How to write a business proposal
Help your small business stand out with a well-crafted business proposal — here’s how.
With more than 2.7 million actively trading businesses in Australia, there are countless opportunities for businesses looking to build client lists and form mutually beneficial partnerships. However, creating connections in a competitive landscape is often anything but easy.
A well-crafted business proposal is a powerful tool that can help with this. For small- to medium-sized businesses (SMBs), creating a compelling proposal is essential for successful networking and business generation.
In this article, we’ll cover what you need to know about creating an effective business proposal. We’ll look at the key components of a successful proposal, as well as the types of business proposals you might want to use. We’ll also explore best practices to maximise the impact of your business proposal.
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What is a business proposal?
A business proposal is a formal document that outlines your business, the project, or the service you’re proposing, as well as the value you can bring to a potential client. It’s a key part of your small business marketing strategy and serves as a roadmap for your business relationship. It also demonstrates your expertise, capabilities, and unique selling points (USPs).
To be clear, a business proposal is not the same as a business plan, which focuses on the internal features of your business. This is often created at the outset of setting up a business and doesn’t necessarily link with the purpose of finding new opportunities. A business proposal is a pitch to a client or a business with the intention of winning contracts, funding, or partnerships.
In the table below, you’ll find a set of common purposes behind the creation of a business proposal, as well as an example scenario.
Why Create a Business Proposal?
| Purpose | Example Scenario |
|---|---|
| To win new business | Pitching your digital marketing services to a local cafe looking to boost online sales. |
| To secure funding | Proposing your business concept to a venture capital firm or government grant program. |
| To get project approval | Submitting a proposal to management for launching a new internal system or campaign. |
| To respond to a request (RFP) | Answering a government or corporate invitation to tender (ITT) or product supply. |
| To upsell existing customers | Suggesting an expanded support package or premium plan to an existing client. |
Business proposal templates for SMBs
When it comes to creating a business proposal, professionally designed templates can be a game-changer. You can find many grant proposal templates with Google Docs, QuickBooks, and other websites that will save time and effort while giving your proposal a professional look.
While you’ll find many example templates online, a more consistent way to build compelling proposals is to leverage tools that can automate the process. Solutions like Conga can automatically generate accurate, professional proposals in less time and with minimal manual effort. And, as the platform ties seamlessly into the Salesforce ecosystem via our AppExchange , you can populate your document with real business data pulled directly from your CRM.
Using AI to create proposals will save you time and produce reliable documents grounded in your business data. However, you’ll still need to put in some extra work to customise the document for your business. While generic designs are functional, a client will appreciate the effort if you take ownership of the document with logos, branding, and colours that match your identity. It also helps to present a professional image that will leave a lasting impression.
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Types of business proposals
There are several broad types of business proposals that a company can use. Each has a slightly different objective. Here are the main ones to be aware of.
- Project proposal: These are used when you’re bidding on a specific project. They outline the scope of work, timeline, budget, and deliverables for the project. A tender invitation, usually issued by a governmental department or large corporation, is an example of a project business proposal. You can also use a project proposal if you’re looking to secure funding for your own initiative.
- Sales proposal: These are used to convince potential customers to purchase your products or services. They focus on highlighting the benefits of your offerings and demonstrating how they meet the customer’s needs. For example, a computer chipset company may present a proposal to a hyperscaler with the option of purchasing a set amount of chips over a given time period.
- Partnership proposal: These are used to establish collaborative relationships with other businesses. They outline the mutual benefits of the partnership and define the roles and responsibilities of each party. It could involve something like a shared research project or a joint construction venture where the profits are ultimately shared.
Solicited vs. unsolicited proposals
All business proposals can be broken down into two main groups – solicited and unsolicited proposals.
Solicited proposals are closely linked with ITTs or a request for proposal (RFP). They are more brief and clinical. You likely won’t need to identify the challenge, as this will usually be stated as part of the invitation. Your objective with these proposals is to prove why you are the best-equipped to fulfil the needs that the client has highlighted.
By contrast, an unsolicited proposal is a proactive pitch towards other businesses. They essentially serve the same purpose as a sales call, where you will try to find businesses or clients who have pain points that you can solve. These carry more risk of outright rejection as they aren’t requested, so a well-planned research phase to highlight hot leads is important.
If you’d like some support with that, Sales Cloud can help. Sales Cloud will give you access to advanced AI lead scoring tools that help you find the most suitable potential partners and clients, guided by data-driven insights rather than gut instinct.
How to write a business proposal (step-by-step)
Knowing how to write an effective business proposal takes time and practice. It isn’t just about providing information about your business to partners and clients. You need to tell a story about your business in an informative, yet engaging manner so that clients can instantly grasp the value you’re offering and buy into the narrative.
Here’s a step-by-step guide to crafting a winning business proposal.
1. Research your client or prospect
If you become aware of a potential business opportunity or collaboration, you’ll want to know as much about them as you can before you initiate.
Conduct thorough market research on who they are, as well as their industry in a broader sense, and begin to pick apart where and how what you offer might benefit them. You should also have a firm grip on what they value most (cost, speed, innovation, etc.), as well as who the key stakeholders and decision-makers are.
2. Create a strong title page
If you’re creating a complete proposal from scratch (i.e. you’re not tendering your proposal via a portal or pre-made template from the client), you’ll want to create an eye-catching title page. It should have all the relevant information about your business, including your name, logo, and contact details. And the title should clearly reflect what the potential client is receiving.
3. Craft a compelling executive summary
Your executive summary is the short introduction that states the purpose and scope of the proposal as a whole. It summarises the key points in a concise manner and should cover aspects such as your understanding of the client’s needs and pain points, as well as a brief overview of the solution you’re looking to provide.
4. Define the problem or need
Here, you will begin to go into more detail about the problems that the client may currently be facing. This may be clearly stated via the ITT documentation. Or you may have to do some research to pinpoint potential issues.
To do so, research the lead’s competitors to find out the problems they’re facing. You may also have similar partners or clients within your customer list with a ready-made set of data to call upon.
Having a powerful customer relationship management (CRM) tool like the Agentforce 360 Platform will give you instant access to all the necessary data you need and allow you to build blueprints for potential clients based on those you already have.
5. Present your solution
Once you’ve pinpointed the problems you believe the client is facing, it’s time to deliver your solution. Here, you need to clearly demonstrate how you intend to solve the issue your lead is facing, as well as the tools, technology, and expertise you’ll utilise to fulfil the solution.
You should aim to break down your solution into clear phases and set durations, with milestones indicating various success points.
For example, a digital marketing company might’ve uncovered that a company is struggling with driving traffic to their website. They may then propose a three-month campaign that combines SEO optimisation, targeted ads, and value-driven content to help improve things by an intended amount.
6. Offer budget and pricing options
Your target client will want to know how much this solution will cost them. You should be able to provide a clear breakdown of expected costs throughout the process. It’s vital you remain transparent with this, and offer tiered options where possible.
7. Highlight benefits and testimonials
Ideally, you’ll have some form of successful track record or history to call upon when trying to convince potential partners that you are a legitimate option. Make sure to include any measurable results that you’ve achieved, as well as any positive testimonials from previous clients or partnerships.
8. End with a call to action (CTA)
Once you’ve made your proposal, you should invite the potential client or partner to initiate the next steps. This could be in the form of a follow-up call or meeting where they are given the opportunity to discuss aspects of your proposal in more detail. Alternatively, it could be an invitation to initiate a trial period of your product or service.
9. Proofread and revise
Carefully proofread your proposal for any errors in grammar, spelling, or formatting. Ensure that your logo and branding colours are accurate and where they need to be. The language should be clear, concise, and professional throughout.
You can now run your finished proposals, or any other business documentation you may be working on, through artificial intelligence (AI) layers such as Salesforce AI. This will help ensure that the structure of your proposal is sound.
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Best practices for writing a business proposal
Not all business proposals are created equal. To help you connect with clients and unearth opportunities, we’ve created a list of additional best practices that will help you find success consistently.
- Use clear and concise language. It might be tempting to use excess technical terminology in an attempt to sound authoritative, but this can backfire. By avoiding jargon that your client may not be familiar with, you can meet them on an even level.
- Highlight your unique selling points. Emphasise what sets your business apart from competitors. Showcase your expertise, experience, and unique value proposition.
- Lead with the client’s story, not yours: You stand a much better chance of landing the partner or sealing the contract if you understand intricately what it is that they’re facing. While it’s important to showcase your own business in a good light, leading with your understanding of the client’s story is the stronger strategy.
- Use enticing visuals. It might seem a bit shallow, but having something that’s good to look at does make a difference. It can also help to present key information in different ways rather than just text. Incorporate charts, graphs, videos, and images to support your proposal and make it more visually appealing.
- Make the pricing simple and dynamic. Your pricing options should be very clear. Make sure the client understands exactly what they’ll be getting at each level. You should not leave any room for confusion or misunderstanding when it comes to money and budget allocation. Where possible, you should also make your pricing dynamic and negotiable to add further value for the client.
Get started on your proposal for small business opportunities
Writing a business proposal is essential for winning opportunities. The key is to plan carefully, research diligently, and put in the work to make your proposal value-driven and personalised.
Unearthing new leads and connecting with clients is easier when you have the right tools for the job. Salesforce’s small business CRM can help businesses at any stage of their development, whether it’s finding hot leads, building fluid business proposals, or closing more deals – all powered by groundbreaking AI and trusted business data. Start your free 30-day trial today.
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FAQs
The main purpose of a business proposal is to demonstrate to a potential client or partner why your product or service will be of value to them. It closely examines a client’s particular needs before providing an in-depth solution to their pain points. Ideally, it will lead to a successful call to action.
There are a number of reasons why a business proposal might fail. It may not closely address the client’s specific needs and pain points. It may take too long to get to the point and be full of unnecessary jargon and technical language. It might fall short on compliance issues or fail to follow instructions or requirements. Or it may just look unprofessional.
An internal proposal is usually written for those high up within the business. It could be used to help persuade decision-makers on a new strategy or project. Conversely, an external proposal is designed for potential partners and clients with the intention of selling products or services to them.
If it’s an unsolicited proposal, then usually a PDF attachment via email is the most common method. For solicited proposals, or ITTs, it’ll often be via a portal with specific instructions to follow.