You might have the best services in the industry, but your customers won’t know that unless you have an impressive business proposal.
A solid business proposal outlines your value proposition and can make a persuasive appeal to your prospects to convince them to do business with you.
The question is, how do you write an effective business proposal? Is there a proper format, and what details should you include?
This guide will answer all those questions, starting with the definition and steps to create a great business proposal that can convert.
What is a business proposal?
A business proposal is a formal pitch business creates for new prospects to show customers why they should use their product or service.
A winning business proposal should work like a great sales resume and be capable of piquing interest, convincing, and earning clients.
It is important to remember that every business proposal should be different. And that it should always align with what the client wants.
Commonly, business proposals are requested by potential clients when they are actively looking for a solution to a specific need.
These are called solicited business proposals, and clients are likely to engage and compare businesses to find information, solution proposals, or price quotations.
On the other hand, unsolicited business proposals are like cold sales pitches. You can send them to potential clients, but know that they might not even take the time to read them.
But regardless if the proposals are solicited or not, you will still go through the same steps to create a business proposal. Still, understanding the intention can be crucial to writing a killer business proposal.
Now let’s begin.
Steps to write an effective business proposal
1. Understand the company
There’s no one-size-fits-all approach to writing an effective business proposal. Before writing your business proposal, you must research the company properly.
Especially if the business proposal is made on request, ensure you fully understand the problem and create a proposal that can solve their problem or meet their objectives.
Let’s say you are a content marketing agency. You need to know the desired content’s effect your client primarily wants. Is it for lead generation or conversion?
A tip is always to meet or call your potential client to understand their needs and preferences better before drafting your proposal.
2. Start with a captivating title page
The title page is the front cover of your business proposal and is the first chance you have to make a great impression.
On top of highlighting essential information like the company name, logo, address, contact information, and proposal title, your title page should have a vivid use of branding.
Add some design elements and use your brand colours to stand out among the pile of business proposals, but keep it neat and clean to show professionalism.
3. Organise a table of contents
Following your title page is the table of contents. This page is fundamental to every good reader experience as it makes your proposal much easier to read.
You should always include this page, no matter how short your proposal is.
Company managers and top decision-makers will often turn to the table of contents to review the content covered in your proposal.
For your digital proposal, it also helps to make the table clickable so that readers can easily navigate to different sections of the proposal.
4. Executive summary that highlights your value
The executive summary is a brief overview of your whole business proposal. It should capture the reader’s attention and briefly introduce your company and solution.
In other words, it should discuss your company, expertise, and the key selling points of your products and services.
Avoid talking about features; tell your readers why your business is the best option. Write a professional summary that pitches your company and how it differs from competitors.
5. State your customer problems or need
Next, define the problems affecting your potential clients. Provide facts about the issue that the business is currently facing and offer a detailed analysis.
Whether it is a solicited or unsolicited business proposal, describing your customer’s problem is necessary to show that you understand and have the ideal solution. You can conduct thorough research of your potential client’s needs by doing a business assessment. This will provide both you and the prospect with interesting insights and numbers that provide added value to your business proposal.
In any case, a well-articulated problem can make the value of your solution more effective and appealing. So, let’s say the proposal is for developing a personal website.
Discuss the limitations, such as a lack of web developers or too many ongoing projects for in-house employees. Paint a picture of why outsourcing website development can be more beneficial and cost-efficient.
6. Propose your unique solution
Now it’s time to propose your solution. Let your potential clients know how you can solve your buyer’s problem.
Show your strategy and describe all the steps you will take to help your client reach their goals: set deliverables and a timeframe for when you can achieve that.
Ultimately, paint a picture for your prospect of how it will look once their problem is solved.
Describe it with specificity and personalisation, but avoid going into too much detail and jargon your client won’t understand.
7. Cost and pricing
Cost and pricing is the section that stumps many. It is where things get tricky as you want to avoid overpricing or underpricing your product and service.
Generally, it’s good to keep your cost competitive, or you can always reach out to your potential client about their budget before preparing the proposal.
For unsolicited responses, we recommend value-based pricing and offering pricing options as an effective way to play into the psychology of consumers.
8. Showcase your work and qualifications
Here is where you make the final push. Showcase your best works or digital marketing portfolio.
Also, include any kind of social proof that can support your qualifications.
Video testimonials, statistical numbers, social media profiles, or Google Analytics screenshots are all great examples you can include to impress.
Track and improve your business proposals
Even after you have sent your business proposal, the process is still ongoing. Make time to follow up and track the results of your business proposals.
While standardising your business proposals can be efficient, addressing every company’s unique needs can be tricky.
Your business proposal is a living document. Find out what works and analyse how you can improve your business proposal to win more deals.
