In our guide to writing a business plan, we cover business proposal tips and examples.
You’re either a B2B company or a B2C business, but you have to convince customers to spend money with you. A B2B business will usually start with a proposal. Once you’ve gained new clients, who are likely to be other businesses in the B2B world, you need to make a deal. This exchange is a bit more complex than B2C businesses, which use marketing tactics and hope that their customers will respond by purchasing their product or service. Your business proposal is what will be needed.

Even though the process you use and the format of your business proposal may be unique to your firm, there are some general guidelines you can follow, especially when writing your first proposal.

This guide will walk you through how to create a business proposition, including how to decide on the type of proposal to write, how to organize it, and what information to include.

How to write an effective business proposal: Seven essential steps

Let’s start the process with these points as a guide. You’ll need to follow a step-by-step process if you want to learn how to write business proposals or if you want to update the proposal you already have. When writing a proposal, organization is crucial. The structure will help you not only answer the questions above but also create successful proposals each time you pitch a new business.

You can divide a business plan into the following sections:

1. The following is a brief introduction to the topic:
2. Table of Contents
3. Summary
4. Project details
5. Deliverables and Milestones
6. Budget
7. The conclusion of the article is:
8. Appendix (if needed)

Related Article: 5 Best Tips to Write a Successful Business Plan

Step 1: Introduction

Your introduction should give your client a concise overview of your company’s activities (similar to what you would include in your business plan). The introduction should include the unique features of your business and the reasons why you are the best vendor for a particular job, whether it is a one-time arrangement or a long-term relationship.

In order to make the most of your business proposal, you should be thorough without being too wordy. Avoid the temptation to include every detail in your proposal, including your company’s history or lines of business. Keep the introduction on one page.

Step 2: Table Of Contents

After you have introduced your company and explained why you are the best fit for the client to whom you are submitting the proposal (a sort of cover letter), you will want to create a table. This section, like any other table of contents will outline what the client should expect in the rest of the proposal. Include all the sections we will cover below, laid out just as we did above.

You may wish to include links in the table of contents of an electronic proposal so that the client can jump easily from one section to another by clicking on the links.

Step 3: Executive Summary

Your business proposal should also include an executive summary, which answers the questions of who, what and when you are proposing, as well as why and how. The client will be able to tell that you are interested in them.

This section should not be your entire business proposal, despite its title. This section is meant to be your elevator pitch, or value proposition. The executive summary is where you will make a case for why your business is the right fit for the prospect. You can talk about your strengths, your areas of expertise, the problems you have solved, and your advantages over your competitors.

Step 4: Project details

Steps four to six are the body of your business proposal. This is where your client will learn how you will address their project, and what the scope of work will be.

You’ll begin by explaining the solution or approach you will use to serve your client. Your main objective as you progress in your explanation is to show the client that your proposal is truly customized. You can show that this proposal was created specifically for the client based on his or her needs and problems. You’ll now detail your solution, your tactics to implement it, and any other information that relates to the recommended approach of your company.

Step 5: Deliverables and Milestones

This section is a vital step in its own right.

You’re not just giving your proposal recipient an outline of what you plan to do. They also get the deliverables that are proposed. Here you will outline the deliverables that you propose with detailed descriptions (which may include quantities or scope of service depending on your business). Never assume that a client has the same expectations as you. If you are not on the same page, they may think you have overpromised and underdelivered. This is where you should go into more detail.

You can use this section to limit the scope and terms of your services. You can use this if you are concerned that the scope of work that you outline could result in additional projects and responsibilities you don’t plan to include in your budget.

You might also consider adding milestones in this section. These can be added either with deliverables or separately. Milestones are small milestones, like the delivery date for a package of project components or the first draft you send to a designer. You can also choose to divide the project into different phases. Milestones are a great tool to show your organization and responsibility for longer projects.

Step 6: Budget

Pricing projects is not easy. You have to strike a balance between earning what you are worth and proving your value. At the same time, you don’t want to scare away potential clients or be beaten by a competitor who offers a lower price. A budget or pricing section will be an important part of your business proposal. So, you should prepare it before diving into proposal writing.

If you are worried that your fee will seem excessive to a potential client, then you may want to separate the components of the budget. For example, social media services would cost $700, while web copywriting would be $1,500. You could also create different pricing tiers with different services included in each. This second approach may not be suitable for all businesses or proposals, but you should consider it if your fee seems excessive.

Once you have determined the pricing structure, list out the fees (you may even want to include optional services or fees) and the total cost of the work that you have described.

Step 7: Concluding

Your conclusion should summarize your understanding of the problem, your solutions, as well as what work (and cost) is involved. Your business proposal is your final chance to make an impactful case. Reiterate your intentions and explain why your ideas are better than those of your competitors.

You might include a section on terms and conditions if you are writing an RFP. This means that a client has asked you to write this document. This final piece will detail your pricing, schedule, and scope of work, which the client will accept by accepting the proposal.

Bonus step: Appendix (optional)

You may also include an appendix after the conclusion. This is where you can add any additional information that doesn’t fit in the main proposal, but that the reader will not find distracting, or that isn’t essential for understanding the major components of your proposal. Appendices are only necessary if you wish to provide your client with stats, figures or illustrations. In this section, you can also include your contact information, information about your team and any other relevant information.

You can still end your proposal with a conclusion if you do not have any other information.

The Bottom Line

It’s a challenge to learn how to write an effective business proposal. You can, however, follow our steps to know what you should include in your business proposal and how you should include it.

This article offers a step-by-step guide to writing a business proposition. The article explains how a business proposition is an important tool that B2B businesses use to negotiate with other companies. This article lists the sections that should be included in a proposal. These include an introduction, an executive summary, and project details. It also includes deliverables, milestones, a budget, and a conclusion. The article also suggests that an appendix be added if needed.