business plan and business proposal

Business Plan vs. Business Proposal

The terms “business plan” and “business proposal” are sometimes used interchangeably, however, they are very different. The main difference between a business plan and a business proposal is that a business plan documents your growth strategy while a business proposal is a specific ask for someone to take an action you desire (e.g., buy your product/service, invest in your company, partner with you, etc.).

In this article, we will define a business plan and a business proposal and give you examples of when each is appropriate for you to use.  

What is a Business Plan?

Download our Ultimate Business Plan Template here

Business Plan Structure

Typically, the business plan structure contains the following 10 components:

• Executive Summary
• Business Description & Overview
• Market Research & Analysis
• Customer Analysis
• Competitive Analysis
• Marketing Strategy & Plan
• Operations Plan
• Management Team
• Financial Projections & Plan

It is recommended that a business plan is updated annually to adjust for changes in the industry trends and the business itself.  

What is a Business Proposal?

In terms of what you are asking from them, it can be anything that involves funds and time on their end including cash investment, product development assistance, and even employees if they have applicable skill sets.  

Business Proposal Structure

An invited business proposal is written in response to an RFP. A request for proposal (RFP) is a document that invites potential suppliers to submit business proposals. How to write a business proposal depends on the format requested and the questions included in the RFP.

The following are the components that usually make up a business proposal:

• Brief description of your company’s services/products as the proposed solution to the goals of the RFP
• Reiteration of the scope of the particular project
• Responses to questions asked in the RFP
• Cost of the project, including drafting services, materials, tools, labor, delivery and other expenses

An unsolicited business proposal is essentially the same format, but it will solicit the client’s business while anticipating the clients’ concerns and issues. A business proposal is more of a marketing document than an offer because it attempts to persuade the potential client to do business by demonstrating your value proposition and a call to action.  

So, What’s the Difference Between a Business Proposal vs. a Business Plan?

In a business proposal, company representatives typically work with the customer to tailor a business proposition that is attractive to both parties. This usually comes in the form of a written document detailing the services and cost associated with fulfilling an offer or request but can also include electronic contracts.

In contrast, a business plan is a description of your company on the executive and operational levels aimed at investors for raising financial support or other stakeholders in order to facilitate long-term growth. For example, an investor will want to know about how different departments within your business interact with one another, while somebody who will be implementing your product probably only needs more limited information such as design specs because they are not going into production themselves.

A business proposal may provide you with more details of the project, but it does not include information about your company’s operations or future plans.  

Examples of Business Plans vs. Business Proposals

• When you give a potential investor your business plan which includes all sorts of information about how we will achieve your goals together as well as the amount of money it’s going to take. The business proposal is for them to write you a check in return for interest/principal payments or a percentage of your company.
• You might be getting partners involved in your business who will help with product development and distribution. You are offering them a business proposal to work together. However, they may request to see your business plan to better understand your goals, potential profitability, and how you plan to reach these goals before deciding to work with you.
• Your existing business has been so successful that you decide to outsource the social media marketing efforts to a freelancer to free up more of your time. The freelancer would provide a business proposal stating their terms and conditions along with the agreed-upon pay arrangement for their services. This change in organizational structure may be noted in your business plan to demonstrate expansion and financial stability to continue growth.
• In your business plan , one of your goals is to grow your client base by 5% each month. You identify potential clients in need of your services or products and send an unsolicited business proposal to demonstrate how your products or services can benefit them in order to develop a new prospective client list.

The business plan is a roadmap for your company’s present and future, while the business proposal has to do with what you are asking someone else for money.  Applying this difference into practice can be difficult at times because business plans are often marketed as business proposals. However, it is important to be able to identify the difference between a business plan and business proposal in order to maximize their effectiveness and importance with potential investors or partners.

How to Finish Your Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Other Helpful Business Plan Articles & Templates

Business Plan vs. Business Proposal: Everything You Need to Know

“Ok, so you sell things.”

Well, honestly, I wasn’t surprised or peeved at the half-baked knowledge of my friend’s father when he made a snap judgment and conveniently labeled my marketing profession as sales.

After all, this wasn’t my first time when someone tagged me as a salesperson. So, I took a deep breath and explained to him how sales are different from marketing.

We, humans, dwell in a herd mentality and hone our word skills from our surroundings. Sometimes, we are simply careless, sometimes oblivious, but most of the time, we actually don’t know that the word has a different meaning.

This can be ignored in a casual conversation, but using the wrong words in a business space can change the implied meaning and lead to miscommunication. For example, cost vs. price , digitization vs. digitalization , warranty vs. guarantee , machine learning vs. artificial intelligence , etc.

“Don’t use words too big for the subject. Don’t say ‘infinitely’ when you mean ‘very’; otherwise you’ll have no word left when you want to talk about something really infinite.” – C. S. Lewis

This Process Street guest post untangles the confusion between two crucial terms – business plan and business proposal. These are used interchangeably in the business world, but their meaning and application are pretty different.

Words are the building blocks of communication. There is a French phrase for using the right word – le mot juste .

Let us strive for le mot juste !

Hop on and be a part of this fantabulous journey.

What is a business plan?

What is a business proposal, business plan vs. business proposal: what are the differences.

• Bonus: How to make ‘wow’ business plans and business proposals?

Winding-up: Key takeaways

Here we go!

A business plan is a formal guide that acts as a blueprint, deciphering every root and branch to make a business successful. It is a written document that provides insights to internal and external stakeholders on business vision, goals, and strategies to achieve those goals.

“Without a plan, even the most brilliant business can get lost. You need to have goals, create milestones and have a strategy in place to set yourself up for success.” – Yogi Berra

A business plan, at its core, is an explanation of the below questions –

• Who are we?
• What are our offerings?
• Who are our customers?
• Who are the competitors?
• What is our competitive advantage?
• What are the business projections?
• What is the roadmap to achieve the goals – marketing, operations, research and development, manufacturing, and financial plans?
• What are the funding/investment requirements?
• What is the return on investment?

Why do you need a business plan?

A business plan is not a bag of puffery statements. It is a document with factual information necessary for the survival of a business. You can create a business plan with the right tools or opt for a good business coach to get you started.

Let’s see what Tim Berry , business plan expert, founder and chairman of Palo Alto Softwar and bplans.com , has to say on business plans.

“What I love most about business plans is the business planning: like walking, it’s constant correction and review and revision. Planning, done right, is steering a business, managing growth, aiming the business towards the right future.” – Tim Berry ,  Small Business Trends

According to a study done by Palo Alto Software, those who create business plans double their chances to succeed in business .

Let us get down to brass tacks and understand why a business plan is super-duper important.

Record and present business information The primary intent of a business plan is to record and communicate information. It must document the business goals and the methods to attain those goals in a structured manner. It keeps businesses on track with their objectives.

A blueprint for seeking business investment ️ Whether you are a fledgling start-up or an established business seeking expansion or diversification, writing a winning business plan acts as a magnet to attract investors. It builds confidence and trust among investors about the lucrativeness of a business idea.

Lay down the right path ✔️ Not everything discussed verbally at an ideation stage transforms into reality in a pragmatic environment. Jotting down a business plan differentiates achievable from impracticable based on market dynamics, opportunities and threats, and company’s strengths and weaknesses. It sets the right track for business growth.

Establish short-term and long-term goals A business plan sets down short-term and long-term goals and the direction to accomplish them, right from baby steps to giant leaps. It becomes a basis to revisit the goals from time-to-time and make iterations depending on the present scenario.

“Any business plan won’t survive its first encounter with reality. The reality will always be different. It will never be the plan.” – Jeff Bezos, CEO of Amazon

Get clarity on your business A frequent question that pops-up in business discussions is: “Are we doing it right?”

A well-articulated business plan brings insightful knowledge on each aspect of a business – from what it has to offer to how to market the offerings.

Make informed decisions A business plan is a reality check to track what is being fruitful and what is causing hindrance. It paves the way to make a business sustainable.

Predict future financial performance Financial projection is the spotlight of a business plan. It’s the carrot that captivates the eyeballs and tickles investors to fund a new business.

A promising business plan talks about the company’s future financial performance – expenditure, profit, revenue, etc.

Explore new business opportunities A business plan is a flexible document that enables learning on the go. It bolsters research and infuses businesses with new and more feasible business opportunities. It gives organizations a fresh outlook and ushers them to be a howling success.

How to prepare for a business plan

Now that we have answered the ‘what’ and ‘why’ of a business plan, let us move forward to solve the next riddle – how do you prepare it?

Identify your company’s vision, mission, and values Start by answering and figuring out your business personality:

• What do you desire to be?
• How do you want to be perceived?
• What values put your business in motion?

This is your organization’s compass that acts as a foundation for the succeeding steps.

Know your target audience ‍ Dig deep into:

• Whom are you going to cater to?
• What is your target market?
• What is the size and potential of the target market?
• What are the needs of a prospective customer?
• How are the needs addressed presently?

Learn market trends Identifying market trends keeps businesses ahead of the game. Analysis of industry data leads to business growth and profitability in the long run.

Weigh in the impact of unforeseen circumstances From financial turbulence to natural calamities and pandemics – a lot can go wrong in the future and leave a business shaking. Expect the unexpected and gird your loins for these testing times.

How to write a business plan

Creating a winning business plan increases the chances of success and spurs investors to fund your business.

According to a study published in Small Business Economics , entrepreneurs that create a plan are 152% more likely to start their business and appoint a registered agent and 129% more likely to push forward with their business beyond the initial start-up phase and grow it.

Here are the key components of an excellent business plan:

Executive summary First impression is the last impression!

An executive summary is a crucial part of this document. It provides the essence of the whole plan:

• Company details;
• Size and scope of business opportunity;
• A description of your offerings and how it will solve the problem;
• Growth projection;
• Financial requirements.

It should be informative and able to spark readers’ interest to know more about the business plan.

Overview of the business This section lists down information on:

• Your business;
• Your target market;
• Description of your products/services;
• Why and how your offerings are a great fit for prospective customers;
• Your capabilities to handle the demands;
• Your value proposition and competitive advantage.

…and all other related details.

Market analysis and strategies Put forth a strong case built on the solid rock of data analysis and statistics – present data on target market size, industry trends, sales forecasts, and marketing strategy.

Operating plan The operating plan highlights the operational requirements for the smooth functioning of a business. It includes facilities, supply chain management, inventory, manufacturing, shipment, logistics, staff management – everything under the sun that covers capital and expense (CapEx) requirements.

Growth plan This section answers the question: “Where do you see the business going in the next few years?” It provides visibility to investors on the milestones and how you will make money in near future.

Marketing plan Thee marketing plan section describes how to market the offerings to create and fulfill customers’ needs (who are the customers, product positioning, pricing policy, and promotional strategies?)

Management plan This section outlines how your organization is structured and basically how strong you are together. It describes the skills, background, and responsibilities of the management team. It builds conviction that the business is in good hands and has a proficient human capital.

Financial plan and projections This is the part where numbers become the king.

It draws up deets on inflow and outflow of money, sales forecast, profit and loss statement, balance sheet, cash flow statement, and budget expense. It discloses and forecasts the company’s financial goals, profitability model, and charts a course for the coming years.

Conclusion and appendix Conclude the business plan by succinctly bringing out the key pointers – the business’s vision, mission, goals, strengths, and growth trajectory. Make it compelling and to-the-point. Add relevant appendices to strengthen your business plan.

Pro tip: Use an all-inclusive ready-made business plan template document and Process Street ‘s business plan workflow to create unbeatable business plans.

Business Plan Workflow

Click here to access the Business Plan Checklist!

Types of business plans

There are varying types of business plans depending on the purpose and usage:

• Business plan for start-ups A winning start-up business plan can be a game-changer to attract funding from investors. It should weave all key components to make it a promising investment – company overview, products/services, estimated costs, market evaluation, competition insights, risk analysis, cash flow projections, marketing strategies, and the management team’s strengths.
• Strategic business plan It lays down the details of a company’s strategies to fulfill its goals. It outlines the company’s vision, mission, strategy, and goals, the driving force for success, and the timelines.
• Internal business plan This plan moves the needle and steers focus on in-house planning and growth. It ensures that everyone grasps the company’s overall plan for growth. It prepares organizations to move forward by identifying and removing any blockages and assess and revise the strategies when required.
• Operations business plan It is an internal plan that maps out the nitty-gritties of a company’s operations plans and activities.
• Development business plan This is a development or an expansion plan of a business. It is used for both internal and external purposes. An external growth plan is written to attract investment from external sources. An internal development plan counts on its own business capabilities, revenue, and resources. It works as a guide to provide the right directions.
• Feasibility business plan A company scouts out a feasibility study when it plans to foray into a new venture, new product, or a new market. It articulates: How well will the product or service perform? Is the business promising? What is the expected return on investment (ROI)?
• What-if business plan At a point where you face unordinary conditions, you need a variation on the existing plan. A what-if business plan arranges to fall back on a contingency plan when things go sideways. For example, an unexpected surge in demand, new competition, drop in market size, etc.

A business proposal is the mantra that draws you closer to win a customer or bag a project.

Generally, it is a formal response to a Request for Proposal (RFP) sent by a prospective client looking for the right solution to their problems. It explains the particulars of a seller’s offerings and convinces the buyer that the proposed solution is the gateway to their business’s success and productivity.

“And, after all, winning business is what writing proposals is all about.” ― Tom Sant, Persuasive Business Proposals: Writing to Win More Customers, Clients, and Contracts

A business proposal comprises of four main points :

• What are the challenges of prospective clients?
• How can our solution solve their problems?
• Why should they choose us over others?
• What are the best pricing options available?

Why do you need a business proposal?

A business proposal is a testimony in itself that asserts, “I am the best you can get.”

Here are the reasons why you should and must make a business proposal :

• Create or leverage a business opportunity The prime motive is to win, win, and win! It is a medium to encash a business opportunity by putting forward an I-can’t-say-no-to-this proposal.
• Stand out from the competition It persuades the prospects that you are way ahead of other rivals in the industry in terms of the value you offer.

How to prepare for a business proposal

The heart of preparedness is research and further research. After all, the devil is in the details.

Talk to prospective customers, visit their website(s), read published articles, and be a know-it-all for your prospective clients.

Sort out the ‘who’ First and foremost, dig every possible information about the client:

• Who is the client (its vision, mission, and goals)?
• What does it produce?
• What are its key markets and target customers?
• What are its business growth plans?
• Which markets is it presently serving?
• Also, figure out the kingpins of a proposal approval process. This will help you to create a comprehensive proposal with all the necessary answers expected by the decision-makers.

Understand the challenges Find what’s bothering them and what is causing hindrance to their business success. Learn about their existing solution and its challenges.

Stitch the glitch and offer the best solution After a thorough review of all the points mentioned above, find the best solution to your prospective client’s problems.

List down key differentiators This will help you to beat the competition in the dust. It draws a comparison chart and puts you in a superior position.

According to Gray Mackenzie, founder of GuavaBox ,

“Prior to submitting a proposal, make sure you have clearly defined all the major points verbally with the potential customer. By discussing the scope, cost, timeline, and details prior to submitting a written proposal, you can uncover objections earlier in the process.” – Gray Mackenzie, 10 Sales Experts Share Their Best Business Proposal Tips

How to write a business proposal

Let’s get down to the fundamental elements that form a business proposal. Learn how to create a business proposal that stands out and close sales.

Title page/Cover page The name says it all.

Pretty easy-peasy thing to understand, right? After all, you have been creating the title pages since school days.

Still, make a note: Always write a gripping title that intrigues prospective clients’ interest and urges them to read on.

Other components that should be included on the title page are:

• Your company name and logo;
• Prospective customer’s name;
• Submission date.

Table of contents (TOC) As the name suggests, a TOC is a well-structured layout of the document. It helps to skim and scan and navigate speedily through different sections of a business proposal.

Executive summary It sets the tone for a proposal and makes the reader inquisitive about reading subsequent sections. It sums up the entire business proposal – the purpose of sharing the proposal and why and how your solution is the right fit for the prospective client. Leave no stone unturned to boast about your offerings in the executive summary.

Details of offerings This is an in-depth description of the products or services your company has to offer.

How will the offerings solve the client’s problems? This explains why your products/services are the right fit to address a prospective client’s needs and why it is a better alternative than the competition.

The methodology/implementation of offerings This section is a blanket explanation of how the promised deliverables will be executed. It provides step-by-step clarity on each action along with timelines. It gives the client peace of mind and builds trust and confidence in the offering.

Pricing, payment, and legal matters Here, you talk about the pricing structure, applicable taxes, payment schedule, cancellation policy, and how you plan to solve the legal matters (if any arise in the future).

Here are some tips for this section:

• Ensure that the pricing details are concise and complete.
• Providing a comparison chart with different pricing options helps to make decisions faster.
• Don’t go overboard with pricing, and also, don’t underrate yourself.
• Always refer to the RFP and verify if every request has been fulfilled.
• Separate out and create a new legal section if your business demands an extensive list of legal requirements.

Details about your company This is an exhaustive overview of your company. Don’t forget to add relevant customer testimonials, case studies, or success stories to build your case among prospective customers.

Signatures and Call to action This is the moment that gets butterflies in your stomach; the closure. This is the concluding part of a business proposal. Here (if all your prayers get answered), you and your client sign the proposal and secure the deal. Hurray!

Pro tip: Once you send the business proposal, don’t sit idle in your cocoon day-dreaming of winning the proposal. Always proactively do follow-ups with the prospective clients and clarify their doubts.

For start-ups or small businesses, drafting a business proposal can be an unnerving experience. They work fingers to the bone to write a perfect business proposal. Spending too much time on it might lead to missing the deadline and eventually losing out on a golden opportunity.

According to a report by Better Proposal , sending a business proposal within 24 hours increases the likelihood of winning the deal by 25%.

Here’s the secret sauce to speedily create flawless business proposals :

First, pick a professionally vetted and ready-to-use business proposal template and draft a business proposal like a cakewalk. Such as the Business Proposal Template included below.

Next, always use Process Street ‘s super-powered business proposal template checklist and ensure no step gets missed in the process.

Business Proposal Template Checklist

It even turns out a blessing for big businesses since they have to draft multiple proposals all the time. Templates and checklists save a lot of time, enhance productivity, and increase the chances of success.

Types of business proposals

Majorly, there are two types of business proposals:

Solicited business proposal Also known as an invited business proposal, it comes into play when a buyer, or a company, outlines its requirements and requests suppliers to present an offer. It can be a response to a public tender issued by big corporations or government agencies.

Alternatively, a solicited business proposal can also be submitted as a response to the RFP shared by a prospective client.

The difference between the two is that while the earlier one is open to all bidders, the latter’s scope is limited as it is shared with shortlisted suppliers.

Pro tip: Do a thorough check before submitting an invited business proposal. Missing out on-minute details can kick you out from their consideration list.

Unsolicited business proposal An uninvited or unsolicited business proposal is a proactive attempt to create a business opportunity. This proposal is sent to prospective clients without being asked.

The good news is, there are slim chances of your rival sending a business proposal simultaneously, so less or no competition.

The bad news is, it might breathe in the customer’s inbox for a few days and then, without being read, depart to the heavenly abode -the trash folder.

But still, like a cold call, it leaves some impression on prospective clients and shoots up the chances to cut a deal in the long run.

Pro tip: An unsolicited business proposal is mostly sent through emails. Make certain to write an attention-grabbing headline and a convincing explanation to draw attention.

Here’s a comparison chart that distinguishes between business plan and business proposal:

Bonus: How to make ‘wow’ business plans and business proposals

Here are the secret ingredients to make awesome and captivating business plans and proposals:

Follow the principle of KISS (Keep it simple, silly)

This is not the right place to brag about your vocabulary skills. You want the prospective customer to focus on reading rather than wasting time looking up for a word.

Always remember! Communication is the key.

So, go simple and ditch those heavy jargons.

Don’t wear-out the pupils of your prospects with long-winded documents. Capitalize on the multisensorial abilities of humans as well.

Visuals increase people’s desire to read content by 80%.

Leverage the power of visuals and make your document easily graspable by adding graphs, infographics, flowcharts, tables, images, and videos.

Add social proof

Do not forget to add positive feedback or customer testimonials. If similar projects have been delivered in the past, do add relevant links and case studies of that work. It helps to build trust and strengthen your case.

“Make sure you have great success stories that you can share with potential clients. At the end of the day, most, if not all, potential clients want to know you will provide value to them and generate positive ROI.” – Mathew Bivens, Podcast and marketing consultant,  10 Sales Experts Share Their Best Business Proposal Tips

Proofread ️

Ensure the document is free from grammar and spelling errors.

Follow brand guidelines

Your document should reflect your brand. Bring consistency in all your documents and design them as per the brand guidelines.

Use document builder tools ️

Time is money!

The likelihood of getting a ‘yes’ on your business plans and business proposals depends on how fast you can create a flawless document.

Empower your organization with a smart and all-in-one document builder tool like Revv – create, communicate, collaborate, and close your documents in no time.

Business plans and business proposals are two different worlds with distinct purposes and goals. But, both play a prime role in increasing the odds of business success.

People often get the wrong end of the stick and ask for a business plan when they mean business proposal or vice-versa.

But, we don’t need to worry about that since we are now clear on what is what.

Cheers to us!

P.S: Don’t forget to subscribe to the Process Street blog to get notified of our upcoming articles. We also have a podcast “Tech Out Loud” featuring content written by respected industry leaders such as Peep Laja , Sujan Patel , Tomasz Tunguz , and more!

What is your take on business plans and business proposals? Have you ever got your wires crossed with these two terminologies? Don’t forget to post your comments below.

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Molly Stovold

Hey, I'm Molly, Junior Content Writer at Process Street with a First-Class Honors Degree in Development Studies & Spanish. I love writing so much that I also have my own blog where I write about everything that interests me; from traveling solo to mindful living. Check it out at mollystovold.com .

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Blog Business How to Write Business Proposal (Examples + Free Templates)

How to Write Business Proposal (Examples + Free Templates)

Written by: Aditya Sheth Jan 25, 2024

The great Mark Cuban once said, “Sales cure all.” If a business doesn’t sell, it doesn’t make money and by extension the business fails. That’s why you need to write business proposals .

A well-written business proposal can often mean the difference between winning or losing a prospective client.

In this in-depth guide to creating business proposals, we show you how to close more deals, make more sales and crush your business goals — all by using easy-to-edit professional business proposal templates .

Here’s what this guide will cover (click to jump ahead):

What is a business proposal, what are the components of a business proposal.

• How to write a business proposal step by step

More business proposal examples + writing and design tips

What should you include in a business proposal, what are the types of business proposals.

• FAQs about business proposals

Looking for a shortcut? Watch this quick video for an overview of everything to include in your business proposal:

A business proposal is a document designed to outline a business plan to convince potential client, investor or partner to engage in a business agreement with you or your company. It’s basically a sales pitch in writing to persuade potential clients to show them benefits of working with you or your company for their business success.

A business proposal outlines what your business does and what you can do for your client . It can be general like this business proposal example:

Or it can be more specific, like this business proposal template which focuses on proposing a project for the Newton Center Rail:

Or this business proposal sample, which presents a plan for a social media strategy and campaign:

To design a business proposal that holds the client’s attention, identify their pain points. Then provide your buyer with the right solution to alleviate those frustrations.

Working on a new project? These project proposal examples might come in handy for you.

The components of a business proposal can change depending on the field, company size and client needs. While details may differ, strong proposals typically introduce your company, explain the problem, offer a solution and its benefits, highlight your team’s skills, and outline timeline, cost and next steps.

Sometimes, the complexity of crafting a business proposal, especially in projects requiring thorough market analysis or technical details, calls for professional insight. Seeking research proposal writing help can be invaluable in these instances, ensuring that your business proposals are not only well-structured but also highly persuasive and tailored to meet specific client needs.

How to write a business proposal step by step

Before you start creating your business proposal template, you need to understand the business proposal format. At a high level, your effective business proposal should include the following:

• Create a compelling business proposal title
• Build a table of contents
• Craft the executive summary
• Write a detailed problem statement
• Propose your solutions
• Showcase your team’s expertise
• Create a realistic timeline
• Present your payment structure
• Specify the terms and conditions
• Receiving the decision

Below, you can see business proposal examples that demonstrate how to include these 10 sections.

1. Create a compelling business proposal title

A compelling title could mean the difference between someone reading your proposal or ignoring it in favor of a competitor’s. 

What makes a good title page? Here are the essential elements to include: 

• Your name along with your company’s name
• The name of the prospect (or their business) 
• The date you’re submitting the proposal

The gray business consulting proposal template above contains all the details a prospect would want to know. The title also offers a strong tangible benefit to the prospective buyer. Honestly, “Who doesn’t want to grow their business?”

2. Build a table of contents

The table of contents is a fundamental part of every winning business proposal template. It makes your proposal scannable and easy to read.

The people you will be pitching to are usually C-level executives like the CEO (Chief Executive Officer), COO (Chief Operating Officer), or fractional executives who work part-time. These are busy people who don’t have time to read your entire proposal in one go.

That’s why most of the business proposal examples in this list include a table of contents.

Adding a table of contents to your document makes it easy for them to go through it at their own pace. They can also skim through parts of the proposal that they deem more important. You can see how this abstract business proposal template uses the table of contents:

You can also make your business proposal template easier to navigate by adding hyperlinks to the document, particularly in the table of contents. This way your clients can jump to specific sections without having to scroll through the entire document. Ensuring your business plan format follows a clear structure can greatly enhance readability and comprehension for potential investors or partners.

It’s easy to add hyperlinks in the Venngage editor. Select the text you’d like to turn into a link, then click the link icon in the top bar. From there, select the page you want to link to! Then download your completed design as an Interactive PDF .

3. Craft the executive summary

The executive summary is a staple in all kinds of annual reports , leadership development plan, project plans and even marketing plans. It is a concise summary of the entire contents of your document. In other words, write a business proposal outline that is easy to glance over and that highlights your value proposition.

The goals of your executive summary are:

• Introduce your company to your buyer
• Provide an overview of your company goals
• Showcase your company’s milestones, overall vision and future plans
• Include any other relevant details

This gray business proposal example has a detailed yet short executive summary including some social proof in the form of clients they’ve worked with:

Take note of how precise this business proposal example is. You want to keep your executive summary concise and clear from the get-go. This sets the right tone for the rest of your proposal. It also gives your buyer a reason to continue reading your proposal.

Crafting an executive summary and keeping it concise and compelling can be challenging, but you can use an AI summarizer online or an AI proposal generator to create a polished document or executive summary. Such tools are trained on relevant AI models that can extract core points from a given text. You can get such a point either in bullet form or in abstract summary form.

Pro Tip: Try to write an executive summary such that, even if your prospective client doesn’t read the entire proposal (with a good executive summary, they most likely will), they should have a clear idea about what your company does and how you can help them.

4. Write a detailed problem statement

The point of writing a business proposal is to solve a buyer’s problem. Your goal is to outline the problem statement as clearly as possible. This develops a sense of urgency in your prospect. They will want to find a solution to the problem. And you have that solution.

 A well-defined problem statement does two things: 

• It shows the prospect you have done your homework instead of sending a generic pitch
• It creates an opportunity for you to point out a problem your prospect might not be aware they had in the first place. 

This bold business proposal template above clearly outlines the problem at hand and also offers a ray of hope i.e. how you can solve your prospect’s problem. This brings me to… 

5. P ropose your solutions

The good stuff. In the proposed solution section, you show how you can alleviate your prospective buyer’s pain points. This can fit onto the problem statement section but if you have a comprehensive solution or prefer to elaborate on the details, a separate section is a good idea.

Spare no details regarding the solution you will provide. When you write a business proposal, explain how you plan to deliver the solution. Include an estimated timeline of when they can expect your solution and other relevant details.

For inspiration, look at how this business proposal template quickly and succinctly outlines the project plan, deliverables and metrics:

6. Showcase your team’s expertise

At this point, the prospect you’re pitching your solution to likes what they’re reading. But they may not trust you to deliver on your promises. Why is this?

It’s because they don’t know you. Your job is to convince them that you can fix their problem. This section is important because it acts as social proof. You can highlight what your company does best and how qualified your team is when you write a business proposal for a potential client.

This free business proposal template showcases the company’s accolades, client testimonials, relevant case studies, and industry awards. You can also include other forms of social proof to establish yourself as a credible business. This makes it that much more likely that they will say yes!

Pro Tip: Attaching in-depth case studies of your work is a great way to build trust with a potential client by showcasing how you’ve solved similar problems for other clients in the past. Our case study examples post can show you how to do just that.

7. Create a realistic timeline

To further demonstrate just how prepared you are, it’s important to outline the next steps you will take should your buyer decide to work with you.

Provide a timeline of how and when you will complete all your deliverables. You can do this by designing a  flow chart . Or add a  roadmap  with deadlines. Pitching a long-term project? A timeline infographic would be a better fit.

If you look at this abstract business proposal template below, even something as simple as a table can do the trick.

The timeline is not always set in stone, rather it’s an estimation. The goal is to clarify any questions your potential client might have about how you will deliver for the underlying B2B sales process.

8. Present your payment and terms

On this page, you can outline your fees, payment schedule, invoice payment terms, as well as legal aspects involved in this deal. You can even use the Excel Invoice Template to create professional-looking invoices (including brand logo and other elements) and add them to this page.

The adoption of invoice templates is beneficial for small businesses as it streamlines the invoicing process and maintains professionalism in financial dealings. Also, by utilizing small business invoice templates, you can efficiently manage invoicing tasks while upholding a polished and structured approach to financial transactions.

The key to good pricing is to provide your buyer with options. A  pricing comparison table can help with this. You want to give your client some room to work with. Make sure you’re not scaring off your client with a high price, nor undervaluing yourself. 

Breaking up your pricing in stages is another great way to make sure your potential client knows what he’s paying for. Look at how this simple business proposal template does this:

The legal aspects can slot right into the terms and conditions section. Alternatively, you can add them to the signature section of the proposal to keep things simple.

9. Specify the terms and conditions

Summarize everything you have promised to deliver so far. Include what you expect from your prospective buyer in return.   Add the overall project timeline from start to end, as well as payment methods and payment schedule, incorporating these details into an online project management tool. This way, both of you will be clear on what is being agreed on.

This step is very important as it outlines all the legal aspects of the deal. That is why the terms and conditions section of your proposal needs to be as clear as possible.

I recommend consulting a lawyer or your legal team when working on this section of the business proposal. If you’re a business veteran and understand the legalities of your business, you can use the same terms and conditions across all your proposals.

10. Receiving the decision

The final step of this whole process. Your client has read your business proposal and they want to buy what you have to offer.

Add a small section at the end of your proposal to get the necessary signatures. This way, you and your client can sign the proposal and the partnership becomes official.

Be sure to also include your contact information in your business proposal template. It acts as a gentle prompt to your client to contact you in case they have any questions. A professional way of doing that would be to include an e-business card with your contact details, email i.d and any other social links you want to share.

Now that you know how to write a business proposal, let’s look at how you can optimize your proposal to deliver results!

Below you’ll find some winning business proposal templates and examples to get you started. I’ve also included some design tips to keep in mind when you’re creating your next business proposal: 

1. Know your audience 

If you have some clarity on who your ideal buyer is — their pain points, their budget, deadlines, among other things — you’ve already won half the battle.

If you are a business that helps clients with everything from running giveaways or helping grow their blog, identify which customers to pitch. This is a sure-shot way to close the deal.

Mapping user personas  for your ideal buyer can help bring some clarity. It will also help you position your business proposal correctly. This improves the chance of your buyer moving your business proposal to the “Yes!” pile.

2. Put your brand front and center

If your company follows certain brand guidelines, incorporate them in your business proposal templates. Consider how business proposal examples like the one below highlight brand identity :

From the color palettes to the company logos, everything follows their brand guidelines. The result: a business proposal that’s consistent across the board.

Pro Tip: Switching this template to match your brand assets is actually pretty easy. Venngage’s My Brand Kit feature allows you to import your color palettes, logos as well as font choices. Any Venngage template can now be your template.

You can also consider this sample business proposal template:

App design companies sure do know their design. They did a phenomenal job keeping their brand colors consistent while opting for a black design. This unique color scheme also makes their white logo prominent throughout the proposal.

3. Try less text, more visuals

Have you ever read a proposal and thought to yourself, “Wow, this is all text and has no images, I love it!”? Yeah, me neither.

The free business proposal template below is a perfect example of the “less is more” principle. It does a phenomenal job of communicating what it needs to. By substituting some of the text with icons and visuals, you get a clean business proposal that’s much more scannable.

Want to keep things strictly professional? Instead of icons, you can always add your team’s headshots. This shows your buyer exactly who they’ll be working with.  

Check out this formal business proposal format for some inspiration:

4. Switch up your business proposal designs

It doesn’t hurt to go above and beyond once in a while. Jazz up your business proposal template with some extra colors. This helps make your business proposal more engaging. It also helps your buyers retain information faster.

The business proposal example alternates between black, white and grey backgrounds. It still manages to maintain consistency in its branding . Just switching up your backgrounds once in a while can also bring in some variety to an otherwise standard business proposal.

This SEO business proposal sample proves that it’s possible to switch up the colors in every other page. But it still maintains the same color scheme across the entire proposal just like a professionally designed website: 

Pro Tip: Not a color expert? Our guide on picking colors can help you pick the right color scheme for your proposals.

A business proposal usually aims to answer the following questions: 

• Who you are and what your company does
• The problem your buyer is facing
• The solution your company offers to alleviate the problem
• How your company will implement this solution effectively
• An estimate of resources (time, money, etc) required to implement the solution

You can see how this sample business proposal template covers the above points.

Notice how this proposal template addresses the same project like in one of the previous templates, but uses a completely different design style (more retro, while the previous business proposal template is more modern and minimalistic).

Generally, there are three types of business proposals:

1. Formally solicited 

A formally solicited business proposal is made when you respond to an official request to write a business proposal.

In this scenario, you know all the requirements and have more (if not all) information about a prospective buyer. You simply need to write the business proposal for your buyer to evaluate so you can begin the sales process .

2. Informally solicited 

Informally solicited business proposals are written when there isn’t an official request for a proposal. A prospective buyer is interested in your services and asks for a proposal so they can evaluate it.

An informally solicited proposal requires a lot more research from your end. These types of proposals are usually created out of informal conversations. They are not based on official requests which often contain more detail.

3. Unsolicited 

Think of this as a marketing brochure or a cold email. Unsolicited business proposals will often take a generic, one-size-fits-all approach to business proposals. Unsolicited proposals lack any understanding of the buyer or their requirements.

But with additional market research, personalization and identifying customer pain points, you can propose a customized solution based on your buyer’s needs. This can be a very persuasive approach, such as in this business proposal example:

FAQ about business proposals

What is the purpose of a business proposal.

A business proposal aims to streamline the B2B sales process (which is often complex) between you as a seller and a buyer.

It does this by serving the dual purpose of acting as a source of information. The proposal also acts as a sales pitch aimed at convincing your buyer why they should buy what you have to offer.

What are the best practices for business proposal design?

• Do a thorough spell-check. The goal of your business proposal is to convince your buyer why you’re the perfect person for the job. A proposal with typos or grammatical errors communicates the opposite. A thorough spell-check before you send your proposal is a must.
• Keep things clear and readable: Clarity is an important aspect that you have to ensure in your business proposal. If you want your proposal to hit home and make an impact on the buyer, you have to write it in an understandable way. To keep things clear and readable, there are a couple of things that you can do. You can, for one, take care to use easy wording and segmented sentences from the get-go. You can also try paraphrasing the hard parts of your proposal once you are done writing it.
• Let your brand shine. As discussed before, writing a business proposal is all about knowing your ideal buyer and focusing on their pain points. But that doesn’t mean your business proposal template has to be boring. Demonstrate how different you are compared to other companies. You can do this through your brand guidelines, by using more visuals, switching up your proposal design or showing off your personality in your writing . 
• Create a business proposal PDF. Downloading your business proposal in PDF format allows you to attach other collaterals with your business proposal. These can include a company explainer video or case studies showcasing the work done with past clients. Also, who doesn’t love saving paper?

How long should your business proposal be? 

The length depends on the scope of the work as well as the complexity of the project. Here is a one-page business proposal template:

Can your business proposal template really be one page? Yes, as long as you understand who your buyer is and their pain points. You should also have the ability to communicate everything your ideal buyer needs to know about your business in a succinct manner.

Or if you’re feeling adventurous how about just two pages? Often, clients prefer if you go straight to the point and avoid all the fluff.

For example, this green modern marketing proposal template wastes no time in getting down to brass tacks:

Need more inspiration? Check out this blog on the 5 marketing proposal examples that’ll help elevate your business.

There is no one size fits all approach when it comes to deciding how many pages you should include in your business proposal template. And at the end of the day, “the only rules are the ones you set for yourself”.

At the end of the day, writing winning business proposals that sell is all about you understanding your buyer, their potential pain points and positioning yourself as someone who can alleviate those pain points. 

Now that you know how to write compelling business proposals, what are you waiting for?

Take action and start creating your own business proposals to close more deals and grow your business today!

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Business Plan and Proposal: Everything You Need to Know

A business plan and proposal are two different documents with two different purposes and functions. 3 min read

A business plan and proposal are two different documents with two different purposes and functions. A business plan is a document that clearly spells out how a business intends to realize its objectives and goals, while a business proposal is a sales document that a business entity uses to request a contract from a client.

Business Plan vs. Business Proposal

A business plan and a business proposal are different from each other by content, goals, writing style, and structure. The major difference between both is that a business plan is a document that presents facts, while a business proposal is a request for a deal and a quotation of prices.

A Business Plan

You can think of a business plan as the documentation of a company's grand vision. Business plans are naturally tactical. It's like stating where and when you want to start, when you want to get to the next point in view, and how you intend to accomplish that progress. A business plan includes descriptions of how the business is intended to run, the details of financial goals, possible business rivalry, marketing strategy, executive summary, and other factors that affect a company's planned business growth.

A business plan is particularly effective in making potential investors interested in a company (especially a startup company that's yet to make a name in its industry). Additionally, a business plan can provide an idea of what a company requires for professionals such as attorneys, accountants, and potential employees. A business plan distinctly describes the scope of the business, and in so doing, clears your thoughts as a business owner.

The business plan should be honestly made because it's the outline of the company's vision. It indicates whether or not the business goals of the company are realistically achievable. Experts say an effective business plan would take approximately six weeks of thorough research and groundwork to create. In other words, you typically can't create an effective business plan in one day, present it to potential investors the next day, and achieve desired results.

A Business Proposal

A business proposal goes to a prospective client directly from an established business. It's an attempt to sell a business entity's service or product to a client, and not an attempt to sell the business itself. Also, a business proposal isn't an estimate. Though costs and certain other details will be provided in the business proposal, an estimate is a lot more unofficial and simply a provision to skim over the costs. It doesn't present the entire picture.

Basically, business proposals show a particular idea, such as a new, profitable undertaking. The proposal is intended to get investors to support the particular business endeavor being suggested. For instance, a well-known eatery chain may wish to extend its business to a nearby state. Such an eatery would have to compose a business proposal in order to get the financial support of its target investors.

Though the business proposal provides an overview of what the company does (similar to a business plan), its major objective is to provide the details of the suggested business idea, including providing answers in advance for any concerns that could be raised by potential investors.

Components of a Business Plan

Basically, a business plan has three components: business model description, sales tactics, and financial goals. However, more elaborately, it has the following sections of information:

• Executive summary
• Description of products and services
• Industry analysis (analysis of possible business rivalry)
• Marketing strategy
• Operating plan
• Structure of leadership
• Internal analysis
• Built-out plan
• Introduction of management
• Financial goals (deliberations on monetary concerns, and how to address them and achieve expected results).

Solicited vs. Unsolicited Business Proposals

A solicited business proposal, when presented in response to a request for proposal (RFP), should be in the format requested by the client in their RFP. The same format may or may not be used for an unsolicited business proposal. Its purpose is to suggest and develop a business idea. Therefore, it's recommended to use the same format or some other format that's well-known in the field of endeavor.

An unsolicited business proposal offers a business entity the flexibility to choose what structure they deem appropriate. However, the proposal is expected to meet industry standards, no matter what format is used. For instance, it should emphasize major areas of interest, be thoroughly researched, offer a proposition of value, and feature a call to action.

If you need help with a business plan and proposal, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

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Business Plan vs. Business Proposal

Back to Business Plans

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on February 27, 2023

A business plan and a business proposal are similar documents. In fact, in some cases the terms can be used interchangeably, such as when both aim to attract investment. 

But generally speaking, a business proposal tends to have broader scope, and this handy guide lays out precisely how these two common terms differ. 

• What is a Business Plan?

A business plan is a detailed document laying out how the business will function and develop in its first few years. The key is the “plan” part of the name, as it will specify how you will launch, gain customers, operate, make money, and, with any luck, expand. 

Yet what many first-time business owners seem to forget is that a business plan is not a static document. The initial version is based largely on assumptions, supported by research. But as you run your business you’ll learn what works and what does not and make endless tweaks to your plan.

Thus, creating a business plan is not a one-time action – it’s a dynamic and continuous process of crafting and adapting your vision and strategy. 

Components of a Business Plan

A business plan is generally much more detailed and broader than a business proposal, and has several elements :

• Executive Summary  
• Company Description/Overview
• Products or Services Offered 
• Market Analysis 
• Marketing and Sales Strategies
• Operations and Management  
• Financial Plan
• What is a Business Proposal?

A business proposal is created in connection to a specific business deal being offered by one party to another. As mentioned, when you take a business plan to an investor, you’re proposing a business relationship, so in this case a business plan and a business proposal are much the same.

But a business proposal could also be for others purposes, including:

• Bringing on a partner
• Proposing a management contract to a person you want to hire 
• Proposing a business relationship with a potential customer 
• Proposing a partnership with another company
• Suggesting a deal to a member of your board of directors

A business proposal may offer specific terms for the potential relationship, or it may be just about the benefits the relationship will bring, with terms to be negotiated later. Essentially, it’s a sales tool to get people or companies to do business with you in some way. 

Business proposals can be structured in various ways, but usually, they’ll include a summary of what your company can offer, a scope of the work to be done together, and sometimes, a price quote or a proposed structure of the business relationship.

Clearly, a business plan and a business proposal are similar – and can even be one and the same. At the same time, they can also serve very different purposes. Unlike a business plan, a business proposal can have a variety of aims and thus does not have a “one size fits all” structure. 

Whichever one you need, be sure to take your time with the research and writing so your business has the best chance for success. 

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Business Plan vs. Business Proposal

Business Plan Template

• May 15, 2024

When you start a new business or own a young company, you often hear terms like business plan or business proposal. But the question is: do you need a business plan? Or is it a proposal that you need? Or both?

Being new to the game, these terms can seem quite intimidating, and you probably don’t know where to start.

Don’t worry. We’ve created a simple business plan vs. business proposal comparison so you can determine which one to prioritize.

Let’s start by defining them!

What is a business plan?

A business plan documents a company, its business objectives, and how it plans to achieve them. It includes data regarding business goals, marketing strategies, products, services, market research, financial projections, and the dream team.

Pretty much everything a company will use to achieve its intentions.

Okay! And what about the business proposal?

What is a business proposal?

On the other hand, a business proposal is a document that describes your business’s offerings, like a product or service, to help you win potential clients and partners.

It also outlines your business, including its unique value proposition and how your company can help solve customers’ specific problems.

Now that we know the two business documents aren’t the same let’s see how they are different and in what ways.

Business plan vs. business proposal: How are they different?

Even though used interchangeably (and wrongly), a business plan and proposal are poles apart. Here’s how:

Before you ask why you need a business plan , it’s, first and foremost, to legitimize a business idea that you’ve been brewing in your head.

But it’s also to document company strategies, objectives, and operations that help you create a clear idea on how to achieve your company goals. All that data becomes one source of truth that works as a communication tool. That becomes your golden ticket to wooing investors and lenders.

On the other hand, a business proposal’s purpose is entirely about convincing a potential client and partner that your project is worth their time and money.

Unlike a business plan, it only focuses on a specific product, service, or opportunity instead of the entire business.

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2. Components and Structure

When you write your business plan , it will typically follow a specific structure containing the following components:

• Executive summary: This summary summarizes your entire business plan, highlighting the most important aspects, such as your company’s mission, financial projections, and vision statement.
• Company description: It reveals your company’s history, mission, value proposition, detailed description of products and services, achievements, and target market.
• Industry or market analysis: This is an analysis of the industry landscape to gain statistics about market needs, size, trends, competitors, and target demographics.
• Marketing plan: This includes different marketing strategies and approaches your company will take to market its products and services. It can be your pricing strategy, sales and distribution plan, and unique selling proposition.
• Operations plan: This component reveals how a company’s operations would look on a day-to-day basis.
• Organizational structure and management team: This section provides an overview of your company’s structure and how its management teams will execute the operations plan effectively.
• Financial projections and goals: This section contains a company’s financial performance, including income, sales goals, cash flow projections, and balance sheets.

Similarly, when you write a business proposal , you’ll typically encounter a structure as well. It goes like this:

• Cover or title page: To make a first impression. It can contain aesthetic visuals.
• Introduction: To introduce yourself and your company. Also, briefly explain how your product or service will solve a specific problem.
• Statement of the problem or project: To explain your understanding of the customer’s need, its importance in addressing it, and your right-fit, proposed solution.
• Table of contents: To make your data essay accessible.
• Project details: To communicate essential data, including objective, scope, timeline, key stakeholders, disclaimers, cost, and conclusion.
• Agreement with a signature box: To obtain the client’s signature.

3. Audience

A business plan’s target audience is internal stakeholders, investors, and lenders interested in your company’s long-term goals and path to success.

On the flip side, business proposals go to potential clients from established businesses. They target external or new clients, partners, or funding agencies with a specific focus on:

• Addressing customer needs
• Solving customer problems
• Or seizing opportunities

Do you know how many types of businesses exist today? Two words: Too many!

Now, that implies there are many different types of business plans . But here’s a quick list of the most common types:

• Startup business plan: This plan describes the foundation of a new business with room to adjust as the company grows. It’s given to potential investors to ask for startup funding.
• Internal business plan: In this plan, company leaders communicate business goals, strategy, and performance. The aim is to keep the board and the team in sync regarding business objectives.
• Strategic business plan: This plan documents the framework required to keep long-term goals and company vision intact.
• Growth business plan: Also known as an expansion plan, this plan describes how a company is trying to grow and hence requires greater resources like more employees, funds, materials, etc.

Business proposal types can be broadly divided into two categories:

• Solicited business proposals: In this case, a prospective client requests the informational document from you directly or expects to receive it—implicating their interest in your products or services.
• Unsolicited business proposals: Here, no client requests the documents. Instead, you take the cold email approach and send your unsolicited proposals to people you think are prospective clients or partners.

Business Proposal and Planning Best Practices

It’s already challenging to overcome market entry barriers in saturated markets and persuade potential investors. Creating a compelling business proposal and plan shouldn’t be too!

Here’s how to go about it:

• Clearly define your business goals and objectives.
• Make sure you get your audience right. (Business plans and proposals have different audiences, remember?)
• Conduct in depth research and analysis.
• Use pictures along with words, such as visuals and statistics, to support your claims and projections.
• Pay attention to the writing style, structure, and tone depending on your audience and purpose.
• Use software like an AI business plan generator or proposal templates to save time and effort.
• Review and revise regularly.

Start creating effective business plans and proposals using Upmetrics

It’s okay if you were confused about the difference between a business plan and a proposal before today. You now know the distinction between the two lies in their purpose, components, structure, audience, and type.

While a business plan provides a thorough overview of the entire business and targets internal stakeholders, investors, and lenders, a business proposal focuses on specific projects or opportunities and targets external clients, partners, or funding agencies.

When you understand these differences and employ the best practices in creating both documents, your business can effectively communicate its vision, strategy, and value proposition, securing a solid spot in this competitive world.

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Frequently Asked Questions

What is the difference between a business plan and a business idea.

A business idea is a concept’s initial spark for a product, service, or opportunity. However, a business plan is a detailed document outlining how a business idea will be executed and managed.

How many pages is a business proposal?

A good proposal is 10-20 pages long. However, it can be longer based on the industry, buyer requirements, product or service type, the scale of buyer needs, and other aspects unique to the business.

What comes first, a business plan or business proposal?

The business plan comes first since it legitimizes a business idea. Then comes a proposal because it’s specific to a particular project or opportunity and not the business as a whole.

Do I actually need a business plan?

A business plan is a detailed roadmap for your entire venture. It helps you gain investments, beat competition, make sound decisions, communicate with stakeholders, and identify risks. So, yes, you need a business plan.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Business Proposal and Business Plan: What’s the Difference?

Business prop os al and business plan are relatively similar but distinctively different terms, making many use these two words interchangeably.

You’ll see distinguishing features in their content, structure, writing style, purpose, and goals. Even so, there are various similarities between a business proposal and a business plan.

The main distinguishing factor to note is that a business plan documents the growth strategy and presentation of facts, while a business proposal is a specific ask for an individual to take action (buy your service/product, partner with you in business, and invest in a particular business). 

Let’s look at the two terms in detail and highlight a few examples when it’s appropriate to use.

What is a Business Proposal?

A business proposal is a company’s documentation that goes directly to its prospective client. It’s usually written in an attempt to sell a company’s product or service.

While a business proposal is not an estimate, it’ll have certain financial details. An estimate is unofficial and simply a way to skim over the real costs without presenting the real picture.

In a nutshell, a business proposal shows a particular business idea intended to get investors to support this particular endeavor being suggested.

Although a business proposal shows an overview of what the company does (just like a business plan), its main aim is to provide information about the suggested business idea. 

It answers any questions or concerns potential investors may have about the suggested business idea.

Prospero business proposal software can help you easily draft a competitive and compelling proposal to beat other bids. With its user-friendly interface and various proposal templates , you don’t have to create everything from scratch.

Let’s now look at the importance of a business proposal and a business plan.

Reasons for a Business Proposal

The main reason a proposal is written can only be understood based on the type of proposal you want to draft. They’re two types of proposals; invited and non-invited proposals.

Invited proposal

An invited proposal is submitted in response to an advertisement from a potential client. A good example is government agencies inviting contractors to bid on a particular service.

Alternatively, businesses request for proposals from a group of suppliers they’re willing to consider as prospective clients.

Non-invited proposals

Non-invited proposals, on the other hand, are submitted to potential clients even when they haven’t requested one. In both instances, a company must develop a compelling proposal to convince buyers. 

Proposals are limited in the scope of a particular need or project and written to specific audiences.

The main reason why businesses write proposals is to solicit or grow company opportunities. You can think of a proposal as an external document to present or sell the company to external players.

It shows what the business is all about and how it intends to carry out a particular project or use that opportunity to generate revenue for both parties.

What is a Business Plan?

A business plan is a factual description of a company on the operational and executive levels. It’s a written presentation of a company’s grand vision.

The document is typically tactical; it states where and when you want to start a project. Moreover, it will highlight when you’ll want to move on to the next phase of the project and how to accomplish that project.

It makes potential investors interested in a company (especially small startups that haven’t made a name for themselves).

A business plan will also provide an idea of what the business requires from professionals, such as attorneys and potential employees. It indicates whether or not a company’s business goals are realistic, let alone achievable.

Reasons for a Business Plan

Business plans are visions for your company and how you intend to execute all these visions. They outline financial projections of what a business will cost to develop and operate, plus an estimate of the revenues the business will generate.

Its main purpose is to provide a reasonably detailed description of the company for use by potential investors, suppliers, accountants, and prospective employees, among other people. For instance, one of the prerequisites for an SBA loan is an extensive and organized business plan.

Moreover, it’ll provide a quick but comprehensive view of what your company does and its chances for success.

The main reason companies write business plans is to convey and record information.

Structure of a Business Plan and a Business Proposal

Here, the two documents have various components featured on them. Here’s a detailed description of their structure below:

Structure of a Business Proposal

Overall, the structure of a proposal will depend on whether it’s solicited or unsolicited.

A solicited proposal responding to a request for proposal takes the format of an RFP. Here are the components of a business proposal:

• Usually, it takes a quick description of products and services relevant to the RFP goals.
• Outlining the company’s scope of work.
• Answers to questions posed in the RFP.
• Estimate detailing tools, materials, labor, delivery, and other elements that’ll affect the project’s cost.

An unsolicited proposal to create a business opportunity follows the same format. It, however, anticipates questions potential clients might have .

A proposal is a marketing document designed to convince prospects to do business by presenting a value disposition plus a call to action.

Try creating your business proposal here .

Structure of a Business Plan

A business plan has three components; sales tactics, business model description, and financial goals. More elaborately, it consists of the following section of information:

• A summary of the executive
• Product/service description
• Industry analysis
• Operating plan
• Marketing strategies  
• Internal analysis
• Built-out plan
• Structure of leadership 
• Introduction of management 
• Financial goals

The business plan is more like an information document displaying the company’s operation and potential.

Many companies fail to follow this format while writing their business plan or proposal, a reason why most don’t win bids or prospective clients. 

Using Prospero to write a professionally compelling business proposal and integrate your business plan can help you get investors interested in your company so that they want a sit at the table.

What’s the Difference Between a Business Plan and a Proposal?

Business proposals differ from business plans in content, writing style, purpose, goals, and structure.

The sole distinguishing factor between the two terms is that a business plan is a factual presentation of facts, whereas a business proposal is an external market document that highlights a quote and a call to action.

Let’s look at some distinguishing features between the two terms:

Business Proposal vs. Business Plan

A business plan provides a detailed description of how the business was set up, plus its project.

On the other hand, a business proposal is a purposeful sale document illustrating how a business will execute a particular project. Usually, it’s drawn and submitted to another enterprise or organization putting forward a business arrangement.

In addition, the structure of a business plan contains three elements, including a description of the business model , sales tactics, and financial projections.

On the other hand, the structure of a business proposal takes the format of an RFP if it’s solicited.

A business plan shows the scope of a business and, in turn, clarifies your thinking as a business owner and also gives you information that you hadn’t considered before.

Conversely, proposals show a limited scope of a specific project or need for a particular audience.

While trying to craft these two documents, you must seek proficient experts to help you write compelling proposals and plans to convince potential investors and other partners to invest in your business.

Types of Business Plans and Proposals

A business proposal can be divided into solicited and unsolicited proposals. How different are they? Let’s delve right in.

Solicited Proposals

This is presented in response to a request for proposal (RFP) . It’s usually submitted responding to a work statement from sponsors.

These sponsors use the request for proposal to solicit a specific proposal for research, training, or to provide services or goods. The RFP includes standard terms, conditions, and assurance that the company is asked to accept. 

A good example is when an organization or government agency wanting to buy products or services from a particular sector invites contractors to place bids.

In other scenarios, some businesses will ask suppliers to provide RFP to those they’re considering a partnership with.

The business is competing against other businesses that want to secure the same contract. It’s, therefore, in their best interest to provide compelling and competitive business proposals.

Prospero can assist you in such instances; it has the experience and expertise to curate excellent proposals that win contracts. Call it today to generate a proposal with its Prospero business proposal generator.

Unsolicited Business Proposals

This proposal is submitted to potential clients, even when they haven’t asked for one.

In such circumstances, a business wanting to secure a contract will suggest a product or service to a potential organization in return for funds.

A good example is when an organization tends a proposal to develop an application or renders some training services to its staff.

Just like solicited business proposals, a company must curate a well-researched proposal that will convince prospective clients you’re the right candidate for the job.

Types of Business Plans

Business plans are also categorized into four types, including

• short plans,
• presentation plans,
• working plans,
• and what-if plans.

These types require different degrees of labor and are not always proportional to results.

Presentation Plan

Using PowerPoint to present information about a business has revolutionized the way companies create and showcase their business plans. Many business owners lose sleep trying to figure out how to present a plan that can significantly impact their company’s future.

Therefore, it’s crucial to understand the ins and outs of a business plan presentation in order to effectively communicate your ideas and strategies to potential investors or stakeholders.

Working Plan

This is a plan used to operate your business. The plan can be long in detail but shorter in presentation. There’s no room for informality or candor while preparing it.

If you’re considering presenting this plan to a loan committee, you’ll have to describe a competing rival primarily on a price basis.

A working plan used to create outlines for internal use may have some elements omitted; probably, you’ll not need to add an appendix with a resume of key executives.

Internal policy considerations may guide what to include or exclude in the working plan.

What-If Plan

A business must prepare for unforeseen circumstances. The company may want to have a contingency plan when seeking bank financing.

This plan is usually curated in the worst-case scenario that you can foresee your business surviving. It’s important to shelter yourself from things like loss of market share, the defection of a key member of management, and heavy price competition.

A contingency plan can help cover the fears of bankers and investors by demonstrating that your business has considered more than one rosy circumstance.

Moreover, your business can benefit from a what-if plan in situation acquisition. It can help you outline the worth of the acquisition and how it can affect the core business.

In summary, you can say that a business plan is more of an internal document, whereas a business proposal is an external one that is used to sell the product or service of a company to prospective clients.

In addition, a business plan guides the activities of a company internally in terms of revenue projections and marketing strategies that must be achieved in a particular time frame.

On the other hand, a business proposal will show external parties like a government agency and sponsors what the business is all about to convince them to invest in your business. The proposal should outline how you will carry out a particular project to generate revenue.

Whether trying to curate a business plan or proposal, it has to be compelling and competitive to beat other bidders. 

Why Not Give Prospero A Try?

Working with Prospero to generate professionally written proposals or plans is essentially wise. It has a variety of templates for different industries and comes with a lot of customization options. Some ready-made content are also available so you won’t need to write from scratch every now and then.

You can manage and track the performance of your proposals through its built-in analytics, so your sales team would be more productive and efficient.

It’ll increase your chances of securing contracts and proposals that can take the business to the next level.

Sign up today and create your first proposal!

ABOUT THE AUTHOR

Abbey Claire Dela Cruz

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How To Write A Business Plan (2024 Guide)

Updated: Apr 17, 2024, 11:59am

Table of Contents

Brainstorm an executive summary, create a company description, brainstorm your business goals, describe your services or products, conduct market research, create financial plans, bottom line, frequently asked questions.

Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan outlines short-term and long-term goals, budget and whatever else you might need to get started. In this guide, we’ll walk you through how to write a business plan that you can stick to and help guide your operations as you get started.

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Drafting the Summary

An executive summary is an extremely important first step in your business. You have to be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest. This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.

Ask for Help

When drafting the executive summary, you should have a few different options. Enlist a few thought partners to review your executive summary possibilities to determine which one is best.

After you have the executive summary in place, you can work on the company description, which contains more specific information. In the description, you’ll need to include your business’s registered name , your business address and any key employees involved in the business. 

The business description should also include the structure of your business, such as sole proprietorship , limited liability company (LLC) , partnership or corporation. This is the time to specify how much of an ownership stake everyone has in the company. Finally, include a section that outlines the history of the company and how it has evolved over time.

Wherever you are on the business journey, you return to your goals and assess where you are in meeting your in-progress targets and setting new goals to work toward.

Numbers-based Goals

Goals can cover a variety of sections of your business. Financial and profit goals are a given for when you’re establishing your business, but there are other goals to take into account as well with regard to brand awareness and growth. For example, you might want to hit a certain number of followers across social channels or raise your engagement rates.

Another goal could be to attract new investors or find grants if you’re a nonprofit business. If you’re looking to grow, you’ll want to set revenue targets to make that happen as well.

Intangible Goals

Goals unrelated to traceable numbers are important as well. These can include seeing your business’s advertisement reach the general public or receiving a terrific client review. These goals are important for the direction you take your business and the direction you want it to go in the future.

The business plan should have a section that explains the services or products that you’re offering. This is the part where you can also describe how they fit in the current market or are providing something necessary or entirely new. If you have any patents or trademarks, this is where you can include those too.

If you have any visual aids, they should be included here as well. This would also be a good place to include pricing strategy and explain your materials.

This is the part of the business plan where you can explain your expertise and different approach in greater depth. Show how what you’re offering is vital to the market and fills an important gap.

You can also situate your business in your industry and compare it to other ones and how you have a competitive advantage in the marketplace.

Other than financial goals, you want to have a budget and set your planned weekly, monthly and annual spending. There are several different costs to consider, such as operational costs.

Business Operations Costs

Rent for your business is the first big cost to factor into your budget. If your business is remote, the cost that replaces rent will be the software that maintains your virtual operations.

Marketing and sales costs should be next on your list. Devoting money to making sure people know about your business is as important as making sure it functions.

Other Costs

Although you can’t anticipate disasters, there are likely to be unanticipated costs that come up at some point in your business’s existence. It’s important to factor these possible costs into your financial plans so you’re not caught totally unaware.

Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.

How do I write a simple business plan?

When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.

What are some common mistakes in a business plan?

The most common mistakes in a business plan are common writing issues like grammar errors or misspellings. It’s important to be clear in your sentence structure and proofread your business plan before sending it to any investors or partners.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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Difference Between Business Plan and Business Proposal

One of the most searched queries on Google is "business proposal vs business plan", and we are here to break the confusion.

April 13, 2023

What's Inside?

You are starting a new business, and you aren't sure what you need to do. You heard that you needed a business proposal and a business plan, but you weren't sure what's the difference between them.

You did some research and couldn't find what you are looking for... You decided to create both of them, but you need weeks to write and refine them.

Don't worry, we are here to remove this confusing process. Let's see what's the difference between them. You may, and probably do need both of them. But which one should be your priority?

The Difference Between a Business Plan and a Business Proposal

When you're starting a business, one of the most important things you'll need to do is create a business plan . This document will outline your company's goals and strategies for achieving them over the next five years.

A business proposal , on the other hand, is a sales document that you put together to pitch potential projects to clients. It's not the same as a business plan, and it usually includes cost quotes for potential projects.

The main difference between a business proposal and a business plan is that, while a business plan is informative, a business proposal is intended to showcase operations, goals, and potential.

Executive Summary

The executive summary of a business plan will include information about the company leadership structure or the introduction of management. Generally, business plans include an executive summary part while business plans don't.

We have seen some samples that use executive summaries but since the main goal is to close a deal. We suggest keeping them short and clean.

The business proposal format depends on whether the business is solicited or unsolicited . Details of products and services offered, the scope of work and responses to specific questions in an RFP are included in a business proposal.

A business plan documents the vision of a business and how it will be achieved. A business proposal offers comprehensive information for potential investors, suppliers, accountants, etc.

A proposal shows the external player what the company is all about and how it intends to carry out its project. Keep these differences in mind when you're putting together your next business presentation --you'll need to tailor your content accordingly!

What Are Business Plans?

A business plan is a document that outlines the business goals, strategies, and tactics a company will use to achieve those goals. The business plan also includes an overview of the company, its management team, the target market, and the products and services the company plans to offer.

It usually includes information about the company's products and services, target market, marketing plans , financial forecasts, and management team bios.

Here's a sample template to use while creating a detailed business plan.

What Is The Purpose of a Business Plan?

A business plan is a key document for any business. It lays out the goals and strategy of the business and helps to ensure that everyone involved in the business is on the same page. It can also be used as a tool to help secure funding from investors or banks.

A business plan is a document that outlines the strategy and goals of a company. It can be used as a planning tool , to track progress, or as a basis for making decisions . A well-written business plan provides a roadmap for the business , and it can help attract investors or partners.

There are many reasons to create a business plan. Some of the most common reasons include:

• To track progress - A business plan can help you track your progress and ensure that you are on track to achieve your goals.
• To make decisions - A business plan can provide guidance when making decisions about the future of your company.
• As a planning tool - A business plan can help you identify potential problems and solutions, and it can be used to forecast future growth.
• To attract investors or partners - A well-written business plan can help you attract investors or partners who share your vision for the company.

What is a business proposal?

A business proposal is a written document that offers a solution to a problem or a way to achieve a goal. It is often used to sell products or services to a potential customer. A business proposal must be well-written, clear, and concise in order to convince the reader to take the desired action.

A business proposal is a formal response sent to an RFP (request for proposals). It is a way for the seller to convince the buyer that their proposed solution is the right one in order to win business. Business proposals are meant to persuade a prospective client.

A business proposal typically consists of four main points: what are the challenges, how your solution solves the problems, why they should choose you over others, and the best pricing options available. The price is typically stated in the document. If a business is requesting proposals, they should be sent in their format. An RFP response should include specific details about the scope of work and the cost estimate.

Here's a sample template to use while creating a detailed business proposal.

Why do you need a business proposal?

A business proposal is a key part of the business development process . It is a document that outlines the business goals, strategies, and tactics that will be used to achieve those goals. A proposal is used to convince potential clients or partners that your business is the best option for them.

It's typically used to pitch an idea to a potential client or customer. A well-crafted proposal can help you win new business and close deals.

Your company might be expanding into a new market and need to propose a new product or service. Or, you might be approached by another company with an opportunity you'd like to explore. Maybe you've identified a gap in the market and want to propose a new product or service to fill it.

How To Prepare For a Business Proposal?

Well, we do have a comprehensive guide to business proposal creation with templates and examples, but if you need a more brief explanation, keep reading!

When preparing for a business proposal, it is important to do your research and understand the client's needs. You should also have a clear understanding of your own company's capabilities and what you can offer the client. Additionally, it is important to be well-organized and to have a strong pitch.

You should have a clear understanding of your target audience and what will appeal to them. You also need to have a good grasp of the competition and what they are offering. In addition, you should be familiar with the terms and conditions of any potential contracts that may be involved.

Your proposal should be neatly formatted and easy to read. It should also be free of grammatical errors and typos. Be sure to proofread your work carefully before submitting it.

Make sure you provide complete contact information, as well as an outline of your proposed solution or service. If possible, include testimonials from past clients who have been satisfied with your work.

Remember that you are offering a valuable service that can help the reader achieve their goals. Believe in yourself and your ability to succeed, and you will be able to deliver a winning proposal every time

How To Write a Business Proposal?

When writing a business proposal, make sure to follow this brief outline:

- Introduce yourself and your company

- Outline the proposal's purpose

- Explain the problem that you're trying to solve

- Describe your solution

- Explain the benefits of your solution

- List your qualifications

- Request a meeting

It should include an overview of the product or service, information about the company proposing it, financial projections, and terms and conditions. A well-crafted proposal can help your company win new contracts and increase sales.

Here's another sample template you can use while creating a business proposal:

Business Proposal Template Checklist

Here's a story of our customer John who joined the Decktopus community 2 years ago.

John had been working in sales for years, but he had never worked in a company that sold products. When he was hired by a new startup, he was excited about starting making sales and increasing profits. However, he soon realized that there was no one in the company who knew how to sell. The founder of the company told him that he would need to create a presentation template to share with the other reps.

John wasn't sure where to start. He read article after article, trying to gather information about what made a good business proposal. After weeks of research, he finally created a template that he felt confident in sharing with his fellow reps. He was excited to see how it would help them increase sales and profits.

This is the outline we gathered while our support team helped him along the way:

-Executive Summary

-Problem/Opportunity Statement

-Business Plan

- Marketing Plan

-Financial Plan

Types Of Business Proposals

An unsolicited proposal is one in which the company offers a product or service to a potential customer who has not solicited it. Here's an unsolicited proposal template .

A solicited proposal is one in which the company responds to a request for proposal (RFP) from a potential customer. Here's a solicited proposal template .

A proposal to bid is a document that a company submits to a potential customer in response to an RFP.

The purpose of the proposal to bid is to persuade the potential customer that the bidder's product or service is the best option among those being considered.

Here's a proposal to bid template .

Business Plan Structure

A business plan has three main sections: the executive summary, a description of the business model, and financial projections.

The first section is an introduction that should be no more than one or two pages long. It should include a brief overview of your company, its products and services, and how you plan to make money.

The second section, a description of the business model, provides details about your company's competitive landscape, industry trends, and how you plan to reach your target market.

The marketing model is an informative section that should include detailed information about the industry competition and build-out plan. This part of the document can be several pages long and will help investors understand your company's place in the market.

While all three sections are important, remember that potential investors will likely focus on the financial projections most closely when deciding whether to invest in your company. The financial projections section is important because it shows potential investors how you expect your business to grow over time.

A well-crafted business plan can help convince potential investors to put their money into your company.

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How to Write a Business Plan for a Small Business

Noah Parsons

24 min. read

Updated September 2, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of writing a business plan

If you’re reading this guide, then you already know why you need a business plan . 

You understand that writing a business plan helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your business plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After writing your business plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

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• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

When writing a business plan, the produces and services section is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

When writing a business plan, the operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

The last section of your business plan is your financial plan and forecasts. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI to write a business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).

But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of writing a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Writing a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of writing a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

What’s the difference between a business plan and a strategic plan?

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan

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The difference between a business plan and a business proposal

Whether you are in business, employment, or college pursuing a degree, understanding the basics of a business proposal is a skill that you must have. Most people use the terms business plan and business proposal interchangeably. These two documents are very different. A business plan is different from a business proposal in terms of content, structure, writing style, goals, and purpose. The most important difference to note is that a business plan is a written presentation of fact while a business proposal is a price quote and a call to action.

According to an article on Entrepreneur.com , a business plan is a document that outlines a detailed description of how a business is set up. It is a 5-year plan of a business showing the company structure, products and services, market findings from research, marketing strategy, planned budget and financial projections. It can be simply defined as the factual and wide description of a business and its projections. A business plan can be drawn by a start-up as well as a going concern.

A business proposal is a purposeful sales document formulated to illustrate how a business will carry out a project, give the value of the project to the prospective client and ask for the client's business. Therefore, it is a document that a business submits to another enterprise or organization putting forward a business arrangement.

A business plan ideally comprises three elements: description of the business model, the marketing strategy and financial projections. It includes informative sections, specifically the executive summary, business description (products and services), marketing plan, industry analysis (competitor analysis), build-out plan, internal analysis, operations plan, leadership structure or introduction of management, and financial projections -- discussion of financial concern and projection of results. The opening page is the executive summary. It can be an intense abstract or a detailed but precise marketing tool to draw interest in the plan. The business plan is an informational document intended to factually showcase the company's operations, goals and potential.

According to Sean Kerner from Tech Republic, the format of a business proposal depends on whether it solicited or unsolicited. A solicited proposal and in response to an RFP should take the format called for in the RFP. Usually, this entails a quick description of the services and products offered by your business and clearly showing their relevance to the goals of the RFP, a replication of the scope of work, response to specific questions raised in the RFP and a quotation detailing materials, equipment, labor, delivery and other basics of the project outlay. An unsolicited business proposal may or may not take the same format. The intention is to create and develop a business opportunity, and so it is advisable to follow the same format or any other that is popular with the industry or business. Be keen to address all the questions that the potential client might have. With an unsolicited proposal, it is up to you to decide the structure. Whichever format you choose, ensure that the proposal is professional, highlights key areas of interest, presents a value proposition, is thoroughly researched and loaded with facts and with a call to action.

A business plan is required for two main reasons. It clearly defines the scope of the business and in the process clarifies your thinking as the proprietor of the business. It offers you information that had not been considered previously. Simply put, it documents the vision of the business and how it will be achieved. This guides the business towards a practical strategy to guide the business for the time-frame enclosed by the plan. It is the blueprint to success of the business. It outlines strategies for converting the ideas into core competencies. It also presents the financial projections of starting and operating the business as well as estimation of revenue generation from business activities. Secondly, it offers comprehensive business information for use by potential investors and employees, suppliers, accountants, attorneys and other stakeholders. The primary function for a business plan is to record and pass on information.

A business plan is also used to raise funds in form of a business loan, venture capitalist, angel investors or incubation. When approaching these money lenders you must present a thoroughly researched and realistic business plan. The investors need to be sure that you are confident and truthful about the market statistics and financial projections indicated in the report. A business plan should be as truthful as possible because it is the blueprint and vision of the company. It provides a checklist of whether the objectives of the business are on track. According to experts, a professional business plan requires about six weeks of in-depth research and preparation. It is not possible to whip one a day before your appointment with investors.

The reason for a business proposal can be well explained based on the type of the proposal. There are two major types of business proposals: invited and non-invited. An invited proposal is submitted in response to an advertisement from the buyer or client. For instance, organization and government agencies wanting to purchases services and products from private suppliers invite contractors to place their bids. Alternatively, some businesses ask for Request for Proposals (RFP) from a selection of suppliers that they willing to consider as a prospective partner. In each case, the business is competing against other bidders. It is in the interest of your business to present a competitive and compelling business proposal.

Non-invited or unsolicited proposals are submitted to potential clients even when they have not requested for one. In this scenario, you give suggestions to the company or organization to purchase services or products in return for funds. For instance, you can tender a proposal to develop an app for an organization or training services for its staff. The most important thing in both cases is to come up with well researched offer to convince buyers. A business proposal is limited to the scope of the specific project or need. In addition, it has a specific audience. The primary function for a proposal is to solicit or grow a business opportunity.

You can look a business plan as more of an internal document. A proposal on the other hand is an external document used for presenting or selling the business to an external player. A business plan guides the activities of the business internally in terms of marketing strategies and revenue projections that should be achieved. A proposal shows the external players such as governments, donors or business partners what the business is all about and how it intends to carry out a project at hand or use the opportunity to generate revue for both partners.

For more information, here is an article on how to write a business proposal .

Entrepreneur.com: An Introduction to Business Plans https://www.entrepreneur.com/article/38290

Win more clients by creating impressive digital business proposals, price quotes, and contracts using ClientPoint Software

If you want your business proposals, price quotes, and contracts to stand out above your competitors and give you the best chance at winning new clients, use ClientPoint's Proposal Software . It makes creating and formatting professional business proposals, price quotes, and contracts fast and easy.

Related Readings

Proposal writing tips, a business proposal checklist to help you win more clients, business proposal template - how to write a business proposal, how to write a business proposal, how to write a business proposal.

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How to Write a Business Proposal in 7 Steps

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Whether you’re a B2B or a B2C company, you’re in the business of convincing customers to choose to spend their money with your business. For a B2B company that process usually involves a business proposal. In the B2B industry, once you've attracted new customers, which are most likely other businesses, you have to actually make a deal. Unlike B2C companies, who use marketing strategies and then hope their customers respond and purchase their product and service, there's a little more involved in this exchange. That's where your business proposal will come into the picture.

Luckily, even though your process and the exact format for your business proposal can be unique to your company, there is also a general formula you can follow to make things easier, especially the first few times you write a proposal.

In this guide, we'll walk you through the general steps of how to write a business proposal—including how to decide what kind of proposal you're writing, how you should organize it, and what information you should include.

How to write a b usiness proposal: 7 essential steps to follow

With these starting points in mind, let's get down to the process. Whether you’re just learning how to write a business proposal, or want to change up the one you’ve already been using, you’ll want to break down writing into a step-by-step approach. The organization is key when you’re writing a business proposal—structure will not only help you answer the core questions mentioned above, but it’ll also help you create consistent, successful proposals every time you’re pitching new business.

This being said, when writing a business proposal, you can break down the document into these sections:

Introduction

Table of contents

Executive summary

Project details

Deliverables and milestones

Bonus: Appendix (if necessary)

Step 1: Introduction

The introduction to your business proposal should provide your client with a succinct overview of what your company does (similar to the company overview in your business plan). It should also include what sets your company apart from its peers, and why it’s particularly well-suited to be the selected vendor to undertake a job—whether the assignment is a singular arrangement or an ongoing relationship.

The most effective business proposal introductions accomplish more with less: It’s important to be comprehensive without being overly wordy. You'll want to resist the temptation to share every detail about your company’s history and lines of business, and don’t feel the need to outline every detail of your proposal. You'll want to keep the introduction section to one page or shorter.

Step 2: Table of contents

Once you've introduced your business and why you're the right fit for the client you're submitting the proposal to (a quasi-cover letter), you'll want to next create a table of contents. Like any typical table of contents, this section will simply outline what the client can expect to find in the remainder of the proposal. You'll include all of the sections that we'll cover below, simply laid out as we just did above.

If you're sending an electronic proposal, you may want to make the table of contents clickable so the client can easily jump from section to section by clicking the links within the actual table of contents.

Step 3: Executive summary

Next, your business proposal should always include an executive summary that frames out answers to the who, what, where, when, why, and how questions that you’re proposing to the client lead. Here, the client will understand that you understand them.

It's important to note that despite the word "summary," this section shouldn't be a summary of your whole business proposal. Instead, this section should serve as your elevator pitch or value proposition. You'll use the executive summary to make an explicit case for why your company is the best fit for your prospect’s needs. Talk about your strengths, areas of expertise, similar problems you’ve solved, and the advantages you provide over your competitors—all from the lens of how these components could help your would-be client’s business thrive.

Step 4: Project details

When it comes to how to write a business proposal, steps four through six will encompass the main body of your proposal—where your potential client will understand how you’ll address their project and the scope of the work.

Within this body, you'll start by explaining your recommendation, solution, or approach to servicing the client. As you get deeper within your explanation, your main goal will be to convey to the client that you’re bringing something truly custom to the table. Show that you've created this proposal entirely for them based on their needs and any problems they need to solve. At this point, you'll detail your proposed solution, the tactics you’ll undertake to deliver on it, and any other details that relate to your company’s recommended approach.

Step 5: Deliverables and milestones

This section will nest inside the project details section, but it’s an essential step on its own.

Your proposal recipient doesn’t get merely an idea of your plan, of course—they get proposed deliverables. You'll outline your proposed deliverables here with in-depth descriptions of each (that might include quantities or the scope of services, depending on the kind of business you run). You never want to assume a client is on the same page as you with expectations, because if you’re not aligned, they might think you over-promised and under-delivered. Therefore, this is the section where you'll want to go into the most detail.

Along these lines, you can also use this section of the prospective client's proposal to restrict the terms and scope of your services. This can come in handy if you’re concerned that the work you’re outlining could lead to additional projects or responsibilities that you’re not planning to include within your budget.

Moreover, you might also want to consider adding milestones to this section, either alongside deliverables or entirely separately. Milestones can be small, such as delivery dates for a specific package of project components, or when you send over your first draft of a design. Or, you can choose to break out the project into phases. For longer projects, milestones can be a great way to convey your company’s organization and responsibility.

Step 6: Budget

There’s no way around the fact that pricing projects isn’t easy or fun—after all, you need to balance earning what you’re worth and proving value, while also not scaring away a potential client, or getting beaten out by a competitor with a cheaper price. Nevertheless, a budget or pricing section is an integral part of a business proposal, so you'll want to prepare your pricing strategy ahead of time before getting into the weeds of any proposal writing.

This being said, if you fear the fee might seem too high to your potential client, you might decide to break out the individual components of the budget—for example: social media services, $700; web copywriting $1,500—or create a few different tiers of pricing with different services contained in each. The second approach might not work for all types of businesses or proposal requests, but it may be worth considering if you’re worried about your overall fee appearing steep.

With these points in mind, once you've determined how to outline your pricing, you'll list it out (you might even include optional fees or services) and the overall cost for the scope of work you've described.

Step 7: Conclusion

Finally, your conclusion should wrap up your understanding of the project, your proposed solutions, and what kind of work (and costs) are involved. This is your last opportunity to make a compelling case within your business proposal—reiterate what you intend to do, and why it beats your competitors’ ideas.

If you're writing an RFP, again, meaning a potential client has requested this document from you, you might also include a terms and conditions section at this point. This end-on piece would detail the terms of your pricing, schedule, and scope of work that the client would be agreeing to by accepting this proposal.

Bonus step: Appendix (optional)

After the conclusion, you might also decide to include an appendix—where you add any supplemental information that that either doesn’t fit within the main proposal without being disruptive for the reader, or is less than essential to understanding the main components of your proposal. You’ll likely only need an appendix if you have stats, figures, illustrations, or examples of work that you want to share with your potential client. This being said, you might also include contact information, details about your team, and other relevant information in this section.

If you don't have any additional information to include, don't worry—you can end your business proposal with the conclusion section.

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Business proposal considerations

Before you dive into determining how to write a business proposal that will give you a competitive edge, there are a few important things to keep in mind.

First, you'll want to make sure that you’re accomplishing the right objectives with your proposal. When writing a business proposal, you’re trying to walk a line between both promoting your company and addressing the needs of your would-be client, which can be difficult for any company to do.

This being said, you'll want to remember that a business proposal is different than a business plan, which you likely already wrote for your company when you were starting your business. Your business plan spells out your company's overall growth goals and objectives, but a business proposal speaks directly to a specific could-be client with the purpose of winning their business for your company.

With this in mind, in order to write a business proposal for any potential client, you'll need to establish your internal objectives and how these will contribute to the work you're proposing. To explain, you'll need to consider the following:

What tasks will need to be done for this work?

Who will do each task, and oversee the job at large?

What you’ll charge for the job?

Where will the work be delivered?

When will it be done?

Why are you the best fit for the job the client needs to be accomplished?

How will you achieve results?

Not only are these questions at the heart of clear and concise writing, but you also won't be able to write your business proposal without answers to them. So as you're going through the different pieces of your business proposal, keep in mind the objectives of your business, while also remaining persuasive regarding why the potential client should work with you instead of someone else.

The next important thing you'll need to keep in mind before you start writing a business proposal is what kind of proposal are you writing. Essentially, there are two types of business proposals—solicited proposals where someone requested the proposal from your company—and unsolicited proposals, where you're sending the document to another business unprompted.

In the case of solicited proposals, often called RFPs (short for a request for proposal), it’s likely that this potential client already knows at least a little about your business. With these kinds of business proposals, you'll want to spend less time convincing the client that you're the best small business consultant for the job and more on making your proposal feel custom to their specific brief, project, or problem. On the whole, the less generic your business proposal is, the more likely you are to win the work.

Unsolicited proposals, on the other hand, are much harder to sell.

As you’re writing a business proposal to a company that doesn’t know they may need your services, you’ll want to focus on getting them to understand why your company is specifically unique. You want to show them that you can add significant value to their business that they don’t already have. If there is currently someone performing the function you would like to, the sell will even be more difficult.

Business proposal examples

So, now that we've gone through all of the steps to show you how to write a business proposal, let's discuss some examples. As you go through the writing process, you might find it's helpful to consult external resources to review business proposal samples or templates and see how other businesses have structured these types of documents. Specifically, it might be even more helpful to review business proposal examples that relate to your particular industry—such as marketing, advertising, or finance.

General business proposal sample

If you're looking for a general business proposal example, you might consult BPlan, which offers advice, examples, and templates for the documents that are required to plan and operate a small business. In the BPlan sample, BPlan breaks their example into three overarching parts—a problem statement, a proposed solution, and a pricing estimate. This may be a good place to start if you're writing a business proposal for the first time and need a simple, general example to follow.

For a solicited proposal or RFP, you may want to reference a business proposal example that specifically operates under the assumption that you've been asked for this proposal. In this case, you may check out one of the downloadable RFP templates from Template Lab.

Template Lab offers both Word and PDF versions of their templates—and these business proposal samples will include sections more appropriate for RFPs including terms and conditions, scheduling, and points of contact.

Business proposal template services or software

For the most advanced and plug-and-play type business proposal samples, you may decide to utilize a service like Proposify or PandaDoc. These software services allow you to choose from their library of professionally designed and outlined business proposal examples (which are also usually industry-specific) and customize the template for your business's needs.

It's important to note, however, that although you may be able to sign up for a free trial for these services, most of them will eventually require a paid subscription.

5 best practices for writing a business proposal

Writing a business proposal can seem overwhelming at first, as it requires you to provide information about your company and its services as they relate specifically to what your prospect needs. As you go through the process again and again, however, it will become easier and easier to write a succinct and effective business proposal.

This being said, there are a few best practices you can keep in mind to help you as you get started:

1. Be direct.

Although you might feel the urge to show off your language skills while trying to impress a client, when you’re writing a business proposal, tour best bet to win business is to be clear, concise, and direct. You won't want to use overly flowery language or anything that could possibly be misconstrued.

2. Don’t leave room for ambiguity.

You'll want to make sure your proposal is straightforward and easy to understand, with no room for misinterpretation around what you say you’ll do or deliver.

Therefore, you'll want to avoid overly complicated industry jargon to be sure your client can understand exactly what you're talking about and what it means within the scope of your (and their) business.

3. Write for the right audience.

If you were writing a proposal for a specialty food business, it shouldn't look or sound exactly the same as if you were writing a proposal for an asset management company. You'll always want to keep your audience in mind as your craft and develop your proposal.

Ultimately, your best bet is to be straightforward, clear, and stick to the details, but you also shouldn't be afraid to tailor your writing to your audience so that your client feels that the proposal has truly been created with their business in mind.

This being said, your proposal should show that you not only understand your potential client but that you also respect them professionally.

4. Consider a title page.

Although this may not be necessary for a shorter business proposal, a title page can help with the general organization, flow, and professional feel of your document.

Like a title page for any other type of report, this one-page cover sheet would precede the remainder of your proposal and would likely include your business's name, contact information, and logo, as well as who you're submitting the proposal to.

Depending on your business or the potential client you're submitting the proposal to, you might decide that a title page is unnecessary, however, it's worth keeping in mind that it may be something to visually draw in your reader from the start.

5. Err on the side of brevity.

Finally, within the world of business proposals, shorter is usually better. This isn't to say, of course, that you should leave out details or omit important sections—it simply means that you should try to find the most succinct way to say what you need to say and get your point across to the potential client.

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The bottom line

There's no doubt about it—learning how to write a business proposal is a lot of work. Luckily, however, you can follow our steps so you know what to include in your proposal and how to include it.

Ultimately, selling your services to potential clients is part of running and managing your business and as you do it again and again, it will only become easier.

This being said, as you go through the lifecycle of your business, you'll begin to accumulate a library of business proposals that you can continuously reference and use to develop your pitching strategy and writing process based on proposals that have and have not worked. And, hopefully, by taking the time to invest in this business proposal process, you'll be winning the work you need to grow your business.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

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A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.

Key Takeaways

• A business plan is a document detailing a company's business activities and strategies for achieving its goals.
• Startup companies use business plans to launch their venture and to attract outside investors.
• For established companies, a business plan helps keep the executive team focused on short- and long-term objectives.
• There's no single required format for a business plan, but certain key elements are essential for most companies.

Investopedia / Ryan Oakley

Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.

Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.

A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.

While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.

A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.

Common elements in many business plans include:

• Executive summary : This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services : Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents , proprietary technology , and research and development (R&D) information.
• Market analysis : Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors.
• Marketing strategy : Outline the company's plans to attract and retain customers, including anticipated advertising and marketing campaigns. Describe the distribution channels that will be used to deliver products or services to consumers.
• Financial plans and projections : Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests.

Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.

2 Types of Business Plans

Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These are detailed and lengthy, requiring more effort to create but offering comprehensive information that can be persuasive to potential investors.
• Lean startup business plans : These are concise, sometimes just one page, and focus on key elements. While they save time, companies should be ready to provide additional details if requested by investors or lenders.

Why Do Business Plans Fail?

A business plan isn't a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections. Markets and the economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All this calls for building flexibility into your plan, so you can pivot to a new course if needed.

How Often Should a Business Plan Be Updated?

How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While a well-established business might want to review its plan once a year and make changes if necessary, a new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.

A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.

As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.

University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.

Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

Harvard Business Review. " How to Write a Winning Business Plan ."

U.S. Small Business Administration. " Write Your Business Plan ."

SCORE. " When and Why Should You Review Your Business Plan? "

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How to Write a Business Proposal [Steps, Tips, & Templates]

You need to send a business proposal, and you want it to close. But how can you improve your chances?

Every year, we analyze the proposals sent with our software to discover what makes closing more likely. We used this research to craft this very guide .

To help you write better business proposals, we’ve curated the essential proposal format, a step-by-step process, plenty of templates to help you get started, and strategies for following up.

From images to esignatures, keep reading for data-backed insights into the most successful proposals.

What’s in this guide:

• What is a business proposal?
• Basic proposal format
• What to prepare before writing a business proposal
• How to write a business proposal in 7 steps
• 8 business proposal templates
• 5 ideas to take your business proposal to the next level
• What to do after you send a business proposal
• Using analytics for business proposal insights

A business proposal is sent by a salesperson or account manager to a prospective client in order to pitch a product or service. A great proposal should include an executive summary or cover letter, details on the project timelines and deliverables, what makes the company the right choice for the job, and pricing and payment details.

Business proposals are typically sent from one business to another for all sorts of different services, such as enterprise software subscriptions, interior design, accounting, marketing, event catering, etc.

The purpose of a business proposal is to:

Sell your product or service with details, client results, testimonials, etc.

Clarify what is and isn’t included in the proposal to accurately manage expectations

Layout terms and conditions to protect both parties

Lock in the deal right away with esignatures built into the proposal

Large corporations and government agencies will typically send out a request for proposal to competing companies and then choose the best (or cheapest) one.

A business proposal is very different from a business plan, because it is typically written to clarify a paid engagement between two companies. This might be a short project or a long contract. A business plan, on the other hand, is typically an internal document crafted to chart a businesses path forward towards goals, such as market expansion, revenue growth, new product lines, etc.

Types of business proposals

There are many different types of business proposals. They are typically broken down by industry.

Here are some common types of business proposals, by industry :

Real estate and construction

Professional services

Proposals can also be categorized based on the type of offering :

One-off projects

Recurring subscription

Ongoing service

Package options

Later on in this guide, we include a variety of proposal templates. Depending on what you selling, you might find it easier to begin with a template designed for your industry or for the type of offer you’re selling (such as a one-off project). So be sure to peruse through the previews of each proposal so that you can see which template will save you the most time.

Business proposal example

An excellent business proposal addresses the client’s pain points and showcases the proposed solution.

Here’s an example business proposal to inspire you. The accounting proposal kicks things off with an attractive cover page.

All in all, it includes the cover page, an executive summary letter, an about us section, team photos and bios, a project summary, a breakdown of the proposed services, a pricing section, onboarding steps, and a contract with esignatures.

The services breakdown offers a great example of how to categorize your services and provide hourly estimates.

After researching over 1 million proposals, we found that winning proposals are most likely to include all of the following.

Here’s the idea proposal structure :

1. Cover page

The cover page, also called a title page, should be kept simple. It prominently features a photograph or graphic design that is on-brand, you can use graphic design templates as a starting point. It also usually includes the project name, or the client name, as well as your company name. Some companies might include contact information on the cover page, while others will save that for a separate page.

Check out this cover page , which is bright, bold, and on-brand.

2. Executive summary

The executive summary is essentially your pitch.

It’s your shot at capturing the client’s attention and showing them that you have an approach that will exceed their expectations.

It’s typically written in paragraph form (1 to 3 paragraphs) but can also include a bulleted list for a more skimmable style.

Make sure that your executive summary includes:

A quick description of the client’s problem or starting point

How your company will serve the client and why you’re suggesting this unique approach

Why your company is the best choice (average results, unique selling propositions, differentiators, awards, etc.)

This content marketing proposal offers an excellent example of an executive summary. Though in this proposal, the section is instead titled “Focus and Objectives.” What makes it great is that it’s on brand, goal-oriented, personable, and skimmable.

3. Approach or solution

In this section, you write about your process and why you approach things the way you do. For example, a Facebook marketing agency might say that they believe that creative work is essential to advertising success, and that’s why they devote 90% of their time to developing videos, images, and copy.

Some companies will craft a custom approach section for each client, while others will re-use the section again and again. It all comes down to the number of services you offer and how much or how little you customize your work.

In corporate training, it’s essential to clarify your approach so the client knows why your system will be effective. In this training template example , their process shows the essential steps in their proprietary approach.

4. About the company

This is your chance to brag. In your company bio, be sure to mention all of the important things that set your company apart. That might include your management style, the talent you have on your team, your average client retention rate or contract length, and any accolades.

With their location, awards, and team structure, this About Us page is an excellent example of how to sell yourself with authority.

5. Deliverables

Use the deliverables section to summarize exactly what the client will receive from the engagement.

A TikTok ads management firm might include 15 ad creatives per month in their deliverables, for example. While an accounting firm might list the reports that will be sent weekly or monthly, along with the bookkeeping service.

In a construction project, on the other hand, the company might showcase the different milestones that the project will hit, and when these milestones are expected to be completed.

In this proposal , the Deliverables section is titled “Scope of Services,” and it includes a list of all of the services that the prospective client will receive. Deliverables are mentioned within the scope, including a logo, brand colors, business cards, and brand guidelines.

6. Social proof or work samples

No matter what you sell, prospective clients will want to know that you have the right experience for the job.

Social proof can come in the form of written testimonials and case studies, video testimonials and case studies, portfolio photographs, G2 and Capterra badges, and rating averages from Google, Trustpilot, or other review sites.

For an architecture firm, construction company, or website designer, work examples can prove more powerful than testimonials. Prospects want to see what you can do. This architecture proposal showcases the company’s work on a rehabilitation project.

The pricing section is of course the one that your clients will read again and again and deliberate over. That’s why it’s so important to make it clear, simple, and well-formatted.

Tables are a great way to showcase what’s included in the total project cost or to provide package options.

Similar to interior design and construction services, event planning typically includes both hourly costs and hard costs (for products and venues). Here’s an example of an event management proposal that includes a breakdown of the hourly work and the hard costs.

8. Terms and conditions

When you use modern proposal software , you can build a contract right into your proposal, eliminating the need for separate contract software.

Your proposal should include legal jargon that can protect both you and your client. You might have a statement of work and a master service agreement or terms and conditions.

In this website design proposal , there are 6 pages in total for the contract section. The potential client can easily click around to view all of these pages and share the proposal with their legal team if needed.

For proposals that are longer than 8 pages, it’s wise to include a table of contents. If you use Proposify as your proposal software, then every proposal will automatically have the table of contents on the left-hand side, making it easier for the potential client to click around and review important sections multiple times.

A lot goes into writing a proposal. Before you can get to the writing part, you need to prepare.

This means talking with the client to figure out their needs, using your experience to pitch the best project, and talking with colleagues who will be involved in the project to see if they agree on the services you plan to propose.

You might also need to talk with your legal department and ask them for a contract template that you can include at the end of the proposal so that when the client signs off, it's legally binding.

Everything you need to prepare to write a business proposal:

An understanding of the client's needs

Your determination of the best approach

Details that will get the client to say yes

Agreement with internal colleagues

The pricing options you want to offer

Knowledge of who needs to sign off

Legal contract language or templates

To be a good writer , you must be concise, specific, and detailed. It really is that simple. The more examples and details you provide, the better.

That said, it does help to follow a process so that you can be sure you’re providing everything that the decision-makers expect and more.

Here are the 7 essential steps for writing a business proposal:

Step 1. Determine the client’s needs

The first step is to figure out what your client needs.

As mentioned in our section on preparation above, you’ll need to speak with your client. If this is a new client, it might take two to five sales calls to collect all of the information you need. For an existing client, you can probably figure out what to include in their renewal proposal with just one call.

But of course, asking your client what they need isn’t enough. You need to use your expertise to choose the best solution for them, even if it’s not what they want or expect.

Step 2. Kick off your proposal with a template

Once you’ve done your due diligence, the next step is to choose a proposal template so you’ll save time on both writing and designing.

You can use a template that matches your specific business or click around to find one with all the sections and a design style you like. Even if it’s not created for your specific industry, it’ll be easy to update the content to match your service or product.

Check out our full library of proposal templates.

Step 3. Write the evergreen messaging about your company

It’s always smart to tackle writing section by section. This way, you don’t get overwhelmed.

We recommend starting with the sections that are relevant to your business and that can be reused again and again. Your value propositions should guide the content.

Tackle these sections:

The cover page

The approach section

The about us page and team bios

The social proof or portfolio pieces

By starting off with what makes your company special, you’ll break the ice during your writing process and also create your own custom template that you can use for further proposal writing.

Step 4. Craft the meat of the proposal (executive summary, approach, deliverables, etc.)

By now, you should have chosen a template and written your core company messaging.

Now it’s time to write the meat of the proposal.

In this step, you’ll be catering your proposal to the new client. A startup will require a different proposal than a small business, and the same goes for an enterprise.

Here are some of the things you might need to write:

The unique methodology or approach you’ll offer this client (if it changes per client)

The problem statement or executive summary

The client’s goals

The scope of work

The project process and timelines

The deliverables

You can fill in your template’s sections and take a peek at other templates to get inspiration and see if there are any additional sections or details you should add.

Step 5. Add in the project total or pricing options

Next, you should calculate your fees.

Depending on your business, you might add up flat rates, product costs, or hourly estimates to come up with a fixed project total. Or, you might present a price range that the project will likely fall between (making it clear that additional hourly costs could arise. Or perhaps, you’ll offer a pricing table with different options to choose from.

Step 6. Add legal terms and conditions and esignatures

When you use proposal software (instead of just a PDF or Google slides), you can add a contract directly to your proposal.

If you already have approved contract language from your legal department, you can simply add it to the contract section of your proposal in Proposify. If not, you’ll need to chat with your legal team or business lawyer to ensure you’re adding all the right stipulations.

Proposals with esignatures close 35% faster and are 426% more likely to be accepted. So be sure to assign an esignature both to yourself and your client.

Step 7. Finalize the design and review all of the content before sending

Now it’s time to review and finalize your proposal. Check for errors, places in the template you forgot to fill out, and wording that can be improved.

Make sure the graphic design is on point too. Switch out the template with your own brand colors and fonts. You can have a designer on your team handle this, or handle style customization yourself (with no design experience necessary).

The best way to write a business proposal? With a template of course.

We’ve rounded up 10 of the best templates for different types of businesses. And for each, we show you the proposal sections included to help you pick the right one for you.

Keep in mind that with any of these proposals, you can add and remove sections and also customize any page with text, headlines, images, videos, fee tables, and more.

1. Business consulting proposal template

This consulting proposal template can be used by any type of consulting firm.

Proposal sections :

Project Summary

Project Activities

Your Investment

2. Advertising Proposal Template

With this advertising proposal template, you can showcase your digital or traditional advertising services. The template includes TV, web, radio, and magazine, but you can update it to reflect your pitch.

Cover Letter

Who Are We?

Testimonials

Your Advertising Media Mix

3. Branding Proposal Template

Perfect for branding consultants, logo designers, and messaging strategists, this branding proposal template includes the project scope and timeline to help you clarify your process to potential clients.

Overview & Goals

Scope of Services

Sample Case Study

4. Commercial Lease Proposal Template

This commercial lease proposal template can be used for leasing office buildings, manufacturing facilities, warehouses, and event spaces.

Our Process

Meet Our Team

Terms and Conditions

5. Construction Bid Template

Use this construction bid template for new construction projects or renovations. It includes a detailed cost estimate table and a required deposit.

Cost Estimate

6. Catering Proposal Template

This catering proposal template is perfect for corporate projects but can work for weddings or personal events as well. You can use it for conferences, luncheons, retreats, or any other type of event.

Introduction

Event Details

7. Corporate Photography Proposal Template

With a beautifully designed portfolio section and a very detailed pricing table and print options, this is the perfect template for corporate photography . It also includes tips for success, so clients know how to make the most of their photoshoot time.

What We Offer

Photography Packages

Tips for Success

8. Financial Services Proposal Template

You can use this financial services proposal template to pitch financial services like risk management, budgeting, and investment management.

Services and Fees

Looking to kick up your proposals a notch?

Try one of these smart ideas:

1. Make your pricing dynamic

Dynamic pricing means that clients can choose what they want and that will automatically change the project total that they sign off on.

Proposals with options and add-ons have a 35.8% higher closing rate . Try giving package options and including add-ons such as ancillary services or maintenance work.

2. Create graphic designs for timelines and processes

Winning business proposals often include informative visuals to help clients understand your process at a glance.

You could create a graphic for project phases, milestones, or big deliverables.

3. Get creative with your social proof

Client testimonials are an easy starting point when it comes to social proof.

But can you do better? Can you get more creative and stand out from other consulting firms?

Here are some ways to improve your social proof game:

Include visuals for your average ratings (for example 4 and a half stars filled in).

Add any badges or graphics available from review sites like G2 and Trustpilot.

Film professional case study videos and embed them in your proposal.

Create a screenshare video where you talk through your digital portfolio samples.

Include an informal video testimonial from your client.

Add a video showing your team at work (ie, on the job site, running a workshop, speaking, etc.)

Write mini case studies with before and after transformations, result data, etc.

4. Have an “excludes” section

Is there something that is definitely not included in your proposal? Do clients often assume it’s included or do they get confused?

If so, try adding a section that describes everything that isn’t included in the proposal. You could mention that you don’t offer these services, or state that they’re available at an additional fee (if you want to upsell them).

5. Include videos for introductions or complex concepts

When you add a video to your proposal, you increase its chances of closing by 41% .

Here are some video ideas to try:

Informal intros filmed with Loom

Professional videos of your team at work

Case study videos

Quick descriptions of complex deliverables, methodologies, etc.

You sent the proposal. Now what?

Here’s what to do next.

Sign it yourself

Make sure you sign the proposal right away (before your client opens it). This offers a more professional presentation and makes it more likely that your new client will add their signature too.

Be prepared to follow up

Project proposals don’t always close all by themselves. As any good salesperson knows, follow-up is essential.

With Proposify, you can set up automated reminders. When we analyzed over 1 million proposals sent with our software, we found that proposals with pre-scheduled reminders have a 35% higher closing rate than those without.

Make adjustments to the proposal to close the deal

It’s okay to make changes. In fact, proposals that get revised are actually more likely to close than ones that don’t. When a client asks for revisions, it means they’re interested.

You might need to adjust your proposal document for its scope, deliverables, timeframe, or payment schedules.

Save different proposal templates

After you’ve created one proposal, you should save it as a template and give it a name. You might also want to duplicate it and adjust it to create a new proposal template. For example, if you offer SEO services , you might want to have one proposal for an SEO audit and another one for your monthly SEO retainer.

Create email templates

You can also create and store email templates that will save you time in the long run.

Try creating different templates for sending, reminders, and thank yous. If you offer different types of services, you can craft a unique sending template for each one.

Get feedback from clients on both won and lost proposals

One of the best ways to improve is to take feedback. Whether you win or lose the proposal, find out why.

Here are some tips on how to do this:

Won - When you win a proposal, you might ask the client why they decided to move forward with you on their first strategy call. Or, have their account manager ask the same question and pass the info to you.

Lost - If a client doesn’t sign the proposal after 3 weeks, you can send a quick email with something like, “Just looking for some feedback. Can you let me know why you decided not to move forward? Thanks.”

In today’s digital world, a business proposal should be more than a formal document.

When you use the right tool to create and send your proposal, you should be able to gather important insights and trends.

Viewing metrics for a specific client

With Proposify, you can see the activity for every proposal. Know when clients are opening and viewing proposals so you can follow up in a way that matches their activity.

Average viewing metrics

Proposify also offers average viewing metrics that help you benchmark your views:

Total viewed

Average time to view

Average length of viewing

Average views per proposal

This is great for gauging how a new client compares with past activity.

Average closing metrics

You can also check your average closing rate and track it over time.

Check these closing metrics:

Closing rate

Try setting goals for improving your closing rate and then check your progress each month.

Insights by proposal type

Segment viewing and closing metrics by workspace, client name, or stream. A stream is a custom category that you can use for different service types, client industries, etc.

Growth trends

And lastly, you can check your growth trends to find out how much you’re earning in new contracts and existing contracts. This is great for seeing your past revenue growth and for forecasting.

Trends include:

New won proposals (chart)

Active income (chart)

Start with a solid understanding of your client’s goals and needs. Use a template to save time creating messaging and tables that will seal the deal. Then, try advanced techniques like dynamic pricing and videos to improve your closing rates even further.

Sign up for Proposify free for 14 days or get started with one of our templates .

Dayana Mayfield is a B2B SaaS copywriter who believes in the power of content marketing and a good smoothie. She lives in Northern California. Connect with her on LinkedIn here: linkedin.com/in/dayanamayfield/

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How to Write a Business Proposal [Examples + Template]

Published: June 10, 2024

Here’s what every new business owner needs: an extra eight hours in the day, an endless supply of coffee, and, most importantly, a really strong business proposal.

A business proposal can bridge the gap between you and potential clients. Done correctly, it will outline your value proposition and persuade a company or organization to do business with you.

Here, we’ll take a look at the various kinds of business proposals and go over how to write one. We’ll also see some ideas and examples to help guide yours.

Know exactly what you need? Jump to one of the following sections:

What is a business proposal?

How to write a business proposal, business proposal templates, business proposal examples, tips for writing a business proposal, business proposal ideas.

Free Business Proposal Template

Propose your business as the ideal solution using our Free Business Proposal Templates

• Problem summary
• Proposed solution
• Pricing information
• Project timeline

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A business proposal is a formal document that’s created by a company and given to a prospect to secure a business agreement.

It’s a common misconception that business proposals and business plans are the same. However, a proposal helps you sell your product or service — not your business itself.

Think of it this way: Instead of assisting your search for investors to fund your business, a proposal helps you seek new customers.

Follow Along With HubSpot's Business Proposal Template

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Propose your business as the ideal solution using this free template.

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How to Write a Business Proposal in 2024 (+ Templates)

Written by: Unenabasi Ekeruke

When it comes to landing new customers, securing partnerships and funding and closing more deals, a well-crafted business proposal can be your silver bullet.

It's no longer enough to offer quality products and services. You need a compelling business proposal that makes a solid case for your product, attracts clients' attention and sways purchase decisions in your favor.

But how do you write a proposal that wins the hearts and minds of your potential client? What information and tools do you need? What should be in a business proposal?

This article has everything you need to know about writing a business proposal. We’ve included valuable tips and ready-made templates to help you get started.

Here’s a short selection of 8 easy-to-edit job proposal templates you can edit, share and download with Visme. View more templates below:

Let's get to it.

Table of Contents

What is a business proposal, business proposal vs. business plan, types of business proposals, how to create a business proposal that wins clients (step-by-step).

• 28 Business Proposal Templates You Can Customize Now
• Tips for Writing Winning Business Proposal

Business Proposal FAQs

Create winning business proposals that close more deals.

A business proposal is a document sent to prospects persuading them to buy your products or services.  It is mostly used by marketers, businesspeople and B2B and B2C companies to secure contracts and convince potential clients, investors, partners, or stakeholders to invest in or support a business idea.

You can send a business proposal in response to a client's request. Better yet, you can share it as a proposed solution to attract your client's attention.

Often, business proposals precede any business agreement and include details such as:

• What your business does (products, services) and the value you bring to the client
• When you can start and finish (timeframe and milestones)
• What the client stands to gain from the business relationship (expected results)
• Why you're the right person to do the job
• Or why the client should choose you to deliver that service (value proposition)

Take a look at these 20 proposal examples to get an idea of what yours can look like. Also, join Mike on this video from our YouTube channel to learn more about proposal design tips and templates. Don’t forget to subscribe and get notified of new videos.

The common myth is that business proposals and business plans are interchangeable. The thing is, both tools are important for growing your business. Yet, they play different roles.

Business proposals help you pitch your product and service to prospective customers. On the flip side, business plans lay a roadmap for your business and help attract investors and partners. They differ from each other by purpose, content and structure.

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There are generally two main categories of business proposals: unsolicited and solicited.

Formally Solicited Business Proposal

Solicited business proposals are sent in response to a client's request for a proposal. It may be a request for proposal (RFP), request for information (RFI) or request for quotation (RFQ).

The request outlines the clients' needs and expectations and the evaluation criteria used to select the vendors or service providers.

A solicited business proposal is usually an easier sell for marketers. That’s because the client is already sold on making the purchase or using the service. At this point, the customer is evaluating potential vendors or service providers to get the best value or deal.

Informally Solicited Business Proposal

This type of business proposal emanates from informal meetings and verbal discussions with clients. Since there's no formal or official request for a proposal from the client, you may have little information to work with.

Nevertheless, you'd have to thoroughly research the organization's unique needs to win the client over.

Unsolicited Business Proposals

These are proposals sent to prospects who haven't requested one. It’s more about pitching your business when they haven’t requested a proposal.

An excellent example of this proposal type is a cold email , sales brochure or marketing flyer . This type of marketing content is often generic. And even though it introduces your solution, it may not align with the client's unique requirements.

Here’s how to make prospects pay attention to your unsolicited business proposal:

• Research your potential customers and the markets they operate in
• Identify their pain points
• Propose a customized solution tailored to your customer's needs
• Personalize your proposal's content and make it persuasive

A winning business proposal should include these key elements

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Your title page is the first thing your client will see when they open your proposal. Aim to make it appealing, professional and engaging as it sets the tone for further engagement.

The title page should contain the following information:

• The proposal title
• Your name, company name, logo and date
• The prospect's business name

The title page below gives prospective customers a sneak peek into what the proposal is about. Aim to make it aesthetically appealing, as it helps you leave a strong first impression.

Proposals typically contain a lot of information. So, adding a table of contents helps you achieve these three things:

• Gives your prospects an insight into what you'll cover in the proposal
• Lays out the page numbers where readers can find each page, section and subsection
• Makes it super easy for readers to navigate your document

If you're going to send your proposal online, make your table of contents clickable. This will enable your audience to jump to the different sections with a single click.

This business proposal example shows how to craft a table of contents with a beautiful and interactive layout.

Executive Summary

The executive summary is the ticket to getting a prospect interested in your proposal. Why's that? Clients receive lots of proposals and may not have time to read the entire content.,

Hence, writing a stellar executive summary can hook them in and nudge them to read on.

It's a summary of the entire business proposal. And you'll typically find it in sales enablement content and other business documents like reports , sales and marketing plans , surveys and more.

At a glance, your readers should get a bird's eye view of:

• Your company's goals, mission and vision
• Proposed solution and value proposition
• How your project impacts their organization
• Expected outcomes
• Cost implications and more

This business proposal template below has a brief executive summary. It highlights what the company does, the proposed services, costs and timeline.

Company Background

The company background is a key aspect of the business proposal introduction. This is where you provide detailed information about your company. You should discuss your company's history, vision, mission and key staff here.

Be sure to include pictures and profiles of the executives and key personnel with experience related to your proposal. Showcase milestones, awards and industry recognition to build credibility and boost prospects' confidence in your company.

Notice how the template below offers elaborate information about the company.

Problem Statement

This section should outline your prospect's needs, problems and pain points. To drive a client's interest or develop a sense of urgency, explain the issues your client is facing and how they impact their business.

Writing a compelling problem statement does these three things:

• It shows that you have a deeper understanding of their unique needs
• Highlights your technical knowledge, experience and ability to help address them
• It allows you to point out a problem your prospect may not have been aware of

But how do you identify your client's needs? The simple answer is, that you have to do your homework. Research your client's business and study other companies in their niche and industry trends.

Proposed Solution

Your business proposal aims to help the prospect solve their problems. Hence, this section should address how you intend to achieve that.

Let your clients know the strategy and methods you'll use, why you chose that approach, deliverables and expected outcome.

Avoid making your proposed solution sound generic. Instead, customize it to your client's needs. Above all, paint a mental picture of how their business will turn out after implementing your solution.

Scope of Work

At this point, you should translate your proposed solution into an action plan. Start by elaborating on the areas you'll cover during the project execution.

Check that the scope of work is relevant to the potential client's statement of needs or problems. You should also try to avoid or translate industry jargon that the reader may not understand.

Timeline and Milestones

This section should include an estimated timeline of when the project will start and finish and how long it will take. We recommend presenting the project schedule, milestones, timeline and deliverables in a visually appealing way.

Check out the business proposal template below to get creative inspiration.

Qualification

This page should convince prospects that you're the best person or company for the job. Talk about your capabilities, experience, expertise and your team's qualifications. Also, reiterate why they should trust you to deliver.

Your job is to dispel any iota of doubt and boost the client's trust in your brand. You can include social proof like testimonials , reviews, case studies and client success stories. Also, mention relevant credentials, recognition or awards to demonstrate your authority.

Feel free to include a portfolio of the work you've done before or a list of clients you've served.

Pricing, Estimates and Billing

This section should outline your pricing, payment schedule and payment terms. Be sure to display the line items, the incremental cost and the total fee. You can also include a price per unit rate or a fixed monthly or hourly rate.

We recommend providing clients with options or breaking your fee into project stages or milestones. That way, the client knows his options and what he's paying for.

Not sure how to achieve this? Use an interactive pricing comparison table that automatically adjusts when the client selects the preferred product, service or plan.

Use this section to indicate when you'll require payment upfront, before or after each milestone or after project completion. Also, specify whether any portion of the payment is refundable in the event of an unforeseen event.

Look at how the business proposal template below elaborates on the budget and pricing information.

Thank the reader for considering your business. Next, summarize your proposal in this section and get the client in the mood to hire your company or purchase your solution.

Highlight the key points of your business proposal. Plus, reiterate your value proposition and why the client should choose you.

Mention that you're available for further discussion on your proposal. Add phone numbers, email and office address to enable your prospects to reach you.

Terms and Conditions

This is where you outline every legal aspect of the proposed business relationship. This part has to be as clear as possible to avoid disputes or legal issues.

If you're unsure what to include in your proposal, check with your lawyer or legal team. They'll highlight the legalities, confidentiality agreements and elements of a working contract.

The template below is an excellent example of how to outline your terms and conditions.

Include a small section at the end of your proposal where both parties (you and the client) can sign off if they agree to the terms of your proposal. You can include your contact details here and prompt the client to contact you if they have any questions or concerns.

The appendix section is perfect if you have visuals, tables or other content you've cited in your content. For instance, let's say you mentioned products, materials and other tangible items you plan to use during the project. In that case, you can include the product catalog in the appendix section.

28 Business Proposal Templates to Impress Clients

With Visme's wide range of proposal templates and easy-to-use editor, creating a professional business proposal is a breeze.

Hear what one of our customers has to say about Visme:

“Visme is something that I would highly recommend. It made us look a lot better in our clients’ eyes because it's something that's visually effective as a marketing tool.”

"With Visme, instead of days, a page would take us anywhere from 4-8 hours on a duplicate or templated process and even up to 72 hours for projects with unique needs and with immense input and back and forth on the design process.”

Brad Wills, Sourcing Executive at IBM's Recruitment Processing Outsourcing (RPO)! Read the full case study .

Check out these 28 business proposal examples professionally designed for almost every kind of business.

Service Proposal Templates

Product proposal templates, partnership proposal templates, investment proposal templates, consulting proposal templates, project proposal templates, bid proposal templates, 1. it service one-pager proposal template.

Looking for a quick and concise way to communicate the value and specifics of your IT service offering to potential clients or stakeholders? This service proposal template is your sure bet.

The minimalist design gives the plan a modern look and creates a powerful visual impact. Leverage the space to detail your executive summary , description of services, scope of work and lots more.

And if you’re tight on time, you can rely on Visme's AI document generator for instant proposal creation. Simply input your prompt, provide context, choose your preferred design and witness the tool swiftly generate your initial draft within seconds.

Check out how the AI document generator tool works here.

2. Marketing Agency Proposal Template

This comprehensive template is your ultimate tool to pitch your marketing agency's services and secure deals effortlessly.

Its sleek design, captivating visuals and icons ensure an attractive presentation. You can easily spotlight the problems you’ll address, solutions, project roadmap, services, the team, client testimonials and more.

Your brand identity conveys professionalism and makes your proposal more memorable to potential clients. To showcase your brand identity, ensure your proposal is branded using Visme's brand wizard . Simply input your web URL to automatically incorporate design elements from your website and access personalized, branded templates.

3. Clinical Laboratory Services

This template offers a framework to showcase your clinical services expertise and present your unique value proposition with clarity. The template offers dedicated sections for services, product breakdowns, certifications, locations and more.

Against a white backdrop, various shades of blue harmoniously blend to symbolize the beauty of healthcare and increase your proposal’s aesthetic appeal. The template also features captivating visuals, icons and an engaging layout.

Convert your product proposal into an engaging page-turner using Visme's flipbook effect . This allows your audience to virtually flip through pages, mimicking a real document experience.

4. Online Grocery Delivery Proposal Template

Seeking investment or partnerships for your groundbreaking online grocery delivery service? This online delivery service proposal template is your silver bullet.

The striking blend of lemon, blue and white gives it a great visual appeal. Each page also boasts engaging culinary visuals, icons and a refined layout that complements the content.

With detailed market analysis, innovative strategies and detailed financial projections, this template helps you present a compelling case. The best part is that the template design is fully customizable to suit any product or brand.

With our interactive features like hover effects or clickable pop-ups, you can provide more information, such as technical details or testimonials, without overwhelming the reader.

5. Consumer Product One Pager Proposal

Utilize this concise yet impactful one pager proposal to secure funding for your consumer product venture. This template allows you to distill your product's essence, market potential and competitive edge into a compelling one-page format.

It features captivating visuals, icons and harmonious color combinations, delivering a compelling presentation.

Personalize the template with your text, images, brand elements and more. You can streamline editing using Visme's dynamic fields , which eliminate the need to manually enter key information when customizing it for other clients.

Just create custom fields like company name, address, contact details and other information and automatically fill in the relevant fields with a single click.

6. Mobile Game Development Proposal Template

Looking for a way to capture potential clients' attention and secure software development projects? Start with this mobile game development proposal template. Its vibrant purple, orange and white scheme, complemented by compelling visuals and bold icons ensures your proposal stands out.

The template features sections to emphasize critical elements like introductions, overviews, goals, why to choose your services, action plans and more.

You can add more pages and customize the visuals, icons and layout to suit your brand’s needs.

7. 3D Modeling Software Proposal Template

Make a bold impression on your prospective software clients with this innovative proposal template.

The proposal boasts a captivating cover page, vibrant colors and stunning 3D visuals. It's structured with sections covering company overview, problem analysis, proposed solutions, delivery timelines and more.

Struggling with what to write in different sections? Leverage Visme’s AI writer for your initial draft. Simply provide instructions and the tool will generate well-written content matching your desired style and tone. Additionally, you can use this AI to refine, summarize, or edit your content effortlessly.

8. Jet Skis Proposal Template

Present your physical products to potential clients or investors effortlessly with this stylish proposal template.

This template comes with high-resolution stock photos, appealing vector icons and data widgets. It includes sections highlighting the advantages of your service, an overview of available models, pricing options and testimonials from satisfied customers.

Although this template was designed for water sports products, it can be customized for any brand or product.

If you want to change the visuals, explore Visme's extensive library of premium stock photos to find what suits your needs.

Learn more about how to create a product proposal in this complete guide .

9. Finance Consultancy Partnership Proposal Template

If you’re in search of a finance consultancy partnership proposal template that's straightforward and professional, then this proposal fits the bill. It features a clean, authoritative design using a white and green color palette.

All sections are neatly organized to present your firm's background, partnership model, client benefits, partner responsibilities and more. Leverage Visme analytics to track how your proposal is performing. You can easily monitor engagement metrics such as unique visits, average viewing time, duration, IP addresses and other analytics.

10. Lifestyle Brand Collaboration Proposal

Create impactful collaborations to elevate your lifestyle brand with this exquisite proposal. Its vibrant colors, dynamic layout and striking visuals make it iconic. The template provides a clear structure to showcase your brand's mission, project scope, responsibilities, terms and more.

Utilize Visme's intuitive editor to effortlessly customize colors, fonts and other elements of this template to fit your brand identity.

11. Payment App Brand Collaboration

Attract potential partners to your software brand using this well-structured collaboration proposal template. Each page employs a logical hierarchy in typefaces, fonts and elements to ensure an engaging reading experience.

You can highlight crucial aspects such as project objectives, payment app features, statistics and more with meticulous detail.

Visme’s data visualization tool will provide a clear and detailed presentation of statistics and figures in this proposal. You can access an extensive array of charts, graphs, maps, widgets and more from Visme’s library.

12. Non-profit Brand Collaboration

If you’re eager to team up with impactful organizations and expand your brand's reach while making a difference, this template is your blueprint.

With a sleek and modern design, a soothing color palette and exciting visuals, it’s sure to attract the reader's attention.

This template encompasses all essential sections to showcase your offerings, including a summary, project overview, plan, co-branding prospects, benefits, terms and beyond.

To get feedback about your proposal from coworkers quickly, you can invite them to your Visme project using Visme’s collaborative features . The workflow management tool also allows you to assign roles, establish deadlines and streamline approval processes effortlessly—all in one place.

Read this guide to learn more about how to create an effective partnership proposal.

13. Restaurant Investment Proposal

Attract prospective investors and secure funding for your culinary venture using this sophisticated investment proposal template.

Its combination of vibrant color schemes, icons and captivating images creates an impression of a refined restaurant.

Utilize its various sections to highlight your executive summary, target audience, competitive edge, business model , financial projections, SWOT analysis and other crucial details.

The template also incorporates charts to depict your target audience and financial projections. Visme enables you to seamlessly link real-time data from 3rd-party apps like Excel or Google Sheets and import tables, charts and graphs into your projects.

14. Project Investment Proposal

Showcase your project's potential to investors with this sleek investment template. Its elegant design incorporates a striking blend of black and yellow, exuding professionalism.

The template includes sections such as executive summary, project goal, target community, use of funds, assessments and more.

Customize this template by using images or videos to showcase your prior projects. This visual showcase will offer investors a glimpse of your work, significantly increasing your chances of winning.

15. Prime Real Estate Investment Proposal

Position your company as a trusted business for real estate investments with this stunning template. The layout, colors and captivating real estate imagery create a compelling visual narrative.

The template captures everything you need to show investors that you’ve done your homework. It includes an executive summary, overview, gallery, risk assessment, investment rationale and more. You can also include video testimonials of prior clients to gain potential investors’ confidence.

Each page of this document can be easily customized using Visme's user-friendly drag-and-drop editor.

16. Startup Investment Proposal

Starting a business? Utilize this startup investment proposal to highlight your idea's potential and leave a lasting impact on investors. The distinctive color scheme of yellow, white and navy blue blends to evoke a sense of innovation.

It includes clear sections to highlight your executive summary, market analysis, competitive advantage, business model and more.

In addition to your proposal, you can use Visme’s presenter studio to record your elevator pitch and share it with potential investors. This adds a personal touch and helps you engage busy executives.

17. Business Consulting Proposal

Win client's trust to hire your consulting services with this cutting-edge template proposal.

This design boasts a sleek color scheme of grays and blacks contrasted with a pristine white background, ensuring an attention-grabbing visual. It encompasses all crucial aspects, from an executive summary to project timelines, pricing models and compelling testimonials, to effectively showcase your expertise to potential clients.

You can link the icons, objects or text to a website or document for seamless navigation and engagement using interactive links.

18. IT Consulting Proposal

Craft a compelling pitch for your IT consulting service with this detailed consulting proposal template. It provides a structured framework to articulate your goals, expertise, services, recommendations and project details effectively.

Packed with captivating visuals, refined fonts, modern design elements and versatile layouts, this template ensures your proposal shines among competitors.

Personalize it to match your company's processes by incorporating text, applying your branding and expanding or adapting sections as needed.

19. Social Media Consulting Proposal

Whether you're an established social media agency or a freelancer looking to land your next big client, use this template to confidently pitch your social media consulting services.

With its sophisticated mix of blue and white hues, complemented by well-organized layouts and interactive icons, this template adds a touch of elegance to your presentation.

It covers crucial areas such as market analysis, personalized strategies, content planning and measurable objectives to craft a persuasive argument.

Make this template yours by swapping out the placeholder text and adjusting the visual elements until you're satisfied with the look and feel.

20. Marketing Consulting Proposal

Secure lucrative marketing projects confidently with this modern consultant proposal template. Its contemporary layout, crisp imagery and fusion of vibrant color themes project a high level of professionalism.

This template provides comprehensive coverage for essential aspects like the executive summary, "why choose us" section, project scope, deliverables, timeline, budget and more.

Lacking visuals for your projects? Utilize Visme's AI image generator to create relevant, high-quality, original images that breathe life into your design. Simply type in your prompts to generate professional-grade photos, paintings, pencil drawings, 3D graphics, icons, abstract art and more in seconds.

21. Web Development Proposal Template

You’ll require a standout proposal to win clients in a highly competitive web development industry. This sleek proposal can be your game-changer.

With an exquisite design layout, vector icons and a vibrant color scheme blending yellow, blue and white, this proposal immediately captures attention. The sections within cover the project overview, portfolio, website structure, timeline, budget breakdowns and more.

If you need to enhance your existing images and give them a professional look, you can utilize our AI Image Edit Tools within the Visme editor. The wizard allows you to remove backgrounds, unblur, or enlarge small images for optimal presentation.

22. Roofing Proposal

Whether you're a seasoned roofing contractor or a startup, this template will equip you to stand out and secure your roofing projects effectively.

The template utilizes a minimalist design with well-organized sections, ensuring your proposal looks both professional and visually appealing. Key sections such as project scope, materials, timelines, safety protocols and cost breakdowns lets you showcase your expertise and reliability.

Personalize the template by substituting the placeholder text and fine-tuning the visual elements until it suits your needs.

23. Construction Proposal

Utilize this refined template to leave a lasting impact and win your upcoming construction or renovation projects. Its blue, yellow and white color scheme radiates professionalism, while its captivating visuals and elegant layout effortlessly highlight your content.

The template features sections such as project scope, timeline, materials, costs and service specifics which underscore your expertise and dedication to top-notch work.

Share and download this proposal in various formats—PDF, PNG, JPG and GIF—or generate a link to share it with the client.

24. Architectural Proposal

Seal prestigious architectural deals confidently with this sleek architectural proposal template.

The template boasts high-resolution graphics, smart design elements, and engaging fonts. It includes sections for project goals, milestones, budgets and ample architectural images that add visual appeal.

Customize this template using Visme's built-in design assets or upload your own. You can use the shortcut feature for quick access to design elements on Visme. Simply type '/' to search and locate what you need in seconds.

25. Bid Proposal

If you would like to craft a winning bid proposal and enhance your business opportunities, this professional proposal template is perfect.

This template stands out with its captivating design layout, refined color scheme, and an impressive selection of fonts, icons, and images. It features a formal letter, budget breakdown and project commencement and completion terms.

What sets this template apart is its adaptability to suit any industry. Every aspect of this template is also customizable, allowing you to modify content, colors, fonts, shapes and logos to align perfectly with your brand identity.

26. Lawn Care Proposal

Communicate your expertise and dedication to impeccable lawn care with this stunning lawn care bid proposal.

This expertly crafted template boasts a captivating cover page and is filled with captivating fonts, high-definition images of lush greenery and dynamic vector icons.

You can customize every aspect of this template effortlessly. If you want to switch up the images, Visme offers an extensive array of top-notch images and design elements, from 3D icons and shapes to animated graphics, ensuring your proposal stands out vibrantly.

27. Fintech Agency Bid Proposal

Whether your agency specializes in digital banking, blockchain, payments, or other fintech solutions, this template equips you to stand out in competitive bids.

With a striking color palette of black, lemon and white, this template achieves a great balance—bold enough to captivate attention yet professional enough to exude credibility.

You can leverage the sections to highlight your firm's background, methodologies, budget and delivery aspects. The project timeline page is also particularly beneficial to provide clients with a clear glimpse of the project's completion date.

You can seamlessly integrate videos of client testimonials, your services, or a compelling brand narrative, enhancing your proposal's impact.

28. Marketing Campaign Bid Proposal Template

Looking to create a captivating bid proposal for marketing services? This template fits the bill.

The template boasts a lively color palette blending violet and white, setting the stage for a professional presentation.

It includes a succinct summary of your response to the RFP, featuring the challenge and proposed solutions, a compelling "why choose us" section and the estimated budget.

To further elevate engagement, Visme’s interactive features allow for linking specific sections to pricing pages, product page or terms and conditions. You can also employ hover effects or popups to reveal supplementary company information, enhancing the viewer's experience.

Read this article to discover professional bid proposal templates to win new clients.

Tips for Writing Winning Business Proposals

You now understand how to create a business proposal and what should be in a business proposal. Here are some design tips to make your business proposal attractive.

1. Know Your Audience and Recognize Their Needs

Don't make assumptions about your audience. Instead, do your best to understand their specific and unique needs and how you can assist them. Your potential customer wants to see how your solution will address their specific needs, not a generic solution to the problem.

Map your buyer persona to understand their pain points, budget, deadlines and more. This information will improve your chances of closing the deal.

2. Use Professionally Designed Template

When creating your business proposals, use professionally designed proposal templates . The upside is that you won't have to start from scratch, saving you a lot of time.

Using templates allows you to focus more on the copy and contents, ensuring you cover all the bases and include all the necessary information to warrant a positive response.

3. Pay Attention to Design

Every element of your business proposal should be crafted to catch your audience's eye.

Jazz up your cover page with a captivating image that depicts what the proposal is about. Give it a personal touch and build brand recognition by adding your logo on the cover and inner pages. Remember to use beautiful colors and fonts that align with your brand guidelines.

However, when using colors, maintain a contrast between the text and the background color. For example, using dark-colored text on a dark background will make your document impossible to read.

Likewise, avoid utilizing too similar hues or a lighter version of the same color background. Colors with a lot of contrast and color pairs that follow the basic idea of light and dark color combinations function well.

Adopt a minimalistic design to make your proposal look polished and help readers focus on the important information.

Make sure that each element in your proposal has enough white space around it, whether it's text, images, charts or anything else. Avoiding clutter will make your proposal look neat and easy to read.

4. Use More Visuals and Less Text

Visuals bring your presentation to life. And substituting text with more icons, images and visual aids makes your proposal readable. For example, you can use photos to:

• Introduce key stakeholders and team members
• Visualize key milestones, stakeholders and team members
• Demonstrate the look of the finished product
• Showcase customer reviews and testimonials

The proposal template below is an excellent example of how you can use visuals to make your proposal pop.

Charts and infographic elements effectively visualize statistical data, like KPIs and results. You can also use other visual aids like tables, diagrams, icons and tables to represent cost estimates and budgets.

Q. What is the best font for a business proposal?

We recommend using fonts that make your business proposal clear and readable. Basic fonts like Arial, Sans Serif, Courier New, Calibri, Cambria, Times New Roman, Tahoma and Verdana work well. Use a 10 to 12-point font size for the body and a 14–16 point font size for headings.

Q. How do you start an introduction to a business proposal?

Your business proposal's introduction should start with a brief overview of what your company does. Also, it should include what sets your company apart from its competitors and why you should be the top choice for the job or project.

Q. What to Include in a Business Proposal

A business proposal should include the problem statement, proposed solution, scope of work, qualifications, timeline, milestones, pricing and terms.

Q. What Is the Difference Between a Business Proposal and a Business Plan?

A business proposal is a document crafted to persuade a prospective client to choose a company for a particular task or project. It outlines the specific project or service, pricing, deliverables and the value the company can provide.

On the other hand, a business plan is a comprehensive document that serves as a roadmap for an organization's future, guiding decision-making and operations. It outlines the company's objectives, strategies, market analysis, financial projections and operational details.

Unlike a business plan, which is internally focused, a business proposal is tailored externally to win a specific opportunity or contract.

Q. How Many Pages Should a Business Proposal Be?

Generally, a business proposal can range from 1 to 20 pages. However, there's no strict rule on length. The length of a business proposal can vary based on the specific requirements of the project or the expectations of the recipient.

Shorter proposals (one to five pages) are suitable for simpler projects or when the recipient specifies a brief document. More complex projects might require longer proposals with detailed sections on various aspects like methodology, timelines, pricing and terms.

Q. What Is the Basic Format for a Business Proposal?

A typical business proposal usually follows this basic format:

• Cover Page: This page includes your proposal title, company name, submission date and contact information.
• Executive Summary: Your executive summary section gives a brief overview of the proposal, highlighting the key points, objectives and why the proposal should be considered.
• Introduction: This section introduces the company and its background.
• Problem Statement or Needs Assessment: This section describes the client's issue or need that the proposal aims to address. This section clarifies the problem and its significance.
• Proposed Solution or Methodology: Utilize this section to highlight the company's approach to solving the client's problem. You can detail the services, products, or methodologies offered.
• Timeline or Work Plan: Your timeline section should present a schedule or timeline of how the proposed solution will be implemented, including milestones and deadlines.
• Budget or Cost Proposal: Provide a breakdown of the costs associated with the proposed solution, including fees, expenses and payment terms in this section.
• Company Expertise, Experience and Accolades: Give a compelling overview of the company's expertise, experience, relevant projects and qualifications that make it suitable for the project in this section.
• Conclusion/Next Steps: Summarize the key points and reinforce the benefits of choosing your company. Then end with a clear call to action.

Q. What Are the 3Cs of a Business Proposal?

The 3 C's of a business proposal are clarity, compelling and competitiveness. Let's take a brief look at each component:

Your business proposal should be clear and easy to understand. It should articulate the problem, proposed solution, methodology and terms in a straightforward manner. You should also avoid buzzwords and stick to languages and examples that resonate with the client.

Your proposal should be engaging, well-structured and crafted in a way that maintains interest throughout. It should incorporate visuals like images, icons, graphs or charts to complement the text and make the proposal visually appealing. You can also use storytelling techniques to illustrate the problem, the solution and the positive impact your proposal will have.

Competitive

Your proposal needs to be persuasive. It should convince the recipient that your company's solution is the best fit for their needs. This involves showcasing expertise, providing evidence of past successes and demonstrating the unique value your company brings.

Q. How Do I Write My Business Proposal?

Here are some steps to help you write an effective business proposal:

• Understand who your audience is and what their needs are
• Design a compelling cover page, title page and table of contents
• Write your executive summary
• Clearly define the client's problem or needs.
• Propose a solution (product, features and benefits)
• Showcase your company's background, team expertise, experience and qualifications.
• List deliverables, milestones, and timelines
• Provide a detailed budget and payment structure
• Include quotes from satisfied clients or references and evidence of your track record
• Write a conclusion and appendix

Visme's proposal templates come with pre-made sections to make the proposal creation process easier and more efficient. With our intuitive editor, you can customize these sections, add or remove sections as needed to fit your specific needs.

Q. What Are 5 Things All Proposals Should Include?

The five key elements every proposal should include are:

• Project background and objectives
• Problem statement
• Project scope and plan
• Timeline and budget
• Conclusion and next steps

Q. What Are the Do’s and Don'ts of Proposal Writing?

When it comes to proposal writing, there are some do’s and don'ts to keep in mind to ensure that your proposal stands out and increases your chances of success.

• Understand the client's needs and tailor your proposal accordingly. Start with a catchy and attention-grabbing introduction.
• Clearly articulate your value proposition, unique strengths and capabilities.
• Use visuals and graphics to make your proposal more engaging and memorable.
• Include testimonials or case studies to demonstrate your track record.
• Provide a detailed and realistic project plan, timeline, and budget.
• Proofread and edit your proposal thoroughly before submitting it.
• Don't use a generic proposal template without customizing it to the client's needs.
• Don't overpromise or exaggerate your capabilities.
• Don't use jargon or technical terms that may confuse the client.
• Don't submit a proposal that is too long or too short.
• Don't forget to follow up with the client after submitting the proposal.

Q. Which Phrases Are Best Avoided in a Proposal?

• "I think," "I'm not sure," "I believe," and similar phrases can seem hesitant and unconfident. Instead, state your ideas and arguments with conviction.
• "The best," "the greatest," or "the top-ranked"—empty"superlatives like this can come across as exaggerated and lacking credibility.
• "This might be a stupid question, but..."—never apologize for asking a question or suggesting an idea. It's important to demonstrate confidence in your abilities and ideas.
• Jargon or technical language that the client may not understand; keep in mind that the proposal may be read by individuals who are not familiar with your industry or field. Use plain language and avoid technical terms that may be confusing.
• "Trust me"—this phrase can sound condescending and unprofessional. Instead, provide evidence and data to support your arguments and proposals.
• "Our competitors are terrible." Avoid speaking negatively about your competitors. Rather, focus on highlighting your own strengths and unique selling points.

Writing business proposals is a lot of work. With the tips and templates shared in this article, you have everything you need to create a professional proposal that impresses your client and wins them over.

Start creating business proposals today to market your business and close more deals. Visme's proposal maker is perfect for creating professionally designed business proposals for any business, industry or use case.

Easily put together winning business proposals using Visme

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Difference Between a Business Plan & a Business Proposal

A business plan and a business proposal are very different documents, with different purposes and goals. A business plan is a factual broad description of a company on the executive and operational level. A business proposal is a focused sales document intended to describe how a company will approach a project, state the value of the project to the client and solicit the client's business. A business plan is a written presentation of fact. A business proposal is a quote and call to action.

Reasons for a Business Plan

A business plan documents your vision for your business and how you intend to achieve that vision. It contains financial projections of what the business will cost to develop and operate plus an estimation of the revenues to be generated. Its purpose is to provide a reasonably detailed explanation of your business for use by potential investors, suppliers, prospective employees, accountants, attorneys and other people who need a quick but comprehensive understanding of what your company does and its potential for success. The primary reason for a business plan is to record and convey information.

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Why create a business plan, how to rescind a business letter, 6 types of business plans, how to create a new business plan, how to conclude a business plan, reasons for a business proposal.

Proposals may be unsolicited business ideas presented to a potential customer or partner, or they may be answers to requests for proposal submitted to your company by a potential client. They are limited in scope to a particular project or need. A business proposal also generally has a specific audience. The primary reason for a business proposal is to solicit or develop a business opportunity.

Business Plan Structure

A business plan has three elements: description of the business model, the marketing model and financial projections. It consists of informative sections, including the executive summary, business description, marketing model, analysis of industry competition, build-out plan, operations plan, introduction of management, and a discussion of financial issues and projection of results. It is introduced by an executive summary, which can be a dense abstract or a longer marketing tool to attract interest in the business plan. The business plan is an informational document designed to factually display your company's operations and potential.

Business Proposal Structure

A business proposal written in response to a Request for Proposal (RFP) should follow the format requested in the RFP. Generally, this involves a quick description of your company's services and products that are relevant to the goals of the RFP, a reiteration of the scope of work, answers to specific questions posed in the RFP and a quote detailing materials, tools, labor, delivery and other elements of the cost of the project.

An unsolicited business proposal intended to create and develop a business opportunity follows essentially the same format but anticipates questions the potential client might have. A proposal is more of a marketing document, designed to convince the audience to do business by presenting a value proposition and a call to action.

• Entrepreneur: An Introduction to Business Plans
• Forbes: The Difference Between a Business Plan and Planning

Victoria Duff specializes in entrepreneurial subjects, drawing on her experience as an acclaimed start-up facilitator, venture catalyst and investor relations manager. Since 1995 she has written many articles for e-zines and was a regular columnist for "Digital Coast Reporter" and "Developments Magazine." She holds a Bachelor of Arts in public administration from the University of California at Berkeley.

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Would Kamala Harris' small business plan work? NH economists are optimistic

NORTH HAMPTON — Throwback Brewery co-owner and co-founder Nicole Carrier stood in front of about 3,000 people Wednesday and said President Joe Biden and Vice President Kamala Harris created the opportunity for the local business to expand.

“As small business owners, we know what it takes to watch a dream become a reality and to bring a small business to life,” Carrier said. “It takes a lot of passion and tireless effort. It’s not easy, but it is possible. And it all comes back to opportunity.”

Carrier, her co-owner and co-founder Annette Lee, and head chef Carrie Dahlgren introduced Harris at the Democratic nominee's first New Hampshire presidential campaign event, held Wednesday at Throwback Brewery in North Hampton. Harris announced her plan to help small businesses with tax breaks.

Some opportunities for Throwback Brewery, Carrier said, were thanks to the Biden-Harris administration.

Throwback Brewery received COVID-19 relief funding, part of which was an  Economic Injury Disaster Loan , to build an event space they’re calling “Jericho’s Landing.” This funding came from the American Rescue Plan, which was a Biden initiative to provide relief to the American people and economy during the COVID 19 pandemic.

Throwback Brewery also used Rural Energy for America Program grants to install solar panels on its roof:  174 panels  the owners say makes it the largest solar-powered brewery in New Hampshire. The owners are also using that money to install a “climate battery.”

Economists say Harris’ small business plan is 'in the right direction'

Under her small business plan, Harris is proposing raising the tax deduction for small business's startup expenses to $50,000, up from the current $5,000 deduction for startups. Her goal, she said, was 25 million new small business applications by the end of her first term, and she said she would focus on small businesses in rural communities like those in New Hampshire. Harris also proposed a standard deduction for small businesses to simplify filing a tax return.

Bruce Sacerdote, who is Dartmouth College's Richard S. Braddock 1963 professor in economics, said the tax deduction is “potentially a very excellent idea.” Employing a plurality of American workers, small businesses are important both in terms of job growth and the number of workers, he said.

“There’s no question it will help small businesses,” Sacerdote said. “It's clearly directionally correct. It's focused on new businesses. So therefore, I would think that would tend to lead to incremental employment growth. .... It will encourage growth of businesses’ employment.”

More: Kamala Harris expands lead over Donald Trump in two NH polls: Experts explain why.

While it may be ambitious, he said, Harris' goal of 25 million new small business applications seems doable.

Sacerdote thinks Harris' choice to announce these plans in New Hampshire, which has many small businesses in small cities and towns, was very “apropos." More sparsely populated areas of the state, he said, are in a "real need" for additional small businesses like restaurants or general stores.

"I think that policies that cause those to sprout up, or make it easier to sprout up, would be a really helpful," he said.

Jeffrey Sohl, professor of entrepreneurship and decision sciences at University of New Hampshire, said while cash or a tax credit would be even more helpful for people looking to start new businesses, “there’s no doubt” that a tax deduction will be an incentive.

“If you think of New Hampshire, live free or die, that's kind of a model for entrepreneurship, right? Get to choose your own destiny. Actually, New Hampshire has a pretty vibrant entrepreneurial culture,” Sohl said. “So if you think of that, let's assume that in New Hampshire, there's a lot of people that have that propensity, or that willingness, or are thinking about starting (a business). So sure, it's going to help eventually.”

Harris also said she will “make the tax code more fair” by taxing capital gains and raising the corporate tax rate from 21% to 28%. She said her administration would tax capital gains at a rate that “rewards” investment in innovators and small businesses. This could help pay for tax breaks for small businesses.

More election news: Gov. Sununu shares what Trump must do to win NH and 2024 election

Sacerdote isn’t sure these policies would necessarily help small businesses, but he doesn’t think they will hurt, either.

“I think in both cases, the capital gains tax increase she's proposed and the corporate tax increase she's proposed are minimizing the distortions on activity,” Sacerdote said. “That is to say, I don't see people stopping to invest in new ideas, in public equities and in corporations because of these slightly higher tax rates.”

Harris attempts to show her chops on the economy

The economy remains a big topic in this year’s presidential election across the country, and New Hampshire is no exception: In a  mid-August poll  from the New Hampshire Institute of Politics, the economy/inflation is the top issue for more than a quarter of New Hampshire voters.

Harris’ focus on small business may be her attempt to appeal to those concerned voters.

“I would expect, based on what I've seen so far, that she is trying to blunt the notion that her administration will be a very high-tax, low-growth, anti-business administration,” Sacerdote said. “She’s admitting that some additional sources of revenue are needed, but she's putting in place caps on how high those rates might go, who might pay the additional taxes, and offering ... tax cuts where she thinks it's appropriate.”

Sohl said it’s a good sign Harris is thinking about the economy and coming up with plans.

“Part of a president’s job ... is the economy,” Sohl said. “And I think she’s got some pretty good ideas on how to manage the economy.”

This article originally appeared on Portsmouth Herald: Would Kamala Harris' small business plan work? NH economists like it

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Harris visits new hampshire to tout her small business tax plan.

Democratic presidential nominee Vice President Kamala Harris waves as she steps on stage to address a crowd, Wednesday, Sept. 4, 2024, during a campaign stop, in North Hampton, N.H. (AP Photo/Steven Senne)

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Main Street applauds Harris' small business plan as a tax fight looms

Entrepreneurs are cheering Vice President Kamala Harris’ plan to boost small businesses, but advocates say it foreshadows a bigger fight over the tax code.

On Wednesday, Harris unveiled policy proposals that aim to catalyze small business growth and create more slack in their balance sheets by way of several mechanisms. Those include expanding the tax deduction for startup expenses from $5,000 to $50,000, clearing barriers for owners and their employees to obtain or transfer occupational certifications, and launching a fund for community banks to expand entrepreneurs’ access to capital.

“All of that would be beneficial,” said Sherman Kyse, chef and owner of Dem Dam Burgers, a Biloxi, Mississippi-based eatery. 

Yet others in the small business community are looking to next year with concern, measuring how the assumed gains from Harris’ proposal would compare to those lost should the deductions under the tax law signed by former President Donald Trump expire at the end of next year . Whether Harris or Trump wins, they will likely face a tough battle to pass tax code changes through a potentially divided Congress. 

Meanwhile, during a speech on Thursday meant to sharpen his economic policy, Trump again promised to slash tax rates for businesses and corporations.

Richard Trent, executive director of Main Street Alliance, said Harris’ proposal addresses many economic concerns of the organization’s 30,000 membership nationwide, but he’s also looking ahead to 2025.

“It’s just scratching the surface of what we need to do to ensure that local economies and small business owners are protected in an environment where corporate consolidation has made the largest businesses in our country more powerful than ever before,” he said. For example, he wants to see an expansion of cash grants from the Small Business Administration so that entrepreneurs with shallower pockets can be more competitive.

Eager for a boost

For his part, Kyse, who said he plans to vote for Harris, said the extra money from the startup deduction could help support payroll, better food distributor contracts and warehouse space, a $70-per-month expense he’s so far avoided.

“My pops’ shed is completely filled with restaurant equipment,” he added. 

His business has faced some tough choices of late. Despite ranking second in a major local newspaper for best burger on the coast, Kyse, 43, said grocery inflation and price-cautious patrons have forced him to whittle down both his restaurant and its menu items, which include pastas and seafood nachos. Since 2020, he’s closed three locations across Mississippi’s Gulf Coast stretch. 

Revenue for 2024 stands at about $257,000, he said, down from $360,000 this time last year.

“I’m in the process of restructuring my menu to let them see the cheaper stuff on the value side,” said Kyse, who said it is his 30th menu revamp. For the most recent version — after hearing feedback that some items were too expensive — he went so far as to copy Five Guys’ menu pricing, “and nobody said nothing.”

With two months until her Election Day showdown with Trump, Harris is racing to produce more details for her economic agenda. Her small business proposals follow plans to build millions of new homes and a pledge to crack down on grocery price-gouging. 

Rhett Buttle, founder and CEO of Public Private Strategies — and former economic adviser to both President Joe Biden and Harris — said the proposal shows Harris’ “deep commitment” to entrepreneurs. He also said it was a clear overture to red states as well, noting her promise to expand the State Small Business Credit Initiative, which was built out with funding from Biden's American Rescue Plan and which “Republican governors love,” he added.

“There are broad strokes here to people from all walks of life,” he said. “Small business and entrepreneurship tends to be a great unifier in a world where people have starkly different political divisions.”

Deficits and deductions

If Harris wins, it will be important for the many in the business community to see how her agenda jibes with parts of the tax code that owners and entrepreneurs already favor, including provisions made law under Trump.

Brad Close, president of the National Federation of Independent Businesses, noted the popularity among business owners of Trump’s 2017 law that allows them to deduct 20% of their qualified business income when calculating their taxes. “If the deduction is allowed to expire at the end of next year, millions of small businesses will face a massive tax hike,” he said.

The so-called pass-through deduction has been criticized as one of the most expensive parts of the tax code, with initial estimates projecting a deficit of $414.5 billion across a decade, according to the Joint Committee on Taxation. Last month, the nonpartisan Penn Wharton Budget Model said Trump's overall proposals would increase deficits five times more than Harris' would .

Harris’ small business plan is the latest example of the fine economic line she’s had to walk since her ascendancy to top of the ticket — appealing to a broad swath of moderate voters using populist policies aimed at taxing the richest Americans to spur wealth generation among the poorest.

Charlotte Chaze, 33, doesn’t need much convincing. She already plans to vote for Harris, and the recent proposal includes a number of financial wins for her two-year-old company, Break Into Tech, which sells video courses for professionals to become certified in data analytics. 

A bigger tax deduction would help Chaze expand her staff beyond her current four employees. And she cheers Harris’ plan to levy a 28% tax on long-term capital gains — lower than Biden’s 39.6% proposal but still more than the current 20%.

“As a small business owner who is super successful but doesn’t make enough for the capital gains policy to affect me or my business, that policy will help transfer wealth away from people who have more than they could ever spend, meaning more people will be able to afford my product,” said Chaze, who added that she has resisted raising prices alongside competitors. “It’s just good karma to believe in people over profits.”

J.J. McCorvey is a business and economy reporter for NBC News.

Bill Gates said if he were in charge of the US tax system he'd have paid 'tens of billions' more

• Bill Gates said he would be billions of dollars poorer if he were in charge of the US tax system.
• He told the Independent that he wanted a more progressive tax system and estate tax.
• Gates has committed much of his wealth to charity and vowed to give his kids only a small fraction.

Bill Gates , one of the world's richest people, said he would be much poorer and would have paid way more in taxes if he were in charge of the US tax system.

In an interview with the Independent , when asked if he considered himself to be too rich, Gates said: "If I designed the tax system, I would be tens of billion dollars poorer than I am."

He said that the US tax system "could be more progressive without significantly damaging the incentive to do fantastic things."

The multi-billionaire Microsoft founder told the Independent that he's a "huge believer" in more progressive taxation and the estate tax, explaining that he doesn't believe wealth and power should be concentrated in families because of past successes.

"I don't think we should generally generationally let families whose great grandfather, through luck and skill, accumulated a lot of wealth, have the economic or political power that comes with that," he said.

Gates has previously said that his children would only inherit a tiny fraction of his fortune — $10 million each — barely a dent in his net worth of about $158 billion.

Instead, he has committed huge chunks of his wealth to charitable causes.

The Bill & Melinda Gates Foundation is one of the wealthiest foundations in the world by endowment value, with an endowment of about $75 billion.

According to the foundation's website, Gates and his ex-wife, Melinda French Gates, have given about $59.5 billion to the foundation from its inception through 2023.

Alongside Warren Buffett , Gates also founded a charitable campaign, the " Giving Pledge, " to encourage ultrawealthy people to contribute the majority of their wealth to philanthropic causes.

Related stories

Notable signatories include Elon Musk and Mark Zuckerberg.

Despite efforts to promote philanthropy among the superwealthy, Gates told the Independent that it's not enough to fix the world's problems.

"The big work still has to be done by government," Gates said.

"Philanthropy is not a substitute for government," he added. "Making sure everybody's educated, has food, has shelter — it's the government who's going to create that safety net."

Watch: How Elon Musk makes and spends his billions

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Politics | Kamala Harris to propose tenfold startup tax incentive increase she says will spur small business creation

She’s set to unveil the plan during a campaign stop in the Portsmouth area of New Hampshire — marking a rare deviation from the Midwestern and Sunbelt battlegrounds the Democrat has focused on in her race against former Republican President Donald Trump.

A Harris campaign official, who spoke on the condition of anonymity to discuss a policy plan that hadn’t been released publicly, said Tuesday the change would cover the $40,000 it costs on average to start a business. The proposal would let new businesses wait to claim that deduction until they first turn a profit, to better maximize its impact lowering their taxes.

Such changes would likely require congressional approval. But a series of tax cuts approved during the Trump administration are set to expire at the end of next year, setting up a scenario where lawmakers may be ready to consider new tax policies. The proposal can help Harris show her support for entrepreneurs even as she’s called for higher corporate tax rates.

Since President Joe Biden dropped his reelection bid and endorsed Harris in July, the vice president has focused on campaigning in the “ blue wall ” states of Michigan, Wisconsin and Pennsylvania that have been the centerpiece of Democratic campaigns that have won the White House in recent decades.

She’s also frequently visited Arizona, Nevada and Georgia, all of which Biden narrowly won in 2020, and North Carolina, which last voted Democratic in a presidential race in 2008 but which she’s still hoping to flip from Trump. Biden won New Hampshire by 7 percentage points in 2020, though Trump came far closer to winning it against Hillary Clinton in 2016.

“The cost of living in New Hampshire is through the roof, their energy bills are some of highest in the country, and their housing market is the most unaffordable in history,” Trump posted last week on his social media platform.

Harris’ team says securing 25 million new business applications in four years if she wins the White House would exceed the roughly 19 million such applications filed since Biden took office. And those were millions more than the previous four years under Trump. The vice president’s goal would be a record for new small business applications — but records only go back about 20 years.

Applications to start a business don’t always translate to small businesses actually being formed. Still, Harris’ plan could keep new small businesses that do come to fruition from otherwise incurring more debt which, at a time of high interest rates, might help them better succeed.

In the weeks since Harris took over the top of the Democratic ticket, she has offered relatively few major policy proposals — attempting to strike a political balance between injecting new energy into the race and continuing to support many of the Biden administration proposals she helped champion as vice president.

Harris’ small business plan follows her announcing last month proposed steps to fight inflation by working to lower grocery prices , and to use tax cuts and other incentives to encourage homeownership. The vice president has also proposed ending federal taxes on tips to service industry workers, an idea Trump proposed first.

The plan she’s introducing Wednesday further calls for developing a standard deduction for small businesses meant to save their owners time when doing their taxes, and making it easier to get occupational licenses — letting people work across state lines and businesses expand into new states. Harris also wants to offer federal incentives so state and local government will ease their regulations.

In an effort to spur business investment outside urban and suburban hubs, Harris is pledging to launch a small business expansion fund to enable community banks and federal entities to cover interest costs while small businesses are expanding or otherwise creating jobs. Her team says those efforts will focus especially on areas that traditionally receive less investment.

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