[Type text]

BUSINESS PROPOSALS/PLANS
What is a Business Proposal?
A business proposal is a document that’s designed to persuade an organization to buy a
product or service.

A proposal is usually solicited or unsolicited – meaning, that the purchasing company is either
actively seeking proposals that meet a specific need or is reacting to an offer, often from a sales
person, to consider a proposal. For example, an unsolicited proposal might result from a dinner
conversation at a trade show where the seller tells a prospect that he has a solution to the
prospect’s problem, and says, “Would you like me to submit a proposal for that?”

Solicited Proposal Language

Companies use a range of acronyms when soliciting business proposals from vendors:

 Request for information (RFI) – This screening tool often precedes the proposal
solicitation process. It’s designed to help the buyer understand which vendors are in the
best position to provide what’s needed.

 Request for proposal (RFP) – In addition to outlining what the customer needs, this
document also details not only what it wants to receive from the vendor in the proposal,
but also how the proposal information should be organized and presented. An RFP is
often used when the buyer needs to evaluate which company is the best vendor based
on a number of factors besides price.

 Request for quotation (RFQ) – These are used when price is a primary factor in the
purchasing decision, but not the only one. The buyer might need information about
product availability, delivery times, and other specifics. Proposals responding to RFQs
are often shorter than those for RFPs.

 Invitation for bid (IFB) – IFBs are used to solicit services based primarily on price. Most
simply put, they’re a request for a response to the question: “What would you charge to
do this?”

Business Proposal Elements

While business proposals can take the form of a less-structured proposal letter, they are often
long documents that might include anything from engineering specifications to equipment lists
to project staffing, depending on what’s requested in the RFP.

Vendors responding to RFPs must always follow the buyer’s preferred, stated format with the
proposal. Common elements requested, which can also be used in unsolicited proposals, often
include:

1. Cover letter

2. Cover page

3. Executive summary

4. Table of contents

5. Overview or summary of the problem or need

6. Strategy or approach to solving the problem

7. Representative tactics
[Type text]
BUSINESS PROPOSALS/PLANS
8. Company qualifications

9. Schedule

10. Costs

Business proposals can be as short or as long as necessary to communicate required

information.

There are three different types of Business Proposals that are:

 Formally Solicited.

 Informally Solicited.

 Unsolicited.

What is a business proposal letter?

A business proposal letter is a written document that proposes cooperation and outlines how
your company's products or services can benefit a potential client or an investor.

What are the elements of a business proposal?

The seven components you must have in your business plan include:

1. Executive Summary.

2. Business Description.

3. Market Analysis.

4. Organization Management.

5. Sales Strategies.

6. Funding Requirements.

7. Financial Projections.

How do I write a business proposal?

Steps

1. Read the Request for Proposal carefully. You might submit a business proposal in
response to receiving an RFP. ...

2. Ask questions. ...

3. Format your document. ...

4. Add a title page. ...

5. Introduce the problem or business need. ...

6. Provide context if necessary. ...

7. Define any key terms. ...

8. Offer a roadmap for the proposal.

[Type text]
BUSINESS PROPOSALS/PLANS
What is the difference between business plan and business proposal?

A business plan is a factual broad description of a company on the executive and operational
level. A business proposal is a focused sales document intended to describe how a company will
approach a project, state the value of the project to the client and solicit the client's business.

How do you write a good business proposal?

1. Step 1: Carefully Study The Requirements Of The Request For Proposal. ...

2. Step 2: Ask All The Questions You Need: ...

3. Step 3: Outline the Scope Of The Project: ...

4. Step 4: Prepare To Deliver The Most Value. ...

5. Step 5: Write Your Business Proposal. ...

6. Step 6: Submit Your Business Proposal And Follow Up.

What are the parts of a business proposal?

1. Executive Summary. ...

2. Company Description. ...

3. Products and Services. ...

4. Market analysis: ...

5. Strategy and Implementation: ...

6. Organization and Management Team: ...

7. Financial plan and projections:

How do you end a business proposal letter?

1. Best, A short, sweet, and safe way to sign off. ...

2. Cheers, ...

3. Faithfully (or Faithfully yours), ...

4. Hope this helps, ...

5. Looking forward, ...

6. Regards, ...

7. Respectfully, ...

8. Sincerely,

What is a business proposal used for?

Business Proposals. A business proposal is a written document sent to a prospective client in

order to obtain a specific job. Proposals may be solicited or unsolicited. A client may simply
request a proposal on a project in the course of a sales call by saying: "You know, that sounds
interesting.

How many pages should a business proposal be?

[Type text]
BUSINESS PROPOSALS/PLANS
SBA Recommended Business Plans & Length. This is one of the most common questions asked
by new entrepreneurs. The answer is: “It depends.” Most business experts and counselors say it
should be 30 to 50 pages, as a minimum, while others may say even less or more than this
depending on their own personal perspective.

How do you write a formal proposal?

1. Study the Request for Proposal (RFP) carefully. ...

2. Investigate the client's needs. ...

3. Use a formal title page. ...

4. Introduce the problem that you are addressing. ...

5. Put your proposal in context. ...

6. Include definitions for key terms. ...

7. Propose a detailed solution. ...

8. Explain why your solution is the best.

What is a formal business proposal?

A formal business proposal is strategic sales-based business document that you use to present
your companyand the solution you want to offer to a potential client to persuade them to buy
from your company instead of buying from one of your competitors.

How do I write a grant for a business proposal?

1. Complete your business plan.

2. Identify financial needs and purpose.

3. Write up an executive summary of your business' needs.

4. Research funding sources for grants.

5. Identify granting organizations that match your business vision and goals

6. Get a hold of grant application guidelines, information and contact person

7. Before you start writing, clarify any questions about the application you may have
8. Develop the grant proposal outline
9. Write the grant proposal

How can Pitfalls be prevented in a business plan?

To help you craft a plan that hits all the right notes, here's a list of some of the more common
business planning mistakes you should avoid:
1. Don't put off writing a plan. ...
2. Don't confuse cash with profits. ...
3. Don't dilute your priorities. ...
4. Don't overvalue the business idea. ...
5. Don't confuse a plan with the act of planning
6. Don't fudge the details in the first 12 months
7. Don't sweat the details for the later years
[Type text]
BUSINESS PROPOSALS/PLANS
8. Don't create absurdly optimistic "hockey stick projections" of sales taking off in the near
future
9. Don't write too much
10. Don't sweat the formatting details.
How can businesses prevent pitfalls?
10 Common Pitfalls of New Entrepreneurs - and How to Avoid Them
1. Use a contract. ...
2. Create agile business systems. ...
3. Understand your payment terms. ...
4. Cover your legal bases. ...
5. Know the difference between employee and independent contractor. ...
6. Have legal agreements handy. ...
7. Don't do joint ventures without an agreement. ...
8. Define your banking boundaries.
9. Prepare for new tax types
10. Find the right tools.

What are the two main purposes of a business plan?

A business plan has two primary purposes.
First, and foremost, it should be used to help run your company with a more cohesive vision. It
is your roadmap. By truly analyzing your plan for marketing, sales, manufacturing, website
design, etc., you greatly improve your chances for success.
The second purpose of a business plan tends to be the reason most clients request plan advice
from SCORE. That is, a financial institution or other lender will not invest in your company
unless you can demonstrate that you have a roadmap to success. Banks want to mitigate their
risk of default and private investors, such as Angel’s, want a realistic forecast for when they will
be reaping a return on their capital.

What are the six main types of business plans?

1. Start-Up Business Plans. ...
2. Internal Business Plans. ...
3. Strategic Business Plans. ...
4. Feasibility Business Plans. ...
5. Operations Business Plans. ...
6. Growth Business Plans
Extra for Concept: Types of business plans include, but are not limited to, start-up, internal, strategic,
feasibility, operations and growth plans.
Start-Up Business Plans
Detail the steps to start a new business with a start-up business plan. Include sections
describing the company, the product or service your business will supply, market evaluations
and your projected management team. Provide a financial analysis with spreadsheets
describing financial areas including, but not limited to, income, profit and cash flow projections.
Internal Business Plans
Internal business plans target an audience within the business. Write an internal business plan
to evaluate a proposed project. Describe the company’s current state, including operational
costs and profitability. Calculate if and how the business will repay any capital needed for the
project. Provide information about project marketing, hiring and tech costs. Include a market
analysis illustrating target demographics, market size and the market’s positive effect on the
company income.
[Type text]
BUSINESS PROPOSALS/PLANS
Strategic Business Plans
A strategic business plan provides a detailed map of a company’s goals and how it will achieve
them, laying out a foundational plan for the entire company. According to the website, Clean
Washington Center, a strategic business plan includes five elements: business vision, mission
statement, definition of critical success factors, strategies for achieving objectives and an
implementation schedule. A strategic business plan brings all levels of the business into the big
picture, inspiring employees to work together to create a successful culmination to the
company’s goals.
Feasibility Business Plans
A feasibility business plan answers two primary questions about a proposed business venture.
According to the University of Colorado Leeds School of Business, feasibility plans attempt to
determine who, if anyone, will purchase the service or product a company wants to sell, and if
the venture can turn a profit. Feasibility business plans include, but are not limited to, sections
describing the need for the product or service, target demographics and required capital. A
feasibility plan ends with recommendations for going forward.
Operations Business Plans
Operations plans are internal plans that consist of elements related to company operations. An
operations plan, according to BPlans.com, specifies implementation markers and deadlines for
the coming year. The operations plan outlines employees’ responsibilities.
Growth Business Plans
Growth plans or expansion plans are in-depth descriptions of proposed growth and are written
for internal or external purposes. According to BPlans.com, if company growth requires
investment, a growth plan may include complete descriptions of the company, its management
and officers. The plan must provide all company details to satisfy potential investors. If a
growth plan needs no capital, the authors may forego obvious company descriptions, but will
include financial sales and expense projections.

What are the types of plans?

three major types of planning, which include
operational, tactical and strategic planning.
A fourth type of planning, known as contingency planning,

Strategic plans : are designed with the entire organization in mind and begin with an
organization's mission. Top-level managers, such as CEOs or presidents, will design and execute
strategic plans to paint a picture of the desired future and long-term goals of the organization.
Essentially, strategic plans look ahead to where the organization wants to be in three, five, even
ten years. Strategic plans, provided by top-level managers, serve as the framework for lower-
level planning.
Tactical plans : support strategic plans by translating them into specific plans relevant to a
distinct area of the organization. Tactical plans are concerned with the responsibility and
functionality of lower-level departments to fulfill their parts of the strategic plan.
Operational plans: sit at the bottom of the totem pole; they are the plans that are made by
frontline, or low-level, managers. All operational plans are focused on the specific procedures
and processes that occur within the lowest levels of the organization. Managers must plan the
routine tasks of the department using a high level of detail.
If you think about these three types of plans as stepping stones, you can see how their
relationship to one another aids in the achievement of organizational goals. Operational plans
are necessary to attain tactical plans and tactical plans lead to the achievement of strategic
plans.
What if original plans fail?
[Type text]
BUSINESS PROPOSALS/PLANS
In true planning fashion, there are also plans to backup plans that fail. These are known
as Contingency plans is an alternative course of action, which can be implemented if and
when an original plan fails to produce the anticipated result.

Regards:
Stay blessed All 