Signing new clients and getting sales is the best way to stay in business. In addition to marketing campaigns and direct outreach, business proposals can be the difference between getting both and facing challenges in your business.
If you create them properly, they can explain your value proposition effectively and convince businesses, companies, and clients to work with you.
Below, we look at business proposals, what makes them great, and how to create ones that help you sign more clients.
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Understanding Business Proposals
They are formal documents businesses and individuals create to convince prospects and potential clients to sign a business agreement or deal.
Proposals are different from business plans in that they sell the products and services instead of the business. The best way to think about them is this: business plans can help you find investors, while proposals do the same for customers.
To be effective, it has to explain what the business or individual does and what they can do for clients who sign a deal or business agreement. It can be broad or targeted depending on the client(s).
Solicited and Unsolicited Business Proposals
Businesses send solicited proposals upon request, but they can send unsolicited ones if they want to introduce themselves to a business.
Businesses can send a request for proposal when they want to invite others to provide a solution, product or service. Those that receive these requests can then send proposals with their solutions.
The best business proposals, solicited or unsolicited, identify needs and pain points and address them adequately. Doing so shows the soliciting business that the one sending the proposal has the right solution to help them deal with whatever they need to.
Writing a Business Proposal: Doing the Initial Research
With the main point of a proposal being to show that you can provide the right solution, you must understand the business first. A request for a proposal can give you a great place to start, but it should only be that and nothing more.
You should be willing to do additional research because you are competing against other businesses and are hoping to land a deal or agreement that will last a long time.
Also, consider calling the business to understand what they need. This also shows initiative and that you are proactive, which can give you an advantage over businesses that send their proposals blindly.
Open-ended questions work well for this exercise because they allow you to dig deeper into the why instead of the what.
With enough data and an understanding of what the business needs, it is time to start drafting the proposal. Remember that no two proposals are alike because businesses differ and need different things at different times.
However, there are common elements you should include when creating one.
The Title or Title Page
This should include your name and that of your business or just your name if you are an individual, the other business’s name, and the submission date.
With the first page or title setting the tone for the rest of the document, you should take your time to design one that looks professional. However, do not make it too busy because that can make some clients not read it.
Add a Table of Contents
Ideally, you should add this once you create the rest of the proposal, but include it at the beginning. This page tells the business or client what the file contains.
It should also contain page numbers so they can skip to those that apply most to them. Remember that even though your proposal should include all the sections discussed below, many business leaders will not read the whole of it so you should give them the option of scanning it.
If you send a digital proposal, you can add hyperlinks for easy navigation. Many tools for creating proposals make it easy to do this.
If you make a mistake on this page, like including the wrong page number, you can always convert the PDF to Word, edit it and then add it back. A free PDF to Word converter combined with a PDF editing tool should make this process relatively easy.
Use the Executive Summary to Tell the Client Your Why
The executive summary section follows the table of contents page and is where you explain why you, your business and its products and services are the best option for the client.
Being as specific as possible is crucial here. However, avoid drawn-out explanations because the client might not have time for them.
Instead, make the executive summary as long as it should be, punchy, and detailed without being too dense. Make the benefits of working with you clear so they do not miss them.
The Problem Statement Will Show You Understand Their Pain Points
The problem statement more or less repeats back to the client’s pain points.
However, this is not all that you should be because you should expand on the problem to show that you understand it.
It is also a great place to reiterate that you have the solution they are looking for and are ready to provide it to them.
The right problem statement shows that your proposal is not a genetic pitch. It can also be the place to show the client additional pain points that they may not have considered before.
Remember that the point is to show them you are the best option, and identifying such issues will put you in a better place to do so.
Recommend One or Multiple Solutions
This section allows you to explain how you would solve the client’s problem. While you could add this to your problem statement, it is best to add it in a separate section so a client can find it easily from the table of contents. Again, specificity and personalization are key here.
The proposed solution(s) should fit the client and their pain points. Address what deliverables they can expect, and how you will deliver, and provide a timeframe.
Show Your Qualifications
The client might like your proposal, but the harsh reality is that they might not know you or why they should work with you.
Your qualifications can help put them at ease. Consider this section social proof and include verifiable details of your qualifications and similar work you have done for other clients.
Feel free to discuss your team and their qualifications because they will also be involved if you sign a deal.
Pricing Section
This page can be tricky to create because you do not want to over or under-price your services. Consider what you will be providing and list a price that would work well with all parties.
You can also create a comparison table for different products and price tiers so they can pick the one that works best for them.
Provide a Summary
Finally, cap your business proposal off with a summary. Use this section to simplify what you have said in the rest of the proposal, including a sentence or two about each.
Remember to prompt the client of business for further contact so they can take action.
Business proposals can be powerful tools for landing clients if done right. They should be easy to understand but include details that help clients know you grasp their pain points and the solutions they need.
Make yours punchy and to the point to avoid it ending up in the rejected pile regardless of being a great proposal.
