BUSINESS COMMUNICATION

BUSINESS PROPOSAL
MANAV SHAH
FYBCOM DIV G
HFBC826
A business proposal is a document that outlines a proposed business plan, detailing the
product or services to be provided, the costs associated with the project, and the expected
outcomes. It is typically used to request funding from investors, secure contracts from
customers, or to obtain approval for a project from stakeholders. It is also used as a sales tool,
to present an idea to potential clients or customers.

What should a business proposal include?

 Executive Summary: A brief overview of the proposal, including a summary of the

main points and any applicable background information.
 Problem Statement: A clear explanation of the problem or need that the proposal is
addressing and why the proposed solution is necessary.
 Proposed Solution: A detailed description of the proposed solution, including any
relevant information about the product or service being offered, pricing, timeline, and
any other key details.
 Benefits: A list of the benefits that the proposed solution will provide to the customer,
such as cost savings, increased efficiency, or improved customer experience.
 Evaluation: A summary of the evaluation process that was used to determine the
effectiveness of the proposed solution.
 Conclusion: A brief statement summarizing the proposal and its key points.

A business proposal is important because it outlines the goals and objectives of a project, and
puts forth a plan of action to achieve those goals. It is an essential document for any business
owner or manager looking to establish a new venture or expand an existing one. A well-
crafted proposal can help to secure customers, funding, and partnerships, and can also be
used to evaluate the feasibility of a project.

The purpose of a business proposal is to win a new project, often with a new client where there
isn’t an established business relationship.

A business’s proposal is often in competition with proposals from competitors. So the purpose
of a proposal is also to differentiate you from your competition and demonstrate the value you’ll
provide the prospective client.

Value could include demonstrating how you’ll save your prospective client time or money or
even help them make more money.

Often testimonials and examples of past projects are included to showcase your reputation and
what your business is capable of doing. This type of proof helps build trust with your potential
client.
Proposal Types

Proposals may be internal or external, solicited or unsolicited.

Internal Proposals

Internal proposals are written by and for someone within the same organization. Since both
the writer and reader share the same workplace context, these proposals usually address some
way to improve a work-related situation (productivity, efficiency, profit, etc.).

External Proposals

External proposals are sent outside of the writer’s organization to a separate entity (often to
solicit business, or to respond to another organization’s request for proposals). Since these are
external documents, they are usually formal in nature and may be introduced by a letter of
transmittal.

Solicited Proposals

You may write a solicited proposal if an organization identifies a situation it wants to

improve or a problem that it wants to solve.  A department or an organization may issue a
request for proposals (RFP), asking for proposals on how to address the situation or issue.
The requesting department or organization will evaluate proposals and choose the most
convincing one, often using a detailed scoring rubric or weighted objectives to determine
which proposal best responds to the request and addresses the organization’s needs.

Unsolicited Proposals

You may initiate a proposal yourself if you see a problem or an opportunity to make a
beneficial change.  With unsolicited proposals within an organization, you need to identify
your audience very carefully in order to get your ideas to the right audience, either an
individual or group with decision-making responsibility, or a supervisor who can support the
proposal and move it to a higher decision-making level.  Always consider your organization’s
environment, internal politics, and how your proposal potentially may be received.  For
unsolicited proposals outside of your organization, make sure that you clearly create a need
for your audience to convince that audience to read and respond. Unsolicited external
proposals are often the most difficult kind of proposal to get approved

STEPS
1. Begin with a title page.
You have to convey some basic information here. Introduce yourself and your business. Be
sure to include your name, your company's name, the date you submitted the proposal, and
the name of the client or individual you're submitting the proposal to.

Your title page should reconcile engagement with professionalism. It's a tone-setter, so you
need to make sure yours is sleek, aesthetically appealing, and not too "out there."

Here's an example of what a business proposal template looks like when done right:

2. Create a table of contents.

A solid UX is valuable in virtually any context, and business proposals are no exception. You
need to make things as simple and accessible as possible for the people on the other side of
your proposal. That starts with a table of contents.

A table of contents will let your potential client know exactly what will be covered in the
business proposal. If you're sending your proposal electronically, it helps to include a
clickable table of contents that will jump to the different sections of your proposal for easy
reading and navigation.

3. Explain your "why" with an executive summary.

The executive summary details exactly why you're sending the proposal and why your
solution is the best for the prospective client. Specificity is key here. Why are you the best
option for them?

Similar to a value proposition, your executive summary outlines the benefits of your
company's products or services and how they can solve your potential client's problem. After
reading your executive summary, the prospect should have a clear idea of how you can help
them, even if they don't read the entire proposal. Here's what one should look like:

That example thoughtfully and effectively conveys both what the business does as a whole
and how it can specifically serve the reader's needs. Here's what yours shouldn't look like:

This particular example is extremely vague. It doesn't allude to what the reader specifically
stands to gain from doing business with Outbound Telecom and fails to actually speak to why
it should be considered "the best in its industry."

4. State the problem or need.

This is where you provide a summary of the issue impacting the potential client. It provides
you with the opportunity to show them you clearly understand their needs and the problem
they need help solving.
Research, critical thinking, and extra thought are key here. You have to do your homework.
Take a holistic look at the specific issues your client faces that you can help solve. Then,
compellingly frame them in a way that sets you up for the next step.

5. Propose a solution.

Here's where you offer up a strategy for solving the problem. Like the last step, you need to
lean into specificity and personalization on this one. Make sure your proposed solution is
customized to the client's needs, so they know you've created this proposal specifically for
them.

Let them know which deliverables you'll provide, the methods you'll use, and a timeframe for
when they should expect them.

6. Share your qualifications.

Are you qualified to solve this prospect's problem? Why should they trust you? Use this
section of your business proposal template to communicate why you're best for the job.
Include case studies of client success stories and mention any relevant awards or
accreditations to boost your authority.

7. Include pricing options.

Pricing is where things can get a bit tricky, as you don't want to under or over-price your
product. If you'd like to provide the prospect with a few pricing options for their budget,
include an optional fee table. Some proposal software offer responsive pricing tables which
allow clients to check the products or services they're interested in, and the price will
automatically adjust.

8. Summarize with a conclusion.

After providing the above information, it’s necessary to simplify it into one final section.
Briefly summarize the proposal. Touch on your qualifications and why you’d serve as the
best choice. To prompt further conversation, confirm your availability. At the end of the
proposal, the goal is to have the client ready to work with you. Provide your contact
information to allow them to follow up easily.

9. Clarify your terms and conditions.

This is where you go into detail about the project timeline, pricing, and payment schedules.
It's essentially a summary of what you and the client agree to if they accept your proposal.
Make sure you clear the terms and conditions with your own legal team before sending the
proposal to the client.
10. Include a space for signatures to document agreement.

Include a signature box for the client to sign and let them know exactly what they're agreeing
to when they sign. This is also a chance to include a prompt for the prospect to reach out to
you if they have any unanswered questions you can address.

EXAMPLE OF BUSINESS PROPOSAL

Our business proposal aims to create a new online platform that offers affordable and
sustainable fashion items. This platform will cater to eco-conscious consumers who want to
shop for fashionable and affordable clothing without compromising the environment.

Introduction:

Fashion has been one of the fastest-growing industries globally, with an estimated market
size of over $3 trillion in 2020. While this industry creates jobs and drives economic growth,
it is also one of the most polluting and wasteful industries globally, with significant negative
environmental impacts.

In response to these environmental concerns, many consumers are shifting towards eco-
conscious fashion brands. However, these brands are often perceived to be more expensive
than traditional fashion brands, limiting their accessibility to a broader audience.

Our proposed online platform seeks to address this challenge by providing affordable and
sustainable fashion items to a broad range of customers. Our platform will curate a selection
of eco-conscious brands and promote sustainable fashion practices while providing a
seamless online shopping experience.

Market Analysis:

The market for sustainable fashion is growing rapidly, with consumers increasingly seeking
environmentally-friendly clothing options. A recent report by ThredUp showed that the
secondhand clothing market alone is expected to grow from $28 billion to $64 billion by
2024. Additionally, consumers are willing to pay a premium for sustainable fashion items,
with 70% of millennials willing to spend more on ethical brands.

Our platform aims to target this growing market of eco-conscious consumers who want to
make a positive environmental impact while still looking fashionable. We believe that our
platform's unique value proposition of providing affordable and sustainable fashion items will
set us apart from other online fashion retailers.

Business Model:

Our proposed business model is a combination of a marketplace and a subscription-based

model. The platform will feature multiple eco-conscious brands, providing a wide range of
sustainable fashion options to our customers.
Customers can sign up for a monthly subscription to gain exclusive access to discounts, early
access to new products, and free shipping. Additionally, customers can purchase items
directly from the platform without a subscription, with free shipping for orders over a specific
amount.

Revenue streams will be generated from both the subscription-based model and commission-
based fees from the brands featured on the platform.

Marketing Strategy:

Our marketing strategy will focus on targeting eco-conscious consumers through social
media advertising and influencer marketing campaigns. We will collaborate with social
media influencers who align with our brand values and promote our platform to their
followers.

Additionally, we will partner with eco-conscious fashion blogs and websites to promote our
platform to a broader audience. We will also leverage email marketing campaigns to target
our existing customer base with exclusive discounts and promotions.

Financial Projections:

We estimate that our initial startup costs will be approximately $500,000, which will cover
the development and launch of the platform, hiring staff, and initial marketing costs.

We anticipate generating $1 million in revenue in our first year, with a gross profit margin of
30%. We expect revenue to grow by 50% in our second year, generating $1.5 million in
revenue, with a gross profit margin of 35%.

Conclusion:

Our proposed online platform offers a unique value proposition of providing affordable and
sustainable fashion items to eco-conscious consumers. We believe that our platform's
combination of a marketplace and subscription-based model, coupled with our targeted
marketing strategy, will position us for success in the growing sustainable fashion market.