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

How to Write Business Proposal (Examples + Free Templates)

Written by: Aditya Sheth Jan 25, 2024

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

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

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

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

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

• How to write a business proposal step by step

More business proposal examples + writing and design tips

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

• FAQs about business proposals

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

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

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

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

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

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

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

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

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

How to write a business proposal step by step

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

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

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

1. Create a compelling business proposal title

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

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

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

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

2. Build a table of contents

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

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

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

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

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

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

3. Craft the executive summary

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

The goals of your executive summary are:

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

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

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

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

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

4. Write a detailed problem statement

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

 A well-defined problem statement does two things: 

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

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

5. P ropose your solutions

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

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

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

6. Showcase your team’s expertise

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

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

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

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

7. Create a realistic timeline

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

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

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

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

8. Present your payment and terms

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

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

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

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

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

9. Specify the terms and conditions

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

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

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

10. Receiving the decision

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

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

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

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

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

1. Know your audience 

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

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

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

2. Put your brand front and center

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

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

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

You can also consider this sample business proposal template:

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

3. Try less text, more visuals

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

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

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

Check out this formal business proposal format for some inspiration:

4. Switch up your business proposal designs

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

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

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

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

A business proposal usually aims to answer the following questions: 

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

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

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

Generally, there are three types of business proposals:

1. Formally solicited 

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

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

2. Informally solicited 

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

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

3. Unsolicited 

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

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

FAQ about business proposals

What is the purpose of a business proposal.

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

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

What are the best practices for business proposal design?

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

How long should your business proposal be? 

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

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

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

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

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

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

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

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

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

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How To Write An Effective Business Proposal

Published: Feb 28, 2024, 2:00pm

Table of Contents

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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Types of Business Proposals

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.

To Persuade

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.

To Establish Credibility

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.

To Initiate a Dialogue

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:

• Title page and table of contents: Begin with a professional title page that includes the proposal’s title, your company’s name, the date and the recipient’s name. For easier navigation, especially in longer proposals, include a table of contents.
• Executive summary: This section provides a concise overview of the proposal, summarizing the key points. It should be engaging and highlight why they should read the proposal.
• Problem statement or needs assessment: Clearly define the issue or need your proposal is addressing. Demonstrating a deep understanding of the client’s challenges is essential here.
• Proposed solution: Elaborate on your proposed solution, detailing how it specifically tackles the client’s problem or need. This section should be clear, convincing and aligned with the client’s objectives.
• Pricing and terms: Offer a transparent breakdown of the pricing structure and any terms and conditions related to your services. Clarity in this section helps avoid future misunderstandings.
• Qualifications and experience: Showcase your credentials, expertise and any relevant experience or success stories. This is necessary to build trust and credibility.
• Call to action (CTA) and closing remarks: Conclude with a strong call to action that encourages the client to proceed or engage further. Briefly summarize the primary benefits of choosing your solution to reinforce your proposal’s value.

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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:

• Start with the executive summary: Begin with a strong executive summary that captures the essence of your proposal. This should be persuasive and highlight the benefits of your solution. Remember, this might be the only part some decision-makers read.
• Address the problem clearly: In the problem statement, be specific about the client’s challenge. Use language that resonates with them, demonstrating that you truly understand their needs.
• Detail your proposed solution: Break down your solution into digestible sections. Be clear about how each part of your solution addresses the problem. Use bullet points or subheadings for readability.
• Outline pricing and terms: Present your pricing clearly. Include different packages or options if applicable. Be transparent about any conditions or terms to build trust.
• Showcase your credentials: Use the qualifications section to build credibility. Highlight past successes, relevant experience and any unique skills or resources that make your solution the best choice.
• Craft a persuasive conclusion: End with a persuasive conclusion that reiterates the benefits of your solution. A strong call to action should encourage the client to take the next step, whether it’s a meeting, a phone call or signing a contract.
• Proofread and edit: Ensure your proposal is free of errors. A well-edited proposal reflects professionalism and attention to detail.

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.

Design and Presentation Tips

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:

• Keep the design professional and clean, using your brand colors and logo for consistency.
• Utilize white space effectively to enhance readability.
• For longer proposals, use charts, graphs and bullet points to break up text and illustrate points clearly.
• Ensure that the format is compatible with various devices, as clients may view your proposal on different screens.

Common Mistakes to Avoid

In business proposal writing, common pitfalls can significantly reduce your chances of success. Here are a few for your reference:

• Avoid overcomplicating your language; clarity and conciseness are more important than demonstrating language skills.
• Do not make unrealistic promises or overestimate results as this can damage credibility.
• Tailor your proposal to the specific client or their industry. Do not have a standard proposal for everyone.
• Grammatical errors can detract from your professionalism, so edit and proofread the proposal before sharing.

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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.

What is the main point of a business proposal?

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.

How do you structure a business funding proposal?

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.

What are the three main types of business proposals?

The three main types of business proposals are:

• Formally solicited proposals: These are written in response to an official request for a proposal (RFP), often with specific guidelines and format requirements outlined by the potential client.
• Informally solicited proposals: These proposals are created based on casual or less formal requests, often following verbal conversations or discussions with a potential client who has expressed interest but hasn’t issued a formal RFP.
• Unsolicited proposals: These are proposals initiated by the sender and presented to potential clients who have not requested them. They often require a more persuasive approach as they aim to create a need or solution the potential client may not have previously considered.
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A seasoned small business and technology writer and educator with more than 20 years of experience, Shweta excels in demystifying complex tech tools and concepts for small businesses. Her work has been featured in NewsWeek, Huffington Post and more. Her postgraduate degree in computer management fuels her comprehensive analysis and exploration of tech topics.

How to Write a Business Proposal [Examples + Template]

Published: June 10, 2024

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

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

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

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

What is a business proposal?

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

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

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

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

Follow Along With HubSpot's Business Proposal Template

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Write a Killer Business Proposal [Examples + Templates]

• April 6, 2024
• Account Executive , Sales Development

Even before starting your business, you, as an entrepreneur, need a business proposal that people won’t reject. 

A business proposal is a bridge between you and your clients. It’s an outline that makes your value proposition stand out and make your clients realize what they will miss without you and can achieve with your business. 

In this blog, we will discuss the very concept of a business proposal, its quintessential components, how to write one, what are its types with examples and templates to help you craft one.

What is a Business Proposal

A business proposal is a formal document presented to a prospective client or partner that outlines a proposed solution to a problem or a suggested course of action. It typically includes details about the company offering the proposal, the specific problem or opportunity being addressed, the proposed solution or approach, and the anticipated benefits or outcomes.

Let’s say you run a software company and want to win over a new client. You’d put together a proposal detailing how your software can help them overcome their challenges. It’s basically your written sales pitch, showing off what you can do and why they should choose you. Collaborating with a software development company can further refine and enhance your proposal, ensuring it meets the specific needs of potential clients effectively. 

It serves as a persuasive tool for you to communicate your expertise and value proposition to your clients. 

Types of Business Proposals

Depending on various objectives and needs, business proposals can be of the following types

• Formally Solicited Proposal

Informally Solicited Proposal

Unsolicited proposal, sales proposal.

Let’s discuss each one of these one by one.

Formally Solicited Proposal (RFP, RFQ & RFIs)

A formally solicited proposal is requested by a client or organization in response to a formal Request For Proposal (RFP) or Invitation To Bid (ITB) by using a bid proposal . It’s the most common type of business proposal in the B2B markets. 

Example: A construction company submits a formally solicited proposal to a government agency in response to an RFP for building a new community center. The proposal outlines the company’s approach, timeline, costs, and qualifications for the project.

An informally solicited proposal is submitted to a potential client or organization without a formal request, but in response to a general inquiry or expressed interest.

Example: A marketing agency sends an informally solicited proposal to a local business owner who expressed interest in improving their online presence. The proposal outlines the agency’s services, past successes, and proposed strategy for the business.

An unsolicited proposal is submitted to a potential client or organization without prior request, in an effort to propose a new idea, product, or service. They usually present a compelling value proposition that clearly demonstrates how a specific product or service addresses a specific need the client might not have even recognized yet. 

Example: A software development company sends an unsolicited proposal to a manufacturing company, suggesting a new inventory management system to streamline operations. The proposal outlines the benefits, features, and potential ROI of the proposed solution.

A sales proposal is crafted by a seller or vendor to persuade a potential buyer to purchase their products or services.

Example: A software company creates a sales proposal for a potential client outlining the features, pricing, and benefits of their customer relationship management (CRM) software. The proposal includes a demo, pricing options, and testimonials from satisfied customers.

Components of a business proposal and how to write one step-by-step

As a best practice you need to get in a call or meet your clients to understand their requirements and find out what they are looking for. A few open-ended questions will help you understand that.

In case of an RFP you have an opportunity window to understand their requirements. Go through it and understand.

Now, since you have done your fact findings, it’s time to write your business proposal.

Here are some of the key components you need to include in your proposal.

Title page Executive summary Problem statement or needs analysis Title page Proposed solution Timeline and deliverables Benefits Methodology Pricing Conclusion

Let’s l discuss each one of these in detail.

The title page of a business or a dissertation proposal serves as the document’s introduction, providing essential details such as the proposal’s title, the name of the submitting entity, the date of submission, and contact information.

What to do: This page establishes the purpose and context of the proposal, setting the stage for the reader to understand its content. Including clear and concise information on the title page ensures professionalism and facilitates communication between the proposal’s creator and its audience.

Executive Summary

The executive summary is a concise yet impactful section of a business proposal, offering a snapshot of the proposal’s main points, objectives, and benefits. 

It aims to capture the reader’s interest from the outset and motivate them to delve deeper into the document.

What to do: By highlighting the most critical aspects of the proposal in a compelling manner, the executive summary provides readers with a clear understanding of what to expect, emphasizing the value proposition and key outcomes. 

Problem Statement or Needs Analysis

It’s vital for articulating the specific issue or requirement that the proposal intends to tackle. 

It serves as a fundamental element by clearly defining the client’s challenges, pain points, or objectives that necessitate a solution. 

By effectively outlining the problem or need, stakeholders gain clarity on the issues at hand, paving the way for the proposed solution to be perceived as relevant and valuable.

Proposed Solution

It’s crucial to outline how your products or services directly address the client’s identified problem or need. 

This part of the proposal provides a detailed description of the solution you’re offering, highlighting its key features, benefits, and unique selling points. By clearly stating how your offerings meet the client’s requirements, you demonstrate your understanding of their challenges and your capability to provide an effective solution. 

Additionally, this section should emphasize why your proposed solution is superior to alternative options, showcasing its value proposition and potential impact on the client’s business. 

A compelling storytelling and a persuasive language are all that it takes.

Timeline and deliverables

Detailing the timeline and budget of the business proposal is created to outline the implementation process and associated expenses. 

This breakdown serves to provide clarity on the various stages involved in executing the proposed strategy, offering a roadmap for both the proposing party and the client. 

Additionally, the budget breakdown offers transparency by delineating the costs associated with each step, ensuring that all parties have a clear understanding of financial expectations. 

This section plays a crucial role in fostering trust and alignment between the parties involved, laying the foundation for a successful partnership.

Highlight the tangible advantages and outcomes that the client can expect from implementing your proposed solution. 

This part of the proposal outlines how your solution directly addresses the client’s needs and solves their specific problem, showcasing the value it brings to their organization. 

Use case studies, testimonials, or relevant data to provide concrete evidence of the benefits your solution has delivered to similar clients or in similar situations. 

This helps build credibility and trust with the client, demonstrating the real-world impact and effectiveness of your offering.

Methodology

It’s essential to outline the specific steps and strategies you will employ to implement the proposed solution effectively. 

This involves detailing the methodology or approach you will take to address the client’s needs and achieve the desired outcomes. 

You may break down the process into actionable steps, specifying timelines, milestones, and any key deliverables along the way. It’s crucial to provide clarity on how you will execute the proposed solution, including any special considerations or unique aspects of your approach that differentiate it from other alternatives.

It’s imperative to mention the financial aspects associated with implementing the proposed solution. 

This includes detailing the costs involved in delivering products or services, labor expenses, material costs, and any other relevant expenditures. 

Transparency is key, so providing a clear breakdown of costs helps the client understand the investment required. Additionally, you may offer different pricing options or packages to accommodate varying budgets or preferences.

Summarize the key points presented throughout the document and reaffirm the value proposition of your solution. 

This is an opportunity to emphasize the alignment between your solution and the client’s objectives, highlighting how it aligns with their goals and priorities.

Finally, encourage the reader to take action by moving forward with your proposal, whether it’s scheduling a meeting to discuss further details, signing a contract, or initiating the next steps in the engagement process. 

A clear call to action motivates the reader to make a decision and facilitates progress towards achieving mutual success.

Business Proposal Examples with templates

Some of the most iconic templates we liked and will endorse are listed below:

Sales Training

Image source

In this template, you have the option to start with by introducing your company. Then you go on explaining the effectiveness of your training. It’s to the point, precise, and directly coming to your aspirations you need for your sales team.

Why did we like it?

Apart from its visual appeal, what we like the most is its content layout.  It starts with testimonials showcasing how their rain program is appreciated by other businesses. A winning formula to establish credibility. 

Benefits and objectives are clearly stated in points. A very interesting layout for the methodology they will follow. Besides, clear cut pricing modules without any confusion. 

It’s  actually developed keeping in mind how important your time is and they have really respected that without any ambiguation. 

Recruitment

A very professional looking template you can’t miss. A bit traditional in its approach but does what it’s supposed to. The beauty of this template lies in its approach as to how it takes you to the CTA in a step-by-step manner. 

Read the beginning para and you realize you are reading the right document sent from the right source. Further down, you know why you should consider this proposal.

A couple of more pages, and you are perhaps ready to sign in.

What else more do you need?

Product Marketing

The best part is that it comes with a cover letter and an executive summary. It has incorporated the client’s requirements very clearly. 

Rest of the template follows a solid pattern of step-by-step approach elaborating how they are going to make it happen for their clients. 

A little longer but not without reasons. Every section and page has a narration that revolves around the client and their challenges and how these can be addressed in a methodical manner. 

Clarity is something that makes it go beyond any criticism. Neither from design  nor from content perspective.

A great treasure trove for marketers!

Final Words

A well-crafted business proposal can be the key to winning new clients. 

We have seen how important it is to understand the need of a business proposal and how to craft one step-by-step. We discussed all its crucial components. 

Besides, now that you have your go-to guide for creating an attention-grabbing proposal,  you can clearly outline the problem, presenting solutions, and showcasing the benefits.

With practical tips and real-life examples, you’ll learn how to tailor your proposal to each client and highlight your unique value proposition. 

Frequently Asked Questions (FAQs)

What is a business proposal?

A business proposal is a document designed to persuade a potential client or partner to take a specific action, such as buying a product, investing in a service, or entering into a partnership. It outlines the problem or need, presents a proposed solution, and details the benefits of choosing the offering.

What should be included in a business proposal ?

A comprehensive business proposal typically includes an executive summary, problem statement, proposed solution, benefits, methodology or approach, budget or cost analysis, and a conclusion. Additionally, it may incorporate other elements such as a title page, table of contents, and appendices.

How do I write a compelling executive summary?

To craft an engaging executive summary, focus on highlighting the key points, objectives, and benefits of your proposal succinctly. Grab the reader’s attention with a compelling overview of what your proposal aims to achieve and why it’s the best choice for them.

How do I determine the budget or cost analysis for my proposal?

When preparing the budget or cost analysis section, carefully consider all expenses associated with implementing your proposed solution, including labor, materials, and any other relevant costs. Provide a transparent breakdown to demonstrate the value of your offering.

What is the purpose of a business proposal?

The primary purpose of a business proposal is to persuade the recipient to take action, whether it’s making a purchase, entering into a partnership, or agreeing to a project. It serves as a strategic tool for effectively communicating your ideas, solutions, and value proposition to potential clients or stakeholders.

How to write a business proposal?

Writing a business proposal involves several key steps to effectively communicate your ideas and offerings to potential clients or partners. Start by researching your audience and understanding their needs. Then, craft a clear and concise executive summary to grab their attention. Outline the problem or opportunity, propose your solution, and highlight the benefits. Be sure to include relevant details about your company, qualifications, and past successes. Finally, close with a strong call to action, inviting the recipient to take the next steps.

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Writing a Business Proposal That Wins Deals (+Templates)

Learn how to write a business proposal that stands out, impresses buyers & seals more deals. Learn how to prepare and what to include in your proposal.

5 minute read

helped business professionals at:

Short answer

What to include in a business proposal

• Personal message / Cover letter
• Table of contents
• Executive summary
• Overview of your company and product or service
• Deliverables
• Outcomes, benefits, and ROI (if applicable)
• Social proof
• Case studies
• Terms and conditions
• Agreement (e-signature)

Read on to get practical details for each slide ⤵

What is a business proposal?

A business proposal is a presentation or PDF that details a product, service, or project to a prospective client. It is used near the end of the sales process and covers the prospect’s needs and objectives, and the provider’s solution, pricing, and expected outcomes.

A successful business proposal ends with the prospective client accepting and signing the document.

PDF is traditionally the go-to format for business proposals.

But in recent years, and increasingly with the rise of AI, leading sales teams and professionals are transitioning from static PDFs to interactive proposals that give prospects more freedom for customization , and increase the likelihood they’ll accept and sign the document.

Types of business proposals

Business proposals broadly fall under 3 types:

1) Service provider business proposal

Service proposals cover services given over time such as cleaning, security, gardening, IT, staffing, and management.

Service proposals normally include start and termination dates for the service, rather than timelines and milestones, and focus on deliverables rather than KPIs.

2) Product business proposal

Product business proposals cover a product or solution. It’s commonly used by B2B SaaS companies in high-tech or manufacturers that supply parts or raw materials to other companies.

This type of business proposal can focus on KPIs and ROI in the case of SaaS, or on delivered quantities and qualities in the case of manufacturers.

This is not to be confused with a product proposal given to stakeholders and decision-makers before product development or a product launch.

3) Project business proposal

A business proposal for a project covers a service, a deliverable provided once, and limited in time. This type of proposal is used by providers such as consulting agencies, construction companies, engineering firms, legal firms, and website development companies.

Project business proposals focus on timetables, milestones, and the project’s impact as measured in KPIs and ROI.

These are not to be confused with project proposals made outside the sales context . Such project proposals are used internally (or externally as part of a broader service) to get the buy-in and backing of stakeholders and decision-makers.

This type of project proposal is closer to a project plan than a business proposal.

Solicited vs. unsolicited business proposal

Unsolicited.

These business proposals are used as part of early prospecting to generate leads and MQLs. These are essentially the same as sales prospecting decks .

Solicited informally as part of the sales process

These proposals, sometimes called sales proposals , are used after one or more sales meetings have occurred and only after the prospect has shown interest in buying. This is what most people refer to when saying “business proposal”.

Solicited formally as a response to an RFP (Request for Proposal)

An RFP response is sent only when an RFP is issued for a service or solution you provide. Often the RFP will have particular requirements and a specific structure and format for application.

What does a business proposal look like?

The standard format for a business proposal is PDF. Proposals are often designed to be asthetically pleasing and more inviting than a text-only document.

But in recent years leading sales teams are moving away from PDFs to interactive digital proposals. These new digital formats help them differentiate from the competition, and provide valuable engagement analytics, support engagement, and increase close rates.

Here’s an interactive proposal example by Storydoc:

How to write a business proposal slide by slide

To compose a highly effective business proposal you’ll need to differentiate your value proposition, address key selling points, manage expectations, and involve all critical stakeholders.

By the end of this guide, you’ll know how to make world-leading business proposals, surpass your competitors in every way, and get more deals over the finish line.

This guide is a broad guide. However, different industries require different proposals with different focuses and different slides. And so, below you’ll find links to our specialized proposal writing guides for whichever your niche or use case may be.

Proposal writing guides for specific use cases:

TIP: Write your proposal quickly. Writing effective business proposals quickly is essential for closing deals. Proposals don’t have to be perfect, but they need to be timely to keep the prospect engaged and avoid ghosting.

The title slide is like a shop window. It’s your prospect’s expectations for what’s inside. It should be visually appealing, but that’s not enough.

To get a headstart over your competitors with your proposal title slide it needs to capture the essence of your value proposition, establish relevancy, and create intrigue.

Easier said than done. But definitely doable.

How to make a business proposal title slide that sets you apart?

To nail your cover slide, and stand out from other proposals competing for their business do the following:

• Include a short version of your unique sales proposition in the title and tagline.
• Include the prospective client’s company name and other information specific to them in the title or tagline.
• Include their company logo beside yours.
• Include the sender’s and the recipient's names.
• Include relevant imagery
• Include the expected reading time (to set their effort expectations)
• Include some form of motion, like animation or video to grab attention (but don’t make it too distracting).

2) Personal note or Cover letter

A personal note or cover letter is an introduction that eases the reader into the proposal. It establishes the basic context needed to start reading.

Your cover letter should be kept conversational and short. Don’t make it too cold and formal, and don’t make it a form of an executive summary, just make the connection to past meetings, voiced expectations, and people involved.

TIP: It’s good practice to put a face to the note, to make it warmer and personal (like in the example below).

3) Table of contents

It’s important to add a table of contents to your proposal for 3 reasons:

• It manages the prospect’s expectations and lets them quickly see if everything they expect is in the doc.
• It helps the prospect assess the effort it would take to review the proposal.
• It allows prospects and decision-makers to access deep content easily and quickly, in their first or subsequent reviews.

TIP: Adding jump-links will provide you with click data on which slides prospects found most important. With this info, you could follow up with them knowing exactly what issues to address.

4) Executive summary

An executive summary in a business proposal should be kept very short and easy to scan using bullet points, ordered lists, short texts, and preferably a video (if you’re using interactive proposal formats).

It is NOT a long and text-heavy intro like you find in reports or research papers.

What to include in a business proposal executive summary?

• Your company and expertise
• Key selling points (the client’s imminent needs)
• The impact of your product or service
• What you intend to do and provide (game plan outline)

TIP: Using a slide template like in the example below you could embed a video about your business, product, service, and expertise, and reduce the text needed to deliver your message.

5) Challenges

The challenges slide, sometimes called the problem slide , is a short yet ultra-specific description of the problem or challenges that plague your prospect and that your solution aims to solve.

Since your prospect knows their own pains, there is no need to explain them in length. Simply describe their pain points in titles using their own words from past meetings and correspondence.

In the example below we used a simple “card” format to list the main challenge.

6) Objectives

The objectives slide lists the desired outcomes gained from procuring your service or product. This is essentially the mirror image of the client’s challenges.

Use the prospect’s own words to articulate their objectives, same as I advised for describing their challenges. This would make them more relatable and compelling.

7) Product or service overview

Your service or product overview slide should explain what your solution doe s, a bit about how it does it, and what makes it uniquely valuable.

Make an effort to focus your overview on how your solution addresses the client’s main problem , important features or deliverables, and especially the impact it brings.

This slide is best done with a mix of video and text, where the video gives a broad overview and the text is tailored to the specific prospect and their concerns.

How to create an effective business proposal solution slide?

Ensure your value proposition clearly solves the client's business challenge.

• Highlight unique aspects of your solution that address the client's specific needs.
• Address any potential gaps in your products and services proactively.
• List potential risks and discuss them with the client before they become issues.
• Develop contingency plans for each identified risk and demonstrate your preparedness.
• Incorporate visual aids to enhance understanding and retention. Support your text with interactive graphs and charts , videos, infographics, annotations, and images.
• Cater to different learning styles by using multimedia content, like video, scrollytelling , and data visualization .
• There is no one way to make this slide. Depending on the level of complexity and the number of challenges you want to address you can use tabs, cards, a list of items, or a narrator slide .

8) Deliverables

The deliverables slide includes services beyond and around the main solution, like onboarding, training, integration, design, customer support, dashboards, documentation, audits, hardware supplied, etc.

How to make and present a business proposal solution slide?

When creating this slide:

• Provide a brief list of the specific services you will provide.
• Explain how these services will be delivered (step-by-step).

This will remove uncertainty and unwanted surprises. It will give the client the confidence to move forward and help you justify pricing.

When presenting this slide:

• Discuss the timeline with the client during the proposal presentation to ensure alignment.
• Explain how communication will be handled.

This will help to align the client’s expectations for response times and meeting schedules with what you are willing to do.

Importantly, be cautious about offering too much access using direct messaging to avoid constant interruptions.

9) Outcomes, benefits, and ROI

This slide includes the outcomes the client is expected to get by procuring your product or service. The most compelling outcomes are measurable impacts on the client’s KPIs or support them directly.

Measurable outcomes demonstrate your accountability, which builds the client’s trust in your ability to deliver.

How to make a business proposal outcomes slide?

• Clearly define how success will be measured using specific KPIs.
• Agree on these KPIs during the initial conversation with the prospect.
• Ensure KPIs are easy to understand and directly tied to the proposal objectives.

10) The team

The team slide puts faces to the service you provide. This slide introduces the specific team within the company that will take care of the client and work with them closely to achieve their objectives.

People trust and appreciate the individuals they collaborate with more than a faceless organization. This gives the prospect a sense of connection which could reduce their focus on price.

How to create a business proposal team slide?

• Include a quality image of 2-4 key team members with a friendly expression.
• Assign each team member a short professional description with their job title, responsibilities, and past success.
• Connect each team member to their LinkedIn profile to allow the prospect to learn more.

11) Social Proof

Social proof is a standard for almost any type of persuasive document. A social proof slide can include video testimonials, client review quotes, client logos, trust badges, and awards.

Limit yourself to the minimum needed to show trustworthiness, authority, and capability.

Make sure your social proof closely resembles your prospect’s challenges, niche, and circumstances. The more your prospects recognize themselves in your quotes and testimonials the more persuasive it will be.

12) Case study

Case studies, sometimes called customer success stories , serve as proof of your competence and capability to deliver on what you promise.

Most prospects will want to want to see proof of past success with a client like them, with the same needs and challenges.

The example slide template below has a snapshot of the case study in text and a testimonial video (placeholder). You can cater to prospects who prefer to read as well as those who prefer to listen.

How to make a case study slide?

• Include 1 -3 links to your most relevant case studies.
• Assign a short teaser text for each case study to help the reader quickly understand what each case study is about.

Use your best-known logos, but not at the expense of relevancy.

Use tabs to minimize the space needed to present the case studies

13) Pricing

The pricing slide can either show your pricing plan options , in case of a SaaS product business proposal or show the breakdown of the services and deliverables provided , in case of a service proposal.

Both options allow the client visibility into the investments and their corresponding impact. But it also gives them control over the deal at a more granular level.

This minimizes frustration over unexpected costs or missing deliverables they expected to get which were not included in the deal.

How to build an effective business proposal pricing slide?

• Present the prices along with their potential ROI and non-monetary benefits.
• Emphasize the value and outcomes to shift the client’s focus from cost to investment.
• Allow the prospect to actively select the plan they want or check each individual service they require to give them a sense of control and ownership over their decision.

14) Terms and conditions

This section is a binding legal document that lists the terms of the agreement and the compensation each side should receive.

This is for your legal team to determine.

Things to ensure in your terms and conditions:

• Include a summary of the engagement duration and termination terms.
• Clearly state the compensation details and payment schedule.
• Break down payments into phases and ensure you get paid before starting work, even if it’s a partial deposit.

15) Agreement and e-signature

This is the part all your efforts have been leading up to. All you need is the beautiful signature in the box that seals the deal.

Don’t use a static PDF as your business proposal format if you can avoid it, since it makes this part more difficult and may trip you at the finish line.

Use modern digital proposal software that allows you to embed an e-signature box right in your proposal. And better yet, software that syncs with your CRM and automatically updates the lead status.

16) Next steps

The next steps slide is where you tell your client what will be the next immediate mutual action items after accepting the deal.

The plan for moving forward should be clear, concrete, and involve specific people.

How to create an effective next steps slide?

• Schedule follow-up meetings or calls to discuss the proposal further.
• Help the client visualize the process to reduce friction in their decision-making.
• Embed your live calendar app in the proposal to make it super easy for the prospect to book the next meeting with you.

17) Contact

Provide your contact information so your contact or any decision maker within the client’s organization can communicate with you to ask questions, get more information, or update you on progress.

Business proposal templates that get the deal

To help you speed up your proposal writing I brought you some of our best business proposal templates .

These interactive templates are easily customizable and completely reusable.

They were built and optimized based on what we’ve constantly seen work best for Storydoc clients.

Stroydoc can be integrated with your CRM so these templates can be automatically personalized and sent to the prospect from your sales platform with a click.

Before writing your proposal: how to prepare

1) Collect the critical information to customize your proposal to the client’s specific needs and circumstances. But don’t stop there - seek their feedback to refine the proposal (don’t assume you got it right in the first draft).

2) Make sure you understand the prospect’s decision-making process and criteria. Ask the prospect and try to identify all key stakeholders, decision-makers, and other obstacles involved in the process.

3) Get the client's expectations for the next steps and timelines . Discuss expected timelines with prospects and clarify the steps that will occur after accepting the proposal.

4) Get verbal agreement from the prospect before writing your proposal.

This bit is critical! Only write your proposal after discussing the main points of a possible deal with the prospect and getting their agreement. This will avoid nasty surprises and misunderstandings.

After writing your proposal: presenting to the client

Writing your business proposal is the hard part. But you have to present it effectively to finish the job.

DO NOT SEND YOUR PROPOSAL BY MAIL.

When you send your proposal over email you lose control over the conversation. So always schedule a call to walk the client through the proposal instead of emailing it.

Doing a live walkthrough with the client lets you handle objections, clarify details, and address concerns in real-time.

This is critical for avoiding confusion, doubts, or clients focusing solely on the price.

After presenting your proposal you can send it by email for further review by other decision makers.

NOTE: Do your best to prevent your prospects from printing out your proposal. A 2020 study found that once someone prints your proposal, your chances of landing the deal shrink by 84%!

Another benefit of using digital proposals is that you get engagement analytics that gives you visibility into who inside the client’s organization read the proposal, how long, which slides they focused on, and who they shared it with.

After presenting your proposal

• Plan your negotiation strategy - determine your best and worst-case scenarios for negotiations. Decide on your objectives and what you're willing to compromise on.
• Maintain your influence with follow-up interactions - Schedule a follow-up meeting immediately after presenting the proposal to discuss the proposal and next steps. Also regularly share knowledge and insights to keep the client engaged post-proposal.
• Prepare to handle client queries and requests - Clear proposals lead to more specific questions from prospects. Be ready to provide additional information if requested by the client.

As the Head of Marketing, I lead Storydoc’s amazing content-ops team in our fight to eradicate Death-by-PowerPoint wherever it resides. My mission is to enable decision-making by removing the affliction of bad content from the inboxes of businesses and individuals worldwide.

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How to Write a Business Proposal in 2024 (+ Templates)

Written by: Unenabasi Ekeruke

When it comes to landing new customers, securing partnerships and funding and closing more deals, a well-crafted business proposal can be your silver bullet.

It's no longer enough to offer quality products and services. You need a compelling business proposal that makes a solid case for your product, attracts clients' attention and sways purchase decisions in your favor.

But how do you write a proposal that wins the hearts and minds of your potential client? What information and tools do you need? What should be in a business proposal?

This article has everything you need to know about writing a business proposal. We’ve included valuable tips and ready-made templates to help you get started.

Here’s a short selection of 8 easy-to-edit job proposal templates you can edit, share and download with Visme. View more templates below:

Let's get to it.

Table of Contents

What is a business proposal, business proposal vs. business plan, types of business proposals, how to create a business proposal that wins clients (step-by-step).

• Tips for Writing Winning Business Proposal

20 Business Proposal Templates You Can Customize Now

Business proposal faqs, create winning business proposals that close more deals.

A business proposal is a document sent to prospects persuading them to buy your products or services.  It is mostly used by marketers, businesspeople and B2B and B2C companies to secure contracts and convince potential clients, investors, partners, or stakeholders to invest in or support a business idea.

You can send a business proposal in response to a client's request. Better yet, you can share it as a proposed solution to attract your client's attention.

Often, business proposals precede any business agreement and include details such as:

• What your business does (products, services) and the value you bring to the client
• When you can start and finish (timeframe and milestones)
• What the client stands to gain from the business relationship (expected results)
• Why you're the right person to do the job
• Or why the client should choose you to deliver that service (value proposition)

Take a look at these 20 proposal examples to get an idea of what yours can look like. Also, join Mike on this video from our YouTube channel to learn more about proposal design tips and templates. Don’t forget to subscribe and get notified of new videos.

The common myth is that business proposals and business plans are interchangeable. The thing is, both tools are important for growing your business. Yet, they play different roles.

Business proposals help you pitch your product and service to prospective customers. On the flip side, business plans lay a roadmap for your business and help attract investors and partners. They differ from each other by purpose, content and structure.

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There are generally two main categories of business proposals: unsolicited and solicited.

Formally Solicited Business Proposal

Solicited business proposals are sent in response to a client's request for a proposal. It may be a request for proposal (RFP), request for information (RFI) or request for quotation (RFQ).

The request outlines the clients' needs and expectations and the evaluation criteria used to select the vendors or service providers.

A solicited business proposal is usually an easier sell for marketers. That’s because the client is already sold on making the purchase or using the service. At this point, the customer is evaluating potential vendors or service providers to get the best value or deal.

Informally Solicited Business Proposal

This type of business proposal emanates from informal meetings and verbal discussions with clients. Since there's no formal or official request for a proposal from the client, you may have little information to work with.

Nevertheless, you'd have to thoroughly research the organization's unique needs to win the client over.

Unsolicited Business Proposals

These are proposals sent to prospects who haven't requested one. It’s more about pitching your business when they haven’t requested a proposal.

An excellent example of this proposal type is a cold email , sales brochure or marketing flyer . This type of marketing content is often generic. And even though it introduces your solution, it may not align with the client's unique requirements.

Here’s how to make prospects pay attention to your unsolicited business proposal:

• Research your potential customers and the markets they operate in
• Identify their pain points
• Propose a customized solution tailored to your customer's needs
• Personalize your proposal's content and make it persuasive

A winning business proposal should include these key elements

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Your title page is the first thing your client will see when they open your proposal. Aim to make it appealing, professional and engaging as it sets the tone for further engagement.

The title page should contain the following information:

• The proposal title
• Your name, company name, logo and date
• The prospect's business name

The title page below gives prospective customers a sneak peek into what the proposal is about. Aim to make it aesthetically appealing, as it helps you leave a strong first impression.

Proposals typically contain a lot of information. So, adding a table of contents helps you achieve these three things:

• Gives your prospects an insight into what you'll cover in the proposal
• Lays out the page numbers where readers can find each page, section and subsection
• Makes it super easy for readers to navigate your document

If you're going to send your proposal online, make your table of contents clickable. This will enable your audience to jump to the different sections with a single click.

This business proposal example shows how to craft a table of contents with a beautiful and interactive layout.

Executive Summary

The executive summary is the ticket to getting a prospect interested in your proposal. Why's that? Clients receive lots of proposals and may not have time to read the entire content.,

Hence, writing a stellar executive summary can hook them in and nudge them to read on.

It's a summary of the entire business proposal. And you'll typically find it in sales enablement content and other business documents like reports , sales and marketing plans , surveys and more.

At a glance, your readers should get a bird's eye view of:

• Your company's goals, mission and vision
• Proposed solution and value proposition
• How your project impacts their organization
• Expected outcomes
• Cost implications and more

This business proposal template below has a brief executive summary. It highlights what the company does, the proposed services, costs and timeline.

Company Background

The company background is a key aspect of the business proposal introduction. This is where you provide detailed information about your company. You should discuss your company's history, vision, mission and key staff here.

Be sure to include pictures and profiles of the executives and key personnel with experience related to your proposal. Showcase milestones, awards and industry recognition to build credibility and boost prospects' confidence in your company.

Notice how the template below offers elaborate information about the company.

Problem Statement

This section should outline your prospect's needs, problems and pain points. To drive a client's interest or develop a sense of urgency, explain the issues your client is facing and how they impact their business.

Writing a compelling problem statement does these three things:

• It shows that you have a deeper understanding of their unique needs
• Highlights your technical knowledge, experience and ability to help address them
• It allows you to point out a problem your prospect may not have been aware of

But how do you identify your client's needs? The simple answer is, that you have to do your homework. Research your client's business and study other companies in their niche and industry trends.

Proposed Solution

Your business proposal aims to help the prospect solve their problems. Hence, this section should address how you intend to achieve that.

Let your clients know the strategy and methods you'll use, why you chose that approach, deliverables and expected outcome.

Avoid making your proposed solution sound generic. Instead, customize it to your client's needs. Above all, paint a mental picture of how their business will turn out after implementing your solution.

Scope of Work

At this point, you should translate your proposed solution into an action plan. Start by elaborating on the areas you'll cover during the project execution.

Check that the scope of work is relevant to the potential client's statement of needs or problems. You should also try to avoid or translate industry jargon that the reader may not understand.

Timeline and Milestones

This section should include an estimated timeline of when the project will start and finish and how long it will take. We recommend presenting the project schedule, milestones, timeline and deliverables in a visually appealing way.

Check out the business proposal template below to get creative inspiration.

Qualification

This page should convince prospects that you're the best person or company for the job. Talk about your capabilities, experience, expertise and your team's qualifications. Also, reiterate why they should trust you to deliver.

Your job is to dispel any iota of doubt and boost the client's trust in your brand. You can include social proof like testimonials , reviews, case studies and client success stories. Also, mention relevant credentials, recognition or awards to demonstrate your authority.

Feel free to include a portfolio of the work you've done before or a list of clients you've served.

Pricing, Estimates and Billing

This section should outline your pricing, payment schedule and payment terms. Be sure to display the line items, the incremental cost and the total fee. You can also include a price per unit rate or a fixed monthly or hourly rate.

We recommend providing clients with options or breaking your fee into project stages or milestones. That way, the client knows his options and what he's paying for.

Not sure how to achieve this? Use an interactive pricing comparison table that automatically adjusts when the client selects the preferred product, service or plan.

Use this section to indicate when you'll require payment upfront, before or after each milestone or after project completion. Also, specify whether any portion of the payment is refundable in the event of an unforeseen event.

Look at how the business proposal template below elaborates on the budget and pricing information.

Thank the reader for considering your business. Next, summarize your proposal in this section and get the client in the mood to hire your company or purchase your solution.

Highlight the key points of your business proposal. Plus, reiterate your value proposition and why the client should choose you.

Mention that you're available for further discussion on your proposal. Add phone numbers, email and office address to enable your prospects to reach you.

• Terms and Conditions

This is where you outline every legal aspect of the proposed business relationship. This part has to be as clear as possible to avoid disputes or legal issues.

If you're unsure what to include in your proposal, check with your lawyer or legal team. They'll highlight the legalities, confidentiality agreements and elements of a working contract.

The template below is an excellent example of how to outline your terms and conditions.

Include a small section at the end of your proposal where both parties (you and the client) can sign off if they agree to the terms of your proposal. You can include your contact details here and prompt the client to contact you if they have any questions or concerns.

The appendix section is perfect if you have visuals, tables or other content you've cited in your content. For instance, let's say you mentioned products, materials and other tangible items you plan to use during the project. In that case, you can include the product catalog in the appendix section.

Tips for Writing Winning Business Proposals

You now understand how to create a business proposal and what should be in a business proposal. Here are some design tips to make your business proposal attractive.

1. Know Your Audience and Recognize Their Needs

Don't make assumptions about your audience. Instead, do your best to understand their specific and unique needs and how you can assist them. Your potential customer wants to see how your solution will address their specific needs, not a generic solution to the problem.

Map your buyer persona to understand their pain points, budget, deadlines and more. This information will improve your chances of closing the deal.

2. Use Professionally Designed Template

When creating your business proposals, use professionally designed proposal templates . The upside is that you won't have to start from scratch, saving you a lot of time.

Using templates allows you to focus more on the copy and contents, ensuring you cover all the bases and include all the necessary information to warrant a positive response.

3. Pay Attention to Design

Every element of your business proposal should be crafted to catch your audience's eye.

Jazz up your cover page with a captivating image that depicts what the proposal is about. Give it a personal touch and build brand recognition by adding your logo on the cover and inner pages. Remember to use beautiful colors and fonts that align with your brand guidelines.

However, when using colors, maintain a contrast between the text and the background color. For example, using dark-colored text on a dark background will make your document impossible to read.

Likewise, avoid utilizing too similar hues or a lighter version of the same color background. Colors with a lot of contrast and color pairs that follow the basic idea of light and dark color combinations function well.

Adopt a minimalistic design to make your proposal look polished and help readers focus on the important information.

Make sure that each element in your proposal has enough white space around it, whether it's text, images, charts or anything else. Avoiding clutter will make your proposal look neat and easy to read.

4. Use More Visuals and Less Text

Visuals bring your presentation to life. And substituting text with more icons, images and visual aids makes your proposal readable. For example, you can use photos to:

• Introduce key stakeholders and team members
• Visualize key milestones, stakeholders and team members
• Demonstrate the look of the finished product
• Showcase customer reviews and testimonials

The proposal template below is an excellent example of how you can use visuals to make your proposal pop.

Charts and infographic elements effectively visualize statistical data, like KPIs and results. You can also use other visual aids like tables, diagrams, icons and tables to represent cost estimates and budgets.

Visme has tons of business proposal templates with different design layouts and structures.

So all you need to do is customize the template with your preferred fonts, colors, images, videos and other visual aids. Your document will be ready for use.

Below are some captivating templates for making your business proposal.

Template #1: Software Development Proposal

Use this stunning template to convince prospects to hire your software development service. The template contains all the important sections you need to convey the right message, including mission and vision, budget and pricing, previous clients and more.

You can also use this template to create technology-related proposals. Go ahead and edit content and change images, fonts and color themes to suit your unique needs.

Template #2: Advertising Proposal Template

This business proposal example features a vibrant color that grabs viewers' attention from the get-go. That makes it the perfect choice for communicating the value of your advertising solution to your top executives or clients. You can also repurpose this as an advertising company proposal or a marketing proposal template.

Leverage Visme's vast collection of fonts, images, videos and colors to find the unique visual elements that match your brand. You can collaborate with your team and adjust the template until you get the perfect design.

Template #3: Real Estate Investment Proposal Template

Are you looking to attract new clients for your real estate business? This proposal template is a great fit. You can spread the word about your business and share details about:

• Your portfolio and wealth of experience
• Customer testimonials
• Properties available for investment

You can conveniently tweak this template to appeal to companies, investors, homeowners, contractors and more. Feel free to include additional sections or replace visuals and other design elements like fonts, colors, icons, images and more.

Template #4: Interior Design Proposal

If you're eager to create a visual impression of your audience, this sophisticated template is a great starting point. The templates feature a rich blend of visuals and text, showcasing key elements like:

• Rundown of services
• Clients you've served
• Proposed plan
• Pricing breakdowns and more

Not satisfied with the content or visuals? Visme has got you covered. We have a broad collection of high-quality stock photos , videos and animations to make your proposal stand out.

Template #5: Insurance Proposal Template

Whether you insure autos, homes, offices, life or everything, this eye-catching template can help you ramp up sales .

With Visme's detailed proposal template, you can give your clients an in-depth view of insurance plans. Incorporate our wide array of images, videos, vector icons and shapes into your work to give it your own unique spin.

Quickly download your proposal document as a PDF or share it with colleagues and prospects online using a shareable link.

Template #6: 3D Product Visualization Platform Proposal Template

Pitch your 3D product visualization platform to clients using this editable proposal template. The creative use of multiple colors and 3D shapes on each page makes the template unique and engaging.

Break down the entire project proposal and highlight critical sections like project overview, budget, roadmap, terms and conditions. Select and use your preferred visuals, typeface and color theme, all sourced from Visme's vast design library.

Template #7: Clinical Laboratory Services Proposal Template

There's no limit to what you can achieve with this customizable template. You can modify it for multiple use cases, including pharmaceutical, dental, nursing and other medical-related services.

Use this attractive template to showcase your products and services, experience, certifications and location of your facilities.

You can insert your preferred content, images, videos and animations to make your proposal captivating, engaging and interactive. Personalize this template with your color theme , font and logo to match your brand guidelines .

Template #8: Roofing Proposal Template

This business proposal template is a perfect pick for different types of construction and civil engineering projects. They provide stakeholders with an insight into the scope of work, proposed plan and pricing, testimonials and more.

It prominently includes visuals of past work and testimonials, adding a layer of social proof. With our expressive typefaces, colors and visuals, your content is sure to stand out from the crowd.

Choose one that suits your needs and apply it to your design.

Template #9: HVAC Proposal Template

Customize this modern company proposal template to demonstrate your expertise in HVAC. This proposal elaborates on all relevant details regarding the scope of work, project timeline and cost, client list and testimonials.

The best part is that you can use this template to assert your competence in other fields like electrical, plumbing, landscaping and more.

From your dashboard, Visme lets you customize your brand kit to save brand colors, logos and fonts to ensure design consistency. Any team member can create documents from your account and branding will automatically apply to their work.

Template #10: Simple Business Proposal

Here's a simple business proposal template that caters to multiple use cases. You can use it to showcase your products and services, customer reviews, prices and how your process is set up.

Beyond the compelling visuals, the template uses charts to visualize financial data, figures and results like:

• Average annual revenue
• Active customers
• Profitability and
• User retention

With our easy-to-use proposal maker, you can edit this template. Evoke emotion and express your thoughts better by using the right visual and design elements to beautify each page. You'll find high-resolution images and videos in Visme's extensive photo library.

Template #11: Campaign Proposal

Close the deal with your next client using this vibrant campaign proposal template. Ignite a connection with the viewer with beautifully designed pages that share your agency’s vital information. Take advantage of the timeline infographic page to share your process to success.

Make your proposal interactive and add popups or links with further information about important points. Share the campaign proposal via a live Visme link and track prospects that have seen it.

Template #12: Electrical Proposal Template

Bring in new electrical clients with this proposal template. Start by switching the images with yours. Choose photos that represent your company and solve problems. Then change colors and fonts and fill the text with yours.

For an even more exciting timeline page, add an infographic roadmap to visualize how amazing it is to work with you. Share information about your company that delivers a sense of trust and safety. Let your clients know that you’re there for them, big or small.

Use animated icons throughout the pages and share the proposal with prospects via a link. They’ll open the proposal and view it as a flipbook , further garnering interest in your offers.

Template #13: Conference Proposal

Propose your event planning services to clients with an interactive digital document that will grab their attention and make them want to get in touch immediately. Use this event proposal template to showcase how your conference will stand out against others. Include proposals in the sales cycle and offer sales reps a chance to personalize the document according to the client.

Create a Visme workspace for your sales team where they have access to a library of share-ready assets and customizable branded templates . Integrate your sales playbook with the Visme workspace, and your reps will always have what they need to close the deal.

Template #14: Retail Store Partnership

Use this partnership proposal template to connect with clients interested in your services. Take advantage of the comprehensive parts of a business proposal to drive interest in the partnership .

Check out the Table of Contents:

• What Makes Us Different
• How We Know Who You Are
• The Partnership
• What You Get
• What You Need To Do

Make the close easy on the client by sharing exactly what they get and what they need to do next to embark on a positive partnership. Use the visually inspiring shapes in this proposal to highlight your brand’s best assets and skills for reaching a client’s goals.

Template #15: Translation Services Proposal

If you’re wondering what to include in business proposal pages, this template is the perfect solution to your proposal creation needs. As a t ranslation agency , your main asset is language variety and the fact that you can offer many translation solutions to your clients. Use a visual, colored map to highlight the languages your agency provides and share an interesting fact to pique the client’s interest.

Include all contact information on the cover so the client doesn’t need to look for it. Share this project proposal template as a digital document and hyperlink your URL and contact information. Make it easy for the client to reach you and close that big translation project.

Template #16: Catering Proposal Template

Promote your catering services with a marketing campaign that includes a business proposal. This template is easy to personalize and send via email to leads and prospects. Interchange the images with ones of your food and replace the menu information with yours.

Add a photo of the founders on the "About Us" page to connect on a personal level with the viewer. Tell a story about the brand and why its value proposition is worth partnering with. Highlight contact information and offer personalized quotes.

Make this an even better proposal by adding a testimonials page with reviews from real clients and customers. Include video testimonials and share the proposal as a digital experience.

Template #17: Partnership Proposal

Merging two businesses is not an endeavor to take lightly. Create and share a professional proposal to seal the deal right. This template's minimalistic and positive design style is ideal for sharing a big idea and keeping the viewer's attention.

The colorful plus sign has a subconscious connection with the viewer throughout the pages. A plus sign signifies addition, adding on, or connection; everyone knows this almost instinctively. Harness the power and psychology of shapes by communicating through more senses than just reading.

Shake hands with your new partner, thanks to this template.

Template #18: Website Design Business Proposal

A strong brand needs a proposal to match its infinite creativity and vision. Get more web design clients with a proposal that embodies your brand's mission and values. Include a personalized letter from the team lead to create a connection from the start.

For an even better experience, customize the proposal for each client using dynamic fields . Do you know how you can send emails that automatically insert a client’s name in the greeting and throughout the content as long as you use a shortcode? Visme can do that too.

Create a proposal template with four dynamic field inputs: the client’s name on the cover, the letter, the timeline and the closer. Using the dynamic field controls in the editor, change all four inputs at once with the client’s name. Download as a pdf or share as a live link with your audience and then track activity using Visme analytics .

Template #19: Transcription Services Proposal

You know what the client needs and you have the solution. Transcription services are crucial timesavers for content creators and digital marketers. Share reviews from previous clients and a simple system for new ones to get in touch with you and order a service.

In the “How to place an order” page, include a link to your website page where clients can upload their files for transcription. Make it easy on the readers who don’t need to read anymore and just want to get things started.

Add a video explainer to one of the pages showcasing how your services work and how they help your clients reach their business goals. Use Visme as your video creator and keep all assets close and organized into brand folders.

Template #20: Business Consulting Proposal Template

Business proposals are an essential sales asset. Every bit of graphic design real estate is a possible point of interaction with the client.

Create a consulting proposal with just the right icons, timelines, and colorful design elements to close the deal. Customize this or any template in this list with the Visme editor, and you’ll have a share-ready proposal in minutes, not hours.

How many pages should a business proposal be?

There is no standard length for a business proposal. The number of pages is determined by your project scope, the client's requirements and the details you want to cover. Your proposal should be as long as it takes to convey key pieces of information and close the deal.

What is the best font for a business proposal?

We recommend using fonts that make your business proposal clear and readable. Basic fonts like Arial, Sans Serif, Courier New, Calibri, Cambria, Times New Roman, Tahoma and Verdana work well. Use a 10 to 12-point font size for the body and a 14–16 point font size for headings.

How do you start an introduction to a business proposal?

Your business proposal's introduction should start with a brief overview of what your company does. Also, it should include what sets your company apart from its competitors and why you should be the top choice for the job or project.

What to Include in a Business Proposal

A business proposal should include the problem statement, proposed solution, scope of work, qualifications, timeline, milestones, pricing and terms.

Writing business proposals is a lot of work. With the tips and templates shared in this article, you have everything you need to create a professional proposal that impresses your client and wins them over.

Start creating business proposals today to market your business and close more deals. Visme's proposal maker is perfect for creating professionally designed business proposals for any business, industry or use case.

Easily put together winning business proposals using Visme

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About the Author

Unenabasi is a content expert with many years of experience in digital marketing, business development, and strategy. He loves to help brands tell stories that drive engagement, growth, and competitive advantage. He’s adept at creating compelling content on lifestyle, marketing, business, e-commerce, and technology. When he’s not taking the content world by storm, Unenabasi enjoys playing or watching soccer.

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

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

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

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

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

Let’s get started.

What Do You Need A Business Plan For?

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

1. Secure Funds

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

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

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

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

2. Monitor Business Growth

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

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

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

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

3. Measure Business Success

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

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

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

4. Document Your Marketing Strategies

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

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

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

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

How to Write a Business Plan Step-by-Step

1. create your executive summary.

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

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

A good executive summary should do the following:

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

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

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

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

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

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

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

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

2. Add Your Company Overview

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

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

Your company overview should contain the following:

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

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

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

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

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

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

• Mission Statement

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

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

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

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

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

Business Objectives

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

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

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

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

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

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

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

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

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

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

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

Market Analysis

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

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

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

• Market Research

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

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

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

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

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

How to Quantify Your Target Market

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

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

What Does a Good Market Analysis Entail?

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

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

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

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

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

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

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

Competitive Analysis

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

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

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

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

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

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

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

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

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

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

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

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

Direct vs Indirect Competition

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

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

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

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

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

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

Factors that Differentiate Your Business from the Competition

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

1. Cost Leadership

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

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

2. Product Differentiation

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

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

3. Market Segmentation

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

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

4. Define Your Business and Management Structure

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

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

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

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

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

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

Management Team

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

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

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

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

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

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

Key Questions to Answer When Structuring Your Management Team

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

Additional Tips for Writing the Management Structure Section

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

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

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

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

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

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

Organizational Chart

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

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

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

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

5. Describe Your Product and Service Offering

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Avoid Technical Descriptions and Industry Buzzwords

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

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

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

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

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

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

3. Long or Short Products or Services Section

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

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

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

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

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

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

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

4. Describe Your Relationships with Vendors or Suppliers

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

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

5. Your Primary Goal Is to Convince Your Readers

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

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

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

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

Key Questions to Answer When Writing your Products and Services Section

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

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

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

6. Show and Explain Your Marketing and Sales Plan

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

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

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

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

Outline Your Business’ Unique Selling Proposition (USP)

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

Target Market and Target Audience

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

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

Creating a Smart Marketing and Sales Plan

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

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

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

Your Positioning Statement

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Basic Rules to Follow When Pricing Your Offering

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

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

Pricing Strategy

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

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

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

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

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

Advertising

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

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

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

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

Public Relations

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

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

Content Marketing

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

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

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

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

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

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

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

Social Media

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

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

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

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

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

Strategic Alliances

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

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

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

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

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

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

2. Evaluate Your Competition

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

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

These questions can help you know your competition.

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

3. Consider Your Brand

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

4. Focus on Benefits

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

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

5. Focus on Differentiation

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

Key Questions to Answer When Writing Your Marketing and Sales Plan

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

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

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

7. Clearly Show Your Funding Request

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

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

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

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

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

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

Funding Request: Debt or Equity?

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

Case for Equity

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

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

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

Case for Debt

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

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

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

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

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

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

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

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

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

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

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

8. Detail Your Financial Plan, Metrics, and Projections

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

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

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

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

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

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

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

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

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

Use Graphs and Charts

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

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

Address the Risk Factors and Show Realistic Financial Projections

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

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

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

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

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

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

1. Sales Forecast

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

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

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

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

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

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

2. Personnel Plan

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

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

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

3. Income Statement

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

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

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

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

4. Cash Flow Statement

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

5. Balance Sheet

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

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

6. Exit Strategy

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

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

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

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

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

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

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

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

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

9. Add an Appendix to Your Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

Tips and Strategies for Writing a Convincing Business Plan

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

1. Know Your Audience

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

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

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

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

2. Get Inspiration from People

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

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

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

3. Avoid Being Over Optimistic

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

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

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

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

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

4. Keep it Simple and Short

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

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

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

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

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

5. Make an Outline and Follow Through

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

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

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

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

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

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

6. Ask a Professional to Proofread

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

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

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

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

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

1. hubspot's one-page business plan.

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

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

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

2. Bplan’s Free Business Plan Template

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

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

3. HubSpot's Downloadable Business Plan Template

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

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

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

4. Business Plan by My Own Business Institute

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

The comprehensive template consists of a whopping 15 sections.

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

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

5. Score's Business Plan Template for Startups

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

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

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

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

6. Minimalist Architecture Business Plan Template by Venngage

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

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

7. Small Business Administration Free Business Plan Template

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

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

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

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

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

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

9. PandaDoc’s Free Business Plan Template

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

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

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

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

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

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

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

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

Alternatives to the Traditional Business Plan

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

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

Business Model Canvas (BMC)

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

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

Segments of the Business Model Canvas

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

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

Lean Canvas

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

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

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

Startup Pitch Deck

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

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

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

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

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

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

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

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

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

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

Business Plan FAQ

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

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

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

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

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

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

Exlore Further

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

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Martin luenendonk.

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

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

How to Write a Business Proposal

Creating your first business proposal can feel intimidating. They may seem overly official for your small (growing) business, with too many details and requirements.

Let’s face it: jargon-filled business documentation just isn’t your style. (It’s not ours, either.)

Thankfully, your business proposals don’t need to be complicated to get the job done.

Over the years, I’ve used business proposals for larger deals and developed a template that I could customize for each deal. I can confidently say these proposals helped me win some high-value deals, gave my internal champions a persuasive edge, and built a case to justify the price quote included inside.

Below, you’ll learn what your proposal should include, how to write it, and some proposal best practices to help you win new business. 

What is a Business Proposal, and Why Do You Need One?

You’ll want to include some items and exclude others to create a winning proposal. Here’s our take on what a proposal that helps you close the deal will include.

Must-Have Items in Your Business Proposal

• Title page: Starting with a visually appealing title page that states your company name, who the proposal is for, and the date it was created can set a nice, professional tone. Use your company logo and a well-designed image to start things off. 
• Executive summary/cover letter: Next, you can add a short description of your company’s background and qualifications, why people in your industry trust you, your mission statement, or whatever you feel is important to include. The goal here is to set the stage in a way that builds trust.
• A problem statement and solution: Before you jump into the details, sell your potential clients the “why” behind your proposal. Recap all of the problems you’ve previously identified and the solutions that your company has for them. Paint a picture of the future state and expected outcomes you’ll create. 
• Service and project details: Now that you’ve shown what problems you’ll solve, it’s time to describe how you’ll solve them. Here, you can detail your services and the details of the project. If you’re an accounting firm, you would list things like bookkeeping, tax returns, financial reporting, and payroll. For each service, provide a description of what it entails and the expected results. 
• Project deliverables timeline: Knowing when they can expect results can help build urgency in your prospects. If you’re selling software, for example, you could add an expected delivery timetable for data migration, implementation, training, and go-live dates. This will make the picture even clearer and help get you closer to the finish line. 
• Pricing: Proposals are a great place to present your pricing because it’s wrapped in all the benefits that you provide. Rather than just telling them the price information you would see on a menu, you can strategically place the pricing within your proposal. Describe each line item you’ll be charging for from the scope of work and services earlier in your proposal. Make it crystal clear so there are no surprises later. 
• Social proof: Points like statistics (money and time saved are usually the go-tos), case studies, or testimonials from similar clients help build your case. You can also use things like the number of years you’ve been in business (more years equals more trust) or the number of clients you’ve served (like McDonald's “1 billion served” signs). 

Optional Items to Include in Your Business Proposal

• Table of contents: A table of contents can be helpful if your proposal includes many different services and important information. However, it isn't necessary if it's a shorter proposal.
• Package options: Depending on your type of business, it can be helpful to give a few pre-packaged options for different service levels. You have your economy (cheap) option, the standard package, and the premium offering. This can help prospective clients self-select for their own needs and save you time when creating custom pricing and service packages.
• Contract: Some businesses will need to get a contract with terms and conditions signed before work begins, so your proposal can be a good place to include that. Accounting firms, for example, need to get new clients to sign an engagement letter that details the scope of work, payment terms, when they’ll be billed, etc. If you have that or something similar yourself, include it here.
• Payment options: You can make proposals part of the purchasing process. If it makes sense for your business, include a section on payment terms, the payment information they’ll need to provide, and a list of payment options they can choose from (typically, this will be ACH, credit card, or check). Including this here can cut the time it takes to close the deal by getting it taken care of early. 
• Signature line: Again, if you want to make the proposal part of the actual purchasing process, you can include signatures in it. Many service providers, such as real estate agents, will use a software program to send the proposal with e-signature lines everywhere they need the client to sign. E-signature programs like DocuSign or Adobe Sign streamline this.

According to an Adobe study , 65 percent of business proposals containing a signature block close within 24 hours.

What’s the Ideal Visual Format for Your Proposal?

The format you use to deliver your proposal will depend on what you need to include. If you’re just sending a proposal that outlines the work you’ll be doing but doesn’t need e-signatures, using a PDF works great.

You can also use a slide deck or infographic if you want to be more creative and present the proposal live. If you really want to stand out, you can even send it via direct mail (maybe include a nice bottle of scotch, too). 

If you want to include a contract, terms and conditions, and e-signature, there are numerous programs you can choose from to deliver an interactive digital proposal. DocuSign, PandaDoc, and Adobe Sign are among the most popular options for going beyond a basic format. 

But please, for the love of God, don’t send your proposal as a Word document! PDF is the minimum requirement, but use a program like the ones above to make it more official.

How to Write a Business Proposal in 8 Steps

Writing a business proposal involves gathering all the information you need to form your business case and clearly state your scope of work. Then, you organize that information into a thoughtful proposal format that lays it out step by step for your prospect to digest. 

After you create your first proposal, you can use it as a template for future proposals by taking pieces of it that work for your next new client. You can then keep iterating on your template as you improve your proposals over time. 

Here are the simplest eight steps to start writing your first business proposal:

1. Know Your Audience and Format

Before you start your proposal, you need to know who your audience is and how you’re going to deliver the proposal to them. Your proposal will be different if you’re writing it for potential investors, customers, or business partners. Make sure you deeply understand your audience and what they care about. If you’re in sales, you can use your CRM to pull notes from previous conversations to achieve this. 

Also, how you intend to share it will influence how you write it. If you intend to present it live, maybe a slide deck is the ideal format. If you’re going to email a document that you want shared around the office, a PDF might be better. If you want it signed, maybe an e-signature-enabled PDF is ideal. 

Action items:

• List your who, what, why, how, and when: Get crystal clear by listing out the details of who this is for, what the goal is, why it matters, how you’re delivering it, and when. 
• Create an open document: Once you have the format down, just create an open file in the proper format and save it as an "X proposal." This signals to your brain that the work is officially underway. 

2. Create a Simple Outline to Keep You Focused

Writing is always easier when you have an outline. It keeps your brain organized and helps you stay aligned with your end goal. Keep your outline simple, clear, and easy to follow. You can use the ‘who, what, why, how, when’ exercise from step one to inform it, and follow the ‘must haves’ from the above section to help you fill it out. 

• Outline your must haves: This includes your cover letter, problem statement, and solution, service details/scope of work, etc. 
• List any nice to haves: Once you have the bare minimum outlined, consider what else might be useful to include. For example, do you want to include an e-signature, or is that not a requirement for your sales process? 

3. Craft a Message You Can Deliver Later

Before you start filling out the outline you just created, write a messaging statement guiding your proposal writing. It’s helpful to create a central theme that you can follow and remind yourself of as you’re writing so you don’t get bored, too in the weeds, or focused on non-essentials. 

Consider using the messaging statement as your problem statement and solution in the proposal itself. It’s a helpful first thing to write and orient yourself with.

Also, make sure that this message is something you can actually deliver later. This is in writing, so any unfulfilled promises can easily be pointed out. Protect your reputation and only write down the results you can deliver. 

• Add your proposal messaging statement: Write a few sentences on the core messaging you want your proposal to convey. Is it about saving time and money, doing things better, or something else?
• Ensure you can deliver: Are the results you’re talking about in your messaging statement feasible? Make sure you only make promises you can keep. 

4. Personalize Your Executive Summary

Your executive summary is your opportunity to introduce yourself and your company to prospective clients and build trust. And what builds more trust than a personalized message? 

Using the same boilerplate executive summary you use for everyone else is obvious and could waste everyone’s time. Instead, add some personalization, like why your experience is relevant, what high-level results you can deliver, or why you are a uniquely good fit. This will help you sell a better vision and make the rest of the proposal more interesting. 

• Find your uniqueness: What makes you or your company uniquely fit? Use that in your executive summary. 
• Identify what’s in it for them: Make sure you’re clear on why your prospective client is interested, and appeal to that in your executive summary. 

5. Scope Out Your Project Details and Services 

Now that you’ve sufficiently crafted a message and sold the vision in the executive summary and problem/solution statement, it’s time to get down to the details. Use the words you need to explain each deliverable, but don’t overwhelm them with details.

The proposal should have a complete scope of work that you and your prospective client can agree on. This will help them understand and justify the pricing section later on. 

• Scope out your project: List everything you will provide in a bulleted list. 
• Describe your services: For each line item, describe what the service is and what results it will provide, but don’t get too wordy. Stick to the point. 

6. Find the Most Relevant Social Proof

Ideally, you have a library of stats, case studies, and testimonials from previous clients you’ve served that can support your business proposal. If not, you might need to get creative or contact previous clients and ask for a quote or recommendation.

Focus on finding social proof from clients most similar to your proposal audience. It won’t be very effective if it's irrelevant to them. 

• Dig for treasure: Find the most relatable social proof points from similar clients to include in your proposal.
• Reach out: If you lack great social proof, contact an existing client for a quote or testimonial you can use. If they have numbers to back it up, that’s even better.

7. Create Clear Pricing and Timeline Expectations

After reading your proposal, your prospect should know exactly what they will be spending and when they will receive the services they're paying for. If there is ambiguity here, the proposal hasn’t done its job.

Be sure to present your pricing. You can include package options (see the ‘nice to have’ section above) if it applies and make it easier for your client to choose. Also, include a timeline for each deliverable. This can be an estimate since it depends on when they purchase. 

• Build a pricing table: Add an easy-to-read table showing the price for each line item and what’s included. 
• Set out clear timelines: For each deliverable or service you provide, add an expected date. For ongoing services, just add the start date. These are your best estimates but are not set in stone. 

‎8. Templatize Your Proposal for Future Use

Create once, use forever. You just worked hard writing that proposal, and making a business proposal template from it will save you a ton of time down the road. You can keep iterating and improving on future proposals and update your template as you do. 

• Make a template: Take this proposal and turn it into an easy-to-use template you can pull up for your next proposal. Be sure to mark anywhere that needs to be personalized and what is okay to reuse without changing. 
• Share templates: If you’re working with a team, it can be helpful to swap templates with your colleagues. You can learn from each other and find ideas to make your proposals better. 

Types of Business Proposals (and How to Use Them)

There are many types of proposals, but they aren’t all useful for your unique business. To better understand how to integrate proposals into your business, I’ll show you the various types of business proposals and how they are commonly used. 

Sales Proposal

A sales proposal is used when a salesperson sells their company’s product or service to another company. This is common in high-ticket business-to-business industries like software, medical technology, industrial equipment, or other markets where a salesperson needs to be involved. 

How is this used? 

After qualification, a salesperson can create a proposal summarizing the pain points and solutions uncovered during the sales process. The proposal will clearly show the problems that need solving, the solutions, and why the company is equipped to solve them. Depending on how you want to deliver it, this can be presented live as a slideshow or emailed as a PDF. 

Services Proposal

A services proposal is for companies that provide a regular recurring service. This could be anything from accounting to facilities management. A salesperson may be involved, but often, these proposals are created by the owner/operator of a small business. 

How is this used?

These proposals will include brief information about the company, details about its services, and payment details that include when and how they will be billed. Some of these proposals can also contain a contract with terms and conditions and an e-signature line. The proposal itself can be the binding document that officially starts work. 

Investment Proposal

This type of proposal is used by businesses seeking to raise funds from investors. These proposals can be general proposals that are sent out to all potential investors, or they can be personalized for important investors that you really want to impress. 

Often referred to as an investor pitch deck , this is a proposal that outlines the business plan, the total addressable market (TAM), the company’s long-term vision, and how the investment deal will be structured. For example, they might be seeking a $2M investment for a 15 percent stake in the company (kind of like Shark Tank). 

Partnership Proposal

Certain business models rely on building a network of partners to grow their value. Examples include niche B2B marketplaces, integrated software platforms, or mortgage brokers that partner with specific banks.

When seeking a new partner, a business owner can create a proposal that outlines the value that a new partnership will bring. It will set expectations for the scope of work, benefits, and long-term goals. 

Alister Wood is the founder of an Australian SaaS partner network called VisitUs . It’s a system that integrates with over 2,000 apps and is used by hundreds of companies globally. He uses proposals to close new business partners. 

“When I'm seeking a business partner, I always include a title page with a title that communicates my objective. It's usually something like "Cooperation to boost revenue in South-West Australia." I also include comments on all data presented and place it into the correct context. The title always needs to state the objective, explicitly and implicitly. 

“I never assume that the recipient knows anything about my business, so I provide quick explainers across the proposal.”

Want Your Business Proposal to Work in the Real World? Follow These Best Practices

Sending a nice-looking proposal isn’t a guarantee that you’ll win a new client. To help your chances, try these best practices that might give your proposal the extra boost it needs. 

Present Your Proposal with a Strong Value Prop

Just like in any form of writing, the goal of the first sentence is to get the audience to read the second sentence. If you start with a strong value statement that builds interest and desire upfront, you’re more likely to succeed in getting your reader to continue reading (or listening). Don’t bury the gold and expect them to dig for it; surface it upfront instead so they’ll want to know more. 

Summarize Your Real-Life Conversations

Especially for sales proposals, it’s helpful to look back at all the notes you have in your CRM from the qualification process. These are your clues for the pain points and benefits to present in your proposal. By the time you write the proposal, you should have already qualified them and uncovered all of the important points, so use the proposal to summarize them logically. 

Michael Nemeroff is the CEO and co-founder of Rush Order Tees , an apparel eCommerce brand that caters to both B2B and B2C customers. When presenting a proposal to his suppliers, he summarizes the important points from his previous conversations. 

“I use business proposals when I want to connect with new raw material suppliers. I run a printing company, which means we need a steady inventory of plain t-shirts and other apparel in various colors and sizes. Our materials come from multiple suppliers, based on their product availability. 

“The goal of my proposals is to summarize discussions I’ve already had with these suppliers. The document is like a transcript of the details we discussed: the type of company we run, our target audience, and the type and quantity of apparel we’d need from that source.”

Personalize Your Proposal Beyond the Template

Having a template is key to making your proposal easy to write, but don’t let it be too easy. You should also craft a personalized message that speaks directly to your audience’s needs. Every proposal should be a little different based on who it’s for. 

Boris Markovich co-founded the New York City-based social media API company Ayrshare . He uses proposals weekly, and while he relies on templates, he also stresses the importance of personalization. 

“Having a template is just standard practice. Typically, a proposal will have fixed sections, but from experience, crafting proposals unique to the client is most effective. I steer away from using proposals that are purely template-based. They won't cover all the bases as each client's unique business needs specific coverage.”

Make it Visually Appealing

Good design conveys professionalism and value. The bad design conveys laziness and amateur status. Design your proposal template to look professional and appealing to build trust with your audience. If you don’t work at a company with designers you can lean on, there are templates on sites like Canva, or you can hire a freelance designer from Fiverr or Upwork to create a template for you. 

Keep Track of Which Proposals You Sent to Who (and When)

If you’re in the game of sales, you’ll probably send many proposals to prospective clients. Using a CRM that lets you track this will help you immensely. Knowing when you sent a proposal and having access to the proposal in your CRM will help you follow up at the right time and have the information you need readily available when you do. 

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Craft a Follow-Up Message That Encourages Action

Another positive aspect of using a CRM is scheduling follow-ups so you don’t have to keep thinking about it or forget to do it. When you follow up on a proposal, you can craft a message that encourages your audience to take action by reminding them that everything they need is in the proposal. 

Ask them what their boss thinks about the proposal, if they have everything they need to move forward, or if there’s anything in the proposal that needs to be changed. Try to make it a question that leads to the next stage of the sales cycle, which at this point is closing the deal. 

Proposals Don’t Need to be Complicated to Win More Deals

For most salespeople and business owners, a simple proposal is all you need to help you win more deals, so don’t over complicate it. Be sure to include the essentials we listed above and follow some of the best practices, but don’t feel like you’re writing the next great American business book. 

Most of all, focus on what’s in it for your audience and why you uniquely can service their needs. Proposals that always follow this principle will win the most deals. 

Lastly, tracking proposals (and the rest of your sales process) is much less complicated when you have an easy-to-use CRM. Close is the ideal CRM for service businesses and salespeople who rely on proposals to help them win more deals. It allows you to attach proposals alongside all of the other relevant information on your leads so you always have the context you need to follow up effectively. 

Interested in using Close to track proposals and leads? See a demo or try it for free .

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Table of contents, how to write an impressive business proposal.

• 3 May, 2024

Understanding Business Proposals

Before diving into the process of writing an impressive business proposal, it’s important to have a solid understanding of what a business proposal is and the different types that exist.

Definition of Business Proposal

A business proposal is a formal document created by a company and presented to a prospect with the aim of securing a business agreement. This document outlines the value proposition and persuades the target company or organization to enter into a business relationship. It serves as a strategic tool to showcase the capabilities, expertise, and solutions a company can offer to address a specific problem or need. The ultimate goal of a business proposal is to convince the prospect that the proposed solution is the best fit for their requirements and that the partnership will yield mutual benefits ( HubSpot ).

Types of Business Proposals

There are two main types of business proposals: unsolicited and solicited.

Unsolicited Business Proposal : An unsolicited business proposal is initiated by the submitting company without a formal request from the target organization. In this case, the proposing company identifies a potential problem or opportunity and presents a solution to the prospect. Unsolicited proposals require a strong value proposition and compelling presentation to capture the prospect’s attention and interest.

Solicited Business Proposal : A solicited business proposal occurs when the target organization issues a request for proposal (RFP) and invites other businesses to submit proposals detailing how they would solve a specific problem. In a solicited proposal, the prospect provides guidelines and requirements for the proposal, including the format, content, and evaluation criteria. It is crucial to thoroughly understand the prospect’s needs and tailor the proposal accordingly to increase the chances of success.

Understanding the distinction between these two types of business proposals is essential, as it determines how the proposal is initiated and the approach taken to address the prospect’s needs. For more guidance and examples, check out our business proposal examples and our business plan templates .

In the next sections, we will explore the essential components of a business proposal and delve into the strategies for crafting a compelling and effective proposal that stands out from the competition.

Components of a Business Proposal

A well-crafted business proposal consists of several key components that effectively communicate the value and benefits of your proposed solution to potential clients. These components include the executive summary, problem statement, and solution offered.

Executive Summary

The executive summary serves as a concise overview of the entire business proposal. It provides a high-level summary of the key points covered, making it quick and easy for potential clients to understand what is being offered and why it would benefit them to do business with your company.

In the executive summary, you should aim to engage and win over evaluators early, before they delve into the details of the proposal. It is recommended to write the executive summary as the last step, once you have a clear understanding of all the details, to avoid the need for multiple revisions. This approach allows you to summarize the proposal accurately and effectively.

When crafting the executive summary, consider the following elements:

Understanding the Client’s Challenges : Summarize the pain points or challenges the client is facing. Demonstrate that you comprehend their needs and the problem they are seeking help with.

Proposing Solutions : Describe how your proposed solution addresses the client’s challenges. Highlight the unique features or benefits that set your solution apart from competitors. Emphasize how your solution aligns with the client’s goals and objectives.

Showcasing Unique Qualifications : Highlight the unique qualifications of your company or proposal. This can include relevant experience, expertise, awards, or certifications that position your company as the best choice to address the client’s needs.

Remember, the executive summary should be concise, typically spanning just 1-2 pages. It should be engaging, compelling, and leave the reader eager to explore the proposal further. For more guidance and examples, refer to ClientPoint and Utley Strategies .

Problem Statement

The problem statement section of a business proposal clearly articulates the problem or need of the potential client. It demonstrates your understanding of their challenges and establishes the foundation for presenting your solution.

When addressing the problem statement, keep the following points in mind:

Client’s Challenges : Clearly identify and define the challenges or pain points that the potential client is experiencing. Show empathy and understanding for their situation.

Relevance to the Client : Explain how the identified problem directly impacts the client’s business or operations. Highlight the implications and potential consequences of not addressing the problem effectively.

Research and Analysis : Support your problem statement with thorough research and analysis. Utilize data, statistics, or industry trends to strengthen your case and demonstrate your expertise.

By effectively addressing the problem statement, you set the stage for presenting your solution as the ideal way to overcome the challenges faced by the potential client. For more insights, refer to HubSpot and Utley Strategies .

Solution Offered

The solution offered section is a crucial component of a business proposal. It outlines how your company’s products or services can effectively solve the client’s problem.

When presenting the solution offered, consider the following guidelines:

Tailor the Solution : Clearly demonstrate how your solution is customized to meet the specific needs and requirements of the client. Highlight the unique aspects that make your solution the best fit for their challenges.

Benefits and Return on Investment : Emphasize the benefits the client will gain by implementing your solution. Showcase the return on investment, cost savings, increased efficiency, or any other positive outcomes that they can expect.

Address Potential Risks : Acknowledge any potential risks or concerns the client may have. Address these in a transparent and proactive manner, showcasing your ability to mitigate risks and ensure a successful implementation.

Implementation Plan : Provide a brief outline of the implementation plan for your proposed solution. Describe the delivery process, estimated timeline, key personnel involved, and technologies or methodologies utilized. This helps the client visualize how your solution will be executed.

By effectively presenting the solution offered, you demonstrate your expertise, understanding of the client’s needs, and your ability to deliver results. For further guidance, refer to HubSpot and ClientPoint .

The components of a business proposal, including the executive summary, problem statement, and solution offered, work together to create a compelling and persuasive document. By carefully crafting these sections, you can effectively communicate the value and benefits of your proposed solution to potential clients.

Crafting a Compelling Business Proposal

When writing a business proposal, it’s crucial to craft a compelling document that effectively communicates your solution to the client’s problem. This section will explore three key aspects of creating a compelling business proposal: tailoring to client needs, pricing options, and qualifications showcase.

Tailoring to Client Needs

To make your business proposal stand out, it’s essential to tailor it to the specific needs and preferences of the client. Take the time to thoroughly research the client, their industry, and their pain points. This information will help you understand their unique challenges and enable you to propose a customized solution that addresses their specific requirements.

Incorporate this research into your proposal by clearly articulating how your product or service can solve their problem. Use language that resonates with the client and demonstrates your understanding of their industry. By showing that you have taken the time to personalize the proposal to their needs, you increase the chances of making a strong impression and winning their business.

Pricing Options

The pricing section of your business proposal is a critical component that can make or break a deal. The pricing options should be customized to the client’s needs and align with the value they will receive from your solution. Offering different pricing tiers or packages can provide flexibility and cater to a range of budgetary considerations.

Clearly outline the pricing options, including the cost breakdown and any additional services or features included in each package. This transparency builds trust with the client and allows them to make an informed decision. Additionally, consider including a justification for the pricing, highlighting the value and return on investment they can expect from your solution.

Qualifications Showcase

Demonstrating your qualifications and expertise is essential to instill confidence in the client. In this section, showcase your company’s track record, relevant experience, and success stories. Highlight any industry certifications, awards, or partnerships that demonstrate your credibility and differentiate you from competitors.

Include case studies or testimonials that showcase how your solution has successfully addressed similar challenges faced by clients in the past. This social proof can go a long way in building trust and convincing the client of your ability to deliver results.

Don’t forget to emphasize the qualifications of your team members who will be involved in the project. Highlight their expertise, relevant skills, and qualifications to assure the client that they will be working with highly capable professionals.

By tailoring your business proposal to the client’s needs, offering competitive pricing options, and showcasing your qualifications, you can create a compelling document that effectively persuades the client to choose your solution. Remember to refer to our article on business proposal examples and business plan templates for further guidance and inspiration.

Writing an Effective Proposal Letter

A well-crafted proposal letter is essential for making a strong impression and persuading potential clients, sponsors, or investors to take action. To create an impactful proposal letter, it is crucial to pay attention to various aspects, including introduction strategies, showcasing expertise, and maintaining clarity and conciseness.

Introduction Strategies

The introduction of a proposal letter plays a vital role in capturing the reader’s attention right from the start. To make a compelling introduction, consider utilizing strategies such as:

Compelling Statistics : Start with relevant statistics or data that highlight the problem or issue you aim to address. This can create an immediate impact and grab the reader’s attention.

Thought-Provoking Questions : Pose thought-provoking questions that engage the reader and stimulate their interest in the proposal. These questions should be directly related to the problem you intend to solve.

Brief Anecdotes : Share brief anecdotes or stories that illustrate the challenges faced by individuals or businesses in the specific industry or field. These anecdotes can create an emotional connection and make the reader more invested in your proposal.

By employing these introduction strategies, you can set the tone for the rest of the proposal letter and encourage the reader to continue reading ( LinkedIn ).

Showcasing Expertise

Demonstrating your expertise and credibility is crucial for building trust and persuading the reader that you are the right choice. To showcase your expertise effectively:

Highlight Relevant Accomplishments : Showcase your past accomplishments, successful projects, or specialized knowledge that align with the problem you are addressing. This demonstrates your competence and experience in the field.

Include Testimonials or Case Studies : Incorporate testimonials from satisfied clients or case studies that illustrate the positive outcomes of your previous work. This provides social proof and adds credibility to your proposal.

Share Specialized Knowledge : If you possess unique insights or specialized knowledge related to the problem at hand, make sure to highlight it in the proposal letter. This positions you as an expert in your field.

By showcasing your expertise, you can instill confidence in the reader and increase the persuasiveness of your proposal ( LinkedIn ).

Clarity and Conciseness

Maintaining clarity and conciseness is essential when writing a proposal letter. To ensure your message is effectively communicated:

Use Simple Language : Write in clear and straightforward language, avoiding unnecessary jargon or technical terms. This helps the reader easily understand your proposal.

Break Down Complex Concepts : If your proposal involves complex ideas or concepts, ensure you break them down into simpler terms. Use examples or analogies to aid comprehension.

Utilize Bullet Points : Presenting information in bullet points helps to organize key points and highlight important details. This improves readability and makes it easier for the reader to grasp the main ideas.

By focusing on clarity and conciseness, you can ensure that your proposal letter is easily understandable and leaves a lasting impact on the reader ( LinkedIn ).

Writing an effective proposal letter requires strategic planning and attention to detail. By employing effective introduction strategies, showcasing your expertise, and maintaining clarity and conciseness, you can create a compelling proposal letter that captures the reader’s attention and persuades them to take the desired action.

Importance of Budget Planning

In the realm of business planning, budgeting plays a crucial role in ensuring the success and stability of a business. It allows businesses to allocate resources effectively, control cash flow, and make informed financial decisions. Let’s explore the importance of budget planning and how it contributes to the overall business strategy.

Budgeting for Business

Budgeting is the most effective way to keep a business and its finances on track, enabling businesses to concentrate resources on improving profits, reducing costs, and increasing returns on investment. Successful businesses invest time to create and manage budgets, prepare and review business plans, and regularly monitor finance and performance ( Info Entrepreneurs ).

By creating a budget, businesses establish a financial roadmap that outlines their income and expenditure projections. It helps in setting realistic financial targets, identifying potential risks, and planning for growth opportunities. A well-crafted budget provides a framework for decision-making, allowing businesses to prioritize their spending and allocate resources strategically.

Creating a Budget Plan

To create an effective budget plan, businesses need to consider various factors and make informed estimations. Here are some key steps involved in the budget planning process:

Allocate Resources : Determine how much financial resources should be allocated to different aspects of the business, such as marketing, operations, research and development, and overhead costs. Consider historical data, industry benchmarks, and growth projections to guide resource allocation.

Work Out Earnings and Expenditures : Project the likely earnings and expenditures for the upcoming period. Estimate sales revenue, cost of sales, and fixed costs. Break down overheads and identify any anticipated changes in costs or revenue streams.

Cash Flow Management : Ensure that the budget plan includes an allowance for taxes, debt repayments, and other financial obligations. By factoring in these expenses, businesses can better manage their cash flow, avoid financial strain, and plan for future financial requirements.

Regular Review and Revision : Budget planning is an ongoing process. It is important to review and revise budgets frequently, especially during growth phases or when market conditions change. Comparing actual income and expenditure against the budget helps in managing cash flow effectively and predicting future costs reliably.

By implementing a well-structured budget plan, businesses can gain greater control over their finances, make informed decisions, and adapt to changing business environments. It also provides a valuable tool for monitoring and evaluating business performance, enabling businesses to identify areas for improvement and make necessary adjustments.

Remember, budget planning is just one aspect of the overall business planning process. To create a comprehensive business strategy, businesses should also consider developing a business plan, outlining their goals, strategies, and market analysis. To learn more about business planning, check out our business plan templates and business plan outline .

In conclusion, budget planning is essential for the financial health and success of a business. It enables businesses to allocate resources effectively, control cash flow, and make informed financial decisions. By creating and regularly reviewing a budget plan, businesses can navigate economic challenges, seize opportunities, and achieve their financial goals.

Key Elements of a Proposal Letter

When it comes to writing a compelling business proposal, understanding the key elements of a proposal letter is essential. These elements help convey your message effectively and increase the chances of securing a business opportunity. In this section, we will explore the purpose of a business proposal, the use of acronyms in business proposals, and the importance of tailoring proposals to buyers.

Purpose of a Business Proposal

The purpose of a business proposal is to persuade an organization to buy a product or service. It is a document that outlines the value proposition and benefits of your offering to the potential buyer. A business proposal can be solicited or unsolicited, depending on the situation. It may result from a direct offer to a prospect or in response to a specific need identified by the purchasing company ( Shopify ).

A well-crafted business proposal communicates your understanding of the buyer’s requirements and demonstrates how your product or service can fulfill those needs. It should provide a clear and compelling argument for why the buyer should choose your offering over competitors. By highlighting the unique selling points and demonstrating the value you can provide, you can effectively persuade the reader to take action.

Acronyms in Business Proposals

In the world of business proposals, companies often use various acronyms when soliciting proposals from vendors. These acronyms represent the preferred format and structure that vendors must follow when submitting their proposals. Common elements requested in business proposals include engineering specifications, business plans, project staffing, and more, depending on the requirements outlined in the Request for Proposal (RFP) ( Shopify ).

Adhering to the buyer’s specified format in the proposal submission is crucial to ensure that your proposal meets their expectations. It demonstrates your attention to detail and professionalism. Make sure to carefully review the RFP and follow the guidelines provided. This will increase your chances of your proposal being considered and evaluated.

Tailoring Proposals to Buyers

One of the key elements of a successful business proposal is tailoring it to the specific needs and preferences of the buyer. Every organization is unique, and their requirements may vary. Therefore, it is important to customize your proposal accordingly. This means addressing the buyer’s pain points, showcasing how your product or service can solve their problems, and aligning your proposal with their goals and objectives.

By tailoring your proposal to the buyer, you demonstrate that you have taken the time to understand their business and specific needs. This personalization enhances the relevance and impact of your proposal, making it more compelling and persuasive. It also shows your commitment to meeting their expectations and building a strong business relationship.

Remember to review the requirements outlined in the RFP or any other specifications provided by the buyer. Tailor your proposal by addressing each requirement and providing clear, concise, and relevant information. By doing so, you increase the chances of your proposal standing out and being selected as the preferred choice.

Understanding the purpose of a business proposal, incorporating the relevant acronyms, and tailoring your proposal to the buyer’s needs are key elements in creating an impressive and effective business proposal letter. By focusing on these elements, you can increase your chances of success and achieve your business objectives.

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

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

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

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

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

What’s in this guide:

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

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

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

The purpose of a business proposal is to:

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

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

Layout terms and conditions to protect both parties

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

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

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

Types of business proposals

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

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

Real estate and construction

Professional services

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

One-off projects

Recurring subscription

Ongoing service

Package options

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

Business proposal example

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

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

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

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

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

Here’s the idea proposal structure :

1. Cover page

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

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

2. Executive summary

The executive summary is essentially your pitch.

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

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

Make sure that your executive summary includes:

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

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

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

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

3. Approach or solution

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

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

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

4. About the company

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

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

5. Deliverables

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

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

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

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

6. Social proof or work samples

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

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

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

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

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

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

8. Terms and conditions

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

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

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

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

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

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

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

Everything you need to prepare to write a business proposal:

An understanding of the client's needs

Your determination of the best approach

Details that will get the client to say yes

Agreement with internal colleagues

The pricing options you want to offer

Knowledge of who needs to sign off

Legal contract language or templates

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

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

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

Step 1. Determine the client’s needs

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

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

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

Step 2. Kick off your proposal with a template

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

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

Check out our full library of proposal templates.

Step 3. Write the evergreen messaging about your company

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

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

Tackle these sections:

The cover page

The approach section

The about us page and team bios

The social proof or portfolio pieces

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

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

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

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

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

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

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

The problem statement or executive summary

The client’s goals

The scope of work

The project process and timelines

The deliverables

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

Step 5. Add in the project total or pricing options

Next, you should calculate your fees.

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

Step 6. Add legal terms and conditions and esignatures

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

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

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

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

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

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

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

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

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

1. Business consulting proposal template

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

Proposal sections :

Project Summary

Project Activities

Your Investment

2. Advertising Proposal Template

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

Cover Letter

Who Are We?

Testimonials

Your Advertising Media Mix

3. Branding Proposal Template

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

Overview & Goals

Scope of Services

Sample Case Study

4. Commercial Lease Proposal Template

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

Our Process

Meet Our Team

Terms and Conditions

5. Construction Bid Template

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

Cost Estimate

6. Catering Proposal Template

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

Introduction

Event Details

7. Corporate Photography Proposal Template

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

What We Offer

Photography Packages

Tips for Success

8. Financial Services Proposal Template

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

Services and Fees

Looking to kick up your proposals a notch?

Try one of these smart ideas:

1. Make your pricing dynamic

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

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

2. Create graphic designs for timelines and processes

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

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

3. Get creative with your social proof

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

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

Here are some ways to improve your social proof game:

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

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

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

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

Include an informal video testimonial from your client.

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

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

4. Have an “excludes” section

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

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

5. Include videos for introductions or complex concepts

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

Here are some video ideas to try:

Informal intros filmed with Loom

Professional videos of your team at work

Case study videos

Quick descriptions of complex deliverables, methodologies, etc.

You sent the proposal. Now what?

Here’s what to do next.

Sign it yourself

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

Be prepared to follow up

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

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

Make adjustments to the proposal to close the deal

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

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

Save different proposal templates

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

Create email templates

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

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

Get feedback from clients on both won and lost proposals

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

Here are some tips on how to do this:

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

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

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

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

Viewing metrics for a specific client

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

Average viewing metrics

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

Total viewed

Average time to view

Average length of viewing

Average views per proposal

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

Average closing metrics

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

Check these closing metrics:

Closing rate

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

Insights by proposal type

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

Growth trends

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

Trends include:

New won proposals (chart)

Active income (chart)

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

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

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

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How to Write a Business Proposal - Templates & Examples

• Table of contents

Introduction To Business Proposal 

Your business proposal is the first document that your client will see from your side. It is the one document that creates the first impression. And like people say, - “ First impression is the best impression ”. That's why you need to make the first impression THE BEST. 

Crafting a killer business proposal is about a compelling narrative that leaves a lasting impact. But when it comes to creating that narrative, most business owners struggle.  They find it hard to put together what should be included in a business proposal and how to present it.

What is a Business Proposal?

A business proposal is a written document that a firm creates to offer its goods or services. It is an outline of a project, with details of what the company will provide. It includes the details of when, and how much it will cost. It also clarifies why the business is a suitable match for the customer's demands.

Types of Business Proposals

Business proposals come in various types. There can be different types of proposals, each tailored to specific needs. Some common types are: 1. Formal Solicited Proposals: This is developed in response to a specific request by the client. 2. Unsolicited Proposals: This is developed by the proposing party without a request from the client. 3. Sales Proposals: This proposal type is for clients to pursuade them to buy a service or product. 4. Business Plan Proposals: Used to outline company's strategy and operations.

Examples of a business proposal

Below is a sample reference for a business proposal format and the things to be covered in a business proposal. It looks something like below.

More examples of business proposals depending on the business type: 

• Digital Marketing Proposal

• Accounting Services  

You can access more FREE Cone’s templates and use them depending on your business.

What should be included in a business proposal?

A business proposal should include your company and services, about the team, the challenge and solution offered, testimonials, timeline, pricing , terms and deliverables. Format of business proposal:

• Executive Summary
• Client Information and Signing Authority
• Engagement letter
• Scope of work and deliverables
• Services offered with pricing
• Terms and conditions

Creating a proposal from scratch and putting together what should be included in a business proposal might feel like a hassle. That’s where Cone’s proposal to payment software comes in. Instead of wasting precious minutes on routine business chores, You can now focus on providing high value for your clients. Click here to check out the free business proposal templates of Cone.

How to write a Business Proposal?

Let us understand in detail how to write a business proposal, format of business proposal and what should be included in the business proposal in more details based on the above elements:

1. Create a Robust Outline

Research your customer's needs to craft a compelling proposal. Include case studies, examples, and data to prove how the products and services offered by your business solved similar problems in the past. It is vital to create a brief outline that summarizes the contents of your proposal in bullet points. You can expand these in different sections to provide additional information.

2. Create a Title and Table of Contents

An engaging title captures attention. If the proposal is unsolicited, ensure that the title entices the target audience, promising to solve their problems. The table of contents summarizes the proposal and helps readers with a quick overview and easy navigation.

Explore the sample free bookkeeping contract template .

3. Write an Executive Summary

The executive summary states the brief outline of the proposal. State the mission and vision statements of your business, short-term and long-term goals, and showcase your benchmarks.

An executive summary in a small business proposal example for a fashion brand can be stated as follows:

This proposal outlines a plan to offer stylish, sustainable, and affordable fashion for consumers. We offer a diverse range of products from casual wear to office attire to cater to the needs of all ages. Key features of our products include affordability, high-quality materials, and exquisite designs.

Mission: We aim to inspire confidence, foster inclusivity, and make a positive impact on the fashion industry and the environment with our unique offerings.

Vision: Our vision is to become a globally recognized clothing brand known for its commitment to sustainability, innovation, and style.

Our short-term goals include,

Product Expansion: Launch new collections, including eco-friendly casual wear and seasonal fashion lines

Market Penetration: Establish a strong online presence, reach a minimum of 100,000 social media followers, and achieve month-over-month sales growth of 15%

Our long-term goals include,

Global Expansion: Expand our market presence beyond domestic borders, targeting vital international markets in Europe and Asia

Retail Presence: Open retail stores in major fashion capitals while maintaining a robust online presence

4. State the problem

Identify the problems your clients are facing and propose to them effective solutions. Gauge specific issues of your customers, analyze causes, and frame them in such a way that they can consider your proposed solution as the optimal choice.

For example, state the problems your customers face while filing taxes in a small business proposal.

Common challenges include:

Complex Tax Code: The tax codes are convoluted for the customers to comprehend. Customers may struggle to interpret tax laws, deductions, credits, and exemptions correctly, leading to errors while filing returns.

‍ Form Confusion: Tax forms come in various formats and can be overwhelming for customers. Choosing the right forms and correctly filling them out can be frustrating.

5. Propose a solution

Propose a robust solution that is tailored to your client's specific needs. Make sure you include:

• The deliverables you need to provide
• The processes you will use and
• The timelines for the solution
• Pricing options

For example:

A tailored solution to help clients streamline their tax filing process, ensure compliance, and reduce the risk of errors and audits.

Solution: TaxStreamline Pro-Corporate Tax Filing Solution

[fs-toc-omit]Client Needs:

Streamlined tax filing process

Compliance assurance

Error reduction and audit risk mitigation

[fs-toc-omit]Deliverables:

Custom Tax Filing System: We will provide a customized corporate tax filing system designed specifically for your business. This system will automate data collection, calculations, and filing processes, ensuring accuracy and efficiency.

‍ Compliance Audit: Our experts will conduct a thorough audit of your tax records to ensure compliance with current tax laws and regulations. We will provide a detailed report highlighting any issues and recommendations for correction.

‍ Training and Implementation: We will provide training for your tax department on how to use the TaxStreamline Pro system effectively. Additionally, we will assist in the implementation of the system within your organization.

Ongoing Support: Our team will offer lifetime support for any questions, issues, or updates related to the system and tax compliance.

[fs-toc-omit]Processes:

Initial Consultation (Week 1): We will meet with your tax department to understand your current tax filing process, pain points, and specific compliance needs.

System Development (Weeks 2-6): Our development team will customize the TaxStreamline Pro system to align with your unique tax requirements.

Training and Onboarding (Weeks 7-8): We will conduct training sessions for your tax team to ensure they are proficient in using the new system.

Compliance Audit (Weeks 9-10): Our experts will perform an in-depth audit of your tax records and systems to ensure compliance.

Recommendation Presentation (Week 11): We will present a detailed compliance audit report and provide recommendations for correction.

Implementation (Weeks 12-14): With your approval, we will assist in implementing the recommended changes to ensure compliance.

‍ Ongoing Support (Ongoing): We will provide continuous support for system usage, compliance, and any questions or issues that arise.

[fs-toc-omit]Timelines:

System development and onboarding: 5 weeks

Compliance audit: 2 weeks

Recommendation presentation: 1 week

Implementation: 3 weeks (based on approved recommendations)

[fs-toc-omit]Pricing Options:

We offer flexible pricing options tailored to your needs:

Basic Package: $15,000 (one-time fee)

Includes system development, initial training, and compliance audit

Standard Package: $20,000 (one-time fee)

Includes all features in the Basic Package plus implementation support

Premium Package: Custom Pricing

Tailored to your specific needs, including ongoing support, extensive compliance audit, and full implementation of recommended changes.

6. Testimonials

Incorporate client testimonials in your business proposal to help build credibility and trust. It helps highlight positive feedback which reinforces your expertise, showcases successful outcomes, and assures prospective clients of your reliability and quality of service.

6. Summarize the Proposal

Summarize the proposal in brief with a robust call to action to take the next steps like say signing the proposal. Offer contact information to the clients so that they can reach out to you for further discussions.

For example, 

In conclusion, TaxEase Pro is a comprehensive software solution that addresses clients' tax return filing problems by simplifying the process, ensuring accuracy, and offering tax planning support. Its deployment options and pricing plans cater to a range of organizations, making it a versatile and cost-effective solution for individuals, freelancers, small businesses, and enterprises alike.

Business Proposal Templates

Do you need a little inspiration before you begin a detailed proposal outlining?

Use Cone's free proposal software to assist you in the format of business proposal, what to be included in the business proposal and writing your own proposal. You can easily select the most suitable business proposal template out of the various Cone templates for your business. 

Below are few of our popular proposal templates:

• Accounting services proposal template in UK
• CFO services proposal
• Bookkeeping contract template
• Marketing consulting proposal
• Social media proposal template
• SEO proposal template
• Freelance graphic design proposal template
• Graphic design proposal template
• Logo design proposal template
• Web design proposal template
• Video production contract template
• Adwords proposal template

Tips For Writing A Business Proposal

A great business proposal is not written hastily. It follows a series of steps. To create a successful business proposal you need to keep the following in mind:

• Get to Know Your Audience:

Before you start writing, you want to know your client's likes and dislikes. Do some research on the people you're sending the proposal to. What are their problems? What do they care about? Tailor your proposal to their needs.

• Start with a Catchy Introduction:

Think of it as your elevator pitch. The beginning of your proposal should be like a quick "Hey, here's what we're all about." Sum up the most important points in a friendly and engaging way.

• Problem-Solution Combo:

Just like in a good chat, you don't want to talk about problems for too long. Define the problem clearly and explain how it's affecting your potential client. Then, jump into your solution - what you're going to do to make things better.

• Show Off Your Expertise:

Let them know why you're the perfect fit for the job. Share your success stories, customer reviews, or any impressive achievements. This builds trust.

• Money Talk and Schedules:

When you're discussing plans for business, you might talk about budgets and timelines. Similarly, in your proposal, lay out the costs and payment schedules clearly. Create a timeline with milestones so they can see what to expect and when.

Use these additional tips to take your proposal to the next level: 7 steps to write a stellar business proposal .

Use Templates

Using templates for proposal creation is a time-saving strategy that offers consistency, efficiency, and a professional edge. It's like having a handy starting point for the format of business proposal, what to be included that can save you loads of time. You get consistency and professionalism without breaking a sweat. With templates, you avoid the headache of starting from scratch. 

The pre-designed structure keeps things organized and looking sharp. Plus, they're super adaptable. You can tweak them to match the unique needs of each proposal, adding that personal touch. As a bonus, they make team collaboration and keeping track of different versions a breeze. 

Adding images makes your proposal more appealing. Visuals can clarify complex ideas, engage the reader, and leave a lasting impression. Think of it as a visual storytelling tool, helping you convey your message with impact. It's a game-changer when presenting data or showcasing your work. So, don't hesitate to include relevant images, whether it's product shots, infographics, or charts. They'll make your proposal not just informative but visually appetizing!

Use Visual Timeline

When you're putting together a business proposal, it's important to create a timeline that really catches the eye. Start with a chart that lays out all the key milestones and tasks. To make it even clearer, use different colors to show different phases and how things depend on each other. Don't forget to put in realistic estimates for how long things will take, so you can be sure your plan is doable.

And you also need to highlight important dates and deadlines with milestone markers. This isn't just about making it look nice; it's about showing that you've got your act together and that you've thought everything through. 

With these tactics, people who see your proposal will feel more confident about supporting your business idea.

Best Practices For Business Proposal Writing

Business proposal writing is no less than an art. Writing the best proposal is a practice. While practicing this art, you can keep the following in mind. 

• Use graphics, charts, and a professional layout to make your proposal visually appealing. Visual elements can help convey complex information more effectively.
• Eliminate typos, grammatical errors, and formatting issues by thoroughly proofreading your proposal. A well-edited document conveys professionalism.
• Clearly state what you want the client to do next. Whether it's to sign a contract, schedule a meeting, or provide feedback, make the next steps explicit.
• Don't assume your proposal will win the deal immediately. A well-timed follow-up can demonstrate your commitment and keep the conversation going.
• Avoid sending a generic proposal. Customize each proposal to the specific client and project, addressing their unique requirements.
• Utilize proposal templates to streamline the writing process, maintain consistency, and save time.

Tips On Follow-Up

Okay, so let's say now you have sent your proposal. What’s next if the client does not reply? We know many of you have faced the same situation. So here is what you can do. 

1. Polite Persistence Pays Off

After sending your proposal, don't be shy about gently following up. It's a friendly reminder that shows your commitment. A polite email or call, saying something like, " Just wanted to check if you had a chance to review our proposal ," can do wonders.

2. Offer Further Clarity

The follow-up is a great chance to address any queries or worries the client may have. Saying something like "I am available for more details or to answer any questions you might have" will help them make a decision more easily.

3. Propose Next Steps

Put a clear call to action at the end of your follow-up. Make it clear what you want to happen next—whether you want to set a deadline or arrange a meeting to discuss the plan in more detail.

What Are The Tools And Products That Can Help With Business Proposals?

Business proposal creation tools and products can streamline the process, enhance quality, and streamline the proposal process.

If you are creating proposals from scratch, then you can do so with the help of Google Docs. Canva or Adobe can help you create visually appealing graphics, charts, and infographics to enhance your proposals.

There are dedicated proposal software solutions like Cone’s proposal to payment. This free business proposal software is designed to create, customize, and track proposals. This tool includes features for e-signatures, and analytics.

Further, this is one of the best business proposal software with a wide variety of templates. With Cone's business proposal templates, you can Save an additional 40+ hours per month and achieve a 27% boost in revenue. And the best part? It is completely FREE. Try it out now.

As your first point of contact with your clients, your proposal must show your professionalism, attention to detail, and comprehension of the demands of your client. A strong proposal can pave the way for a fruitful collaboration. Proposal software and templates are just a couple of the tools and resources you may use to speed up the process and save time, as well as improve your chances of landing worthwhile prospects.

Writing a strong business proposal is a talent that may advance your company, win business, and open doors. Make that first impression count, and watch your business thrive.

How to Write a Business Proposal in 6 Steps

Want to stand out, win a project, and set the right tone in a new client relationship?

In this guide, you’ll learn how to write a business proposal that converts uncertain prospects like gangbusters.

1. Agitate the pain points

The “problem page,” also known as the executive statement, describes the “trigger” that led the prospect to your business.

Go back to your email or discovery call to identify the prospect's problem, and display it front and center.

‍ Here’s an example to illustrate what this means. Note how the following problem statement agitates the pain point with specific details.

“[Company] is experiencing stagnant revenue growth . Despite hiring a talented sales team, it’s seeing inconsistency in deals and workflows . Moreover, the misalignment between the team and marketing department is hurting the customer experience [cont’d].”

Don’t shy away from using graphics or images to bring these details to life. Unlike what its name suggests, a business proposal doesn’t have to be a tedious, formal document.

You can even pepper it with your personality—provided it fits with your branding, of course!

Many proposal software tools offer built-in stock photos and videos. Decktopus , for one, integrates with Unsplash, Pixabay, Giphy, and Icons8.

Whenever you need to add a creative element to your business proposal, you can do so without leaving the platform.

‍ Pro tip: Add a table of contents if your business proposal is more than ten pages long. It’ll give prospects an overview of what’s covered and let them skip directly to a specific section.

2. Propose a solution

Next, write what the prospect needs and give them a glimpse at their desired outcome.

‍ For instance, if your prospect needs help in overhauling their sales strategy, you might write something like this:

“Company A needs a revamped sales strategy to accelerate revenue growth for 2022. To do this, [what the prospect needs] we’ll train our all-star sales team, refine the sales process, and align sales with marketing.By the end of our collaboration, [desired outcome] we can expect an improved sales performance and a streamlined sales process with deeply integrated systems in marketing and sales.”

Pro tip: Expand on the desired outcome to entice your prospect further.

‍ Here’s a great plug-and-play business proposal template by Kroma.ai to show you what we mean. Note the eye-catching graph on the right that shows the projected outcome in action.

Irresistible, isn’t it?

It paints a clear picture of future benefits in the prospect’s head. More importantly, it conveys what the prospects need to know in a single glance. ‍

Tired of using plain graphs and charts in your business proposal?

Kroma.ai offers over one million creative assets and thousands of data visualization elements.

3. Introduce yourself with the prospect in mind

The introduction page is perhaps the most challenging, as it’s not really about listing your accomplishments one after the other.

At its core, your intro should answer the prospect’s question: “What’s in it for me?”.

In other words, introduce your company with the prospect in mind and reinforce their deepest desire.

‍ Here’s what we mean:

“We’re [Company], an agency, revenue operations pundits, and an all-around cheerleader for rising startups. Since 2010, we’ve helped over 500 go-getter startup founders like you accelerate their recurring revenue growth .”

That’s what you want to do in your introduction. Extra brownie points if you pair it with social proof!

4. List deliverables with milestones

While the solutions page focuses on the big picture, the deliverables page revolves around the action plan on a micro-level.

‍ Here’s how it works:

• Solutions (big picture) : Overhaul sales strategy, specifically in the sales process, training sales team, and aligning them with the marketing department.
• Deliverables (micro-level) : Create assets for the sales process, including email templates, sales scripts, objection handling guides, sales decks, and marketing materials; hire a VP of sales, etc.

Clients want to know what they’re getting and when they’ll receive them, so lay out these deliverables with milestones (e.g., assets for sales process, 7th January; sales team training, 18th February).

If the project involves a lot of deliverables, communicate that visually with a timeline chart or break them down into bite-sized text, like the example below.

Take a leaf out of every content writers’ book: Limit yourself to three sentences in a paragraph max. Leverage bullet points to break down long walls of text.

The goal here is to make it as reader-friendly as possible.

Your business proposal should leave prospects excited, not overwhelmed.

‍ Pro tip: Include add-ons within your deliverables page to cross-sell or upsell prospects. Here’s what I did for my content strategy proposal.

Granted, this is not a business proposal, but the tips apply!

5. Lay out terms and conditions

The terms and conditions agreement protects you. Without this legal section, it’s impossible to run a thriving business.

Imagine getting an email from a past client thinking that they’re here to hire you for new work, but only to realize that they’re requesting a free revision you offered in an old contract from three years ago. ‍

Hire a lawyer to look through the terms and conditions before submitting the proposal.

6. Make it official

Note: Not all proposals require signatures, so feel free to skip this section if it's irrelevant to you.

‍ Aaaaand you’ve reached the finish line—well, almost.

Include a signature box on the last page of your proposal.

‍ Make sure you preview it and check that there’s a space for the prospect’s signature before submitting it for approval.

Some online proposal software requires you to add a signature block manually. In some cases, you need to toggle to enable permission.

3 bonus tips for creating a high-converting business proposal

Maintain consistency.

Consistency encourages brand recognition. Your fonts, brand colors, and logo help prospects visually identify your business, which ultimately creates trust and familiarity.

That said, ensure that you’re using the same style throughout the business proposal. Use Fontjoy and Design Seeds to generate font and color combinations if you need help in both areas.

Alternatively, look to your proposal software tool for pointers . Tools like Decktopus include pre-built font and color pairings.

Decktopus also lets you upload custom fonts and colors.

Don’t worry if you find yourself itching to make last-minute changes. Any edits you make to one slide are automatically applied to the others.

‍ That way, you can focus on writing the actual content of your proposal instead of wrestling with the colors and fonts.

Overcome your friction points

In a business proposal, friction points refer to areas that obstruct the sale. Typically, these are the budget and sign-off sections.

Here’s how you can combat friction at these two points. Budget:

• Name it “Investment” to shift the prospective client’s mindset from expenses to investment for business growth.
• Add a testimonial that highlights specific results. “Jane has helped our department save $193,839 just last month alone” builds greater credibility than a generic statement like “Jane’s helped us save a lot of money.”
• Ensure that the testimonial features a similar client to give them a sneak peek at what their lives could be like if they win with the work you do.

It’s more straightforward to combat friction at the sign-off stage. What you need to do is to make it as easy as possible for the prospect to sign the proposal.

‍ After you finish writing your business proposal on NordAccept, send it within the platform. The proposal software will prompt the recipient to accept and sign for approval, whether it’s via desktop or mobile.

NordAccept will automatically generate an invoice based on the proposal upon acceptance, saving you from creating it from scratch.

Being proactive sells.

People who send at least one follow-up email can increase their reply rate by 4% compared to folks who don’t follow up at all.

The problem? Reminding yourself to follow up when you have a gazillion things on your plate is trickier than it sounds.

Fortunately, this is where proposal software tools come in.

NordAccept’s built-in intelligence tool suggests the best timeto follow up on your proposals.

This way, no deal falls through the cracks.

Win deals with a business proposal today!

There’s no hard-and-fast rule, but hopefully, this guide’s given you the necessary steps to write your first business proposal.

Here’s what you need to know:

• Describe the “trigger” that led the prospect to your business and agitate it.
• Propose a solution and give the prospect a glimpse at the desired outcome.
• Introduce yourself with the prospect in mind and paint a focus on their future.
• List deliverables with milestones and communicate them visually.
• Lay out the terms and conditions and hire a lawyer to look through them.
• Make it official —invite the prospect to sign the proposal!

A business proposal is only one piece of the puzzle in running a successful business .

You also need to manage client relationships, network with dream clients, and maintain your books every day.

If only there's a way to simplify these processes.

Luckily, you've landed in the right place.

Browse over 3,000 tools with annual and lifetime deals on AppSumo . Whatever your goal is, we’ve got everything you need to grow your business today.

Don't miss these stories:

8 above-the-fold optimization ideas to engage site visitors.

You might think that user attention is attracted by stunning imagery or unique claims. And you’re not wrong. But the success of web design that converts largely depends on the way you position high-value elements on the page.

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Home » Contracts 101 » How to Write a Business Proposal: A Comprehensive Step-By-Step Guide

How to Write a Business Proposal: A Comprehensive Step-By-Step Guide

November 19, 2021

Table of Contents

What Is a Business Proposal?

Structural elements, components: what makes up a good proposal, how to write a business proposal: steps to do it right, examples and templates, boring and text-heavy, lack of social proof, not leaving room for queries, inconsistent content, skipping the pricing page, tips for hiring a proposal consultant, freelancers, benefits of using templates for your proposal, how to get the right proposal templates for your project.

By Yuri Zaremba

A business proposal is a vital part of the client and/or partner acquisition for any product or service. It can be said that, with the help of a business proposal, a certain form of communication is established between the company and its potential partners or customers.

In this document , a prospective partner gets to discover in-depth details about a product you’re offering. They also get to review your offering to determine whether it’s viable. As such, writing an excellent proposal is essential to success in your endeavors.

In this article, we’ll look at how to write a business proposal, making sure to discuss all imperative aspects necessary to design a responsive copy.

A business proposal is a document you write to a prospective client or partner to persuade them to buy a product or service you’re offering. In some cases, it can also be a document written to a potential investor. However, it is mostly used in B2B when one business wants to offer something to another business (for instance, a supply of consumables or copywriting services).

Source: freepik.com

What Are the Types and Necessary Elements of a Business Proposal?

A business proposal becomes necessary when you have to pitch any item of value to someone who might be interested in it. It’s an effort to win over the person you send it to. The receiver may be anyone, as long as you can get in touch with them. Let’s see the three types of business proposals to understand how the document is generated.

• Formally solicited . A formally solicited business proposal is one you create in response to an official request. It’s the type of proposal you send to a customer you’ve pitched to in person, who has now asked for a formal demonstration. Typically, you know the imperative requirements and information about your prospect in this scenario. All you have to do is send the proposal and await the client’s decision. When written well, this proposal type has a very high chance of being accepted.
• Informally solicited . This proposal type is written to respond to an unofficial request for the document. An informally solicited business proposal stems from informal conversations. Consequently, it offers less information to tailor your proposal toward than the formally solicited. You’ll have to do extra research about the client to know what they would appreciate. As such, an excellently designed and researched science proposal may be enough to land you the grant.
• Unsolicited . The unsolicited business proposal is similar to a cold email or a marketing brochure. It tends to apply a one-size-fits-all formula to all prospects. Therefore, such a proposal barely meets the expectations of the potential buyer. Still, you can create a highly convincing unsolicited business proposal. What you should realize, though, is that you’ll have to research exhaustively. Such research helps identify your prospect’s pain points and tailor your proposal to their preference.

All three proposals may have different origins, but it’s noteworthy that they have similar structural elements. Let’s see what they are.

A well-structured business proposal has an excellent chance of convincing a prospect. The following are fundamentals your proposal has to address for the best results.

• Vision clarification . A business proposal expresses the mission and purpose of your business. The former defines your company goals and objectives, and the latter states your reasons for creating the proposal. Is your business plan to obtain funds or to guide specific business operations? Every other aspect of your proposal is built upon these statements. Therefore, a good proposal informs your prospect of the precise direction your relationship will take.
• Evidence . Knowing how to do a business proposal that clarifies your vision proves that you’ve put careful and critical thought into the endeavor. With this, prospects tend to relax their apprehension since your proposal shows that you know what you’re doing. You’ll have higher chances of receiving approval using a business plan that serves as evidence. Furthermore, the document serves as a constant reminder of the deal’s original intent over time.
• Road map . A business proposal is describable as a detailed chart demonstration of everything relevant about your company’s goals, prospect’s goals, and how you’ll achieve both. It details the expenses and profits to expect and makes for an easy understanding of the venture. A good proposal gives time limits for its goals, such that prospects can determine how long to wait before each objective is accomplished. Any proposal without comprehensive details demonstrating how the business will run may be rejected.
• Risk Address . Your business proposal also includes the risks associated with your business and how they may influence the relationship you’re forming with the prospect. For instance, a company may be sued, demand levels may unreasonably change, the economy may become unaccommodating, and new regulations may hamper operations. It’s necessary to realize the risks competitors pose too. A valuable business proposal also highlights how you’ll minimize such risks. This may include insurance premiums and constant efforts to improve. Addressing these risks makes the buyer aware of what may go wrong and how you’ll prevent such from happening. However, it’s essential to be objective in this part of your proposal. You should not make empty assurances simply to comfort the prospect.

Having noted what your proposal should address, let’s see what it should contain to show your vision, evidence, road map, and risk assessment.

A business proposal that covers all relevant aspects increases your chances of success. Make sure your proposal contains the following points for the best results. 

• Your identity. A good proposal should provide your name, position, and business name. But if it’s a large company, then your detailed personal info isn’t necessary. You can briefly tell the readers about yourself so they warm up to you in their subconscious minds. That’s because knowing your name and success story suggests to the client that you aren’t a stranger anymore. You can address this part by giving a synopsis of your career as a business professional, citing the landmarks you’ve achieved.
• Company’s primary operation range . This is also an introductory part of your proposal that tells the prospect what they need to know about your company. Here, you can introduce the firm’s ethos and background story. Tell the prospect something they can’t find out from a third party. People trust you more when they know your story. This is also why customers want to know how their favorite brands started and what the owners do. Omitting this part from your proposal is improper.
• Client’s needs . Your proposal has to include your partner’s needs. What challenge is the prospect facing? How has this problem affected the client’s overall lifestyle? Describe the problem in such a way that the client is pressured to take measures. You can achieve this by starting with an overview of the problem, gradually ushering in how it’s affected the prospect’s lifestyle or goal pursuit.
• Your solution to their challenge . This is where you present the solution you’re offering to your client. You’ve identified your customer’s needs and explained how it’s affecting them. Here, you have to proceed by offering the product you believe will solve their problem, but that’s not all. You should describe the advantage your solution has over other products. Then, conclude by pointing out how their current shortcomings will positively improve should they accept your offer.
• Implementation strategy . You’ve proposed your solution; how do you intend to implement it appropriately? Implementation, in this regard, includes breaking down the project into identifiable phases, task allocation, and the creation of a definitive timeline to follow. It’s crucial to be objective in this phase. This is where the client determines whether your product can achieve the solution you claim it can.
• Estimated resources to actualize projects . The final phase often gives a guided estimation of the time, money, and employees your solution will require. Answer questions on how long the customer will have to use your product before they see results. Demonstrate measurability by stating the typical period your solution takes to show traction. Then, estimate the likely costs of implementation judging by the size of the organization. All these are metrics you must have worked out during your research.

Omitting any of the components mentioned above makes your proposal less than ideal. Keep them in mind as we proceed to the step-by-step guide on how to write up a business proposal.

A business proposal has several steps that you should follow chronologically for the ideal result. Let’s take a look at each of them in detail:

The first part of your business proposal has to contain basic information about you and your company. Giving a brief introduction about yourself is optional, but information about what your business does is highly recommended. This section usually conveys your name, business name, proposal submission date, and the name of the prospect you’re submitting to. Pay close attention to this page, as it leaves a valuable first impression on a client, making it easier for them to remember you. Also, it sets the tone and expectations for the prospect. Therefore, it’s important to keep the tone sleek and appealing. Draw the reader in, so they’re eager to continue reading.

Your business proposals require a straightforward outline that will make it easy for partners to understand what they will find in the document and access all its parts. This design begins with your table of contents. The table of contents has to be meaningful, and headings should briefly but accurately convey the information that will be discussed in each section. Also, consider using a clickable table of contents in your business proposal, which makes it easier to navigate.

Your next section details why you’re sending the proposal to the client and how you believe the solution you’re offering is beneficial for the prospect. Ensure you’re specific: point out why your product or company is the best in its niche. Clients get pitches and proposals from numerous businesses regularly, especially when they’re well-known in their spaces. So, why should they pick you? The executive summary provides the strengths of your product or service and highlights how they may help the client where other products cannot. Your prospect should know what you’re offering them, why you’re offering it, and why you believe your solution should be selected above all others. A high-quality executive summary summarizes your entire proposal in one or two pages and satisfies the customer’s pain points. Also, the right proposal should offer exact answers for what the company does and how it can help the prospect. Avoid phrases like ‘pacesetters in our industry— if you don’t show how.

If done right, this part of your proposal can prove to the client that you know their problem and understand their shortcomings. It’s your chance to show them that you care about them and that they’re not just a lead generated from random marketing strategies. As such, you have to be 100/100 here. It’s vital to research possible partners’ pain points individually for each business before creating this section. You should make a list of problems and perform due diligence on who you’re pitching.

Here’s the point where you introduce the solution to the client’s pain points. You’ll have to deliver a specific and personalized strategy, so the client realizes you developed the solution specifically for them. Point out the expected results, the methods you use, the resources it’ll cost the organization (time and money), and the expected delivery time. Tailoring these areas to your prospect’s specific problems or issues increases your chances for success.

Your qualifications are mostly a form of assurance that you can be trusted. It’s a part of what proves to the client that your solution can indeed resolve their problem. You know everything works out on white paper. To convince your prospect, you need to provide them with reasons. Share the wins you’ve recorded in the field. Highlight the companies you’ve worked with, putting in one or two prominent awards or accreditations you’ve achieved. Add your customer feedback and other social proof you may have. This will show the client that you’re experienced in the industry and trustworthy.

It’s highly recommended to include your pricing options in your business proposal rather than making clients search and then write you back asking for prices. First of all, if a prospect receives enough clearer proposals, they may just skip yours. Secondly, in most niches and industries it is considered impolite to force clients to ask for a quote if it can be included in the proposal. But, of course, exceptions exist, and it’s up to you whether to include pricing and how exactly. A smart move is to research the industry thoroughly to adapt your offer to the most accepted format, especially in prices.

Here, you supply a detailed explanation of the project timeline, possible deadlines for the execution of work, individual stages, payment schedules, and other applicable parameters. The terms and conditions are essentially a clarification of the agreement between you and the client. Also, specify the factors that may terminate your cooperation.

Your final step is to add a signature space wherein the client accepts your proposal. It’s necessary to point out the significance of signing in the box to your client. You may also slip in an opportunity for the prospect if there are questions your sales proposal didn’t answer.  Writing a proposal is simple if you stick to the steps we’ve discussed. However, we realize you may face certain challenges getting it right. Therefore, here are various proposal templates and examples to help you better understand how to draft a business proposal.

Creating a business proposal may take significant effort, time and financial resources. However there are already made templates and examples that may help you in this. Templates provide a general format (i.e. education proposal , job proposal ) that you may follow if you have to create similar proposals. The following are three common types of templates and where you can get them all.

• General business proposal. This is a document you create for all your standard business proposals to be built upon. Typically, it contains three overarching parts: the statement of the problem, the proposed solution, and the pricing calculation. It’s generally sent to random prospects.
• Request for proposal (RFP) . An RFP is created when a client requests a proposal officially. This proposal is comprehensive and contains all sections in a general template, alongside terms and conditions, qualifications, a signature box, and contact points.
• Business proposal template software . You may equally use a proposal template typically specific to a particular industry. Such samples are not common like the two others we’ve mentioned.

It’s obvious that templates are a business best practice that successfully works. But services offering them tend to cost too much for comfort. Luckily, there’s a place where you can get samples for free.

• Avodocs. This is a service offering free legal documents for startups to ease their establishment. The company offers numerous document drafts, including letters of intent, terms of use, fundraising, and external services agreements. Register at the site to start.

Avodocs provides excellent proposal templates, but templates only do one part of the job. There are some rules to keep, and we’ll highlight them below. 

Common Errors to Avoid

Market research and personalized solutions make up only half of an excellent business proposal. The final text you share with the client is very important too. Is it free of errors? That can be hard to tell unless you can identify the types of errors we mean to begin with. The following are five standard loopholes to note when writing your proposal.

A widely spread error of most proposals is that they contain too much text. The easier and faster your proposal can be read, the better the chance it will be taken into account. The best proposals are crisp and precise. Consequently, you should pay attention to how it’s written.

So, here are practical tips to keep your text engaging and light to appeal to the reader. 

• Avoid long sentences . Extra-long sentences with too many words or ideas jumbled together will bore and confuse the reader. To keep your document interesting and simple to understand, break up your long sentences into shorter ones of seven to 11 words each. The same advice applies to whole paragraphs — three to five sentences each will help maintain your reader’s attention. 
• Maintain a consistent design . Design involves the font, format, color, and other visuals of your doc. It’s as important as your text — a poor design can confuse the reader too. Consequently, it’s paramount to be consistent with these elements. Don’t switch between colors and fonts meaninglessly. 
• Add visual representations . Visual content speaks better in fewer or no words, so it’s imperative to use it appropriately. Add relevant images, tables, graphs, infographics, and short videos to improve comprehension.
• Remain interactive . All too often, writers fail to remember they’re writing for other humans. They just go on and on without a break. To avoid sounding robotic, ask rhetorical questions, cite scenarios, and proffer solutions where necessary.

By their nature, people are social creatures and are used to getting together, no matter whether it’s in the real or virtual world. That’s why society has a great influence both on you and on your clients. For the same reason, we are used to checking information on the internet (i.e., reading or watching reviews) before making important decisions. Therefore, clients now put sufficient time into seeking reviews and ratings from previous users. Unlike before, when buyers trusted the salesman, they now prefer to listen to other buyers to make their decisions.

The same applies to your proposal. Failure to show that others accept you reduces the quality of your proposal.

Include social proof in your proposal to gain the prospect’s trust through:

• Inclusion of testimonials . Testimonials prove that your previous partners were satisfied with the cooperation. This makes for a ground on which new ones can feel safe partnering with you.
• Narration of the process . Citing testimonials is an effective practice, and you can strengthen this with a narration of a case study. Tell an engaging story of how you and a client met. Define what they wanted and prove how you satisfied their needs. 
• Relevant examples . Your testimonials have to be relevant to convince your client that you are equipped to tackle current developments and deeply understand what to do. Choose the most relevant examples close to the industry and business of a particular prospect. 

It’s vital to know that your proposal may have gray areas, notwithstanding how much you work on it. Therefore, it’s necessary to make provisions for contacting you. Feedback is a helpful function of your business proposal, and clients are more likely to reach out if you make it easy for them.  

To make your feedback option effective, stick to the following:

• Incorporate feedback technologies . Digital proposal software now allows clients to reach you conveniently when reviewing your submission. This technology is super helpful, as it provides the chance to answer their questions immediately. Ensure you have a live chat option present if you’re using digital software. 
• Handle queries appropriately . Having a live chat provision in your proposal is far from enough. What matters more is how you respond to queries. People believe they can perceive a sham by asking questions to see the seller’s answers. Therefore, you need to have the right responses and an appropriate approach to give them the final nudge. 

Some proposals are written with rough, technical language, which may turn off the average reader. It’s high time you knew that jargon doesn’t make you appear knowledgeable. Rather, it makes your proposal confusing, complicated, and strange to most people. In addition, some proposals violate grammatical rules. They contain typos, poor grammar, and incorrect terms. How do you expect your prospect to trust your help when your proposal is unreliable?

Some simple rules can help you achieve ideally consistent content:

• Try to use short sentences, everyday words, and a dominant active voice.
• Include linked statistics to prove your claims.
• Try to add subtle CTAs that lead the reader on to the subsequent sections.
• Use writing tools like Hemingway and Grammarly for improved readability.
• Ask a trusted copywriter to review your proposal.
• Create a content library with the edited and final text to ensure prospects get the right information.

The investment page is also the pricing page. Some proposals don’t focus on this page to avoid being rejected. However, that may lead to underselling the product. While it’s smart not to clog the section with options, you can’t just cut it out either. 

• The golden tip here is to present three pricing options. You have to clearly show which is the basic scheme, the middle spot, and the premium package. Give the compelling features of each and leave the reader to make their preferred choice. 

Generally, writing a business or initiative proposal is a demanding and error-prone task. Fortunately, there are some infallible techniques you can apply. These proven strategies ease the burden and make excellent proposal creation a routine. Keep these tricks in mind for softer landings:

• Your best pieces can be kept to refurbish and reuse.
• Templates can make the proposal creation process simpler and faster.
• An expert review before sharing your proposals can make all the difference.
• Personalized client information has to be updated to be ideal.
• The process is more effective when it involves numerous professionals. This requires leaving marketing to another team.
• It’s necessary for digital proposals to be accessible in numerous formats and on different devices. 
• A consistent brand image plays a significant role in allaying clients’ fears.

Business Proposal Writing Services: Who Can You Hire?

You may prefer to outsource your proposal to an expert in some cases. This may be when your in-house team can’t deliver an impeccable solution, there are too many projects at hand, or you don’t want to spend your time and effort. When this happens, you have to ensure you’re picking a good fit-out of the numerous options on the market. Here’s what to consider.

• Proposal expertise . Gaining expertise in proposal creation comes from years of experience in the field. Therefore, not every member of a proposal management team is necessarily excellent at the job. If you want excellence, you may have to seek out a manager who’s undertaken competitive and complicated proposal gigs. Check out the portfolios of the people on offer to find out who’s successfully handled projects similar to yours.
• Domain experience . A proposal creator ought to understand the project at hand. Check for degrees relevant to the field, experience gained on the job, or experience acquired from working with similar industries. Whichever end the writer falls on, what matters is that they have some domain experience.
• Professional commitment . Commitment to the profession distinguishes between specialized proposal managers and those who are merely in the field to fill time. You can determine this commitment level by considering the developmental courses and training a creator has undergone. Participation in the Association of Proposal Management Professionals and similar industry organizations is a plus for any creator. 

Having identified what to look out for in your search, let’s see the platforms offering proposal writing services.

Available Market Options

There are two categories of options available:

• Upwork . Upwork is a platform that connects skilled freelancers with clients. Trust that you’ll find excellent proposal writers on the site with ease.
• Fiverr . This is another high-standard platform to find excellent freelancers. Register to start hiring the best freelancers at the site.
• MyPM . This is a full-range proposal management company that handles the development of business and government proposals. The firm’s main clients are federal contractors in different industries.
• Optimal Thinking . OT is an excellent proposal writing service with a 92% win rate. The company has generated over $28 billion for clients over two decades. 

Cutting Out the Complexities: How Can You Find the Ideal Business Proposal Templates?

Would you like to cut out the numerous hassles involved in the proposal creation process? Imagine a device that presents a format anyone can follow to develop a responsive proposal. Unbelievable, right? That’s where templates come in!  

Templates are an excellent tool for proposal writing. Let’s see the benefits of ordering a template and how to order the right fit for your proposal easily. 

The following are possible reasons you may opt for a template for your proposal creation. 

• Process simplification . A good template simplifies the proposal delivery process. It shows you the appropriate stories to tell and how to tell them. This prevents you from creating text-heavy or inconsistently written content.
• Improved responsiveness . Using a template ensures that your content is ideally created. It helps present your product properly, thereby increasing the chances of the customer accepting your offer.
• More value . Creating your proposal using a template offers extra value for your cash. Templates cost less than third-party consultants, whether they’re freelancers or companies. In addition, a template avoids errors that may occur if you outsource your project. 

The privileges of having a good template for your proposal are remarkable. Let’s see how to obtain these templates to explore these benefits.

You can secure templates for your proposal from various template provision platforms, such as Avodocs.

• Avodocs . This is a service offering free legal documents for startups to ease their establishment. The company offers numerous document drafts, including letters of intent, terms of use, fundraising, and external services agreements. You (or anyone on your team) can create a more responsive and performance-driven business proposal with any of the products on offer at the website. 

A business proposal can make or break your chances when applying for a partnership of any kind. You can learn how to write a business proposal by identifying a client’s problems and offering personalized solutions to them. Note that you’ll have to take note of other regulations and common errors to achieve excellent results.

However, if you’d prefer an approach that eliminates the hassles of telling your story correctly, templates are an excellent alternative to opt for. Browse the exclusive collection at Avodocs for a start.

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How to Write a Modern Business Proposal

Writing a business proposal is essential for winning clients and securing projects. Here is the structure and a few tips to make sure it rocks:

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Understand the client’s needs.

Before writing, research the client’s business and needs. Understand their challenges, goals, and how your solution can help. Tailoring your proposal to their specific situation makes it more relevant and compelling.

Business Proposal Structure

A clear structure is crucial. Include these sections:

• Title Page: Title of the report, author(s), and date of submission.
• Table of Contents: List of document sections with page numbers.
• Executive Summary: Brief overview of main report points.
• Introduction: Opening section outlining purpose and scope.
• Problem Statement: Description of the issue to be addressed.
• Proposed Solution: Suggested method for resolving the identified problem.
• Qualifications: Relevant skills and experiences for a specific role.
• Timeline: Schedule outlining key project milestones and deadlines.
• Pricing: Cost structure for goods or services offered.
• Terms & Conditions: Legal requirements and rules for product or service use.
• Conclusion: Final section summarizing key findings and outcomes. Accurate summaries from your documents in seconds Try Qunio now!

Executive Summary

The executive summary provides a snapshot of your proposal. Summarize the client’s problem, your proposed solution, and why you’re the best choice. Keep it concise and engaging to capture the client’s interest from the start.

Detail the Problem and Solution

In the Problem Statement , clearly outline the client’s issues. Use data if possible to back up your points. Then, in the Proposed Solution section, explain how your product or service addresses these problems. Highlight the benefits and unique aspects of your solution.

Showcase Your Qualifications

In the Qualifications section, build credibility by showcasing your expertise. Include your company’s background, relevant experience, case studies, and testimonials. Demonstrating a proven track record helps establish trust.

Provide a Clear Timeline

Outline the project stages and expected completion dates in the Timeline section. A clear and realistic timeline reassures the client that you can deliver results on time.

Break Down the Pricing

In the Pricing section, provide a detailed breakdown of costs. Transparency is key. Offering different pricing options can give the client flexibility and improve your chances of acceptance.

Specify Terms and Conditions

Clearly outline the legal aspects in the Terms and Conditions section. Include payment terms, confidentiality agreements, and other contractual details. Ensure this section is straightforward to avoid any misunderstandings.

Strong Closing

In the Conclusion , reiterate why your solution is the best choice. Summarize the key points of your proposal and include a call to action, encouraging the client to take the next step, such as signing the contract or scheduling a meeting. Accurate summaries from your documents in seconds Try Qunio now!

• Proofread : Ensure your proposal is free from errors.
• Professional Formatting : Use a clean, branded layout.
• Be Concise : Keep your language clear and straightforward.

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How to Prepare and Write the Perfect Business Plan for Your Company Here's how to write a business plan that will formalize your company's goals and optimize your organization.

By Matthew McCreary May 5, 2021

Are you preparing to start your own business but uncertain about how to get started? A business plan ought to be one of the first steps in your entrepreneurial journey because it will organize the ideas that have been spinning around in your brain and prepare you to seek funding, partners and more.

What is a business plan?

A business plan is a detailed document that outlines a company's goals and how the business, well, plans to achieve those goals over the next three or more years. It helps define expected profits and challenges, providing a road map that will help you avoid bumps in the road.

Stever Robbins writes in an Entrepreneur article titled, "Why You Must Have a Business Plan," that a business plan "is a tool for understanding how your business is put together…. Writing out your business plan forces you to review everything at once: your value proposition, marketing assumptions, operations plan, financial plan and staffing plan." But, a business plan is about more than just reviewing the past state of your business or even what your business looks like today.

Robbins writes that a well-written business plan will help you drive the future by "laying out targets in all major areas: sales, expense items, hiring positions and financing goals. Once laid out, the targets become performance goals."

The business plan can help your company attract talent and funding, because when prospects ask about your business, you already have an articulated overview to offer them. How they react can allow you to quickly understand how others see your business and pivot if necessary.

What should you do before you write your business plan?

It might sound redundant, but you actually need to plan your business plan. Business plans can be complicated, and you'll be held accountable for the goals you set. For example, if you plan to open five locations of your business within the first two years, your investors might get angry if you only manage to open two.

That's why it's essential that, before writing your business plan, you spend some time determining exactly which objectives are essential to your business. If you're struggling to come up with a list of goals on your own, Entrepreneur article "Plan Your Business Plan" offers some questions you can ask yourself to spark some inspiration.

How determined am I to see this venture succeed?

Am I willing to invest my own money and work long hours for no pay, sacrificing personal time and lifestyle, maybe for years?

What's going to happen to me if this venture doesn't work out?

If it does succeed, how many employees will this company eventually have?

What will be the business's annual revenue in a year? What about in five years?

What will be the company's market share in that amount of time?

Will the business have a niche market, or will it sell a broad spectrum of goods and services?

What are my plans for geographic expansion? Should it be local or national? Can it be global?

Am I going to be a hands-on manager, or will I delegate a large proportion of tasks to others?

If I delegate, what sorts of tasks will I share? Will it be sales, technical work or something else?

How comfortable am I taking direction from others? Can I work with partners or investors who demand input into the company's management?

Is the business going to remain independent and privately owned, or will it eventually be acquired or go public?

It's also essential to consider your financial goals. Your business might not require a massive financial commitment upfront, but it probably will if you're envisioning rapid growth. Unless you're making your product or service from scratch, you'll have to pay your suppliers before your customers can pay you, and as "Plan Your Business Plan" points out, "this cash flow conundrum is the reason so many fast-growing companies have to seek bank financing or equity sales to finance their growth. They are literally growing faster than they can afford."

How much financing will you need to start your business? What will you be willing to accept? If you're desperate for that first influx of cash, you might be tempted to accept any offer, but doing so might force you to either surrender too much control or ask investors for a number that's not quite right for either side.

These eight questions can help you determine a few financial aspects of your planning stages:

What initial investment will the business require?

How much control of the business are you willing to relinquish to investors?

When will the business turn a profit?

When can investors, including you, expect a return on investment?

What are the business's projected profits over time?

Will you be able to devote yourself full-time to the business?

What kind of salary or profit distribution can you expect to take home?

What are the chances the business will fail, and what will happen if it does?

You should also consider who, primarily, is going to be reading your business plan, and how you plan to use it. Is it a means of raising money or attracting employees? Will suppliers see it?

Lastly, you need to assess the likelihood of whether you actually have the time and resources to see your plan through. It might hurt to realize the assumptions you've made so far don't actually make a successful business, but it's best to know early on, before you make further commitments.

Related: Need a Business Plan Template? Here Is Apple's 1981 Plan for the Mac.

How to Write a Business Plan

Once you've worked out all the questions above and you know exactly what goals you have for your business plan, the next step is to actually write the darn thing. A typical business plan runs 15 to 20 pages but can be longer or shorter, depending on the complexity of the business and the needs of your venture. Regardless of whether you intend to use the business plan for self-evaluation or to seek a seven-figure investment, it should include nine key components, many of which are outlined in Entrepreneur 's introduction to business plans:

1. Title page and contents

Presentation is important, and a business plan should be presented in a binder with a cover that lists the business's name, the principals' names and other relevant information like a working address, phone number, email and web address and date. Write the information in a font that's easy to read and include it on the title page inside, too. Add in the company logo and a table of contents that follows the executive summary.

2. Executive summary

Think of the executive summary as the SparkNotes version of your business plan . It should tell the reader in as few words as possible what your business wants and why. The executive summary should address these nine things:

The business idea and why it is necessary. (What problem does it solve?)

How much will it cost, and how much financing are you seeking?

What will the return be to the investor? Over what length of time?

What is the perceived risk level?

Where does your idea fit into the marketplace?

What is the management team?

What are the product and competitive strategies?

What is your marketing plan?

What is your exit strategy?

When writing the executive summary, remember that it should be somewhere between one-half page to a full page. Anything longer, and you risk losing your reader's attention before they can dig into your business plan. Try to answer each of the questions above in two or three sentences, and you'll wind up with an executive summary that's about the right length.

Related: First Steps: Writing the Executive Summary of Your Business Plan

3. Business description

You can fill anywhere from a few paragraphs to a few pages when writing your business description, but try again to keep it short, with the understanding that more sections will follow. The business description typically starts with a short explanation of your chosen industry, including its present outlook and future possibilities. Use data and sources (with proper footnotes) to explain the markets the industry offers, along with the developments that will affect your business. That way, everyone who reads the business description, particularly investors, will see that they can trust the various information contained within your business plan.

When you pivot to speaking of your business, start with its structure. How does your business work? Is it retail, service-oriented or wholesale? Is the business new or established? Is the company a sole proprietorship, partnership or corporation? Who are the principals and who are your customers? What do the distribution channels look like, and how can you support sales?

Next, break down your business's offerings. Are you selling a physical product, SaaS or a service? Explain it in a way that a reader knows what you're planning to sell and how it differentiates itself from the competition (investors call this a Unique Selling Proposition, or USP, and it's important that you find yours). Whether it's a trade secret or a patent, you should be specific about your competitive advantage and why your business is going to be profitable. If you plan to use your business plan for fundraising, you can use the business description section to explain why new investments will help make the business even more profitable.

This, like everything else, can be brief, but you can tell the reader about your business's efficiency or workflow. You can write about other key people within the business or cite industry experts' support of your idea, as well as your base of operations and reasons for starting in the first place.

4. Market strategies

Paint a picture about your market by remembering the four Ps: product, price, place and promotion.

Start this section by defining the market's size, structure and sales potential. What are the market's growth prospects? What do the demographics and trends look like right now?

Next, outline the frequency at which your product or service will be purchased by the target market and the potential annual purchase. What market share can you possibly expect to win? Try to be realistic here, and keep in mind that even a number like 25% might be a dominant share.

Next, break down your business's plan for positioning, which relates to the market niche your product or service can fill. Who is your target market, how will you reach them and what are they buying from you? Who are your competitors, and what is your USP?

The positioning statement within your business plan should be short and to the point, but make sure you answer each of those questions before you move on to, perhaps, the most difficult and important aspect of your market strategy: pricing.

In fact, settling on a price for your product or service is one of the most important decisions you have to make in the entire business plan. Pricing will directly determine essential aspects of your business, like profit margin and sales volume. It will influence all sorts of areas, too, from marketing to target consumer.

There are two primary ways to determine your price: The first is to look inward, adding up the costs of offering your product or service, and then adding in a profit margin to find your number. The second is called competitive pricing, and it involves research into how your competitors will either price their products or services now or in the future. The difficult aspect of this second pricing method is that it often sets a ceiling on pricing, which, in turn, could force you to adjust your costs.

Then, pivot the market strategies section toward your distribution process and how it relates to your competitors' channels. How, exactly, are you going to get your offerings from one place to the next? Walk the reader step by step through your process. Do you want to use the same strategy or something else that might give you an advantage?

Last, explain your promotion strategy. How are you going to communicate with your potential customers? This part should talk about not only marketing or advertising, but also packaging, public relations and sales promotions.

Related: Creating a Winning Startup Business Plan

5. Competitive analysis

The next section in your business plan should be the competitive analysis, which helps explain the differences between you and your competitors … and how you can keep it that way. If you can start with an honest evaluation of your competitors' strengths and weaknesses within the marketplace, you can also provide the reader with clear analysis about your advantage and the barriers that either already exist or can be developed to keep your business ahead of the pack. Are there weaknesses within the marketplace, and if so, how can you exploit them?

Remember to consider both your direct competition and your indirect competition, with both a short-term and long-term view.

6. Design and development plan

If you plan to sell a product, it's smart to add a design and development section to your business plan. This part should help your readers understand the background of that product. How have the production, marketing and company developed over time? What is your developmental budget?

For the sake of organization, consider these three aspects of the design and development plan:

Product development

Market development

Organizational development

Start by establishing your development goals, which should logically follow your evaluation of the market and your competition. Make these goals feasible and quantifiable, and be sure to establish timelines that allow your readers to see your vision. The goals should address both technical and marketing aspects.

Once the reader has a clear idea of your development goals, explain the procedures you'll develop to reach them. How will you allocate your resources, and who is in charge of accomplishing each goal?

The Entrepreneur guide to design and development plans offers this example on the steps of producing a recipe for a premium lager beer:

Gather ingredients.

Determine optimum malting process.

Gauge mashing temperature.

Boil wort and evaluate which hops provide the best flavor.

Determine yeast amounts and fermentation period.

Determine aging period.

Carbonate the beer.

Decide whether or not to pasteurize the beer.

Make sure to also talk about scheduling. What checkpoints will the product need to pass to reach a customer? Establish timeframes for each step of the process. Create a chart with a column for each task, how long that task will take and when the task will start and end.

Next, consider the costs of developing your product, breaking down the costs of these aspects:

General and administrative (G&A) costs

Marketing and sales

Professional services, like lawyers or accountants

Miscellaneous costs

Necessary equipment

The next section should be about the personnel you either have or plan to hire for that development. If you already have the right person in place, this part should be easy. If not, then this part of the business plan can help you create a detailed description of exactly what you need. This process can also help you formalize the hierarchy of your team's positions so that everyone knows their roles and responsibilities.

Finish the development and design section of your business plan by addressing the risks in developing the product and how you're going to address those risks. Could there be technical difficulties? Are you having trouble finding the right person to lead the development? Does your financial situation limit your ability to develop the product? Being honest about your problems and solutions can help answer some of your readers' questions before they ask them.

Related: The Essential Guide to Writing a Business Plan

7. Operations and management plan

Want to learn everything you'll ever need to know about the operations and management section of your business plan, and read a real, actual web article from 1997? Check out our guide titled, "Writing A Business Plan: Operations And Management."

Here, we'll more briefly summarize the two areas that need to be covered within your operations and management plan: the organizational structure is first, and the capital requirement for the operation are second.

The organizational structure detailed within your business plan will establish the basis for your operating expenses, which will provide essential information for the next part of the business plan: your financial statements. Investors will look closely at the financial statements, so it's important to start with a solid foundation and a realistic framework. You can start by dividing your organizational structure into these four sections:

Marketing and sales (including customer relations and service)

Production (including quality assurance)

Research and development

Administration

After you've broken down the organization's operations within your business plan, you can look at the expenses, or overhead. Divide them into fixed expenses, which typically remain constant, and variable, which will change according to the volume of business. Here are some of the examples of overhead expenses:

Maintenance and repair

Equipment leases

Advertising and promotion

Packaging and shipping

Payroll taxes and benefits

Uncollectible receivables

Professional services

Loan payments

Depreciation

Having difficulty calculating what some of those expenses might be for your business? Try using the simple formulas in "Writing A Business Plan: Operations And Management."

8. Financial factors

The last piece of the business plan that you definitely need to have covers the business's finances. Specifically, three financial statements will form the backbone of your business plan: the income statement, the cash-flow statement and balance sheet . Let's go through them one by one.

The income statement explains how the business can make money in a simple way. It draws on financial models already developed and discussed throughout the business plan (revenue, expenses, capital and cost of goods) and combines those numbers with when sales are made and when expenses are incurred. When the reader finishes going through your income statement, they should understand how much money your company makes or loses by subtracting your costs from your revenue, showing either a loss or a profit. If you like, you or a CPA can add a very short analysis at the end to emphasize some important aspects of the statement.

Second is the cash-flow statement, which explains how much cash your business needs to meet its obligations, as well as when you're going to need it and how you're going to get it. This section shows a profit or loss at the end of each month or year that rolls over to the next time period, which can create a cycle. If your business plan shows that you're consistently operating at a loss that gets bigger as time goes on, this can be a major red flag for both you and potential investors. This part of the business plan should be prepared monthly during your first year in business, quarterly in your second year and annually after that.

Our guide on cash-flow statements includes 17 items you'll need to add to your cash-flow statement.

Cash. Cash on hand in the business.

Cash sales . Income from sales paid for by cash.

Receivables. Income from collecting money owed to the business due to sales.

Other income. The liquidation of assets, interest on extended loans or income from investments are examples.

Total income. The sum of the four items above (total cash, cash sales, receivables, other income).

Material/merchandise . This will depend on the structure of your business. If you're manufacturing, this will include your raw materials. If you're in retail, count your inventory of merchandise. If you offer a service, consider which supplies are necessary.

Direct labor . What sort of labor do you need to make your product or complete your service?

Overhead . This includes both the variable expenses and fixed expenses for business operations.

Marketing/sales . All salaries, commissions and other direct costs associated with the marketing and sales departments.

Research and development . Specifically, the labor expenses required for research and development.

General and administrative expenses. Like the research and development costs, this centers on the labor for G&A functions of the business.

Taxes . This excludes payroll taxes but includes everything else.

Capital. Required capital for necessary equipment.

Loan payments. The total of all payments made to reduce any long-term debts.

Total expenses. The sum of items six through 14 (material/merchandise, direct labor, overhead, marketing/sales, research and development, general and administrative expenses, taxes, capital and loan payments).

Cash flow. Subtract total expenses from total income. This is how much cash will roll over to the next period.

Cumulative cash flow . Subtract the previous period's cash flow from your current cash flow.

Just like with the income statement, it's a good idea to briefly summarize the figures at the end. Again, consulting with a CPA is probably a good idea.

The last financial statement is the balance sheet. A balance sheet is, as our encyclopedia says, "a financial statement that lists the assets, liabilities and equity of a company at a specific point in time and is used to calculate the net worth of a business." If you've already started the business, use the balance sheet from your last reporting period. If the business plan you wrote is for a business you hope to start, do your best to project your assets and liabilities over time. If you want to earn investors, you'll also need to include a personal financial statement. Then, as with the other two sections, add a short analysis that hits the main points.

9. Supporting documents

If you have other documents that your readers need to see, like important contracts, letters of reference, a copy of your lease or legal documents, you should add them in this section.

Related: 7 Steps to a Perfectly Written Business Plan

What do I do with my business plan after I've written it?

The simplest reason to create a business plan is to help people unfamiliar with your business understand it quickly. While the most obvious use for a document like this is for financing purposes, a business plan can also help you attract talented employees — and, if you share the business plan internally, help your existing employees understand their roles.

But it's also important to do for your own edification, too. It's like the old saying goes, "The best way to learn something is to teach it." Writing down your plans, your goals and the state of your finances helps clarify the thoughts in your own mind. From there, you can more easily lead your business because you'll know whether the business is reaching the checkpoints you set out to begin with. You'll be able to foresee difficulties before they pop up and be able to pivot quickly.

That's why you should continue to update your business plan when the conditions change, either within your business (you might be entering a new period or undergoing a change in management) or within your market (like a new competitor popping up). The key is to keep your business plan ready so that you don't have to get it ready when opportunity strikes.

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How to write consulting proposals like mckinsey (with examples).

Table of contents

• What is a consulting proposal? 
• Structure of a consulting proposal 

Parts of a consulting proposal

Tips for writing an effective proposal, use a template to strengthen your proposal, frequently asked questions.

A significant part of your success in consulting comes down to your ability to create high-quality proposals. The top management consulting firms know this and have all optimized their proposal writing methodology for maximum effectiveness.

A great consulting proposal requires the right content and structure. This post aims to teach you how to get both right so you can craft effective proposals with a high win rate.  Drawing from our consulting background — with a combined experience of creating 500+ consulting proposals — we're here to share our proven methodologies with you. 

What is a consulting proposal? 

A consulting proposal is a slide deck or text document sent to a potential client that outlines a specific project's objective, scope, cost, and timeline. Like a sales pitch to a prospect, a consulting proposal highlights the problem your prospective client is facing and positions you, the consultant, as the solution.  

Before writing the proposal

The first step in any consulting engagement is typically an initial meeting or call with the prospective client to understand their business, industry, and specific challenges and goals. 

Half of your proposal work is asking the right questions in your early conversations with the client. Getting this right will make writing the proposal easy. You need to figure out the problem, why it's important, why they can't solve it themselves, and why they need you to solve it.

Structure of a consulting proposal 

Proposals will have slight variations across different firms/projects, but proposals from McKinsey, BCG, and Bain typically consist of the following elements (in this order): 

Sections 2, 3, and 4 comprise your proposal's core. This is where you demonstrate you understand the client and their market, situation, challenges, and goals - and present them with a clear and compelling way forward to achieve the objectives. 

These three sections should follow McKinsey's  Situation-Complication-Resolution structure  (SCR), which offers a simple and compelling story structure. 

Let's go through each of the sections one by one:  

1. Executive Summary

A one-page summary repeating the main points covered in sections 2, 3 and 4. Again, we recommend you structure your summary using the Situation-Complication-Resolution framework  ( See:   How to Write an Effective Executive Summary ) . 

2. Background and context  (situation)

This section is where you create trust   by demonstrating that you've understood the client, their situation, and their market.  If your proposal is a response to an RfP (a request-for-proposal) then this is also the section where you play back the request in your own words to show that you've probably understand the assignment.

Ask yourself:

• What are their business goals? 
• What do they want to accomplish with this project, if relevant?
• How is their current performance?
• What have they done so far? 
• Why are we in this process?
• Who are the decision-makers?

You do not necessarily need to explicitly state all this in slides, but make sure any background or situational slides you do include are correct and to-the-point around the specific problem/opportunity area you'll later cover in your proposal.

3. What is the problem?  (complication)

Once you've set the background and context, you want to highlight what has/will change, given a threat, challenge, or opportunity.  Ask yourself:

• Why is the current situation not sustainable (either because a threat will become a reality or an opportunity cannot be grabbed)?
• What are the key barriers between the client's desired future state and current situation? 
• What is the business impact of leaving challenges unresolved? 

You should clearly outline the complication and expand on the underlying issues. Include your best estimate on the impact if nothing is done. 

The ability to do this again showcases to the client that you understand their business and its dynamics and further builds trust that whatever solution you propose will work.

4. Objectives of the project and proposed solution  (resolution)

Clearly articulate the objective of the project and your proposed solution. When you lay out the solution, we recommend you follow the  Pyramid Principle  and start with the high-level components or overall main answer. 

Once you've presented the high-level solution, you want to start detailing what is included under each solution element, showing which underlying questions or hypotheses will be investigated and which specific methods will be used to get to an answer.

Consider ending this section with a short business case that estimates the measurable impact the customer can expect in return for their investment in the project. 

Example A simplified example based on a real-life Bain proposal to UC Berkeley - illustrating the situation-complication-resolution storyline:

Background and context  (situation) Like many universities, UC Berkeley has recently come under significant financial pressure. Inconsistent and declining funding from the State of California and rising operating costs have led to a budgeted shortfall of $145 million for the FY 2008-09. 

What is the problem?  (complication) UC Berkeley has already taken several dramatic steps to reduce the budget shortfall - including increases to student fees, faculty hiring slowdown, staff hiring freeze, and furloughs. 

These steps have solved the problem in the short term, but the cost reductions are not sustainable on a prolonged basis (as shown in this forecast). 

Accordingly, UC Berkeley seeks to improve the efficiency and effectiveness of its operations and organization so that the $145 million budget gap can be reduced. 

Objectives of the project and proposed solution  (resolution) The primary objective of this project is to identify options to reduce the University's addressable operating cost structure by as much as $80 million to $100 million (vs. 2022-23 baseline costs) through more efficient and effective operations.

To achieve this, we will deliver a gross list of cost-spanning options to select from spanning these cost-areas: Labor costs, processes, policies, organizational structures, and systems. 

Experience has shown us that the most important factors... (continues)

5. Project approach/details

You have now demonstrated that you understand the client and their situation, challenges, and objectives - and you have outlined a clear and compelling way to solve the challenge. In this section, you lay out the project details covering the following sub-sections:

Approach What steps will you go through to arrive at the solution or recommendation? Break down the projects into steps or work streams and unpack the activities and goals for each of them. Start with a high-level overview. 

Example  We propose a five-stage approach to develop options to choose from in making operating cost reduction:

• Build baseline
• Identify opportunities
• Design options
• Validate and select options
• Communications and stakeholder management

The goals, activities, and timing for each stage are outlined in [Figure 1] below and are described in more detail in the following slides...

Deliverables Describe what each project deliverable will contain, when it will be delivered, and the acceptance criteria.  Examples:

• Business cases for 15 high-potential cost reduction and organizational restructuring opportunities, including implementation options
• Targeted messages and communication strategy for each stakeholder segment
• Marketplace MVP operational with priority features    

Scope Clearly define the scope of the project. What areas of the business or opportunity will you investigate, and how deep will you go? (E.g. customer segments X & Y in market Z).

Project plan & timeline Give a more detailed project roadmap with work stream/activity breakdowns showing sub-activities, timeline, and key milestones, as well as key meetings or decision points (especially those involving senior stakeholders).

Project timeline slide example. Slideworks template

Project management & team What team members will be on the project, and what are their roles and high-level experience? Team members are often divided into the following groups: Engagement management, project management, project team, and expert advisory.   

Project team slide example. Slideworks template

Project governance & client resources What client stakeholders will be involved in the project - project management, steering group members, expert input, etc. - and how much of their time is needed (this provides both an indication of the disruption level and allows the client to factor in the time and costs associated with their own resource need).

Project organization slide example. Slideworks template

Risks & mitigations Depending on the type of project you might include an overview of key project risks and how to mitigate them. Consider ranking your identified risk areas according to "likelihood of risk" and "impact of risk". 

Including risks and mitigations once again shows the client that you've thought things through and gives them assurance that you can solve this problem.

Craft your consulting proposals with McKinsey's insights.

6. Costing/Pricing

There are two common ways of doing pricing: Fixed fees or hourly rates.

If you do project-based pricing, you should break down the costs in a table according to sub-deliverables or work streams. If you do hourly pricing, you should break out the hourly rates for each category of consultants working on the project (Senior consultant, 80% allocation for 8 weeks at xx $/hour, etc.). 

McKinsey, BCG, and Bain, typically charge their clients a fixed fee on a project basis. The fee size is based on the project's duration, team size, and the required expertise level, rather than the hours an individual may work. 

In the consulting industry, the exact pricing of engagements is a closely guarded secret. However, now and then, a government RfP response finds its way into the public domain. One example is this 16-page McKinsey proposal on COVID-19 response to the State of New Jersey. In this proposal, you can see how McKinsey has broken up their fixed fee according to work streams, the number of consulting staff assigned to each one, and the project duration. 

Pricing breakdown example from McKinsey proposal

Hourly price breakdown example from Deloitte proposal

Other   expenses  

A list or note of approved expenses (like travel, food, accommodation, etc.) might be added. These costs are not included in your project price, but you will incur them during the execution of your work. Typically, these costs are billed to the client "at cost". You need to address reimbursable expenses in your proposal. Otherwise, don't expect to get reimbursed for them.

7. Why [your firm]?

Use this section to reinforce your expertise in solving challenges similar to those your prospective client faces. What makes you uniquely qualified for this project?  Consider including the following slides/sections:

• We have successfully managed many projects of this size, scale, and complexity in [client industry]
• We bring access to unequaled expertise and insights
• We deliver results (as proven by these cases)
• This list of past clients can be contacted for reference  

8. Appendices

Appendices will include relevant supporting material and additional details on key points.

• General introduction to [Your firm].
• Detailed CVs for the project team.
• Additional reference cases.
• Relevant details about methods and tools which you propose to use during the project.
• Detailed terms and conditions if there is no framework agreement with the customer.

Get practical examples to complement the techniques in How to Write Consulting Proposals Like McKinsey.

Always put client needs first

A common mistake is to write proposals with a 'your firm-first perspective' instead of a 'client-first perspective'. A good business proposal is remembering  it's all about the client . Resist the temptation to write about yourself in the proposal.

A good proposal is short, relevant, and actionable

Short:  No one wants to read 100 pages, especially when it's not about them. Use the pyramid principle (say the most important things first) and keep all the details in an appendix. Try and limit the main proposal deck to 20-30 slides or 10-15 pages. 

Write the proposal in simple language that your client understands. Keep it free of consulting jargon and acronyms to the extent possible. 

Relevant:  Most people don't care how the sausage is made. Take out everything that doesn't directly relate to the client's situation/problem or solution you're proposing. Prune out anything that is a departure from the central problem. 

Actionable:  The clearer the path forward, the easier it is to say yes. Don't burden the customer by making them guess the next step or resources needed. Make the ask on money, people, and time clear.

As you know by now, an effective consulting proposal requires both the right content and structure.  And while you cannot write a proposal based on a template and just make a few tweaks here and there, a template can speed up the process, ensure you follow the structure, and inspire you on how specific types of slides can be designed and structured. 

Our Consulting Proposal Template for PowerPoint follows the methodology presented in this post and includes 244 template slides created by ex-McKinsey & BCG consultants as well as a full-length (winning) consulting proposal sent to a Fortune500 company in 2023.  

How long should a consulting proposal be?

Proposals can be for sole source or competitive projects. They can be based on a casual conversation or on a formal Request for Proposals (RFP). As a result, they vary from short letter proposals (3–12 pages) to full-size proposals (20–80 slides). Some Federal Government contracts may run to 150 pages or more. 

What format should the proposal be? 

The proposal format will typically be a condensed slide deck unless the client specifically requests a plain text document. Final proposals are always shared as PDFs. 

Often, consultants will be asked to pitch the proposal after submitting it. A well-structured presentation will help here - and it is a lot easier to pitch than a text-document. 

Proposals vs. LOP and SOW?

Proposals are sometimes called Letter of Proposal (LOP) or Statement of Work (SoW). Different names, same content. 

Can this proposal structure be used for an RfP? 

Where there is an RfP, proposal writers should always follow the RfP instructions and evaluation criteria regarding the specific format and areas to emphasize. E.g., If an RfP requests specific pricing information or breakdowns, you should always follow these instructions.

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8 Critical Questions Every Business Proposal Must Answer

Sooner or later you’re going to write a business proposal, either because someone asked for it, or because you want to make a persuasive case that leads to a sale. Where do you start? What should you include? What are the rules? Since one of the goals of a business proposal is to persuade a potential customer to do business with you, it is important that you answer all questions.

Notice I use the word "persuade."

Not only are you trying to drum up business by introducing yourself to potential customers, but you are also trying to make a first and last impression on your prospect. So you want to ensure the proposal does its job- acting as a formal and much more dignified selling tool.

Let’s First Understand the Basics

There’s a lot of confusion on what a business proposal actually entails, so before we get to the questions your proposal must answer, let’s first learn the basics of a business proposal.

A business proposal is a document sent to a prospective client, outlining the products or services you’re offering and explaining why you’re the best. At the bare minimum, its primary objective is to provide a compelling solution to a problem faced by a client ( https://www.inc.com/encyclopedia/business-proposals.html )

That being said, a successful proposal usually results in a contract. But because there is usually a significant distinction between a proposal and a contract, your proposal should be laid out in a question and answer format.

However, there is an exception. If your proposal is in response to an RFP or RFQ, it may contain formatting instructions that you have to follow. In this case, a question and answer format may not be practical ( https://www.clientpoint.net/types-of-business-proposals/ ).

Key Questions to Answer in Your Proposal

Writing a business proposal is easy- there are no set rules or pre-requisites for format, presentation, length or even subject matter. But finding the right answers to the right questions is critical if you want to attract sufficient attention from a potential client. We compiled a list of the typical questions your business proposal must answer:

1. Who are you and What Are Your Qualifications?

Go ahead, brag a bit- this is the section where you get to convince your potential customer that you are the most qualified person for the job. You can start by presenting your company and mission in a way that relates to your client’s needs. Feel free to include a brief story that will give your customer a feel for your brand and help build trust. The function of this section is to grab the attention of the customer so he will read the whole proposal and not just skip to the pricing details, like most clients do.

2. What Are the Client’s Problems?

The secret behind writing a winning business proposal is understanding what the customer’s problems are and offering the best solution to these challenges. This part is paramount because you cannot expect to seal a deal if you don’t know what the client’s problems are ( https://www.clientpoint.net/ultimate-business-proposal-checklist/ ). Most customers will decide whether they are going to read the rest of the proposal just by going through this section. So take this opportunity to show your client that you fully understand their needs and are aware of the issue they want to solve.

3. How Do You Plan To Solve the Problems?

This is the million dollar question your proposal has to answer. In this segment, you need to outline how you’re going to tackle the project from the beginning to the end. Get into the nitty-gritty of the steps you’ll take, highlighting anything notable that sets you apart from the competition. Ensure that you make it realistic with accurate statistics and sound projections, so the client knows exactly what they are agreeing to upfront. This section simply speaks into the details the project will be responsible for, and addresses each and every need in the most comprehensive way.

4. How Long Will Your Proposed Project Take?

Be clear with your prospective client, how long it will take for you to complete the project. Here, you should ensure that you set out realistic expectations so that both of you are on the same page right from the onset. While you might be tempted to underquote the time frame, it’s usually not a good idea. Don’t promise what you may not deliver. If you’re offering a product, time frames might not be applicable, so feel free to omit them. The format of a proposal is usually very flexible, so tailor it to suit your business.

5. How Much Will it Cost?

Cost is a fundamental component of your business proposal. In fact, it’s almost certainly what the client is going to spend most time combing through. How you outline this part depends entirely on what solutions you’re offering. An itemized fee summary may be sufficient if the solution proposed will serve for a short period; otherwise, a fee schedule for periodic milestones may be appropriate if the solution will serve an extended period. If there are any legal/contractual issues to be addressed, such as licensing or permits, include this information here.

6. What is the Return on Investment?

This is the section many people miss. Maybe, it’s assumed that the client will immediately see the return on investment, but that’s highly unlikely. A proposal is your final sell- so don’t be afraid to detail to your prospect what they have to gain by choosing your business. If possible, spell it out so that the client can fully comprehend how your solution will either make money or save money. Being able to demonstrate the return on investment adequately, can almost win you a deal majority of the time ( https://www.entrepreneur.com/encyclopedia/return-on-investment-roi ).

7. Who Will Work on the Project?

For you to clinch a deal, the people you plan to use cannot be left to speculation. This is the section where you get to some level of detail explaining the team members behind the project. Start by identifying each team member and writing a short resume for each. This will not only help the client know the team, but the individual members as well ( https://www.inc.com/geoffrey-james/how-to-write-a-winning-proposal.html ). However, be careful to keep the jargon to a minimum. You want the client to have a clear and concise document. Perhaps, the best way to present this part is to use bullet points.

8. What Is Your Company’s Experience with Similar Projects?

This is your final chance to leave your client with a testimonial from a customer who has had a favorable outcome with your solution. The good thing about testimonials is that they have the power to influence even the most hesitant customers. Let’s call them the trust signals of a proposal. With a testimonial, you have the chance to make a strong final impression on the customer. Not only will it double your chances of closing, but you can as well be prepared to make your potential client smile and then give you a call.

Happy proposal writing.

___________________________________

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If you really want your business proposals, quotes and contracts to stand out and give you the best chance at winning new clients, use ClientPoint Software. It makes creating and formatting professional business proposals, quotes, and contracts fast and easy.  Click here to get a free demo of ClientPoint Software or call us at 888-972-7375 .

Click here to read a case study of how ClientPoint Software helped a business double sales.

Related Readings

The anatomy of a one call close, indiegogo.com, how to correctly use indiegogo.com to raise money (crowdfund) your new business idea, an explanation of the different types of business proposals.

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What Is a Business Plan?

A business plan is a written document that outlines your business. It covers everything from your business history and current status to your sales and marketing strategy and how you plan on turning a profit. A business plan is critical for all businesses, no matter how small or large. Without one, it's difficult to track your progress and make adjustments as needed. Plus, if you're ever looking for investors or loans, a strong business plan will give them the confidence they need to support your venture.

Why do I need a business plan?

A business plan is important because it gives you a road map to follow as you start and grow your business. It can help you attract new investors and customers, and keep everyone on track as you move forward.

How often should I update my business plan?

You should update your business plan as your business grows and changes. At a minimum, you should review and revise it annually. However, you may need to make more frequent updates if you're experiencing rapid growth or making major changes to your business.

What are the three main purposes of a business plan?

The three main purposes of a business plan are to:

- Help you get a clear picture of your business and what you want it to achieve

Here are a few tips to help you write a successful business plan:

- Do your research. Before you start writing, find out as much as you can about your industry and what it takes to start and grow a successful business in that field.

- Be realistic. Don't try to inflate your numbers or make unrealistic predictions in an effort to make your business look more successful than it is. Investors will see through this and it will damage your credibility.

- Keep it concise. No one wants to read a 100-page business plan. Try to keep your plan to 10 pages or less, with clear and concise language.

- Get help if you need it. If you're not sure where to start, there are plenty of business plan templates and examples available online. You can also hire a professional business plan writer to get the job done for you.

What are some common mistakes to avoid when writing a business plan?

Here are a few common mistakes to avoid when writing a business plan:

- Not doing your research. Before you start writing, find out as much as you can about your industry and what it takes to start and grow a successful business in that field.

- Making unrealistic predictions. Don't try to inflate your numbers or make unrealistic predictions in an effort to make your business look more successful than it is. Investors will see through this and it will damage your credibility.

- Overcomplicating things. No one wants to read a 100-page business plan. Try to keep your plan to 10 pages or less, with clear and concise language.

- Not getting help when you need it. If you're not sure where to start, there are plenty of business plan templates and examples available online.

Types of business plans:

There are two types of business plans: traditional and lean startup.

Traditional business plans

A traditional business plan is a document that typically includes detailed information about the company's products or services, marketing strategy, management team, financial projections, and more. This type of business plan is often used by banks and other investors to get a better understanding of the company before they provide funding.

Writing a traditional business plan can be a daunting task, but it doesn't have to be. By understanding the structures of traditional business plan s and what should be included in each section, you can make the process much simpler.

A traditional business plan typically includes the following sections:

- The executive summary is the first section of the business plan and it should provide an overview of the main points of the plan.

- The company description is the second section and it should provide more detail about the company, its history, its products or services, and its mission.

- The market analysis is the third section and it should provide information about the target market, the competition, and the market trends.

-The fourth section, sales and marketing strategy, should describe how the company plans to generate sales and grow the business.

-The fifth section, management team, should provide information about the company's management team and its experience.

-The sixth section, financial projections, should provide financial information about the company, such as its revenue, expenses, and profitability.

- The appendix is the last section of the plan and it should include any additional information that would be helpful for understanding the company.

Lean business plans

A Lean business plan or Lean startup business plan is a shorter and simpler version of a traditional business plan. It focuses on the key elements of the company, such as the problem that it solves, the target market, the solution, the business model, and key metrics. This type of business plan is often used by startup companies that want to get a better understanding of their business before they start raising money.

Simple business planning makes writing a plan faster and easier, and helps you get your thoughts down on paper so that you can better understand your business.

To write a lean startup business plan, you'll need to:

-Identify your target market

-Describe your solution

-Explain your business model

-Define your key metrics

-Set your milestones

How should a business plan look?

A good business plan should be:

- Concise: The best business plans are clear, concise, and to the point. They are not overly long or filled with unnecessary fluff.

- Realistic: A good business plan is realistic and achievable. It sets realistic goals and milestones, and it doesn't make promises that can't be kept.

- Flexible: A good business plan is flexible and can be adjusted as the company grows and changes.

- Focused: A good business plan is focused on a specific market or opportunity. It doesn't try to do too much or be all things to all people.

When you're writing a business plan, it's important to keep in mind that the goal is to create a document that will be used to help you run and grow your business. This means that the plan should be clear, concise, and achievable. It should also be flexible so that it can be adjusted as the company grows and changes.

Finally, it should be focused on a specific market or opportunity. By remembering these key points, you can make sure that your business plan is as effective as possible.

How to Write a Solid Business Plan, Step by Step Guide

There are some key steps that all businesses should take when writing a business plan.

1. Define the purpose of the business plan.

2. Research the market and competition.

3. Describe the company and its products or services.

4. Develop a marketing and sales strategy.

5. Create financial projections.

6. Write the executive summary.

7. assemble and organize the plan.

8 Review and revise the plan as needed.

By following these steps, you can be sure that your business plan is comprehensive and well-organized, and that it will effectively communicate your business's goals and objectives.

Challenges you face while writing a detailed business plan

Writing a business plan is not a cup of tea. It includes many tasks like establishing the business’ focus, obtaining funding, and getting new investors. Your business plan is essentially your road map to success. 

It is critical to have a business plan if you are obtaining funds and the difficulty you face depends upon the type of business you have, the size of your business, and the intricacy of your desired result.

It is unique to every business as it tells about:-  

• The current position of your organisation, 
• Overall prospects of your industry(e.g., developing, stagnant or decreasing), 
• How you stand unique among the competitors, 
• What are your predictions for your sales and revenue for the next year, next five years, etc., 
• How will you make your estimation realistic?

For industries like finance, there are additional regulations that have to be included.

The challenges you face while writing a business plan depend upon the type of business you have, the size of your business, and the intricacy of your desired result. However, some key challenges include:

- Getting Started: The most important and difficult part about writing a business plan is getting it started. Until and unless you make a blueprint of how you should strategize it, you will continue messing it up. When you start making a business plan, lock yourself in a room, switch off your phones, and focus.

-  Defining the purpose of the plan:  What is the goal of the business plan? What are you hoping to achieve with it?

- Researching the market and competition: What is the current market landscape? Who are your major competitors?

- Describing the company and its products or services: What does your company do? What are its unique selling points?

- Developing a marketing and sales strategy: How will you generate leads and convert them into customers?

- Writing the executive summary: How do you concisely and effectively communicate the key points of the plan?

- Assembling and organizing the plan: How do you structure the plan so that it is easy to read and understand?

- Reviewing and revising the plan: Is the plan realistic and achievable? Does it need to be updated as the company grows and changes?

- Financial Estimation: It is difficult to estimate the figures on a brand-new concept. There is no roadmap, nobody whom you can follow. Find a similar company and try to measure how they identify their cash flows and make the plan.

- Prove that your business idea is best:  One of the challenging problems in writing a business plan is to prove the investors and lenders that your idea is worth their investments otherwise they won’t take interest in your idea.

- Realistic Business Plans:  You need to be honest about the plans, generally, entrepreneurs’ dream about their business, and when they make a business plan, it challenges their assumptions about the opportunities in their market, its competition, products and growth estimations. That is where they get caught up in defining an executable business plan. Create a strategy that you will actually be working upon not just making castles in the air.

By keeping these challenges in mind, you can ensure that your business plan is as strong as possible.

Is it hard to write a business plan?

The difficulty you face depends upon the type of business you have, the size of your business, and the intricacy of your desired result.

Do I Need a Simple or Detailed Plan?

The type of business plan you need depends on your goals and objectives. If you are seeking funding, you will need a more comprehensive and detailed plan. If you are not seeking funding, a simpler and shorter plan may suffice.

How long does it take to write a business plan?

Again, the answer to this question depends on the type of business you have, the size of your business, and the intricacy of your desired result. A simple plan can be completed in a matter of hours, while a more detailed plan can take days or even weeks to complete. No matter what type of business you have, it is important to take the time to carefully craft a well-thought-out business plan.

Who can make me a business plan?

There are a number of resources available to help you write a business plan. You can hire a professional business plan writer, use a business plan template or software, or even do it yourself.

The 5 toughest things entrepreneurs face when starting a business

1. Coming up with a business idea

2. Researching the market and competition

3. Describing the company and its products or services

4. Developing a marketing and sales strategy

5. Creating financial projections

Are business plans useful?

Business plans can be an invaluable tool for any business, small or large. By taking the time to write a comprehensive and well-organized plan, you can effectively communicate your company's goals and objectives, and make sure that everyone on your team is on the same page.

A business plan can also help you raise money from investors, and keep track of your company's progress over time. Whether you are starting a new business or growing an existing one, a business plan is an essential tool.

By taking the time to research and write a well-thought-out plan, you can increase your chances of success and ensure that your business is on the right track.

8 Tips for Successful Business plan

There are a 8 key pieces that should be included in every successful business plan.

-The company's products or services: Describe the problem that your product or service solves and how it is different from other products or services on the market. Be sure to include information about the features and benefits of your product or service.

-The target market: Describe the people or businesses that you plan to sell your product or service to. Be sure to include information about their needs and how your product or service meets those needs.

-The marketing strategy: Describe how you plan to market your product or service to your target market. Be sure to include information about your sales process, pricing strategy, and promotional activities.

-The management team: Introduce the people who will be responsible for running the day-to-day operations of the business. Be sure to include information about their experience, skills, and education.

-The financial projections: Include detailed financial statements that show how much money you expect to make and spend over the next three years. Be sure to include information about your revenue, expenses, and profits.

-The company's history: Describe the history of the company, including any milestones or accomplishments.

-The risks and challenges: Discuss the risks and challenges that your business faces and how you plan to overcome them.

-The exit strategy: Describe how you plan to exit the business, such as selling it to another company or taking it public.

FAQs on Writing a Business plan

What is the biggest mistake in preparing a business plan.

The biggest mistake is not doing your homework. Make sure you understand your industry, your market, your competition, and your customers before you start writing your business plan.

Do I need a business plan if I'm not seeking funding?

While a business plan is not required if you are not seeking funding, it can still be a valuable tool for any business. A business plan can help you to clarify your goals and objectives, and keep track of your company's progress over time.

Can I use a business plan template?

Yes, there are many business plan templates available online. However, it is important to make sure that the template you choose is appropriate for your industry and business model.

How long should my business plan be?

There is no hard and fast rule for the length of a business plan. However, a good rule of thumb is to keep it as concise as possible. Your goal should be to communicate your company's key points in a clear and concise manner.

What makes a bad business plan?

A bad business plan is one that is either too long or too short, and does not effectively communicate your company's key points. It should also be free of grammar and spelling errors, and should be clear and easy to read.

How can I make my business plan stand out?

One way to make your business plan stand out is to include a cover letter that briefly introduces your company and its products or services. You should also make sure to proofread your business plan carefully, and have someone else read it as well before you submit it.

Why do some business plans fail?

There are many reasons why business plans fail. Sometimes, the company does not do enough research on the market or the competition. Other times, the plan is not well-written or organized. And sometimes, the company simply does not have a viable business model.

You should update your business plan as your company grows and changes. As your business evolves, so too should your business plan. Review and update your plan at least once a year, or more often if needed.

What are the biggest challenges in scaling a business?

The biggest challenges in scaling a business include finding new customers, expanding into new markets, and hiring new employees. As your company grows, you will need to find ways to reach new customers and continue to provide excellent customer service. Additionally, you will need to expand your operations to meet the demands of your growing business. Finally, you will need to hire new employees to support your company's growth.

A business plan is a road map to success and is critical for obtaining funding. A well-written, proofread business plan will make your company more likely to succeed. The biggest challenges in scaling a business include finding new customers, expanding into new markets, and hiring new employees.

With careful planning and execution, you can overcome these challenges and successfully scale your business. By following these tips, you can ensure that your company is well-positioned for growth. By following these tips, you can write a comprehensive and well-organized business plan that will help you achieve your desired results. With a little time and effort, you can put your company on the path to success.

By  The Thrive

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