Business Proposals and Plans

What is a business proposal?

What is a Proposal?

 A persuasive message in which the writer

analyzes a problem and recommends a
solution

 The proposal is a way of solving a problem for

the reader or giving a benefit such as
improved safety, increased productivity, or
decreased accidents in the parking lot.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned,
copied or duplicated, or posted to a publicly accessible website, in
whole or in part.
Types of Proposals

 Informal or formal

 Internal or external

 Unsolicited or solicited
Informal Proposals vs. Formal
Proposals
 Informal: letters, memos or email

 Formal: structured formal reports

Unsolicited Business Proposal

 What is an unsolicited business proposal?

 Give me examples of unsolicited business

proposals.
Unsolicited Business Proposal

 Proposals prepared at the writer’s initiative

 Represent an independent analysis of
problems/needs and the creation of possible
solutions.
 Pose special challenges such as ….
Challenges Faced

 Company x does not know whether Company Y

is open to its proposed idea

 Challenge is not only to sell the concept but also

the company

 Needs to be a blend of creativity and persuasion

based on client’s anticipated questions.
Solicited Business Proposals

 Prepared in response to a request

 Solicitation may be face-to-face, in writing,

etc.

 May be external or internal; formal or

informal
Request for Proposal

 Describes a project, product, or service need

 Invites potential suppliers to propose

solutions

 RFP, RFI, RFB, RFQ

RFP content
 Introduction
 Project/Product/Service description
 Vendor requirements
 Restrictions
 Proposal guidelines
 Evaluation criteria
 Confidentiality statement
 Submission and contact information
 What are the features of an effective
proposal?
Features of an effective proposal
 Purpose is clearly stated
 Problem is defined clearly
 Solution is innovative and convincing
 Benefits outweigh costs
 Personnel are qualified
 Solution can be achieved in a timely manner
 Proposal is honest, factual, realistic, and
objective
 Presentation is professional and attractive
Elements of a Formal Proposal

 Cover letter or memo

 Title page or cover
 Reference to authorization
 Table of contents
 List of illustrations
 Proposal summary
 Purpose
 Problem or need
 Background

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
Ch 11 -
website, in whole or in part. 15
Elements of a Formal Proposal (slide 2)

 Benefits of the proposal

 Description of the solution
 Evaluation plan
 Qualifications of personnel
 Time schedule
 Cost
 Glossary
 Appendixes
 Reference list (if required).

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
Ch 11 -
website, in whole or in part. 16
Cover Letter / Transmittal message

 Introduces the proposal to the reader

 Reviews the highlights of the proposal

 Encourages action
Title page or cover

 Title of the proposal

 Name and location of the receiver
 Name and location of the submitter
 Date of submission
Proposal summary

 Write it after the proposal is prepared

 Should offer a complete overview of the
proposal
 Short proposals: a paragraph
 Long proposals: 1- 10 pages.
Purpose of the proposal
 The reason you are making the proposal
 The nature of the proposal – how it will accomplish the
purpose.

 Examples

 This is a proposal to reduce manufacturing costs 10

percent by replacing the Assembly Line A conveyor
system.

 What would you say for the Subway proposal?

Problem or need (establish the client
company’s need)
 This section describes the problem being
solved or the need being met.
With the presence of social media in today’s 24 x 7
connected world, Dolphin Media Inc. hesitated to
make the leap from traditional marketing to social
media marketing. Their marketing tactics seem to
be losing effectiveness and the company feels as if
they are missing out on a large segment of their
market. In addition, their competitors have begun
acquiring the majority of the business in the market
and have brought Dolphin Media’s growing
revenues to a halt. Source: Verma, 2014,
Pearson
Background

 May be combined with the Problem or Need

section

 Explain the problem – how it developed, its

magnitude, and the consequences if nothing
is done.
Benefits of the Proposal

 States the outcome of implementing the

proposed solution

 Must be written using you-viewpoint

 Must serve the interests of the reader

 Be careful not to overstate the benefits

 Make them concrete, realistic and honest.

Description of the solution

 Specify what you are proposing be done. Include

5 Ws and H.

 Most important section

 You will want to stress:

 the innovative aspects of your proposal
 the special nature of the resources you are
recommending
 the strength of your solution’s rationale.
Example (Solution)
 The solution that is recommended for Dolphin Media
Inc. is to deploy their company on all of the major social
media channels. For this, a marketing campaign must
be created utilizing these media channels and creating
immediate engagement with your audience. In order to
do this successfully, start by acquiring some fans,
followers, subscribers, and connections and invite them
to join you in a particular discussion or attend a specific
event.
Evaluation Plan

 An evaluation plan provides a way to judge

the success of proposal implementation.
Qualifications of Personnel

 Include education, experience,

accomplishments, successes, and evidence of
achievements that directly relate to each
participant’s involvement in the proposed
solution.
Time Schedule

 Realistic start and completion dates

Cost
 Present in logical parts

 For example,
 Personnel
 Supplies
 Equipment
 Facilities
 OR
 Benefits
 Solution Segments
 Time Phases, etc.
Glossary and Appendix

 What does a glossary do?

 What is the purpose of an appendix?

Preparing a Proposal

 Research

 Planning

 Writing

Source: Verma, 2014

Research stage

 In case of an unsolicited business proposal,

the client company may not be willing to
giving you explicit details of their need.

 Research the competitors of the client

company and their customers as well.
Planning stage

 Analyzing guidelines/RFP
 Preparing problem solution
 Developing an implementation plan
 Preparing project cost
Writing stage

 Drafting and re-drafting

 Reviewing and editing
 Proofreading
 Including relevant appendix
 Submitting the final copy