written by | April 26, 2022

Business Proposals - What Are They and How to Write One Effectively?

A business proposal is designed to entice potential customers to buy what a company sells. It's a digital or printed document that describes product or service characteristics while considering the lead's needs and desires. In other words, business proposals demonstrate how a company can assist a customer in resolving a specific issue.

Did you know?

It's critical to know the business you're writing for before you start drafting your business proposal. If they've issued you an RFP, read it thoroughly to ensure you understand what they're looking for. 

What Is a Business Proposal?

A business proposal lays out what your company does and what you can do for your customer. The business proposal aids in the company's consumer base targeting. It aids in developing marketing plans and income and expense projections, taking into account the various business models and clienteles. Every investor should look at the business model to learn more about the company's competitive advantage. Investors can better understand financial data if they understand the business strategy. Investors can better understand the company's goods, business strategies, and prospects by evaluating the business model.

Types of Business Proposals

Informally Solicited - A prospective client requests one informally, usually in a conversation.

Formally Solicited - A prospective client requests a solicited business proposal formally. These can be in a request for proposal (RFP), request for quotation (RFQ), an invitation for bid (IFB), or a request for information (RFI). 

Unsolicited - Unsolicited business proposals invite potential clients for a proposal. Marketing brochures are a typical example of this kind of business proposal.

The processes to produce a proposal are the same whether the proposal is solicited or unsolicited. It has three major points: a summary of the organisation's problem, a solution proposal, and pricing information. 

Also Read: Best Part-Time Business Ideas to Supplement Your Earnings

How to Write a Business Proposal?

The best tips to write a business proposal are as follows:

Begin With Title Page

Here, you must give some fundamental facts. Introduce yourself and your company. Incorporate your name, your firm's name, the date the proposal was filed, and the customer's or individual's name to whom the proposal is being sent. Your title page must strike a balance between interaction and professionalism. Because it sets the tone, make sure yours is sleek, pleasing to the eye, and not too "out there."

Contents Table

A good user experience is essential in almost any situation, and business proposals are no different. For the individuals on the other side of your proposal, you need to make things as clear and accessible as feasible. A table of contents is the first step, and a table of contents tells your potential client precisely what the business proposal will cover. If you're sending your proposal electronically, a clickable table of contents that jumps to the various sections of your proposal for simple reading and navigation is a good idea.

Summary for Executives

The executive summary explains why you're submitting the proposal and why your solution is the best option for the potential client. It's essential to be specific here - why are you the best option for them. The advantages of your firm's products and how they can address your potential client's problem are outlined in your executive summary, which is similar to a value proposition. Even if they don't read the entire proposal, the prospect should know how you can help them after reading your executive summary.

Developing the Main Body

Here, you should outline the client's original needs and explain how you plan to meet them and how much it will cost and how long it will take.

It's up to you and your customer how precise you want to be, but it's best to be as particular as possible.

When responding to RFPs or RFQs, you can include a correspondence matrix and a table that matches the customer's criteria to the proposal's page numbers or chapters.

Additional Clauses

If any aspects may change, such as if you expect some additional charges to arise throughout the agreement's execution, note it in this chapter.

Billing and Pricing

Provide the exact amount and payment information. If products are being delivered, you can additionally include shipping terms.

Terms and Conditions Clarification

It is where you go over the project's timing, cost, and payment schedules in further depth. It describes what you and the client agree to if they accept your proposal. Before sending the proposal to the customer, double-check the contract terms with your legal staff.


Also, provide a signature box for the client to sign and make sure they exactly understand what they're signing. It is also an excellent time to ask the prospect to contact you if they have any unanswered questions that you can answer.

Also Read: 15 Best Online Business Ideas to Start with Less Money 2022

Business Proposal Examples

Are you looking for some inspiration before you start writing?

Here are some sample business proposal formats from well-known proposal software firms that you can use to aid in the creation of your proposal.

  1. Digital Marketing Proposal - This proposal is effective because it presents a clear, precise solution to the client's difficulties. It begins with a high-value executive summary, and the breadth of services section contains a brief yet helpful overview of the services available. The client's specific benefits are stated in the first paragraph. "We are convinced that we can greatly enhance your site traffic, consumer engagement, and on-site conversions," says the company. The timeline and budget, effectively presented as 'Your Investment,' are simple and easy for the client to comprehend and choose.
  2. Web Design Proposal - This document lays out the steps for putting the planned services into action. The financials are broken down into the unit, hourly, and subscription expenses so that the client can understand them. 
  3. Engineering Services Proposal - The Project Background sections clearly define the client's work process. Each assignment is described in detail and appears to be by the requirements of an RFP. When writing a proposal, using client specs makes it easy for the reader to see how your solution directly solves their problem. It is a vital part that should follow the executive summary.
  4. Marketing Project Proposal - Some business agreements require much information and detail to satisfy the audience. This one-page proposal is ideal if your audience prefers a quick and to-the-point explanation of the project. On this appealing and easy-to-read template, break down the problem, solution, strategy, goals, and expenses.
  5. Business Consulting Proposal - This concept goes much farther, with various page layouts to suit your needs. With this clean but bold consulting template, you may pitch your services, break down the price, and show off your team.
  6. Sales Proposal - While this template is straightforward, it gives the prospect an overview of the products and services you provide and how they can be combined to create a unique solution to the client's problem or objective.


There's a whole universe of untapped potential around you – prospects who would profit from your product or service. The problems you might be having have less to do with the quality of your solution and more to do with how you might reach your potential audience. That's where business proposals come in; they can help you connect with potential clients. A strong one can clearly state your value proposition and persuade a company or organisation to work with you. 

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Q: Which are the best business proposal design practices?


The best business proposal design practices are as follows:

  • Make sure you spell-check everything. The company proposal aims to persuade your buyer that you're the best candidate for the task. A proposal that contains typos or grammatical problems sends the opposite message. Before sending your proposal, make sure to spell-check it thoroughly.
  • Allow your brand to stand out. When drafting a business proposal, researching your potential buyer and focusing on their pain areas is essential. However, that does not imply that your business proposal template must be dull. Demonstrate how unique you are in comparison to other businesses. It can be accomplished by following your brand rules, using additional images, changing up the design of your proposal, or displaying your individuality in your text.
  • Save your business proposal as a PDF. It enables you to include additional materials with your business pitch. A firm explainer movie or case studies highlighting previous client work are examples. Also, who doesn't like the ability to save paper?

Q: What are the different kinds of business proposals?


There are three kinds of business proposals:

  • Informally Solicited
  • Formally Solicited
  • Unsolicited

Q: What should the length of your business proposal be?


The length is determined by the scope of the job and the project's complexity.

Q: What is a business proposal's purpose?


A business proposal seeks to simplify the frequently complex B2B sales process between you as a supplier and a customer. It accomplishes this by providing both a source of information and entertainment. The proposal also serves as a sales pitch, attempting to persuade your buyer to purchase what you have to offer.

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