Your company might be selling to consumers or different businesses, but you still must convince the other party to purchase from you anyway. In most circumstances, this is where a business proposal comes in handy. In the B2B industry, for example, after you’ve secured new clients, you must close the transaction. In this conversation, there is a bit more involved than with B2C businesses, who deploy marketing methods and then hope their clients react and acquire their product and service. This is where your company proposal comes in.
However, although your approach and specific style of your business proposal may be unique to your business, there is a basic formula you can follow to make things simpler, particularly the first few times you prepare a proposal.
In this post, we’ll go through the distinctions between the two most prevalent proposal forms, their separate components, and who you need to be able to create a successful proposal.
Solicited proposals and unsolicited proposals are the two most common kinds of business proposals.
A solicited business proposal is one that the prospective client specifically requests. For instance, if a business or government organization needs an outside business to accomplish a project or assignment, they may put the opportunity up for bids.
As a result, the company may need to write a business proposal in response to an open bid published on the market, in which other businesses will also compete for the contract. Some solicited business ideas may be only shared with select investors.
On the other side, unsolicited business proposals are those that other businesses haven’t asked for. They are submitted at the seller’s desire and serve as a means of attracting the attention of a potential customer.
A well-thought-out business proposal increases a company’s chances of acquiring the attention of a possible client. An unsolicited proposal is another tool a small company may use to approach a potential partner for a partnership. Now, let’s take a look at the ideal proposal structure and all of its components that are essential to your business’ success.
Every proposal has two parts: the cover letter and the body. You can also include attachments containing charts, graphs, images, maps, and the like. Often called “letter proposals,” brief proposals condense the first two parts into a single submission of no more than six to eight pages.
In the full proposal, the cover letter serves as a transmittal document. In addition to summarizing the proposal, many bidders use the cover letter to state their pricing, list their qualities, and request the contract.
Typically, a proposal will follow the following format:
- Title page: In this section, you will normally include information about your company.
- Table of contents: They are not often included, but when they are, it’s because the proposal is very intricate and lengthy.
- Executive summary: A summary might be placed here or in the cover letter.
- Statement of the problem, issue, or job: In this part, the proposing side elaborates the client’s aims and goals.
- Approach: The approach is crucial in securing the contract since it demonstrates how you will tackle the issue using innovative methods, ways of thinking, or procedures, and why they are better than other alternatives available.
- Methodology: This subsection elaborates on the methodology that will be used to implement the approach.
- Qualities of the bidder: This part provides evidence that supports the bidder’s candidacy, including the bidder’s experience, expertise, and track record of completing previous projects.
- A financial plan, billing information, and contractual issues: Finally, the bidder presents the price with as much specificity as is requested by the RFP.
Recent research indicates that response rates for bids are increased by 3.5 times for companies that have dedicated proposal specialists compared to those that do not. Because of this, it’s clear that investing in talent that writes professional proposals pay off significantly. There is an inherent advantage to having a committed staff that understands the framework of a proposal.
A proposal should be carefully written in an orderly and informative way. It must be precise and succinct up to a certain degree while attempting to solve an issue. Well-trained professionals with resources and time are the only persons right for the task.
Your proposal should address your primary audience’s needs. In addition, it should be unique enough to offer a solution that the customer could not find as an alternative elsewhere. It is up to you to highlight the benefits of your product or service and organize them logically. This will help keep your reader focused, while also considering company objectives and limitations.