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How to Form A Business Proposal

business proposal

Business proposals are invaluable, persuasive sales documents designed to help win additional contracts, secure vital funding, and form new business partnerships.

A perfectly-crafted business proposal can often mean the difference between winning or losing a deal. However, writing a winning business proposal can be intimidating, even for the most experienced business owners.

In this article, we outline the basic structure of a business proposal so you can begin writing your own.

What is a business proposal?

A business proposal is a written document that outlines a proposed business idea, product, or service to potential clients, investors, or partners. It is a persuasive tool to present and promote your business to help secure funding, expand projects, and grow your business.

Typically, a business proposal outlines the following:

  • Who you are and what your company does.
  • What problems your buyers are facing.
  • How your business serves as a solution to their problem.
  • The strategy you will follow to implement your solution successfully.
  • The financials related to the project.

How to form a business proposal

A business proposal is a professional document and therefore needs to be structured sophisticatedly. Follow these steps to ensure your business proposal hits all the right notes.

Step 1: Write Your Executive Summary

The executive summary is a brief rundown of what your document entails. The purpose of an executive summary is to provide a clear and condensed summary of the proposal, and it should include the following:

  • Why you have written the proposal.
  • Your primary objectives.
  • A summary of your key points.

Your summary only needs to be an overview of the document to generate interest, so keep it short and sweet.

Step 2: Introduce Your Business

To establish credibility and build trust, provide your reader with relevant information about your company, including its mission, vision, values, and expertise.

Step 3: State the Problem

Clearly state the problem or need that your proposal aims to address. This should be focussed on the problems and challenges your reader is facing and must be personal to them.

Step 4: Propose Your Solution

Once you have outlined the problem, you need to propose your solution. When selling your proposed solution, you should highlight how it addresses the problem, its advantages, and how much value it will provide the reader.

Step 5: Outline Your Approach

In this section, explain how you plan to execute the proposed solution to their problem. Be sure to outline the steps and strategies you will employ to achieve results in a detailed and structured manner.

Step 6: Create a Timeline

Present a timeline detailing the key milestones, deliverables, and estimated timeframes to help the reader understand when they will likely see your actions.

Step 7: Present the Financials

Provide a detailed breakdown of any expenses related to your proposal, such as:

Cost of the project.

  • Any upfront costs.
  • Any ongoing fees.
  • Return on investment analysis.
  • Your payment terms.

Step 8: Sell the Benefits

Clearly articulate your proposal's benefits and value for the reader. Highlight how your solution or idea solves their problem and fulfils their needs.

Step 9: State the Risks and How Your Plan to Mitigate Them

Identify potential risks and their impact, challenges, or limitations associated with your proposal and outline strategies to mitigate them.

Step 10: End with Your Conclusion

Summarise the main points covered within your proposal by reiterating the benefits to encourage them to choose you.

Remember, a well-structured and persuasive business proposal should effectively communicate your ideas, demonstrate your expertise, and convince your reader that you are the solution.

Whether you are just starting out as a limited company, you already have an existing company, or you'd like to explore the possibility of purchasing an existing or vintage company, our team can help you. Call us on 0800 0198 698 or 020 8883 6161, visit or click the chat box on the bottom right of this page.

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