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Blog Business How to Write Business Proposal (Examples + Free Templates)

How to Write Business Proposal (Examples + Free Templates)

Written by: Aditya Sheth Jan 25, 2024

The great Mark Cuban once said, “Sales cure all.” If a business doesn’t sell, it doesn’t make money and by extension the business fails. That’s why you need to write business proposals .

A well-written business proposal can often mean the difference between winning or losing a prospective client.

In this in-depth guide to creating business proposals, we show you how to close more deals, make more sales and crush your business goals — all by using easy-to-edit professional business proposal templates .

Here’s what this guide will cover (click to jump ahead):

What is a business proposal, what are the components of a business proposal.

• How to write a business proposal step by step

More business proposal examples + writing and design tips

What should you include in a business proposal, what are the types of business proposals.

• FAQs about business proposals

Looking for a shortcut? Watch this quick video for an overview of everything to include in your business proposal:

A business proposal is a document designed to outline a business plan to convince potential client, investor or partner to engage in a business agreement with you or your company. It’s basically a sales pitch in writing to persuade potential clients to show them benefits of working with you or your company for their business success.

A business proposal outlines what your business does and what you can do for your client . It can be general like this business proposal example:

Or it can be more specific, like this business proposal template which focuses on proposing a project for the Newton Center Rail:

Or this business proposal sample, which presents a plan for a social media strategy and campaign:

To design a business proposal that holds the client’s attention, identify their pain points. Then provide your buyer with the right solution to alleviate those frustrations.

Working on a new project? These project proposal examples might come in handy for you.

The components of a business proposal can change depending on the field, company size and client needs. While details may differ, strong proposals typically introduce your company, explain the problem, offer a solution and its benefits, highlight your team’s skills, and outline timeline, cost and next steps.

Sometimes, the complexity of crafting a business proposal, especially in projects requiring thorough market analysis or technical details, calls for professional insight. Seeking research proposal writing help can be invaluable in these instances, ensuring that your business proposals are not only well-structured but also highly persuasive and tailored to meet specific client needs.

How to write a business proposal step by step

Before you start creating your business proposal template, you need to understand the business proposal format. At a high level, your effective business proposal should include the following:

• Create a compelling business proposal title
• Build a table of contents
• Craft the executive summary
• Write a detailed problem statement
• Propose your solutions
• Showcase your team’s expertise
• Create a realistic timeline
• Present your payment structure
• Specify the terms and conditions
• Receiving the decision

Below, you can see business proposal examples that demonstrate how to include these 10 sections.

1. Create a compelling business proposal title

A compelling title could mean the difference between someone reading your proposal or ignoring it in favor of a competitor’s. 

What makes a good title page? Here are the essential elements to include: 

• Your name along with your company’s name
• The name of the prospect (or their business) 
• The date you’re submitting the proposal

The gray business consulting proposal template above contains all the details a prospect would want to know. The title also offers a strong tangible benefit to the prospective buyer. Honestly, “Who doesn’t want to grow their business?”

2. Build a table of contents

The table of contents is a fundamental part of every winning business proposal template. It makes your proposal scannable and easy to read.

The people you will be pitching to are usually C-level executives like the CEO (Chief Executive Officer), COO (Chief Operating Officer), or fractional executives who work part-time. These are busy people who don’t have time to read your entire proposal in one go.

That’s why most of the business proposal examples in this list include a table of contents.

Adding a table of contents to your document makes it easy for them to go through it at their own pace. They can also skim through parts of the proposal that they deem more important. You can see how this abstract business proposal template uses the table of contents:

You can also make your business proposal template easier to navigate by adding hyperlinks to the document, particularly in the table of contents. This way your clients can jump to specific sections without having to scroll through the entire document. Ensuring your business plan format follows a clear structure can greatly enhance readability and comprehension for potential investors or partners.

It’s easy to add hyperlinks in the Venngage editor. Select the text you’d like to turn into a link, then click the link icon in the top bar. From there, select the page you want to link to! Then download your completed design as an Interactive PDF .

3. Craft the executive summary

The executive summary is a staple in all kinds of annual reports , leadership development plan, project plans and even marketing plans. It is a concise summary of the entire contents of your document. In other words, write a business proposal outline that is easy to glance over and that highlights your value proposition.

The goals of your executive summary are:

• Introduce your company to your buyer
• Provide an overview of your company goals
• Showcase your company’s milestones, overall vision and future plans
• Include any other relevant details

This gray business proposal example has a detailed yet short executive summary including some social proof in the form of clients they’ve worked with:

Take note of how precise this business proposal example is. You want to keep your executive summary concise and clear from the get-go. This sets the right tone for the rest of your proposal. It also gives your buyer a reason to continue reading your proposal.

Crafting an executive summary and keeping it concise and compelling can be challenging, but you can use an AI summarizer online or an AI proposal generator to create a polished document or executive summary. Such tools are trained on relevant AI models that can extract core points from a given text. You can get such a point either in bullet form or in abstract summary form.

Pro Tip: Try to write an executive summary such that, even if your prospective client doesn’t read the entire proposal (with a good executive summary, they most likely will), they should have a clear idea about what your company does and how you can help them.

4. Write a detailed problem statement

The point of writing a business proposal is to solve a buyer’s problem. Your goal is to outline the problem statement as clearly as possible. This develops a sense of urgency in your prospect. They will want to find a solution to the problem. And you have that solution.

 A well-defined problem statement does two things: 

• It shows the prospect you have done your homework instead of sending a generic pitch
• It creates an opportunity for you to point out a problem your prospect might not be aware they had in the first place. 

This bold business proposal template above clearly outlines the problem at hand and also offers a ray of hope i.e. how you can solve your prospect’s problem. This brings me to… 

5. P ropose your solutions

The good stuff. In the proposed solution section, you show how you can alleviate your prospective buyer’s pain points. This can fit onto the problem statement section but if you have a comprehensive solution or prefer to elaborate on the details, a separate section is a good idea.

Spare no details regarding the solution you will provide. When you write a business proposal, explain how you plan to deliver the solution. Include an estimated timeline of when they can expect your solution and other relevant details.

For inspiration, look at how this business proposal template quickly and succinctly outlines the project plan, deliverables and metrics:

6. Showcase your team’s expertise

At this point, the prospect you’re pitching your solution to likes what they’re reading. But they may not trust you to deliver on your promises. Why is this?

It’s because they don’t know you. Your job is to convince them that you can fix their problem. This section is important because it acts as social proof. You can highlight what your company does best and how qualified your team is when you write a business proposal for a potential client.

This free business proposal template showcases the company’s accolades, client testimonials, relevant case studies, and industry awards. You can also include other forms of social proof to establish yourself as a credible business. This makes it that much more likely that they will say yes!

Pro Tip: Attaching in-depth case studies of your work is a great way to build trust with a potential client by showcasing how you’ve solved similar problems for other clients in the past. Our case study examples post can show you how to do just that.

7. Create a realistic timeline

To further demonstrate just how prepared you are, it’s important to outline the next steps you will take should your buyer decide to work with you.

Provide a timeline of how and when you will complete all your deliverables. You can do this by designing a  flow chart . Or add a  roadmap  with deadlines. Pitching a long-term project? A timeline infographic would be a better fit.

If you look at this abstract business proposal template below, even something as simple as a table can do the trick.

The timeline is not always set in stone, rather it’s an estimation. The goal is to clarify any questions your potential client might have about how you will deliver for the underlying B2B sales process.

8. Present your payment and terms

On this page, you can outline your fees, payment schedule, invoice payment terms, as well as legal aspects involved in this deal. You can even use the Excel Invoice Template to create professional-looking invoices (including brand logo and other elements) and add them to this page.

The adoption of invoice templates is beneficial for small businesses as it streamlines the invoicing process and maintains professionalism in financial dealings. Also, by utilizing small business invoice templates, you can efficiently manage invoicing tasks while upholding a polished and structured approach to financial transactions.

The key to good pricing is to provide your buyer with options. A  pricing comparison table can help with this. You want to give your client some room to work with. Make sure you’re not scaring off your client with a high price, nor undervaluing yourself. 

Breaking up your pricing in stages is another great way to make sure your potential client knows what he’s paying for. Look at how this simple business proposal template does this:

The legal aspects can slot right into the terms and conditions section. Alternatively, you can add them to the signature section of the proposal to keep things simple.

9. Specify the terms and conditions

Summarize everything you have promised to deliver so far. Include what you expect from your prospective buyer in return.   Add the overall project timeline from start to end, as well as payment methods and payment schedule, incorporating these details into an online project management tool. This way, both of you will be clear on what is being agreed on.

This step is very important as it outlines all the legal aspects of the deal. That is why the terms and conditions section of your proposal needs to be as clear as possible.

I recommend consulting a lawyer or your legal team when working on this section of the business proposal. If you’re a business veteran and understand the legalities of your business, you can use the same terms and conditions across all your proposals.

10. Receiving the decision

The final step of this whole process. Your client has read your business proposal and they want to buy what you have to offer.

Add a small section at the end of your proposal to get the necessary signatures. This way, you and your client can sign the proposal and the partnership becomes official.

Be sure to also include your contact information in your business proposal template. It acts as a gentle prompt to your client to contact you in case they have any questions. A professional way of doing that would be to include an e-business card with your contact details, email i.d and any other social links you want to share.

Now that you know how to write a business proposal, let’s look at how you can optimize your proposal to deliver results!

Below you’ll find some winning business proposal templates and examples to get you started. I’ve also included some design tips to keep in mind when you’re creating your next business proposal: 

1. Know your audience 

If you have some clarity on who your ideal buyer is — their pain points, their budget, deadlines, among other things — you’ve already won half the battle.

If you are a business that helps clients with everything from running giveaways or helping grow their blog, identify which customers to pitch. This is a sure-shot way to close the deal.

Mapping user personas  for your ideal buyer can help bring some clarity. It will also help you position your business proposal correctly. This improves the chance of your buyer moving your business proposal to the “Yes!” pile.

2. Put your brand front and center

If your company follows certain brand guidelines, incorporate them in your business proposal templates. Consider how business proposal examples like the one below highlight brand identity :

From the color palettes to the company logos, everything follows their brand guidelines. The result: a business proposal that’s consistent across the board.

Pro Tip: Switching this template to match your brand assets is actually pretty easy. Venngage’s My Brand Kit feature allows you to import your color palettes, logos as well as font choices. Any Venngage template can now be your template.

You can also consider this sample business proposal template:

App design companies sure do know their design. They did a phenomenal job keeping their brand colors consistent while opting for a black design. This unique color scheme also makes their white logo prominent throughout the proposal.

3. Try less text, more visuals

Have you ever read a proposal and thought to yourself, “Wow, this is all text and has no images, I love it!”? Yeah, me neither.

The free business proposal template below is a perfect example of the “less is more” principle. It does a phenomenal job of communicating what it needs to. By substituting some of the text with icons and visuals, you get a clean business proposal that’s much more scannable.

Want to keep things strictly professional? Instead of icons, you can always add your team’s headshots. This shows your buyer exactly who they’ll be working with.  

Check out this formal business proposal format for some inspiration:

4. Switch up your business proposal designs

It doesn’t hurt to go above and beyond once in a while. Jazz up your business proposal template with some extra colors. This helps make your business proposal more engaging. It also helps your buyers retain information faster.

The business proposal example alternates between black, white and grey backgrounds. It still manages to maintain consistency in its branding . Just switching up your backgrounds once in a while can also bring in some variety to an otherwise standard business proposal.

This SEO business proposal sample proves that it’s possible to switch up the colors in every other page. But it still maintains the same color scheme across the entire proposal just like a professionally designed website: 

Pro Tip: Not a color expert? Our guide on picking colors can help you pick the right color scheme for your proposals.

A business proposal usually aims to answer the following questions: 

• Who you are and what your company does
• The problem your buyer is facing
• The solution your company offers to alleviate the problem
• How your company will implement this solution effectively
• An estimate of resources (time, money, etc) required to implement the solution

You can see how this sample business proposal template covers the above points.

Notice how this proposal template addresses the same project like in one of the previous templates, but uses a completely different design style (more retro, while the previous business proposal template is more modern and minimalistic).

Generally, there are three types of business proposals:

1. Formally solicited 

A formally solicited business proposal is made when you respond to an official request to write a business proposal.

In this scenario, you know all the requirements and have more (if not all) information about a prospective buyer. You simply need to write the business proposal for your buyer to evaluate so you can begin the sales process .

2. Informally solicited 

Informally solicited business proposals are written when there isn’t an official request for a proposal. A prospective buyer is interested in your services and asks for a proposal so they can evaluate it.

An informally solicited proposal requires a lot more research from your end. These types of proposals are usually created out of informal conversations. They are not based on official requests which often contain more detail.

3. Unsolicited 

Think of this as a marketing brochure or a cold email. Unsolicited business proposals will often take a generic, one-size-fits-all approach to business proposals. Unsolicited proposals lack any understanding of the buyer or their requirements.

But with additional market research, personalization and identifying customer pain points, you can propose a customized solution based on your buyer’s needs. This can be a very persuasive approach, such as in this business proposal example:

FAQ about business proposals

What is the purpose of a business proposal.

A business proposal aims to streamline the B2B sales process (which is often complex) between you as a seller and a buyer.

It does this by serving the dual purpose of acting as a source of information. The proposal also acts as a sales pitch aimed at convincing your buyer why they should buy what you have to offer.

What are the best practices for business proposal design?

• Do a thorough spell-check. The goal of your business proposal is to convince your buyer why you’re the perfect person for the job. A proposal with typos or grammatical errors communicates the opposite. A thorough spell-check before you send your proposal is a must.
• Keep things clear and readable: Clarity is an important aspect that you have to ensure in your business proposal. If you want your proposal to hit home and make an impact on the buyer, you have to write it in an understandable way. To keep things clear and readable, there are a couple of things that you can do. You can, for one, take care to use easy wording and segmented sentences from the get-go. You can also try paraphrasing the hard parts of your proposal once you are done writing it.
• Let your brand shine. As discussed before, writing a business proposal is all about knowing your ideal buyer and focusing on their pain points. But that doesn’t mean your business proposal template has to be boring. Demonstrate how different you are compared to other companies. You can do this through your brand guidelines, by using more visuals, switching up your proposal design or showing off your personality in your writing . 
• Create a business proposal PDF. Downloading your business proposal in PDF format allows you to attach other collaterals with your business proposal. These can include a company explainer video or case studies showcasing the work done with past clients. Also, who doesn’t love saving paper?

How long should your business proposal be? 

The length depends on the scope of the work as well as the complexity of the project. Here is a one-page business proposal template:

Can your business proposal template really be one page? Yes, as long as you understand who your buyer is and their pain points. You should also have the ability to communicate everything your ideal buyer needs to know about your business in a succinct manner.

Or if you’re feeling adventurous how about just two pages? Often, clients prefer if you go straight to the point and avoid all the fluff.

For example, this green modern marketing proposal template wastes no time in getting down to brass tacks:

Need more inspiration? Check out this blog on the 5 marketing proposal examples that’ll help elevate your business.

There is no one size fits all approach when it comes to deciding how many pages you should include in your business proposal template. And at the end of the day, “the only rules are the ones you set for yourself”.

At the end of the day, writing winning business proposals that sell is all about you understanding your buyer, their potential pain points and positioning yourself as someone who can alleviate those pain points. 

Now that you know how to write compelling business proposals, what are you waiting for?

Take action and start creating your own business proposals to close more deals and grow your business today!

More business communications templates + writing tips you might be interested in…

• 31 Consulting Proposal Templates to Close Deals
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Business Plan vs. Business Proposal

Back to Business Plans

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on February 27, 2023

A business plan and a business proposal are similar documents. In fact, in some cases the terms can be used interchangeably, such as when both aim to attract investment. 

But generally speaking, a business proposal tends to have broader scope, and this handy guide lays out precisely how these two common terms differ. 

• What is a Business Plan?

A business plan is a detailed document laying out how the business will function and develop in its first few years. The key is the “plan” part of the name, as it will specify how you will launch, gain customers, operate, make money, and, with any luck, expand. 

Yet what many first-time business owners seem to forget is that a business plan is not a static document. The initial version is based largely on assumptions, supported by research. But as you run your business you’ll learn what works and what does not and make endless tweaks to your plan.

Thus, creating a business plan is not a one-time action – it’s a dynamic and continuous process of crafting and adapting your vision and strategy. 

Components of a Business Plan

A business plan is generally much more detailed and broader than a business proposal, and has several elements :

• Executive Summary  
• Company Description/Overview
• Products or Services Offered 
• Market Analysis 
• Marketing and Sales Strategies
• Operations and Management  
• Financial Plan
• What is a Business Proposal?

A business proposal is created in connection to a specific business deal being offered by one party to another. As mentioned, when you take a business plan to an investor, you’re proposing a business relationship, so in this case a business plan and a business proposal are much the same.

But a business proposal could also be for others purposes, including:

• Bringing on a partner
• Proposing a management contract to a person you want to hire 
• Proposing a business relationship with a potential customer 
• Proposing a partnership with another company
• Suggesting a deal to a member of your board of directors

A business proposal may offer specific terms for the potential relationship, or it may be just about the benefits the relationship will bring, with terms to be negotiated later. Essentially, it’s a sales tool to get people or companies to do business with you in some way. 

Business proposals can be structured in various ways, but usually, they’ll include a summary of what your company can offer, a scope of the work to be done together, and sometimes, a price quote or a proposed structure of the business relationship.

Clearly, a business plan and a business proposal are similar – and can even be one and the same. At the same time, they can also serve very different purposes. Unlike a business plan, a business proposal can have a variety of aims and thus does not have a “one size fits all” structure. 

Whichever one you need, be sure to take your time with the research and writing so your business has the best chance for success. 

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How to Write a Business Proposal [Examples + Template]

Published: June 10, 2024

Here’s what every new business owner needs: an extra eight hours in the day, an endless supply of coffee, and, most importantly, a really strong business proposal.

A business proposal can bridge the gap between you and potential clients. Done correctly, it will outline your value proposition and persuade a company or organization to do business with you.

Here, we’ll take a look at the various kinds of business proposals and go over how to write one. We’ll also see some ideas and examples to help guide yours.

Know exactly what you need? Jump to one of the following sections:

What is a business proposal?

How to write a business proposal, business proposal templates, business proposal examples, tips for writing a business proposal, business proposal ideas.

Free Business Proposal Template

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A business proposal is a formal document that’s created by a company and given to a prospect to secure a business agreement.

It’s a common misconception that business proposals and business plans are the same. However, a proposal helps you sell your product or service — not your business itself.

Think of it this way: Instead of assisting your search for investors to fund your business, a proposal helps you seek new customers.

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Business Plan vs. Business Proposal

The terms “business plan” and “business proposal” are sometimes used interchangeably, however, they are very different. The main difference between a business plan and a business proposal is that a business plan documents your growth strategy while a business proposal is a specific ask for someone to take an action you desire (e.g., buy your product/service, invest in your company, partner with you, etc.).

In this article, we will define a business plan and a business proposal and give you examples of when each is appropriate for you to use.  

What is a Business Plan?

Download our Ultimate Business Plan Template here

Business Plan Structure

Typically, the business plan structure contains the following 10 components:

• Executive Summary
• Business Description & Overview
• Market Research & Analysis
• Customer Analysis
• Competitive Analysis
• Marketing Strategy & Plan
• Operations Plan
• Management Team
• Financial Projections & Plan

It is recommended that a business plan is updated annually to adjust for changes in the industry trends and the business itself.  

What is a Business Proposal?

In terms of what you are asking from them, it can be anything that involves funds and time on their end including cash investment, product development assistance, and even employees if they have applicable skill sets.  

Business Proposal Structure

An invited business proposal is written in response to an RFP. A request for proposal (RFP) is a document that invites potential suppliers to submit business proposals. How to write a business proposal depends on the format requested and the questions included in the RFP.

The following are the components that usually make up a business proposal:

• Brief description of your company’s services/products as the proposed solution to the goals of the RFP
• Reiteration of the scope of the particular project
• Responses to questions asked in the RFP
• Cost of the project, including drafting services, materials, tools, labor, delivery and other expenses

An unsolicited business proposal is essentially the same format, but it will solicit the client’s business while anticipating the clients’ concerns and issues. A business proposal is more of a marketing document than an offer because it attempts to persuade the potential client to do business by demonstrating your value proposition and a call to action.  

So, What’s the Difference Between a Business Proposal vs. a Business Plan?

In a business proposal, company representatives typically work with the customer to tailor a business proposition that is attractive to both parties. This usually comes in the form of a written document detailing the services and cost associated with fulfilling an offer or request but can also include electronic contracts.

In contrast, a business plan is a description of your company on the executive and operational levels aimed at investors for raising financial support or other stakeholders in order to facilitate long-term growth. For example, an investor will want to know about how different departments within your business interact with one another, while somebody who will be implementing your product probably only needs more limited information such as design specs because they are not going into production themselves.

A business proposal may provide you with more details of the project, but it does not include information about your company’s operations or future plans.  

Examples of Business Plans vs. Business Proposals

• When you give a potential investor your business plan which includes all sorts of information about how we will achieve your goals together as well as the amount of money it’s going to take. The business proposal is for them to write you a check in return for interest/principal payments or a percentage of your company.
• You might be getting partners involved in your business who will help with product development and distribution. You are offering them a business proposal to work together. However, they may request to see your business plan to better understand your goals, potential profitability, and how you plan to reach these goals before deciding to work with you.
• Your existing business has been so successful that you decide to outsource the social media marketing efforts to a freelancer to free up more of your time. The freelancer would provide a business proposal stating their terms and conditions along with the agreed-upon pay arrangement for their services. This change in organizational structure may be noted in your business plan to demonstrate expansion and financial stability to continue growth.
• In your business plan , one of your goals is to grow your client base by 5% each month. You identify potential clients in need of your services or products and send an unsolicited business proposal to demonstrate how your products or services can benefit them in order to develop a new prospective client list.

The business plan is a roadmap for your company’s present and future, while the business proposal has to do with what you are asking someone else for money.  Applying this difference into practice can be difficult at times because business plans are often marketed as business proposals. However, it is important to be able to identify the difference between a business plan and business proposal in order to maximize their effectiveness and importance with potential investors or partners.

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Updated: Apr 17, 2024, 11:59am

Table of Contents

Brainstorm an executive summary, create a company description, brainstorm your business goals, describe your services or products, conduct market research, create financial plans, bottom line, frequently asked questions.

Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan outlines short-term and long-term goals, budget and whatever else you might need to get started. In this guide, we’ll walk you through how to write a business plan that you can stick to and help guide your operations as you get started.

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Drafting the Summary

An executive summary is an extremely important first step in your business. You have to be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest. This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.

Ask for Help

When drafting the executive summary, you should have a few different options. Enlist a few thought partners to review your executive summary possibilities to determine which one is best.

After you have the executive summary in place, you can work on the company description, which contains more specific information. In the description, you’ll need to include your business’s registered name , your business address and any key employees involved in the business. 

The business description should also include the structure of your business, such as sole proprietorship , limited liability company (LLC) , partnership or corporation. This is the time to specify how much of an ownership stake everyone has in the company. Finally, include a section that outlines the history of the company and how it has evolved over time.

Wherever you are on the business journey, you return to your goals and assess where you are in meeting your in-progress targets and setting new goals to work toward.

Numbers-based Goals

Goals can cover a variety of sections of your business. Financial and profit goals are a given for when you’re establishing your business, but there are other goals to take into account as well with regard to brand awareness and growth. For example, you might want to hit a certain number of followers across social channels or raise your engagement rates.

Another goal could be to attract new investors or find grants if you’re a nonprofit business. If you’re looking to grow, you’ll want to set revenue targets to make that happen as well.

Intangible Goals

Goals unrelated to traceable numbers are important as well. These can include seeing your business’s advertisement reach the general public or receiving a terrific client review. These goals are important for the direction you take your business and the direction you want it to go in the future.

The business plan should have a section that explains the services or products that you’re offering. This is the part where you can also describe how they fit in the current market or are providing something necessary or entirely new. If you have any patents or trademarks, this is where you can include those too.

If you have any visual aids, they should be included here as well. This would also be a good place to include pricing strategy and explain your materials.

This is the part of the business plan where you can explain your expertise and different approach in greater depth. Show how what you’re offering is vital to the market and fills an important gap.

You can also situate your business in your industry and compare it to other ones and how you have a competitive advantage in the marketplace.

Other than financial goals, you want to have a budget and set your planned weekly, monthly and annual spending. There are several different costs to consider, such as operational costs.

Business Operations Costs

Rent for your business is the first big cost to factor into your budget. If your business is remote, the cost that replaces rent will be the software that maintains your virtual operations.

Marketing and sales costs should be next on your list. Devoting money to making sure people know about your business is as important as making sure it functions.

Other Costs

Although you can’t anticipate disasters, there are likely to be unanticipated costs that come up at some point in your business’s existence. It’s important to factor these possible costs into your financial plans so you’re not caught totally unaware.

Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.

How do I write a simple business plan?

When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.

What are some common mistakes in a business plan?

The most common mistakes in a business plan are common writing issues like grammar errors or misspellings. It’s important to be clear in your sentence structure and proofread your business plan before sending it to any investors or partners.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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Julia is a writer in New York and started covering tech and business during the pandemic. She also covers books and the publishing industry.

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Business Plan vs. Business Proposal

Business Plan Template

• May 15, 2024

When you start a new business or own a young company, you often hear terms like business plan or business proposal. But the question is: do you need a business plan? Or is it a proposal that you need? Or both?

Being new to the game, these terms can seem quite intimidating, and you probably don’t know where to start.

Don’t worry. We’ve created a simple business plan vs. business proposal comparison so you can determine which one to prioritize.

Let’s start by defining them!

What is a business plan?

A business plan documents a company, its business objectives, and how it plans to achieve them. It includes data regarding business goals, marketing strategies, products, services, market research, financial projections, and the dream team.

Pretty much everything a company will use to achieve its intentions.

Okay! And what about the business proposal?

What is a business proposal?

On the other hand, a business proposal is a document that describes your business’s offerings, like a product or service, to help you win potential clients and partners.

It also outlines your business, including its unique value proposition and how your company can help solve customers’ specific problems.

Now that we know the two business documents aren’t the same let’s see how they are different and in what ways.

Business plan vs. business proposal: How are they different?

Even though used interchangeably (and wrongly), a business plan and proposal are poles apart. Here’s how:

Before you ask why you need a business plan , it’s, first and foremost, to legitimize a business idea that you’ve been brewing in your head.

But it’s also to document company strategies, objectives, and operations that help you create a clear idea on how to achieve your company goals. All that data becomes one source of truth that works as a communication tool. That becomes your golden ticket to wooing investors and lenders.

On the other hand, a business proposal’s purpose is entirely about convincing a potential client and partner that your project is worth their time and money.

Unlike a business plan, it only focuses on a specific product, service, or opportunity instead of the entire business.

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2. Components and Structure

When you write your business plan , it will typically follow a specific structure containing the following components:

• Executive summary: This summary summarizes your entire business plan, highlighting the most important aspects, such as your company’s mission, financial projections, and vision statement.
• Company description: It reveals your company’s history, mission, value proposition, detailed description of products and services, achievements, and target market.
• Industry or market analysis: This is an analysis of the industry landscape to gain statistics about market needs, size, trends, competitors, and target demographics.
• Marketing plan: This includes different marketing strategies and approaches your company will take to market its products and services. It can be your pricing strategy, sales and distribution plan, and unique selling proposition.
• Operations plan: This component reveals how a company’s operations would look on a day-to-day basis.
• Organizational structure and management team: This section provides an overview of your company’s structure and how its management teams will execute the operations plan effectively.
• Financial projections and goals: This section contains a company’s financial performance, including income, sales goals, cash flow projections, and balance sheets.

Similarly, when you write a business proposal , you’ll typically encounter a structure as well. It goes like this:

• Cover or title page: To make a first impression. It can contain aesthetic visuals.
• Introduction: To introduce yourself and your company. Also, briefly explain how your product or service will solve a specific problem.
• Statement of the problem or project: To explain your understanding of the customer’s need, its importance in addressing it, and your right-fit, proposed solution.
• Table of contents: To make your data essay accessible.
• Project details: To communicate essential data, including objective, scope, timeline, key stakeholders, disclaimers, cost, and conclusion.
• Agreement with a signature box: To obtain the client’s signature.

3. Audience

A business plan’s target audience is internal stakeholders, investors, and lenders interested in your company’s long-term goals and path to success.

On the flip side, business proposals go to potential clients from established businesses. They target external or new clients, partners, or funding agencies with a specific focus on:

• Addressing customer needs
• Solving customer problems
• Or seizing opportunities

Do you know how many types of businesses exist today? Two words: Too many!

Now, that implies there are many different types of business plans . But here’s a quick list of the most common types:

• Startup business plan: This plan describes the foundation of a new business with room to adjust as the company grows. It’s given to potential investors to ask for startup funding.
• Internal business plan: In this plan, company leaders communicate business goals, strategy, and performance. The aim is to keep the board and the team in sync regarding business objectives.
• Strategic business plan: This plan documents the framework required to keep long-term goals and company vision intact.
• Growth business plan: Also known as an expansion plan, this plan describes how a company is trying to grow and hence requires greater resources like more employees, funds, materials, etc.

Business proposal types can be broadly divided into two categories:

• Solicited business proposals: In this case, a prospective client requests the informational document from you directly or expects to receive it—implicating their interest in your products or services.
• Unsolicited business proposals: Here, no client requests the documents. Instead, you take the cold email approach and send your unsolicited proposals to people you think are prospective clients or partners.

Business Proposal and Planning Best Practices

It’s already challenging to overcome market entry barriers in saturated markets and persuade potential investors. Creating a compelling business proposal and plan shouldn’t be too!

Here’s how to go about it:

• Clearly define your business goals and objectives.
• Make sure you get your audience right. (Business plans and proposals have different audiences, remember?)
• Conduct in depth research and analysis.
• Use pictures along with words, such as visuals and statistics, to support your claims and projections.
• Pay attention to the writing style, structure, and tone depending on your audience and purpose.
• Use software like an AI business plan generator or proposal templates to save time and effort.
• Review and revise regularly.

Start creating effective business plans and proposals using Upmetrics

It’s okay if you were confused about the difference between a business plan and a proposal before today. You now know the distinction between the two lies in their purpose, components, structure, audience, and type.

While a business plan provides a thorough overview of the entire business and targets internal stakeholders, investors, and lenders, a business proposal focuses on specific projects or opportunities and targets external clients, partners, or funding agencies.

When you understand these differences and employ the best practices in creating both documents, your business can effectively communicate its vision, strategy, and value proposition, securing a solid spot in this competitive world.

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Frequently Asked Questions

What is the difference between a business plan and a business idea.

A business idea is a concept’s initial spark for a product, service, or opportunity. However, a business plan is a detailed document outlining how a business idea will be executed and managed.

How many pages is a business proposal?

A good proposal is 10-20 pages long. However, it can be longer based on the industry, buyer requirements, product or service type, the scale of buyer needs, and other aspects unique to the business.

What comes first, a business plan or business proposal?

The business plan comes first since it legitimizes a business idea. Then comes a proposal because it’s specific to a particular project or opportunity and not the business as a whole.

Do I actually need a business plan?

A business plan is a detailed roadmap for your entire venture. It helps you gain investments, beat competition, make sound decisions, communicate with stakeholders, and identify risks. So, yes, you need a business plan.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Reach Your Goals with Accurate Planning

How to Write a Business Proposal

Briana Morgaine

8 min. read

Updated March 18, 2024

A business proposal can make or break your chances of securing a new client. Write a great one, and you’ll likely snag their business.

Write a poor one, and you might lose out—even if you’re offering the best service out there. So, how do you write a business proposal? What is the proper format? What do you need to include?

While it all depends on your industry, and whether or not you’re offering a product or service, writing a business proposal is pretty straightforward. We’ll answer all those questions and more throughout the course of this guide. 

• What to expect with this business proposal guide

Whether you’re starting fresh or need to look at a specific section, here’s what we’ll be covering in this guide. 

• What a business proposal is
• The differences between a business proposal and a business plan
• The format of a business proposal
• How long to make your business proposal
• How to write a business proposal

You can download a  free business proposal template here  to start writing up your own proposal as you work through this article. By the end, you’ll be prepared to develop a well-written business proposal that can explain your business clearly and win more clients. Let’s get started.

• What is a business proposal?

A business proposal is a document you’d send to a prospective client, outlining the service you’re offering, and explaining why you’re the best person for the job. 

It’s a  pitch by a business or individual  to complete a specific job or project, to supply a service, or, in some instances, to be the vendor of a certain product.

What are the different types of business proposals?

A business proposal can be either solicited or unsolicited. With a solicited proposal, the prospective client will put out a request for proposals; with an unsolicited business proposal, you are approaching a client in hopes of attracting their business, even though they did not explicitly request a proposal.  

While both are commonplace, a solicited proposal is an easier sell, as your prospective client has already decided that they want to make a purchase or use a service, and they’re evaluating possible vendors or businesses.

With a solicited proposal, your prospective client might have issued an RFP, or “request for proposal.” This is exactly what it sounds like—they want you to send over a business proposal so they can take a look at it.

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• Differences between a business proposal and a business plan

A business proposal is not the same as a  business plan . This is the most common misconception, but while there are areas of overlap (like your  executive summary ) the two are different.

That being said, you can certainly pull information from your business plan while writing your business proposal—in fact, that’s a great way to start.

But don’t confuse the two; they are distinct and separate. In short, a business plan represents the cohesive strategy of how your business operates and makes money. A business proposal is an official pitch to clients selling your products or services. 

A business proposal outlines a particular product or service offered by an established business to a prospective client.

You’re trying to sell your prospective client on your product or service, not on your business itself. You’re not after funding, as you are with a business plan, you’re trying to make a sale.

A business proposal is also not an estimate; although you’ll likely touch on costs and pricing in your business proposal, an estimate is much more informal and just a quick look at the costs, not the whole picture.

• What goes into a business proposal?

Your business proposal should address the three Ps:

• Problem statement: What your customer’s current problem is
• Proposed solution: How your business solves that problem better than other solutions
• Pricing: How much that solution costs compared to alternatives

If you’re stuck on how to start, maybe try brainstorming first; start with these three points, and you’ll have a rough, bare-bones version of your business proposal.

Once you’ve done that if you’re ready to go more in-depth, here is a step-by-step look at how to format your business proposal.

Your business proposal should start with a title page, which should include your name, the name of your company, the name of the person to whom you’re submitting your proposal, and the date submitted.

Table of contents

Depending on how long your business proposal is, a table of contents is a nice touch. Include it after your title page, and before you launch into any details. If you’re delivering it as a PDF, including anchor links down to each section, so it’s easy to get to specific areas. 

Executive summary

Introduce your proposal with a great executive summary, one that really sells your business and the products or services you provide—it’s about why you’re the right company for the job. You can draw from your business plan’s executive summary here, too.

Statement of problem, issue, or job at hand

Following your executive summary, go on to discuss the problem that the client is currently facing. Think of “problem” or “issue” loosely; after all, their main problem may just be finding the right person to complete their project. But be sure you understand why they want the product or service they’re seeking. If the proposal is for developing a brand new website, make sure you understand what they want to get out of the site—better sales, more content management flexibility. 

This is the place to show your new client that you  understand their needs , and fully grasp the issue they are trying to solve. Take this opportunity to restate the issue they are facing in your own words so that they know you understand what they are looking for.

Approach and methodology

This section shows how you plan to tackle your potential client’s problem, and the steps you’ll take to carry out your plan.

This is where you’ll get into the nitty-gritty of how you actually plan to fulfill your client’s needs. While earlier sections might have been a bit surface-level, this section of the business proposal is where you’ll go into detail about what steps you’ll take to solve their problem.

Be careful of going into  too  much detail, though—keep the jargon to a minimum. Your client should be able to follow along and get a clear sense of your plan, but you don’t want to drown them in minutiae.

Qualifications

Go ahead, brag a little—this is the section of your business proposal where you get to convince your potential client why you are the most qualified person to take on the job.

You can mention any relevant education, industry-specific training, or certifications you have, your past successful projects of a similar nature, years of experience, and so on.

Schedule and benchmarks

Be clear with your potential client: How long will your proposed project take?

Making sure you and your prospective client are on the same page from the outset will help make sure that the relationship stays positive for both of you, and that you don’t set your client up with unrealistic expectations.

While you might be tempted to underestimate how long it will take you to complete the project, don’t. Don’t promise what you can’t deliver!

If you’re offering a product, this section might not be applicable to you, so feel free to omit it. The business proposal format is flexible, so tailor it to suit your business and industry.

Cost, payment, and any legal matters

Here is where you get down to brass tacks and state the cost, and payment schedule if necessary.

How you structure this section will largely depend on the particular project or service you are offering. A section entitled “Fee Summary” may be sufficient if one-time payment is required; otherwise, a “Fee Schedule” list or pricing table might be more appropriate. Always refer back to the client’s RFP whenever possible, to make sure you’re supplying them with all the information they need to help make their decision.

If there are any legal issues to attend to, such as permits or licensing, include this information here. Feel free to add a section entirely devoted to handling the legal side of the project if need be.

This is your final sell—don’t be afraid to detail for your prospective client all they have to gain by choosing you to complete the project.

Impress upon your clients why you are the best choice, and all the ways in which their business will benefit from choosing you and your business as their solution.

• How long should a business proposal be?

When it comes to the format of a business proposal, this is the million-dollar question without an answer. Remember in school, when you’d ask your teacher how long an essay should be, and they’d reply, “as long as it takes to answer the question.”

The same applies to your business proposal. It ultimately depends on your industry, the scope of the project, and the client’s specifications in terms of detail and elements included.

That being said, the tighter your initial proposal can be and the more directly you can make your point, the easier it will be to pitch it to clients. Start by following the business proposal format above as a guide, and you’ll be well on your way to creating a winning business proposal—and securing new clients.

Bri Morgaine is a seasoned content marketing leader with a decade of experience in copy editing, social media operations, and content strategy— having honed her skills at industry giants like Palo Alto Software and Andreessen Horowitz.

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Business Plan vs Proposal: An In-Depth Comparison

Explore the distinguishing factors and circumstances that make a Business Plan or Business Proposal more fitting for driving success and growth in your enterprise. Gain insights into the purpose, audience, and strategic value of each document, and learn when it’s best to utilize a Business Plan or pitch with a Business Proposal.

Table of Contents

What is the Main Difference Between a Business Plan and a Business Proposal?

The main difference between a Business Plan and a Business Proposal is that a business plan is a formal document that outlines the company’s goals, strategies, market analysis, financial needs, and projections for the future, aimed at providing a roadmap for the business’s success and often used to secure funding or guide the management team. On the other hand, a business proposal is a tailored document created to pitch a specific product, service, or solution to a potential client or partner, detailing how the business can fulfill a particular need or solve a specific problem for the recipient, often with the goal of initiating a transaction or project.

Understanding Business Plans and Business Proposals

A Business Plan is a comprehensive document that outlines a company’s objectives, strategies, market analysis, financial forecasts, and operational structures. It primarily serves as an internal roadmap for the company’s strategic direction and helps to attract investors by showcasing the company’s potential for growth and profit. Business plans are often developed during the foundational stages of a company and updated periodically to guide the company through different stages of growth.

A Business Proposal , on the other hand, is a targeted pitch provided to a specific client or partner to convince them to do business with you. Unlike a business plan, a business proposal is not a broad overview of the entire company. Instead, it is a customized suggestion that outlines how your business can solve a particular problem or meet a specific need of the prospective client. The proposal highlights the benefits of selecting your company’s products or services and typically includes pricing, terms, and conditions for a potential engagement or project.

Key Differences between a Business Plan and a Business Proposal

• Purpose : A business plan is primarily used for strategic planning and securing investment, while a business proposal is aimed at winning a specific contract or project.
• Audience : The audience for a business plan is typically potential investors, stakeholders, or company management. On the other hand, the business proposal is directed towards a specific client or partner.
• Focus : A business plan covers the entire company’s goals and operations, whereas a business proposal targets a specific offering for the client.
• Details : While business plans include detailed financial projections and market analysis, business proposals focus on how your company can meet the client’s needs and the costs associated with your proposition.
• Frequency : Business plans are created infrequently, often at startup or significant growth stages, while business proposals are generated as needed when pursuing new business opportunities.
• Structure : Business plans have a standard structure, including an executive summary, company overview, products/services, and financials, whereas proposals are tailored to the client’s request.
• Standardization : Business plans tend to follow a similar format from one to the next, while proposals are highly customized to align with the potential client’s requirements.
• Duration : The time horizon in a business plan can span several years, reflecting long-term planning, but a business proposal typically concerns the timeframe for a specific project or service offering.

Key Similarities between a Business Plan and a Business Proposal

• Strategic Elements : Both documents outline strategic approaches, whether for the company as a whole or a specific project.
• Research : Thorough market research is essential in creating either a business plan or a business proposal to ensure feasibility and competitiveness .
• Objective Setting : Each document includes clear objectives that the company wishes to achieve, be it long-term company goals or objectives of a contract.
• Persuasive Nature : Both are meant to be persuasive documents that convince the reader to invest in the company or to hire the company for services/products.
• Professional Presentation : A business plan and a business proposal should both be presented in a professional manner, well-organized and free of errors, to make the best impression.
• Financial Information : Financial aspects are crucial in both; while a business plan may have more comprehensive financial projections, a proposal should still outline costs and pricing models.
• Action Plan : Action steps or milestones are outlined in both to guide the intended strategy into practical steps or to give the prospective client a clear timeline for project completion.

Advantages of a Business Plan Over a Business Proposal

• Clarity and focus : A business plan provides a clear roadmap for your company , detailing your objectives, strategies, and financial projections. It enables you to stay focused on your long-term goals and the steps required to reach them.
• Risk assessment : It allows for a thorough risk assessment, helping you foresee potential challenges and devise strategies to mitigate them.
• Investor attraction : A well-crafted business plan is essential for attracting investors and lenders as it showcases the viability and profitability of your business idea.
• Strategic planning : The business plan acts as a strategic planning tool, helping you to align your short-term and long-term goals with the overall vision of the business.
• Operational guidance : It provides detailed operational guidance, outlining day-to-day activities, management responsibilities, and the organizational structure.
• Performance tracking : By setting benchmarks and performance metrics, a business plan makes it easier to track progress and measure success over time.
• Market analysis : A business plan includes an extensive market analysis, offering insights into your target market, competition, and market trends, which are crucial for making informed decisions.

Disadvantages of a Business Plan Compared to a Business Proposal

• Inflexibility : A business plan can be quite rigid, with a focus on long-term strategies and projections that might not adapt well to rapid changes in the market.
• Time-consuming : Preparing a comprehensive business plan requires a significant amount of time and effort, potentially diverting resources from immediate business opportunities.
• Outdated information : A business plan might quickly become outdated if the market or the company’s circumstances change, requiring frequent revisions.
• Cost : The production of a business plan can be costly, especially if it necessitates the expertise of consultants or outside advisers.
• Overemphasis on planning : There’s a risk of over-planning and under-executing, where too much time is spent on creating the perfect business plan instead of taking action.
• Complexity : A business plan’s complexity might be intimidating or overwhelming for small business owners who may prefer the simplicity and directness of a business proposal.
• Less tailored : While a business proposal is often customized to the needs and interests of a specific client or investor, a business plan is a broader document that may not address specific concerns or questions from potential stakeholders.

Advantages of a Business Proposal Over a Business Plan

• Focus on Specificity : A business proposal is usually tailored to a specific client or project, which means it’s highly targeted and practical. This specificity allows the business to directly address the client’s needs and provide a customized solution that a general business plan cannot offer.
• Rapid Execution : Proposals tend to be shorter and more concise, which allows for quicker evaluation and a faster start on the project. Businesses can get to work immediately after the proposal is accepted, shortening the time from planning to action.
• Persuasive Element : A business proposal aims to persuade a particular client or investor to buy into the idea, product, or service. This persuasive nature means that proposals often focus on benefits and competitive advantages, potentially leading to a higher success rate in securing funding or partnership.
• Adaptability : Since a proposal is typically for a particular client or project, it can be easily adjusted for different opportunities or audiences without reworking an entire business plan. This adaptability makes it more versatile in responding to market changes.
• Ease of Preparation : A business proposal can be less daunting to create than a full-blown business plan as it generally does not require as much market analysis and financial forecasting. It allows the business to focus on the immediate opportunity rather than extensive strategic planning.
• Potential for Immediate Feedback : When you present a business proposal, you often do so in a setting that allows for immediate questions and feedback. This gives you the chance to quickly address concerns, modify your offer, and improve the chances of an agreement.
• Enhanced Relationship Building : Crafting a proposal requires understanding the client’s needs and objectives deeply, often leading to stronger client-business relationships. This rapport can be beneficial for both future business and referrals.

Disadvantages of a Business Proposal When Compared to a Business Plan

• Lack of Long-term Vision : A business proposal is often focused on the immediate project and may not outline the long-term strategic direction of the company as comprehensively as a business plan would.
• Limited Scope : Proposals generally address specific aspects of a business’s operations rather than providing a complete picture. This narrow focus might overlook broader opportunities or challenges that a business plan would typically account for.
• Missed Detail : While business proposals are succinct, the brevity can sometimes result in the omission of important details that would be standard in a business plan, such as thorough market analysis or full financial projections.
• Potential Dependency : If a company relies too much on individual proposals for direction, it might find itself without a cohesive strategy which a business plan is designed to provide. This can lead to a reactive rather than proactive business approach.
• Risk of Assuming Knowledge : Proposals may assume that the reader has a certain level of understanding about the company or product, which can be a risky assumption if the reader is new to the business or its offerings.
• Need for Customization : Each business proposal needs to be customized for its intended audience, which can be resource-intensive when dealing with multiple prospects or regular tender submissions.
• Limited Investor Appeal : Investors often prefer to understand the comprehensive strategy and the broader financial implications of a business, something a focused business proposal may fail to communicate in comparison to a detailed business plan.

Situations When a Business Plan Is Preferable to a Business Proposal

• Establishing Clear Direction : When a new business is just starting out, laying out a comprehensive business plan is crucial for establishing a clear direction and objectives for the business. It serves as a roadmap for where the owners want to take the company and how they plan to get there.
• Securing Funding from Investors : A business plan is generally required for entrepreneurs seeking investment or loans. It presents detailed financial projections, market analysis, and business strategies that are essential to convince investors or banks to finance the venture.
• Long-term Strategic Planning : For setting long-term goals and defining the vision of the business, a business plan is more appropriate because it takes a broader view of the business’s place in the market and its growth strategy over the coming years.
• Developing Comprehensive Financial Projections : A business plan includes detailed financial forecasts that cover multiple years. This level of detail is necessary for stakeholders to understand the financial trajectory and potential of the company .

Situations When a Business Proposal Is Preferable to a Business Plan

• Responding to Specific Client Requests : A business proposal is tailored to the needs and specifications of a potential client or partner. When a business wants to offer solutions to another company’s problem, a proposal is best suited for outlining how it will meet those specific needs.
• Competitive Bidding Situations : When entering a bid to win a contract, a business proposal is more advantageous as it focuses on why the business is the best fit for the project, detailing its approach, unique benefits, and value proposition.
• Establishing Partnership Agreements : If a company is looking to form a collaboration or partnership, a business proposal lays out the terms and benefits of the partnership, which is more specific than the broader scope of a business plan.
• Project-driven Opportunities : For businesses that operate on a project-by-project basis, such as construction or consulting, business proposals are the better tool. They provide prospective clients with a detailed breakdown of the objectives, strategies, and costs for each unique project.

What components should be included in a business plan?

• Executive Summary : An overview of the business and its strategy
• Company Description : Legal establishment, history, start-up plans, etc.
• Market Analysis : Industry, market and competitor research
• Organization and Management : Business and management structure
• Service or Product Line : Description of what you’re selling
• Marketing and Sales Strategies : How you’ll attract and retain customers
• Funding Request : Your current funding requirements
• Financial Projections : Balance sheets, cash flow statements, and income statement forecasts
• Appendix : An optional section that includes résumés, permits, and other legal documents

How often should a business plan be revised?

A business plan should be reviewed and revised at least annually, or more frequently if there are significant changes in the market, the business model, or if new challenges or opportunities arise .

In what scenarios is a business proposal unnecessary?

A business proposal may not be necessary when transactions are straightforward and do not require detailed explanations, such as standard retail sales or when there is already an established relationship with the client based on trust and familiarity.

Can a business proposal lead to a long-term relationship with a client?

Absolutely. If a proposal leads to a successful project and client satisfaction, it can serve as the foundation for a long-term business relationship and future projects or collaborations.

What is an unsolicited business proposal?

An unsolicited business proposal is one that is offered without an explicit request from the potential client. It often reflects the proposer’s initiative to identify potential needs of the recipient and offer solutions to unaddressed challenges.

How can you make a business proposal stand out?

To make a business proposal stand out, it should clearly articulate the unique value proposition, be tailored to the client’s specific needs, contain compelling and concise content, and demonstrate a deep understanding of the client’s industry and challenges.

Are there any legal considerations when drafting a business proposal?

Yes, a business proposal should ensure that all claims and statements are truthful and that no proprietary or confidential information is disclosed without permission. Additionally, the terms and conditions should be clearly outlined to avoid any misunderstandings, and if accepted, it can be the basis for a legally binding contract.

Business Plan vs Proposal Summary

The decision between a Business Plan and a Business Proposal hinges on the specific requirements, goals, and context of your enterprise. A Business Plan lays the foundation for your company’s long-term strategy, risk mitigation, and operational guidance, with an expansive view of the business’s aims and the means to attract investors. Conversely, a Business Proposal concentrates on the immediacy of client-specific projects, presenting a tailored solution with a persuasive edge to secure contracts and foster client relationships swiftly.

About The Author

Hidayat Rizvi

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

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A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.

Key Takeaways

• A business plan is a document detailing a company's business activities and strategies for achieving its goals.
• Startup companies use business plans to launch their venture and to attract outside investors.
• For established companies, a business plan helps keep the executive team focused on short- and long-term objectives.
• There's no single required format for a business plan, but certain key elements are essential for most companies.

Investopedia / Ryan Oakley

Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.

Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.

A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.

While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.

A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.

Common elements in many business plans include:

• Executive summary : This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services : Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents , proprietary technology , and research and development (R&D) information.
• Market analysis : Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors.
• Marketing strategy : Outline the company's plans to attract and retain customers, including anticipated advertising and marketing campaigns. Describe the distribution channels that will be used to deliver products or services to consumers.
• Financial plans and projections : Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests.

Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.

2 Types of Business Plans

Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These are detailed and lengthy, requiring more effort to create but offering comprehensive information that can be persuasive to potential investors.
• Lean startup business plans : These are concise, sometimes just one page, and focus on key elements. While they save time, companies should be ready to provide additional details if requested by investors or lenders.

Why Do Business Plans Fail?

A business plan isn't a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections. Markets and the economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All this calls for building flexibility into your plan, so you can pivot to a new course if needed.

How Often Should a Business Plan Be Updated?

How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While a well-established business might want to review its plan once a year and make changes if necessary, a new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.

A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.

As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.

University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.

Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

Harvard Business Review. " How to Write a Winning Business Plan ."

U.S. Small Business Administration. " Write Your Business Plan ."

SCORE. " When and Why Should You Review Your Business Plan? "

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Business Proposal and Business Plan: What’s the Difference?

Business prop os al and business plan are relatively similar but distinctively different terms, making many use these two words interchangeably.

You’ll see distinguishing features in their content, structure, writing style, purpose, and goals. Even so, there are various similarities between a business proposal and a business plan.

The main distinguishing factor to note is that a business plan documents the growth strategy and presentation of facts, while a business proposal is a specific ask for an individual to take action (buy your service/product, partner with you in business, and invest in a particular business). 

Let’s look at the two terms in detail and highlight a few examples when it’s appropriate to use.

What is a Business Proposal?

A business proposal is a company’s documentation that goes directly to its prospective client. It’s usually written in an attempt to sell a company’s product or service.

While a business proposal is not an estimate, it’ll have certain financial details. An estimate is unofficial and simply a way to skim over the real costs without presenting the real picture.

In a nutshell, a business proposal shows a particular business idea intended to get investors to support this particular endeavor being suggested.

Although a business proposal shows an overview of what the company does (just like a business plan), its main aim is to provide information about the suggested business idea. 

It answers any questions or concerns potential investors may have about the suggested business idea.

Prospero business proposal software can help you easily draft a competitive and compelling proposal to beat other bids. With its user-friendly interface and various proposal templates , you don’t have to create everything from scratch.

Let’s now look at the importance of a business proposal and a business plan.

Reasons for a Business Proposal

The main reason a proposal is written can only be understood based on the type of proposal you want to draft. They’re two types of proposals; invited and non-invited proposals.

Invited proposal

An invited proposal is submitted in response to an advertisement from a potential client. A good example is government agencies inviting contractors to bid on a particular service.

Alternatively, businesses request for proposals from a group of suppliers they’re willing to consider as prospective clients.

Non-invited proposals

Non-invited proposals, on the other hand, are submitted to potential clients even when they haven’t requested one. In both instances, a company must develop a compelling proposal to convince buyers. 

Proposals are limited in the scope of a particular need or project and written to specific audiences.

The main reason why businesses write proposals is to solicit or grow company opportunities. You can think of a proposal as an external document to present or sell the company to external players.

It shows what the business is all about and how it intends to carry out a particular project or use that opportunity to generate revenue for both parties.

What is a Business Plan?

A business plan is a factual description of a company on the operational and executive levels. It’s a written presentation of a company’s grand vision.

The document is typically tactical; it states where and when you want to start a project. Moreover, it will highlight when you’ll want to move on to the next phase of the project and how to accomplish that project.

It makes potential investors interested in a company (especially small startups that haven’t made a name for themselves).

A business plan will also provide an idea of what the business requires from professionals, such as attorneys and potential employees. It indicates whether or not a company’s business goals are realistic, let alone achievable.

Reasons for a Business Plan

Business plans are visions for your company and how you intend to execute all these visions. They outline financial projections of what a business will cost to develop and operate, plus an estimate of the revenues the business will generate.

Its main purpose is to provide a reasonably detailed description of the company for use by potential investors, suppliers, accountants, and prospective employees, among other people. For instance, one of the prerequisites for an SBA loan is an extensive and organized business plan.

Moreover, it’ll provide a quick but comprehensive view of what your company does and its chances for success.

The main reason companies write business plans is to convey and record information.

Structure of a Business Plan and a Business Proposal

Here, the two documents have various components featured on them. Here’s a detailed description of their structure below:

Structure of a Business Proposal

Overall, the structure of a proposal will depend on whether it’s solicited or unsolicited.

A solicited proposal responding to a request for proposal takes the format of an RFP. Here are the components of a business proposal:

• Usually, it takes a quick description of products and services relevant to the RFP goals.
• Outlining the company’s scope of work.
• Answers to questions posed in the RFP.
• Estimate detailing tools, materials, labor, delivery, and other elements that’ll affect the project’s cost.

An unsolicited proposal to create a business opportunity follows the same format. It, however, anticipates questions potential clients might have .

A proposal is a marketing document designed to convince prospects to do business by presenting a value disposition plus a call to action.

Try creating your business proposal here .

Structure of a Business Plan

A business plan has three components; sales tactics, business model description, and financial goals. More elaborately, it consists of the following section of information:

• A summary of the executive
• Product/service description
• Industry analysis
• Operating plan
• Marketing strategies  
• Internal analysis
• Built-out plan
• Structure of leadership 
• Introduction of management 
• Financial goals

The business plan is more like an information document displaying the company’s operation and potential.

Many companies fail to follow this format while writing their business plan or proposal, a reason why most don’t win bids or prospective clients. 

Using Prospero to write a professionally compelling business proposal and integrate your business plan can help you get investors interested in your company so that they want a sit at the table.

What’s the Difference Between a Business Plan and a Proposal?

Business proposals differ from business plans in content, writing style, purpose, goals, and structure.

The sole distinguishing factor between the two terms is that a business plan is a factual presentation of facts, whereas a business proposal is an external market document that highlights a quote and a call to action.

Let’s look at some distinguishing features between the two terms:

Business Proposal vs. Business Plan

A business plan provides a detailed description of how the business was set up, plus its project.

On the other hand, a business proposal is a purposeful sale document illustrating how a business will execute a particular project. Usually, it’s drawn and submitted to another enterprise or organization putting forward a business arrangement.

In addition, the structure of a business plan contains three elements, including a description of the business model , sales tactics, and financial projections.

On the other hand, the structure of a business proposal takes the format of an RFP if it’s solicited.

A business plan shows the scope of a business and, in turn, clarifies your thinking as a business owner and also gives you information that you hadn’t considered before.

Conversely, proposals show a limited scope of a specific project or need for a particular audience.

While trying to craft these two documents, you must seek proficient experts to help you write compelling proposals and plans to convince potential investors and other partners to invest in your business.

Types of Business Plans and Proposals

A business proposal can be divided into solicited and unsolicited proposals. How different are they? Let’s delve right in.

Solicited Proposals

This is presented in response to a request for proposal (RFP) . It’s usually submitted responding to a work statement from sponsors.

These sponsors use the request for proposal to solicit a specific proposal for research, training, or to provide services or goods. The RFP includes standard terms, conditions, and assurance that the company is asked to accept. 

A good example is when an organization or government agency wanting to buy products or services from a particular sector invites contractors to place bids.

In other scenarios, some businesses will ask suppliers to provide RFP to those they’re considering a partnership with.

The business is competing against other businesses that want to secure the same contract. It’s, therefore, in their best interest to provide compelling and competitive business proposals.

Prospero can assist you in such instances; it has the experience and expertise to curate excellent proposals that win contracts. Call it today to generate a proposal with its Prospero business proposal generator.

Unsolicited Business Proposals

This proposal is submitted to potential clients, even when they haven’t asked for one.

In such circumstances, a business wanting to secure a contract will suggest a product or service to a potential organization in return for funds.

A good example is when an organization tends a proposal to develop an application or renders some training services to its staff.

Just like solicited business proposals, a company must curate a well-researched proposal that will convince prospective clients you’re the right candidate for the job.

Types of Business Plans

Business plans are also categorized into four types, including

• short plans,
• presentation plans,
• working plans,
• and what-if plans.

These types require different degrees of labor and are not always proportional to results.

Presentation Plan

Using PowerPoint to present information about a business has revolutionized the way companies create and showcase their business plans. Many business owners lose sleep trying to figure out how to present a plan that can significantly impact their company’s future.

Therefore, it’s crucial to understand the ins and outs of a business plan presentation in order to effectively communicate your ideas and strategies to potential investors or stakeholders.

Working Plan

This is a plan used to operate your business. The plan can be long in detail but shorter in presentation. There’s no room for informality or candor while preparing it.

If you’re considering presenting this plan to a loan committee, you’ll have to describe a competing rival primarily on a price basis.

A working plan used to create outlines for internal use may have some elements omitted; probably, you’ll not need to add an appendix with a resume of key executives.

Internal policy considerations may guide what to include or exclude in the working plan.

What-If Plan

A business must prepare for unforeseen circumstances. The company may want to have a contingency plan when seeking bank financing.

This plan is usually curated in the worst-case scenario that you can foresee your business surviving. It’s important to shelter yourself from things like loss of market share, the defection of a key member of management, and heavy price competition.

A contingency plan can help cover the fears of bankers and investors by demonstrating that your business has considered more than one rosy circumstance.

Moreover, your business can benefit from a what-if plan in situation acquisition. It can help you outline the worth of the acquisition and how it can affect the core business.

In summary, you can say that a business plan is more of an internal document, whereas a business proposal is an external one that is used to sell the product or service of a company to prospective clients.

In addition, a business plan guides the activities of a company internally in terms of revenue projections and marketing strategies that must be achieved in a particular time frame.

On the other hand, a business proposal will show external parties like a government agency and sponsors what the business is all about to convince them to invest in your business. The proposal should outline how you will carry out a particular project to generate revenue.

Whether trying to curate a business plan or proposal, it has to be compelling and competitive to beat other bidders. 

Why Not Give Prospero A Try?

Working with Prospero to generate professionally written proposals or plans is essentially wise. It has a variety of templates for different industries and comes with a lot of customization options. Some ready-made content are also available so you won’t need to write from scratch every now and then.

You can manage and track the performance of your proposals through its built-in analytics, so your sales team would be more productive and efficient.

It’ll increase your chances of securing contracts and proposals that can take the business to the next level.

Sign up today and create your first proposal!

ABOUT THE AUTHOR

Abbey Claire Dela Cruz

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9 Business Plan Examples to Inspire Your Own (2024)

Need support creating your business plan? Check out these business plan examples for inspiration and guidance.

Any aspiring entrepreneur researching how to start a business will likely be advised to write a business plan. But few resources provide business plan examples to really guide you through writing one of your own.

Here are some real-world and illustrative business plan examples to help you craft your business plan .

Business plan format: 9 examples

The business plan examples in this article follow this template:

• Executive summary
• Company description
• Market analysis
• Products and services
• Marketing plan
• Logistics and operations plan
• Financial plan
• Customer segmentation

1. Executive summary

Your executive summary is a page that gives a high-level overview of the rest of your business plan. While it appears at the beginning, it’s easiest to write this section last, as there are details further in the report you’ll need to include here.

In this free business plan template , the executive summary is four paragraphs and takes a little over half a page. It clearly and efficiently communicates what the business does and what it plans to do, including its business model and target customers.

2. Company description

You might repurpose your company description elsewhere, like on your About page , social media profile pages, or other properties that require a boilerplate description of your small business.

Soap brand ORRIS has a blurb on its About page that could easily be repurposed for the company description section of its business plan.

You can also go more in-depth with your company overview and include the following sections, like in this business plan example for Paw Print Post:

Business structure

This section outlines how you registered your business —as an LLC , sole proprietorship, corporation, or other business type : “Paw Print Post will operate as a sole proprietorship run by the owner, Jane Matthews.”

Nature of the business

“Paw Print Post sells unique, one-of-a-kind digitally printed cards that are customized with a pet’s unique paw prints.”

“Paw Print Post operates primarily in the pet industry and sells goods that could also be categorized as part of the greeting card industry.”

Background information

“Jane Matthews, the founder of Paw Print Post, has a long history in the pet industry and working with animals, and was recently trained as a graphic designer. She’s combining those two loves to capture a niche in the market: unique greeting cards customized with a pet’s paw prints, without needing to resort to the traditional (and messy) options of casting your pet’s prints in plaster or using pet-safe ink to have them stamp their ’signature.’”

Business objectives

“Jane will have Paw Print Post ready to launch at the Big Important Pet Expo in Toronto to get the word out among industry players and consumers alike. After two years in business, Jane aims to drive $150,000 in annual revenue from the sale of Paw Print Post’s signature greeting cards and to have expanded into two new product categories.”

“Jane Matthews is the sole full-time employee of Paw Print Post but hires contractors as needed to support her workflow and fill gaps in her skill set. Notably, Paw Print Post has a standing contract for five hours a week of virtual assistant support with Virtual Assistants Pro.”

Your mission statement may also make an appearance here. Passionfruit shares its mission statement on its company website, and it would also work well in its example business plan.

3. Market analysis

The market analysis consists of research about supply and demand , your target demographics, industry trends, and the competitive landscape. You might run a SWOT analysis and include that in your business plan. 

Here’s an example SWOT analysis for an online tailored-shirt business:

You’ll also want to do a competitive analysis as part of the market research component of your business plan. This will tell you which businesses you’re up against and give you ideas on how to differentiate your brand. A broad competitive analysis might include:

• Target customers
• Unique value proposition , or what sets the products apart
• Sales pitch
• Price points for products
• Shipping policy

4. Products and services

This section of your business plan describes your offerings—which products and services do you sell to your customers? Here’s an example for Paw Print Post that explains its line of custom greeting cards, along with details on what makes its products unique.

5. Marketing plan

It’s always a good idea to develop a marketing plan before you launch your business. Your marketing plan shows how you’ll get the word out about your business, and it’s an essential component of your business plan as well.

The Paw Print Post focuses on four Ps: price, product, promotion, and place. However, you can take a different approach with your marketing plan. Maybe you can pull from your existing marketing strategy , or maybe you break it down by the different marketing channels. Whatever approach you take, your marketing plan should describe how you intend to promote your business and offerings to potential customers.

6. Logistics and operations plan

The Paw Print Post example considered suppliers, production, facilities, equipment, shipping and fulfillment, and inventory. This includes any raw materials needed to produce the products.

7. Financial plan

The financial plan provides a breakdown of sales, revenue, profit, expenses, and other relevant financial metrics related to funding and profiting from your business.

Ecommerce brand Nature’s Candy’s financial plan breaks down predicted revenue, expenses, and net profit in graphs.

It then dives deeper into the financials to include:

• Funding needs
• Projected profit-and-loss statement
• Projected balance sheet
• Projected cash-flow statement

You can use a financial plan spreadsheet to build your own financial statements, including income statement, balance sheet, and cash-flow statement.

8. Customer segmentation

Customer segmentation means dividing your target market into groups based on specific characteristics. These characteristics can be demographics, psychographics, behavior, or geography. Your business plan will provide detailed information on each segment, like its size and growth potential, so you can show why they are valuable to your business. 

Airsign , an eco-friendly vacuum cleaner company, faced the challenge of building a sustainable business model in the competitive home appliance market. They identified three key customer personas to target:

• Design-oriented urban dwellers
• Millennials moving to suburbs
• Older consumers seeking high-quality appliances

The company utilized Shopify’s customer segmentation tools to gain insights and take action to target them. Airsign created targeted segments for specific marketing initiatives.

Put your customer data to work with Shopify’s customer segmentation

Shopify’s built-in segmentation tools help you discover insights about your customers, build segments as targeted as your marketing plans with filters based on your customers’ demographic and behavioral data, and drive sales with timely and personalized emails.

9. Appendix

The appendix provides in-depth data, research, or documentation that supports the claims and projections made in the main business plan. It includes things like market research, finance, résumés, product specs, and legal documents. 

Readers can access detailed info in the appendix, but the main plan stays focused and easy to read. Here’s an example from a fictional clothing brand called Bloom:

Appendix: Bloom Business Plan

Types of business plans, and what to include for each

This lean business plan is meant to be high level and easy to understand at a glance. You’ll want to include all of the same sections in one-page business plan, but make sure they’re truncated and summarized:

• Executive summary: truncated
• Market analysis: summarized
• Products and services: summarized
• Marketing plan: summarized
• Logistics and operations plan: summarized
• Financials: summarized

A startup business plan is for a new business. Typically, these plans are developed and shared to secure funding . As such, there’s a bigger focus on the financials, as well as on other sections that determine viability of your business idea—market research, for example:

• Market analysis: in-depth
• Financials: in-depth

Your internal business plan is meant to keep your team on the same page and aligned toward the same goal:

A strategic, or growth, business plan is a big-picture, long-term look at your business. As such, the forecasts tend to look further into the future, and growth and revenue goals may be higher. Essentially, you want to use all the sections you would in a normal business plan and build upon each:

• Market analysis: comprehensive outlook
• Products and services: for launch and expansion
• Marketing plan: comprehensive outlook
• Logistics and operations plan: comprehensive outlook
• Financials: comprehensive outlook

Feasibility

Your feasibility business plan is sort of a pre-business plan—many refer to it as simply a feasibility study. This plan essentially lays the groundwork and validates that it’s worth the effort to make a full business plan for your idea. As such, it’s mostly centered around research:

Nonprofit business plans are used to attract donors, grants, and partnerships. They focus on what their mission is, how they measure success, and how they get funded. You’ll want to include the following sections in addition to a traditional business plan:

• Organization description
• Need statement
• Programs and services
• Fundraising plan
• Partnerships and collaborations
• Impact measurement

Set yourself up for success as a business owner

Building a good business plan serves as a roadmap you can use for your ecommerce business at launch and as you reach each of your business goals. Business plans create accountability for entrepreneurs and synergy among teams, regardless of your business model .

Kickstart your ecommerce business and set yourself up for success with an intentional business planning process—and with the sample business plans above to guide your own path.

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Business plan examples FAQ

How do i write a simple business plan.

To write a simple business plan, begin with an executive summary that outlines your business and your plans. Follow this with sections detailing your company description, market analysis, organization and management structure, product or service, marketing and sales strategy, and financial projections. Each section should be concise and clearly illustrate your strategies and goals.

What is the best format to write a business plan?

The best business plan format presents your plan in a clear, organized manner, making it easier for potential investors to understand your business model and goals. Always begin with the executive summary and end with financial information or appendices for any additional data.

What are the 4 key elements of a business plan?

• Executive summary: A concise overview of the company’s mission, goals, target audience, and financial objectives.
• Business description: A description of the company’s purpose, operations, products and services, target markets, and competitive landscape.
• Market analysis: An analysis of the industry, market trends, potential customers, and competitors.
• Financial plan: A detailed description of the company’s financial forecasts and strategies.

What are the 3 main points of a business plan?

• Concept: Your concept should explain the purpose of your business and provide an overall summary of what you intend to accomplish.
• Contents: Your content should include details about the products and services you provide, your target market, and your competition.
• Cash flow: Your cash flow section should include information about your expected cash inflows and outflows, such as capital investments, operating costs, and revenue projections.

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How to Write a Business Proposal in 7 Steps

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Whether you’re a B2B or a B2C company, you’re in the business of convincing customers to choose to spend their money with your business. For a B2B company that process usually involves a business proposal. In the B2B industry, once you've attracted new customers, which are most likely other businesses, you have to actually make a deal. Unlike B2C companies, who use marketing strategies and then hope their customers respond and purchase their product and service, there's a little more involved in this exchange. That's where your business proposal will come into the picture.

Luckily, even though your process and the exact format for your business proposal can be unique to your company, there is also a general formula you can follow to make things easier, especially the first few times you write a proposal.

In this guide, we'll walk you through the general steps of how to write a business proposal—including how to decide what kind of proposal you're writing, how you should organize it, and what information you should include.

How to write a b usiness proposal: 7 essential steps to follow

With these starting points in mind, let's get down to the process. Whether you’re just learning how to write a business proposal, or want to change up the one you’ve already been using, you’ll want to break down writing into a step-by-step approach. The organization is key when you’re writing a business proposal—structure will not only help you answer the core questions mentioned above, but it’ll also help you create consistent, successful proposals every time you’re pitching new business.

This being said, when writing a business proposal, you can break down the document into these sections:

Introduction

Table of contents

Executive summary

Project details

Deliverables and milestones

Bonus: Appendix (if necessary)

Step 1: Introduction

The introduction to your business proposal should provide your client with a succinct overview of what your company does (similar to the company overview in your business plan). It should also include what sets your company apart from its peers, and why it’s particularly well-suited to be the selected vendor to undertake a job—whether the assignment is a singular arrangement or an ongoing relationship.

The most effective business proposal introductions accomplish more with less: It’s important to be comprehensive without being overly wordy. You'll want to resist the temptation to share every detail about your company’s history and lines of business, and don’t feel the need to outline every detail of your proposal. You'll want to keep the introduction section to one page or shorter.

Step 2: Table of contents

Once you've introduced your business and why you're the right fit for the client you're submitting the proposal to (a quasi-cover letter), you'll want to next create a table of contents. Like any typical table of contents, this section will simply outline what the client can expect to find in the remainder of the proposal. You'll include all of the sections that we'll cover below, simply laid out as we just did above.

If you're sending an electronic proposal, you may want to make the table of contents clickable so the client can easily jump from section to section by clicking the links within the actual table of contents.

Step 3: Executive summary

Next, your business proposal should always include an executive summary that frames out answers to the who, what, where, when, why, and how questions that you’re proposing to the client lead. Here, the client will understand that you understand them.

It's important to note that despite the word "summary," this section shouldn't be a summary of your whole business proposal. Instead, this section should serve as your elevator pitch or value proposition. You'll use the executive summary to make an explicit case for why your company is the best fit for your prospect’s needs. Talk about your strengths, areas of expertise, similar problems you’ve solved, and the advantages you provide over your competitors—all from the lens of how these components could help your would-be client’s business thrive.

Step 4: Project details

When it comes to how to write a business proposal, steps four through six will encompass the main body of your proposal—where your potential client will understand how you’ll address their project and the scope of the work.

Within this body, you'll start by explaining your recommendation, solution, or approach to servicing the client. As you get deeper within your explanation, your main goal will be to convey to the client that you’re bringing something truly custom to the table. Show that you've created this proposal entirely for them based on their needs and any problems they need to solve. At this point, you'll detail your proposed solution, the tactics you’ll undertake to deliver on it, and any other details that relate to your company’s recommended approach.

Step 5: Deliverables and milestones

This section will nest inside the project details section, but it’s an essential step on its own.

Your proposal recipient doesn’t get merely an idea of your plan, of course—they get proposed deliverables. You'll outline your proposed deliverables here with in-depth descriptions of each (that might include quantities or the scope of services, depending on the kind of business you run). You never want to assume a client is on the same page as you with expectations, because if you’re not aligned, they might think you over-promised and under-delivered. Therefore, this is the section where you'll want to go into the most detail.

Along these lines, you can also use this section of the prospective client's proposal to restrict the terms and scope of your services. This can come in handy if you’re concerned that the work you’re outlining could lead to additional projects or responsibilities that you’re not planning to include within your budget.

Moreover, you might also want to consider adding milestones to this section, either alongside deliverables or entirely separately. Milestones can be small, such as delivery dates for a specific package of project components, or when you send over your first draft of a design. Or, you can choose to break out the project into phases. For longer projects, milestones can be a great way to convey your company’s organization and responsibility.

Step 6: Budget

There’s no way around the fact that pricing projects isn’t easy or fun—after all, you need to balance earning what you’re worth and proving value, while also not scaring away a potential client, or getting beaten out by a competitor with a cheaper price. Nevertheless, a budget or pricing section is an integral part of a business proposal, so you'll want to prepare your pricing strategy ahead of time before getting into the weeds of any proposal writing.

This being said, if you fear the fee might seem too high to your potential client, you might decide to break out the individual components of the budget—for example: social media services, $700; web copywriting $1,500—or create a few different tiers of pricing with different services contained in each. The second approach might not work for all types of businesses or proposal requests, but it may be worth considering if you’re worried about your overall fee appearing steep.

With these points in mind, once you've determined how to outline your pricing, you'll list it out (you might even include optional fees or services) and the overall cost for the scope of work you've described.

Step 7: Conclusion

Finally, your conclusion should wrap up your understanding of the project, your proposed solutions, and what kind of work (and costs) are involved. This is your last opportunity to make a compelling case within your business proposal—reiterate what you intend to do, and why it beats your competitors’ ideas.

If you're writing an RFP, again, meaning a potential client has requested this document from you, you might also include a terms and conditions section at this point. This end-on piece would detail the terms of your pricing, schedule, and scope of work that the client would be agreeing to by accepting this proposal.

Bonus step: Appendix (optional)

After the conclusion, you might also decide to include an appendix—where you add any supplemental information that that either doesn’t fit within the main proposal without being disruptive for the reader, or is less than essential to understanding the main components of your proposal. You’ll likely only need an appendix if you have stats, figures, illustrations, or examples of work that you want to share with your potential client. This being said, you might also include contact information, details about your team, and other relevant information in this section.

If you don't have any additional information to include, don't worry—you can end your business proposal with the conclusion section.

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Once we uncover your personalized matches, our team will consult you on the process moving forward.

Business proposal considerations

Before you dive into determining how to write a business proposal that will give you a competitive edge, there are a few important things to keep in mind.

First, you'll want to make sure that you’re accomplishing the right objectives with your proposal. When writing a business proposal, you’re trying to walk a line between both promoting your company and addressing the needs of your would-be client, which can be difficult for any company to do.

This being said, you'll want to remember that a business proposal is different than a business plan, which you likely already wrote for your company when you were starting your business. Your business plan spells out your company's overall growth goals and objectives, but a business proposal speaks directly to a specific could-be client with the purpose of winning their business for your company.

With this in mind, in order to write a business proposal for any potential client, you'll need to establish your internal objectives and how these will contribute to the work you're proposing. To explain, you'll need to consider the following:

What tasks will need to be done for this work?

Who will do each task, and oversee the job at large?

What you’ll charge for the job?

Where will the work be delivered?

When will it be done?

Why are you the best fit for the job the client needs to be accomplished?

How will you achieve results?

Not only are these questions at the heart of clear and concise writing, but you also won't be able to write your business proposal without answers to them. So as you're going through the different pieces of your business proposal, keep in mind the objectives of your business, while also remaining persuasive regarding why the potential client should work with you instead of someone else.

The next important thing you'll need to keep in mind before you start writing a business proposal is what kind of proposal are you writing. Essentially, there are two types of business proposals—solicited proposals where someone requested the proposal from your company—and unsolicited proposals, where you're sending the document to another business unprompted.

In the case of solicited proposals, often called RFPs (short for a request for proposal), it’s likely that this potential client already knows at least a little about your business. With these kinds of business proposals, you'll want to spend less time convincing the client that you're the best small business consultant for the job and more on making your proposal feel custom to their specific brief, project, or problem. On the whole, the less generic your business proposal is, the more likely you are to win the work.

Unsolicited proposals, on the other hand, are much harder to sell.

As you’re writing a business proposal to a company that doesn’t know they may need your services, you’ll want to focus on getting them to understand why your company is specifically unique. You want to show them that you can add significant value to their business that they don’t already have. If there is currently someone performing the function you would like to, the sell will even be more difficult.

Business proposal examples

So, now that we've gone through all of the steps to show you how to write a business proposal, let's discuss some examples. As you go through the writing process, you might find it's helpful to consult external resources to review business proposal samples or templates and see how other businesses have structured these types of documents. Specifically, it might be even more helpful to review business proposal examples that relate to your particular industry—such as marketing, advertising, or finance.

General business proposal sample

If you're looking for a general business proposal example, you might consult BPlan, which offers advice, examples, and templates for the documents that are required to plan and operate a small business. In the BPlan sample, BPlan breaks their example into three overarching parts—a problem statement, a proposed solution, and a pricing estimate. This may be a good place to start if you're writing a business proposal for the first time and need a simple, general example to follow.

For a solicited proposal or RFP, you may want to reference a business proposal example that specifically operates under the assumption that you've been asked for this proposal. In this case, you may check out one of the downloadable RFP templates from Template Lab.

Template Lab offers both Word and PDF versions of their templates—and these business proposal samples will include sections more appropriate for RFPs including terms and conditions, scheduling, and points of contact.

Business proposal template services or software

For the most advanced and plug-and-play type business proposal samples, you may decide to utilize a service like Proposify or PandaDoc. These software services allow you to choose from their library of professionally designed and outlined business proposal examples (which are also usually industry-specific) and customize the template for your business's needs.

It's important to note, however, that although you may be able to sign up for a free trial for these services, most of them will eventually require a paid subscription.

5 best practices for writing a business proposal

Writing a business proposal can seem overwhelming at first, as it requires you to provide information about your company and its services as they relate specifically to what your prospect needs. As you go through the process again and again, however, it will become easier and easier to write a succinct and effective business proposal.

This being said, there are a few best practices you can keep in mind to help you as you get started:

1. Be direct.

Although you might feel the urge to show off your language skills while trying to impress a client, when you’re writing a business proposal, tour best bet to win business is to be clear, concise, and direct. You won't want to use overly flowery language or anything that could possibly be misconstrued.

2. Don’t leave room for ambiguity.

You'll want to make sure your proposal is straightforward and easy to understand, with no room for misinterpretation around what you say you’ll do or deliver.

Therefore, you'll want to avoid overly complicated industry jargon to be sure your client can understand exactly what you're talking about and what it means within the scope of your (and their) business.

3. Write for the right audience.

If you were writing a proposal for a specialty food business, it shouldn't look or sound exactly the same as if you were writing a proposal for an asset management company. You'll always want to keep your audience in mind as your craft and develop your proposal.

Ultimately, your best bet is to be straightforward, clear, and stick to the details, but you also shouldn't be afraid to tailor your writing to your audience so that your client feels that the proposal has truly been created with their business in mind.

This being said, your proposal should show that you not only understand your potential client but that you also respect them professionally.

4. Consider a title page.

Although this may not be necessary for a shorter business proposal, a title page can help with the general organization, flow, and professional feel of your document.

Like a title page for any other type of report, this one-page cover sheet would precede the remainder of your proposal and would likely include your business's name, contact information, and logo, as well as who you're submitting the proposal to.

Depending on your business or the potential client you're submitting the proposal to, you might decide that a title page is unnecessary, however, it's worth keeping in mind that it may be something to visually draw in your reader from the start.

5. Err on the side of brevity.

Finally, within the world of business proposals, shorter is usually better. This isn't to say, of course, that you should leave out details or omit important sections—it simply means that you should try to find the most succinct way to say what you need to say and get your point across to the potential client.

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The bottom line

There's no doubt about it—learning how to write a business proposal is a lot of work. Luckily, however, you can follow our steps so you know what to include in your proposal and how to include it.

Ultimately, selling your services to potential clients is part of running and managing your business and as you do it again and again, it will only become easier.

This being said, as you go through the lifecycle of your business, you'll begin to accumulate a library of business proposals that you can continuously reference and use to develop your pitching strategy and writing process based on proposals that have and have not worked. And, hopefully, by taking the time to invest in this business proposal process, you'll be winning the work you need to grow your business.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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How to Write a Business Proposal [Steps, Tips, & Templates]

You need to send a business proposal, and you want it to close. But how can you improve your chances?

Every year, we analyze the proposals sent with our software to discover what makes closing more likely. We used this research to craft this very guide .

To help you write better business proposals, we’ve curated the essential proposal format, a step-by-step process, plenty of templates to help you get started, and strategies for following up.

From images to esignatures, keep reading for data-backed insights into the most successful proposals.

What’s in this guide:

• What is a business proposal?
• Basic proposal format
• What to prepare before writing a business proposal
• How to write a business proposal in 7 steps
• 8 business proposal templates
• 5 ideas to take your business proposal to the next level
• What to do after you send a business proposal
• Using analytics for business proposal insights

A business proposal is sent by a salesperson or account manager to a prospective client in order to pitch a product or service. A great proposal should include an executive summary or cover letter, details on the project timelines and deliverables, what makes the company the right choice for the job, and pricing and payment details.

Business proposals are typically sent from one business to another for all sorts of different services, such as enterprise software subscriptions, interior design, accounting, marketing, event catering, etc.

The purpose of a business proposal is to:

Sell your product or service with details, client results, testimonials, etc.

Clarify what is and isn’t included in the proposal to accurately manage expectations

Layout terms and conditions to protect both parties

Lock in the deal right away with esignatures built into the proposal

Large corporations and government agencies will typically send out a request for proposal to competing companies and then choose the best (or cheapest) one.

A business proposal is very different from a business plan, because it is typically written to clarify a paid engagement between two companies. This might be a short project or a long contract. A business plan, on the other hand, is typically an internal document crafted to chart a businesses path forward towards goals, such as market expansion, revenue growth, new product lines, etc.

Types of business proposals

There are many different types of business proposals. They are typically broken down by industry.

Here are some common types of business proposals, by industry :

Real estate and construction

Professional services

Proposals can also be categorized based on the type of offering :

One-off projects

Recurring subscription

Ongoing service

Package options

Later on in this guide, we include a variety of proposal templates. Depending on what you selling, you might find it easier to begin with a template designed for your industry or for the type of offer you’re selling (such as a one-off project). So be sure to peruse through the previews of each proposal so that you can see which template will save you the most time.

Business proposal example

An excellent business proposal addresses the client’s pain points and showcases the proposed solution.

Here’s an example business proposal to inspire you. The accounting proposal kicks things off with an attractive cover page.

All in all, it includes the cover page, an executive summary letter, an about us section, team photos and bios, a project summary, a breakdown of the proposed services, a pricing section, onboarding steps, and a contract with esignatures.

The services breakdown offers a great example of how to categorize your services and provide hourly estimates.

After researching over 1 million proposals, we found that winning proposals are most likely to include all of the following.

Here’s the idea proposal structure :

1. Cover page

The cover page, also called a title page, should be kept simple. It prominently features a photograph or graphic design that is on-brand, you can use graphic design templates as a starting point. It also usually includes the project name, or the client name, as well as your company name. Some companies might include contact information on the cover page, while others will save that for a separate page.

Check out this cover page , which is bright, bold, and on-brand.

2. Executive summary

The executive summary is essentially your pitch.

It’s your shot at capturing the client’s attention and showing them that you have an approach that will exceed their expectations.

It’s typically written in paragraph form (1 to 3 paragraphs) but can also include a bulleted list for a more skimmable style.

Make sure that your executive summary includes:

A quick description of the client’s problem or starting point

How your company will serve the client and why you’re suggesting this unique approach

Why your company is the best choice (average results, unique selling propositions, differentiators, awards, etc.)

This content marketing proposal offers an excellent example of an executive summary. Though in this proposal, the section is instead titled “Focus and Objectives.” What makes it great is that it’s on brand, goal-oriented, personable, and skimmable.

3. Approach or solution

In this section, you write about your process and why you approach things the way you do. For example, a Facebook marketing agency might say that they believe that creative work is essential to advertising success, and that’s why they devote 90% of their time to developing videos, images, and copy.

Some companies will craft a custom approach section for each client, while others will re-use the section again and again. It all comes down to the number of services you offer and how much or how little you customize your work.

In corporate training, it’s essential to clarify your approach so the client knows why your system will be effective. In this training template example , their process shows the essential steps in their proprietary approach.

4. About the company

This is your chance to brag. In your company bio, be sure to mention all of the important things that set your company apart. That might include your management style, the talent you have on your team, your average client retention rate or contract length, and any accolades.

With their location, awards, and team structure, this About Us page is an excellent example of how to sell yourself with authority.

5. Deliverables

Use the deliverables section to summarize exactly what the client will receive from the engagement.

A TikTok ads management firm might include 15 ad creatives per month in their deliverables, for example. While an accounting firm might list the reports that will be sent weekly or monthly, along with the bookkeeping service.

In a construction project, on the other hand, the company might showcase the different milestones that the project will hit, and when these milestones are expected to be completed.

In this proposal , the Deliverables section is titled “Scope of Services,” and it includes a list of all of the services that the prospective client will receive. Deliverables are mentioned within the scope, including a logo, brand colors, business cards, and brand guidelines.

6. Social proof or work samples

No matter what you sell, prospective clients will want to know that you have the right experience for the job.

Social proof can come in the form of written testimonials and case studies, video testimonials and case studies, portfolio photographs, G2 and Capterra badges, and rating averages from Google, Trustpilot, or other review sites.

For an architecture firm, construction company, or website designer, work examples can prove more powerful than testimonials. Prospects want to see what you can do. This architecture proposal showcases the company’s work on a rehabilitation project.

The pricing section is of course the one that your clients will read again and again and deliberate over. That’s why it’s so important to make it clear, simple, and well-formatted.

Tables are a great way to showcase what’s included in the total project cost or to provide package options.

Similar to interior design and construction services, event planning typically includes both hourly costs and hard costs (for products and venues). Here’s an example of an event management proposal that includes a breakdown of the hourly work and the hard costs.

8. Terms and conditions

When you use modern proposal software , you can build a contract right into your proposal, eliminating the need for separate contract software.

Your proposal should include legal jargon that can protect both you and your client. You might have a statement of work and a master service agreement or terms and conditions.

In this website design proposal , there are 6 pages in total for the contract section. The potential client can easily click around to view all of these pages and share the proposal with their legal team if needed.

For proposals that are longer than 8 pages, it’s wise to include a table of contents. If you use Proposify as your proposal software, then every proposal will automatically have the table of contents on the left-hand side, making it easier for the potential client to click around and review important sections multiple times.

A lot goes into writing a proposal. Before you can get to the writing part, you need to prepare.

This means talking with the client to figure out their needs, using your experience to pitch the best project, and talking with colleagues who will be involved in the project to see if they agree on the services you plan to propose.

You might also need to talk with your legal department and ask them for a contract template that you can include at the end of the proposal so that when the client signs off, it's legally binding.

Everything you need to prepare to write a business proposal:

An understanding of the client's needs

Your determination of the best approach

Details that will get the client to say yes

Agreement with internal colleagues

The pricing options you want to offer

Knowledge of who needs to sign off

Legal contract language or templates

To be a good writer , you must be concise, specific, and detailed. It really is that simple. The more examples and details you provide, the better.

That said, it does help to follow a process so that you can be sure you’re providing everything that the decision-makers expect and more.

Here are the 7 essential steps for writing a business proposal:

Step 1. Determine the client’s needs

The first step is to figure out what your client needs.

As mentioned in our section on preparation above, you’ll need to speak with your client. If this is a new client, it might take two to five sales calls to collect all of the information you need. For an existing client, you can probably figure out what to include in their renewal proposal with just one call.

But of course, asking your client what they need isn’t enough. You need to use your expertise to choose the best solution for them, even if it’s not what they want or expect.

Step 2. Kick off your proposal with a template

Once you’ve done your due diligence, the next step is to choose a proposal template so you’ll save time on both writing and designing.

You can use a template that matches your specific business or click around to find one with all the sections and a design style you like. Even if it’s not created for your specific industry, it’ll be easy to update the content to match your service or product.

Check out our full library of proposal templates.

Step 3. Write the evergreen messaging about your company

It’s always smart to tackle writing section by section. This way, you don’t get overwhelmed.

We recommend starting with the sections that are relevant to your business and that can be reused again and again. Your value propositions should guide the content.

Tackle these sections:

The cover page

The approach section

The about us page and team bios

The social proof or portfolio pieces

By starting off with what makes your company special, you’ll break the ice during your writing process and also create your own custom template that you can use for further proposal writing.

Step 4. Craft the meat of the proposal (executive summary, approach, deliverables, etc.)

By now, you should have chosen a template and written your core company messaging.

Now it’s time to write the meat of the proposal.

In this step, you’ll be catering your proposal to the new client. A startup will require a different proposal than a small business, and the same goes for an enterprise.

Here are some of the things you might need to write:

The unique methodology or approach you’ll offer this client (if it changes per client)

The problem statement or executive summary

The client’s goals

The scope of work

The project process and timelines

The deliverables

You can fill in your template’s sections and take a peek at other templates to get inspiration and see if there are any additional sections or details you should add.

Step 5. Add in the project total or pricing options

Next, you should calculate your fees.

Depending on your business, you might add up flat rates, product costs, or hourly estimates to come up with a fixed project total. Or, you might present a price range that the project will likely fall between (making it clear that additional hourly costs could arise. Or perhaps, you’ll offer a pricing table with different options to choose from.

Step 6. Add legal terms and conditions and esignatures

When you use proposal software (instead of just a PDF or Google slides), you can add a contract directly to your proposal.

If you already have approved contract language from your legal department, you can simply add it to the contract section of your proposal in Proposify. If not, you’ll need to chat with your legal team or business lawyer to ensure you’re adding all the right stipulations.

Proposals with esignatures close 35% faster and are 426% more likely to be accepted. So be sure to assign an esignature both to yourself and your client.

Step 7. Finalize the design and review all of the content before sending

Now it’s time to review and finalize your proposal. Check for errors, places in the template you forgot to fill out, and wording that can be improved.

Make sure the graphic design is on point too. Switch out the template with your own brand colors and fonts. You can have a designer on your team handle this, or handle style customization yourself (with no design experience necessary).

The best way to write a business proposal? With a template of course.

We’ve rounded up 10 of the best templates for different types of businesses. And for each, we show you the proposal sections included to help you pick the right one for you.

Keep in mind that with any of these proposals, you can add and remove sections and also customize any page with text, headlines, images, videos, fee tables, and more.

1. Business consulting proposal template

This consulting proposal template can be used by any type of consulting firm.

Proposal sections :

Project Summary

Project Activities

Your Investment

2. Advertising Proposal Template

With this advertising proposal template, you can showcase your digital or traditional advertising services. The template includes TV, web, radio, and magazine, but you can update it to reflect your pitch.

Cover Letter

Who Are We?

Testimonials

Your Advertising Media Mix

3. Branding Proposal Template

Perfect for branding consultants, logo designers, and messaging strategists, this branding proposal template includes the project scope and timeline to help you clarify your process to potential clients.

Overview & Goals

Scope of Services

Sample Case Study

4. Commercial Lease Proposal Template

This commercial lease proposal template can be used for leasing office buildings, manufacturing facilities, warehouses, and event spaces.

Our Process

Meet Our Team

Terms and Conditions

5. Construction Bid Template

Use this construction bid template for new construction projects or renovations. It includes a detailed cost estimate table and a required deposit.

Cost Estimate

6. Catering Proposal Template

This catering proposal template is perfect for corporate projects but can work for weddings or personal events as well. You can use it for conferences, luncheons, retreats, or any other type of event.

Introduction

Event Details

7. Corporate Photography Proposal Template

With a beautifully designed portfolio section and a very detailed pricing table and print options, this is the perfect template for corporate photography . It also includes tips for success, so clients know how to make the most of their photoshoot time.

What We Offer

Photography Packages

Tips for Success

8. Financial Services Proposal Template

You can use this financial services proposal template to pitch financial services like risk management, budgeting, and investment management.

Services and Fees

Looking to kick up your proposals a notch?

Try one of these smart ideas:

1. Make your pricing dynamic

Dynamic pricing means that clients can choose what they want and that will automatically change the project total that they sign off on.

Proposals with options and add-ons have a 35.8% higher closing rate . Try giving package options and including add-ons such as ancillary services or maintenance work.

2. Create graphic designs for timelines and processes

Winning business proposals often include informative visuals to help clients understand your process at a glance.

You could create a graphic for project phases, milestones, or big deliverables.

3. Get creative with your social proof

Client testimonials are an easy starting point when it comes to social proof.

But can you do better? Can you get more creative and stand out from other consulting firms?

Here are some ways to improve your social proof game:

Include visuals for your average ratings (for example 4 and a half stars filled in).

Add any badges or graphics available from review sites like G2 and Trustpilot.

Film professional case study videos and embed them in your proposal.

Create a screenshare video where you talk through your digital portfolio samples.

Include an informal video testimonial from your client.

Add a video showing your team at work (ie, on the job site, running a workshop, speaking, etc.)

Write mini case studies with before and after transformations, result data, etc.

4. Have an “excludes” section

Is there something that is definitely not included in your proposal? Do clients often assume it’s included or do they get confused?

If so, try adding a section that describes everything that isn’t included in the proposal. You could mention that you don’t offer these services, or state that they’re available at an additional fee (if you want to upsell them).

5. Include videos for introductions or complex concepts

When you add a video to your proposal, you increase its chances of closing by 41% .

Here are some video ideas to try:

Informal intros filmed with Loom

Professional videos of your team at work

Case study videos

Quick descriptions of complex deliverables, methodologies, etc.

You sent the proposal. Now what?

Here’s what to do next.

Sign it yourself

Make sure you sign the proposal right away (before your client opens it). This offers a more professional presentation and makes it more likely that your new client will add their signature too.

Be prepared to follow up

Project proposals don’t always close all by themselves. As any good salesperson knows, follow-up is essential.

With Proposify, you can set up automated reminders. When we analyzed over 1 million proposals sent with our software, we found that proposals with pre-scheduled reminders have a 35% higher closing rate than those without.

Make adjustments to the proposal to close the deal

It’s okay to make changes. In fact, proposals that get revised are actually more likely to close than ones that don’t. When a client asks for revisions, it means they’re interested.

You might need to adjust your proposal document for its scope, deliverables, timeframe, or payment schedules.

Save different proposal templates

After you’ve created one proposal, you should save it as a template and give it a name. You might also want to duplicate it and adjust it to create a new proposal template. For example, if you offer SEO services , you might want to have one proposal for an SEO audit and another one for your monthly SEO retainer.

Create email templates

You can also create and store email templates that will save you time in the long run.

Try creating different templates for sending, reminders, and thank yous. If you offer different types of services, you can craft a unique sending template for each one.

Get feedback from clients on both won and lost proposals

One of the best ways to improve is to take feedback. Whether you win or lose the proposal, find out why.

Here are some tips on how to do this:

Won - When you win a proposal, you might ask the client why they decided to move forward with you on their first strategy call. Or, have their account manager ask the same question and pass the info to you.

Lost - If a client doesn’t sign the proposal after 3 weeks, you can send a quick email with something like, “Just looking for some feedback. Can you let me know why you decided not to move forward? Thanks.”

In today’s digital world, a business proposal should be more than a formal document.

When you use the right tool to create and send your proposal, you should be able to gather important insights and trends.

Viewing metrics for a specific client

With Proposify, you can see the activity for every proposal. Know when clients are opening and viewing proposals so you can follow up in a way that matches their activity.

Average viewing metrics

Proposify also offers average viewing metrics that help you benchmark your views:

Total viewed

Average time to view

Average length of viewing

Average views per proposal

This is great for gauging how a new client compares with past activity.

Average closing metrics

You can also check your average closing rate and track it over time.

Check these closing metrics:

Closing rate

Try setting goals for improving your closing rate and then check your progress each month.

Insights by proposal type

Segment viewing and closing metrics by workspace, client name, or stream. A stream is a custom category that you can use for different service types, client industries, etc.

Growth trends

And lastly, you can check your growth trends to find out how much you’re earning in new contracts and existing contracts. This is great for seeing your past revenue growth and for forecasting.

Trends include:

New won proposals (chart)

Active income (chart)

Start with a solid understanding of your client’s goals and needs. Use a template to save time creating messaging and tables that will seal the deal. Then, try advanced techniques like dynamic pricing and videos to improve your closing rates even further.

Sign up for Proposify free for 14 days or get started with one of our templates .

Dayana Mayfield is a B2B SaaS copywriter who believes in the power of content marketing and a good smoothie. She lives in Northern California. Connect with her on LinkedIn here: linkedin.com/in/dayanamayfield/

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Writing a Business Proposal That Wins Deals (+Templates)

Learn how to write a business proposal that stands out, impresses buyers & seals more deals. Learn how to prepare and what to include in your proposal.

5 minute read

helped business professionals at:

Short answer

What to include in a business proposal

• Personal message / Cover letter
• Table of contents
• Executive summary
• Overview of your company and product or service
• Deliverables
• Outcomes, benefits, and ROI (if applicable)
• Social proof
• Case studies
• Terms and conditions
• Agreement (e-signature)

Read on to get practical details for each slide ⤵

What is a business proposal?

A business proposal is a presentation or PDF that details a product, service, or project to a prospective client. It is used near the end of the sales process and covers the prospect’s needs and objectives, and the provider’s solution, pricing, and expected outcomes.

A successful business proposal ends with the prospective client accepting and signing the document.

PDF is traditionally the go-to format for business proposals.

But in recent years, and increasingly with the rise of AI, leading sales teams and professionals are transitioning from static PDFs to interactive proposals that give prospects more freedom for customization , and increase the likelihood they’ll accept and sign the document.

Types of business proposals

Business proposals broadly fall under 3 types:

1) Service provider business proposal

Service proposals cover services given over time such as cleaning, security, gardening, IT, staffing, and management.

Service proposals normally include start and termination dates for the service, rather than timelines and milestones, and focus on deliverables rather than KPIs.

2) Product business proposal

Product business proposals cover a product or solution. It’s commonly used by B2B SaaS companies in high-tech or manufacturers that supply parts or raw materials to other companies.

This type of business proposal can focus on KPIs and ROI in the case of SaaS, or on delivered quantities and qualities in the case of manufacturers.

This is not to be confused with a product proposal given to stakeholders and decision-makers before product development or a product launch.

3) Project business proposal

A business proposal for a project covers a service, a deliverable provided once, and limited in time. This type of proposal is used by providers such as consulting agencies, construction companies, engineering firms, legal firms, and website development companies.

Project business proposals focus on timetables, milestones, and the project’s impact as measured in KPIs and ROI.

These are not to be confused with project proposals made outside the sales context . Such project proposals are used internally (or externally as part of a broader service) to get the buy-in and backing of stakeholders and decision-makers.

This type of project proposal is closer to a project plan than a business proposal.

Solicited vs. unsolicited business proposal

Unsolicited.

These business proposals are used as part of early prospecting to generate leads and MQLs. These are essentially the same as sales prospecting decks .

Solicited informally as part of the sales process

These proposals, sometimes called sales proposals , are used after one or more sales meetings have occurred and only after the prospect has shown interest in buying. This is what most people refer to when saying “business proposal”.

Solicited formally as a response to an RFP (Request for Proposal)

An RFP response is sent only when an RFP is issued for a service or solution you provide. Often the RFP will have particular requirements and a specific structure and format for application.

What does a business proposal look like?

The standard format for a business proposal is PDF. Proposals are often designed to be asthetically pleasing and more inviting than a text-only document.

But in recent years leading sales teams are moving away from PDFs to interactive digital proposals. These new digital formats help them differentiate from the competition, and provide valuable engagement analytics, support engagement, and increase close rates.

Here’s an interactive proposal example by Storydoc:

How to write a business proposal slide by slide

To compose a highly effective business proposal you’ll need to differentiate your value proposition, address key selling points, manage expectations, and involve all critical stakeholders.

By the end of this guide, you’ll know how to make world-leading business proposals, surpass your competitors in every way, and get more deals over the finish line.

This guide is a broad guide. However, different industries require different proposals with different focuses and different slides. And so, below you’ll find links to our specialized proposal writing guides for whichever your niche or use case may be.

Proposal writing guides for specific use cases:

TIP: Write your proposal quickly. Writing effective business proposals quickly is essential for closing deals. Proposals don’t have to be perfect, but they need to be timely to keep the prospect engaged and avoid ghosting.

The title slide is like a shop window. It’s your prospect’s expectations for what’s inside. It should be visually appealing, but that’s not enough.

To get a headstart over your competitors with your proposal title slide it needs to capture the essence of your value proposition, establish relevancy, and create intrigue.

Easier said than done. But definitely doable.

How to make a business proposal title slide that sets you apart?

To nail your cover slide, and stand out from other proposals competing for their business do the following:

• Include a short version of your unique sales proposition in the title and tagline.
• Include the prospective client’s company name and other information specific to them in the title or tagline.
• Include their company logo beside yours.
• Include the sender’s and the recipient's names.
• Include relevant imagery
• Include the expected reading time (to set their effort expectations)
• Include some form of motion, like animation or video to grab attention (but don’t make it too distracting).

2) Personal note or Cover letter

A personal note or cover letter is an introduction that eases the reader into the proposal. It establishes the basic context needed to start reading.

Your cover letter should be kept conversational and short. Don’t make it too cold and formal, and don’t make it a form of an executive summary, just make the connection to past meetings, voiced expectations, and people involved.

TIP: It’s good practice to put a face to the note, to make it warmer and personal (like in the example below).

3) Table of contents

It’s important to add a table of contents to your proposal for 3 reasons:

• It manages the prospect’s expectations and lets them quickly see if everything they expect is in the doc.
• It helps the prospect assess the effort it would take to review the proposal.
• It allows prospects and decision-makers to access deep content easily and quickly, in their first or subsequent reviews.

TIP: Adding jump-links will provide you with click data on which slides prospects found most important. With this info, you could follow up with them knowing exactly what issues to address.

4) Executive summary

An executive summary in a business proposal should be kept very short and easy to scan using bullet points, ordered lists, short texts, and preferably a video (if you’re using interactive proposal formats).

It is NOT a long and text-heavy intro like you find in reports or research papers.

What to include in a business proposal executive summary?

• Your company and expertise
• Key selling points (the client’s imminent needs)
• The impact of your product or service
• What you intend to do and provide (game plan outline)

TIP: Using a slide template like in the example below you could embed a video about your business, product, service, and expertise, and reduce the text needed to deliver your message.

5) Challenges

The challenges slide, sometimes called the problem slide , is a short yet ultra-specific description of the problem or challenges that plague your prospect and that your solution aims to solve.

Since your prospect knows their own pains, there is no need to explain them in length. Simply describe their pain points in titles using their own words from past meetings and correspondence.

In the example below we used a simple “card” format to list the main challenge.

6) Objectives

The objectives slide lists the desired outcomes gained from procuring your service or product. This is essentially the mirror image of the client’s challenges.

Use the prospect’s own words to articulate their objectives, same as I advised for describing their challenges. This would make them more relatable and compelling.

7) Product or service overview

Your service or product overview slide should explain what your solution doe s, a bit about how it does it, and what makes it uniquely valuable.

Make an effort to focus your overview on how your solution addresses the client’s main problem , important features or deliverables, and especially the impact it brings.

This slide is best done with a mix of video and text, where the video gives a broad overview and the text is tailored to the specific prospect and their concerns.

How to create an effective business proposal solution slide?

Ensure your value proposition clearly solves the client's business challenge.

• Highlight unique aspects of your solution that address the client's specific needs.
• Address any potential gaps in your products and services proactively.
• List potential risks and discuss them with the client before they become issues.
• Develop contingency plans for each identified risk and demonstrate your preparedness.
• Incorporate visual aids to enhance understanding and retention. Support your text with interactive graphs and charts , videos, infographics, annotations, and images.
• Cater to different learning styles by using multimedia content, like video, scrollytelling , and data visualization .
• There is no one way to make this slide. Depending on the level of complexity and the number of challenges you want to address you can use tabs, cards, a list of items, or a narrator slide .

8) Deliverables

The deliverables slide includes services beyond and around the main solution, like onboarding, training, integration, design, customer support, dashboards, documentation, audits, hardware supplied, etc.

How to make and present a business proposal solution slide?

When creating this slide:

• Provide a brief list of the specific services you will provide.
• Explain how these services will be delivered (step-by-step).

This will remove uncertainty and unwanted surprises. It will give the client the confidence to move forward and help you justify pricing.

When presenting this slide:

• Discuss the timeline with the client during the proposal presentation to ensure alignment.
• Explain how communication will be handled.

This will help to align the client’s expectations for response times and meeting schedules with what you are willing to do.

Importantly, be cautious about offering too much access using direct messaging to avoid constant interruptions.

9) Outcomes, benefits, and ROI

This slide includes the outcomes the client is expected to get by procuring your product or service. The most compelling outcomes are measurable impacts on the client’s KPIs or support them directly.

Measurable outcomes demonstrate your accountability, which builds the client’s trust in your ability to deliver.

How to make a business proposal outcomes slide?

• Clearly define how success will be measured using specific KPIs.
• Agree on these KPIs during the initial conversation with the prospect.
• Ensure KPIs are easy to understand and directly tied to the proposal objectives.

10) The team

The team slide puts faces to the service you provide. This slide introduces the specific team within the company that will take care of the client and work with them closely to achieve their objectives.

People trust and appreciate the individuals they collaborate with more than a faceless organization. This gives the prospect a sense of connection which could reduce their focus on price.

How to create a business proposal team slide?

• Include a quality image of 2-4 key team members with a friendly expression.
• Assign each team member a short professional description with their job title, responsibilities, and past success.
• Connect each team member to their LinkedIn profile to allow the prospect to learn more.

11) Social Proof

Social proof is a standard for almost any type of persuasive document. A social proof slide can include video testimonials, client review quotes, client logos, trust badges, and awards.

Limit yourself to the minimum needed to show trustworthiness, authority, and capability.

Make sure your social proof closely resembles your prospect’s challenges, niche, and circumstances. The more your prospects recognize themselves in your quotes and testimonials the more persuasive it will be.

12) Case study

Case studies, sometimes called customer success stories , serve as proof of your competence and capability to deliver on what you promise.

Most prospects will want to want to see proof of past success with a client like them, with the same needs and challenges.

The example slide template below has a snapshot of the case study in text and a testimonial video (placeholder). You can cater to prospects who prefer to read as well as those who prefer to listen.

How to make a case study slide?

• Include 1 -3 links to your most relevant case studies.
• Assign a short teaser text for each case study to help the reader quickly understand what each case study is about.

Use your best-known logos, but not at the expense of relevancy.

Use tabs to minimize the space needed to present the case studies

13) Pricing

The pricing slide can either show your pricing plan options , in case of a SaaS product business proposal or show the breakdown of the services and deliverables provided , in case of a service proposal.

Both options allow the client visibility into the investments and their corresponding impact. But it also gives them control over the deal at a more granular level.

This minimizes frustration over unexpected costs or missing deliverables they expected to get which were not included in the deal.

How to build an effective business proposal pricing slide?

• Present the prices along with their potential ROI and non-monetary benefits.
• Emphasize the value and outcomes to shift the client’s focus from cost to investment.
• Allow the prospect to actively select the plan they want or check each individual service they require to give them a sense of control and ownership over their decision.

14) Terms and conditions

This section is a binding legal document that lists the terms of the agreement and the compensation each side should receive.

This is for your legal team to determine.

Things to ensure in your terms and conditions:

• Include a summary of the engagement duration and termination terms.
• Clearly state the compensation details and payment schedule.
• Break down payments into phases and ensure you get paid before starting work, even if it’s a partial deposit.

15) Agreement and e-signature

This is the part all your efforts have been leading up to. All you need is the beautiful signature in the box that seals the deal.

Don’t use a static PDF as your business proposal format if you can avoid it, since it makes this part more difficult and may trip you at the finish line.

Use modern digital proposal software that allows you to embed an e-signature box right in your proposal. And better yet, software that syncs with your CRM and automatically updates the lead status.

16) Next steps

The next steps slide is where you tell your client what will be the next immediate mutual action items after accepting the deal.

The plan for moving forward should be clear, concrete, and involve specific people.

How to create an effective next steps slide?

• Schedule follow-up meetings or calls to discuss the proposal further.
• Help the client visualize the process to reduce friction in their decision-making.
• Embed your live calendar app in the proposal to make it super easy for the prospect to book the next meeting with you.

17) Contact

Provide your contact information so your contact or any decision maker within the client’s organization can communicate with you to ask questions, get more information, or update you on progress.

Business proposal templates that get the deal

To help you speed up your proposal writing I brought you some of our best business proposal templates .

These interactive templates are easily customizable and completely reusable.

They were built and optimized based on what we’ve constantly seen work best for Storydoc clients.

Stroydoc can be integrated with your CRM so these templates can be automatically personalized and sent to the prospect from your sales platform with a click.

Before writing your proposal: how to prepare

1) Collect the critical information to customize your proposal to the client’s specific needs and circumstances. But don’t stop there - seek their feedback to refine the proposal (don’t assume you got it right in the first draft).

2) Make sure you understand the prospect’s decision-making process and criteria. Ask the prospect and try to identify all key stakeholders, decision-makers, and other obstacles involved in the process.

3) Get the client's expectations for the next steps and timelines . Discuss expected timelines with prospects and clarify the steps that will occur after accepting the proposal.

4) Get verbal agreement from the prospect before writing your proposal.

This bit is critical! Only write your proposal after discussing the main points of a possible deal with the prospect and getting their agreement. This will avoid nasty surprises and misunderstandings.

After writing your proposal: presenting to the client

Writing your business proposal is the hard part. But you have to present it effectively to finish the job.

DO NOT SEND YOUR PROPOSAL BY MAIL.

When you send your proposal over email you lose control over the conversation. So always schedule a call to walk the client through the proposal instead of emailing it.

Doing a live walkthrough with the client lets you handle objections, clarify details, and address concerns in real-time.

This is critical for avoiding confusion, doubts, or clients focusing solely on the price.

After presenting your proposal you can send it by email for further review by other decision makers.

NOTE: Do your best to prevent your prospects from printing out your proposal. A 2020 study found that once someone prints your proposal, your chances of landing the deal shrink by 84%!

Another benefit of using digital proposals is that you get engagement analytics that gives you visibility into who inside the client’s organization read the proposal, how long, which slides they focused on, and who they shared it with.

After presenting your proposal

• Plan your negotiation strategy - determine your best and worst-case scenarios for negotiations. Decide on your objectives and what you're willing to compromise on.
• Maintain your influence with follow-up interactions - Schedule a follow-up meeting immediately after presenting the proposal to discuss the proposal and next steps. Also regularly share knowledge and insights to keep the client engaged post-proposal.
• Prepare to handle client queries and requests - Clear proposals lead to more specific questions from prospects. Be ready to provide additional information if requested by the client.

As the Head of Marketing, I lead Storydoc’s amazing content-ops team in our fight to eradicate Death-by-PowerPoint wherever it resides. My mission is to enable decision-making by removing the affliction of bad content from the inboxes of businesses and individuals worldwide.

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How to Write a Business Proposal in 2024 (+ Templates)

Written by: Unenabasi Ekeruke

When it comes to landing new customers, securing partnerships and funding and closing more deals, a well-crafted business proposal can be your silver bullet.

It's no longer enough to offer quality products and services. You need a compelling business proposal that makes a solid case for your product, attracts clients' attention and sways purchase decisions in your favor.

But how do you write a proposal that wins the hearts and minds of your potential client? What information and tools do you need? What should be in a business proposal?

This article has everything you need to know about writing a business proposal. We’ve included valuable tips and ready-made templates to help you get started.

Here’s a short selection of 8 easy-to-edit job proposal templates you can edit, share and download with Visme. View more templates below:

Let's get to it.

Table of Contents

What is a business proposal, business proposal vs. business plan, types of business proposals, how to create a business proposal that wins clients (step-by-step).

• 28 Business Proposal Templates You Can Customize Now
• Tips for Writing Winning Business Proposal

Business Proposal FAQs

Create winning business proposals that close more deals.

A business proposal is a document sent to prospects persuading them to buy your products or services.  It is mostly used by marketers, businesspeople and B2B and B2C companies to secure contracts and convince potential clients, investors, partners, or stakeholders to invest in or support a business idea.

You can send a business proposal in response to a client's request. Better yet, you can share it as a proposed solution to attract your client's attention.

Often, business proposals precede any business agreement and include details such as:

• What your business does (products, services) and the value you bring to the client
• When you can start and finish (timeframe and milestones)
• What the client stands to gain from the business relationship (expected results)
• Why you're the right person to do the job
• Or why the client should choose you to deliver that service (value proposition)

Take a look at these 20 proposal examples to get an idea of what yours can look like. Also, join Mike on this video from our YouTube channel to learn more about proposal design tips and templates. Don’t forget to subscribe and get notified of new videos.

The common myth is that business proposals and business plans are interchangeable. The thing is, both tools are important for growing your business. Yet, they play different roles.

Business proposals help you pitch your product and service to prospective customers. On the flip side, business plans lay a roadmap for your business and help attract investors and partners. They differ from each other by purpose, content and structure.

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• Transform your visual content with Visme’s easy-to-use content creation platform
• Produce beautiful, effective marketing content quickly even without an extensive design skillset
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There are generally two main categories of business proposals: unsolicited and solicited.

Formally Solicited Business Proposal

Solicited business proposals are sent in response to a client's request for a proposal. It may be a request for proposal (RFP), request for information (RFI) or request for quotation (RFQ).

The request outlines the clients' needs and expectations and the evaluation criteria used to select the vendors or service providers.

A solicited business proposal is usually an easier sell for marketers. That’s because the client is already sold on making the purchase or using the service. At this point, the customer is evaluating potential vendors or service providers to get the best value or deal.

Informally Solicited Business Proposal

This type of business proposal emanates from informal meetings and verbal discussions with clients. Since there's no formal or official request for a proposal from the client, you may have little information to work with.

Nevertheless, you'd have to thoroughly research the organization's unique needs to win the client over.

Unsolicited Business Proposals

These are proposals sent to prospects who haven't requested one. It’s more about pitching your business when they haven’t requested a proposal.

An excellent example of this proposal type is a cold email , sales brochure or marketing flyer . This type of marketing content is often generic. And even though it introduces your solution, it may not align with the client's unique requirements.

Here’s how to make prospects pay attention to your unsolicited business proposal:

• Research your potential customers and the markets they operate in
• Identify their pain points
• Propose a customized solution tailored to your customer's needs
• Personalize your proposal's content and make it persuasive

A winning business proposal should include these key elements

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Your title page is the first thing your client will see when they open your proposal. Aim to make it appealing, professional and engaging as it sets the tone for further engagement.

The title page should contain the following information:

• The proposal title
• Your name, company name, logo and date
• The prospect's business name

The title page below gives prospective customers a sneak peek into what the proposal is about. Aim to make it aesthetically appealing, as it helps you leave a strong first impression.

Proposals typically contain a lot of information. So, adding a table of contents helps you achieve these three things:

• Gives your prospects an insight into what you'll cover in the proposal
• Lays out the page numbers where readers can find each page, section and subsection
• Makes it super easy for readers to navigate your document

If you're going to send your proposal online, make your table of contents clickable. This will enable your audience to jump to the different sections with a single click.

This business proposal example shows how to craft a table of contents with a beautiful and interactive layout.

Executive Summary

The executive summary is the ticket to getting a prospect interested in your proposal. Why's that? Clients receive lots of proposals and may not have time to read the entire content.,

Hence, writing a stellar executive summary can hook them in and nudge them to read on.

It's a summary of the entire business proposal. And you'll typically find it in sales enablement content and other business documents like reports , sales and marketing plans , surveys and more.

At a glance, your readers should get a bird's eye view of:

• Your company's goals, mission and vision
• Proposed solution and value proposition
• How your project impacts their organization
• Expected outcomes
• Cost implications and more

This business proposal template below has a brief executive summary. It highlights what the company does, the proposed services, costs and timeline.

Company Background

The company background is a key aspect of the business proposal introduction. This is where you provide detailed information about your company. You should discuss your company's history, vision, mission and key staff here.

Be sure to include pictures and profiles of the executives and key personnel with experience related to your proposal. Showcase milestones, awards and industry recognition to build credibility and boost prospects' confidence in your company.

Notice how the template below offers elaborate information about the company.

Problem Statement

This section should outline your prospect's needs, problems and pain points. To drive a client's interest or develop a sense of urgency, explain the issues your client is facing and how they impact their business.

Writing a compelling problem statement does these three things:

• It shows that you have a deeper understanding of their unique needs
• Highlights your technical knowledge, experience and ability to help address them
• It allows you to point out a problem your prospect may not have been aware of

But how do you identify your client's needs? The simple answer is, that you have to do your homework. Research your client's business and study other companies in their niche and industry trends.

Proposed Solution

Your business proposal aims to help the prospect solve their problems. Hence, this section should address how you intend to achieve that.

Let your clients know the strategy and methods you'll use, why you chose that approach, deliverables and expected outcome.

Avoid making your proposed solution sound generic. Instead, customize it to your client's needs. Above all, paint a mental picture of how their business will turn out after implementing your solution.

Scope of Work

At this point, you should translate your proposed solution into an action plan. Start by elaborating on the areas you'll cover during the project execution.

Check that the scope of work is relevant to the potential client's statement of needs or problems. You should also try to avoid or translate industry jargon that the reader may not understand.

Timeline and Milestones

This section should include an estimated timeline of when the project will start and finish and how long it will take. We recommend presenting the project schedule, milestones, timeline and deliverables in a visually appealing way.

Check out the business proposal template below to get creative inspiration.

Qualification

This page should convince prospects that you're the best person or company for the job. Talk about your capabilities, experience, expertise and your team's qualifications. Also, reiterate why they should trust you to deliver.

Your job is to dispel any iota of doubt and boost the client's trust in your brand. You can include social proof like testimonials , reviews, case studies and client success stories. Also, mention relevant credentials, recognition or awards to demonstrate your authority.

Feel free to include a portfolio of the work you've done before or a list of clients you've served.

Pricing, Estimates and Billing

This section should outline your pricing, payment schedule and payment terms. Be sure to display the line items, the incremental cost and the total fee. You can also include a price per unit rate or a fixed monthly or hourly rate.

We recommend providing clients with options or breaking your fee into project stages or milestones. That way, the client knows his options and what he's paying for.

Not sure how to achieve this? Use an interactive pricing comparison table that automatically adjusts when the client selects the preferred product, service or plan.

Use this section to indicate when you'll require payment upfront, before or after each milestone or after project completion. Also, specify whether any portion of the payment is refundable in the event of an unforeseen event.

Look at how the business proposal template below elaborates on the budget and pricing information.

Thank the reader for considering your business. Next, summarize your proposal in this section and get the client in the mood to hire your company or purchase your solution.

Highlight the key points of your business proposal. Plus, reiterate your value proposition and why the client should choose you.

Mention that you're available for further discussion on your proposal. Add phone numbers, email and office address to enable your prospects to reach you.

Terms and Conditions

This is where you outline every legal aspect of the proposed business relationship. This part has to be as clear as possible to avoid disputes or legal issues.

If you're unsure what to include in your proposal, check with your lawyer or legal team. They'll highlight the legalities, confidentiality agreements and elements of a working contract.

The template below is an excellent example of how to outline your terms and conditions.

Include a small section at the end of your proposal where both parties (you and the client) can sign off if they agree to the terms of your proposal. You can include your contact details here and prompt the client to contact you if they have any questions or concerns.

The appendix section is perfect if you have visuals, tables or other content you've cited in your content. For instance, let's say you mentioned products, materials and other tangible items you plan to use during the project. In that case, you can include the product catalog in the appendix section.

28 Business Proposal Templates to Impress Clients

With Visme's wide range of proposal templates and easy-to-use editor, creating a professional business proposal is a breeze.

Hear what one of our customers has to say about Visme:

“Visme is something that I would highly recommend. It made us look a lot better in our clients’ eyes because it's something that's visually effective as a marketing tool.”

"With Visme, instead of days, a page would take us anywhere from 4-8 hours on a duplicate or templated process and even up to 72 hours for projects with unique needs and with immense input and back and forth on the design process.”

Brad Wills, Sourcing Executive at IBM's Recruitment Processing Outsourcing (RPO)! Read the full case study .

Check out these 28 business proposal examples professionally designed for almost every kind of business.

Service Proposal Templates

Product proposal templates, partnership proposal templates, investment proposal templates, consulting proposal templates, project proposal templates, bid proposal templates, 1. it service one-pager proposal template.

Looking for a quick and concise way to communicate the value and specifics of your IT service offering to potential clients or stakeholders? This service proposal template is your sure bet.

The minimalist design gives the plan a modern look and creates a powerful visual impact. Leverage the space to detail your executive summary , description of services, scope of work and lots more.

And if you’re tight on time, you can rely on Visme's AI document generator for instant proposal creation. Simply input your prompt, provide context, choose your preferred design and witness the tool swiftly generate your initial draft within seconds.

Check out how the AI document generator tool works here.

2. Marketing Agency Proposal Template

This comprehensive template is your ultimate tool to pitch your marketing agency's services and secure deals effortlessly.

Its sleek design, captivating visuals and icons ensure an attractive presentation. You can easily spotlight the problems you’ll address, solutions, project roadmap, services, the team, client testimonials and more.

Your brand identity conveys professionalism and makes your proposal more memorable to potential clients. To showcase your brand identity, ensure your proposal is branded using Visme's brand wizard . Simply input your web URL to automatically incorporate design elements from your website and access personalized, branded templates.

3. Clinical Laboratory Services

This template offers a framework to showcase your clinical services expertise and present your unique value proposition with clarity. The template offers dedicated sections for services, product breakdowns, certifications, locations and more.

Against a white backdrop, various shades of blue harmoniously blend to symbolize the beauty of healthcare and increase your proposal’s aesthetic appeal. The template also features captivating visuals, icons and an engaging layout.

Convert your product proposal into an engaging page-turner using Visme's flipbook effect . This allows your audience to virtually flip through pages, mimicking a real document experience.

4. Online Grocery Delivery Proposal Template

Seeking investment or partnerships for your groundbreaking online grocery delivery service? This online delivery service proposal template is your silver bullet.

The striking blend of lemon, blue and white gives it a great visual appeal. Each page also boasts engaging culinary visuals, icons and a refined layout that complements the content.

With detailed market analysis, innovative strategies and detailed financial projections, this template helps you present a compelling case. The best part is that the template design is fully customizable to suit any product or brand.

With our interactive features like hover effects or clickable pop-ups, you can provide more information, such as technical details or testimonials, without overwhelming the reader.

5. Consumer Product One Pager Proposal

Utilize this concise yet impactful one pager proposal to secure funding for your consumer product venture. This template allows you to distill your product's essence, market potential and competitive edge into a compelling one-page format.

It features captivating visuals, icons and harmonious color combinations, delivering a compelling presentation.

Personalize the template with your text, images, brand elements and more. You can streamline editing using Visme's dynamic fields , which eliminate the need to manually enter key information when customizing it for other clients.

Just create custom fields like company name, address, contact details and other information and automatically fill in the relevant fields with a single click.

6. Mobile Game Development Proposal Template

Looking for a way to capture potential clients' attention and secure software development projects? Start with this mobile game development proposal template. Its vibrant purple, orange and white scheme, complemented by compelling visuals and bold icons ensures your proposal stands out.

The template features sections to emphasize critical elements like introductions, overviews, goals, why to choose your services, action plans and more.

You can add more pages and customize the visuals, icons and layout to suit your brand’s needs.

7. 3D Modeling Software Proposal Template

Make a bold impression on your prospective software clients with this innovative proposal template.

The proposal boasts a captivating cover page, vibrant colors and stunning 3D visuals. It's structured with sections covering company overview, problem analysis, proposed solutions, delivery timelines and more.

Struggling with what to write in different sections? Leverage Visme’s AI writer for your initial draft. Simply provide instructions and the tool will generate well-written content matching your desired style and tone. Additionally, you can use this AI to refine, summarize, or edit your content effortlessly.

8. Jet Skis Proposal Template

Present your physical products to potential clients or investors effortlessly with this stylish proposal template.

This template comes with high-resolution stock photos, appealing vector icons and data widgets. It includes sections highlighting the advantages of your service, an overview of available models, pricing options and testimonials from satisfied customers.

Although this template was designed for water sports products, it can be customized for any brand or product.

If you want to change the visuals, explore Visme's extensive library of premium stock photos to find what suits your needs.

Learn more about how to create a product proposal in this complete guide .

9. Finance Consultancy Partnership Proposal Template

If you’re in search of a finance consultancy partnership proposal template that's straightforward and professional, then this proposal fits the bill. It features a clean, authoritative design using a white and green color palette.

All sections are neatly organized to present your firm's background, partnership model, client benefits, partner responsibilities and more. Leverage Visme analytics to track how your proposal is performing. You can easily monitor engagement metrics such as unique visits, average viewing time, duration, IP addresses and other analytics.

10. Lifestyle Brand Collaboration Proposal

Create impactful collaborations to elevate your lifestyle brand with this exquisite proposal. Its vibrant colors, dynamic layout and striking visuals make it iconic. The template provides a clear structure to showcase your brand's mission, project scope, responsibilities, terms and more.

Utilize Visme's intuitive editor to effortlessly customize colors, fonts and other elements of this template to fit your brand identity.

11. Payment App Brand Collaboration

Attract potential partners to your software brand using this well-structured collaboration proposal template. Each page employs a logical hierarchy in typefaces, fonts and elements to ensure an engaging reading experience.

You can highlight crucial aspects such as project objectives, payment app features, statistics and more with meticulous detail.

Visme’s data visualization tool will provide a clear and detailed presentation of statistics and figures in this proposal. You can access an extensive array of charts, graphs, maps, widgets and more from Visme’s library.

12. Non-profit Brand Collaboration

If you’re eager to team up with impactful organizations and expand your brand's reach while making a difference, this template is your blueprint.

With a sleek and modern design, a soothing color palette and exciting visuals, it’s sure to attract the reader's attention.

This template encompasses all essential sections to showcase your offerings, including a summary, project overview, plan, co-branding prospects, benefits, terms and beyond.

To get feedback about your proposal from coworkers quickly, you can invite them to your Visme project using Visme’s collaborative features . The workflow management tool also allows you to assign roles, establish deadlines and streamline approval processes effortlessly—all in one place.

Read this guide to learn more about how to create an effective partnership proposal.

13. Restaurant Investment Proposal

Attract prospective investors and secure funding for your culinary venture using this sophisticated investment proposal template.

Its combination of vibrant color schemes, icons and captivating images creates an impression of a refined restaurant.

Utilize its various sections to highlight your executive summary, target audience, competitive edge, business model , financial projections, SWOT analysis and other crucial details.

The template also incorporates charts to depict your target audience and financial projections. Visme enables you to seamlessly link real-time data from 3rd-party apps like Excel or Google Sheets and import tables, charts and graphs into your projects.

14. Project Investment Proposal

Showcase your project's potential to investors with this sleek investment template. Its elegant design incorporates a striking blend of black and yellow, exuding professionalism.

The template includes sections such as executive summary, project goal, target community, use of funds, assessments and more.

Customize this template by using images or videos to showcase your prior projects. This visual showcase will offer investors a glimpse of your work, significantly increasing your chances of winning.

15. Prime Real Estate Investment Proposal

Position your company as a trusted business for real estate investments with this stunning template. The layout, colors and captivating real estate imagery create a compelling visual narrative.

The template captures everything you need to show investors that you’ve done your homework. It includes an executive summary, overview, gallery, risk assessment, investment rationale and more. You can also include video testimonials of prior clients to gain potential investors’ confidence.

Each page of this document can be easily customized using Visme's user-friendly drag-and-drop editor.

16. Startup Investment Proposal

Starting a business? Utilize this startup investment proposal to highlight your idea's potential and leave a lasting impact on investors. The distinctive color scheme of yellow, white and navy blue blends to evoke a sense of innovation.

It includes clear sections to highlight your executive summary, market analysis, competitive advantage, business model and more.

In addition to your proposal, you can use Visme’s presenter studio to record your elevator pitch and share it with potential investors. This adds a personal touch and helps you engage busy executives.

17. Business Consulting Proposal

Win client's trust to hire your consulting services with this cutting-edge template proposal.

This design boasts a sleek color scheme of grays and blacks contrasted with a pristine white background, ensuring an attention-grabbing visual. It encompasses all crucial aspects, from an executive summary to project timelines, pricing models and compelling testimonials, to effectively showcase your expertise to potential clients.

You can link the icons, objects or text to a website or document for seamless navigation and engagement using interactive links.

18. IT Consulting Proposal

Craft a compelling pitch for your IT consulting service with this detailed consulting proposal template. It provides a structured framework to articulate your goals, expertise, services, recommendations and project details effectively.

Packed with captivating visuals, refined fonts, modern design elements and versatile layouts, this template ensures your proposal shines among competitors.

Personalize it to match your company's processes by incorporating text, applying your branding and expanding or adapting sections as needed.

19. Social Media Consulting Proposal

Whether you're an established social media agency or a freelancer looking to land your next big client, use this template to confidently pitch your social media consulting services.

With its sophisticated mix of blue and white hues, complemented by well-organized layouts and interactive icons, this template adds a touch of elegance to your presentation.

It covers crucial areas such as market analysis, personalized strategies, content planning and measurable objectives to craft a persuasive argument.

Make this template yours by swapping out the placeholder text and adjusting the visual elements until you're satisfied with the look and feel.

20. Marketing Consulting Proposal

Secure lucrative marketing projects confidently with this modern consultant proposal template. Its contemporary layout, crisp imagery and fusion of vibrant color themes project a high level of professionalism.

This template provides comprehensive coverage for essential aspects like the executive summary, "why choose us" section, project scope, deliverables, timeline, budget and more.

Lacking visuals for your projects? Utilize Visme's AI image generator to create relevant, high-quality, original images that breathe life into your design. Simply type in your prompts to generate professional-grade photos, paintings, pencil drawings, 3D graphics, icons, abstract art and more in seconds.

21. Web Development Proposal Template

You’ll require a standout proposal to win clients in a highly competitive web development industry. This sleek proposal can be your game-changer.

With an exquisite design layout, vector icons and a vibrant color scheme blending yellow, blue and white, this proposal immediately captures attention. The sections within cover the project overview, portfolio, website structure, timeline, budget breakdowns and more.

If you need to enhance your existing images and give them a professional look, you can utilize our AI Image Edit Tools within the Visme editor. The wizard allows you to remove backgrounds, unblur, or enlarge small images for optimal presentation.

22. Roofing Proposal

Whether you're a seasoned roofing contractor or a startup, this template will equip you to stand out and secure your roofing projects effectively.

The template utilizes a minimalist design with well-organized sections, ensuring your proposal looks both professional and visually appealing. Key sections such as project scope, materials, timelines, safety protocols and cost breakdowns lets you showcase your expertise and reliability.

Personalize the template by substituting the placeholder text and fine-tuning the visual elements until it suits your needs.

23. Construction Proposal

Utilize this refined template to leave a lasting impact and win your upcoming construction or renovation projects. Its blue, yellow and white color scheme radiates professionalism, while its captivating visuals and elegant layout effortlessly highlight your content.

The template features sections such as project scope, timeline, materials, costs and service specifics which underscore your expertise and dedication to top-notch work.

Share and download this proposal in various formats—PDF, PNG, JPG and GIF—or generate a link to share it with the client.

24. Architectural Proposal

Seal prestigious architectural deals confidently with this sleek architectural proposal template.

The template boasts high-resolution graphics, smart design elements, and engaging fonts. It includes sections for project goals, milestones, budgets and ample architectural images that add visual appeal.

Customize this template using Visme's built-in design assets or upload your own. You can use the shortcut feature for quick access to design elements on Visme. Simply type '/' to search and locate what you need in seconds.

25. Bid Proposal

If you would like to craft a winning bid proposal and enhance your business opportunities, this professional proposal template is perfect.

This template stands out with its captivating design layout, refined color scheme, and an impressive selection of fonts, icons, and images. It features a formal letter, budget breakdown and project commencement and completion terms.

What sets this template apart is its adaptability to suit any industry. Every aspect of this template is also customizable, allowing you to modify content, colors, fonts, shapes and logos to align perfectly with your brand identity.

26. Lawn Care Proposal

Communicate your expertise and dedication to impeccable lawn care with this stunning lawn care bid proposal.

This expertly crafted template boasts a captivating cover page and is filled with captivating fonts, high-definition images of lush greenery and dynamic vector icons.

You can customize every aspect of this template effortlessly. If you want to switch up the images, Visme offers an extensive array of top-notch images and design elements, from 3D icons and shapes to animated graphics, ensuring your proposal stands out vibrantly.

27. Fintech Agency Bid Proposal

Whether your agency specializes in digital banking, blockchain, payments, or other fintech solutions, this template equips you to stand out in competitive bids.

With a striking color palette of black, lemon and white, this template achieves a great balance—bold enough to captivate attention yet professional enough to exude credibility.

You can leverage the sections to highlight your firm's background, methodologies, budget and delivery aspects. The project timeline page is also particularly beneficial to provide clients with a clear glimpse of the project's completion date.

You can seamlessly integrate videos of client testimonials, your services, or a compelling brand narrative, enhancing your proposal's impact.

28. Marketing Campaign Bid Proposal Template

Looking to create a captivating bid proposal for marketing services? This template fits the bill.

The template boasts a lively color palette blending violet and white, setting the stage for a professional presentation.

It includes a succinct summary of your response to the RFP, featuring the challenge and proposed solutions, a compelling "why choose us" section and the estimated budget.

To further elevate engagement, Visme’s interactive features allow for linking specific sections to pricing pages, product page or terms and conditions. You can also employ hover effects or popups to reveal supplementary company information, enhancing the viewer's experience.

Read this article to discover professional bid proposal templates to win new clients.

Tips for Writing Winning Business Proposals

You now understand how to create a business proposal and what should be in a business proposal. Here are some design tips to make your business proposal attractive.

1. Know Your Audience and Recognize Their Needs

Don't make assumptions about your audience. Instead, do your best to understand their specific and unique needs and how you can assist them. Your potential customer wants to see how your solution will address their specific needs, not a generic solution to the problem.

Map your buyer persona to understand their pain points, budget, deadlines and more. This information will improve your chances of closing the deal.

2. Use Professionally Designed Template

When creating your business proposals, use professionally designed proposal templates . The upside is that you won't have to start from scratch, saving you a lot of time.

Using templates allows you to focus more on the copy and contents, ensuring you cover all the bases and include all the necessary information to warrant a positive response.

3. Pay Attention to Design

Every element of your business proposal should be crafted to catch your audience's eye.

Jazz up your cover page with a captivating image that depicts what the proposal is about. Give it a personal touch and build brand recognition by adding your logo on the cover and inner pages. Remember to use beautiful colors and fonts that align with your brand guidelines.

However, when using colors, maintain a contrast between the text and the background color. For example, using dark-colored text on a dark background will make your document impossible to read.

Likewise, avoid utilizing too similar hues or a lighter version of the same color background. Colors with a lot of contrast and color pairs that follow the basic idea of light and dark color combinations function well.

Adopt a minimalistic design to make your proposal look polished and help readers focus on the important information.

Make sure that each element in your proposal has enough white space around it, whether it's text, images, charts or anything else. Avoiding clutter will make your proposal look neat and easy to read.

4. Use More Visuals and Less Text

Visuals bring your presentation to life. And substituting text with more icons, images and visual aids makes your proposal readable. For example, you can use photos to:

• Introduce key stakeholders and team members
• Visualize key milestones, stakeholders and team members
• Demonstrate the look of the finished product
• Showcase customer reviews and testimonials

The proposal template below is an excellent example of how you can use visuals to make your proposal pop.

Charts and infographic elements effectively visualize statistical data, like KPIs and results. You can also use other visual aids like tables, diagrams, icons and tables to represent cost estimates and budgets.

Q. What is the best font for a business proposal?

We recommend using fonts that make your business proposal clear and readable. Basic fonts like Arial, Sans Serif, Courier New, Calibri, Cambria, Times New Roman, Tahoma and Verdana work well. Use a 10 to 12-point font size for the body and a 14–16 point font size for headings.

Q. How do you start an introduction to a business proposal?

Your business proposal's introduction should start with a brief overview of what your company does. Also, it should include what sets your company apart from its competitors and why you should be the top choice for the job or project.

Q. What to Include in a Business Proposal

A business proposal should include the problem statement, proposed solution, scope of work, qualifications, timeline, milestones, pricing and terms.

Q. What Is the Difference Between a Business Proposal and a Business Plan?

A business proposal is a document crafted to persuade a prospective client to choose a company for a particular task or project. It outlines the specific project or service, pricing, deliverables and the value the company can provide.

On the other hand, a business plan is a comprehensive document that serves as a roadmap for an organization's future, guiding decision-making and operations. It outlines the company's objectives, strategies, market analysis, financial projections and operational details.

Unlike a business plan, which is internally focused, a business proposal is tailored externally to win a specific opportunity or contract.

Q. How Many Pages Should a Business Proposal Be?

Generally, a business proposal can range from 1 to 20 pages. However, there's no strict rule on length. The length of a business proposal can vary based on the specific requirements of the project or the expectations of the recipient.

Shorter proposals (one to five pages) are suitable for simpler projects or when the recipient specifies a brief document. More complex projects might require longer proposals with detailed sections on various aspects like methodology, timelines, pricing and terms.

Q. What Is the Basic Format for a Business Proposal?

A typical business proposal usually follows this basic format:

• Cover Page: This page includes your proposal title, company name, submission date and contact information.
• Executive Summary: Your executive summary section gives a brief overview of the proposal, highlighting the key points, objectives and why the proposal should be considered.
• Introduction: This section introduces the company and its background.
• Problem Statement or Needs Assessment: This section describes the client's issue or need that the proposal aims to address. This section clarifies the problem and its significance.
• Proposed Solution or Methodology: Utilize this section to highlight the company's approach to solving the client's problem. You can detail the services, products, or methodologies offered.
• Timeline or Work Plan: Your timeline section should present a schedule or timeline of how the proposed solution will be implemented, including milestones and deadlines.
• Budget or Cost Proposal: Provide a breakdown of the costs associated with the proposed solution, including fees, expenses and payment terms in this section.
• Company Expertise, Experience and Accolades: Give a compelling overview of the company's expertise, experience, relevant projects and qualifications that make it suitable for the project in this section.
• Conclusion/Next Steps: Summarize the key points and reinforce the benefits of choosing your company. Then end with a clear call to action.

Q. What Are the 3Cs of a Business Proposal?

The 3 C's of a business proposal are clarity, compelling and competitiveness. Let's take a brief look at each component:

Your business proposal should be clear and easy to understand. It should articulate the problem, proposed solution, methodology and terms in a straightforward manner. You should also avoid buzzwords and stick to languages and examples that resonate with the client.

Your proposal should be engaging, well-structured and crafted in a way that maintains interest throughout. It should incorporate visuals like images, icons, graphs or charts to complement the text and make the proposal visually appealing. You can also use storytelling techniques to illustrate the problem, the solution and the positive impact your proposal will have.

Competitive

Your proposal needs to be persuasive. It should convince the recipient that your company's solution is the best fit for their needs. This involves showcasing expertise, providing evidence of past successes and demonstrating the unique value your company brings.

Q. How Do I Write My Business Proposal?

Here are some steps to help you write an effective business proposal:

• Understand who your audience is and what their needs are
• Design a compelling cover page, title page and table of contents
• Write your executive summary
• Clearly define the client's problem or needs.
• Propose a solution (product, features and benefits)
• Showcase your company's background, team expertise, experience and qualifications.
• List deliverables, milestones, and timelines
• Provide a detailed budget and payment structure
• Include quotes from satisfied clients or references and evidence of your track record
• Write a conclusion and appendix

Visme's proposal templates come with pre-made sections to make the proposal creation process easier and more efficient. With our intuitive editor, you can customize these sections, add or remove sections as needed to fit your specific needs.

Q. What Are 5 Things All Proposals Should Include?

The five key elements every proposal should include are:

• Project background and objectives
• Problem statement
• Project scope and plan
• Timeline and budget
• Conclusion and next steps

Q. What Are the Do’s and Don'ts of Proposal Writing?

When it comes to proposal writing, there are some do’s and don'ts to keep in mind to ensure that your proposal stands out and increases your chances of success.

• Understand the client's needs and tailor your proposal accordingly. Start with a catchy and attention-grabbing introduction.
• Clearly articulate your value proposition, unique strengths and capabilities.
• Use visuals and graphics to make your proposal more engaging and memorable.
• Include testimonials or case studies to demonstrate your track record.
• Provide a detailed and realistic project plan, timeline, and budget.
• Proofread and edit your proposal thoroughly before submitting it.
• Don't use a generic proposal template without customizing it to the client's needs.
• Don't overpromise or exaggerate your capabilities.
• Don't use jargon or technical terms that may confuse the client.
• Don't submit a proposal that is too long or too short.
• Don't forget to follow up with the client after submitting the proposal.

Q. Which Phrases Are Best Avoided in a Proposal?

• "I think," "I'm not sure," "I believe," and similar phrases can seem hesitant and unconfident. Instead, state your ideas and arguments with conviction.
• "The best," "the greatest," or "the top-ranked"—empty"superlatives like this can come across as exaggerated and lacking credibility.
• "This might be a stupid question, but..."—never apologize for asking a question or suggesting an idea. It's important to demonstrate confidence in your abilities and ideas.
• Jargon or technical language that the client may not understand; keep in mind that the proposal may be read by individuals who are not familiar with your industry or field. Use plain language and avoid technical terms that may be confusing.
• "Trust me"—this phrase can sound condescending and unprofessional. Instead, provide evidence and data to support your arguments and proposals.
• "Our competitors are terrible." Avoid speaking negatively about your competitors. Rather, focus on highlighting your own strengths and unique selling points.

Writing business proposals is a lot of work. With the tips and templates shared in this article, you have everything you need to create a professional proposal that impresses your client and wins them over.

Start creating business proposals today to market your business and close more deals. Visme's proposal maker is perfect for creating professionally designed business proposals for any business, industry or use case.

Easily put together winning business proposals using Visme

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How to Write a Business Proposal: Step-by-Step Guide

You just finished an amazing meeting with a potential client, they seem ready to pull the trigger and excited to work with you. Then they utter the following sentence: “Please send me a proposal.” And now you have to remember how to write one. This guide will give you a system and guidelines on how to write a business proposal and make that process easy and repeatable.

Writing business proposals is arguably not that fun. In fact, most business owners would rather avoid the task. However, if you have an amazing business proposal template to start with you can speed the process up significantly. The key is to build everything right the first time round and give yourself a reusable template you can tweak and adjust until it’s perfect.

What we'll cover

• Proposal templates
• Visual presentation and design
• Introduction (Executive summary)
• Detailed specification
• Terms and conditions
• Optimizing your proposals for conversion

What is a business proposal?

An effective business proposal is a formal document created with the purpose of persuading your potential customers to work with you. It’s a document used in a variety of industries - from selling carpets to offering enterprise software solutions and social media marketing , all of it starts with a business proposal.

Two types of business proposals

Besides the difference in the industry, the main division is between solicited and unsolicited business proposals. A solicited business proposal is sent when you already have a connection with the potential customer and they’re interested in what you’re selling. 

Usually, the buyer themselves will ask for a proposal outlining your problem statement. Whether they’re a small business or government agencies, your proposal should follow the project details they’ve outlined.

On the other hand, unsolicited proposals are sent without the explicit request of someone who may be interested in what you’re selling. Whether you’re writing formally solicited proposals or unsolicited ones, you’ll need to know how to structure them. 

Although it’s easier to create a solicited proposal, don’t stress out about writing unsolicited ones. Our guide can help you in both situations.

How to write a business proposal the easy way

Have you ever freehanded a business proposal into the body of an email? Or started compiling it in a Word document from scratch? Or maybe you’re more into InDesign so you noticed a typo on your freshly exported PDF?

The fact of the matter is, creating a proposal for every client from scratch is both exhausting and a waste of time. Having a structured proposal writing system in place will save you countless hours. At the most basic level, your proposal writing system is two things:

• Having a great business proposal template written with everything in it
• Knowing what needs editing each time

The first thing, getting your business proposal template in order, is vital. The second is a matter of personalization to the specific job and client.

What is a business proposal template?

Put simply, a proposal template is a proposal that is about 90% finished. Think of it as a collection of all the best pieces of content you’ve ever put into previous proposals.

Your best introduction describing the problem statement, your best pricing strategy , best type of proof, best title page, etc. A winning template combines all the best elements of the proposals you’ve sent which resulted in sales for your product or service.

If you’re using proposal software like Better Proposals, compiling this shouldn’t be difficult, because you will know which proposals work for your target audience thanks to our analytics and reports.

But what if you’ve never sent proposals before so you don’t have a basis for templates? What if you don’t have the time or just don’t know a thing about proposals? No reason to worry – our proposal library has more than 130 different proposal templates that help sell a wide range of products or services .

Once you have your template in place, you’ll only need to fill out the major details, such as:

• The client's information
• Specifics about the offer
• Pricing, timelines, detailed specification
• A proof section with an example similar to the offer you’re sending, etc.

Once you add these, your business proposal is ready to go. The main idea is that templates help you write proposals in 15 minutes instead of 5 hours. To see what the template creation process looks like, check out how easy it is to design yours in Better Proposals .

The importance of a good business proposal template

The best thing about a good proposal template is that you only need to create it once. After that, it’s just a matter of tweaking the details. If you do it properly the first time around, sending out a proposal turns into a few minutes’ work. 

The best tip we have is to choose your best proposal and turn it into a template. Allocate a good day to getting it as good as it can be - turn all specific information into placeholders, get your formatting sorted, and make sure your pricing section is clean and clear.

This also means editing the copy like it’s a headline on your website. Consider the wording, your client, and the emotions you want to evoke - really make each section shine.

Despite their growing popularity, this is the time to resist the urge to use AI content writers . The content they produce is easy to spot and putting effort into creating a great business proposal template makes all the difference. 

Later in this article, we’ll look at what is included in a business proposal, and that goes for your template too. We’ll provide business proposal examples as well. Next time you have that meeting with your potential client and they ask you to send them a business proposal for your proposed solution, you’ll confidently walk away knowing exactly what to do.

How to write a business proposal that sells

Most people think that writing a business proposal is boring and time-consuming. And for the most part, they’re right. There really is no creative flair in writing them and it’s all about pitching your product or service so that the new client says yes and gives you money. 

But it doesn’t have to be this way. There is a way to make proposal writing easier and more efficient and get your prospective client on board more quickly.

In the following sections, we’ll show you that writing a business proposal is more about preparation and using the right tools to make writing easier. In other words, we’ll teach you how to write a business proposal with minimal effort and maximum sales performance.

Once you pick the right proposal software tools, you’ll see how easy it is to create a winning proposal.

What questions are your customers asking?

When writing a business proposal, there’s a situation going on that only the best salespeople understand. Your potential client has a list of questions. They’ll rarely tell you what those questions are, mostly because they’re pretty awkward. 

For example, we had a situation when I quoted someone £40,000 for some software once. The proposal was about 17 pages long, and the client replied with one sentence:

“Sounds good. What happens if you die? How do I get my data back?”

I didn’t think it was an appropriate time to go back to him and explain I probably wouldn’t care about his data if I was dead. However, I did explain to him a contingency plan that we had in place for nearly a decade now for this exact situation. I told him, and he signed up.

This got me thinking. While this guy was the first bold enough to ask that question, he can’t have been the first guy to think it. From that moment on, we included the contingency plan in every business proposal we sent under a section called 'How we protect your data'.

Awkward questions your potential customers have but won’t ask you:

• What happens if you die?
• What will I do if they screw up my search engine rankings?
• What happens if they take over my website and vanish?
• What happens if they redesign my website and I get fewer conversions than I got before?

A rare client will actually ask these questions to your face, but it doesn’t mean they won’t pop into their mind. Think about it. How many questions do people actually ask on the back of proposals? Answer these questions in your proposal before the client gets a chance to ask them.

How do you want your potential clients to feel?

Don’t think of business proposals as just sales documents - think of them as taking someone on an experience. Think movies. The emotions override the content. It’s less important how you get them to feel sadness at the end, so long as you do.

Writing a business proposal isn't that different. It's all about the emotion you want your potential client to feel at the end of reading it. For example:

• Excitement – Describing possibilities using uplifting pictures and success stories is good here. Don’t bore them with a document resembling a long business plan.
• Confidence – Include lots of proof and trust-building elements into this. Don’t make suggestions; be certain in your wording.
• Action taking – Lots of commanding words and talking about the next step. Don’t bog them down with a list of 42 things to decide on. Just get them to do the “next” thing.

You could find the best custom writing service out there and you’d still be the only one who can do this properly. That’s because, depending on your client and what you’re selling, only you know what’s most appropriate.

What you definitely don’t want to be doing is talking in “maybes”, “ifs”, and using suggestive wording when you want someone to trust you. It sounds like you’re not sure. As a good friend, Mitch Miller, says:

“The doctor doesn’t ask the patient if it’s the right prescription. He just prescribes the right thing and tells them to get out of the office.”

The 8 core elements of writing a business proposal

There are 8 elements most business proposals should include. Some are absolutely essential; some are not – that depends on your specific situation. Here they are:

Does your proposal need to have all of these sections? Maybe yes, maybe not – it depends. However, all of our proposal templates have these sections out of the box. But wait - there’s one thing we haven’t mentioned on purpose.

0. The cover page

All proposals should have a well-designed cover page with an image and text to address the specific client. We’re leaving it out because all of our business proposal templates come with beautiful, professionally designed cover pages already built in.

A beautifully designed cover page can help your business stand out because it gives your entire document a level of professionalism. What’s more, it brings the wow factor that pulls clients in right off the bat.

1. The introduction

Also known as the Executive summary. Good business proposals always start with a great introduction . This is the most read part of your proposal, so it needs to get across that you understand their situation and you’re clear on their goal. Your meetings and discovery sessions should be heavily predicated on getting the information for this section of the proposal.

The biggest reason you’re not winning new business is not getting a chance to do a meeting or initial call about the job. As a result, you never discovered what the client wants to achieve, what’s important to them, and what makes them tick. And because you don’t know that information, you lead with the things that don’t matter as much (e.g., the price or the technicalities of what you’re going to do). 

This is why a discovery call is one of the most important things to include when you learn how to write a business proposal. Without it, you’re essentially guessing what the client needs.

Every business proposal needs a good introduction

Your introduction should show the client that you’ve listened to their problem and that you have the cure, which you will show them in the next section. If you want to create an ongoing relationship, you need to show that you’ve researched your client’s company.

If you want to present your clients with a custom service, this is the place to stress that. Show them how you customize your usual offer to match their exact pain point.

According to our own research, this is the most-read section of all business proposals besides the pricing. Most clients read just these two sections, so make sure that you invest extra time and care in this one.

How to write a proposal introduction

This section is also known as a summary or an executive summary, depending on your resources. Even though the title is different, everything else is the same – it’s a section where you discuss how you’re going to solve the client’s problem and present your value proposition.

The most important tip we have here is to make it all about the client and the solution to their problem. In other words, refrain from going on and on about yourself. At the end of the day, a client reading a proposal wants to know what solution you offer. And if they’re interested in your company history or the process of forming an LLC , they’ll Google it.

Make sure to keep it short and to the point. You want to keep your entire proposal easy to read and as enjoyable of an experience for your potential client as possible. 

Since the executive summary is such an important part of any standard business proposal, don’t be afraid of asking your team members to read it and give you feedback. And if you need more practical writing tips, check out our in-depth proposal introduction writing guide .  

2. The detailed specification

This part varies depending on what you’re selling. If it’s a website, this could be a list of pages and features. If you’re writing a social media marketing proposal, then this could be the strategy or the talent and credentials of your team. It’ll vary.

The basic idea is to be as detailed as possible in your offer. That way, the prospective client understands exactly how your proposed solutions work.

The reason it’s important is that if the deal goes bad, you both have this section to refer back to. Your business proposal outlines accountability and what the client should hope for. Moreover, it also serves as a good exercise for you when writing a good business proposal, as this is all the information you’re going to gather in any discovery phase of the deal.

It’s important here to keep this in plain English. Stay far away from jargon, as it will only confuse the potential client. The less the reader understands, the less they trust you.

Also, if you absolutely must write about your company, this might be the place to do it. Who you are, what you do, how long you’ve been doing it, and what makes you stand out. However, don’t spend too much time or space on this because the focus is on the client, not you.

3. The timescales

It doesn’t matter if it’s a wide bracket, like 2-4 weeks – you have to give the client some clue about your project timeline . Otherwise, it’s a massive unknown.

It can be really useful to find out if the client has a special event or another reason for a project timeline to be important to them. If there is, tie that in. You can even tie that into scarcity to give them the incentive to sign the proposal off by a certain date. And if you’re writing unsolicited proposals, you need to be especially convincing and present your project timeline in a way that will make it hard to say no to. 

Be as specific as possible, but also use this section to your advantage. More time to deliver means two things:

• You can finish earlier than promised and impress your client
• You have more time to spare if something goes unexpectedly wrong

More time is always better, but make sure that you consider the need for urgency as well.

4. The proof

You must prove to your client that you can actually deliver your proposed solution. Now, you might say, “we have examples on our website”. That’s nice – but the client is not looking at your website, they’re reading your proposal – your one big “ask” for the business. They want solid proof and a few good case studies will do.

You need to have sufficient proof in a good business proposal. This could be examples, testimonials, video case studies, screenshots from a client proving you helped them with something, a recording of a voicemail – anything.

As you can see in our business proposal example, it doesn’t have to be complex and have the production value of a Spielberg classic. It just needs to get the point across.

To help them feel like they’ll be in good hands, you can also indicate relevant credentials and certifications your team managers and members have. After all, product managers and team leaders will play a massive role in ensuring that your product or service is of top quality.

The good news is, there is more than one type of proof that you can choose. Case studies, testimonials, portfolio pieces, explainer videos – there are lots of ways to convince your clients that you’re the real deal.

5. The price

Based on our data, this is the second most read section of any business proposal – people usually jump straight from the introduction to the pricing table. Needless to say, spend some extra time here to make it look right.

When using our business proposal templates, you can choose how to format your price based on project details. That said, there are a few things you want to make sure of. 

The first is that the pricing is super clear. If you have somewhat of a confusing pricing structure, then this might be time to think about simplifying it.

Speaking of which, we’ve done some research on pricing in business proposals and you can see our results in the latest Proposal Report . As it turns out, it’s a better idea to have a single offer and price instead of trying to get more money with upsells. Proposals with a single offer sold significantly more – 20.6% for offers with upfront costs and 33% higher for offers with monthly retainer costs.

The reason is that a business proposal is a matter of getting a simple answer – yes or no. The more options you add, the more difficult it gets for them to decide whether to sign or not. Keep your responsive pricing tables super simple.

The way you format your price can help avoid further negotiations. Our analysis of real-life pricing mistakes should give you a good idea of what to avoid.

How to name your pricing section

Finally, there is one more thing that you should know about the pricing section – don’t call it that. We’ve discovered that these names work better:

• Return on investment
• And others following this pattern

Basically, you want your clients to see your services as an investment in their business, rather than a simple cost and money down the drain. Small businesses or enterprise clients, no one wants to spend money - they want to invest it.

6. The guarantee

Some people love the idea of a guarantee. Others don’t like giving guarantees for fear of abuse. However, a guarantee is a great way to push new clients further towards conversion.

Instead of a typical money-back guarantee, consider guaranteeing a part of your service or a timescale. Cheryl Laidlaw’s “Website in a Day” service is a good example. 

She, at the time of writing, charges £1,995 for the day and delivers the website THAT NIGHT. The client doesn’t go home (and neither does Cheryl) until it’s done – which is an amazing offer .

7. The next steps

A lot of times, people seem to forget the very basics – to show the client what to do next. Sure, some people might read your business proposal and say, “Great, okay, let’s go ahead”. But why would you leave it up to them to figure it out?

It’s not their job to figure out how to buy from you, especially if you’re sending informally solicited proposals. Just make sure to tell them what the next steps are. Usually, this will be something like:

Step 1: Sign the proposal by typing your name in the box below and hitting ‘Accept’. This makes the proposal a legally binding contract.

Step 2: We’ll invoice you for 50%. Please pay for this immediately.

Step 3: We’ll arrange our initial consultation call with you.

Anyone can do these tasks on their own – they’re not all that complex. The problem is that if you leave all of this unsaid, you’re leaving your clients wondering. Explain all the details of what’s going to happen next.

8. The terms and conditions

You absolutely should be including your contract or terms and conditions. Just put it on a separate page called Terms & Conditions or Terms of Business .

There’s a great contract written for freelancers which covers 98% of the basics. If you’re not using a contract in your business right now, use this until your legal team demands something better.

You should always include your terms in your business proposals because when someone signs the proposal, they automatically sign the contract . It covers you and it covers the client, so it’s only natural to include it.

Just reading the words “terms and conditions” may make you feel dizzy because of the work ahead, but it’s actually something that you can do once and never fret about again later.

A business proposal that's optimized for conversion

So let's say you've followed all the steps in the "How To Write A Business Proposal Guide," and you now have the best structured proposal on the planet, and it still loses business. Why could this be? - perhaps it's a conversion problem. We’ve analyzed hundreds of thousands of proposals sent through our platform to see what makes them convert. Here are some data-backed tips to help you.

1. Send your proposals quickly

For over four years now, sending proposals out within 24 hours of meeting the client has been the best way to increase conversion rates. According to our data, proposals that are sent out within that time frame had a 23% higher conversion rate than those sent only a day later.

2. Include a cover page

While jumping straight into the introduction won’t hurt your conversions significantly, our data shows having a cover page makes a difference. Proposals with a cover page convert 4.6% better than the ones without it.

3. Don’t go overboard

The length of a business proposal will largely depend on what you do. That said, proposals that convert the best are short, concise, and to the point. Our data backs this up, showing that the optimal proposal length has been 6-7 sections for five years now.  

4. Make sure your proposals are mobile-friendly

The number of clients opening business proposals on desktop computers has been steadily decreasing over the years. As a matter of fact, as much as 46% of proposals are now opened on mobile devices. 

You won’t get a second chance to make a first impression, and you can’t control what device your client chooses to use. So what do you do? Choose a responsive design that looks great on all screen sizes.

5. Look professional

Pixelated logos, mismatched fonts, and typos are the best way to lose credibility right off the bat. Our data shows that branding goes a long way, with proposals sent from a custom domain converting 19.3% better than the ones sent from a third-party domain.

6. Integrate live chat

Great customer service is always crucial to increasing your conversion rate. Live chat not only helps you to respond to your client's questions in real time but also puts them at ease. That’s why proposals with integrated live chat convert 18.2% better than those without it.

7. Make the offer easy to accept

The harder you make it for the client to do business with you, the more business you’re losing. With business proposals, the answer is easy - use a web-based platform like Better Proposals. That way, you’re letting clients sign documents electronically and pay, all in one place.

Using traditional PDFs sent as email attachments makes your conversion rate 88% worse. It's not a surprise when you think about it - nobody likes going through the hassle of printing, signing, scanning, and sending the document back.

Using proposal software to write, send, and track your business proposals

The truth is, rarely anyone writes proposals these days – most people use proposal software. Here’s why it’s a good idea:

• Proposal software is web-based . You can send your clients links instead of PDF files.
• Proposals are optimized for different devices. They look and feel the same on a phone, laptop or tablet.

• You get to use proposal templates . (We have more than 130 of them.)
• You can track what the client does with the proposal. You get notifications when they read, forward and sign.

• Clients can instantly sign proposals electronically. This means your proposals are considered legally binding contracts. No need for third-party tools like DocuSign or DocuSign alternatives – good proposal software has that already built in.
• Clients can pay from the proposal. Paypal, Stripe, GoCardless, you name it.

• You can use a variety of integrations . MailChimp, Zapier, Salesforce, HubSpot , or whatever else you are using in your sales workflow.
• Detailed reporting . Find out what works and what doesn’t, no guessing.

• The ability to use live chat . You can chat with the client as they’re reading the proposal, increasing your conversions.
• You get to write your proposals in 15 minutes , not 5 hours. Pull the data from your CRM and populate it with automatic fields - it’s that simple.

These are just some of the many reasons why you should consider using proposal software rather than opening Word next time you want to write an effective business proposal.

The takeaways

Whether you’re a seasoned professional or just starting a new business , following our guide will help you dramatically increase the number of people who say yes to your proposals. In summary, here are the exact steps that you need to take to write an amazing business proposal:

• Start off with a proposal template
• Find out the questions that your clients are asking
• Think of how you want the clients to feel as they read the proposal
• Include the 8 elements of a winning business proposal, as listed above
• Use proposal software to automate the writing process

One of the biggest reasons people take forever to write business proposals and ultimately do a bad job is because they are using software that simply isn’t geared up to doing the job in an effective way. It might sound like a self-serving suggestion , but you should take a look at using Better Proposals for writing your next business proposal. 

The business proposal templates in our Marketplace alone will save you a ton of time with many business proposal examples to browse, and our proposal software has everything you need for writing proposals in one place.

How many signatures can you collect in 14 days?

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How to Write a Business Plan Proposal

Table of Contents

• 1 Deciphering a Business Plan Proposal
• 2     The Significance of a Business Plan Proposal
• 3 Essential Elements of a Business Plan Proposal
• 4 Tips on Crafting a Successful Business Plan Proposal
• 5 In Conclusion

A proposal for a business plan stands as a crucial document delineating your business concept, strategies, and the methodologies in place to reach your objectives.

Whether you are hunting for financial backing, partnerships, or project endorsements, a compelling business plan proposal can be a game-changer.

This manual will furnish you with the necessary steps and components for crafting a compelling business plan proposal that stands out.

Deciphering a Business Plan Proposal

Before delving into the steps, let’s elucidate what a business plan proposal entails. It is a comprehensive scheme elucidating your business notion, market potential, operational and managerial tactics, marketing endeavors, and financial projections.

Different from a conventional business plan, which may act as an internal reference, a business proposal chiefly targets stakeholders, potential investors, or partners evaluating the viability of your business concept. A well-written business plan is a valuable tool for guiding your startup’s growth and attracting investors. 

    The Significance of a Business Plan Proposal

– Attracts Funding: A well-crafted business plan proposal is indispensable for luring investors or securing financial assistance, expounding on how funds will be utilized to yield profits.

– Provides Clarity: Drafting a proposal aids in clarifying your business targets and strategies, compelling you to dissect every facet of your business plan.

– Acts as a Roadmap: Serving as a roadmap for your business, the proposal aids in keeping track of your goals and strategies, offering insights into your approach.

– Facilitates Communication: It helps in articulating your concepts effectively to potential stakeholders, ensuring a clear grasp of your vision and goals.

Essential Elements of a Business Plan Proposal

1. Executive Summary

An imperative facet of your business plan proposal, the executive summary should offer a snapshot of the proposal and captivate the reader’s interest. Essential components include:

– Business Name and Location

– Mission Statement

– Business Concept

– Market Opportunity

– Funding Requirements

2. Company Description

This section furnishes a detailed overview of your business, incorporating:

– Legal Structure

– History

– Location

– Objectives

3. Market Analysis

A thorough market analysis demonstrates your comprehension of the market and bolsters your business concept, encompassing:

– Industry Overview

– Target Market

– Market Needs

– Competitive Landscape

4. Organization and Management

Detailing your business’s organizational structure and management team involves:

– Organizational Structure

– Management Team

– Roles and Responsibilities

5. Products and Services

Detailing your offerings and their unique value propositions includes:

– Product Description

– Lifecycle

– Intellectual Property

6. Marketing Strategy

The marketing strategy outlines your customer acquisition and retention plans through:

– Marketing Plan

– Sales Strategy

– Customer Relationships

7. Funding Request

If seeking funding, specifying the requirements and investment potential is crucial, addressing:

– Future Funding

– Investment Potential

8. Financial Projections

Realistic financial projections showcase the potential profitability of your business through:

– Revenue Model

– Break-even Analysis

– Financial Statements

9. Appendix

The appendix may incorporate supplementary materials supporting the details in your proposal, such as:

– Resumes

– Supporting Documents

– Legal Documents

Tips on Crafting a Successful Business Plan Proposal

Ensure Clarity and Brevity: Communicate using simple language and avoid industry-specific terminology. Make sure your proposal is easily comprehensible to a broader audience.

Personalize Your Proposal: Tailor your proposal to suit your target audience. Highlight the most relevant aspects to them, whether they are investors, collaborators, or interested parties.

Incorporate Visuals: Enrich your proposal by including visual aids like charts, graphs, and infographics to present information in a more easily understandable and captivating way.

Conduct Thorough Research: Offer reliable data and thorough research to validate your assertions, particularly in the market analysis and financial forecasts sections.

Review and Edit: Check your proposal meticulously for any mistakes. Consider seeking input from a trusted advisor or associate to ensure clarity and effectiveness.

Emphasize Benefits: Showcase the potential advantages of your business to stakeholders and investors. Stress how their investment could lead to shared success.

In Conclusion

Developing a business plan proposal may seem overwhelming, but with a well-structured approach and a clear vision, it can become an indispensable tool for your startup’s success. A meticulously planned proposal not only presents your business concept but also showcases your dedication and readiness to potential funders and collaborators. By adhering to this comprehensive roadmap, you will be well-prepared to compose a compelling business plan proposal that can actualize your entrepreneurial ambitions.

Call to Action

Feeling prepared to commence drafting your business plan proposal? Gather your thoughts, conduct thorough research, and follow the steps delineated in this manual. Remember, a compelling business plan proposal has the potential to unlock opportunities for funding and partnerships that can propel your business forward. If you require assistance or additional guidance, do not hesitate to seek help. Your entrepreneurial voyage begins now!

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LARRY KUDLOW: This is what Kamala Harris' 'so-called economic plan' actually looks like

Kudlow unpacks vice president kamala harris' plans for the economy.

Kamala Harris flubbed the most important question of the campaign: Larry Kudlow

FOX Business host Larry Kudlow gives his take on Vice President Kamala Harris’ answers during the ABC News Presidential Debate on ‘Kudlow.’

Kamala Harris flubbed the most important question of the campaign. And a big hat tip to Byron York, the veteran ace columnist of the Washington Examiner. Byron was referring to the economy , which, of course, is the most important issue in the campaign, and that was the first question of the debate, and it went to Harris: "When it comes to the economy, do you believe Americans are better off than they were four years ago?"

Byron York's key point about Kamala's answer was that there was virtually no there, there. 

Her most heralded proposal is a $50,000 small business startup deduction. But actually, under current tax law, which is still the Trump tax cut law, new business owners can already deduct most early stage expenses like payroll and equipment costs. 

Vice President Kamala Harris speaks to a crowd during a campaign event at James B. Dudley High School on July 11, 2024, in Greensboro, North Carolina. (Photo by Sean Rayford/Getty Images / Getty Images)

Startup expenses are usually minimal. And so many small business startups will never spend $50,000, at least at the beginning. In other words, it's a poorly thought out plan. And, of course, she never mentioned her proposal to repeal virtually all of the highly successful Trump tax cuts, including the 100% immediate expensing bonus for the purchase of new machinery and equipment. 

CHAMBERS OF COMMERCE CALL TO EXTEND TRUMP TAX CUTS, AVOID ‘LARGEST TAX INCREASE IN AMERICAN HISTORY’

That bonus depreciation is one of the most powerful, pro-growth policies for large, small, and new businesses. And it looks like Harris would repeal it. Plus, her so-called economic plan raises the top income tax rate to 39.6%, which is what most successful new and small business owners pay. 

Her plan would repeal the 20% small business cost deduction embodied in the Trump plan. Plus, she would jack up the capital gains tax, which rewards successful small business owners. And on top of that, it raises the estate tax, which is another reward for successful small business owners. 

Kamala Harris' flip-flops make her 'uniquely susceptible' to media questioning: Clay Travis

OutKick founder Clay Travis discusses whether Kamala Harris' strategy of avoiding the media will win her the election on 'Varney & Co.'

So she can prattle on about a startup deduction, but really what one hand giveth, the other hand taketh away and then some. You wanna hear a major league tax cut plan for business? Here's Mr. Trump at the New York Economics Club last Thursday.

DONALD TRUMP: "The fifth pillar of my plan is to make the Trump tax cuts permanent. My plan calls for expanded R&D tax credits, 100% bonus depreciation expensing for new money factory investments, and a reduction in the corporate tax rate from 21% to 15% - solely for companies that make their product in America."

That plan led to an increase in cumulative real income pre-pandemic for typical working families of $6,400 during the Trump years, almost 5 times as much as the Biden-Harris gain of only $1,350. Now, the rest of Kamala's so-called economic plan is throwing out $25,000 of free money to buy homes -- which would of course jack up the price of new homes, which are already out of reach for young Americans. 

Home ownership is becoming elusive for young Americans: Lydia Hu

FOX Business' Lydia Hu and Lauren Simonetti discuss America's housing affordability crisis on 'Making Money.'

SOCIAL SECURITY COLA PROJECTED TO BE 2.5% FOR 2025, SMALLEST SINCE 2021

Then she touts a $6,000 refundable child tax credit, which amounts to a guaranteed basic income for those who do not work. That's her so-called opportunity economy.  

Byron calls it "the government giving people taxpayer money so they can pay higher prices." He notes that many economists believe these kinds of proposals are too big, too broad, and not the best use of the money to help those most in need, that according to a WSJ news story. 

By the way, Mr. Trump did double the child tax credit from $1,000 to $2,000, but on top of that, he slashed marginal tax rates for all individuals and, of course, all businesses, thereby providing incentives to work and invest across the board. 

Harris doesn't understand the concept of cutting taxes to stimulate the economy: Steve Moore

Heritage Foundation economist Steve Moore explains the difference between Ronald Reagan's tax cuts and Kamala Harris' plan to raise taxes on 'Making Money.'

Now, Harris also wants to again increase the earned income tax credit, also fully refundable and the most fraud-ridden program in the U.S. government, with an estimated $22 billion in fraudulent or erroneous payments. And then remember in her economic speech in North Carolina, she proposed price controls on food and groceries, and who knows what else, an idea that was ridiculed by economists on both sides of the aisle. 

Plus, her economic package was variously estimated at $2 trillion. Of course, that's on top of the $2 trillion Biden-Harris budget deficit that runs as far as the eye can see. She has never proposed a single reduction in federal spending and has never had an answer for record deficit spending, all of which would contribute to higher, not lower long-run inflation . 

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So with all that, Mr. Byron York concludes that Kamala Harris never answered the question: "When it comes to the economy, do you believe Americans are better off now than they were four years ago?" And for millions of people, undoubtedly, that answer is no. And that's my riff.

This article is adapted from Larry Kudlow's opening commentary on the September 12, 2024, edition of "Kudlow." 

FDIC Eyeing Plan to Protect Customers From Fintech Failures (1)

By Evan Weinberger

Banks will have to closely monitor accounts maintained by third-party fintechs under a plan in the works from a key federal regulator intended to avoid a repeat of Synapse Financial Technologies Inc.’s collapse that saw millions of people lose access to their money.

The Federal Deposit Insurance Corp. is expected to release a proposed rule requiring banks to maintain ledgers of “for benefit of” accounts opened by third-party fintechs so the banks can identify how much end-user money they’re holding, according to people familiar with the matter who were unable to speak publicly about the coming proposal.

Banks would still be able to partner with middleman companies such as Synapse but would be required to have constant access to the third-party ledger and reconcile data each day under the proposal, the people said.

The proposal could come as early as a September FDIC board meeting that has yet to be announced.

FDIC Chairman Martin Gruenberg at a Thursday briefing with reporters said he didn’t want to get ahead of any potential rulemaking, but that the FDIC “may consider regulatory proposals in this regard.”

“The Synapse failure really illustrated the risks to banks and depositors when banks rely on third parties to be the conduit for deposits and the need for adequate record-keeping so that the banks know who the ultimate depositors are,” he said.

Customer Shortfall

Andreessen Horowitz-backed Synapse, which filed for Chapter 11 bankruptcy protection in April, partnered with around 100 fintechs serving more than 10 million customers. The now-defunct company functioned as a banking-as-a-service provider, serving as a middleman for banks and fintechs, including opening FBO accounts at banks for fintech partners.

Synapse partnered with such other fintechs as Juno, Mercury, Yotta, and Dave Inc., including those serving gig workers and crypto investors and providing gamefied banking services.

After Synapse’s bankruptcy, it became clear there were discrepancies between the records Synapse held of customer accounts and those held by its banking partners, such as West Memphis, Ark.-based Evolve Bank & Trust.

Because of those discrepancies, millions of fintech customers have been unable to get their money out of the partner banks, leading to significant hardships, according to filings in the Synapse bankruptcy proceedings.

Evolve and three other banks that partnered with Synapse are still holding on to more than $60 million in unreconciled fintech customer funds, according to an Aug. 29 status report filed by former FDIC Chairman Jelena McWilliams, the Synapse bankruptcy trustee.

Overall, there’s an estimated shortfall of $65 million to $95 million between the money held by Synapse’s partner banks and the amount owed to fintech end-users, according to the report. The banks and others are attempting to figure out where the shortfall occurred.

The Federal Reserve in June issued an order requiring Evolve to get regulators’ approval before entering into any future fintech partnerships.

Regulatory Gaps

The FDIC’s proposal is intended to prevent future calamities following Synapse’s failure. A bank maintaining the FBO ledger or doing daily reconciliation of a third-party ledger would know how much each end-user is owed.

Such real-time reconciliation would also assist the FDIC should it have to step in if a partner bank fails. All of Synapse’s partner banks are currently solvent.

Regulators, including the FDIC and the Fed, have faced criticism for not stepping in to help fintech customers. But third-party BaaS providers aren’t subject to direct supervision or regulation, and the FDIC could step in only if the partner banks failed.

To contact the reporter on this story: Evan Weinberger in New York at [email protected]

To contact the editors responsible for this story: Michael Smallberg at [email protected] ; Rob Tricchinelli at [email protected]

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Court halts billionaire Adani’s proposal to invest in Kenya’s biggest airport

A Kenyan court has temporarily halted the government's plan to grant India's Adani Airport Holdings Ltd. a 30-year contract to operate the country's main airport, pending a final ruling.

• Kenyan court temporarily halts government's plan to grant Adani Airport Holdings a 30-year contract to operate Jomo Kenyatta International Airport.
• Law Society of Kenya and Kenya Human Rights Commission contest that the government's decision, arguing that the deal violates the constitution.
• Adani's proposed deal is considered 'unaffordable' and could lead to job losses, disproportionate public fiscal risk, and little value for taxpayers.

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A Kenyan court has temporarily halted the government's plan to grant India's Adani Airport Holdings Ltd. a 30-year contract to operate the country's main airport, pending a final ruling, Bloomberg reported.

The High Court issued an order preventing any action or implementation of the proposal by Adani until the case is resolved, according to Faith Odhiambo, president of the Law Society of Kenya, which applied.

The Law Society of Kenya and the Kenya Human Rights Commission, a non-governmental organization, are contesting the government's decision to lease Nairobi's Jomo Kenyatta International Airport to Adani Airport Holdings. They argue that the deal violates the constitution and are challenging the government's authority to proceed with the lease.

What the organisation said:

“Leasing the strategic and profitable JKIA to a private entity is irrational” and contravenes the constitutional principles of “good governance, accountability, transparency, and prudent and responsible use of public money,” they said in their filings.

The Law Society of Kenya and the Kenya Human Rights Commission also contend that the $1.85 billion deal between the government and Adani Airport is "unaffordable" and could lead to job losses, disproportionate public fiscal risk, and little value for taxpayers.

According to their filings, they argue that Kenya can raise funds independently to expand Jomo Kenyatta International Airport without committing to a 30-year lease.

Under the terms of the build-operate agreement, Indian billionaire Gautam Adani’s company would be responsible for upgrading Jomo Kenyatta International Airport, East Africa’s busiest aviation hub. The deal includes constructing a second runway and a new passenger terminal.

The Kenyan government has defended the arrangement, arguing that the airport is currently operating beyond its capacity and urgently requires upgrades. In July, Kenya Airports Authority’s acting Managing Director, Henry Ogoye, emphasized that the proposal would undergo rigorous technical, financial, and legal reviews to ensure it aligns with the nation's public-private partnership laws.

Henry Ogoye highlighted that the investment needed for the project is "significant and cannot be funded with the prevailing fiscal constraints without recourse to private funding. "

Adani Airport, controlled by Asia’s second-richest person, Gautam Adani, already manages a portfolio of eight airports in India, dominating over 50% of the top 10 domestic routes. The company's airports handle 23% of Indian air traffic and serve 20% of the total passenger base.

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Wall street investors worry kamala harris tax hike will crater corporate earnings: report.

Wall Street is worried about a hit to corporate earnings if Vice President Kamala Harris wins the presidency in November as the Democratic nominee has vowed to hike taxes, according to a report.

While Harris has faced criticism for taking too long to release her policy ideas and avoiding interviews with the press, she has made clear her stance on raising the corporate tax rate to 28% from 21%.

The corporate tax hike will ensure “big corporations pay their fair share” since they are “often paying a lower tax rate than our teachers and our nurses and our firefighters,” Harris has said.

Meanwhile, Trump has proposed further lowering the corporate tax rate. 

He cut the tax rate to 21% from 35% during his presidency.

If re-elected, Trump wants to cut the tax rate to 15% for companies whose products are made in the USA, he has said.

As Harris and Trump prepare to face off in November, Wall Street’s eyes are on their economic policies. 

“Tax policy is a huge, huge concern for investors,” BMO US Wealth Management CIO Yung-Yu Ma told Reuters . “Tax policy is something that is front and center in this election.”

Harris’ proposed 28% tax rate would deal a 5% hit to S&P 500 companies’ earnings, while Trump’s cuts would raise earnings about 4%, Goldman Sachs analysts warned in a note last week.

Harris’ higher taxes would likely crater corporate profits and lower stock valuations, Ma said.

“Essentially, what you have is the likelihood of a significant pullback in the stock market due to higher taxes,” Ma told Reuters.

The Democratic nominee proposed raising the capital gains tax rate – which is a tax on profit that was made by selling something that appreciates over time, like stocks or gold.

Harris wants to raise the tax rate for those earning more than $1 million to 28%, a smaller increase than Biden’s plan to raise the rate to 39.6%.

Harris has argued lowering the capital gains rate would sway investors to put more money into startups and small businesses. 

Trump has not said whether he wants to change the rate from its current maximum of 20%.

“In terms of revenue for the government, capital gains tax hikes have typically under-delivered,” Brian Gardner, chief Washington policy strategist at investment bank Stifel, told Reuters. “But it would be a broad negative for the market. How much is tough to say.”

Morgan Stanley said the correlation between capital gains taxes and the stock market is insignificant, but the tax debate could spark market volatility in the meantime.

Some of Harris’ proposed tax hikes would likely be struck down if Republicans flip the Senate, resulting in a market gridlock, Mahoney Asset Management CEO Ken Mahoney told The Post.

“She would most likely try to circumvent and use executive orders, like her predecessor,” Mahoney said.

He warned Harris’ executive orders may not be “business or economic friendly.”

The Harris campaign did not immediately respond to requests for comment.

While Trump’s tax proposals are widely regarded as better for businesses, economists worry his plans may reheat inflation and raise the national deficit. 

“All the models seem to believe that Trump would increase deficits by more than Harris,” Bruce Mehlman, partner at bipartisan government relations firm Mehlman Consulting, told Reuters.

“Businesses and corporations prefer lower than higher taxes. But there is just general recognition that sooner or later, we’re going to have a debt crisis.”

Goldman Sachs has said the economy would be best served by a Democratic White House and Congress, since Trump’s proposed higher import taxes and stricter immigration policies may hamper economic output.

Some of Trump’s 2018 tax cuts will expire next year, but he plans to extend them if he is re-elected.

“When President Trump is back in office he will make the Trump tax cuts permanent, slash the corporate tax rate for companies that put American interests first, and make America affordable and wealthy again,” Trump campaign National Press Secretary Karoline Leavitt told The Post in a statement. 

Harris has said she would leave the tax cuts in place only for those earning less than $400,000 annually. 

“That current tax law sunsetting at the end of next year is at the center of so many questions we’re fielding from clients,” Nicole Webb, senior vice president at financial planning firm Wealth Enhancement, told Reuters. “It’s on the forefront of a lot of people’s minds.”

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Harris Economic Plan Focuses on Prices, a Key Vulnerability

Vice President Kamala Harris has been balancing the challenges of defending “Bidenomics” and charting her own course on the economy.

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By Alan Rappeport and Andrew Duehren

Reporting from Washington

As Vice President Kamala Harris unveiled her economic plans in recent weeks, former President Donald J. Trump has accused her of being a Marxist, a communist and a socialist.

When they meet on Tuesday night for their only scheduled presidential debate, Ms. Harris will have the opportunity to rebut those claims and confront Mr. Trump about his record of managing the U.S. economy.

She will also lay out her vision, which has been challenging as she tries to defend “Bidenomics” and demonstrate that she has a plan to chart a new course amid widespread economic discontent among many Americans who are struggling with high prices and other affordability issues.

In a compressed presidential campaign, Ms. Harris indicated that she would continue many of President Biden’s policies, which aim to raise taxes on companies and punish them for price gouging , while also trying to strike a more business-friendly tone. In some cases, such as her embrace of ending taxation of tips, the vice president has even shown a willingness to adopt the policies put forward by Mr. Trump.

How Ms. Harris would ultimately govern if elected will depend largely on the makeup of Congress, but her initial suite of proposals — from taxes to trade to child care — suggests that she would take the economy in a vastly different direction than her Republican opponent.

Cost of Living

Perhaps Ms. Harris’s biggest political vulnerability is the run-up in prices that occurred during the Biden administration. Mr. Trump has repeatedly blamed the vice president for causing inflation to surge after the coronavirus pandemic, a phenomenon that stemmed from a mix of factors such as supply chain issues, Russia’s invasion of Ukraine and repeated bursts of fiscal stimulus to keep families and businesses afloat. The higher cost of goods initially hurt Mr. Biden when he was running against Mr. Trump, and Ms. Harris is now facing many of the same concerns from Americans who are feeling negative about a relatively strong economy.

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