6 Steps in Writing Business Proposal

1. Gather the Information You Need

This will inform the key elements to include in your proposal and create a more accurate and
effective proposal that results in a closed deal.

Some of the key questions you need to answer before writing your proposal include:

 Who are the buyers?

- The person you met may not be the final decision-maker. Consider who else may be
involved in the process. If possible, ask the prospect to describe their decision-making or
approval process.
 What is the pain point?
- research your competition to identify potential weaknesses or gaps. Ask the prospect
questions about their past experience with similar products or services to identify their
pain points and how you can solve it with your offering.
 Is there a budget?
- Ask the prospect if they have a target price in mind or if there is a budget for the project.
Answering this question will help you avoid wasting time on proposals that have no
chance for profit.
 Is there a deadline?
- Many companies set internal deadlines for purchasing decisions in order to hit
production or launch schedules. They also may be motivated to buy at certain times of the
year. Ask if they have a deadline to help pinpoint the time frame.
 What is your best solution for their problem?
- Determine which of your offerings provides the most benefit based on who the buyers
are, what they need, what their pain points are, and their purchasing schedule.
 What are your costs if the proposal is accepted?
- Calculate the costs, such as labor or materials, you will incur as a result of your
proposal, and estimate the total projected revenue for your company.

2. Define Project Objectives & Scope

It’s important that you know and articulate your objective so that you never lose sight of the
reason you’re writing the proposal.

Know the Objective of Your Business Proposal

To create a proposal objective, ask yourself the following questions:

 What is the purpose of the proposal?-

 What are the needs of your prospect or customer?
 What problems are you solving with your products and services?
  How does your solution solve your customer’s or prospect’s problems?

Example Objective Statement:

The objective of this business proposal is to demonstrate how _________________ can solve the
problem of _________________________ for ______________________________ by
___________________________________________________.

This general objective can be applied in a specific example per the following:

The objective of this business proposal is to demonstrate how Acme Restaurant Group can solve
the problem of high event costs and inconsistent guest experiences for Acme Financial Planners
by creating a partnership where we host all their dinner presentations in major markets we have
locations and they have events.

Outline the Project’s Scope

The scope of the project is the summary of its deliverables and should take features, functions,
tasks, costs, and schedule into consideration.

To outline the project’s scope, answer the following questions:

 Who- Who will do the work, who will manage the work, and who does the customer call
if there is a problem?
 What- What needs to be done or delivered, what will be required to do it, what can the
customer expect, and what will it cost them?
 Where- Where will the work be done, and where will it be delivered?
 When- When will you start, when will key milestones be scheduled, when will the project
be completed, and when is payment due?
 How- How will work be done, how will it be deployed, how will it be managed, how will
you achieve quality assurance and customer satisfaction, how will risks be mitigated, how
long will it take, and how will the work benefit the customer?
 Why- Why have you chosen the approaches and alternatives you have selected, and why
should the customer select you?

3. Estimate Your Labor & Costs

Early on, you want to consider how much the project will cost—and thus, how much to charge
the client.

4. Start Drafting Your Business Proposal

Now it’s time to dive into the actual proposal document. Proposals tend to follow a loose
formula. They start with an introduction that summarizes your business and the project, followed
by a body that fleshes out all the details (including a pricing table, photos, and charts) and a
conclusion that tells the customer how to proceed.

Including the signature page, good business proposals should have between six and seven
sections.

The six sections you should address in your business proposal include:

Section 1: Introduction

Start by introducing your company and mission in a way that relates to your potential client’s
needs. You can include a brief story that gives your client a feel for your brand’s character and
helps build trust. Highlight what distinguishes your company, your accomplishments, credentials,
and any awards.

Section 2: Executive Summary

The executive summary is one of the most important sections in your proposal. This is where you
should present the case for why you are the right company for the job, and give the reader the
takeaway message of the proposal.

Section 3: Table of Contents (optional)

A table of contents can be helpful for longer proposals with lots of details.

Section 4: Body

Once you have presented your overall case in the Executive Summary, you can outline the
specifics of your proposal. This is where you can answer the “who, what, when, where, how, and
why” questions that you identified in step two. Include information on scheduling, logistics, and
pricing. You can use data charts to illustrate key concepts and can also include testimonials from
past clients and a link to your website.

 Include Your Caveats

The body is also where you include caveats or disclaimers about the type of work
you can deliver. This is also known as your terms and conditions, and is one of the most
important parts of your business proposal. It is also one of the trickiest arts to master.
Example Caveat
An example of a caveat might be:
“[Your Company Name] will service all technical issues involving [Your Specialties]. We
reserve the right to charge extra in the implementation of an issue that is not listed
above.”
Section 5: Conclusion

Once you have outlined the details of your proposal, re-emphasize the exceptional results your
company can provide.

Section 6: Appendix

The Appendix is an optional section that you can use to include information that might not fit
well in the body of your proposal.

5. Edit Your Business Proposal

First and foremost: Proofread your proposal before sending it to a prospect.

Second, you need to pay attention to the tone and length of your proposal.

Make Use of the Appendix

Any superfluous information, like testimonials, graphs, and charts, can be moved to the
appendix.

Business Proposal Tone & Language

Make sure you use clear, concise, and simple language that avoids industry jargon and technical
terms.

6. Send Out Your Business Proposal & Follow Up

In the majority of cases, you can send your proposal via an email attachment. It is best to send it
as an attachment rather than within the body of the email to minimize the risk that key details are
lost in a long message chain or cut off when printed or forwarded.

Reference:

Pingrey J. (2019). How to Write a Business Proposal in 6 Steps. Retrieved from

https://fitsmallbusiness.com.