Writing a Business Proposal
Writing a Business Proposal
A business proposal is primarily a marketing document describing what the company will do and how it intends to do it. It will tell potential investors why they should invest their money in your company. A business proposal convinces management and investors that the company is worthwhile and the product is worth building. Writing a proper business proposal is critical for any business person considering making a significant investment or expansion, as a business proposal should be clear, concise, comprehensive, compelling, simple, and easy to understand as possible.
1. Gather Relevant Information
According to Shalom Lamm, a business proposal must include detailed information about the business and its structure. This needs to have numbers of market share, expected growth rate, financial and other relevant information that proves the company can be profitable.
2. Write the Introduction first
Create a professional-looking title page with your business name, logo, contact information, and the date for distributing the proposal. Your proposal will be prepared on paper; it needs a professional-looking format to make it look credible. This is important in creating your business proposal to make the best impression on potential investors.
3. Write the Executive Summary first
This is an overview of the business proposal, organized in bullet points that should be in a human-readable format, not just a list of numbers. The executive summary should present your business value proposition and describe your product in as few words as possible. It should include a discussion of the market opportunity and your strategic goals. The executive summary should be one page.
4. Write the Business Case
It is essential to thoroughly understand your target customer, why your business is needed, and how it will improve your customers’ lives for more value. Describe how the product will change people’s lives by offering new services, faster and safer delivery, and improved quality products. Proposals should be persuasive, build credibility and give a strong case for why one should invest in your business proposal. Proposals should explain why your product is essential to the company’s success.
5. Include pricing options
Describe in detail how the product will be priced, the gross margins, cost per unit, and delivery time. The proposal should include the key drivers of profitability and how it can be achieved. It should also explain why your pricing will make a difference.
6. Editing Your Business Proposal
Editing your business proposal is essential, especially for the introduction, executive summary, and business case. The first paragraph of a bid is the most critical and should grab your audience’s attention from the beginning. It should clearly state your proposal’s importance and how it will affect your customers or users.
7. Make Concluding Comments
This final written statement summarizes all of your information in one paragraph. It should include a unique call-to-action that gets the investor’s attention and reinforces your main point. Concluding comments are important because they will provide a sense of urgency which could lead to action.
According to Shalom Lamm, a proper business proposal should contain the relevant information to help convince one that your company is the right choice for them. It should include a crystal-clear executive summary that describes why your product is essential to their success. The executive summary must be short, simple and emphasize your main point. A good business proposal must include a detailed description of how to deliver your service or product.