Want to write a formal business proposal? Get a step-by-step guide, with free business proposal examples and templates.
Jul 29, 2024
A business proposal is key to closing more lucrative deals and winning clients. But few people know how to write a business proposal when they start a business. Business proposals can also be time-consuming to write, because it requires a level of customization. Ahead, you’ll get a step-by-step tutorial on how to write a business proposal for your brand, with tips and examples along the way. Use the following guide, and template to create an effective business proposal.
A business proposal is a document sent to prospective partners, clients, or investors in the hopes of working with them on a specific project, in partnership or through investment. At the most basic level, a business proposal should address the needs of prospective partners and show them why your company is the best to fill those needs. For companies focused on business-to-business (B2B) services, and those seeking investment, knowing how to write an effective business proposal is crucial for growth.
There are different types of business proposals, depending on the service and the nature of the project, but they typically fall into three distinct categories:
Formally solicited business proposals are used when a client you’re hoping to work with asks for a proposal, usually through a publicly posted request for proposal. In response to this request, your business writes a proposed solution based on the specific needs and requirements of the potential client.
Informally solicited business proposals are typically written following conversations between a prospective client and a vendor. Usually in this case, the customer is not asking for competing proposals, and there tends to be few formal requirements.
These proposals usually are more generic in nature and serve more as marketing materials. Unsolicited proposals are common at trade shows or other public venues where a business is shopping around for prospective clients, partners, or investors. While they can generate business in the proper context, unsolicited business proposals can sometimes be seen as spammy or, worse, unprofessional.
It’s hard to know what a business proposal should look like if you haven’t made one before. Take a look at this example from hypothetical landscaping company Bee’s Knees, created using Shopify’s free business proposal template.
This title page is simple and to the point, emphasizing the client’s name and the project.
The cover letter briefly introduces the proposal. It is written by an individual and provides a call to action without being overly salesy or overwhelming the reader with the details of the proposal.
If your proposed solution is detailed, it’s a good idea to add an executive summary. The Bee’s Knees executive summary provides a brief overview of the client’s problem and the solution.
The following pages contain more detail, including a proposed project timeline. Bullet points and tables are a nice way to break up this text-heavy section.
Bee’s Knees offers three different packages and provides a brief description of each. This is helpful in the early stages of a proposal because it gives your clients flexibility. Should Bee’s Knees’ client decide to move forward, they would likely be presented with a more detailed (and legally binding) description of the costs for each service but this is an effective overview.
The About Us page explains Bee’s Knees qualifications for this project (20 years combined experience) and includes the business’s mission, values, and origin story. Consider adding founder quotes in this section, as Bee’s Knees does. This is an example of an earlier-stage business proposal that is not legally binding. A legally binding proposal would include more detailed terms and space for the client to sign. If your proposal is not legally binding, let your client know that prices are subject to change.
Our free business proposal template is easy to customize and provides writing prompts for each section. It’s a great option if you want a template that looks professional and provides guidance throughout the proposal-writing process.
Business proposals can vary in how they’re formatted, but there are a few elements they all should contain. You can always use a free business proposal template to stay on track.
The title page acts as your proposal’s “cover,” so its aesthetics are especially important. Your title page should convey basic information about your business and the proposal. This includes the title of the proposal, your business’s name and contact information, and the date you’re submitting the proposal.
Your title page should be professional, grab the reader’s attention, and draw them in. It sets the tone of your proposal, so, like any advertisement, it should convey your brand’s style and character. It’s usually a good idea to include your company logo, too.
Avoid complicated graphics that may distract from the central message of the proposal. The cover of your business proposal is the first thing your client will see, so it’s important to convey your brand in a way that’s succinct.
Your cover letter serves as an introduction to you and your business. Your cover letter should be no more than one page. In a few paragraphs, briefly describe your company’s background, mission statement, and unique selling proposition.
Your cover letter should be friendly and polite. Include your contact information and encourage your readers to reach out to you with any questions.
Unlike a résumé cover letter, visual graphics are encouraged, especially if they illustrate an important aspect of your brand’s accomplishments or mission.
The executive summary may be the most important part of your proposal. It provides details about why you’re sending the proposal and why you’re the client’s best option for solving their problem or filling their needs.
Your executive summary acts similarly to a value proposition that shows the ways your company is unique and how your prospective client, partner, or investor will benefit from working with you.
Executive summaries summarize, but they still should be specific. Identify the client’s exact issues, explain what your company does, and outline your proposed solutions to the client’s problems. There’s no need to cover logistics or strategies here—that will be covered later in the proposal.
Your executive summary should be finely tuned to the client’s needs. Even if you’re passing the proposal document on to many potential clients, it should read as though it was written for one client specifically. If different potential customers have different problems, you’ll want to make adjustments to your summary for each of them.
Your summary should give the reader a clear idea of how your company can help them, and invite them to continue reading for more details. The summary should be specific enough to act as a standalone document but brief enough that it will inspire additional questions.
Your executive summary should be two to four pages. Remember that the details will come later.
Many writers of business proposals think of their proposal pages in terms of problems and solutions. With each proposal, start by outlining the potential issues the client might face. In doing this, you show your potential clients that you have a deep understanding of their needs.
Problem and solution pages require a lot of research. You want to show potential clients you’ve done your homework: You understand their needs and know exactly what they want to do.
How you choose to break down the client’s problems and solutions is up to you. Some proposal document writers will list a number of problem statements alongside detailed deliverables. Other proposals might focus on one or two larger problems and provide a list of solutions to them.
Timetables are also important here. Potential clients will want to know how quickly you’ll be able to enact your solution and when they can expect to see results. Timetables answer these questions and are a handy visual tool to break up text.
It’s a good idea to break up your proposal content into sections that identify each problem and propose a solution. Here are some key points to address for each section:
Your proposal pages should cover all of the details of the plans you will implement. It’s best to break down the text into bite-sized chunks so it’s easier to read. Decorative graphics should be avoided here, but visual tools like charts and graphs are great for illustrating your points.
A pricing table should follow your problem and solution pages. It includes all of your products and services, paired with their pricing information.
How you structure your pricing strategy is largely dependent on the type of service or product you’re offering. But it’s usually a good idea to provide prospective clients with options. A single flat fee makes your proposal a yes-or-no question, which is easy to reject.
Adding pricing options provides clients with a more negotiable starting point, opening up the conversation about their particular needs, rather than acting as an end point.
Transparency is crucial in this section. Make sure it’s easy for your clients to understand what they’re paying for and what options they have for customizing your service. Nobody likes hidden fees or fine-print stipulations. Include all the details of your pricing options in a way that’s clear and concise.
Depending on your field, you may not want to include granular pricing details upfront before serious discussions have been had, but it’s important to get into the habit of effectively communicating your pricing regardless.
Potential clients don’t just want to know your strategy—they want to know who you are. Craft a compelling narrative that will help readers form a connection to your business. Some elements from brand storytelling you may want to include are:
In your cover letter, you touched on what makes your company uniquely qualified to solve your customers’ problems. In the qualifications summary, you’ll go into detail about why your business is best qualified to help potential customers achieve their goals.
The best qualifications summaries rely on social proof to make their case. Include case studies of previous clients, customer testimonials, praise on social media, endorsements from trusted experts in your field, and anything else that might showcase the value you provide your clients.
At the end of your marketing proposal, outline the terms and conditions of your proposal for the client. Some proposals can be legally binding, so work with a legal expert to craft this section.
Not all business proposals include a contract, so if your proposal is meant to draw your client into further negotiations, you might just include a simple call to action that provides instructions on following up with you for further discussion.
If you do include a legally binding contract, make sure to provide clients with a space for signing the agreement, or indicating their preferred method of moving forward.
Waiting to hear back from clients during the sales process can be a little nerve-wracking, but it’s important to remain patient. Give potential decision-makers some time—remember that they still need to tend to the day-to-day functions of their business.
If you haven’t heard back and want to give them a little nudge, here are some tips for following up on your proposal:
Wait at least a week before sending a follow-up. If the client has confirmed receipt of your proposal, give them a week from the date of confirmation. Keep in mind that they may want to discuss your proposal with their team before reaching back out to you.
As with other types of email marketing, a compelling subject line will increase the likelihood that prospective clients will open your email.
No need to go into finer details here—let your proposal do the talking. Use your follow-up to emphasize that you’re available for any questions, and make it easy for them to reach back out to you.
Your goal here is securing a partner, not a customer. Hacky advertising cliches like “Don’t miss out on this exciting opportunity!” may come off as alienating to potential clients.
Your follow-up is an opportunity to preview what it will be like working with you. Be polite, but friendly—as though you’re reaching out to your favorite work colleague.
It’s easy to overlook one or two emails, but much harder to overlook three or four. If your client hasn’t responded to three follow-ups, it’s time to move on.
A business proposal, ideally, should be fewer than 10 pages, but its length is dependent largely on the type of proposal you’re writing and how far your services stretch. Things like your cover letter, summary, and pricing page should be kept short—no more than two pages for each. The majority of your proposal should be your proposal pages, which go into detail about each aspect of your proposal.
A basic business proposal consists of a title page, tables of contents, cover letter, executive summary, proposal pages, pricing page, additional info about your business, and the agreement you’re proposing.
A basic business proposal includes all of the elements listed above. Different industries may include unique features (for example, an app developer may include interactive elements to illustrate how their product works), but these aspects are considered standard features to business proposals.
Start by choosing from among the many free business proposal templates, and consider what makes your business different from the competition. Why are you in the best position to assist potential clients with their needs? Be specific about what you can help your potential clients with, and make it easy for them to find out how to get in contact with you if they have questions.
