business plan vs proposal

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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 Updated on December 11, 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: 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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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!

Don’t you wish there was a faster, easier way to finish your business plan?

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 Proposal: An In-Depth Comparison

Explore the distinguishing factors and circumstances that make a Business Plan or Business Proposal more fitting for driving success and growth in your enterprise. Gain insights into the purpose, audience, and strategic value of each document, and learn when it’s best to utilize a Business Plan or pitch with a Business Proposal.

Table of Contents

What is the Main Difference Between a Business Plan and a Business Proposal?

The main difference between a Business Plan and a Business Proposal is that a business plan is a formal document that outlines the company’s goals, strategies, market analysis, financial needs, and projections for the future, aimed at providing a roadmap for the business’s success and often used to secure funding or guide the management team. On the other hand, a business proposal is a tailored document created to pitch a specific product, service, or solution to a potential client or partner, detailing how the business can fulfill a particular need or solve a specific problem for the recipient, often with the goal of initiating a transaction or project.

Understanding Business Plans and Business Proposals

A Business Plan is a comprehensive document that outlines a company’s objectives, strategies, market analysis, financial forecasts, and operational structures. It primarily serves as an internal roadmap for the company’s strategic direction and helps to attract investors by showcasing the company’s potential for growth and profit. Business plans are often developed during the foundational stages of a company and updated periodically to guide the company through different stages of growth.

A Business Proposal , on the other hand, is a targeted pitch provided to a specific client or partner to convince them to do business with you. Unlike a business plan, a business proposal is not a broad overview of the entire company. Instead, it is a customized suggestion that outlines how your business can solve a particular problem or meet a specific need of the prospective client. The proposal highlights the benefits of selecting your company’s products or services and typically includes pricing, terms, and conditions for a potential engagement or project.

Key Differences between a Business Plan and a Business Proposal

• Purpose : A business plan is primarily used for strategic planning and securing investment, while a business proposal is aimed at winning a specific contract or project.
• Audience : The audience for a business plan is typically potential investors, stakeholders, or company management. On the other hand, the business proposal is directed towards a specific client or partner.
• Focus : A business plan covers the entire company’s goals and operations, whereas a business proposal targets a specific offering for the client.
• Details : While business plans include detailed financial projections and market analysis, business proposals focus on how your company can meet the client’s needs and the costs associated with your proposition.
• Frequency : Business plans are created infrequently, often at startup or significant growth stages, while business proposals are generated as needed when pursuing new business opportunities.
• Structure : Business plans have a standard structure, including an executive summary, company overview, products/services, and financials, whereas proposals are tailored to the client’s request.
• Standardization : Business plans tend to follow a similar format from one to the next, while proposals are highly customized to align with the potential client’s requirements.
• Duration : The time horizon in a business plan can span several years, reflecting long-term planning, but a business proposal typically concerns the timeframe for a specific project or service offering.

Key Similarities between a Business Plan and a Business Proposal

• Strategic Elements : Both documents outline strategic approaches, whether for the company as a whole or a specific project.
• Research : Thorough market research is essential in creating either a business plan or a business proposal to ensure feasibility and competitiveness .
• Objective Setting : Each document includes clear objectives that the company wishes to achieve, be it long-term company goals or objectives of a contract.
• Persuasive Nature : Both are meant to be persuasive documents that convince the reader to invest in the company or to hire the company for services/products.
• Professional Presentation : A business plan and a business proposal should both be presented in a professional manner, well-organized and free of errors, to make the best impression.
• Financial Information : Financial aspects are crucial in both; while a business plan may have more comprehensive financial projections, a proposal should still outline costs and pricing models.
• Action Plan : Action steps or milestones are outlined in both to guide the intended strategy into practical steps or to give the prospective client a clear timeline for project completion.

Advantages of a Business Plan Over a Business Proposal

• Clarity and focus : A business plan provides a clear roadmap for your company , detailing your objectives, strategies, and financial projections. It enables you to stay focused on your long-term goals and the steps required to reach them.
• Risk assessment : It allows for a thorough risk assessment, helping you foresee potential challenges and devise strategies to mitigate them.
• Investor attraction : A well-crafted business plan is essential for attracting investors and lenders as it showcases the viability and profitability of your business idea.
• Strategic planning : The business plan acts as a strategic planning tool, helping you to align your short-term and long-term goals with the overall vision of the business.
• Operational guidance : It provides detailed operational guidance, outlining day-to-day activities, management responsibilities, and the organizational structure.
• Performance tracking : By setting benchmarks and performance metrics, a business plan makes it easier to track progress and measure success over time.
• Market analysis : A business plan includes an extensive market analysis, offering insights into your target market, competition, and market trends, which are crucial for making informed decisions.

Disadvantages of a Business Plan Compared to a Business Proposal

• Inflexibility : A business plan can be quite rigid, with a focus on long-term strategies and projections that might not adapt well to rapid changes in the market.
• Time-consuming : Preparing a comprehensive business plan requires a significant amount of time and effort, potentially diverting resources from immediate business opportunities.
• Outdated information : A business plan might quickly become outdated if the market or the company’s circumstances change, requiring frequent revisions.
• Cost : The production of a business plan can be costly, especially if it necessitates the expertise of consultants or outside advisers.
• Overemphasis on planning : There’s a risk of over-planning and under-executing, where too much time is spent on creating the perfect business plan instead of taking action.
• Complexity : A business plan’s complexity might be intimidating or overwhelming for small business owners who may prefer the simplicity and directness of a business proposal.
• Less tailored : While a business proposal is often customized to the needs and interests of a specific client or investor, a business plan is a broader document that may not address specific concerns or questions from potential stakeholders.

Advantages of a Business Proposal Over a Business Plan

• Focus on Specificity : A business proposal is usually tailored to a specific client or project, which means it’s highly targeted and practical. This specificity allows the business to directly address the client’s needs and provide a customized solution that a general business plan cannot offer.
• Rapid Execution : Proposals tend to be shorter and more concise, which allows for quicker evaluation and a faster start on the project. Businesses can get to work immediately after the proposal is accepted, shortening the time from planning to action.
• Persuasive Element : A business proposal aims to persuade a particular client or investor to buy into the idea, product, or service. This persuasive nature means that proposals often focus on benefits and competitive advantages, potentially leading to a higher success rate in securing funding or partnership.
• Adaptability : Since a proposal is typically for a particular client or project, it can be easily adjusted for different opportunities or audiences without reworking an entire business plan. This adaptability makes it more versatile in responding to market changes.
• Ease of Preparation : A business proposal can be less daunting to create than a full-blown business plan as it generally does not require as much market analysis and financial forecasting. It allows the business to focus on the immediate opportunity rather than extensive strategic planning.
• Potential for Immediate Feedback : When you present a business proposal, you often do so in a setting that allows for immediate questions and feedback. This gives you the chance to quickly address concerns, modify your offer, and improve the chances of an agreement.
• Enhanced Relationship Building : Crafting a proposal requires understanding the client’s needs and objectives deeply, often leading to stronger client-business relationships. This rapport can be beneficial for both future business and referrals.

Disadvantages of a Business Proposal When Compared to a Business Plan

• Lack of Long-term Vision : A business proposal is often focused on the immediate project and may not outline the long-term strategic direction of the company as comprehensively as a business plan would.
• Limited Scope : Proposals generally address specific aspects of a business’s operations rather than providing a complete picture. This narrow focus might overlook broader opportunities or challenges that a business plan would typically account for.
• Missed Detail : While business proposals are succinct, the brevity can sometimes result in the omission of important details that would be standard in a business plan, such as thorough market analysis or full financial projections.
• Potential Dependency : If a company relies too much on individual proposals for direction, it might find itself without a cohesive strategy which a business plan is designed to provide. This can lead to a reactive rather than proactive business approach.
• Risk of Assuming Knowledge : Proposals may assume that the reader has a certain level of understanding about the company or product, which can be a risky assumption if the reader is new to the business or its offerings.
• Need for Customization : Each business proposal needs to be customized for its intended audience, which can be resource-intensive when dealing with multiple prospects or regular tender submissions.
• Limited Investor Appeal : Investors often prefer to understand the comprehensive strategy and the broader financial implications of a business, something a focused business proposal may fail to communicate in comparison to a detailed business plan.

Situations When a Business Plan Is Preferable to a Business Proposal

• Establishing Clear Direction : When a new business is just starting out, laying out a comprehensive business plan is crucial for establishing a clear direction and objectives for the business. It serves as a roadmap for where the owners want to take the company and how they plan to get there.
• Securing Funding from Investors : A business plan is generally required for entrepreneurs seeking investment or loans. It presents detailed financial projections, market analysis, and business strategies that are essential to convince investors or banks to finance the venture.
• Long-term Strategic Planning : For setting long-term goals and defining the vision of the business, a business plan is more appropriate because it takes a broader view of the business’s place in the market and its growth strategy over the coming years.
• Developing Comprehensive Financial Projections : A business plan includes detailed financial forecasts that cover multiple years. This level of detail is necessary for stakeholders to understand the financial trajectory and potential of the company .

Situations When a Business Proposal Is Preferable to a Business Plan

• Responding to Specific Client Requests : A business proposal is tailored to the needs and specifications of a potential client or partner. When a business wants to offer solutions to another company’s problem, a proposal is best suited for outlining how it will meet those specific needs.
• Competitive Bidding Situations : When entering a bid to win a contract, a business proposal is more advantageous as it focuses on why the business is the best fit for the project, detailing its approach, unique benefits, and value proposition.
• Establishing Partnership Agreements : If a company is looking to form a collaboration or partnership, a business proposal lays out the terms and benefits of the partnership, which is more specific than the broader scope of a business plan.
• Project-driven Opportunities : For businesses that operate on a project-by-project basis, such as construction or consulting, business proposals are the better tool. They provide prospective clients with a detailed breakdown of the objectives, strategies, and costs for each unique project.

What components should be included in a business plan?

• Executive Summary : An overview of the business and its strategy
• Company Description : Legal establishment, history, start-up plans, etc.
• Market Analysis : Industry, market and competitor research
• Organization and Management : Business and management structure
• Service or Product Line : Description of what you’re selling
• Marketing and Sales Strategies : How you’ll attract and retain customers
• Funding Request : Your current funding requirements
• Financial Projections : Balance sheets, cash flow statements, and income statement forecasts
• Appendix : An optional section that includes résumés, permits, and other legal documents

How often should a business plan be revised?

A business plan should be reviewed and revised at least annually, or more frequently if there are significant changes in the market, the business model, or if new challenges or opportunities arise .

In what scenarios is a business proposal unnecessary?

A business proposal may not be necessary when transactions are straightforward and do not require detailed explanations, such as standard retail sales or when there is already an established relationship with the client based on trust and familiarity.

Can a business proposal lead to a long-term relationship with a client?

Absolutely. If a proposal leads to a successful project and client satisfaction, it can serve as the foundation for a long-term business relationship and future projects or collaborations.

What is an unsolicited business proposal?

An unsolicited business proposal is one that is offered without an explicit request from the potential client. It often reflects the proposer’s initiative to identify potential needs of the recipient and offer solutions to unaddressed challenges.

How can you make a business proposal stand out?

To make a business proposal stand out, it should clearly articulate the unique value proposition, be tailored to the client’s specific needs, contain compelling and concise content, and demonstrate a deep understanding of the client’s industry and challenges.

Are there any legal considerations when drafting a business proposal?

Yes, a business proposal should ensure that all claims and statements are truthful and that no proprietary or confidential information is disclosed without permission. Additionally, the terms and conditions should be clearly outlined to avoid any misunderstandings, and if accepted, it can be the basis for a legally binding contract.

Business Plan vs Proposal Summary

The decision between a Business Plan and a Business Proposal hinges on the specific requirements, goals, and context of your enterprise. A Business Plan lays the foundation for your company’s long-term strategy, risk mitigation, and operational guidance, with an expansive view of the business’s aims and the means to attract investors. Conversely, a Business Proposal concentrates on the immediacy of client-specific projects, presenting a tailored solution with a persuasive edge to secure contracts and foster client relationships swiftly.

About The Author

Hidayat Rizvi

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Business Plan vs. Business Proposal

• 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 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 updated on February 01, 2023

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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Content Approved by UpCounsel

• Business Proposal Ideas
• Comparison Between Business Proposal and Business Plan
• Business Contract Proposal
• Business Proposal Introduction
• How To Write A Business Proposal
• Writing A Contract Proposal
• LLC Business Plan Template
• Sample of a Good Business Plan
• Service Business Plan
• How to Contact Companies for Business

Difference Between a Business Plan and a Business Proposal

Table of contents

It’s natural to get confused between a business proposal and a business plan if you are planning to turn your idea into reality. While business proposals and plans may sound similar on the surface, they have differences — such as distinct purposes and formats. 

A business plan describes your business goals, strategies, and financial projections. A business proposal, on the other hand, proposes a specific solution to a problem or opportunity and helps you persuade the relevant stakeholder to invest in your business. 

However, writing a business proposal or a business plan can be challenging, especially if you are confused about their purpose. In this blog, we will explain the difference between a business plan and a business proposal and its major components.

Business Plan

A business plan tells the investors how you plan to ship your product to enough people to clock revenue. It’s about the strategies that will make you the first buck. 

A business plan keeps your team on the same page — you can use it as a guiding light. It can help you track the progress of your business, give you a roadmap, and help you make decisions about your business’s future.

Plus, it can be helpful when it comes to pitching your business idea to a third party, for example, when seeking a loan.

Components of a Business Plan

A business plan is majorly divided into three sections, which include an executive summary, a sales and marketing strategy, and a financial plan. 

An executive summary is a brief, clear, and compelling overview of your business. It is usually the first section of the document, and it contains the most important information, such as your strengths. 

These can be further broken down into the following sections:

• Description of products and services, including mission, vision, and objectives of the business
• Target market
• Competitive advantage
• Industry and Competitor Analysis
• Marketing strategy
• Operating plan
• Team structure and qualifications
• Internal business analysis
• Management introduction 
• Financial analysis
• Cash flow statement or sales forecast
• Break-even analysis

Business Proposal

A business proposal is a separate written document that outlines a specific business opportunity, project, or idea and presents it to potential clients. 

It intends to persuade them to take action, such as accepting a business deal or entering into a partnership, thereby helping you get new customers or partners. 

A business proposal should be customized to the needs and interests of the receiver. A generic proposal will rarely help you meet your business goals. 

At the same time, ensure your proposal is well-organized, persuasive, and creative. Check out these free business proposal templates to impress your clients. 

Solicited and Unsolicited Business Proposals

Proposals are solicited from you, or you send them on your initiative. 

You write a solicited proposal in response to a prospect’s or customer’s request for a product. They may ask you verbally, or they may issue a written request for proposals (RFP). A solicited business proposal contains a detailed description of the product, service, or solution that you offer to solve the customer's problem or need. It’s generally easier to write because you know what the customer wants or expects. 

But if you’re writing the proposal on your own, which is the case with unsolicited business proposals, then you’re convincing the receiver to work with you or buy from you. Such proposals are often challenging to write because you have to convince them they have a problem and you have a solution.

Components of a Business Proposal

The following are the key components of a business proposal :

• Executive summary
• Introduction
• Problem statement
• Scope of work
• Benefits of Return on Investment (ROI)
• Call to Action (CTA)

Business Plan vs. Business Proposal

While a business plan outlines your goals and explains how you will achieve them, a proposal sells your product to potential customers.

In the following table, we have summarized the main differences between a business plan and a business proposal:

Streamline the proposal creation process

To wrap up, a business proposal is a document that pitches your products or services to a potential client, while a business plan outlines your goals, strategies, and financial projections for your business. 

With business management software like Cone, you can easily streamline and automate your proposal creation while ensuring your proposals are bespoke and customized. Sign up for free and experience the seamless proposal creation process for yourself. While you’re at it, check out other business proposals and management resources we have for you.

How to Write a Business Proposal

Briana Morgaine

8 min. read

Updated March 18, 2024

A business proposal can make or break your chances of securing a new client. Write a great one, and you’ll likely snag their business.

Write a poor one, and you might lose out—even if you’re offering the best service out there. So, how do you write a business proposal? What is the proper format? What do you need to include?

While it all depends on your industry, and whether or not you’re offering a product or service, writing a business proposal is pretty straightforward. We’ll answer all those questions and more throughout the course of this guide. 

• What to expect with this business proposal guide

Whether you’re starting fresh or need to look at a specific section, here’s what we’ll be covering in this guide. 

• What a business proposal is
• The differences between a business proposal and a business plan
• The format of a business proposal
• How long to make your business proposal
• How to write a business proposal

You can download a  free business proposal template here  to start writing up your own proposal as you work through this article. By the end, you’ll be prepared to develop a well-written business proposal that can explain your business clearly and win more clients. Let’s get started.

• What is a business proposal?

A business proposal is a document you’d send to a prospective client, outlining the service you’re offering, and explaining why you’re the best person for the job. 

It’s a  pitch by a business or individual  to complete a specific job or project, to supply a service, or, in some instances, to be the vendor of a certain product.

What are the different types of business proposals?

A business proposal can be either solicited or unsolicited. With a solicited proposal, the prospective client will put out a request for proposals; with an unsolicited business proposal, you are approaching a client in hopes of attracting their business, even though they did not explicitly request a proposal.  

While both are commonplace, a solicited proposal is an easier sell, as your prospective client has already decided that they want to make a purchase or use a service, and they’re evaluating possible vendors or businesses.

With a solicited proposal, your prospective client might have issued an RFP, or “request for proposal.” This is exactly what it sounds like—they want you to send over a business proposal so they can take a look at it.

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• Differences between a business proposal and a business plan

A business proposal is not the same as a  business plan . This is the most common misconception, but while there are areas of overlap (like your  executive summary ) the two are different.

That being said, you can certainly pull information from your business plan while writing your business proposal—in fact, that’s a great way to start.

But don’t confuse the two; they are distinct and separate. In short, a business plan represents the cohesive strategy of how your business operates and makes money. A business proposal is an official pitch to clients selling your products or services. 

A business proposal outlines a particular product or service offered by an established business to a prospective client.

You’re trying to sell your prospective client on your product or service, not on your business itself. You’re not after funding, as you are with a business plan, you’re trying to make a sale.

A business proposal is also not an estimate; although you’ll likely touch on costs and pricing in your business proposal, an estimate is much more informal and just a quick look at the costs, not the whole picture.

• What goes into a business proposal?

Your business proposal should address the three Ps:

• Problem statement: What your customer’s current problem is
• Proposed solution: How your business solves that problem better than other solutions
• Pricing: How much that solution costs compared to alternatives

If you’re stuck on how to start, maybe try brainstorming first; start with these three points, and you’ll have a rough, bare-bones version of your business proposal.

Once you’ve done that if you’re ready to go more in-depth, here is a step-by-step look at how to format your business proposal.

Your business proposal should start with a title page, which should include your name, the name of your company, the name of the person to whom you’re submitting your proposal, and the date submitted.

Table of contents

Depending on how long your business proposal is, a table of contents is a nice touch. Include it after your title page, and before you launch into any details. If you’re delivering it as a PDF, including anchor links down to each section, so it’s easy to get to specific areas. 

Executive summary

Introduce your proposal with a great executive summary, one that really sells your business and the products or services you provide—it’s about why you’re the right company for the job. You can draw from your business plan’s executive summary here, too.

Statement of problem, issue, or job at hand

Following your executive summary, go on to discuss the problem that the client is currently facing. Think of “problem” or “issue” loosely; after all, their main problem may just be finding the right person to complete their project. But be sure you understand why they want the product or service they’re seeking. If the proposal is for developing a brand new website, make sure you understand what they want to get out of the site—better sales, more content management flexibility. 

This is the place to show your new client that you  understand their needs , and fully grasp the issue they are trying to solve. Take this opportunity to restate the issue they are facing in your own words so that they know you understand what they are looking for.

Approach and methodology

This section shows how you plan to tackle your potential client’s problem, and the steps you’ll take to carry out your plan.

This is where you’ll get into the nitty-gritty of how you actually plan to fulfill your client’s needs. While earlier sections might have been a bit surface-level, this section of the business proposal is where you’ll go into detail about what steps you’ll take to solve their problem.

Be careful of going into  too  much detail, though—keep the jargon to a minimum. Your client should be able to follow along and get a clear sense of your plan, but you don’t want to drown them in minutiae.

Qualifications

Go ahead, brag a little—this is the section of your business proposal where you get to convince your potential client why you are the most qualified person to take on the job.

You can mention any relevant education, industry-specific training, or certifications you have, your past successful projects of a similar nature, years of experience, and so on.

Schedule and benchmarks

Be clear with your potential client: How long will your proposed project take?

Making sure you and your prospective client are on the same page from the outset will help make sure that the relationship stays positive for both of you, and that you don’t set your client up with unrealistic expectations.

While you might be tempted to underestimate how long it will take you to complete the project, don’t. Don’t promise what you can’t deliver!

If you’re offering a product, this section might not be applicable to you, so feel free to omit it. The business proposal format is flexible, so tailor it to suit your business and industry.

Cost, payment, and any legal matters

Here is where you get down to brass tacks and state the cost, and payment schedule if necessary.

How you structure this section will largely depend on the particular project or service you are offering. A section entitled “Fee Summary” may be sufficient if one-time payment is required; otherwise, a “Fee Schedule” list or pricing table might be more appropriate. Always refer back to the client’s RFP whenever possible, to make sure you’re supplying them with all the information they need to help make their decision.

If there are any legal issues to attend to, such as permits or licensing, include this information here. Feel free to add a section entirely devoted to handling the legal side of the project if need be.

This is your final sell—don’t be afraid to detail for your prospective client all they have to gain by choosing you to complete the project.

Impress upon your clients why you are the best choice, and all the ways in which their business will benefit from choosing you and your business as their solution.

• How long should a business proposal be?

When it comes to the format of a business proposal, this is the million-dollar question without an answer. Remember in school, when you’d ask your teacher how long an essay should be, and they’d reply, “as long as it takes to answer the question.”

The same applies to your business proposal. It ultimately depends on your industry, the scope of the project, and the client’s specifications in terms of detail and elements included.

That being said, the tighter your initial proposal can be and the more directly you can make your point, the easier it will be to pitch it to clients. Start by following the business proposal format above as a guide, and you’ll be well on your way to creating a winning business proposal—and securing new clients.

Bri Morgaine is a seasoned content marketing leader with a decade of experience in copy editing, social media operations, and content strategy— having honed her skills at industry giants like Palo Alto Software and Andreessen Horowitz.

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

Business proposal 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 proposal 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. 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 generator 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 a proposal 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 and Plan 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 outlay information about a business changed the way companies created their business plan. Many businesses lose sleep trying to figure out how you’re going to present a business plan that can affect a company’s future.

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 for free today and get your free trial!

ABOUT THE AUTHOR

Abbey Claire Dela Cruz

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Business Proposal vs Business Plan: Startup Guide

Starting a new business can be an exciting venture filled with endless opportunities. However, it can also be overwhelming and challenging, especially when it comes to the initial stages of planning and strategizing. One crucial aspect that often confuses entrepreneurs is the difference between a business proposal and a business plan. While they sound similar, these two documents serve distinct purposes and have different structures. In this comprehensive guide, we will delve into the world of startups and explore the nuances of business proposals and business plans, helping you navigate through this crucial step of launching your new venture.

Understanding the Basics: What is a Business Proposal?

Before diving into the details, let’s begin by understanding what exactly a business proposal entails. Think of a business proposal as a document that outlines a particular project or idea and proposes a solution to a problem. It serves as a sales pitch, designed to persuade potential investors, partners, or clients to support your business idea. The primary goal of a business proposal is to secure funding, partnership, or collaboration by presenting a compelling case for your project’s viability and profitability.

Creating a business proposal involves conducting thorough research, analyzing market trends, and understanding your target audience. It should outline the problem, provide a proposed solution, explain why your solution is unique and feasible, and present a clear and concise action plan. A well-crafted business proposal showcases your expertise, credibility, and vision, capturing the attention and interest of your audience.

The Importance of a Business Plan

Now that you have a grasp of what a business proposal entails, it’s time to explore the significance of a business plan. A business plan is a comprehensive document that outlines the overall strategy and operations of your business. It serves as a roadmap, guiding you through each stage of your startup journey. Unlike a business proposal, which is primarily focused on securing support, a business plan is an internal document that helps you define your business objectives, set goals, and make critical decisions.

A well-structured business plan will include a detailed description of your business, market analysis, competitor analysis, marketing strategies, financial projections, and executive summary. It provides a holistic view of your business, enabling you to analyze its viability, identify potential challenges, and develop strategies for growth and sustainability. A business plan is an essential tool not only for attracting investors but also for guiding your day-to-day operations and ensuring the long-term success of your business.

The Key Differences

Now that we have established the basics of business proposals and business plans, it’s time to delve deeper into the key differences between the two.

1. Purpose and Audience

A business proposal is meant to persuade external stakeholders, such as investors, partners, or clients, to support your business idea. It focuses on highlighting the profitability and feasibility of your project. On the other hand, a business plan is an internal document primarily used by the entrepreneur and key stakeholders, such as employees and potential lenders. It helps you define your business’s overall vision, strategy, and operations.

2. Structure and Format

While both documents require a strategic approach, they differ in structure and format. A business proposal is typically shorter and more concise, focusing on the problem, proposed solution, and action plan. It often includes visual aids, such as graphs or charts, to present data effectively. On the other hand, a business plan is a comprehensive document that covers all aspects of your business, including marketing strategies, financial projections, and operational details. It is usually longer and more detailed than a business proposal.

3. Timeframe and Flexibility

A business proposal is usually prepared for a specific project or opportunity, and its timeframe is relatively short-term. It often requires quick decision-making and adaptation to market conditions. Conversely, a business plan is a long-term document that outlines your business’s overall strategy for several years. It allows for more flexibility and can be adjusted as your business evolves and grows.

The Interplay Between Business Proposals and Business Plans

While business proposals and business plans serve different purposes, they are interconnected and complement each other in the entrepreneurial journey. A well-crafted business proposal can serve as the foundation for creating a comprehensive business plan. The insights gained during the proposal stage, such as market research, customer analysis, and financial projections, can be incorporated into your business plan to provide a more robust and strategic framework.

Moreover, a successful business proposal can attract potential investors and partners who may require a business plan to evaluate the long-term sustainability and growth potential of your venture. In this sense, the business proposal acts as a gateway to developing a comprehensive business plan, ensuring that you are well-prepared to take your idea to the next level.

Ensuring Success: Best Practices for Business Proposals and Business Plans

Now that we have explored the differences and interplay between business proposals and business plans, let’s dive into some best practices to ensure success in creating both documents.

1. Clearly Define Your Objectives

Before starting any document, it is crucial to have a clear understanding of your objectives. Clearly define the problem you are trying to solve, your proposed solution, and the outcomes you wish to achieve. This clarity will guide your research and help you communicate your vision effectively.

2. Conduct Thorough Market Research

Market research is a critical component of both business proposals and business plans. Identify your target audience, understand market trends, analyze competition, and gather data to support your claims and projections. This information will validate your proposal or plan, instilling confidence in your stakeholders or potential investors.

3. Craft a Compelling Story

Both business proposals and business plans should tell a compelling story that engages your audience and captures their attention. Use persuasive language, incorporate storytelling techniques, and leverage visual aids to communicate your vision effectively. Remember, people are more likely to support a business that they can connect with emotionally.

4. Seek Feedback and Refine

Don’t shy away from seeking feedback from trusted mentors, advisors, or colleagues. Share your business proposal or business plan with them and ask for their honest opinions. Their insights can help you identify blind spots, strengthen your argument, and refine your document for maximum impact.

In Conclusion

As an aspiring entrepreneur, understanding the nuances of business proposals and business plans is crucial for the success of your startup. Both documents serve distinct purposes and have unique structures, but they are interconnected and essential in your entrepreneurial journey. A compelling business proposal can pave the way for crafting a comprehensive business plan, guiding you towards achieving your business objectives. Remember to incorporate the best practices mentioned above and tailor your documents to your specific industry and target audience. With a well-crafted business proposal and a robust business plan, you will be well-equipped to navigate the challenging yet rewarding world of startups.

So, go ahead, put your ideas on paper, and embark on your entrepreneurial voyage with confidence and conviction. Success awaits those who dare to dream big and back it up with a well-structured business proposal and a comprehensive business plan.

References:

• Wikipedia – Business proposal
• Wikipedia – Business plan

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Why Create a Business Plan?

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• How to Create a New Business Plan
• How to Conclude a Business Plan

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.

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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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, 8 reasons why paper-based business proposals are dead and digital business proposals are superior, what is a business proposal and how to write it for b2b sales.

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, how often should a business plan be updated, 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 details a company's goals and how it intends to achieve them. Business plans can be of benefit to both startups and well-established companies. For startups, a business plan can be essential for winning over potential lenders and investors. Established businesses can find one useful for staying on track and not losing sight of their goals. This article explains what an effective business plan needs to include and how to write one.

Key Takeaways

• A business plan is a document describing a company's business activities and how it plans to achieve its goals.
• Startup companies use business plans to get off the ground and attract outside investors.
• For established companies, a business plan can help keep the executive team focused on and working toward the company's short- and long-term objectives.
• There is no single format that a business plan must follow, but there are certain key elements that most companies will want to include.

Investopedia / Ryan Oakley

Any new business should have a business plan in place prior to beginning operations. In fact, banks and venture capital firms often want to see a business plan before they'll consider making a loan or providing capital to new businesses.

Even if a business isn't looking to raise additional money, a business plan can help it focus on its goals. A 2017 Harvard Business Review article reported that, "Entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical nonplanning entrepreneurs."

Ideally, a business plan should be reviewed and updated periodically to reflect any goals that have been achieved or that may have changed. An established business that has decided to move in a new direction might create an entirely new business plan for itself.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. These include being able to think through ideas before investing too much money in them and highlighting any potential obstacles to success. A company might also share its business plan with trusted outsiders to get their objective feedback. In addition, a business plan can help keep a company's executive team on the same page about strategic action items and priorities.

Business plans, even among competitors in the same industry, are rarely identical. However, they often have some of the same basic elements, as we describe below.

While it's a good idea to provide as much detail as necessary, it's also important that a business plan be concise enough to hold a reader's attention to the end.

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, it's best to fit the basic information into a 15- to 25-page document. Other crucial elements that take up a lot of space—such as applications for patents—can be referenced in the main document and attached as appendices.

These are some of the most common elements in many business plans:

• 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: Here, the company should describe the products and services it offers or plans to introduce. That might include details on pricing, product lifespan, and unique benefits to the consumer. Other factors that could go into this section include production and manufacturing processes, any relevant patents the company may have, as well as proprietary technology . Information about research and development (R&D) can also be included here.
• Market analysis: A company needs to have a good handle on the current state of its industry and the existing competition. This section should explain where the company fits in, what types of customers it plans to target, and how easy or difficult it may be to take market share from incumbents.
• Marketing strategy: This section can describe how the company plans to attract and keep customers, including any anticipated advertising and marketing campaigns. It should also describe the distribution channel or channels it will use to get its products or services to consumers.
• Financial plans and projections: Established businesses can include financial statements, balance sheets, and other relevant financial information. New businesses can provide financial targets and estimates for the first few years. Your plan might also include any funding requests you're making.

The best business plans aren't generic ones created from easily accessed templates. A company should aim to entice readers with a plan that demonstrates its uniqueness and potential for success.

2 Types of Business Plans

Business plans can take many forms, but they are sometimes divided into two basic categories: traditional and lean startup. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These plans tend to be much longer than lean startup plans and contain considerably more detail. As a result they require more work on the part of the business, but they can also be more persuasive (and reassuring) to potential investors.
• Lean startup business plans : These use an abbreviated structure that highlights key elements. These business plans are short—as short as one page—and provide only the most basic detail. If a company wants to use this kind of plan, it should be prepared to provide more detail if an investor or a lender requests it.

Why Do Business Plans Fail?

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

How frequently a business plan needs to be revised will depend on the nature of the business. 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 an option when a company prefers to give a quick explanation of its business. For example, a brand-new company may feel that it doesn't have a lot of information to provide yet.

Sections can include: a value proposition ; the company's major activities and advantages; resources such as staff, intellectual property, and capital; a list of partnerships; customer segments; and revenue sources.

A business plan can be useful to companies of all kinds. But as a company grows and the world around it changes, so too should its business plan. So don't think of your business plan as carved in granite but as a living document designed to evolve with your business.

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

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

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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).

• Tips for Writing Winning Business Proposal

20 Business Proposal Templates You Can Customize Now

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 templates to get an idea of what yours can look like. Join Mike on this video from our YouTube channel. 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.

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.

Visme has tons of business proposal templates with different design layouts and structures. So all you need to do is customize the template with your preferred fonts, colors, images, videos and other visual aids. Your document will be ready for use.

Below are some captivating templates for making your business proposal.

Template #1: Software Development Proposal

Use this stunning template to convince prospects to hire your software development service. The template contains all the important sections you need to convey the right message, including mission and vision, budget and pricing, previous clients and more.

You can also use this template to create technology-related proposals. Go ahead and edit content and change images, fonts and color themes to suit your unique needs.

Template #2: Advertising Proposal Template

This template features a vibrant color that grabs viewers' attention from the get-go. That makes it the perfect choice for communicating the value of your advertising solution to your top executives or clients. You can also repurpose this as an advertising company proposal or a marketing proposal template.

Leverage Visme's vast collection of fonts, images, videos and colors to find the unique visual elements that match your brand. You can collaborate with your team and adjust the template until you get the perfect design.

Template #3: Real Estate Investment Proposal Template

Are you looking to attract new clients for your real estate business? This proposal template is a great fit. You can spread the word about your business and share details about:

• Your portfolio and wealth of experience
• Customer testimonials
• Properties available for investment

You can conveniently tweak this template to appeal to companies, investors, homeowners, contractors and more. Feel free to include additional sections or replace visuals and other design elements like fonts, colors, icons, images and more.

Template #4: Interior Design Proposal

If you're eager to create a visual impression of your audience, this sophisticated template is a great starting point. The templates feature a rich blend of visuals and text, showcasing key elements like:

• Rundown of services
• Clients you've served
• Proposed plan
• Pricing breakdowns and more

Not satisfied with the content or visuals? Visme has got you covered. We have a broad collection of high-quality stock photos , videos and animations to make your proposal stand out.

Template #5: Insurance Proposal Template

Whether you insure autos, homes, offices, life or everything, this eye-catching template can help you ramp up sales .

With Visme's detailed proposal template, you can give your clients an in-depth view of insurance plans. Incorporate our wide array of images, videos, vector icons and shapes into your work to give it your own unique spin.

Quickly download your proposal document as a PDF or share it with colleagues and prospects online using a shareable link.

Template #6: 3D Product Visualization Platform Proposal Template

Pitch your 3D product visualization platform to clients using this editable proposal template. The creative use of multiple colors and 3D shapes on each page makes the template unique and engaging.

Break down the entire project proposal and highlight critical sections like project overview, budget, roadmap, terms and conditions. Select and use your preferred visuals, typeface and color theme, all sourced from Visme's vast design library.

Template #7: Clinical Laboratory Services Proposal Template

There's no limit to what you can achieve with this customizable template. You can modify it for multiple use cases, including pharmaceutical, dental, nursing and other medical-related services.

Use this attractive template to showcase your products and services, experience, certifications and location of your facilities.

You can insert your preferred content, images, videos and animations to make your proposal captivating, engaging and interactive. Personalize this template with your color theme , font and logo to match your brand guidelines .

Template #8: Roofing Proposal Template

This business proposal template is a perfect pick for different types of construction and civil engineering projects. They provide stakeholders with an insight into the scope of work, proposed plan and pricing, testimonials and more.

It prominently includes visuals of past work and testimonials, adding a layer of social proof. With our expressive typefaces, colors and visuals, your content is sure to stand out from the crowd.

Choose one that suits your needs and apply it to your design.

Template #9: HVAC Proposal Template

Customize this modern company proposal template to demonstrate your expertise in HVAC. This proposal elaborates on all relevant details regarding the scope of work, project timeline and cost, client list and testimonials.

The best part is that you can use this template to assert your competence in other fields like electrical, plumbing, landscaping and more.

From your dashboard, Visme lets you customize your brand kit to save brand colors, logos and fonts to ensure design consistency. Any team member can create documents from your account and branding will automatically apply to their work.

Template #10: Simple Business Proposal

Here's a simple business proposal template that caters to multiple use cases. You can use it to showcase your products and services, customer reviews, prices and how your process is set up.

Beyond the compelling visuals, the template uses charts to visualize financial data, figures and results like:

• Average annual revenue
• Active customers
• Profitability and
• User retention

With our easy-to-use proposal maker, you can edit this template. Evoke emotion and express your thoughts better by using the right visual and design elements to beautify each page. You'll find high-resolution images and videos in Visme's extensive photo library.

Template #11: Campaign Proposal

Close the deal with your next client using this vibrant campaign proposal template. Ignite a connection with the viewer with beautifully designed pages that share your agency’s vital information. Take advantage of the timeline infographic page to share your process to success.

Make your proposal interactive and add popups or links with further information about important points. Share the campaign proposal via a live Visme link and track prospects that have seen it.

Template #12: Electrical Proposal Template

Bring in new electrical clients with this proposal template. Start by switching the images with yours. Choose photos that represent your company and solve problems. Then change colors and fonts and fill the text with yours.

For an even more exciting timeline page, add an infographic roadmap to visualize how amazing it is to work with you. Share information about your company that delivers a sense of trust and safety. Let your clients know that you’re there for them, big or small.

Use animated icons throughout the pages and share the proposal with prospects via a link. They’ll open the proposal and view it as a flipbook , further garnering interest in your offers.

Template #13: Conference Proposal

Propose your event planning services to clients with an interactive digital document that will grab their attention and make them want to get in touch immediately. Use this event proposal template to showcase how your conference will stand out against others. Include proposals in the sales cycle and offer sales reps a chance to personalize the document according to the client.

Create a Visme workspace for your sales team where they have access to a library of share-ready assets and customizable branded templates . Integrate your sales playbook with the Visme workspace, and your reps will always have what they need to close the deal.

Template #14: Retail Store Partnership

Use this partnership proposal template to connect with clients interested in your services. Take advantage of the comprehensive parts of a business proposal to drive interest in the partnership .

Check out the Table of Contents:

• What Makes Us Different
• How We Know Who You Are
• The Partnership
• What You Get
• What You Need To Do

Make the close easy on the client by sharing exactly what they get and what they need to do next to embark on a positive partnership. Use the visually inspiring shapes in this proposal to highlight your brand’s best assets and skills for reaching a client’s goals.

Template #15: Translation Services Proposal

If you’re wondering what to include in business proposal pages, this template is the perfect solution to your proposal creation needs. As a t ranslation agency , your main asset is language variety and the fact that you can offer many translation solutions to your clients. Use a visual, colored map to highlight the languages your agency provides and share an interesting fact to pique the client’s interest.

Include all contact information on the cover so the client doesn’t need to look for it. Share this project proposal template as a digital document and hyperlink your URL and contact information. Make it easy for the client to reach you and close that big translation project.

Template #16: Catering Proposal Template

Promote your catering services with a marketing campaign that includes a business proposal. This template is easy to personalize and send via email to leads and prospects. Interchange the images with ones of your food and replace the menu information with yours.

Add a photo of the founders on the "About Us" page to connect on a personal level with the viewer. Tell a story about the brand and why its value proposition is worth partnering with. Highlight contact information and offer personalized quotes.

Make this an even better proposal by adding a testimonials page with reviews from real clients and customers. Include video testimonials and share the proposal as a digital experience.

Template #17: Partnership Proposal

Merging two businesses is not an endeavor to take lightly. Create and share a professional proposal to seal the deal right. This template's minimalistic and positive design style is ideal for sharing a big idea and keeping the viewer's attention.

The colorful plus sign has a subconscious connection with the viewer throughout the pages. A plus sign signifies addition, adding on, or connection; everyone knows this almost instinctively. Harness the power and psychology of shapes by communicating through more senses than just reading.

Shake hands with your new partner, thanks to this template.

Template #18: Website Design Business Proposal

A strong brand needs a proposal to match its infinite creativity and vision. Get more web design clients with a proposal that embodies your brand's mission and values. Include a personalized letter from the team lead to create a connection from the start.

For an even better experience, customize the proposal for each client using dynamic fields . Do you know how you can send emails that automatically insert a client’s name in the greeting and throughout the content as long as you use a shortcode? Visme can do that too.

Create a proposal template with four dynamic field inputs: the client’s name on the cover, the letter, the timeline and the closer. Using the dynamic field controls in the editor, change all four inputs at once with the client’s name. Download as a pdf or share as a live link with your audience and then track activity using Visme analytics .

Template #19: Transcription Services Proposal

You know what the client needs and you have the solution. Transcription services are crucial timesavers for content creators and digital marketers. Share reviews from previous clients and a simple system for new ones to get in touch with you and order a service.

In the “How to place an order” page, include a link to your website page where clients can upload their files for transcription. Make it easy on the readers who don’t need to read anymore and just want to get things started.

Add a video explainer to one of the pages showcasing how your services work and how they help your clients reach their business goals. Use Visme as your video creator and keep all assets close and organized into brand folders.

Template #20: Business Consulting Proposal Template

Business proposals are an essential sales asset. Every bit of graphic design real estate is a possible point of interaction with the client.

Create a consulting proposal with just the right icons, timelines, and colorful design elements to close the deal. Customize this or any template in this list with the Visme editor, and you’ll have a share-ready proposal in minutes, not hours.

How many pages should a business proposal be?

There is no standard length for a business proposal. The number of pages is determined by your project scope, the client's requirements and the details you want to cover. Your proposal should be as long as it takes to convey key pieces of information and close the deal.

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.

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.

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.

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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What is the Difference Between a Business Plan and a Business Proposal?

Tore Medhaug

In order to send an official business proposal, you have to have a business plan. These are two different document types that people often confuse and mix.

Let’s take a look at the difference between the two, starting with the document you should have in place before submitting an official business proposal.

What is a Business Plan?

A business plan is a document that describes what your organization looks like and what services and deliveries you would provide.

As a student at BI Norwegian Business School , I learned that a business plan should include the following three elements:

• Executive summary: Describing your business, organization structure, etc.
• Marketing plan: Marketing strategy, different marketing analyses (Porter5, SWOT, 7Ps, Pestel)
• Financial: Revenue, expected revenue, etc.

A business plan is a document you would not typically send to your client but to lawyers, insurance providers, banks, suppliers and other stakeholders that would find this relevant for understanding your business and its value.

What is a Business Proposal?

A business proposal describes what you can deliver, time frame, amount, cost and your terms and conditions. This is a document you would use to respond to a specific request from your client, or you would send it to your client or prospect describing what you can deliver, at what price.

When you respond to a specific request, also known as an RFP (request for proposal), you should follow this rule of thumb:

• Always reply in their format
• Reply specifically to what they are asking about
• Describe how you can achieve their goals
• Outline the scope of work
• Provide a cost estimate

Use a proposal solution to create bid-winning content

There are many different ways to write a business proposal, and many different solutions to write it with. For the best possible outcome in terms of control, cost-efficiency, time savings and security, use an enterprise-grade co-authoring and automation tool.

The proposal solution XaitPorter is used by companies all over the world for this purpose. Here are six key advantages of using XaitPorter to create your business proposals and other high-impact, high-value documents:

• Cloud-based : Seamless team collaboration from anywhere, at any time.
• One document: Collaboration on the same document – simultaneous editing.
• Auto formatting and numbering : No manual formatting or numbering.
• Custom layout: Create professional documents in accordance with brand identity guidelines.
• Reuse content: Built on a database – enabling easy reuse of content.
• Export/publish document: Export to a variety of formats, including PDF and Word.

Tore holds a Technical degree and has a variety of business courses from BI Norwegian Business School. He has previously worked for different oil service companies and IT companies. Tore used to be Norway's biggest self-proclaimed golf talent, and also has a big passion for Ice hockey.

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The Difference Between A Business Plan And A Business Proposal

A business plan and a business proposal are two distinct documents. Most people mistake them for each other, and a lot of articles on the internet that teach how to write a business proposal are actually just explaining how to write a business plan.

While a business plan focuses on a company’s goals, the problems and solutions it’s trying to address, its potential market size, keys to success, products and services, market execution, and more, a business proposal on the other hand usually focuses on how a certain project would be executed, states a quote for the project, terms & conditions, and several other key pointers.

These two documents are very different with each serving distinct purposes. So it is important you know whether what you need is a business plan or a business proposal at any time.

See Also:   10 Reasons To Write A Business Plan

Reasons For A Business Plan

A business plan envisions your pipe dream. It shows how your business goals, objectives, philosophies, industry analysis, target market, products & services, market execution, competitive analysis, financial projections, and a whole lot more will position the business for success.

It is a detailed document that investors, banks, accountants, and financially savvy individuals can easily review to know what your business is about, its chances of success, and how you’ve planned to scale.

Business Plan Structure

In preparing a business plan, here is a sample structure you should follow to get it done right:

• Executive Summary
• Business Description
• Market Analysis & Strategies
• Design & Development Plan
• Organization & Management
• Service or Product Line
• Sales & Marketing
• Funding Request
• Financial Projections

See Also:   How To Write A Business Plan: The Complete Guide

Reasons For A Business Proposal

Business proposals are usually solicited or unsolicited. A solicited business proposal is written upon request from an organization, institution, or individual. For example, if you receive a Request For Proposal (RFP), what you’re preparing would be a solicited business proposal. In this instance, you’d have to follow the requirements as stated in the RFP.

An unsolicited business proposal, on the other hand, is prepared in response to a client after a sales meeting, giving you more flexibility in curating the contents of the proposal.

Business proposals are limited in scope, and are thus, written for a specific audience.

Business Proposal Structure

Here’s a sample business proposal structure:

• Introduction
• Table of Contents
• The Body of The Proposal

In your business proposal, you will detail the scope of the work, materials needed, cost estimates, project timeline, previous clients, team members, achievements, and a whole lot more in the body of the proposal. It’s a marketing tool, and its goal is to convince the target customer to do business with you.

See Also:   How To Write A Winning Business Proposal: The Complete Guide

What Then Do You Need?

The variations between a business plan and business proposal are wide apart. As shown in this article, they serve different audiences and are prepared for different reasons.

If your goal is to seek investment or a bank loan, a bank and investor ready business plan is what you need. But if your goals are to convince a client to use your service whether the client has asked for a document showing how much value you’d add to them or not, a business proposal is what you need.

See Also:   How To Write A Feasibility Study Report: The Complete Guide

What are your thoughts on the difference between a business plan and a business proposal? Let me know by leaving a comment below.

Image Source: businessnewsdaily.com

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thanks for these information it is really gearing forward toward my goal.

I’m glad you find it valuable, Yusuf.

Do have a great time!

Thanks Edom, I have been reading your publication, they have inspiring, informative, education and above all priceless. keep up the good work.

samuel Chika

Thank you for the kind words and for being a reader, Chika.

I appreciate them.

Great read.I have always confused the two terms.Business plan means you plan for a business and that business has not yet started but business proposal it means you propose something in a business which is ready stand.Thanks for the detailed information.

You’re right Michael.

I’m glad you learned something from the article.

in my understanding, business plan is general road map for the company strategy, but business proposal is one away to find new market or potential client.

I was searching difference between B.Proposal and B.Plan. I found here, Thanks for the publication. IF you also publish “Samples” besides the templates will be more helpful to a person like me, who did not write proposal before.

My Best Regards

Thank you for reading and for the suggestion.

Hello Stan E.,

This is absolutely spot on. No unnecessary embellishments or needless journey. Straight to the point, self-explanatory and informative.

Thanks a million, Sir.

Thank you for reading, Figo.

Not many people really know the differences. They used both interchangeably. Thanks for the clarity.

Thanks Edom, your publication was most helpful to me. I am grateful sir, continue with the good work.

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What Is a Business Plan?

Definition and Examples of a Business Plan

Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.

Morsa Images / Getty Images

A business plan is a document that summarizes the operational and financial objectives of a business. It is a business's road map to success with detailed plans and budgets that show how the objectives will be realized.

Keep reading to learn the basic components of a business plan, why they're useful , and how they differ from an investment plan.

A business plan is a guide for how a company will achieve its goals. For anyone starting a business , crafting a business plan is a vital first step. Having these concrete milestones will help track the business's success (or lack thereof). There are different business plans for different purposes, and the best business plans are living documents that respond to real-world factors as quickly as possible.

In a nutshell, a business plan is a practice in due diligence. When it's done well, it will prevent entrepreneurs from wasting time and money on a venture that won't work.

How Does a Business Plan Work?

If you have an idea for starting a new venture, a business plan can help you determine if your business idea is viable. There's no point in starting a business if there is little or no chance that the business will be profitable, and a business plan helps to figure out your chances of success.

In many cases, people starting new businesses don't have the money they need to start the business they want to start. If start-up financing is required, you must have an investor-ready business plan to show potential investors that demonstrates how the proposed business will be profitable.

Since the business plan contains detailed financial projections, forecasts about your business's performance, and a marketing plan, it's an incredibly useful tool for everyday business planning. To be as effective as possible, it should be reviewed regularly and updated as required.

Business owners have leeway when crafting their business plan outline. They can be short or long, and they can include whatever detail you think will be useful. There are basic templates you can work from, and you'll likely notice some common elements if you look up examples of business plans.

Market Analysis

The market analysis will reveal whether there is sufficient demand for your product or service in your target market . If the market is already saturated, your business model will need to be changed (or scrapped).

Competitive Analysis

The competitive analysis will examine the strengths and weaknesses of the competition and help direct your strategy for garnering a share of the market in your marketing plan . If the existing market is dominated by established competitors, for instance, you will have to come up with a marketing plan to lure customers from the competition (lower prices, better service, etc.).

Management Plan

The management plan outlines your business structure, management, and staffing requirements. If your business requires specific employee and management expertise, you will need a strategy for finding and hiring qualified staff and retaining them.

Operating Plan

The operating plan describes your facilities, equipment, inventory, and supply requirements. Business location and accessibility are critical for many businesses. If this is the case for your business, you will need to scout potential sites. If your proposed business requires parts or raw materials to produce goods to be sold to customers, you will need to investigate potential supply chains.

Financial Plan

The financial plan is the determining factor as to whether your proposed business idea is likely to be a success. If financing is required, your financial plan will determine how likely you are to obtain start-up funding in the form of equity or debt financing from banks, angel investors , or venture capitalists . You can have a great idea for a business, along with excellent marketing, management, and operational plans, but if the financial plan shows that the business will not be profitable enough, then the business model is not viable and there's no point in starting that venture.

Business Plan vs. Investment Proposal

A business plan is similar to an investment proposal. In fact, investment proposals are sometimes called investor-ready business plans . Generally speaking, they both have the same contents. You can think of an investment proposal as a business plan with a different audience.

The business plan is largely an internal document, intended to guide the decisions of executives, managers, and employees. The investment proposal, on the other hand, is designed to be presented to external agencies.

Key Takeaways

• A business plan is a detailed road map that explains what the company's goals are and how it will achieve them.
• The exact details of a business plan will depend on the intended audience and the nature of the business.
• It's a good idea to regularly revisit your business plan so you know it's as accurate, realistic, and detailed as possible.

The Difference Between a Business Plan and a Business Proposal

A business plan and a business proposal are very different documents. If you do an Internet search for how to write a business proposal, the results are predominantly focused on writing a business plan. Nevertheless, the two documents have different purposes and goals. A business plan is a factual broad description of a company and its prospects. 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 facts. 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.

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 proposals 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, the 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 is written in response to an RFP--A request for proposal (RFP) is a document that solicits proposal, often made through a bidding process, by an agency or company interested in procurement of a commodity, service or valuable asset, to potential suppliers to submit business proposals --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.

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26 comments on “ the difference between a business plan and a business proposal ”.

Great work! the topic is really an interesting one, well a business plan is something organizing your work like with QuickBooks tool hub, and the business proposal is the opposite of the latter one. For better account, management one should download the QuickBooks tool hub. keep it up the great work. looking towards your next blog.

This could be the best and most simplified article on this issue I’ve come across. Straight to the point and very informative.

Mutesasira wilson

I have really liked it and thus so much grateful of the author,,, High arcuity comrades

Yoruba angel

i have never found it broken down as easy as this before. Thank you. it’s very helpful

Amazing job! The best and most informative article explicitly calling out the purpose and goals of a Business Plan and a Business Proposal.

I really found it helpful. Thank you

Shareefah Ajani

Very helpful and informative ,bunch of thanks

Randy Samuel

Thank you very much for the help.

Sochukwuma Abaeneme

I’m glad I stumbled on your website today. This is indeed a comprehensive Break down.

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Thank you. How do I contact you personally for further questions please?

for support, questions contact us at [email protected]

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Thanks for this amazing content on difference on the business plan and proposal.

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Geoffrey T.Crosby

I appreciate your thought there with that one, because of course I agree, but I’m confused with why you thought it should be added. Don’t you think plan vs. actual is included with point 3, “It’s specific. You can track results against plan,” and then point 8 “It has to bring the planning process with it, meaning regular review and course correction?”

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June 10, 2024

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Best Business Proposal Tools for Founders: 2024 Edition

Founders, streamline your proposal process! Maximize success with top tools for founders to craft best proposable business proposals for perfect impression in no time!

What's Inside?

In today's fast-paced business landscape, the ability to present ideas effectively is paramount for gaining new business and maintaining existing connections. However, the traditional method of manually generating proposals can be laborious and error-prone. This is where proposal tools come into play.

With a plethora of features aimed at enhancing efficiency, these innovative software solutions completely transform the way companies create, organize, and present proposals. From automated proposal generation to comprehensive proposal management, there are numerous solutions available in the market promising to boost productivity and increase success rates. In this blog, we'll explore the top tools for business proposals, examining their features, advantages, and potential to drive business growth.

Understanding Business Proposals

What is a business proposal.

For more information see the related article: How to Write a Business Proposal?

A business proposal is a formal document prepared by a company or individual to present to a potential customer or partner. It serves as a method of presenting a solution to a problem, outlining the benefits of collaboration, and persuading the recipient to take action, such as making a purchase, signing a contract, or entering into a business venture.

Key Elements in a Business Proposal:

• Introduction: Provides an overview of the proposal and introduces the offering company or individual.
• Problem Statement: Describes the potential client's problem or challenge and the reasons it needs to be addressed.
• Solution: Outlines the proposed course of action to address the issue, including details of the product or service offered and how it meets the customer's needs.
• Benefits: Focuses on the advantages of the proposed solution, such as cost savings, increased efficiency, or better outcomes.
• Scope of Work: Describes the specific tasks or deliverables included in the proposed solution.
• Timeline: Suggests a schedule for project completion, product delivery, or service implementation.

Types of Proposals:

• Request for Proposal (RFP): Invites potential vendors or service providers to submit proposals to fulfill a specific project or service need.
• Request for Quotation (RFQ): Seeks price quotes from suppliers for specific products or services.
• Invitation for Bid (IFB): Solicits bids from contractors for projects based on detailed specifications.
• Request for Information (RFI): Gathers information and capabilities from potential vendors without committing to a specific project.

Business Proposal Elements

A typical business proposal includes an introduction, problem statement, proposed solution, benefits, scope of work, timetable, and pricing information.

Who Uses Business Proposals?

Business proposals are commonly used by founders, companies, entrepreneurs, freelancers, and organizations across various industries to secure new clients, win contracts, obtain funding, or form partnerships.

Business Proposal vs. Business Plan for Founders

For detailed information see the related article: Business Proposal vs. Business Plan

While a business proposal outlines specific solutions or offerings to address immediate needs, a business plan provides a comprehensive roadmap for the entire business, covering aspects such as mission, vision, target market, financial projections, and growth strategies.

Where Founders Create Proposals?

Founders create proposals for various purposes, including:

• Investment Proposals: Seeking funding from investors or venture capitalists.
• Partnership Proposals: Proposing collaborations or strategic partnerships with other businesses or organizations.
• Grant Proposals: Applying for grants from government agencies, foundations, or institutions.
• Vendor or Supplier Proposals: Negotiating terms with suppliers or vendors for products or services.
• Business Model Proposals: Presenting new business models or strategies to stakeholders.

Why Founders Create Business Proposals?

Founders create business proposals to:

• Secure Funding: Presenting a compelling case to investors or lenders for financial support.
• Forge Partnerships: Proposing mutually beneficial partnerships or collaborations.
• Win Contracts: Offering solutions to meet the needs of potential clients or customers.
• Obtain Grants: Applying for funding to support specific projects or initiatives.

Criteria for Selecting Business Proposal Tools

When selecting a business proposal tool, consider factors such as ease of use, customization options, integration with existing systems, collaboration features, security measures, and pricing.

How to Find the Best Business Proposal Tool for Your Startup

To find the best business proposal tool for your startup, evaluate your specific needs, research available options, compare features and pricing, assess usability and compatibility, review customer reviews and testimonials, and consider factors such as customization, integration, security, and scalability.

The Role of Business Proposal Tools

Key components of a business proposal tool:.

• Proposal Creation: Simplifies the creation of professional-looking proposals by providing templates and user-friendly interfaces. These templates often include pre-made sections, layouts, and content blocks that users can customize to their requirements.
• Collaboration and Workflow Management: Facilitates teamwork among users working on the proposal by allowing assignment of tasks, setting deadlines, and tracking proposal status in real-time.
• Content Library: Provides a repository for storing reusable materials such as testimonials, case studies, and product descriptions, enabling users to quickly access and incorporate relevant content into their proposals.
• Integration with CRM and Other Tools: Enables integration with Customer Relationship Management (CRM) systems and other tools used by sales and marketing teams, allowing for seamless data synchronization and automation of proposal generation.
• Customization and Branding: Allows users to customize the appearance and branding of their proposals to maintain brand consistency and professionalism.
• Analytics and Tracking: Offers options for tracking recipient engagement with proposals, providing insights into proposal performance and recipient interest.
• Proposal Delivery and E-Signatures: Facilitates the delivery of proposals to clients or prospects through various channels and may include options for electronic signature, expediting the approval process.
• Security and Compliance: Prioritizes data security and compliance with regulations such as GDPR and HIPAA, incorporating features such as encryption, user authentication, and access controls.

In summary, a business proposal tool is an all-in-one software solution that enables companies to create, manage, and present professional proposals efficiently and effectively, thereby increasing their chances of closing deals and driving growth.

Why Business Proposals are Important

A well-crafted business proposal plays a crucial role in the success of a company. Here's why business proposals are essential:

• Building Trust: Demonstrates professionalism, expertise, and attention to detail, establishing trust with potential clients or partners.
• Clarifying Expectations: Provides a clear roadmap of the proposed solution, preventing misunderstandings and ensuring alignment between parties.
• Differentiating from Competitors: Highlights the company's unique value proposition and sets it apart from competitors in the market.
• Establishing Confidence and Trust: Gives the recipient confidence in the proposing company's ability to understand their needs and deliver customized solutions.
• Securing Commitments: Motivates the recipient to take action, whether it's signing a contract, making a purchase, or entering into a partnership.
• Guiding Decision-Making: Provides the recipient with the information needed to evaluate the proposal's viability and potential return on investment.
• Formalizing Agreements: Acts as a formal agreement between parties when accepted, ensuring clarity and transparency in the business relationship.
• Fostering Long-Term Relationships: Sets the foundation for enduring partnerships or customer connections beyond a single transaction.

In conclusion, a business proposal is a strategic tool that helps companies establish their reputation, differentiate themselves from competitors, and seize opportunities for growth.

Key Features of Business Proposal Tools

Business proposal tools offer a wide range of features designed to streamline the proposal workflow and enhance productivity. Here are some key features typically found in these tools:

• Templates for Proposals: Pre-designed templates that users can customize to create professional-looking proposals quickly and easily.
• Content Library: A repository for storing and organizing reusable content such as testimonials, case studies, and product descriptions.
• Collaboration Tools: Features that facilitate real-time collaboration among team members working on the proposal, including task assignment, commenting, and version control.
• Customization Options: Allows users to customize branding, layout, and content to match their company's identity and style.
• Integration with CRM Systems: Enables seamless integration with Customer Relationship Management (CRM) systems to automate data entry and ensure accuracy.
• Analytics and Tracking: Provides insights into recipient engagement with proposals, including metrics such as opens, views, and time spent on each section.
• Proposal Delivery Options: Offers various methods for delivering proposals to clients or prospects, including email, online sharing, and electronic signature.
• Security and Compliance Features: Prioritizes data security and compliance with regulations by incorporating features such as encryption, user authentication, and access controls.

In summary, business proposal tools provide a comprehensive feature set to facilitate all aspects of the proposal workflow, including authoring, collaboration, delivery, and analytics, thereby increasing the chances of winning new business and driving growth.

Benefits of Using Business Proposal Tools for a Founder

The use of business proposal tools offers numerous benefits that can significantly improve the efficiency, effectiveness, and professionalism of the proposal process. Here are some key advantages of using these tools:

• Streamlined Proposal Creation: Saves time and effort by automating repetitive tasks and providing templates and content libraries for easy customization.
• Enhanced Collaboration: Facilitates teamwork and communication among team members working on proposals, leading to more cohesive and comprehensive proposals.
• Increased Professionalism: Maintains a consistent and polished look across all proposals with customizable templates, branding options, and content libraries.
• Time and Cost Savings: Automates manual processes, reduces errors, and optimizes workflows, resulting in savings in time and resources spent on proposal creation and management.
• Improved Productivity: Provides collaborative tools, content libraries, and template management features that enable teams to work more efficiently and complete proposals more quickly.
• Enhanced Client Engagement: Delivers timely and well-presented proposals that demonstrate expertise and attention to detail, resulting in increased client engagement and positive perception of the proposing business.
• Simplified Document Management: Centralizes document storage and version control, ensuring that users always work with the latest version of the proposal and minimizing confusion and errors.
• Flexibility and Scalability: Offers flexible and scalable solutions suitable for businesses of all sizes and industries, accommodating changing needs and growing demands over time.

In summary, the use of business proposal tools can lead to significant improvements in proposal quality, efficiency, and effectiveness, ultimately driving business growth and success.

How to Find the Best Business Proposal Tool for Your Business

To maximize productivity and efficacy in your proposal process, it's essential to choose the right business proposal tool for your company. Here's a step-by-step guide to help you select the ideal tool:

• Evaluate Your Needs: Determine your unique requirements and goals, considering factors such as the volume of proposals, team size, integration needs, and specific features or functions required.
• Research Available Options: Explore the market for business proposal tools, research reputable software vendors, read reviews, and compare features, pricing, and customer support offerings. Some popular options include Proposify, Qwilr, and PandaDoc.
• Evaluate Features: Pay close attention to the features offered by each tool and how well they align with your needs. Consider aspects such as proposal creation capabilities, collaboration tools, integration options, customization features, and analytics capabilities.
• Examine Usability: Choose a tool that is intuitive and easy to use, allowing your team to quickly adopt its capabilities without extensive training. An intuitive interface and clear workflow will reduce frustration and save time.
• Verify Integration and Compatibility: Ensure that the business proposal tool integrates smoothly with your existing processes and systems, including email clients, document management software, and CRM programs. Compatibility and integration capabilities are essential for optimizing efficiency and data accuracy.
• Review Pricing and Scalability: Evaluate the pricing options offered by each tool and select the one that best fits your needs in terms of functionality and scalability while staying within your budget. Consider factors such as price tiers, subscription plans, and additional costs for extra users or features.
• Look for Customization Options: Choose a tool that allows for customization of branding, content, and templates to ensure that your proposals reflect your company's unique identity and style.
• Seek Security and Compliance: Prioritize data security and compliance with relevant regulations such as GDPR or HIPAA. Look for features such as encryption, user authentication, and access controls to safeguard sensitive data.

By following these steps, you can find the best business proposal tool for your company, maximizing your efficiency and effectiveness in the proposal process.

Top 15 Business Proposal Tools for Founders

1) decktopus:, your all-in-one software for proposals.

One notable tool in the realm of business proposals worth considering is Decktopus . It's an all-in-one platform designed to simplify the creation of business proposals and other professional presentations. Let's take a closer look at its features, benefits, and drawbacks, as well as how to leverage it as a valuable tool for business proposals.

Decktopus boasts a user-friendly interface and a vast library of customizable themes, making it effortless to create visually appealing and engaging presentations. Whether you're pitching a business proposal, showcasing your products, or presenting a new idea, Decktopus provides the resources you need to leave a lasting impression.

Pros of Decktopus:

• Simple User Design: Decktopus offers a user-friendly design that allows users to create beautiful presentations with minimal effort. With pre-designed templates and drag-and-drop functionality, users of all skill levels can utilize its features.
• Time-Saving Templates: Decktopus saves users time by providing a range of expertly crafted templates, eliminating the need to start from scratch. Users can choose from various styles and layouts to suit their individual needs.
• AI-Powered Content Recommendations: Decktopus leverages AI to provide content recommendations based on user input, facilitating the creation of engaging and informative presentations. This feature helps users organize their ideas efficiently and ensure they address all relevant topics.
• Personalization Options: Users can customize any aspect of their presentations, including fonts, colors, and images, to reflect their personal style and brand. This level of personalization allows each proposal to have a unique touch.
• Collaboration Features: Decktopus enables real-time collaboration among team members, allowing for seamless communication and feedback sharing during the proposal creation process.

Cons of Decktopus:

• Limited Use of Customization Features: While Decktopus is incredibly user-friendly and straightforward, it may lack some of the customization capabilities available in other traditinal presentation tools.
• Selecting Templates: Although Decktopus offers a wide range of templates , it can be hard finding among the vast ocean of choices.

Decktopus as a Tool for Business Proposals for Founders:

With its user-friendly design, time-saving templates, and customization options, Decktopus is an efficient tool for creating business proposals . Here's how you can leverage it for your proposals:

• Start with a Template: Choose a business proposal template from Decktopus's library that aligns with the tone and style you wish to convey.
• Customize Content: Add your company's branding elements and persuasive text to the template to make it unique to your proposal. Address the client's needs, highlight the benefits of your solution, and provide relevant details.
• Include Visuals: Enhance your proposal with visuals such as images, graphs, and charts to make it more engaging and understandable to the recipient.
• Review and Collaborate: Collaborate with your team to review the proposal, gather feedback, and make any necessary revisions to ensure its effectiveness.
• Present or Share: Once the proposal is finalized, deliver it to your client either in person or electronically using Decktopus's sharing options.

For more information on how Decktopus can be used as a business proposal tool and to explore its features further, visit our Business Proposal Maker page.

In conclusion, Decktopus offers a user-friendly solution for creating professional business proposals, with its time-saving templates, customization options, and collaboration features. While it may have limitations compared to more advanced presentation tools, it remains a valuable asset for founders and businesses looking to streamline their proposal process and make a lasting impression on clients and prospects.

Try Decktopus AI now!

Qwilr provides presentations and advanced analytics, empowering users to create engaging proposals and documents. Its intuitive interface allows for seamless customization, while real-time analytics offer valuable insights into viewer engagement. However, mastering all features may require some time, and the template library could be expanded further.

• Visually captivating presentations
• Advanced analytics for tracking viewer engagement
• Learning curve for mastering all features
• Limited template library

3) Proposify:

Proposify streamlines proposal creation with its user-friendly interface and extensive template library. Collaboration tools facilitate seamless teamwork, and customization options ensure proposals fit specific needs. Yet, pricing plans may seem high, and certain advanced features require higher-tier subscriptions.

• User-friendly interface
• Extensive template library
• Higher pricing compared to alternatives
• Advanced features may require expensive plans

4) PandaDoc:

PandaDoc offers a comprehensive solution for document creation, including business proposals. Its intuitive editor and seamless integration with CRM systems simplify workflows. However, occasional glitches and formatting issues may occur, and some advanced features may require additional training.

• Comprehensive document creation solution
• Seamless CRM integration
• Occasional glitches and formatting issues
• Advanced features may need training

5) Better Proposals:

Better Proposals offers a user-friendly platform for creating professional proposals quickly. Its drag-and-drop editor and customizable templates simplify proposal design. However, pricing plans may be restrictive, and some advanced features may be lacking.

• User-friendly editor
• Real-time tracking and notifications
• Restrictive pricing plans
• Lacking advanced features

6) DocSend:

DocSend provides document tracking and analytics to understand recipient engagement with proposals. Its security features ensure data protection, and customizable sharing options offer flexibility. However, the platform may lack advanced editing features, and pricing plans could be more transparent.

• Document tracking and analytics
• Security features for data protection
• Lack of advanced editing features
• Transparency issues with pricing plans

7) Bidsketch:

Bidsketch simplifies the proposal creation process with its template library and electronic signatures. Its proposal tracking feature provides insights into client interactions, while integration with payment processors facilitates seamless invoicing. However, the user interface may feel outdated, and customization options could be more extensive.

• Template library for streamlined proposal creation
• Electronic signatures for easy document signing
• Outdated user interface
• Limited customization options

8) QuoteWerks:

QuoteWerks offers a platform for creating price quotes and proposals with integration capabilities for CRM and accounting systems. Its reporting tools provide insights into sales performance, while workflow automation streamlines processes. However, the software may lack advanced design features, and customer support could be more responsive.

• Integration capabilities with CRM and accounting systems
• Reporting tools for sales performance analysis
• Lack of advanced design features
• Issues with customer support responsiveness

9) Bookipi:

Bookipi simplifies the proposal creation process with its Canva integration. Its proposal tracking feature provides insights into client interactions, while integration with payment processors facilitates seamless invoicing. However, the user interface may feel outdated, and customization options could be more extensive.

• Canva integration

Nusii offers a simple and intuitive platform for creating and managing proposals. Its template library and customizable designs cater to various industries and needs. Additionally, the proposal tracking feature provides insights into client engagement. However, the platform may lack some advanced features compared to competitors, and integration options could be expanded.

• Simple and intuitive platform
• Template library with customizable designs
• Lacks some advanced features
• Limited integration options

11) Quote Roller:

Quote Roller streamlines the proposal creation process with its template library and electronic signatures. Its CRM integration ensures seamless data synchronization, while reporting tools offer insights into sales performance. However, the platform may require additional training for mastering all features, and customer support could be more responsive.

• CRM integration for seamless data synchronization
• Requires additional training for mastering all features

12) NiftyQuoter:

NiftyQuoter provides a platform for creating visually appealing proposals and price quotes. Its customization options allow users to tailor proposals to specific client needs, while integration with payment gateways facilitates easy invoicing. However, the platform may lack some advanced collaboration features, and pricing plans could be more flexible.

• Visually appealing proposal templates
• Customization options for tailoring proposals
• Lacks some advanced collaboration features
• Limited flexibility in pricing plans

13) Zbizlink:

Zbizlink offers a comprehensive proposal management platform with features for proposal creation, collaboration, and analytics. Its integration capabilities with CRM systems ensure seamless data synchronization, while advanced reporting tools offer insights into proposal performance. However, the platform may have a steep learning curve for new users, and pricing plans could be more transparent.

• Comprehensive proposal management platform
• Integration capabilities with CRM systems
• Steep learning curve for new users

14) RFP360:

RFP360 provides a platform for managing the entire RFP (Request for Proposal) process, from creation to submission. Its collaboration features enable teams to work together efficiently, while customizable templates ensure consistency in proposals. However, the platform may lack some advanced analytics features, and customer support could be more responsive.

• Platform for managing the entire RFP process
• Collaboration features for efficient teamwork
• Lacks some advanced analytics features

15) Google Workspace:

Google Workspace, formerly known as G Suite, offers a suite of productivity tools, including Google Docs, Sheets, and Slides, which can be utilized for creating business proposals. Its collaborative features enable team members to work together in real-time, and cloud-based storage ensures easy access to documents from anywhere. However, Google Workspace may lack some advanced proposal-specific features found in dedicated proposal software, and formatting options may be more limited compared to other platforms.

• Collaborative features for real-time teamwork
• Cloud-based storage for easy access to documents
• Lacks advanced proposal-specific features
• Limited formatting options compared to dedicated software

Frequently Asked Questions (FAQ):

What is the best way to write a business proposal.

Use Decktopus for an intuitive and structured approach. Include a clear executive summary, problem statement, solution, benefits, timeline, and budget. Add visuals and proofread thoroughly.

How do you write a CEO proposal?

Decktopus can help you create a concise, focused proposal. Start with a strong executive summary, align with company goals, provide data, and outline financial implications.

What are the four basic steps to writing a business proposal?

• Understand the client's needs.
• Use Decktopus to structure your proposal.
• Clearly present your solution.
• Highlight benefits and costs.

What is the difference between a business plan and a business proposal?

A business plan outlines a company's strategy and goals. A business proposal, often created with Decktopus, focuses on offering specific solutions to a client's problem.

How to automate a proposal?

Decktopus allows for automation by using customizable templates, pre-set sections, and real-time collaboration features.

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How to Write a Consulting Proposal [Templates & Examples]

Published: April 24, 2024

You’ve just wrapped up a call with a prospective consulting client. They’re interested in working with you. Congratulations! If you’ve found your way to this blog post, it’s safe to assume you now need to develop a consulting proposal for this client — and you need help doing so. That’s why I’m here.

In this post, I’ll explain what a consulting proposal is, and how to write one that your prospective clients can’t resist.

Table of Contents

What is a consulting proposal?

How to write a consulting proposal, parts of a consulting proposal, consulting proposal template for sales, consulting proposal template for marketing.

• Sample Consulting Proposal

Consulting Proposal Tools

A consulting proposal is a document that outlines the nature, scope, and timeline of a specific consulting project. Like a salesperson’s pitch to a prospect, a consulting proposal highlights the problem your prospective client is experiencing and positions you, the consultant, as the solution.

Many prospective clients request proposals before officially signing on the dotted line. Why? In short, a consulting proposal outlines your working relationship so both parties can stay aligned and understand the other’s expectations. Proposals aren’t paper formalities — they signify the start of an important client-consultant relationship.

This document will effectively take your conversations with the prospect into an active working relationship. That’s why it’s important to write a good proposal.

A good consulting proposal must have the following information:

• A summary of the problems or challenges that your prospect is facing.
• A detailed account of how you’ll solve those problems.
• A list of the results you’ll seek to achieve for their business.

It also includes contractual information such as fees and terms.

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Before You Create a Consulting Proposal

Writing a consulting proposal will require a bit of pre-work. You’ll want to get to know your client’s needs and goals.

1. Chat with your client in person or over the phone.

You can’t write an effective consulting proposal without chatting with your prospective client first. Do your best to set up a phone call for this conversation; if you can, meet in person. An email will suffice for getting to know your client and their consulting needs, but letting them see your face and/or hear your voice will help you build trust with them.

2. Understand their challenges and needs.

The better you understand your prospective client’s challenges and pain points, the more impactful your proposal can be.

While a consulting proposal template can help get the job done, the details in your proposals should not be one-size-fits-all; they should be tailored to each client and their needs. Don’t hesitate to follow up with additional phone calls or meetings to better understand your client and what they need from you.

3. Highlight your value proposition.

Hiring a consultant is not a cheap investment, and you want your client to understand that they’re investing in you because you’ll deliver results. You don’t necessarily need to include a section titled “Value Proposition,” either.

Instead, get specific on how you’ll deliver. For example, you could mention how you’ll be increasing X metric, reducing Y negative outcome, or driving Z results for their business.

4. Ask about the details.

A successful proposal reflects the project scope and details to keep both parties aligned. Don’t forget to ask about your client’s ideal timeline, budget, expectations, and outcomes. These details are important for selling a prospective client on your services as well as giving your client a better understanding of how exactly you two will work together.

Knowing how to write a clear, concise consulting proposal can make or break your ability to convert prospective clients. Let’s review how to put together a winning proposal.

Consulting Scope Template

In consulting, a scope of work document ensures that the consultant and client are on the same page from the start regarding the precise work to be completed, by when, and for what investment.

Here’s what I typically see a scope of work document contain:

Client Details

Consultant Details

Project Summary

Milestones, Tasks, Process, and Timeline

Project Exclusions

Investment and Payment Terms

• Communications, Reporting, and Approval Details

Other Terms

Here’s a consulting scope of work template that you can draw inspiration from.

Scope of Work

Company Name:

Company Representative:

Designation:

Alternate Company Representative (and Contact Details):

Consulting Representative:

This project will entail (enter details here in two to three paragraphs).

Here’s an overview of the project’s tasks along with the corresponding deadlines:

Milestone 1
Milestone 2
Milestone 3

The scope of work defines the parameters of the project. Any tasks or services not explicitly specified within this document are considered outside the scope of the project.

In consideration of the milestones described above, (Client Company) shall pay (Consulting Company) the following fee structure for the project:

	$00.00

Sample Invoice (Attach a sample invoice template for reference)

The payment terms are as follows:

• $X will be paid within (insert number of days) days after signing of this scope of work as an initial deposit.
• Invoices will be submitted every (insert frequency) which will include the price for completed milestones.
• Payment should be made within X days of the invoice receipt.
• Late payment will result in a fee of $X per day.
• List other payment terms.

Communication, Reporting, and Approval

General Contact Details

Client Company

• Primary Contact Person for the Project:
• Contact Information:

Consulting Company

Communication Channels

This subsection outlines the communication guidelines for this project, which will take place via:

• (Add general guidelines)
• (Add availability/timing/frequency details)

Periodic updates regarding the project progress will be given via:

• What it Includes:

The guidelines for milestone/task approval and final sign-off for the project are as follows:

• (List guidelines here)
• (List and explain other important terms and conditions)

Each party acknowledges that it has read this scope of work, understands it, and agrees to the terms and conditions.

Client Representative (On Behalf of ‘Client Company’):

Client Company:

Consulting Representative (On Behalf of ‘Consulting Company’):

Consulting Company:

Please read, approve, and sign this document by (insert date here). Once the scope of work is accepted, (Consulting Company Name) shall get in touch within two business days to set up an introductory call for the project.

Note : This template doesn’t constitute legal advice and is for general information purposes only. Before entering into a legal agreement, ask a lawyer to review your scope of work document prior to sending it to a client. This will help prevent issues from arising down the line.

• Write an executive summary.
• Briefly describe why you’re the best for the job.
• Specify what the client can expect from the project.
• Establish what your deliverables will be.
• Confirm and outline the costs.
• Specify any other contract terms and conditions.
• Keep the proposal concise.
• Ask for feedback

1. Write an executive summary.

Get started by writing an executive summary or introduction (also called a project summary). This section will include your client’s challenges or obstacles and how you intend to solve them. Simply put, this section summarizes the entire project.

2. Briefly describe why you’re the best for the job.

There’s a good chance your client may be receiving proposals from other companies. You’ll need to show them that you’re the right person for the job and assure them they’re in great hands. Briefly describe how your experience will help the client achieve their goals.

While it may be tempting to hone in on your qualifications and experience, your consulting proposal should focus on what your client will get from working with you. You can add this information as a short (1-2 sentences) paragraph in your introduction.

3. Specify what the client can expect from the project.

Be as specific as possible about the value and outcomes your client can expect. For example, if your main objective is to increase traffic, say that and outline how. This will help you draft your project scope.

Avoid buzzwords and generic jargon. In fact, do your best to use the same words they did in your meetings — this will resonate with them and show you were listening.

4. Establish what your deliverables will be.

Go back to your client conversation notes. Do they need a new marketing strategy, a new website, or advertising plan? What tangible products will they have once the project is completed? These will be your “deliverables” and you’ll want to include them in your proposal so the client knows exactly what they are getting out of the project. I’ll describe deliverables in more detail in the next section.

5. Confirm and outline the costs.

You’ll want to be up front with the client about how much the project will cost. Be clear about your fees and what they include. If you require specific payment structures like a deposit or installments on certain dates, explicitly explain them in this section of your proposal.

6. Specify any other contract terms and conditions.

This section will specify exactly what terms and conditions the client is agreeing to should they decide to proceed. In addition to rates, this can include a timeframe for the project (start and end date), payment types accepted or any other terms you require.

7. Keep the proposal concise.

When it comes to consulting proposals, quality matters much more than quantity. Keep your proposal as brief as possible to accurately describe the project scope and expectations. Don’t give your client a reason to stop reading your proposal and potentially view another consultant’s — instead, keep your proposal concise and engaging.

8. Ask for feedback.

A consulting proposal is a two-way document, meaning both parties should have a say in the content it includes. As you develop your proposal, clarify any questions or concerns you have with your prospective client. When finished, send it to your client for review and feedback.

Consider building your proposal in Google Docs or a similar word processor in which your client can collaborate and leave comments or suggestions.

Now that I’ve covered how to write a consulting proposal more broadly, let’s break it down into parts.

The most effective consulting proposals follow an engaging and logical structure. In this section, I’ll discuss the anatomy of a well-written consulting proposal.

1. Salutation

Begin your document by greeting your client.

A personalized greeting sets apart your consulting proposals from a generic proposal. When you treat your proposal as a personal letter, prospective clients are more likely to trust you and want to build a relationship with you. Use the client’s formal name (e.g., “Mr.,” “Mrs.,” or “Dr.”) unless you’re on a first-name basis.

2. Introduction

In this section, write three to four sentences describing the nature of the project and the issues you want to solve.

Consider this section the introduction, or hook, of your proposal. Summarize the challenges your prospective client is facing and what value you can provide through your consulting services. In this section, you should also thank your client for considering you and give them a brief overview of what they can expect from the rest of the proposal.

You can also include one to two sentences introducing yourself and your business. While the proposal shouldn’t be focused on your work as a consultant, it never hurts to include a short section in which you explain why the client should choose you. Even if you pitched yourself during your initial prospective call, you can reiterate your key strengths and qualifications here.

3. Project Scope

Next, add three to five bullet points giving insight into the exact action items (or tasks) you’ll undertake to achieve the desired result.

This section is all about what you’ll be doing to carry out the project you outlined above. For example, if you’re being hired to review and analyze a client’s marketing strategies, this section would outline how long your phone calls or office visits will be, how many calls or visits you commit to each week, the length of each visit, etc. You can never be too detailed in the project scope section; it’ll only save you and your client a headache later.

4. Objectives

In this section, you’ll want to list out three to five objectives for the project.

Now that you’ve covered both the purpose and scope of the project, it’s time to convince the client of the project’s value. What sort of results do you want your client to see after they’re done working with you?

Unlike the deliverables section below, which focuses on the actual “final products” you’ll be delivering, the objectives section focuses on the end result after those products are delivered. It’s important to put this as early as possible in your document so that your client is convinced they’re making a good investment.

5. Deliverables

Next, list out the concrete deliverable(s) the client will have once they’re finished working with you. Will it be a revamped website? A redesigned collection of brochures?

This section outlines the tangible, identifiable end “products” you will be providing your client as a result of the project. If the project scope describes “how,” the deliverables are the “what.”

Following the example above, while your project scope would be reviewing and analyzing marketing strategies, your deliverables may be a detailed analysis document, a presentation of proposed changes, or even a brand-new marketing plan (the specific details will vary depending on your client and their preferences and needs).

6. Timeline

In this section, give a timeline for each specific action item you listed in the “Scope” section.

This section is incredibly important for setting expectations and creating boundaries with clients. If the project scope describes “how” and the deliverables outline the “what,” can you guess what the timeline section is? Ding, ding — it’s the “when.”

The timeline part of the proposal should outline specific project dates and deadlines for different parts of your project. Whether you’re making office visits, creating documents, or simply sending follow-up emails, try to detail every possible date in your proposal. At the very least, make sure you include the project start, final project deadlines, and any milestones in between.

7. Investment

Next, list out your consulting fees and what they include, as well as how and when you prefer to get paid.

If you recommend using a certain payment portal, include that information here. Similarly, if you require a down payment or staggered fee structure, don’t forget that information, too.

Here are some other tips to consider when creating this section of your proposal.

8. Signature

In this section, you’ll immediately ask for a signature from your prospective client. Include space for them to write the day’s date, their name, and their signature.

You’ll want to include this straight in the proposal, even if they’re still in the consideration stage, so that it’s easier to get approval. If you add the additional step of having to send a “finalized contract,” you risk unnecessarily elongating the process.

9. Next Steps

Last, include a strong call-to-action in your proposal. Leave your email for them to contact you as well. Give clear instructions in this final section so clients know how to move forward.

While each proposal should be tailored to each prospective client, it can be tedious to write out the entire document every time. This is where a consulting proposal template can come in handy.

Below you’ll find two consulting proposal templates: one for sales and one for marketing.

You can use this free consulting proposal template in Word or PDF format. The sections match up with what I covered above, but are worded a little differently to better align with sales.

Pro tip : If you use a template, don’t forget to double-check that all client-specific details are updated and correct.

Featured Resource: Free Consulting Proposal Template

Activity

Start Date

Completion Date

Content Audit

January 1

January 14

Technical Audit

January 15

January 31

Usability Tests

February 1

February 7

Content Plan Creation

February 8

February 28

Content Plan Review and Approval

March 1

March 7

Content Creation

March 8

April 30

Website Redesign

April 1

June 1

I charge fees per project based on the estimated time to completion.

You won’t have to worry about hiring freelance writers or finding a web developer. As your consultant, I’ll take care of that for you. All fees are inclusive of phone calls and emails.

Project Activity	Hours	Fee
Content and Technical Audit	30	$900
Usability Tests	N/A	$200
Content Plan Creation	30	$900
Content Creation	100	$3,000
Website Redesign	100	$3,000
		$8,000

Please sign below.

[signature form]

Please return the signed document to me by Wednesday, December 6. I’ll touch base with you on Friday, December 8, to discuss this proposal. You can send me any questions and concerns at [email protected]. I look forward to working with you.

Now that you have an idea of what a sample consulting proposal looks like, I’m going to share some tools that can help with your next draft.

Consulting Proposal Example

For more inspiration on how to write your proposal, I’d like to show you an example of an audio marketing company’s proposal.

Don't forget to share this post!

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Win new clients with this impressive customizable consulting proposal template.

Powerful and easy-to-use sales software that drives productivity, enables customer connection, and supports growing sales orgs

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7 Organizational Structure Types (With Examples)

Updated: May 29, 2024, 5:39pm

Table of Contents

What is an organizational structure, 4 common types of organizational structures, 3 alternative organizational structures, how to choose the best organizational structure, frequently asked questions (faqs).

Every company needs an organizational structure—whether they realize it or not. The organizational structure is how the company delegates roles, responsibilities, job functions, accountability and decision-making authority. The organizational structure often shows the “chain of command” and how information moves within the company. Having an organizational structure that aligns with your company’s goals and objectives is crucial. This article describes the various types of organizational structures, the benefits of creating one for your business and specific elements that should be included.

Employees want to understand their job responsibilities, whom they report to, what decisions they can and should make and how they interact with other people and teams within the company. An organizational structure creates this framework. Organizational structures can be centralized or decentralized, hierarchical or circular, flat or vertical.

Centralized vs. Decentralized

Many companies use the traditional model of a centralized organizational structure. With centralized leadership, there is a transparent chain of command and each role has well-defined responsibilities.

Conversely, with a decentralized organizational structure, teams have more autonomy to make decisions and there may be cross-collaboration between groups. Decentralized leadership can help companies remain agile and adapt to changing needs.

Hierarchical vs. Circular

A hierarchical organization structure is the pyramid-shaped organization chart many people are used to seeing. There is one role at the top of the pyramid and the chain of command moves down, with each level decreasing in responsibilities and authority.

On the other hand, a circular organization chart looks like concentric circles with company leadership in the center circle. Instead of information flowing down to the next “level,” information flows out to the next ring of management.

Vertical vs. Flat

A vertical organizational chart has a clear chain of command with a small group of leaders at the top—or in the center, in the case of a circular structure—and each subsequent tier has less authority and responsibility. As discussed below, functional, product-based, market-based and geographical organizational structures are vertical structures.

With a flat organization structure, a person may report to more than one person and there may be cross-department responsibilities and decision-making authority. The matrix organizational structure described below is an example of a flat structure.

Benefits of Creating an Organizational Structure

There are many benefits to creating an organizational structure that aligns with the company’s operations, goals and objectives. Clearly disseminating this information to employees:

• Provides accountability
• Clarifies expectations
• Documents criteria for promotion
• Designates decision-making authority
• Creates efficiency
• Fosters collaboration

Essential Elements of Clear Organizational Structure

Regardless of the special type of organizational structure you choose, it should have the following components:

• Chain of command
• Roles and responsibilities
• Scope of control
• Decision-making authority
• Departments or teams within the organization

Functional/Role-Based Structure

A functional—or role-based—structure is one of the most common organizational structures. This structure has centralized leadership and the vertical, hierarchical structure has clearly defined roles, job functions, chains of command and decision-making authority. A functional structure facilitates specialization, scalability and accountability. It also establishes clear expectations and has a well-defined chain of command. However, this structure runs the risk of being too confining and it can impede employee growth. It also has the potential for a lack of cross-department communication and collaboration.

Product- or Market-Based Structure

Along with the functional structure, the product- or market-based structure is hierarchical, vertical and centralized. However, instead of being structured around typical roles and job functions, it is structured around the company’s products or markets. This kind of structure can benefit companies that have several product lines or markets, but it can be challenging to scale. It can also foster inefficiency if product or market teams have similar functions, and without good communication across teams, companies run the risk of incompatibility among various product/market teams.

Geographical Structure

The geographical structure is a good option for companies with a broad geographic footprint in an industry where it is essential to be close to their customers and suppliers. The geographical structure enables the company to create bespoke organizational structures that align with the location’s culture, language and professional systems. From a broad perspective, it appears very similar to the product-based structure above.

Process-Based Structure

Similar to the functional structure, the process-based structure is structured in a way that follows a product’s or service’s life cycle. For instance, the structure can be broken down into R&D, product creation, order fulfillment, billing and customer services. This structure can foster efficiency, teamwork and specialization, but it can also create barriers between the teams if communication isn’t prioritized.

Matrix Structure

With a matrix organizational structure, there are multiple reporting obligations. For instance, a marketing specialist may have reporting obligations within the marketing and product teams. A matrix structure offers flexibility, enables shared resources and fosters collaboration within the company. However, the organizational structure can be complex, so it can cause confusion about accountability and communication, especially among new employees.

Circular Structure

Similar to the functional and product-based structure, a circular structure is also centralized and hierarchical, but instead of responsibility and decision-making authority flowing down vertically, responsibility and decision-making authority flow out from the center. A circular structure can promote communication and collaboration but can also be confusing, especially for new employees, because there is no clear chain of command.

Organic Structure

Unlike vertical structures, this structure facilitates communication between and among all staff. It is the most complex, but it can also be the most productive. Although it can be challenging to know who has ultimate decision-making authority, it can also foster a positive company culture because employees don’t feel like they have “superiors.” This structure can also be more cost-efficient because it reduces the need for middle managers.

There is no one “right” organizational structure. When deciding which structure will work best for your company, consider the following:

• Current roles and teams within the company. How are job functions currently organized? Does it foster communication and productivity? Does it impede or encourage employee growth?
• Your strategic plan. What are your company’s goals for the short-term and long-term?
• Feedback from employees, leadership and other stakeholders. What do those within your company say about how the company is structured? What feedback do you have from other stakeholders, such as customers and suppliers?
• Alignment. What structure will best support your strategic plans and address any feedback received?

What is the most common organizational structure?

A functional organizational structure is one of the most common organizational structures. If you are still determining what kind of structure to use, this organizational structure can be an excellent place to start.

What is the difference between an organizational structure and an organizational chart?

An organizational chart is a graphic that depicts the organizational structure. The chart may include job titles or it can be personalized to include names and photos.

What are the four types of organizational structures?

A functional—or role-based—structure is one of the most common organizational structures. The second type—the product- or market-based structure—is also hierarchical, vertical and centralized. Similar to these is the third structure—the process-based structure—which is structured in a way that follows a product’s or service’s life cycle. Lastly, the geographical structure is suitable for businesses with a broad geographic footprint.

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Christine is a non-practicing attorney, freelance writer, and author. She has written legal and marketing content and communications for a wide range of law firms for more than 15 years. She has also written extensively on parenting and current events for the website Scary Mommy. She earned her J.D. and B.A. from University of Wisconsin–Madison, and she lives in the Chicago area with her family.

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Why the U.S. Is Forcing TikTok to Be Sold or Banned

Lawmakers in numerous countries have expressed concerns that TikTok, which is owned by the Chinese company ByteDance, may expose sensitive user data.

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By Sapna Maheshwari and Amanda Holpuch

Concerns that the Chinese government could access sensitive user data through the short-form video app TikTok, which is owned by the Chinese company ByteDance, have prompted the U.S. government to pass legislation banning the social media platform unless it is sold to a government-approved buyer.

After President Biden signed into law legislation that gives ByteDance up to a year to divest from TikTok, the company sued the federal government in a case that is likely to end up in front of the Supreme Court.

Here’s why the pressure has been ratcheted up on TikTok.

It all comes down to China.

Lawmakers and regulators in the West have increasingly expressed concern that TikTok and its parent company, ByteDance, may put sensitive user data, like location information, into the hands of the Chinese government. They have pointed to laws that allow the Chinese government to secretly demand data from Chinese companies and citizens for intelligence-gathering operations.

They are also worried that China could use TikTok’s content recommendations to fuel misinformation, a concern that has escalated in the United States during the Israel-Hamas war and the presidential election. Critics say that TikTok has fueled the spread of antisemitism.

TikTok has long denied such allegations and has tried to distance itself from ByteDance, which is considered to be one of the world’s most highly valued start-ups .

Have any other countries banned TikTok?

Yes, India did in 2020 , costing ByteDance one of its biggest markets. The government there cracked down on hundreds of Chinese-owned apps , claiming in part that they were secretly transmitting users’ data to foreign servers.

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