A business proposal is a written document sent to a prospective client in order to obtain a specific job, they’re often used by B2B companies to win new business and may be either solicited or unsolicited.
Effective business proposals have an executive summary, key project details, and need a client signature.
Steps to follow in preparing a successful business proposal
1.Gather all the information you need
When a business opportunity becomes available, you’ll feel pressure to urge your proposal sent over as soon as possible.
While you may actually want to send it sooner than later, taking a while gather information about the client and project first will assist you craft a proposal that’s more likely to be accepted.
You would get the key elements to incorporate in your proposal and make a more accurate and effective proposal that leads to a closed deal.
For example, if a prospective client has multiple offices or locations, you may visit one of them before you’ll accurately assess the project, during this process, timing requires the proper balance: You don’t want to send a proposal prematurely—especially if you can’t accurately estimate costs—but you also don’t want to send it too late and be beaten out by the competition.
2.Define project scope and objective.
The first thing you would like to try to do before outlining the scope of your project is to define the target of your business proposal.
It’s important that you simply know and articulate your objective so you never lose sight of the rationale for writing the proposal.
This helps straighten your outline and your business proposal. it’s also an honest practice to state the target , either in your introduction or within the executive summary of your proposal.
Know the Objective of Your Business Proposal.
Before creating a proposal objective, ask yourself these questions:
- What is the purpose of the proposal?
- What are the needs or pain points of your prospect or customer?
- What problems are you solving with your products and services?
- How does your solution solve your customer’s or prospect’s problems?
Once you’ve answered these questions, create a proposal objective statement that’s centered around your customer’s or prospect’s needs.
3.Calculate your labor and cost.
You want to consider what proportion is the project cost—and what proportion to charge the client. Many businesses use an easy formula to estimate their labor costs:
Take a mental walk-through of the project and write down the realistic number of hours it’ll deem each task. Add this up, and multiply it by 1.5.
For example, if you estimate a project will take 15hours, write it down as 20hours in your proposal (20* 1.5 = 30).
Why overestimate? this is often because projects often have unforeseen twists and turns, and adding this overtime will help account for any potential obstacles and integrate a contingency budget.
Plus, if everything goes smoothly and you finish up below your estimated hours, you’ll always offer bonus work, or bill your client a lower amount. Both will end in delighted customers.
4.Start Drafting your Buisness Proposal
Now it’s time to start the proposal document. Proposals usually a loose formula. they begin with an introduction that summarises your business and therefore the project, followed by a body that goes into all the small print (including a pricing table, photos, and charts), and a conclusion that tells the customer the way to proceed.
Including the signature page, good business proposals should have between six and 7 sections.
Six sections you should include in your Buisness proposal:
You should start by introducing your mission and company in a way that relates to your clients need. You can add a short story about your brands character to gain clients trust.
Outline what makes your company different, your credentials and accomplishment
Your introduction should be brief and simple
- Executive summary
This is one of the most important segment in your proposal. Here you should tell your client why you are the right company for the job, give the reader the key message of the proposal focus on the decision you want the reader to reach after reading it.
Use a persuasive and factual Language.
Be definite on your proposal. Here is where you can answer all the, why and how questions. Add information on your logistics, pricing and scheduling.
You can also add testimonials of your previous client and link to your website. Here is also where you include the caveat about the type of work you can produce
Its one of the most important part of your proposal
After outlining the details of your proposal, lay emphasis again on the wonderful result your company can provide.
Conclude with a call to action that encourage the reader to visit your website or contact you for more information.
5. Edit your Buisness proposal.
After writing your proposal, proofread before sending to the prospect. If possible send it to someone else to read over, they might notice errors you may not see.
Make sure you pay attention to the length and tone of your proposal, make it short enough to read in a single sitting.
6. Send out your Buisness proposal and follow up.
In some cases it is best to send your email as an attachment, some businesses may require you to log into their portal and submit your proposal.
Following up with a client to give them a reminder and to answer questions is a key part of the proposal process.
Key questions to ask before writing a proposal:
1. Who are the buyers?
2. What is the pain point?
3. Is there a budget?
4. Is there a deadline?
5. What is your best solution to their problem?
6. What are the costs if the proposal is accepted?