9 Steps to Writing an Effective Business Proposal

Growing a business from the ground up requires a lot of patience and determination. You have to make sure you’re separating business from personal finances. Then you also have to pay attention to market trends to create unique marketing strategies. Remember that you still have a lot of paperwork to complete on top of this!

Of course, we can’t forget the secret to providing your business direction or attracting clients and investors—an effective business proposal. This document is how you reel them in. Think of it as your ticket to creating continuous and prosperous partnerships or client relationships. With a proper business proposal, you can land the right projects on terms that work for you!

But writing the ideal proposal might seem overwhelming. Below, we’ve outlined steps that you can take to write proposals that convert—not just ones that look well-designed. So read on to learn how to write proposals like a pro!

Step 1: Do Your Research!

You might be tempted to draft a business proposal as soon as you are asked to and deliver it to the client. As much as possible, resist this urge!

Even if it takes time, gather the information that will enable you better to understand the project and the client’s needs. By doing this, you can create a strong and personalised proposal that increases your client’s likelihood of accepting it.

Some of the things you can look into are the following:

  • The problem your client is facing
  • Your client’s budget
  • Deadline
  • The decision-maker

While you can always look up your client on Google, setting up a meeting with them is best to get all the information you need.

Step 2: Start With A Title & Table of Contents To Set The Tone

Your first chance to establish the tone of your proposal is on the title page.

A well-thought-out title page shows your client that you approach your work professionally. Your title page should list your company’s name, contact information, and date of submission, as well as the client’s name and job title.

You may also include a photo of yourself, your executive team, or your business logo to give your proposal a more personal touch.

Finally, add a thorough table of contents after the title page. This makes navigating your proposal easy for your potential client.

Step 3: Draw Them In With A Captivating Introduction

Introductions are often optional. The reader usually skips the introduction since it often just reiterates what the client already knows. However, if you cannot include introductory elements in the executive summary, then add a brief formal introduction to leave a lasting impression.

An effective introduction should provide information about what your business does, how you differ from your competitors, and why your company is best suited for the job. Be sure to express your dedication to and passion for the proposed initiative.

But above all, keep it short—no more than 3 or 4 sentences!

Step 4: Summarise the Main Points of Your Proposal in Your Executive Summary

Your executive summary is where you present your sales pitch. It should outline your client’s needs and how you can be a crucial partner in helping them achieve their goals.

Then, you can explore your areas of expertise a little more in this section. Discuss similar issues you’ve resolved for other clients and how your knowledge and experience can benefit their company. Answering the questions of who, what, when, why, and how your services will help your client achieve their goals is the best way to approach this section of the proposal.

Step 5: Outline the Proposed Project and Scope of Work

Establish trust by recognising the prospect’s problems and demonstrating your understanding of their pain points. Then, you can mention your proposed solution and sell them on its value.

Give specifics about your proposed solution, such as the services, timelines, and project deliverables. Additionally, be clear about any areas where you need client input to ensure that the project keeps moving forward.

Step 6: Provide Proof That You Can Deliver

Sure, the value of your services may be super obvious to you, but it’s not to your prospects. Therefore, be sure to express that value clearly. Be explicit when describing the advantages, such as the monetary gain or cost savings.

Back this up with social proof! Let your work speak for itself by providing samples of prior work you’ve done for clients with similar needs. This can be awards, patents, testimonials, reviews of your services, etc. Add anything that shows your prospects that you’re more than just ideas and talk.

Step 7: Provide Your Pricing And Discuss Terms and Conditions

Finding the right price is about locating a happy medium between charging what you’re worth and not pricing yourself out of the market.

One way to help your clients navigate this area without giving them sticker shock is to present a few different pricing tiers for different levels of service.

Remember to write down your terms and conditions! Make it clear to the client what they will receive if they enter into a contract with you. By clearly defining the terms and conditions in the proposal, you can prevent awkward conversations later on. Here are a few examples of conditions and caveats you might want to mention:

  • Guarantees
  • Deadline-related penalties
  • How many revisions you’ll make to a piece of work
  • Rights of usage for anything you produce for the company
  • Ownership of items produced during the project
  • Ownership of items produced in advance but used during the project

Step 8: Add A Call To Action

Make it easy for your clients to accept the price and do business with you by offering a brief rundown of the next steps to get the project rolling. This might include any meetings that will be required to finalise the specifics, contracts that need to be signed, kick-off dates, and deposits that need to be paid by the date before the project begins.

Step 9: Don’t Forget to Review and Edit Your Proposal

First impressions matter, and your proposal represents your professionalism! So, once you’re done writing your business proposal, don’t forget the following:

  • Examine the document to check for flow and ensure that it reads nicely.
  • Verify that all your numbers are accurate and that you haven’t underestimated or overestimated the cost.
  • Proofread the text to check for grammar and punctuation. Ensure proper formatting and keep the font size and type consistent.
  • Make sure to speak with your audience in plain English.
  • Get right to the point and be succinct. Cut the fluff!
  • Avoid using any industry jargon. If you do use industry-specific terminology, define it in the text’s main body or add it to the appendix.
  • Use headings, subheadings, and lists to break your document into readable sections.
  • Add diagrams, photos, and tables to help illustrate and explain your points.
  • Examine the length of the proposal. Proposal length varies depending on the industry, project scope, and client requirements. However, the ideal length is usually anything fewer than five pages.

Pro Tip: Peer-reviewed proposals are much better than simply sending a business proposal without anyone other than you or your team reviewing it. Have a fresh pair of eyes check it to spot inaccuracies and mistakes.

Write Excellent Business Proposals to Help Your Company Grow

Making an effective business proposal can be the difference between standing out from your competitors and just blending in with everyone else. Use the steps and strategies above to make your business proposals work as hard as you do to win new clients.

For more insightful articles, check out Advisory Excellence’s News section!

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