is a business proposal the same as a business plan

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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!

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

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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.

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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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How To Write An Effective Business Proposal

Published: Feb 28, 2024, 2:00pm

Table of Contents

What is a business proposal, business plan vs. business proposal, objectives of a business proposal, essential elements of a business proposal, 7 steps to write a business proposal, bottom line, frequently asked questions (faqs).

Writing a business proposal is a crucial skill if you wish to run a successful and profitable business. Knowing how to write a business proposal is not necessary for presenting your product or services in the best possible manner. It’s about convincing others that your solutions are the best fit for their needs. Crafting an effective business proposal can open doors to immense opportunities.

In this article, you will learn the essential components of an effective business proposal as well as techniques that ensure your proposal captures and retains client interest. Let’s dive in and explore the art of creating compelling business proposals.

A business proposal is a document designed to persuade a potential client or customer to buy a specific product or service. It’s a tailored argument that outlines the benefits of your approach, solution or product, specifically addressing the requirements of the recipient. A business proposal must not only communicate your vision but also persuade the recipient of the proposal to take positive action.

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Types of Business Proposals

Understanding the different types of business proposals is key to selecting the right approach for your situation. Typically, proposals are categorized into two main types: solicited and unsolicited.

Solicited proposals are those that are requested by a potential client, often in response to a request for proposal (RFP). These tend to have a prescribed format and specific requirements, making it crucial to follow the guidelines provided. Unsolicited proposals are not requested by a client but are sent proactively. They require a more persuasive approach as you’re introducing a solution to a problem the client may not have actively considered.

Additionally, there are informal and formal proposals. Typically, informal proposals are shorter and used in a more relaxed business setting or with existing clients. In contrast, formal proposals are longer, more detailed and used in situations requiring thorough analysis and presentation, often for new clients or large projects.

A business plan is a comprehensive document that outlines the overall vision, strategy and goals of your business. In contrast, a business proposal is a targeted pitch to a specific client or organization, offering a solution to a problem or a strategy for achieving a specific goal.

A business plan is primarily used for internal planning and, often, to secure funding from investors. A typical business plan includes an overview of your business model, market analysis, financial projections and long-term strategic plans. However, unlike the broad scope of a business plan, a proposal is your chance to showcase how your services or products can benefit the prospective client, tailored to their specific needs and challenges.

While a business plan lays out the path your business intends to take, a business proposal is a direct response to a potential client’s problem, demonstrating how you intend to solve it effectively.

A business proposal is a strategic tool that can be used in negotiations, aiming to convince a potential client or partner of the value as well as viability of your proposed solution to their problem or need. Here are some of the most important objectives of a business proposal.

To Persuade

The core objective of a business proposal is to persuade the recipient that your solution is the best fit for their problem or need. It’s about making a compelling case for your approach, services or products.

A well-written proposal also informs the reader. It should provide all necessary details about your solution, including how it works, its benefits and why it stands out from the competition.

To Establish Credibility

Through your proposal, you demonstrate your understanding of the client’s needs and your capability to meet them. This is your chance to showcase your expertise and past successes.

To Initiate a Dialogue

A good proposal also serves as a starting point for further discussions. It opens up a channel of communication with the potential client, inviting them to negotiate terms, ask questions and seek clarifications.

Understanding these objectives can guide the tone, content and structure of your proposal. Listing your products or services is not enough. You need to craft a narrative that aligns with the client’s needs and paints a clear picture of how you can fulfill those needs effectively and efficiently.

To create an effective business proposal that persuades the recipient to take action, include these key components:

• Title page and table of contents: Begin with a professional title page that includes the proposal’s title, your company’s name, the date and the recipient’s name. For easier navigation, especially in longer proposals, include a table of contents.
• Executive summary: This section provides a concise overview of the proposal, summarizing the key points. It should be engaging and highlight why they should read the proposal.
• Problem statement or needs assessment: Clearly define the issue or need your proposal is addressing. Demonstrating a deep understanding of the client’s challenges is essential here.
• Proposed solution: Elaborate on your proposed solution, detailing how it specifically tackles the client’s problem or need. This section should be clear, convincing and aligned with the client’s objectives.
• Pricing and terms: Offer a transparent breakdown of the pricing structure and any terms and conditions related to your services. Clarity in this section helps avoid future misunderstandings.
• Qualifications and experience: Showcase your credentials, expertise and any relevant experience or success stories. This is necessary to build trust and credibility.
• Call to action (CTA) and closing remarks: Conclude with a strong call to action that encourages the client to proceed or engage further. Briefly summarize the primary benefits of choosing your solution to reinforce your proposal’s value.

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Crafting a compelling business proposal requires the right blend of clarity, persuasion and attention to detail. The key to a successful business proposal is not just in what you include, but how you present it. Follow this step-by-step guide to ensure your proposal stands out:

• Start with the executive summary: Begin with a strong executive summary that captures the essence of your proposal. This should be persuasive and highlight the benefits of your solution. Remember, this might be the only part some decision-makers read.
• Address the problem clearly: In the problem statement, be specific about the client’s challenge. Use language that resonates with them, demonstrating that you truly understand their needs.
• Detail your proposed solution: Break down your solution into digestible sections. Be clear about how each part of your solution addresses the problem. Use bullet points or subheadings for readability.
• Outline pricing and terms: Present your pricing clearly. Include different packages or options if applicable. Be transparent about any conditions or terms to build trust.
• Showcase your credentials: Use the qualifications section to build credibility. Highlight past successes, relevant experience and any unique skills or resources that make your solution the best choice.
• Craft a persuasive conclusion: End with a persuasive conclusion that reiterates the benefits of your solution. A strong call to action should encourage the client to take the next step, whether it’s a meeting, a phone call or signing a contract.
• Proofread and edit: Ensure your proposal is free of errors. A well-edited proposal reflects professionalism and attention to detail.

After submitting the proposal, plan a follow-up strategy. This might include a phone call or an email to discuss any questions and reiterate your interest in working with the client.

Design and Presentation Tips

The visual appeal of your business proposal plays a crucial role in its effectiveness. Here are a few tips to keep in mind while writing a proposal:

• Keep the design professional and clean, using your brand colors and logo for consistency.
• Utilize white space effectively to enhance readability.
• For longer proposals, use charts, graphs and bullet points to break up text and illustrate points clearly.
• Ensure that the format is compatible with various devices, as clients may view your proposal on different screens.

Common Mistakes to Avoid

In business proposal writing, common pitfalls can significantly reduce your chances of success. Here are a few for your reference:

• Avoid overcomplicating your language; clarity and conciseness are more important than demonstrating language skills.
• Do not make unrealistic promises or overestimate results as this can damage credibility.
• Tailor your proposal to the specific client or their industry. Do not have a standard proposal for everyone.
• Grammatical errors can detract from your professionalism, so edit and proofread the proposal before sharing.

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In this article we’ve explored the essentials of crafting effective business proposals, distinguishing them from business plans and highlighting key components as well as common pitfalls. Equipped with these insights, your next step should be to apply this knowledge in practice.

Creating a versatile business proposal template can be a great starting point. You can then customize the template to create business proposals that win you clients and drive business success.

What is the main point of a business proposal?

The main point of a business proposal is to present a tailored solution to a specific client or business problem. It aims to persuade the recipient that your approach or service is the best fit for their needs, outlining how it offers value and addresses their unique challenges. The proposal serves as a strategic tool for initiating business relationships and securing contracts.

How do you structure a business funding proposal?

A business funding proposal is structured to concisely present your business idea, market potential and financial needs. It typically includes an executive summary, a detailed description of the business, market analysis, specifics of the financial request and a plan for funds utilization. The proposal also highlights your business’s management team, projected financials and return on investment to assure potential investors of the viability and profitability of the venture.

What are the three main types of business proposals?

The three main types of business proposals are:

• Formally solicited proposals: These are written in response to an official request for a proposal (RFP), often with specific guidelines and format requirements outlined by the potential client.
• Informally solicited proposals: These proposals are created based on casual or less formal requests, often following verbal conversations or discussions with a potential client who has expressed interest but hasn’t issued a formal RFP.
• Unsolicited proposals: These are proposals initiated by the sender and presented to potential clients who have not requested them. They often require a more persuasive approach as they aim to create a need or solution the potential client may not have previously considered.
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Difference Between Business Plan and Business Proposal

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

What's Inside?

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

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

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

The Difference Between a Business Plan and a Business Proposal

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

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

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

Executive Summary

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

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

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

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

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

What Are Business Plans?

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

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

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

What Is The Purpose of a Business Plan?

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

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

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

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

What is a business proposal?

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

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

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

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

Why do you need a business proposal?

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

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

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

How To Prepare For a Business Proposal?

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

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

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

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

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

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

How To Write a Business Proposal?

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

- Introduce yourself and your company

- Outline the proposal's purpose

- Explain the problem that you're trying to solve

- Describe your solution

- Explain the benefits of your solution

- List your qualifications

- Request a meeting

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

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

Business Proposal Template Checklist

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

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

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

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

-Executive Summary

-Problem/Opportunity Statement

-Business Plan

- Marketing Plan

-Financial Plan

Types Of Business Proposals

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

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

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

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

Here's a proposal to bid template .

Business Plan Structure

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

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

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

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

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

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

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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.

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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.

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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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Comparison Between Business Proposal and Business Plan

Conducting a comparison between business proposal and business plan enables you to highlight the differences between the two. 3 min read updated on February 01, 2023

Updated November 12, 2020:

Conducting a comparison between a business proposal and a business plan enables you to highlight the differences between the two. Business plans are documents detailing how owners want to set up their business, their goals and objectives, and the processes and methods required to achieve these goals.

Understanding the Features of a Business Plan

A business plan is a document that describes in detail how your business is set up, the vision of the company, and the methods and process for realizing business goals.

A comprehensive business plan should provide detail on your:

• Products and services.
• Business structure.
• Marketing strategy and market research.
• Budgetary expenses.
• Financial projections for the next five years.

Benefits of Drafting a Business Plan

Although developing a business plan takes a lot of research, planning, and calculation, it is well worth it. Drafting a business plan is a good idea for existing businesses and startups alike.

The reflection and time spent while creating your business plan will clarify your business ideas, providing you with insights into aspects of your business that you may not have considered, and help you strategize.

A well-written business plan is a blueprint for success because it outlines all the steps required to move your business from the ideation stage to reality.

However, not all business plans are meant to be executed. You could discover during the research stage that your business idea isn't right for implementation. Realizing this earlier on means you can save yourself time and money that you would have invested in a dead-end idea.

Before trying to raise funds for a business loan through an angel investor, incubator, or venture capitalist, ensure that you have thoroughly researched your business plan. Developing a well-researched business plan should take approximately six weeks, so writing your plan a day before meeting with a potential investor won't cut it.

Your business plan should serve two purposes:

• To provide suppliers and investors with information about the viability of a business.
• To keep an accurate record of business goals and the steps required to achieve them.

The following is a sample structure you can use to prepare your business plan:

• Executive Summary.
• Business Description.
• Market Analysis & Strategies.
• Design and Development Plan.
• Management and Organization.
• Service/Product Line.
• Sales and Marketing.
• Funding Requests.
• Financial Projection.

What is a Business Proposal?

Business proposals are documents proposing a business arrangement between you and another enterprise. The two main categories are:

• Non-invited.

When large corporations or the government want to purchase products or services from private suppliers, they usually post a public tender inviting contractors to submit a bid. The winning bid will be selected from those submitted by interested contractors.

Some organizations may also send RFPs (Request for Proposals) to select businesses that they are considering as potential suppliers. In this instance, you will compete against a handful of pre-selected contractors. Usually, the client provides a Bidding document stipulating the categories of information to be detailed as well as the style and type of proposal they expect from interested contractors.

If the Bidding document is not available, it is up to the contractors to decide what style of the proposal to present.

Companies that respond to a call for tender or an RFP are competing with other enterprises similar to theirs. As such, they must present themselves in the best possible light to win the bid.

Non-invited Proposal

Unlike invited proposals where the clients expect a bid for a product or service they need, an uninvited proposal is sent to solicit a business arrangement. You may have an idea for a product or service that will be beneficial to Company X and you have the ability to provide the service/product.

To indicate your interest in undertaking business dealings with Company X, you send an uninvited proposal stating your intentions to form a business relationship.

The company may or may not be open to your proposal; however, if it is interested, you don't have to worry about competing with other bidders.

To boost your chances of your non-invited proposal being accepted, you must market both your concept and your company. You must convince the prospective client of the value of the product or service as well as the stability and credibility of your company.

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

Hire the top business lawyers and save up to 60% on legal fees

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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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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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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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Unenabasi is a content expert with many years of experience in digital marketing, business development, and strategy. He loves to help brands tell stories that drive engagement, growth, and competitive advantage. He’s adept at creating compelling content on lifestyle, marketing, business, e-commerce, and technology. When he’s not taking the content world by storm, Unenabasi enjoys playing or watching soccer.

• Start Your Business
• Grow Your Business
• Business Ideas
• Business Plan Writing

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.

Comments are closed.

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What Is a Business Proposal?

Read on to learn what a business proposal is, how to write one, and best practices that can help your organization stand out from the competition.

Writing an effective business proposal is key to winning clients, partners, and investors. Unfortunately, many small business owners don't understand how to write or use business proposals. A business proposal is your opportunity to grow your business, so it's an important document. Every small business plan should outline how you intend to get customers, clients, and partners, but your proposal is how you'll win their business.

Whether you're proposing new products and services or trying to secure funding, your proposal needs to answer your potential partner's questions about your business. This essential business document helps potential partners understand what resources are available and how you'll complete different tasks, setting the right expectations from the beginning.

Writing a business proposal may seem daunting, but anyone can do it with the right tips and tools. So whether you're just starting your small business plan or are learning how to start a business , begin with your business proposal, even if you're not looking for investors or partners yet.

Business proposals explained

A business proposal is a document that helps you earn clients and partners by describing your business' service and product offerings. B2B businesses write proposals to other businesses, but they're not usually used in B2C companies. Moreover, a business plan proposal outlines your business, including its unique value proposition and how you can solve a problem for your intended audience.

What is a proposal in business? A proposal is how you'll win clients and partners. While they can be written or spoken, a business proposal is always written, allowing potential customers to review and sign it before receiving a contract. A proposal can also be part of a contract if you propose your services and allow clients to agree to the terms immediately.

Business proposals enable you to pitch to prospective clients and demonstrate your value by effectively telling them why they should choose your business over the competition.

Solicited vs. unsolicited business proposals

Business proposals demonstrate how a company can help another company, highlighting the customer's problems and showcasing how the business can help them. There are different types of business proposals, and the type you send to prospective partners will depend on whether or not they sent a request for proposal (RPF).

Two examples of business proposals are:

When prospective customers request a proposal, you'll send them a solicited proposal. Solicited business proposals are either formal or informal, depending on the existing relationship with the prospect.

Existing clients can also request business proposals for different services. In this case, an example of a business proposal would be a customer asking their supplier for information regarding a different service or product than the one they already use. With formal proposals, the prospect must respond within a certain time frame, and if they agree to the proposal, it turns into a signed contract.

Unsolicited

If a prospective customer doesn't send a request for a proposal, but you want to try to win their business, you can send them an unsolicited proposal. Ultimately, you can send a proposal to anyone using a cold approach to convince them to partner with you. Unsolicited proposals are typically more general than solicited ones because you haven't yet spoken to the prospect about their needs. However, they can still explain what the business does and why someone should partner with you.

How to write a business proposal

Now that you understand the business proposal definition and the 2 types of business proposals, you can start drafting one. Of course, depending on the nature of your business, you might want to start with a general proposal that allows you to fill in the blanks based on the prospects' needs.

Here are some steps for how to write a business proposal:

Develop your cover page

Every proposal needs a cover page that acts as a letter of introduction. It should be brief and explain why you're sending the proposal. For example, if you're sending it because a prospect sent an RPF, you should state that in the letter. You can also refer to past conversations that led you to send the proposal if there wasn't a request, or if you're sending an unsolicited proposal, you can explain why you've decided to send it. Your cover page should be professional, but you can write it in the first person to form a more personal relationship with the prospect.

Make a table of contents

Because a proposal is more than a few pages long, it's always best to list the different pages included. If you're sending your proposal digitally, you can hyperlink your table of contents to make it easier for the prospect to use. Even if you don't hyperlink the proposal, a table of contents is still a common courtesy to help prospects navigate and understand the documents.

Provide an executive summary

An executive summary is a brief chapter in which you describe who you are and why you're sending the proposal. Your summary can cover the different types of services you offer, team members, and the benefits of your services for the prospect. Always focus on the problem you're trying to solve. For example, if you run a marketing agency and a prospect asks about your social media marketing services, you can discuss the different ways you can boost your prospects' engagement and visibility online.

Create the main body of your proposal

The main body of the proposal should have all the information a prospect has asked for, including:

• A statement of the problem
• Your proposed solution
• Methodologies
• Qualifications

If you have goals in mind for what you're trying to achieve for the client, you can list SMART goals in the body of the proposal to help clients understand how results will be measured. Try to be as specific as possible when addressing your solution to ensure the client understands what you plan to do for them. If you're responding to a customer's request for a proposal, it's a good idea to incorporate everything they discussed in their request.

Highlight pricing

Understanding your pricing is key for potential customers, so you'll need to highlight how much your services cost. If your business proposal is solicited, you may have all the information you need to form accurate pricing. However, if you're sending an unsolicited proposal, you might send more general pricing and ask to discuss pricing in depth after your initial conversation with the client.

Your pricing chapter can also contain payment terms, such as when you'll send invoices and how long customers have to pay them.

Determine your terms and conditions

Your terms and conditions are where you can state the project's expected duration, payment methods, scheduling, and other expectations for the client. Your contract may also outline milestones throughout the relationship.

Write a conclusion

The conclusion summarizes the business proposal, reiterating the customer's problem and your solution. You should also thank them for their time whether or not they choose to sign the contract.

Leave room for signatures

Depending on your agreement procedure with the client, they can either sign your proposal or send you a letter of acceptance. Not all proposals need room for signatures. For example, unsolicited proposals that are more general should not be expected to be signed by the prospect and may even put them off of speaking with you because it adds pressure.

However, solicited proposals should have a place for signatures since you've likely already had a conversation with the client or they've sent you an RPF.

Best practices for business proposals

Understanding all the elements of a business proposal is important, but you need to make yours stand out. Clients who send RPFs will likely send requests to multiple agencies or companies, so you can expect some competition.

Here are the best practices for making your business proposal stand out from your competitors.

• Make an outline . Outlining your proposal can help you get organized and understand all the pieces of information you need to share.
• Leverage data . Using data to help you demonstrate why a company should work with you can help you win their business because it shows proof of your success. You can also use testimonials from previous clients and partners.
• Include visuals . Visuals make it easier to understand the messages your proposal is trying to convey. It will also allow you to add color to the documents, making them stand out from any other company that writes a few pages of text for their proposal.
• Use digital signatures . The easier you make signing your proposal, the more likely a client will sign it. If a client has to go out of their way to sign your document, they might forget about it or move on to a proposal that's easier to finalize.
• Conduct thorough research . Before you write your proposal, you should understand your client's pain points. This may require you to do industry research or have multiple discussions with the prospect about their needs.
• Proofread carefully . If you want your documents to be professional, it's good practice to proofread before you submit them to the client. Let multiple people within your organization review them for accuracy and grammar.
• Be straightforward . Prospects want to know how you can help them. If your business proposal is confusing, you won't earn their business because they'll think working with you will be confusing. Your business proposal is one of the first impressions of your business, so it's always best to be as straightforward as possible.

Business Proposals: Key takeaways

You can find many business proposal examples online to help you understand how other companies in your industry win new business. However, you can also send competitors RPFs to see how they write their proposals and brainstorm ways to make yours stand out. Once you're ready to send your proposal, you can use Mailchimp's content tools and email marketing templates.

Mailchimp makes it easy to market your business by giving you all the CRM tools your business needs to manage prospects and proposals. Whether you're sending a new client a proposal for a service or you're cold-emailing companies you think would be a good match for your business, we've got you covered.

Related Topics

• Partnerships
• Team Dynamics
• Lead & Manage
• Create Multichannel Campaigns
• Navigate Crisis

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Written by Jesse Sumrak | May 14, 2023

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Business plans might seem like an old-school stiff-collared practice, but they deserve a place in the startup realm, too. It’s probably not going to be the frame-worthy document you hang in the office—yet, it may one day be deserving of the privilege.

Whether you’re looking to win the heart of an angel investor or convince a bank to lend you money, you’ll need a business plan. And not just any ol’ notes and scribble on the back of a pizza box or napkin—you’ll need a professional, standardized report.

Bah. Sounds like homework, right?

Yes. Yes, it does.

However, just like bookkeeping, loan applications, and 404 redirects, business plans are an essential step in cementing your business foundation.

Don’t worry. We’ll show you how to write a business plan without boring you to tears. We’ve jam-packed this article with all the business plan examples, templates, and tips you need to take your non-existent proposal from concept to completion.

Table of Contents

What Is a Business Plan?

Tips to Make Your Small Business Plan Ironclad

How to Write a Business Plan in 6 Steps

Startup Business Plan Template

Business Plan Examples

Work on Making Your Business Plan

How to Write a Business Plan FAQs

What is a business plan why do you desperately need one.

A business plan is a roadmap that outlines:

• Who your business is, what it does, and who it serves
• Where your business is now
• Where you want it to go
• How you’re going to make it happen
• What might stop you from taking your business from Point A to Point B
• How you’ll overcome the predicted obstacles

While it’s not required when starting a business, having a business plan is helpful for a few reasons:

• Secure a Bank Loan: Before approving you for a business loan, banks will want to see that your business is legitimate and can repay the loan. They want to know how you’re going to use the loan and how you’ll make monthly payments on your debt. Lenders want to see a sound business strategy that doesn’t end in loan default.
• Win Over Investors: Like lenders, investors want to know they’re going to make a return on their investment. They need to see your business plan to have the confidence to hand you money.
• Stay Focused: It’s easy to get lost chasing the next big thing. Your business plan keeps you on track and focused on the big picture. Your business plan can prevent you from wasting time and resources on something that isn’t aligned with your business goals.

Beyond the reasoning, let’s look at what the data says:

• Simply writing a business plan can boost your average annual growth by 30%
• Entrepreneurs who create a formal business plan are 16% more likely to succeed than those who don’t
• A study looking at 65 fast-growth companies found that 71% had small business plans
• The process and output of creating a business plan have shown to improve business performance

Convinced yet? If those numbers and reasons don’t have you scrambling for pen and paper, who knows what will.

Don’t Skip: Business Startup Costs Checklist

Before we get into the nitty-gritty steps of how to write a business plan, let’s look at some high-level tips to get you started in the right direction:

Be Professional and Legit

You might be tempted to get cutesy or revolutionary with your business plan—resist the urge. While you should let your brand and creativity shine with everything you produce, business plans fall more into the realm of professional documents.

Think of your business plan the same way as your terms and conditions, employee contracts, or financial statements. You want your plan to be as uniform as possible so investors, lenders, partners, and prospective employees can find the information they need to make important decisions.

If you want to create a fun summary business plan for internal consumption, then, by all means, go right ahead. However, for the purpose of writing this external-facing document, keep it legit.

Know Your Audience

Your official business plan document is for lenders, investors, partners, and big-time prospective employees. Keep these names and faces in your mind as you draft your plan.

Think about what they might be interested in seeing, what questions they’ll ask, and what might convince (or scare) them. Cut the jargon and tailor your language so these individuals can understand.

Remember, these are busy people. They’re likely looking at hundreds of applicants and startup investments every month. Keep your business plan succinct and to the point. Include the most pertinent information and omit the sections that won’t impact their decision-making.

Invest Time Researching

You might not have answers to all the sections you should include in your business plan. Don’t skip over these!

Your audience will want:

• Detailed information about your customers
• Numbers and solid math to back up your financial claims and estimates
• Deep insights about your competitors and potential threats
• Data to support market opportunities and strategy

Your answers can’t be hypothetical or opinionated. You need research to back up your claims. If you don’t have that data yet, then invest time and money in collecting it. That information isn’t just critical for your business plan—it’s essential for owning, operating, and growing your company.

Stay Realistic

Your business may be ambitious, but reign in the enthusiasm just a teeny-tiny bit. The last thing you want to do is have an angel investor call BS and say “I’m out” before even giving you a chance.

The folks looking at your business and evaluating your plan have been around the block—they know a thing or two about fact and fiction. Your plan should be a blueprint for success. It should be the step-by-step roadmap for how you’re going from Point A to Point B.

How to Write a Business Plan—6 Essential Elements

Not every business plan looks the same, but most share a few common elements. Here’s what they typically include:

• Executive Summary
• Business Overview
• Products and Services
• Market Analysis
• Competitive Analysis
• Financial Strategy

Below, we’ll break down each of these sections in more detail.

1. Executive Summary

While your executive summary is the first page of your business plan, it’s the section you’ll write last. That’s because it summarizes your entire business plan into a succinct one-pager.

Begin with an executive summary that introduces the reader to your business and gives them an overview of what’s inside the business plan.

Your executive summary highlights key points of your plan. Consider this your elevator pitch. You want to put all your juiciest strengths and opportunities strategically in this section.

2. Business Overview

In this section, you can dive deeper into the elements of your business, including answering:

• What’s your business structure? Sole proprietorship, LLC, corporation, etc.
• Where is it located?
• Who owns the business? Does it have employees?
• What problem does it solve, and how?
• What’s your mission statement? Your mission statement briefly describes why you are in business. To write a proper mission statement, brainstorm your business’s core values and who you serve.

Don’t overlook your mission statement. This powerful sentence or paragraph could be the inspiration that drives an investor to take an interest in your business. Here are a few examples of powerful mission statements that just might give you the goosebumps:

• Patagonia: Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.
• Tesla: To accelerate the world’s transition to sustainable energy.
• InvisionApp : Question Assumptions. Think Deeply. Iterate as a Lifestyle. Details, Details. Design is Everywhere. Integrity.
• TED : Spread ideas.
• Warby Parker : To offer designer eyewear at a revolutionary price while leading the way for socially conscious businesses.

3. Products and Services

As the owner, you know your business and the industry inside and out. However, whoever’s reading your document might not. You’re going to need to break down your products and services in minute detail.

For example, if you own a SaaS business, you’re going to need to explain how this business model works and what you’re selling.

You’ll need to include:

• What services you sell: Describe the services you provide and how these will help your target audience.
• What products you sell: Describe your products (and types if applicable) and how they will solve a need for your target and provide value.
• How much you charge: If you’re selling services, will you charge hourly, per project, retainer, or a mixture of all of these? If you’re selling products, what are the price ranges?

4. Market Analysis

Your market analysis essentially explains how your products and services address customer concerns and pain points. This section will include research and data on the state and direction of your industry and target market.

This research should reveal lucrative opportunities and how your business is uniquely positioned to seize the advantage. You’ll also want to touch on your marketing strategy and how it will (or does) work for your audience.

Include a detailed analysis of your target customers. This describes the people you serve and sell your product to. Be careful not to go too broad here—you don’t want to fall into the common entrepreneurial trap of trying to sell to everyone and thereby not differentiating yourself enough to survive the competition.

The market analysis section will include your unique value proposition. Your unique value proposition (UVP) is the thing that makes you stand out from your competitors. This is your key to success.

If you don’t have a UVP, you don’t have a way to take on competitors who are already in this space. Here’s an example of an ecommerce internet business plan outlining their competitive edge:

FireStarters’ competitive advantage is offering product lines that make a statement but won’t leave you broke. The major brands are expensive and not distinctive enough to satisfy the changing taste of our target customers. FireStarters offers products that are just ahead of the curve and so affordable that our customers will return to the website often to check out what’s new.

5. Competitive Analysis

Your competitive analysis examines the strengths and weaknesses of competing businesses in your market or industry. This will include direct and indirect competitors. It can also include threats and opportunities, like economic concerns or legal restraints.

The best way to sum up this section is with a classic SWOT analysis. This will explain your company’s position in relation to your competitors.

6. Financial Strategy

Your financial strategy will sum up your revenue, expenses, profit (or loss), and financial plan for the future. It’ll explain how you make money, where your cash flow goes, and how you’ll become profitable or stay profitable.

This is one of the most important sections for lenders and investors. Have you ever watched Shark Tank? They always ask about the company’s financial situation. How has it performed in the past? What’s the ongoing outlook moving forward? How does the business plan to make it happen?

Answer all of these questions in your financial strategy so that your audience doesn’t have to ask. Go ahead and include forecasts and graphs in your plan, too:

• Balance sheet: This includes your assets, liabilities, and equity.
• Profit & Loss (P&L) statement: This details your income and expenses over a given period.
• Cash flow statement: Similar to the P&L, this one will show all cash flowing into and out of the business each month.

It takes cash to change the world—lenders and investors get it. If you’re short on funding, explain how much money you’ll need and how you’ll use the capital. Where are you looking for financing? Are you looking to take out a business loan, or would you rather trade equity for capital instead?

Read More: 16 Financial Concepts Every Entrepreneur Needs to Know

Startup Business Plan Template (Copy/Paste Outline)

Ready to write your own business plan? Copy/paste the startup business plan template below and fill in the blanks.

Executive Summary Remember, do this last. Summarize who you are and your business plan in one page.

Business Overview Describe your business. What’s it do? Who owns it? How’s it structured? What’s the mission statement?

Products and Services Detail the products and services you offer. How do they work? What do you charge?

Market Analysis Write about the state of the market and opportunities. Use date. Describe your customers. Include your UVP.

Competitive Analysis Outline the competitors in your market and industry. Include threats and opportunities. Add a SWOT analysis of your business.

Financial Strategy Sum up your revenue, expenses, profit (or loss), and financial plan for the future. If you’re applying for a loan, include how you’ll use the funding to progress the business.

5 Frame-Worthy Business Plan Examples

Want to explore other templates and examples? We got you covered. Check out these 5 business plan examples you can use as inspiration when writing your plan:

• SBA Wooden Grain Toy Company
• SBA We Can Do It Consulting
• OrcaSmart Business Plan Sample
• Plum Business Plan Template
• PandaDoc Free Business Plan Templates

Get to Work on Making Your Business Plan

If you find you’re getting stuck on perfecting your document, opt for a simple one-page business plan —and then get to work. You can always polish up your official plan later as you learn more about your business and the industry.

Remember, business plans are not a requirement for starting a business—they’re only truly essential if a bank or investor is asking for it.

Ask others to review your business plan. Get feedback from other startups and successful business owners. They’ll likely be able to see holes in your planning or undetected opportunities—just make sure these individuals aren’t your competitors (or potential competitors).

Your business plan isn’t a one-and-done report—it’s a living, breathing document. You’ll make changes to it as you grow and evolve. When the market or your customers change, your plan will need to change to adapt.

That means when you’re finished with this exercise, it’s not time to print your plan out and stuff it in a file cabinet somewhere. No, it should sit on your desk as a day-to-day reference. Use it (and update it) as you make decisions about your product, customers, and financial plan.

Review your business plan frequently, update it routinely, and follow the path you’ve developed to the future you’re building.

Keep Learning: New Product Development Process in 8 Easy Steps

What financial information should be included in a business plan?

Be as detailed as you can without assuming too much. For example, include your expected revenue, expenses, profit, and growth for the future.

What are some common mistakes to avoid when writing a business plan?

The most common mistake is turning your business plan into a textbook. A business plan is an internal guide and an external pitching tool. Cut the fat and only include the most relevant information to start and run your business.

Who should review my business plan before I submit it?

Co-founders, investors, or a board of advisors. Otherwise, reach out to a trusted mentor, your local chamber of commerce, or someone you know that runs a business.

Ready to Write Your Business Plan?

Don’t let creating a business plan hold you back from starting your business. Writing documents might not be your thing—that doesn’t mean your business is a bad idea.

Let us help you get started.

Join our free training to learn how to start an online side hustle in 30 days or less. We’ll provide you with a proven roadmap for how to find, validate, and pursue a profitable business idea (even if you have zero entrepreneurial experience).

Stuck on the ideas part? No problem. When you attend the masterclass, we’ll send you a free ebook with 100 of the hottest side hustle trends right now. It’s chock full of brilliant business ideas to get you up and running in the right direction.

About Jesse Sumrak

Jesse Sumrak is a writing zealot focused on creating killer content. He’s spent almost a decade writing about startup, marketing, and entrepreneurship topics, having built and sold his own post-apocalyptic fitness bootstrapped business. A writer by day and a peak bagger by night (and early early morning), you can usually find Jesse preparing for the apocalypse on a precipitous peak somewhere in the Rocky Mountains of Colorado.

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How to Write a Partnership Proposal [Examples + Template]

Published: June 18, 2024

Partnerships generate $3.9 billion per year in the U.S. and supercharge the revenue of companies like Microsoft, Atlassian, and Shopify. Teaming up with another professional or company can multiply your capacity, expertise, and growth.

With so much at stake, approaching a potential partner can be intimidating. Whenever I make a business pitch, there are three items I work to perfect. First, an underlying relationship to build on. Second, a stellar verbal presentation for a pitch meeting. And third, a killer partnership proposal.

A partnership proposal is a powerful tool to showcase your professionalism and convince your potential partner why they should collaborate with you. I’ve compiled what you should include in your proposal, plus four partnership proposal templates to give you a head start.

What is a partnership proposal?

• Types of Partnership Proposals

Components of a Partnership Proposal

How to write a partnership proposal, partnership proposal template, partnership proposal examples, partnership proposal tips.

A partnership proposal is a document outlining the benefits, scope, and structure of a future collaboration between two businesses or individuals.

Most partnership collaborations begin with an idea and verbal discussions. “ Hey, here’s a crazy idea. What if we…” If you don’t know the person, start with a warm intro email or phone call first.

A partnership proposal is the next step in the process, formalizing concepts to align goals and gain buy-in. While it isn’t a legal contract, it’s often a precursor to one.

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Types of Business Partnerships

Before creating a business partnership proposal, it’s important to understand which type of partnership you want to pursue.

General Business Partnership

When two or more individuals enter a business agreement and share unlimited liability, you have a general business partnership. A proposal for a general business partnership should include the share of ownership, contributions of each partner, the distribution of profits and losses, and the terms for dissolution.

Joint Venture

A joint venture (JV) is an agreement between two companies to combine resources and expertise for a specific purpose. For instance, a global company might form a JV with a local company when bringing a product to a new country.

Limited Partnership

A limited partnership (LP) is a business partnership that includes at least one general partner and at least one limited partner. Limited partners have minimal liability and management oversight of the operations. An LP is common in single-purpose scenarios like a real estate transaction.

Limited Liability Partnership

The LLP structure is common in professional service fields such as law firms, doctor’s offices, and accounting. Similar to an LLC, a limited liability partnership (LLP) is an agreement between partners that grants them limited liability. LLP requirements vary by state.

Influencer Partnership

An influencer partnership is a limited-scope agreement between an influencer or creator and a brand to create and publish branded social media content.

Sponsorship Partnership

A sponsorship is a collaboration between businesses, nonprofits, or media companies where one company pays for access to promote their goods and services to the other company’s audience.

When I write proposals, I always aim to personalize each one and find the right balance between personable and professional. While the nuances of each partnership model vary, there are a few common elements that every partnership business proposal should have.

Executive Summary

Hook your reader’s attention with a summary explaining the partnership concept, key benefits, and a table of contents.

List each partner with their contact and background information. Specify the role each will have, and whether they are a general or limited partner. Make it visual, with photos or logos.

Goals and Objectives

All good partnerships start with shared goals. Explain your goals and dreams for the partnership, from a high-level vision to specific objectives.

Share who your audience is and any key demographics. Make sure that your audience will fit with the partner’s audience, and vice-versa. An audience is a key selling point for partners, especially with influencer or sponsorship partnerships. Some brands go as far as account mapping to identify customer overlap, but general audience data can be as effective.

Scope of Work

Next, define the scope of work and projects to be covered with the partnership. If this is for a limited-scope project like an influencer collaboration, give a precise breakdown of project steps. If this is for a general partnership, JV, or LP, list target activities and deliverables and who is responsible for each. Give timelines as appropriate.

Benefits and Challenges

If you’ve ever written a business plan, you’re likely already familiar with the SWOT analysis (strengths, weaknesses, opportunities, threats). Similar to this, give an abbreviated analysis of:

• Challenges that will need to be tackled.
• Benefits to the collaboration.
• Market research and industry analysis.

Legal and Financial Information

Propose terms and conditions for the partnership, like payment and revenue-sharing structures. Spell out who will own intellectual property generated by the company and how royalties will be distributed. Address how disputes or a partnership dissolution would be handled. ​​

To test this out, I wrote a general partnership proposal between a web designer and a web developer who want to team up to start a website studio. I used HubSpot’s partnership business proposal template to build a professional proposal outlining the partnership benefits and structure.

Here are the steps I took to create the proposal.

1. Outline the Benefits

To convince your partner, make the case why it’s worth them sharing their time (and profits) with you.

I started my proposal with an executive summary envisioning why the partnership would appeal to future clients. That leads into a “Benefits of Collaboration” section where I clearly outline the mutual advantages.

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Napa, Marin, Lake, Mendocino counties get more insurance coverage in California’s latest plan

Location, location, location — as any resident or business owner knows, your California ZIP code can mean a world of difference to whether and how you get insurance.

California has mapped out a new proposal in an attempt to rescue homeowners and businesses clamoring for insurance.

The reform package involves lists of ZIP codes and whole counties designated for more coverage in exchange for allowing insurance carriers to determine their rates under certain circumstances in a practice known as “catastrophe” modeling.

The list of 28 overall “distressed” California counties includes Napa, Marin, Lake and Mendocino. They received a wildfire risk score based on over 20% of properties in the county recognized as high risk. That’s 1 in 5 structures.

Noticeably, Sonoma and Solano counties are not on the list for receiving across-the-board coverage. But pockets of those forced to pay for the FAIR Plan, the state’s insurance plan of last resort, qualify.

Here are the preliminary lists of undermarketed ZIP codes for residential and commercial properties.

“While there are areas of Sonoma County that have a high level of wildfire risk, as a whole county, it has many urban areas along the (U.S. Highway) 101 corridor that dilute the overall concentration,” California Department of Insurance spokesman Michael Soller said. “Under our proposed regulation, any FAIR Plan policyholder in Sonoma County with moderate to very high wildfire risk qualifies under our proposal.”

The plan called the Sustainability Insurance Strategy is designed to keep insurance carriers in California. With the promise of up to double-digit rate increases and reform, companies such as State Farm, the state’s largest insurance carrier, have returned.

The proposal, which has the support from Gov. Gavin Newsom, is expected to go into effect by the end of the year. The regulatory language will be released at a June 26 public workshop.

“What we’re seeing now under existing rules is insurance companies are increasing rates, but businesses and residents are not seeing the benefits,” Soller said.

The way it currently stands, insurance companies are able to choose where and how they write policies under Proposition 103, which was enacted by state voters in 1988. As a result, insurance companies are writing more policies in areas considered less risky. Insurers have based the rates on historical damages, which they say have kept prices too low.

The industry insists that it needs to be more frugal to survive, asserting that for every $1 received in premiums it pays out $1.09 in expenses and claims.

The Sustainability Insurance Strategy aims to use insurance data to identify ZIP codes in areas of wildfire hazards, known as low income and where over 15% of policies are written by the California FAIR (Fair Access to Insurance Requirement) Plan. This type of policy provides more expensive, a la carte coverage in a day and age in which most insureds say they want one carrier.

Moreover, the FAIR Plan is inundated with inquiries since insurers have ended coverage to those in fire-prone regions such as the Wine Country. Some industry insiders have indicated the association may not keep up with the demand.

“Due to the ongoing insurance crisis, the FAIR Plan has experienced historic growth, and more Californians are continuing to turn to it for the coverage they need,” spokesman Nathan Yanez said.

To address the growth, the FAIR Plan Association dramatically increased staffing, including a tripling of customer service representatives and a doubling of the underwriting teams, he added.

The California Farm Bureau applauded the commissioner for restoring order and market competition in such a tumultuous situation.

“Competition is the first step to guide the market to a place where pricing reflects ongoing wildfire mitigation efforts undertaken by Californians, including by our farmers and ranchers who work to remove fuels and safeguard properties,” bureau President Shannon Douglass said in a statement.

United Policyholders Executive Director Amy Bach agreed that competition in the market must be restored. But getting insurance companies to stay in the California market can’t come at an astronomical price either, she said.

Bach recommends the Department of Insurance invest in more actuaries with other consumer resources to handle the change. Actuaries analyze and manage risk for insurance agencies.

“We just worry about these catastrophe models. Rates have already gone up a lot,” she said. “I’m not a cheerleader for this plan, but if this is the best we can do, at least something is being done. The first step is availability and affordability.”