A business proposal is a written form of offer, which is made from a seller to a prospective buyer. In the complex sales process, business proposal is a key step. There are three different types of categories in business proposals: formally solicited, informally solicited and unsolicited. The solicited proposals are only written for the published requirements, which are contained in the ‘request of proposal (RFP)’, ‘request for quotation (RFQ)’, or ‘invitation for bid (IFB)’.
- The request for proposal, business proposal gives a detailed specification of the customers needs and includes ways for preparing for the proposal. It also includes the evaluation criteria that the customer usually uses for evaluating the offers. A customer will only issue a request for proposal if their needs are not fulfilled.
- The request for quotation is only issued only when they have to buy a large amount of goods and the delivery or the availability of the goods is a problem. The proposal written in RFQs is lengthy and they have the primary cost data.
- Costumers only issue an invitation for bid when they are buying a property and cost is the major issue for them. These proposals are also lengthy but most of the length is due to cost estimating data.
The informally solicited proposals are between a vendor and a prospective customer. If the customer is interested in a product, they can ask for a proposal. Such proposals are known as sole-source proposal. The sole-source proposals are less the 25 pages and more than 5 pages. Unsolicited proposals are the marketing brochures and they are very generic. The unsolicited proposal has no relation with the customer. Vendors use this proposal for introducing their product or service to the customers. A proposal gives the requirements of the buyers and favors the products of the sellers. It also educates the buyers about the seller’s capabilities. A successful proposal usually results in sale, where both the parties have what they want, and it is a win-win situation.
Here are some easy steps on how to write a proposal.
Steps:
- Make an executive summary. This is the key element in making a proposal. It should contain all the details like the problem, possible solution, funds required, history and qualification of the organization. All the information must support your ability to carry out the proposal. Try to catch the attention of the readers in the beginning itself, so that they read further.
- Make a statement of need. You can use the current statistics, which are accurate and support your statement. This section is to inform the readers that their problems will be solved and will have a positive outcome. You will have to convince your readers that your project is better than other projects in the market.
- Make a project description. You must include things like methods, objectives, sustainability, staffing of the entire project. Each part should flow to the next part. It is very important to give the readers the idea of how will you be executing the plan.
- Next step will be to present the budget plan. Some institutes require a detailed budget, while the remaining simply ask for an overview. You should make a budget plan that reflects the needs of your project.
- Add the organizations resume. Describe in detail about your organizations and the activities it has.
- End the proposal with a strong persuasive conclusion.