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SBP Notes PDF
SBP Notes PDF
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?”
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?”
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
7. Representative tactics
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BUSINESS PROPOSALS/PLANS
8. Company qualifications
9. Schedule
10. Costs
Formally Solicited.
Informally Solicited.
Unsolicited.
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.
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.
Steps
1. Read the Request for Proposal carefully. You might submit a business proposal in
response to receiving an RFP. ...
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.
1. Step 1: Carefully Study The Requirements Of The Request For Proposal. ...
2. Cheers, ...
6. Regards, ...
7. Respectfully, ...
8. Sincerely,
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.
5. Identify granting organizations that match your business vision and goals
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?
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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