![How to Create a Business Proposal: A Basic Guide [With Template]](https://images-cdn1.welcomesoftware.com/Zz00ODUwNmU1MGYyZDMxMWVmOGIwOTgyNjFhYjVhZmE5Yw==?width=584&height=390)
Table of contents
Creating a business proposal can feel like a big task, especially if you’ve never written one before. But with the right approach, it can be a straightforward process. Whether you’re hoping to win over a potential client, secure funding or team up with another business, having a solid proposal can leave a lasting impression and secure the business you’re aiming for.
Read on for a step-by-step guide on how to write a business proposal, including its essential components, types and examples. You’ll also find practical tips and best practices to help you create a proposal that stands out and confidently presents your best ideas.
What is a business proposal?
A business proposal is a professional document that offers a solution to a potential client’s problem or outlines how you’ll meet their needs. Think of it like a sales pitch to win them over, but in a written format. It highlights how your product, service or idea can benefit their business in specific ways, and shows what your business is capable of and why you’re the perfect choice.
For example, if you’re a graphic designer pitching to a client, your business proposal might detail how your designs can bring their branding to life.
Business proposals are used when reaching out to new clients, responding to a request for proposals (more on that below) or suggesting a partnership. every case, the goal is the same: show value, explain how your solution benefits the client and make it easy for them to say, “Yes, let’s do this!”
Types of business proposals
There are two types of business proposals, with each requiring a slightly different approach:
Solicited proposals
Solicited proposals are requested by the client, often in response to a formal request for proposal (RFP). The client knows they have a problem or need and is seeking solutions, so they invite other businesses to submit proposals that detail how it can be solved. In this case, your proposal will need to address their specific requirements while demonstrating why your solution is the best fit.
Unsolicited proposals
Unsolicited proposals, on the other hand, are initiated by you. They’re sent to potential clients who haven’t specifically asked for one. To succeed here, you’ll need to grab their interest – do some research on their business, craft a compelling introduction, and present a strong argument for how your solution adds unique value. This type of proposal can be a great opportunity to offer innovative ideas or solutions that the client might not have considered yet.
Business proposal examples
Looking through business proposal samples may help give you some insights into how others structure their proposals and what to include in your own. For instance, if you’re pitching to a tech company, you might feature mock-ups of your solution. Or, if you’re a catering business, your proposal could include sample menus and photos of previous events.
Using a pre-designed business proposal template (like these Canva templates, for example) is another great way to get started and save you time. Just remember to personalise it to suit your specific client and project so it feels tailored and personal.
Business proposals come in many forms, depending on the client’s needs and their industry. Some common examples include:
- Product proposal: Pitches a specific product to a client, focusing on how it meets their needs and provides value.
- Service proposal: Outlines how your services can solve the client’s challenges or help meet their goals.
- Event proposal: Showcases how you’ll plan and execute an event, including budget breakdowns, venue options and a schedule of activities.
- Project proposal: Details plans for a specific project, including objectives, timelines and deliverables.
- Sales proposal: Tailored to close a deal, this focuses on presenting a clear value proposition and pricing options for potential clients.
- Partnership proposal: Suggests a strategic partnership where both parties benefit, such as co-marketing campaigns or joint ventures.
- Investment proposal: Convinces potential investors to fund your business, project or startup. This proposal often includes financial projections, market research and return-on-investment (ROI) estimates.
Essential components of a business proposal
Understanding how to create a business proposal with a clear, professional structure can make all the difference. Here are the key elements to include:
1. Create a compelling business proposal title
Start with a descriptive and straightforward title that clearly explains what your proposal is about, for example, ‘Proposal for Event Management Services’ or ‘Business Partnership Proposal for XYZ Company’.
2. Build a table of contents
Including a table of contents helps clients navigate your proposal easily, especially if it’s lengthy or has multiple sections. It’s a simple way to improve readability.
3. Craft the executive summary
The executive summary is an overview of your proposal’s main points. Outline the purpose of your proposal, how your solution addresses the client’s needs and why you’re the best choice – all in a few short paragraphs. This section is crucial for grabbing attention, so keep it brief but impactful.
4. Write a detailed problem statement
This section is your opportunity to demonstrate you understand the client’s needs or challenges. Clearly define the problem or need, setting the stage for your solution.
5. Propose your solutions
Now’s your time to shine! Explain your proposed solution, whether it’s a product, service or partnership. Focus on how it solves the problem you identified earlier and the specific benefits it offers. Use examples or results from past work to back up your claims, if you can.
6. Showcase your team’s expertise
Introduce the people who will bring the solution to life. Showcase your team’s relevant experience, skills and expertise. This adds credibility and reassures the client that you have the capability to get the job done.
7. List deliverables, milestones and budgets
Be clear about what the client can expect and when. Break down key deliverables, steps and schedules. For instance, if you’re offering marketing services, you might specify the number of campaigns, the platforms you’ll target and the timelines for each phase. When addressing costs, summarise pricing in a way that’s transparent and easy to understand. For example, you could present different packages or options to suit the client’s budget.
8. Present your payment structure
State how and when payments are due, such as upfront deposits or milestone-based payments. If your proposal requires immediate action, you could make it dynamic by adding a Square payment link for easy acceptance of a deposit or payment.
9. Specify the terms and conditions
Cover any legal or operational details, such as ownership rights, confidentiality agreements or service level agreements (SLAs). Ensure it’s all clear so that everyone’s on the same page.
10. Receiving the decision
Finish strong with an invitation for the client to take action. Express your willingness to address any questions or concerns. Offer your contact details and make it easy for them to reach out.
Business proposal writing best practices
Adopting these best practices can help you put together a polished business proposal and boost your chances of success.
Clarity and conciseness
Keep your language clear, professional and to the point. Avoid unnecessary jargon and overly complex sentences. Your goal is for clients to quickly understand your solution and why it’s a great fit.
Personalisation
Tailor your proposal to the client and their industry. Address their specific needs and goals, and customise your solution to fit their unique circumstances. A personalised proposal shows you’ve taken the time to understand their business and values – plus, you’ll stand out from competitors using generic pitches.
Proofreading and editing
Typos or grammatical errors can undermine your professionalism, so it’s important to check your proposal for any spelling, grammar and consistency issues. Is your messaging clear? If possible, have someone else review it before sending it off. You could also use an AI tool to help polish your draft and refine your writing.
Formatting
A professional layout makes your proposal visually appealing and easy to read. Use consistent fonts, headings and spacing. Adding visual aids like charts or images may also help illustrate your points.
Bonus tips on how to make a business proposal stand out
- Using the words ‘you’ and ‘your’ can make your potential client feel valued and directly addressed.
- Consider adjusting your writing tone to suit their company culture.
- End with a short, personalised note thanking them for their time.
FAQs about business proposals
What’s the difference between a business proposal and a business plan?
A business proposal is a document you use to pitch your products, services or ideas to a potential client or project. A business plan, however, outlines your business’s overall strategy and goals for the future.
How long should a business proposal be?
The length depends on how complex the project is, but most proposals are generally between 5–15 pages. Keep it as concise as possible while covering all the essential information.
How do I customise a business proposal?
Personalisation is key. Focus on the client’s specific needs, pain points, industry and challenges. Include tailored solutions and relevant examples. Present your solution in a clear and engaging way. Use a professional, visually appealing format, and include relevant data or case studies where possible to strengthen your case.
How do I follow up after submitting a proposal?
Give your client some time to review your proposal. If you haven’t heard back after a week, a polite email or call can help move things along and show that you’re committed and interested. Keep your tone friendly and genuine, and let them know you’re happy to answer any questions.
