fundamental elements that form a business proposal. Learn how to create a business proposal that stands out and close sales.
Title page/Cover page The name says it all.
Pretty easy-peasy thing to understand, right? After all, you have been creating the title pages since school days.
Still, make a note: Always write a gripping title that intrigues prospective clients’ interest and urges them to read on.
Other components that should be included on the title page are:
Table of contents (TOC) As the name suggests, a TOC is a well-structured layout of the document. It helps to skim and scan and navigate speedily through different sections of a business proposal.
Executive summary It sets the tone for a proposal and makes the reader inquisitive about reading subsequent sections. It sums up the entire business proposal – the purpose of sharing the proposal and why and how your solution is the right fit for the prospective client. Leave no stone unturned to boast about your offerings in the executive summary.
Details of offerings This is an in-depth description of the products or services your company has to offer.
How will the offerings solve the client’s problems? This explains why your products/services are the right fit to address a prospective client’s needs and why it is a better alternative than the competition.
The methodology/implementation of offerings This section is a blanket explanation of how the promised deliverables will be executed. It provides step-by-step clarity on each action along with timelines. It gives the client peace of mind and builds trust and confidence in the offering.
Pricing, payment, and legal matters Here, you talk about the pricing structure, applicable taxes, payment schedule, cancellation policy, and how you plan to solve the legal matters (if any arise in the future).
Here are some tips for this section:
Details about your company This is an exhaustive overview of your company. Don’t forget to add relevant customer testimonials, case studies, or success stories to build your case among prospective customers.
Signatures and Call to action This is the moment that gets butterflies in your stomach; the closure. This is the concluding part of a business proposal. Here (if all your prayers get answered), you and your client sign the proposal and secure the deal. Hurray!
Pro tip: Once you send the business proposal, don’t sit idle in your cocoon day-dreaming of winning the proposal. Always proactively do follow-ups with the prospective clients and clarify their doubts.
For start-ups or small businesses, drafting a business proposal can be an unnerving experience. They work fingers to the bone to write a perfect business proposal. Spending too much time on it might lead to missing the deadline and eventually losing out on a golden opportunity.
According to a report by Better Proposal , sending a business proposal within 24 hours increases the likelihood of winning the deal by 25%.
Here’s the secret sauce to speedily create flawless business proposals :
First, pick a professionally vetted and ready-to-use business proposal template and draft a business proposal like a cakewalk. Such as the Business Proposal Template included below.
Next, always use Process Street ‘s super-powered business proposal template checklist and ensure no step gets missed in the process.
It even turns out a blessing for big businesses since they have to draft multiple proposals all the time. Templates and checklists save a lot of time, enhance productivity, and increase the chances of success.
Majorly, there are two types of business proposals:
Solicited business proposal Also known as an invited business proposal, it comes into play when a buyer, or a company, outlines its requirements and requests suppliers to present an offer. It can be a response to a public tender issued by big corporations or government agencies.
Alternatively, a solicited business proposal can also be submitted as a response to the RFP shared by a prospective client.
The difference between the two is that while the earlier one is open to all bidders, the latter’s scope is limited as it is shared with shortlisted suppliers.
Pro tip: Do a thorough check before submitting an invited business proposal. Missing out on-minute details can kick you out from their consideration list.
Unsolicited business proposal An uninvited or unsolicited business proposal is a proactive attempt to create a business opportunity. This proposal is sent to prospective clients without being asked.
The good news is, there are slim chances of your rival sending a business proposal simultaneously, so less or no competition.
The bad news is, it might breathe in the customer’s inbox for a few days and then, without being read, depart to the heavenly abode -the trash folder.
But still, like a cold call, it leaves some impression on prospective clients and shoots up the chances to cut a deal in the long run.
Pro tip: An unsolicited business proposal is mostly sent through emails. Make certain to write an attention-grabbing headline and a convincing explanation to draw attention.
Here’s a comparison chart that distinguishes between business plan and business proposal:
Here are the secret ingredients to make awesome and captivating business plans and proposals:
This is not the right place to brag about your vocabulary skills. You want the prospective customer to focus on reading rather than wasting time looking up for a word.
Always remember! Communication is the key.
So, go simple and ditch those heavy jargons.
Don’t wear-out the pupils of your prospects with long-winded documents. Capitalize on the multisensorial abilities of humans as well.
Visuals increase people’s desire to read content by 80%.
Leverage the power of visuals and make your document easily graspable by adding graphs, infographics, flowcharts, tables, images, and videos.
Do not forget to add positive feedback or customer testimonials. If similar projects have been delivered in the past, do add relevant links and case studies of that work. It helps to build trust and strengthen your case.
“Make sure you have great success stories that you can share with potential clients. At the end of the day, most, if not all, potential clients want to know you will provide value to them and generate positive ROI.” – Mathew Bivens, Podcast and marketing consultant, 10 Sales Experts Share Their Best Business Proposal Tips
Ensure the document is free from grammar and spelling errors.
Your document should reflect your brand. Bring consistency in all your documents and design them as per the brand guidelines.
Time is money!
The likelihood of getting a ‘yes’ on your business plans and business proposals depends on how fast you can create a flawless document.
Empower your organization with a smart and all-in-one document builder tool like Revv – create, communicate, collaborate, and close your documents in no time.
Business plans and business proposals are two different worlds with distinct purposes and goals. But, both play a prime role in increasing the odds of business success.
People often get the wrong end of the stick and ask for a business plan when they mean business proposal or vice-versa.
But, we don’t need to worry about that since we are now clear on what is what.
Cheers to us!
P.S: Don’t forget to subscribe to the Process Street blog to get notified of our upcoming articles. We also have a podcast “Tech Out Loud” featuring content written by respected industry leaders such as Peep Laja , Sujan Patel , Tomasz Tunguz , and more!
What is your take on business plans and business proposals? Have you ever got your wires crossed with these two terminologies? Don’t forget to post your comments below.
Hey, I'm Molly, Junior Content Writer at Process Street with a First-Class Honors Degree in Development Studies & Spanish. I love writing so much that I also have my own blog where I write about everything that interests me; from traveling solo to mindful living. Check it out at mollystovold.com .
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Business Plan Template
When you start a new business or own a young company, you often hear terms like business plan or business proposal. But the question is: do you need a business plan? Or is it a proposal that you need? Or both?
Being new to the game, these terms can seem quite intimidating, and you probably don’t know where to start.
Don’t worry. We’ve created a simple business plan vs. business proposal comparison so you can determine which one to prioritize.
Let’s start by defining them!
A business plan documents a company, its business objectives, and how it plans to achieve them. It includes data regarding business goals, marketing strategies, products, services, market research, financial projections, and the dream team.
Pretty much everything a company will use to achieve its intentions.
Okay! And what about the business proposal?
On the other hand, a business proposal is a document that describes your business’s offerings, like a product or service, to help you win potential clients and partners.
It also outlines your business, including its unique value proposition and how your company can help solve customers’ specific problems.
Now that we know the two business documents aren’t the same let’s see how they are different and in what ways.
Even though used interchangeably (and wrongly), a business plan and proposal are poles apart. Here’s how:
Before you ask why you need a business plan , it’s, first and foremost, to legitimize a business idea that you’ve been brewing in your head.
But it’s also to document company strategies, objectives, and operations that help you create a clear idea on how to achieve your company goals. All that data becomes one source of truth that works as a communication tool. That becomes your golden ticket to wooing investors and lenders.
On the other hand, a business proposal’s purpose is entirely about convincing a potential client and partner that your project is worth their time and money.
Unlike a business plan, it only focuses on a specific product, service, or opportunity instead of the entire business.
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When you write your business plan , it will typically follow a specific structure containing the following components:
Similarly, when you write a business proposal , you’ll typically encounter a structure as well. It goes like this:
A business plan’s target audience is internal stakeholders, investors, and lenders interested in your company’s long-term goals and path to success.
On the flip side, business proposals go to potential clients from established businesses. They target external or new clients, partners, or funding agencies with a specific focus on:
Do you know how many types of businesses exist today? Two words: Too many!
Now, that implies there are many different types of business plans . But here’s a quick list of the most common types:
Business proposal types can be broadly divided into two categories:
It’s already challenging to overcome market entry barriers in saturated markets and persuade potential investors. Creating a compelling business proposal and plan shouldn’t be too!
Here’s how to go about it:
It’s okay if you were confused about the difference between a business plan and a proposal before today. You now know the distinction between the two lies in their purpose, components, structure, audience, and type.
While a business plan provides a thorough overview of the entire business and targets internal stakeholders, investors, and lenders, a business proposal focuses on specific projects or opportunities and targets external clients, partners, or funding agencies.
When you understand these differences and employ the best practices in creating both documents, your business can effectively communicate its vision, strategy, and value proposition, securing a solid spot in this competitive world.
Build your Business Plan Faster
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What is the difference between a business plan and a business idea.
A business idea is a concept’s initial spark for a product, service, or opportunity. However, a business plan is a detailed document outlining how a business idea will be executed and managed.
A good proposal is 10-20 pages long. However, it can be longer based on the industry, buyer requirements, product or service type, the scale of buyer needs, and other aspects unique to the business.
The business plan comes first since it legitimizes a business idea. Then comes a proposal because it’s specific to a particular project or opportunity and not the business as a whole.
A business plan is a detailed roadmap for your entire venture. It helps you gain investments, beat competition, make sound decisions, communicate with stakeholders, and identify risks. So, yes, you need a business plan.
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It’s natural to get confused between a business proposal and a business plan if you are planning to turn your idea into reality. While business proposals and plans may sound similar on the surface, they have differences — such as distinct purposes and formats.
A business plan describes your business goals, strategies, and financial projections. A business proposal, on the other hand, proposes a specific solution to a problem or opportunity and helps you persuade the relevant stakeholder to invest in your business.
However, writing a business proposal or a business plan can be challenging, especially if you are confused about their purpose. In this blog, we will explain the difference between a business plan and a business proposal and its major components.
A business plan tells the investors how you plan to ship your product to enough people to clock revenue. It’s about the strategies that will make you the first buck.
A business plan keeps your team on the same page — you can use it as a guiding light. It can help you track the progress of your business, give you a roadmap, and help you make decisions about your business’s future.
Plus, it can be helpful when it comes to pitching your business idea to a third party, for example, when seeking a loan.
A business plan is majorly divided into three sections, which include an executive summary, a sales and marketing strategy, and a financial plan.
An executive summary is a brief, clear, and compelling overview of your business. It is usually the first section of the document, and it contains the most important information, such as your strengths.
These can be further broken down into the following sections:
A business proposal is a separate written document that outlines a specific business opportunity, project, or idea and presents it to potential clients.
It intends to persuade them to take action, such as accepting a business deal or entering into a partnership, thereby helping you get new customers or partners.
A business proposal should be customized to the needs and interests of the receiver. A generic proposal will rarely help you meet your business goals.
At the same time, ensure your proposal is well-organized, persuasive, and creative. Check out these free business proposal templates to impress your clients.
Proposals are solicited from you, or you send them on your initiative.
You write a solicited proposal in response to a prospect’s or customer’s request for a product. They may ask you verbally, or they may issue a written request for proposals (RFP). A solicited business proposal contains a detailed description of the product, service, or solution that you offer to solve the customer's problem or need. It’s generally easier to write because you know what the customer wants or expects.
But if you’re writing the proposal on your own, which is the case with unsolicited business proposals, then you’re convincing the receiver to work with you or buy from you. Such proposals are often challenging to write because you have to convince them they have a problem and you have a solution.
The following are the key components of a business proposal :
While a business plan outlines your goals and explains how you will achieve them, a proposal sells your product to potential customers.
In the following table, we have summarized the main differences between a business plan and a business proposal:
To wrap up, a business proposal is a document that pitches your products or services to a potential client, while a business plan outlines your goals, strategies, and financial projections for your business.
With business management software like Cone, you can easily streamline and automate your proposal creation while ensuring your proposals are bespoke and customized. Sign up for free and experience the seamless proposal creation process for yourself. While you’re at it, check out other business proposals and management resources we have for you.
A business plan and a business proposal are very different documents, with different purposes and goals. A business plan is a factual broad description of a company on the executive and operational level. A business proposal is a focused sales document intended to describe how a company will approach a project, state the value of the project to the client and solicit the client's business. A business plan is a written presentation of fact. A business proposal is a quote and call to action.
A business plan documents your vision for your business and how you intend to achieve that vision. It contains financial projections of what the business will cost to develop and operate plus an estimation of the revenues to be generated. Its purpose is to provide a reasonably detailed explanation of your business for use by potential investors, suppliers, prospective employees, accountants, attorneys and other people who need a quick but comprehensive understanding of what your company does and its potential for success. The primary reason for a business plan is to record and convey information.
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Proposals may be unsolicited business ideas presented to a potential customer or partner, or they may be answers to requests for proposal submitted to your company by a potential client. They are limited in scope to a particular project or need. A business proposal also generally has a specific audience. The primary reason for a business proposal is to solicit or develop a business opportunity.
A business plan has three elements: description of the business model, the marketing model and financial projections. It consists of informative sections, including the executive summary, business description, marketing model, analysis of industry competition, build-out plan, operations plan, introduction of management, and a discussion of financial issues and projection of results. It is introduced by an executive summary, which can be a dense abstract or a longer marketing tool to attract interest in the business plan. The business plan is an informational document designed to factually display your company's operations and potential.
A business proposal written in response to a Request for Proposal (RFP) should follow the format requested in the RFP. Generally, this involves a quick description of your company's services and products that are relevant to the goals of the RFP, a reiteration of the scope of work, answers to specific questions posed in the RFP and a quote detailing materials, tools, labor, delivery and other elements of the cost of the project.
An unsolicited business proposal intended to create and develop a business opportunity follows essentially the same format but anticipates questions the potential client might have. A proposal is more of a marketing document, designed to convince the audience to do business by presenting a value proposition and a call to action.
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Types of project proposals, project proposal vs. project charter, project proposal vs. business case, project proposal vs. project plan, project proposal outline, how to write a project proposal, project proposal example, project proposal tips, what is a project proposal.
A project proposal is a project management document that’s used to define the objectives and requirements of a project. It helps organizations and external project stakeholders agree on an initial project planning framework.
The main purpose of a project proposal is to get buy-in from decision-makers. That’s why a project proposal outlines your project’s core value proposition; it sells value to both internal and external project stakeholders. The intent of the proposal is to grab the attention of stakeholders and project sponsors. Then, the next step is getting them excited about the project summary.
Getting into the heads of the audience for which you’re writing the project proposal is vital: you need to think like the project’s stakeholders to deliver a proposal that meets their needs.
We’ve created a free project proposal template for Word to help structure documents, so you don’t have to remember the process each time.
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Use this free Project Proposal Template for Word to manage your projects better.
In terms of types of project proposals, you can have one that’s formally solicited, informally solicited or a combination. There can also be renewal and supplemental proposals. Here’s a brief description of each of them.
All the elements in the above project proposal outline are present in our template. This free project proposal template for Word will provide you with everything you need to write an excellent project proposal. It will help you with the executive summary, project process, deliverables, costs—even terms and conditions. Download your free template today.
A project proposal is a detailed project document that’s used to convince the project sponsor that the project being proposed is worth the time, money and effort to deliver it. This is done by showing how the project will address a business problem or opportunity. It also outlines the work that will be done and how it will be done.
A project charter can seem like the same thing as a project proposal as it also defines the project in a document. It identifies the project objectives, scope, goals, stakeholders and team. But it’s done after the project has been agreed upon by all stakeholders and the project has been accepted. The project charter authorizes the project and documents its requirements to meet stakeholders’ needs.
A business case is used to explain why the proposed project is justified. It shows that the project is worth the investment of time and money. It’s more commonly used in larger companies in the decision-making process when prioritizing one project over another.
The business case answers the questions: what is the project, why should it be taken up, who will be involved and how much will it cost? It’s therefore related to a project proposal, but the project proposal comes before the business case and is usually part of the larger proposal.
Again, the project proposal and the project plan in this case are very similar documents. It’s understandable that there would be some confusion between these two project terms. They both show how the project will be run and what the results will be. However, they’re not the same.
The project proposal is a document that aims to get a project approved and funded. It’s used to convince stakeholders of the viability of the project and their investment. The project plan, on the other hand, is made during the planning phase of the project, once it’s been approved. It’s a detailed outline of how the project will be implemented, including schedule, budget, resources and more.
There are several key operational and strategic questions to consider, including:
In addition to these elements, it’s advisable to use a cover letter, which is a one-page document that helps you introduce your project proposal and grab the attention of potential clients and stakeholders.
To make the best proposal possible, you’ll want to be thorough and hit on all the points we’ve listed above. Here’s a step-by-step guide to writing a persuasive priority proposal.
The executive summary provides a quick overview of the main elements of your project proposal, such as your project background, project objectives and project deliverables, among other things. The goal is to capture the attention of your audience and get them excited about the project you’re proposing. It’s essentially the “elevator pitch” for the project life cycle. It should be short and to the point.
The executive summary should be descriptive and paint a picture of what project success looks like for the client. Most importantly, it should motivate the project client; after all, the goal is getting them to sign on the dotted line to get the project moving!
The project background is a one-page section of your project proposal that explains the problem that your project will solve. You should explain when this issue started, its current state and how your project will be the ideal solution.
You’ll need to define your project vision. This is best done with a vision statement, which acts as the north star for your project. It’s not specific as much as it’s a way to describe the impact your company plans to make with the project.
It’s also important to set up success criteria to show that the project is in fact doing what it’s proposed to do. Three obvious project success criteria are the triple constraint of cost, scope and time. But you’ll need to set up a way to measure these metrics and respond to them if they’re not meeting your plan.
To reduce the impact of risk in your project, you need to identify what those risks might be and develop a plan to mitigate them . List all the risks, prioritize them, describe what you’ll do to mitigate or take advantage of them and who on the team is responsible for keeping an eye out for them and resolving them.
The project scope refers to all the work that’ll be executed. It defines the work items, work packages and deliverables that’ll be delivered during the execution phase of your project life cycle. It’s important to use a work breakdown structure (WBS) to define your tasks and subtasks and prioritize them.
The best mindset when developing goals and objectives for your project proposal is to use the SMART system :
Your project approach defines the project management methodology , tools and governance for your project. In simple terms, it allows project managers to explain to stakeholders how the project will be planned, executed and controlled successfully.
If you want to convince internal stakeholders and external investors, you’ll need to show them the financial benefits that your project could bring to their organization. You can use cost-benefit analysis and projected financial statements to demonstrate why your project is profitable.
Project resources are critical for the execution of your project. The project proposal briefly describes what resources are needed and how they’ll be used. Later, during the planning phase, you’ll need to create a resource management plan that’ll be an important element of your project plan. Project requirements are the items, materials and resources needed for the project. This section should cover both internal and external needs.
All the resources that you’ll need for your project have a price tag. That’s why you need to estimate those costs and create a project budget . The project budget needs to cover all your project expenses, and as a project manager, you’ll need to make sure that you adhere to the budget.
Once you’ve defined your project scope, you’ll need to estimate the duration of each task to create a project timeline. Later during the project planning phase , you’ll need to create a schedule baseline, which estimates the total length of your project. Once the project starts, you’ll compare your actual project schedule to the schedule baseline to monitor progress.
Now let’s explore some project proposal examples to get a better understanding of how a project proposal would work in the real world. For this example, let’s imagine a city that’s about to build a rapid transit system. The city government has the funds to invest but lacks the technical expertise and resources that are needed to build it, so it issues a request for proposal (RFP) document and sends it to potential builders.
Then, the construction companies that are interested in executing this rapid transit project will prepare a project proposal for the city government. Here are some of the key elements they should include.
Whatever project proposal you’re working on, there are a few tips that apply as best practices for all. While above we suggested a project proposal template that would have a table of contents, meaning it would be many pages long, the best-case scenario is keeping the proposal to one or two pages max. Remember, you’re trying to win over stakeholders, not bore them.
Speaking of project stakeholders , do the research. You want to address the right ones. There’s no point in doing all the work necessary to write a great proposal only to have it directed to the wrong target audience. Whoever is going to read it, though, should be able to comprehend the proposal. Keep the language simple and direct.
When it comes to writing, get a professional. Even a business document like a project proposal, business case or executive summary will suffer if it’s poorly constructed or has typos. If you don’t want to hire a professional business writer, make sure you get someone on your project team to copy, edit and proof the document. The more eyes on it, the less likely mistakes will make it to the final edition.
While you want to keep the proposal short and sweet, it helps to sweeten the pot by adding customer testimonials to the attachments. Nothing sells a project plan better than a customer base looking for your product or service.
ProjectManager allows you to plan proposals within our software. You can update tasks for the project proposal to signify where things stand and what’s left to be done. The columns allow you to organize your proposal by section, creating a work breakdown structure (WBS) of sorts.
When building a project proposal, it’s vital to remember your target audience. Your audience includes those who are excited about the project, and see completion as a gain for their organization. Conversely, others in your audience will see the project as a pain and something to which they aren’t looking forward. To keep both parties satisfied, it’s essential to keep language factual and concise.
Our online kanban boards help you think through that language and collaborate on it effectively with other team members, if necessary. Each card shows the percentage completed so everyone in the project management team is aware of the work done and what’s left to be done.
As you can see from the kanban board above, work has begun on tasks such as product documentation and design. Tasks regarding stakeholder feedback, ideation, market research and more have been completed, and there’s a good start on the engineering drawings, 3D rendering, supply chain sourcing and translation services.
A PDF is then attached to the card, and everyone added to the task receives an email notifying them of the change. This same process can be used throughout the life-cycle of the project to keep the team updated, collaborating, and producing a first-class project proposal. In addition to kanban boards, you can also use other project management tools such as Gantt charts , project dashboards, task lists and project calendars to plan, schedule and track your projects.
Project proposals are just the first step in the project planning process. Once your project is approved, you’ll have to solidify the plan, allocate and manage resources, monitor the project, and finally hand in your deliverables. This process requires a flexible, dynamic and robust project management software package. ProjectManager is online project management software that helps all your team members collaborate and manage this process in real-time. Try our award-winning software with this free 30-day trial .
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Whether you are in business, employment, or college pursuing a degree, understanding the basics of a business proposal is a skill that you must have. Most people use the terms business plan and business proposal interchangeably. These two documents are very different. A business plan is different from a business proposal in terms of content, structure, writing style, goals, and purpose. The most important difference to note is that a business plan is a written presentation of fact while a business proposal is a price quote and a call to action.
According to an article on Entrepreneur.com , a business plan is a document that outlines a detailed description of how a business is set up. It is a 5-year plan of a business showing the company structure, products and services, market findings from research, marketing strategy, planned budget and financial projections. It can be simply defined as the factual and wide description of a business and its projections. A business plan can be drawn by a start-up as well as a going concern.
A business proposal is a purposeful sales document formulated to illustrate how a business will carry out a project, give the value of the project to the prospective client and ask for the client's business. Therefore, it is a document that a business submits to another enterprise or organization putting forward a business arrangement.
A business plan ideally comprises three elements: description of the business model, the marketing strategy and financial projections. It includes informative sections, specifically the executive summary, business description (products and services), marketing plan, industry analysis (competitor analysis), build-out plan, internal analysis, operations plan, leadership structure or introduction of management, and financial projections -- discussion of financial concern and projection of results. The opening page is the executive summary. It can be an intense abstract or a detailed but precise marketing tool to draw interest in the plan. The business plan is an informational document intended to factually showcase the company's operations, goals and potential.
According to Sean Kerner from Tech Republic, the format of a business proposal depends on whether it solicited or unsolicited. A solicited proposal and in response to an RFP should take the format called for in the RFP. Usually, this entails a quick description of the services and products offered by your business and clearly showing their relevance to the goals of the RFP, a replication of the scope of work, response to specific questions raised in the RFP and a quotation detailing materials, equipment, labor, delivery and other basics of the project outlay. An unsolicited business proposal may or may not take the same format. The intention is to create and develop a business opportunity, and so it is advisable to follow the same format or any other that is popular with the industry or business. Be keen to address all the questions that the potential client might have. With an unsolicited proposal, it is up to you to decide the structure. Whichever format you choose, ensure that the proposal is professional, highlights key areas of interest, presents a value proposition, is thoroughly researched and loaded with facts and with a call to action.
A business plan is required for two main reasons. It clearly defines the scope of the business and in the process clarifies your thinking as the proprietor of the business. It offers you information that had not been considered previously. Simply put, it documents the vision of the business and how it will be achieved. This guides the business towards a practical strategy to guide the business for the time-frame enclosed by the plan. It is the blueprint to success of the business. It outlines strategies for converting the ideas into core competencies. It also presents the financial projections of starting and operating the business as well as estimation of revenue generation from business activities. Secondly, it offers comprehensive business information for use by potential investors and employees, suppliers, accountants, attorneys and other stakeholders. The primary function for a business plan is to record and pass on information.
A business plan is also used to raise funds in form of a business loan, venture capitalist, angel investors or incubation. When approaching these money lenders you must present a thoroughly researched and realistic business plan. The investors need to be sure that you are confident and truthful about the market statistics and financial projections indicated in the report. A business plan should be as truthful as possible because it is the blueprint and vision of the company. It provides a checklist of whether the objectives of the business are on track. According to experts, a professional business plan requires about six weeks of in-depth research and preparation. It is not possible to whip one a day before your appointment with investors.
The reason for a business proposal can be well explained based on the type of the proposal. There are two major types of business proposals: invited and non-invited. An invited proposal is submitted in response to an advertisement from the buyer or client. For instance, organization and government agencies wanting to purchases services and products from private suppliers invite contractors to place their bids. Alternatively, some businesses ask for Request for Proposals (RFP) from a selection of suppliers that they willing to consider as a prospective partner. In each case, the business is competing against other bidders. It is in the interest of your business to present a competitive and compelling business proposal.
Non-invited or unsolicited proposals are submitted to potential clients even when they have not requested for one. In this scenario, you give suggestions to the company or organization to purchase services or products in return for funds. For instance, you can tender a proposal to develop an app for an organization or training services for its staff. The most important thing in both cases is to come up with well researched offer to convince buyers. A business proposal is limited to the scope of the specific project or need. In addition, it has a specific audience. The primary function for a proposal is to solicit or grow a business opportunity.
You can look a business plan as more of an internal document. A proposal on the other hand is an external document used for presenting or selling the business to an external player. A business plan guides the activities of the business internally in terms of marketing strategies and revenue projections that should be achieved. A proposal shows the external players such as governments, donors or business partners what the business is all about and how it intends to carry out a project at hand or use the opportunity to generate revue for both partners.
For more information, here is an article on how to write a business proposal .
Entrepreneur.com: An Introduction to Business Plans https://www.entrepreneur.com/article/38290
If you want your business proposals, price quotes, and contracts to stand out above your competitors and give you the best chance at winning new clients, use ClientPoint's Proposal Software . It makes creating and formatting professional business proposals, price quotes, and contracts fast and easy.
Proposal writing tips, a business proposal checklist to help you win more clients, business proposal template - how to write a business proposal, what is a business proposal and how to write it for b2b sales.
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Business prop os al and business plan are relatively similar but distinctively different terms, making many use these two words interchangeably.
You’ll see distinguishing features in their content, structure, writing style, purpose, and goals. Even so, there are various similarities between a business proposal and a business plan.
The main distinguishing factor to note is that a business plan documents the growth strategy and presentation of facts, while a business proposal is a specific ask for an individual to take action (buy your service/product, partner with you in business, and invest in a particular business).
Let’s look at the two terms in detail and highlight a few examples when it’s appropriate to use.
A business proposal is a company’s documentation that goes directly to its prospective client. It’s usually written in an attempt to sell a company’s product or service.
While a business proposal is not an estimate, it’ll have certain financial details. An estimate is unofficial and simply a way to skim over the real costs without presenting the real picture.
In a nutshell, a business proposal shows a particular business idea intended to get investors to support this particular endeavor being suggested.
Although a business proposal shows an overview of what the company does (just like a business plan), its main aim is to provide information about the suggested business idea.
It answers any questions or concerns potential investors may have about the suggested business idea.
Prospero business proposal software can help you easily draft a competitive and compelling proposal to beat other bids. With its user-friendly interface and various proposal templates , you don’t have to create everything from scratch.
Let’s now look at the importance of a business proposal and a business plan.
The main reason a proposal is written can only be understood based on the type of proposal you want to draft. They’re two types of proposals; invited and non-invited proposals.
An invited proposal is submitted in response to an advertisement from a potential client. A good example is government agencies inviting contractors to bid on a particular service.
Alternatively, businesses request for proposals from a group of suppliers they’re willing to consider as prospective clients.
Non-invited proposals, on the other hand, are submitted to potential clients even when they haven’t requested one. In both instances, a company must develop a compelling proposal to convince buyers.
Proposals are limited in the scope of a particular need or project and written to specific audiences.
The main reason why businesses write proposals is to solicit or grow company opportunities. You can think of a proposal as an external document to present or sell the company to external players.
It shows what the business is all about and how it intends to carry out a particular project or use that opportunity to generate revenue for both parties.
A business plan is a factual description of a company on the operational and executive levels. It’s a written presentation of a company’s grand vision.
The document is typically tactical; it states where and when you want to start a project. Moreover, it will highlight when you’ll want to move on to the next phase of the project and how to accomplish that project.
It makes potential investors interested in a company (especially small startups that haven’t made a name for themselves).
A business plan will also provide an idea of what the business requires from professionals, such as attorneys and potential employees. It indicates whether or not a company’s business goals are realistic, let alone achievable.
Business plans are visions for your company and how you intend to execute all these visions. They outline financial projections of what a business will cost to develop and operate, plus an estimate of the revenues the business will generate.
Its main purpose is to provide a reasonably detailed description of the company for use by potential investors, suppliers, accountants, and prospective employees, among other people. For instance, one of the prerequisites for an SBA loan is an extensive and organized business plan.
Moreover, it’ll provide a quick but comprehensive view of what your company does and its chances for success.
The main reason companies write business plans is to convey and record information.
Here, the two documents have various components featured on them. Here’s a detailed description of their structure below:
Overall, the structure of a proposal will depend on whether it’s solicited or unsolicited.
A solicited proposal responding to a request for proposal takes the format of an RFP. Here are the components of a business proposal:
An unsolicited proposal to create a business opportunity follows the same format. It, however, anticipates questions potential clients might have .
A proposal is a marketing document designed to convince prospects to do business by presenting a value disposition plus a call to action.
Try creating your business proposal here .
A business plan has three components; sales tactics, business model description, and financial goals. More elaborately, it consists of the following section of information:
The business plan is more like an information document displaying the company’s operation and potential.
Many companies fail to follow this format while writing their business plan or proposal, a reason why most don’t win bids or prospective clients.
Using Prospero to write a professionally compelling business proposal and integrate your business plan can help you get investors interested in your company so that they want a sit at the table.
Business proposals differ from business plans in content, writing style, purpose, goals, and structure.
The sole distinguishing factor between the two terms is that a business plan is a factual presentation of facts, whereas a business proposal is an external market document that highlights a quote and a call to action.
Let’s look at some distinguishing features between the two terms:
A business plan provides a detailed description of how the business was set up, plus its project.
On the other hand, a business proposal is a purposeful sale document illustrating how a business will execute a particular project. Usually, it’s drawn and submitted to another enterprise or organization putting forward a business arrangement.
In addition, the structure of a business plan contains three elements, including a description of the business model , sales tactics, and financial projections.
On the other hand, the structure of a business proposal takes the format of an RFP if it’s solicited.
A business plan shows the scope of a business and, in turn, clarifies your thinking as a business owner and also gives you information that you hadn’t considered before.
Conversely, proposals show a limited scope of a specific project or need for a particular audience.
While trying to craft these two documents, you must seek proficient experts to help you write compelling proposals and plans to convince potential investors and other partners to invest in your business.
A business proposal can be divided into solicited and unsolicited proposals. How different are they? Let’s delve right in.
This is presented in response to a request for proposal (RFP) . It’s usually submitted responding to a work statement from sponsors.
These sponsors use the request for proposal to solicit a specific proposal for research, training, or to provide services or goods. The RFP includes standard terms, conditions, and assurance that the company is asked to accept.
A good example is when an organization or government agency wanting to buy products or services from a particular sector invites contractors to place bids.
In other scenarios, some businesses will ask suppliers to provide RFP to those they’re considering a partnership with.
The business is competing against other businesses that want to secure the same contract. It’s, therefore, in their best interest to provide compelling and competitive business proposals.
Prospero can assist you in such instances; it has the experience and expertise to curate excellent proposals that win contracts. Call it today to generate a proposal with its Prospero business proposal generator.
This proposal is submitted to potential clients, even when they haven’t asked for one.
In such circumstances, a business wanting to secure a contract will suggest a product or service to a potential organization in return for funds.
A good example is when an organization tends a proposal to develop an application or renders some training services to its staff.
Just like solicited business proposals, a company must curate a well-researched proposal that will convince prospective clients you’re the right candidate for the job.
Business plans are also categorized into four types, including
These types require different degrees of labor and are not always proportional to results.
Presentation Plan
Using PowerPoint to present information about a business has revolutionized the way companies create and showcase their business plans. Many business owners lose sleep trying to figure out how to present a plan that can significantly impact their company’s future.
Therefore, it’s crucial to understand the ins and outs of a business plan presentation in order to effectively communicate your ideas and strategies to potential investors or stakeholders.
This is a plan used to operate your business. The plan can be long in detail but shorter in presentation. There’s no room for informality or candor while preparing it.
If you’re considering presenting this plan to a loan committee, you’ll have to describe a competing rival primarily on a price basis.
A working plan used to create outlines for internal use may have some elements omitted; probably, you’ll not need to add an appendix with a resume of key executives.
Internal policy considerations may guide what to include or exclude in the working plan.
A business must prepare for unforeseen circumstances. The company may want to have a contingency plan when seeking bank financing.
This plan is usually curated in the worst-case scenario that you can foresee your business surviving. It’s important to shelter yourself from things like loss of market share, the defection of a key member of management, and heavy price competition.
A contingency plan can help cover the fears of bankers and investors by demonstrating that your business has considered more than one rosy circumstance.
Moreover, your business can benefit from a what-if plan in situation acquisition. It can help you outline the worth of the acquisition and how it can affect the core business.
In summary, you can say that a business plan is more of an internal document, whereas a business proposal is an external one that is used to sell the product or service of a company to prospective clients.
In addition, a business plan guides the activities of a company internally in terms of revenue projections and marketing strategies that must be achieved in a particular time frame.
On the other hand, a business proposal will show external parties like a government agency and sponsors what the business is all about to convince them to invest in your business. The proposal should outline how you will carry out a particular project to generate revenue.
Whether trying to curate a business plan or proposal, it has to be compelling and competitive to beat other bidders.
Working with Prospero to generate professionally written proposals or plans is essentially wise. It has a variety of templates for different industries and comes with a lot of customization options. Some ready-made content are also available so you won’t need to write from scratch every now and then.
You can manage and track the performance of your proposals through its built-in analytics, so your sales team would be more productive and efficient.
It’ll increase your chances of securing contracts and proposals that can take the business to the next level.
Sign up today and create your first proposal!
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One of the most searched queries on Google is "business proposal vs business plan", and we are here to break the confusion.
April 13, 2023
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You are starting a new business, and you aren't sure what you need to do. You heard that you needed a business proposal and a business plan, but you weren't sure what's the difference between them.
You did some research and couldn't find what you are looking for... You decided to create both of them, but you need weeks to write and refine them.
Don't worry, we are here to remove this confusing process. Let's see what's the difference between them. You may, and probably do need both of them. But which one should be your priority?
When you're starting a business, one of the most important things you'll need to do is create a business plan . This document will outline your company's goals and strategies for achieving them over the next five years.
A business proposal , on the other hand, is a sales document that you put together to pitch potential projects to clients. It's not the same as a business plan, and it usually includes cost quotes for potential projects.
The main difference between a business proposal and a business plan is that, while a business plan is informative, a business proposal is intended to showcase operations, goals, and potential.
The executive summary of a business plan will include information about the company leadership structure or the introduction of management. Generally, business plans include an executive summary part while business plans don't.
We have seen some samples that use executive summaries but since the main goal is to close a deal. We suggest keeping them short and clean.
The business proposal format depends on whether the business is solicited or unsolicited . Details of products and services offered, the scope of work and responses to specific questions in an RFP are included in a business proposal.
A business plan documents the vision of a business and how it will be achieved. A business proposal offers comprehensive information for potential investors, suppliers, accountants, etc.
A proposal shows the external player what the company is all about and how it intends to carry out its project. Keep these differences in mind when you're putting together your next business presentation --you'll need to tailor your content accordingly!
A business plan is a document that outlines the business goals, strategies, and tactics a company will use to achieve those goals. The business plan also includes an overview of the company, its management team, the target market, and the products and services the company plans to offer.
It usually includes information about the company's products and services, target market, marketing plans , financial forecasts, and management team bios.
Here's a sample template to use while creating a detailed business plan.
A business plan is a key document for any business. It lays out the goals and strategy of the business and helps to ensure that everyone involved in the business is on the same page. It can also be used as a tool to help secure funding from investors or banks.
A business plan is a document that outlines the strategy and goals of a company. It can be used as a planning tool , to track progress, or as a basis for making decisions . A well-written business plan provides a roadmap for the business , and it can help attract investors or partners.
There are many reasons to create a business plan. Some of the most common reasons include:
A business proposal is a written document that offers a solution to a problem or a way to achieve a goal. It is often used to sell products or services to a potential customer. A business proposal must be well-written, clear, and concise in order to convince the reader to take the desired action.
A business proposal is a formal response sent to an RFP (request for proposals). It is a way for the seller to convince the buyer that their proposed solution is the right one in order to win business. Business proposals are meant to persuade a prospective client.
A business proposal typically consists of four main points: what are the challenges, how your solution solves the problems, why they should choose you over others, and the best pricing options available. The price is typically stated in the document. If a business is requesting proposals, they should be sent in their format. An RFP response should include specific details about the scope of work and the cost estimate.
Here's a sample template to use while creating a detailed business proposal.
A business proposal is a key part of the business development process . It is a document that outlines the business goals, strategies, and tactics that will be used to achieve those goals. A proposal is used to convince potential clients or partners that your business is the best option for them.
It's typically used to pitch an idea to a potential client or customer. A well-crafted proposal can help you win new business and close deals.
Your company might be expanding into a new market and need to propose a new product or service. Or, you might be approached by another company with an opportunity you'd like to explore. Maybe you've identified a gap in the market and want to propose a new product or service to fill it.
Well, we do have a comprehensive guide to business proposal creation with templates and examples, but if you need a more brief explanation, keep reading!
When preparing for a business proposal, it is important to do your research and understand the client's needs. You should also have a clear understanding of your own company's capabilities and what you can offer the client. Additionally, it is important to be well-organized and to have a strong pitch.
You should have a clear understanding of your target audience and what will appeal to them. You also need to have a good grasp of the competition and what they are offering. In addition, you should be familiar with the terms and conditions of any potential contracts that may be involved.
Your proposal should be neatly formatted and easy to read. It should also be free of grammatical errors and typos. Be sure to proofread your work carefully before submitting it.
Make sure you provide complete contact information, as well as an outline of your proposed solution or service. If possible, include testimonials from past clients who have been satisfied with your work.
Remember that you are offering a valuable service that can help the reader achieve their goals. Believe in yourself and your ability to succeed, and you will be able to deliver a winning proposal every time
When writing a business proposal, make sure to follow this brief outline:
- Introduce yourself and your company
- Outline the proposal's purpose
- Explain the problem that you're trying to solve
- Describe your solution
- Explain the benefits of your solution
- List your qualifications
- Request a meeting
It should include an overview of the product or service, information about the company proposing it, financial projections, and terms and conditions. A well-crafted proposal can help your company win new contracts and increase sales.
Here's another sample template you can use while creating a business proposal:
Here's a story of our customer John who joined the Decktopus community 2 years ago.
John had been working in sales for years, but he had never worked in a company that sold products. When he was hired by a new startup, he was excited about starting making sales and increasing profits. However, he soon realized that there was no one in the company who knew how to sell. The founder of the company told him that he would need to create a presentation template to share with the other reps.
John wasn't sure where to start. He read article after article, trying to gather information about what made a good business proposal. After weeks of research, he finally created a template that he felt confident in sharing with his fellow reps. He was excited to see how it would help them increase sales and profits.
This is the outline we gathered while our support team helped him along the way:
-Executive Summary
-Problem/Opportunity Statement
-Business Plan
- Marketing Plan
-Financial Plan
An unsolicited proposal is one in which the company offers a product or service to a potential customer who has not solicited it. Here's an unsolicited proposal template .
A solicited proposal is one in which the company responds to a request for proposal (RFP) from a potential customer. Here's a solicited proposal template .
A proposal to bid is a document that a company submits to a potential customer in response to an RFP.
The purpose of the proposal to bid is to persuade the potential customer that the bidder's product or service is the best option among those being considered.
Here's a proposal to bid template .
A business plan has three main sections: the executive summary, a description of the business model, and financial projections.
The first section is an introduction that should be no more than one or two pages long. It should include a brief overview of your company, its products and services, and how you plan to make money.
The second section, a description of the business model, provides details about your company's competitive landscape, industry trends, and how you plan to reach your target market.
The marketing model is an informative section that should include detailed information about the industry competition and build-out plan. This part of the document can be several pages long and will help investors understand your company's place in the market.
While all three sections are important, remember that potential investors will likely focus on the financial projections most closely when deciding whether to invest in your company. The financial projections section is important because it shows potential investors how you expect your business to grow over time.
A well-crafted business plan can help convince potential investors to put their money into your company.
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Creating a business proposal that will be read, assimilated and signed is a challenge all proposal writers face. Your proposal is a key element of your sales process, evaluated by many influencers, stakeholders and decision makers, so you must do everything in your power to guide them and help them understand, support and accept your project.
Have you ever wondered if all your proposals were as strong as they could be? Did they really answer the client's questions and showcase your project in the best light? Did they highlight your expertise and know-how? While a great proposal doesn’t always guarantee a win, a poorly crafted one can almost certainly lead to a loss.
We’re here to help! Below are 6 simple steps to improve your proposal process and create submissions that evaluators will want to read—and award.
Working on a complex, high-priority proposal means collaborating with many contributors and managing numerous cross-team tasks. Finding the right elements at the right time and ensuring content accuracy can be exhausting.
To streamline this process, start by creating standardized templates and a content database for your team. This allows them to quickly find, leverage, and tweak up-to-date content, ensuring consistency across your proposal. By doing so, you save time for addressing the unique requirements of each bid. Work smarter, not harder!
You put a lot of effort into your proposal, so don’t undermine it with a confusing layout! Tables without titles, a missing table of contents, sloppy design, long blocks of text without bullet points or graphics, and inconsistent margins all send a bad message: "Your project isn't important enough for us to craft a proposal you’d want to read and support."
Even if these issues are last-minute oversights or mistakes, evaluators won’t care—they won’t waste time trying to understand a poorly designed proposal. They’ll skim through it and quickly move on to the next bid.
Setting up your layout according to your brand guidelines and proposal specifications will eliminate formatting mistakes. Automating this process helps prevent last-minute errors. You’ll save time and produce a polished, easy-to-read proposal that evaluators want to engage with. A quality layout leads to a quality proposal, making it easier for evaluators to read and ultimately consider your bid.
Creating a proposal is a collaborative process. Each team member must manage their content while staying in sync with the overall proposal. However, real-time collaboration among multiple contributors is nearly impossible using a traditional document editing tool.
By using a collaborative database, proposal writing becomes far more efficient. An up-to-date database allows contributors to access accurate information and skip the dreaded blank page. Plus, when multiple contributors work simultaneously on the same document, you avoid the headache of managing multiple versions and the time-consuming task of consolidation.
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The proposal review process is a best practice for inspecting and improving content throughout the writing process. They are iterative, aim...
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Does your proposal serve your needs more than those of your client? A strong proposal is focused on the customer’s needs from beginning to end.
Your proposal should be about them, not you. It should highlight the impact your solution will have on their business, not just promote your product or service.
To accomplish this, you must thoroughly research and understand your customer. What are their needs and requirements? What challenges are they facing? What do they hope to achieve? Craft your argument by showing how your solution will help them meet their goals.
Clarity is key when writing a winning proposal! Demonstrate how your offer stands out by presenting relevant information aligned with your customer’s needs and requests. Use clear, concise language to explain how your solution addresses their requirements, and don’t hesitate to use illustrations or diagrams to clarify your points.
Remember, evaluators have to review many proposals. Lengthy paragraphs, long-winded sentences, and unclear messaging are the last things they want to deal with. Make it easy for them by:
Ready to hit "send"? Hold on. Have you and your team thoroughly proofread the proposal to avoid errors and inaccuracies? Your proposal reflects the importance you place on your client’s project and the quality of work they can expect from your company. Even small typos leave a bad impression. So does outdated or conflicting information. This is where evaluators might lose patience and quickly turn to a competitor’s bid.
Streamline your proposal process with a solution that offers an integrated workflow. This will help keep your team on track, giving you more time to focus on final reviews that improve overall quality.
The key to creating the perfect proposal is to continually improve your process. Focus on short-term gains while building a long-term strategy. Adopting a document solution with a centralized database for your proposals will boost both efficiency and quality, helping you land that winning bid.
Amo has a degree in Applied Chemistry, and 20 years sales experience working in media, adtech and data insight solutions. He enjoys spending time with his children, watching his son play cricket, and cooking with his daughter. He is passionate about powerlifting and most mornings you can find him in a gym lifting heavy weights.
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Published: Feb 28, 2024, 2:00pm
What is a business proposal, business plan vs. business proposal, objectives of a business proposal, essential elements of a business proposal, 7 steps to write a business proposal, bottom line, frequently asked questions (faqs).
Writing a business proposal is a crucial skill if you wish to run a successful and profitable business. Knowing how to write a business proposal is not necessary for presenting your product or services in the best possible manner. It’s about convincing others that your solutions are the best fit for their needs. Crafting an effective business proposal can open doors to immense opportunities.
In this article, you will learn the essential components of an effective business proposal as well as techniques that ensure your proposal captures and retains client interest. Let’s dive in and explore the art of creating compelling business proposals.
A business proposal is a document designed to persuade a potential client or customer to buy a specific product or service. It’s a tailored argument that outlines the benefits of your approach, solution or product, specifically addressing the requirements of the recipient. A business proposal must not only communicate your vision but also persuade the recipient of the proposal to take positive action.
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Understanding the different types of business proposals is key to selecting the right approach for your situation. Typically, proposals are categorized into two main types: solicited and unsolicited.
Solicited proposals are those that are requested by a potential client, often in response to a request for proposal (RFP). These tend to have a prescribed format and specific requirements, making it crucial to follow the guidelines provided. Unsolicited proposals are not requested by a client but are sent proactively. They require a more persuasive approach as you’re introducing a solution to a problem the client may not have actively considered.
Additionally, there are informal and formal proposals. Typically, informal proposals are shorter and used in a more relaxed business setting or with existing clients. In contrast, formal proposals are longer, more detailed and used in situations requiring thorough analysis and presentation, often for new clients or large projects.
A business plan is a comprehensive document that outlines the overall vision, strategy and goals of your business. In contrast, a business proposal is a targeted pitch to a specific client or organization, offering a solution to a problem or a strategy for achieving a specific goal.
A business plan is primarily used for internal planning and, often, to secure funding from investors. A typical business plan includes an overview of your business model, market analysis, financial projections and long-term strategic plans. However, unlike the broad scope of a business plan, a proposal is your chance to showcase how your services or products can benefit the prospective client, tailored to their specific needs and challenges.
While a business plan lays out the path your business intends to take, a business proposal is a direct response to a potential client’s problem, demonstrating how you intend to solve it effectively.
A business proposal is a strategic tool that can be used in negotiations, aiming to convince a potential client or partner of the value as well as viability of your proposed solution to their problem or need. Here are some of the most important objectives of a business proposal.
The core objective of a business proposal is to persuade the recipient that your solution is the best fit for their problem or need. It’s about making a compelling case for your approach, services or products.
A well-written proposal also informs the reader. It should provide all necessary details about your solution, including how it works, its benefits and why it stands out from the competition.
Through your proposal, you demonstrate your understanding of the client’s needs and your capability to meet them. This is your chance to showcase your expertise and past successes.
A good proposal also serves as a starting point for further discussions. It opens up a channel of communication with the potential client, inviting them to negotiate terms, ask questions and seek clarifications.
Understanding these objectives can guide the tone, content and structure of your proposal. Listing your products or services is not enough. You need to craft a narrative that aligns with the client’s needs and paints a clear picture of how you can fulfill those needs effectively and efficiently.
To create an effective business proposal that persuades the recipient to take action, include these key components:
Click on the state below to get started.
Crafting a compelling business proposal requires the right blend of clarity, persuasion and attention to detail. The key to a successful business proposal is not just in what you include, but how you present it. Follow this step-by-step guide to ensure your proposal stands out:
After submitting the proposal, plan a follow-up strategy. This might include a phone call or an email to discuss any questions and reiterate your interest in working with the client.
The visual appeal of your business proposal plays a crucial role in its effectiveness. Here are a few tips to keep in mind while writing a proposal:
In business proposal writing, common pitfalls can significantly reduce your chances of success. Here are a few for your reference:
Click to get started.
In this article we’ve explored the essentials of crafting effective business proposals, distinguishing them from business plans and highlighting key components as well as common pitfalls. Equipped with these insights, your next step should be to apply this knowledge in practice.
Creating a versatile business proposal template can be a great starting point. You can then customize the template to create business proposals that win you clients and drive business success.
The main point of a business proposal is to present a tailored solution to a specific client or business problem. It aims to persuade the recipient that your approach or service is the best fit for their needs, outlining how it offers value and addresses their unique challenges. The proposal serves as a strategic tool for initiating business relationships and securing contracts.
A business funding proposal is structured to concisely present your business idea, market potential and financial needs. It typically includes an executive summary, a detailed description of the business, market analysis, specifics of the financial request and a plan for funds utilization. The proposal also highlights your business’s management team, projected financials and return on investment to assure potential investors of the viability and profitability of the venture.
The three main types of business proposals are:
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A business plan and a business proposal are very different documents. If you do an Internet search for how to write a business proposal, the results are predominantly focused on writing a business plan. Nevertheless, the two documents have different purposes and goals. A business plan is a factual broad description of a company and its prospects. A business proposal is a focused sales document intended to describe how a company will approach a project, state the value of the project to the client, and solicit the client's business. A business plan is a written presentation of facts. A business proposal is a quote and call to action.
A business plan documents your vision for your business and how you intend to achieve that vision. It contains financial projections of what the business will cost to develop and operate plus an estimation of the revenues to be generated. Its purpose is to provide a reasonably detailed explanation of your business for use by potential investors, suppliers, prospective employees, accountants, attorneys, and other people who need a quick but comprehensive understanding of what your company does and its potential for success. The primary reason for a business plan is to record and convey information.
Proposals may be unsolicited business ideas presented to a potential customer or partner, or they may be answers to requests for proposals submitted to your company by a potential client. They are limited in scope to a particular project or need. A business proposal also generally has a specific audience. The primary reason for a business proposal is to solicit or develop a business opportunity.
A business plan has three elements: description of the business model , the marketing model, and financial projections. It consists of informative sections, including the executive summary, business description, marketing model, analysis of industry competition, build-out plan, operations plan, the introduction of management, and a discussion of financial issues and projection of results. It is introduced by an executive summary, which can be a dense abstract or a longer marketing tool to attract interest in the business plan. The business plan is an informational document designed to factually display your company's operations and potential.
A business proposal is written in response to an RFP--A request for proposal (RFP) is a document that solicits proposal, often made through a bidding process, by an agency or company interested in procurement of a commodity, service or valuable asset, to potential suppliers to submit business proposals --should follow the format requested in the RFP.
Generally, this involves a quick description of your company's services and products that are relevant to the goals of the RFP, a reiteration of the scope of work, answers to specific questions posed in the RFP and a quote detailing materials, tools, labor, delivery and other elements of the cost of the project. An unsolicited business proposal intended to create and develop a business opportunity follows essentially the same format but anticipates questions the potential client might have. A proposal is more of a marketing document, designed to convince the audience to do business by presenting a value proposition and a call to action.
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27 comments on “ the difference between a business plan and a business proposal ”.
Great work! the topic is really an interesting one, well a business plan is something organizing your work like with QuickBooks tool hub, and the business proposal is the opposite of the latter one. For better account, management one should download the QuickBooks tool hub. keep it up the great work. looking towards your next blog.
This could be the best and most simplified article on this issue I’ve come across. Straight to the point and very informative.
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i have never found it broken down as easy as this before. Thank you. it’s very helpful
Amazing job! The best and most informative article explicitly calling out the purpose and goals of a Business Plan and a Business Proposal.
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I appreciate your thought there with that one, because of course I agree, but I’m confused with why you thought it should be added. Don’t you think plan vs. actual is included with point 3, “It’s specific. You can track results against plan,” and then point 8 “It has to bring the planning process with it, meaning regular review and course correction?”
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A project proposal is a written document outlining everything stakeholders should know about a project, including the timeline, budget, objectives, and goals. Your project proposal should summarize your project details and sell your idea so stakeholders buy in to the initiative. In this guide, we’ll teach you how to write a project proposal so you can win approval and succeed at work.
All projects have creation stories, but they don’t start with someone declaring, “Let there be resources!” To move forward with a project, teams must submit a proposal to decision-makers within their organization or to external stakeholders.
A project proposal is a written document outlining everything stakeholders should know about a project, including the timeline, budget, objectives , and goals. Your project proposal should summarize your project details and sell your idea so stakeholders feel inclined to get involved in the initiative.
The goal of your project proposal is to:
Secure external funding
Allocate company resources to your project
Gain stakeholder buy-in
Build momentum and excitement
Project proposals and project charters serve different purposes in the project creation process, and it’s important to understand the difference between the two. While a project proposal takes place in the initiation phase of the project, the project charter takes place in the planning phase.
As mentioned above, a project proposal is a persuasive document meant to convince stakeholders why the project should be carried out. A project charter is a reference document that defines project objectives, and it can’t be created until the project proposal is approved.
People also confuse the business case with the project proposal, but the business case also comes after the proposal. Once the project is approved through a proposal, a business case may be used to secure additional funding for the project.
There are six types of proposals you may encounter as a project manager, and understanding the different formats can be useful as you write yours. Each type has a different goal.
Solicited: You’ll send solicited proposals in response to a Request for Proposal (RFP). An RFP announces a project in detail and asks for bids from qualified teams. Because you’re competing against other companies for this type of proposal, you must do thorough research and write persuasively.
Unsolicited: You’ll send unsolicited proposals without an RFP, meaning no one asked for your proposal. In this case, you won’t be up against other companies or teams, but you’ll still need to be persuasive because you have no knowledge of whether the stakeholder you’re pitching to needs you.
Informal: You may have a client send you an informal request for a project proposal, in which case you can respond with your project pitch. Because this isn’t an official RFP, the rules are less concrete.
Renewal: You’ll send renewals to existing clients in hopes that they’ll extend their services with your organization. In this type of project proposal, the goal is to emphasize past results your team has produced for the client and persuade them you can produce future results.
Continuation: You’ll send continuations as a reminder to a stakeholder letting them know the project is beginning. In this project proposal, you’ll simply provide information about the project instead of persuading the stakeholder.
Supplemental: Similar to a continuation proposal, you’ll send a supplemental proposal to a stakeholder already involved in your project. In this type of proposal, you’re letting the stakeholder know the project is beginning, while also asking for additional resources. You should persuade the stakeholder to contribute more to the project in this proposal.
The tone of voice and content of your project proposal will differ based on the type of proposal you’re sending. When you know your project goals, you can write your proposal accordingly.
These step-by-step instructions apply to most project proposals, regardless of type. You’ll need to customize your proposal for the intended audience, but this project proposal outline can serve as a reference to ensure you’re including the key components in your document.
The executive summary serves as the introduction to your project proposal. Similar to a report abstract or an essay introduction, this section should summarize what’s coming and persuade the stakeholder to continue reading. Depending on the complexity of your project, your executive summary may be one paragraph or a few paragraphs.
Your executive summary should include:
The problem your project plans to solve
The solution your project provides for that problem
The impact your project will have
You should only address these items briefly in your executive summary because you’ll discuss these topics in more detail later in your proposal.
In this section, you’ll go into the background of the project. Use references and statistics to convince your reader that the problem you’re addressing is worthwhile.
Some questions to include are:
What is the problem your project addresses?
What is already known about this problem?
Who has addressed this problem before/what research is there?
Why is past research insufficient at addressing this problem?
You can also use this section to explain how the problem you hope to solve directly relates to your organization.
You just presented a problem in the project background section, so the next logical step in proposal writing is to present a solution. This section is your opportunity to outline your project approach in greater detail.
Some items to include are:
Your vision statement for the project
Your project schedule , including important milestones
Project team roles and responsibilities
A risk register showing how you’ll mitigate risk
The project deliverables
Reporting tools you’ll use throughout the project
You may not have all these items in your proposal format, but you can decide what to include based on the project scope . This section will likely be the longest and most detailed section of your proposal, as you’ll discuss everything involved in achieving your proposed solution.
Defining your project deliverables is a crucial step in writing your project proposal. Stakeholders want to know what you’re going to produce at the end of your project, whether that’s a product, a program, an upgrade in technology, or something else. As the stakeholder reads through your vision, this will be the section where they say, “Aha, this is what they’ll use my resources for.”
When defining your deliverables, you should include:
The end product or final objective of your project
A project timeline for when deliverables will be ready
SMART goals that align with the deliverables you’re producing
While it’s important to show the problem and solution to your project, it’s often easier for stakeholders to visualize the project when you can define the deliverables.
Now that you’ve outlined your problem, approach, solution, and deliverables, you can go into detail about what resources you need to accomplish your initiative.
In this section, you’ll include:
Project budget : The project budget involves everything from the supplies you’ll need to create a product to ad pricing and team salaries. You should include any budget items you need to deliver the project here.
Breakdown of costs: This section should include research on why you need specific resources for your project; that way, stakeholders can understand what their buy-in is being used for. This breakdown can also help you mitigate unexpected costs.
Resource allocation plan : You should include an overview of your resource allocation plan outlining where you plan to use the specific resources you need. For example, if you determine you need $50,000 to complete the project, do you plan to allocate this money to salaries, technology, materials, etc.
Hopefully, by this point in the proposal, you’ve convinced the stakeholders to get on board with your proposed project, which is why saving the required resources for the end of the document is a smart strategic move.
Finally, wrap up your project proposal with a persuasive and confident conclusion. Like the executive summary, the conclusion should briefly summarize the problem your project addresses and your solution for solving that problem. You can emphasize the impact of your project in the conclusion but keep this section relevant, just like you would in a traditional essay.
Following the steps listed above will ensure your project proposal has all the right elements. But if you want to impress your readers and win their approval, your writing must shine. In addition to the above, a project proposal includes:
As you write your proposal, keep your audience (i.e. the stakeholders) in mind at all times. Remember that the goal of the proposal is to win your audience over, not just to present your project details. For example, if you’re creating a new editing tool for a children’s publishing house, can you determine whether your stakeholders are parents and appeal to their emotional side when persuading them to buy in to your product?
Persuasion is important in a project proposal because you’re hoping your audience will read your proposal and do something for you in return. If your reader isn’t intrigued by your project, they won’t feel inclined to help you. If you describe your editing tool but don’t mention the many features it will offer, how it will benefit clients, and its positive impact in the industry, your audience will wonder, “Why should I care about this project?”
While you should go into detail on your problem, approach, and solution, you shouldn’t make your project proposal overly complex. This means you can discuss the project plan for your proposed editing tool without discussing what codes the engineers will use to make each feature work.
A successful project proposal includes thorough research. Be prepared to back up your problem—and solution—with reputable sources, case studies, statistics, or charts so you don’t leave your audience with questions. When writing your proposal, put yourself in the reader’s shoes and ask:
Why is this a problem?
How is this a solution to the problem?
Has anyone addressed this problem before?
What are the project costs?
If you can answer these questions, then you’ve likely done enough research to support your proposed initiative.
Good project proposals require team collaboration . With the right management tools, your team can communicate, share information, and work together on one shared document.
When you store all your project information in one place, it’s easy to access that data when you need it. Project proposals stem from well-organized and properly planned projects, which is why project management software is a key resource to effectively write a project proposal. Ready to get started? Try Asana .
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When it comes to your business, getting sales and new clients are your lifeblood. That’s why it’s crucial to master writing and designing a professional business project proposal. And it helps to know the different types of proposal you may need to create.
A business proposal that's well-written and has a polished design can mean the difference between winning or losing potential clients. But what is a business proposal exactly? What should it include and how do you make sure your business proposal is effective?
In this post, we’ll answer these questions. We'll also share what you need to know about most effective business types of proposals. Plus, we'll explain how to write and design a standout proposal that helps you close more sales.
Businesses use business project proposals to convince others to buy their products and services. A business project proposal will identify the buyer’s pain points and present the right solution for those pain points. Different types of business proposals achieve different goals, as you'll see later on.
The purpose of the proposal is to inform potential buyers about your goods and services and to serve as a sales pitch that helps close the sale. Business proposals streamline the selling process and outline exactly what the project will entail, eliminating the scope creep later.
For a quick guide on how to write a business project proposal, study this tutorial:
If you and your prospective client are keen to work together, you may be tempted to skip the business project proposal. But that can be a big mistake. Having a written project proposal has several advantages. These include:
“You have to put forth the necessary efforts and resources to know client values, what you can deliver, and weaknesses of competitors, to develop a compelling blueprint or win strategy.”
Writing and designing a business project proposal isn't easy. But the good news is that you don’t have to start completely from scratch. There are many business proposal templates available online.
Professionally designed templates will save you time because they already have everything in place. All you've got to do is drop in your content. Each template also serves as a project proposal example that can guide you in writing a project proposal.
One of the best places to find great business project proposals is Envato Elements. It's a subscription-based marketplace with thousands of modern and professional business project proposal templates .
Download as many business project proposal templates as you want: all for a low-monthly fee. Besides business proposal templates, Envato Elements has thousands of other unlimited-use design assets such as:
Another place where you can find even more great business project proposal templates is GraphicRiver.
This marketplace is part of Envato Market, a suite of marketplaces catering to various creative needs. On GraphicRiver , buy individual business project proposal templates on an as needed basis.
We’ve just covered what business project proposals are and how you can save time with professional business proposal templates. Now let’s talk about what are the different types of business proposals. By knowing the difference between types of business proposals, you’ll know exactly which proposal to send to each client.
There are six different types of business project proposals:
Let’s go over each of these below:
Use this type of proposal when you're responding to an official request for proposal. In most cases, this will be the easiest type of proposal to write as the potential client or customer will specify what they're looking for. In some cases, they'll even outline what they want the proposal to cover.
This type of proposal is the same as the formally solicited proposal, but with one difference. The information in the proposal isn’t clearly specified in an official document or request.
Typically, you’ll write this proposal when a client or customer is interested in what you've got to offer and asks for a proposal. Since the client doesn’t specify their needs, you’ll have to do more research on your part to analyze the client and understand what they're looking for.
The unsolicited proposal like a cold call. You could send an unsolicited proposal if you stumbled upon a potential client and think that your offer is exactly what they need. This is one of the hardest proposal types to write. You’ll have to do plenty of research upfront and be very convincing in how you present your project proposal ideas.
Send a continuation proposal when you want to send a reminder or an update about an ongoing project that’s already been approved. All you’re doing with this proposal is providing an update on the project and asking for approval to carry on with the project. These proposal types are the easiest to write unless the client wants major changes moving forward.
Use the renewal proposal after you’ve completed a project and want to make a case for continued support. When it comes to renewal proposals remember to provide convincing proof why it’s beneficial to continue with the project.
Lastly, the supplemental project proposal is reserved for when you need approval for extra resources for the project. Provide reasons and justify why those resources are needed and create an updated estimate of what the project will take to complete.
No matter what type of proposal you’re writing, there are common sections that should be included in every business project proposal. These include:
Your proposal should also make it clear to the potential client why you’re the perfect fit for the project by including this information:
By now, you know the different types of business project proposals and what each proposal should include. Let’s tackle some writing and design tips that'll help you write a winning proposal in 2021 so you can confidently close more sales:
The first step in writing and designing your business project proposal is to make a plan. The plan should include researching your client and their business.
Research helps you understand the problems, the budget, the preferred timelines, and specific industry requirements. This ensures that your proposal will present them with the best possible solution. The tips in this article can help:
After you’ve familiarized yourself with the client and their problems, create an outline for your proposal. Make a note of all the sections you want to include and the points you want to cover.
Learn more about proposals for freelancers and other creatives tutorial:
Once you've got a plan for your proposal, you need to clearly state the problem. This section has to make it obvious to the client what their pain points are and why they need to act on the problem. It should convince them to take action by relating the problem back to them, using their own words and concepts they can easily understand.
Now that your audience is aware of their problem and they know what happens if they don’t act, it’s time to present them with a solution. You’ll want to back this up with evidence and data. Show the benefits of the solution along with the steps necessary for the successful implementation of the solution. This will make it clear what they can expect throughout the entire project.
Your potential clients will also be interested in how long the project will take as well as how much it’s going to cost them. Include a section that gives accurate estimates of time, materials, expenses, and other resources needed.
Here's a tutorial to help you figure out what to charge:
When you’re done writing out all the necessary sections of your proposal, conclude with a section that outlines next steps. This can include asking them to get in touch with you via phone or email, booking an appointment, sending over a signed proposal or similar.
Be clear and concise here. As we mentioned earlier, include your contact information in case they've got any questions.
When it comes to the design of your proposal, include plenty of visuals. Photos, charts, graphs, icons, and infographics can help potential clients visualize how the project will go. It'll also make it easier for them to understand more abstract or complex concepts of the proposal.
Your proposal cover is the first thing potential clients will see. Make it more engaging by including a photo that relates to their project or a photo of your company.
You can also include your logo. Use a bold font for the title to instantly capture their attention.
Your proposal will include both text and visual elements. Make sure they're properly aligned with the help of guides in your document.
Proper alignment will make the entire proposal more visually appealing by adding hierarchy to your design. Your project proposal format is important. Formatting issues like proper alignment make a difference.
Save time on writing and designing your business project proposal by using professionally designed business proposal templates. These templates will not only have all the necessary sections, but they'll also have the basic layout and design elements. All you’ll have to do is add your content and then customize the template with your choice of colors and fonts.
If you're creating your proposal in MS Word, consider these templates:
Our last tip is to proofread the entire proposal several times to ensure there are no grammar or spelling mistakes. Make sure that all the information is accurate and up to date, especially if you’re talking about your company history or about your client’s business.
Business proposals are constantly evolving. I've collected some of the top tips from experts who have either prepared many business proposals, or who review proposals as part of their role. Keep these tips in mind to increase your chances of winning that deal or grant.
A common mistake is to make the proposal all about you. Carl Dickson, founder of PropLIBRARY , a huge web-based resource full of practical advice for how to write winning proposals, shares this advice:
“The biggest mistake people make is writing what they want to say instead of what the customer needs to hear in order to make their decision. They treat it like a brochure sent to unknown readers instead of a specific organization with known requirements. Instead, write from the prospective client’s perspective. Spend more time thinking about, researching, and discovering what matters to the customer than you do writing. Then make your case as to why what you are proposing is their best alternative for achieving their goals.”
When you write from the prospect’s perspective, you'll find yourself customizing the proposal to them. People tend to rely too much on templates for content, and that can be another big mistake because it makes your proposal generic. If you begin with a template, it should be tailored to each client so that they feel like their needs and circumstances are being addressed.
Kristin Marquet, owner of a PR and branding firm in New York, has drafted more than 500 business proposals for clients since 2009. Her advice:
“My top tip is to provide a scope of work that is customized for the prospective client. A proposal should outline the project objectives, strategies, tactics, timeline, and budget while being specific to the client. I've seen other agencies use a one-size-fits-all approach when preparing their proposals, and that doesn't work as well as a tailored proposal.”
A practical tip is to include a table of contents. After more than 30 years of experience reviewing proposals for investment properties, real estate marketer Dave Kohl has observed that different prospects are interested in different parts of a proposal.
Even within the same company, if several people will be reviewing the proposal, each one will be reviewing different parts of the proposal. A table of contents helps each one find the section that’s most relevant to them.
“Include a table of contents. This will allow people to get to the information that’s most important to them quickly. Some companies consider the financials to be more important than the execution, while some do not.”
Keep your proposals fresh by constantly reviewing, editing, and revising them. This is especially true if you produce a large volume of proposals and use templates.
Michael Alexis is the CEO of TeamBuilding , a company that sent out thousands of B2B proposals in 2020 and won over 15,000 contracts. Alexis says:
“These proposal templates can quickly become legacy-documents within a business. They aren’t up-to-date or exactly what your current client needs. I recommend giving every proposal, or proposal over a certain value, a quick read over. A clear and accurate proposal will help you win deals.”
Alexis observed that the most common opportunities for updating a proposal template include:
Don’t just send off your proposal and then cross your fingers and wait. Follow up with the prospective client in a way that shows you can deliver on what they’re looking for.
Jenn Morgan is a brand marketing consultant and founder of Radically Distinct , a strategic brand marketing agency. As such, Morgan writes about six proposals per month and has revamped hundreds of proposals for clients. Her top advice?
“The proposal is only one piece of the customer acquisition process. Don't rely on the proposal alone to win the deal. Go the extra mile and showcase case studies, follow up with happy customers, and make sure you hit every point of your unique value proposition.”
Winning proposals is critical to getting the income or funding you want. Strengthening your proposal writing skills will pay off for the lifetime of your business or organization. As with most things, practice makes perfect. It also helps to track your results and analyze what makes some of your proposals succeed while others fail.
These articles are a good place to begin:
Writing and designing an effective business project proposal might seem daunting. But once you know what you need to include and which proposal type to start with, you’ll have a much easier time.
Get a head start on your business project proposal with one of our professionally designed business proposal templates from Envato Elements if you need proposal templates and other creative assets regularly.
Or, if you need a single business proposal template, choose one from thousands of modern business proposal templates from GraphicRiver.
Note: This article was originally published in July of 2020. It's been updated with help from Lexi Rodrigo .
By Alta Alonzi
Project plans and project proposals both lay out a road map for how the project will be run and what the results will be. The two phrases are often used interchangeably, and some organizations are indeed the same document. However, there are some key differences that are important to keep in mind.
Project Plan : a document outlining how a project will be implemented.
Project Proposal : a document used to request funding to implement a project.
Spot the differences? Let’s go through how these details matter in practice.
One big difference between plan and a proposal is the people who read them. Internal project implementors or officers read project plans. External donors or evaluators read project proposals. As in all writing, it is important to take your audience into consideration in word choice and topics covered. Abbreviations commonly used within your organization may be fine for the plan, but donors will not know what you are talking about. Additionally, donors may not have as clear an understanding of local issues like you do, so make sure to provide adequate project background in the proposal.
Project officers need the project plan to inform their actions in implementing the project. Donors need a proposal to make a funding decision. This means that the readers are looking for different pieces of information. Project officers will want to look for technical details like deadlines, deliverables, resources, etc. Evaluators will need some of this information as well, but only to evaluate the cohesiveness of the plan, not to act on it. Evaluators also ask another question which implementors typically do not: why support this project instead of another? For this, proposals also need to provide a broader rationale for their project and why it is so important.
The tone, which sets the mood or attitude of the writing, in both plans and proposals are often very formal. Plans are typically formal documents with an impersonal tone that focuses on the technical details. Proposals, by contrast, still should be formal but also can experiment with more personal tones. Proposals convince donors to take action. To accomplish this, they can be written as an emotional appeal, a factual argument, an optimistic vision for the future, a dire warning of the current situation, etc.
A good project plan explains how the project will be implemented. A good project proposal explains why the project will be implemented. The difference here is very slight, but this shift in tone and writing style has a big impact on applications. Understanding this difference and implementing it will improve both your plans and proposals.
Also, read this article from Tople that explores the bane of many a project manager’s existences: scope creep .
Alta Alonzi is a writer and researcher focusing on international development funding and grassroots NGOs. She works with the fundraising consulting company Philantropia conducting research for clients ranging from small NGOs to UN organizations. She also works closely with FundsforNGOs running training webinars, contributing resource guides, and updating the Premium donor database.
Nicely explained
I loved the way you explained the differences of project work plan and project proposal based on the audience, message , tone and purpose. I wish you may also tell the link between both.
Hi Claudine,
thank you for your comment. We will keep this in mind for a future article!
Project proposal is broad in scope and include the project/business plan
Wow thank you you use simple and clear
Good job.I understand now clearly.thanks
Simple and clear
Dear Bert: I am glad you found this article helpful!
Thank you! for your explanation of the difference between project proposal and project plan
Dear Jane: I am glad you found this article helpful!
So if I work in the maintenance department with it’s own director. Yet see an area that is being neglected that I feel I could be a good fit for and bring a definite improvement and lasting value to my company. What would be the best way to put it out there? And maybe help some of the upper level decision makers see that by creating this position will in the long run be more beneficial for the company. Even if it might take a small investment to get it rolling?
COMMENTS
The main difference between a business plan and a business proposal is that a business plan documents your growth strategy while a business proposal is a specific ask for someone to take an action you desire (e.g., buy your product/service, invest in your company, partner with you, etc.). In this article, we will define a business plan and a ...
Key Differences between a Business Plan and a Business Proposal. Purpose: A business plan is primarily used for strategic planning and securing investment, while a business proposal is aimed at winning a specific contract or project. Audience: The audience for a business plan is typically potential investors, stakeholders, or company management.
Business Plan. Business Proposal. Purpose. Outlines a company's mission, vision, and means to achieve its goals. Proposes a specific project or solution to a client or potential partner. Audience. Investors, stakeholders, financial institutions, and internal team. Potential clients, partners, or businesses. Content.
A business plan is a comprehensive document that outlines the goals, strategies, and financial projections of a business, while a business proposal is a focused document that is used to pitch a product or service to potential clients or investors. Understanding the differences between the two documents is essential for any business owner ...
Business Plan vs. Business Proposal. A business plan and a business proposal are different from each other by content, goals, writing style, and structure. The major difference between both is that a business plan is a document that presents facts, while a business proposal is a request for a deal and a quotation of prices. A Business Plan
A promising business plan talks about the company's future financial performance - expenditure, profit, revenue, etc. Explore new business opportunities. A business plan is a flexible document that enables learning on the go. It bolsters research and infuses businesses with new and more feasible business opportunities.
While a business plan provides a thorough overview of the entire business and targets internal stakeholders, investors, and lenders, a business proposal focuses on specific projects or opportunities and targets external clients, partners, or funding agencies. When you understand these differences and employ the best practices in creating both ...
A business plan describes your business goals, strategies, and financial projections. A business proposal, on the other hand, proposes a specific solution to a problem or opportunity and helps you persuade the relevant stakeholder to invest in your business. However, writing a business proposal or a business plan can be challenging, especially ...
A business proposal is a focused sales document intended to describe how a company will approach a project, state the value of the project to the client and solicit the client's business. A ...
Here's a step-by-step guide to writing a persuasive priority proposal. 1. Write an Executive Summary. The executive summary provides a quick overview of the main elements of your project proposal, such as your project background, project objectives and project deliverables, among other things.
The most important difference to note is that a business plan is a written presentation of fact while a business proposal is a price quote and a call to action. Definition. According to an article on Entrepreneur.com, a business plan is a document that outlines a detailed description of how a business is set up. It is a 5-year plan of a ...
Business proposals differ from business plans in content, writing style, purpose, goals, and structure. The sole distinguishing factor between the two terms is that a business plan is a factual presentation of facts, whereas a business proposal is an external market document that highlights a quote and a call to action.
The main difference between a business proposal and a business plan is that, while a business plan is informative, a business proposal is intended to showcase operations, goals, and potential. Executive Summary. The executive summary of a business plan will include information about the company leadership structure or the introduction of ...
A business proposal describes what you can deliver, time frame, amount, cost and your terms and conditions. This is a document you would use to respond to a specific request from your client, or you would send it to your client or prospect describing what you can deliver, at what price. When you respond to a specific request, also known as an ...
A business plan is a comprehensive document that outlines the overall vision, strategy and goals of your business. In contrast, a business proposal is a targeted pitch to a specific client or ...
While a business plan focuses on a company's goals, the problems and solutions it's trying to address, its potential market size, keys to success, products and services, market execution, and more, a business proposal on the other hand usually focuses on how a certain project would be executed, states a quote for the project, terms ...
A business plan is a factual broad description of a company and its prospects. A business proposal is a focused sales document intended to describe how a company will approach a project, state the value of the project to the client, and solicit the client's business. A business plan is a written presentation of facts.
Your project proposal should summarize your project details and sell your idea so stakeholders feel inclined to get involved in the initiative. The goal of your project proposal is to: Secure external funding. Allocate company resources to your project. Gain stakeholder buy-in. Build momentum and excitement.
Now let's talk about what are the different types of business proposals. By knowing the difference between types of business proposals, you'll know exactly which proposal to send to each client. There are six different types of business project proposals: formally solicited. informally solicited.
The two phrases are often used interchangeably, and some organizations are indeed the same document. However, there are some key differences that are important to keep in mind. Project Plan: a document outlining how a project will be implemented. Project Proposal: a document used to request funding to implement a project.
The difference between a business case and a business plan also derives from the fact that the business case usually refers to a project and one aspect of the business, whereas the business plan presents a detailed plan of action for the entire organisation over several years. Check out our outline for a business plan here.