Updated on February 24th, 2023
A business proposal outlines the parameters for a potential business arrangement between 2 parties. It can be used to present a potential partnership or to promote a company’s services to a client.
A business proposal is not a legal document but will commonly have a binding contract attached that matches the terms of the proposal.
Commonly Used For
- Bids – To make an offer on a construction related project.
- Consulting – Acts as an engagement letter providing a strategy and timeline.
- Investors – Requesting money for a partnership (similar to a business plan).
- Partners – Proposing a joint venture or other partnership type.
- Sales – Convincing a client to use a company’s products or services over competition.
How to Write (8 parts)
- Executive Summary
- Company Overview
- Problem & Solution
- Market Analysis
- Management Team
1. Executive Summary
An executive summary provides a quick overview of the entire proposal. It should include key items of the proposal to give the reader an understanding of the problem, solution, and the expected outcome. An executive summary should be written in a way that compels the reader to want to dig deeper and continue reading.
It is the pleasure of [COMPANY NAME] to present this proposal and offer an our stragetic insight regarding [PROJECT NAME]. With the use of cutting edge technologies in the [FIELD] industry and our [#] years of experience, we can promise that the products and services provided will be of the highest quality.
2. Company Overview
The details of the company, including its entity name, office address, and other means of contact. Additional information, such as its background and how it was founded, should be meant to engage the reader as best possible.
- Business Name: [NAME OF BUSINESS]
- Mailing Address: [ADDRESS]
- Phone Number: [PHONE]
- Website: [URL]
- E-Mail: [E-MAIL ADDRESS]
3. Problem & Solution
A problem statement details the current issue that most people live with on a day-to-day basis without a current solution. It should detail the deficiencies and consequences of this supposed problem and how the proposal solves such issues.
Current Problem & Solution.
a.) Current Problem. [DESCRIBE THE CURRENT PROBLEM]
b.) Proposed Solution. [DESCRIBE THE PROPOSED SOLUTION]
4. Market Analysis
A market analysis should describe the current state of the industry and it’s growth or decline in recent years. It should include the traditional business model, specific competitors, target audience, and the overall market strategy.
a.) Industry Trends. [DESCRIBE]
b.) Competition. [DESCRIBE]
c.) Target Audience. [DESCRIBE]
d.) Marketing Strategy. [DESCRIBE]