7 Steps on How to Write a Business Proposal

How to Write a Persuasive Business Proposal: 7 Effective Steps

  • InCorp Editorial Team
  • 1 August 2024
  • 7 minute reading time

A well-structured business proposal is essential in securing new clients and driving business growth. It is a comprehensive document outlining your company’s capabilities, proposed solutions, and value proposition. 

This article explores actionable steps to create a compelling proposal that resonates with your target audience and enhances your chance of closing the deal.

What is A Business Proposal? 

The quality of your business proposal can determine whether you win or lose a client. A poorly crafted proposal may complicate the solution, overlook customer details and needs, ignore proper grammar and style, and hinder your company’s progress. However, what is a business proposal?

A business proposal is a written and structured offer of a product or service, usually sent to potential customers and the current client if the company aims to upsell an additional product or service.

Business Plan Vs. Business Proposal

Entrepreneurs must be familiar with a business plan as they engage in this activity daily. However, let’s distinguish it from a business proposal. What are the differences between these two?

A business plan outlines your company’s executive and operational structure to secure financial support from investors or facilitate long-term growth for other stakeholders.

On the other hand, in crafting a business proposal, company representatives typically work closely with the customer to develop an attractive proposition for both parties. 

A business plan proposal is usually a written document detailing the services and associated costs for fulfilling a request. It can also include electronic contracts.

Types of Business Proposals

There are several business proposals, but generally, they can be categorized as solicited or unsolicited. Let’s explore these categories in further detail in the list below:

1. Unsolicited Proposal

It creates a general proposal that includes an introduction to your company, its expertise, terms for cooperation, partnership programs, and other business-related information.

It is used when your company, for example, conducts a lead generation campaign and wants to inform your potential client about your services.

2. Solicited Proposal (Informal) 

Company A shows interest in your products after an informal conversation. They request a document detailing product quality, shipping terms, pricing, and other information, with no obligation to respond.

3. Solicited Proposal (Formal) 

Company A, a regular client, plans to place an order and wants to verify terms before payment. They request a business proposal with item names, prices, and shipping details.

Upon receipt, Company A must respond within an agreed period. If accepted, the proposal becomes a legally binding agreement.

How to Write A Business Proposal

7 Steps on How to Write a Business Proposal

Before drafting your business proposal, it’s essential to understand the prospective company thoroughly.

After conducting your research, you can start writing your business proposal. Although there is no universal format, most proposals contain several key elements:

1. Title Page

The title page should convey basic information about you and your business, such as your name and the company’s name. It sets the tone, so ensure it is professional and visually appealing.

2. Executive Summary

The executive summary clearly articulates the purpose of your proposal and why your solution is ideal for the client. It outlines the benefits of your products or services and demonstrates how they solve the client’s challenges.

3. Problem Statement

Summarize the issue the potential client is facing. This demonstrates your understanding of their needs and the problems they want to solve.

4. Proposed Solution

Tailor your solution to the client’s needs, showing that the proposal is created specifically for them. Include details such as:

  • Deliverables you will provide
  • Methods you will use
  • Time frame for the solution

5. Qualifications

Communicate why you are the best choice for solving the client’s problem. Highlight your expertise with case studies, client testimonials, relevant awards, and industry accreditations.

6. Pricing Options

Pricing can be tricky; however, offering a clear breakdown is essential. It should include, but not be limited to, detailed pricing information with packages, options for different budgets, and comparisons with competitors.

7. Conclusion

Conclude by summarizing the proposal, reiterating your qualifications, and emphasizing why you are the best choice for the client. In addition, you should use PDF format for your business proposal to ensure compatibility and professional presentation across different devices and platforms.

Business Proposal Examples

Here are some examples of business proposals designed to inspire you and provide a clear framework for creating your compelling proposals.

1. Creative Business Proposal

This business proposal template utilizes shapes, circles, and arrows for a creative touch. It also includes placeholder images and data widgets to ensure clear and digestible information. Elevate your brand’s image with this visually appealing template.

2. Copywriting Business Proposal

This proposal features customer testimonials to build trust and a roadmap to outline project phases and dates. It helps copywriters and marketers craft compelling narratives and attract their target audience with engaging copy.

3. Digital Marketing Business Proposal

This kind of template showcases services in an organized, vibrant manner. It uses data widgets like progress bars and icons for clear data presentation and service explanation.

Tips for Writing A Business Proposal

If you find a business proposal helpful document, follow these tips to create your own:

1. Develop an Outline

Include all essential elements to explain why a company should hire you, but keep your message simple. An outline will help structure your presentation effectively.

2. Maintain Brand Consistency

Reflect on your company’s brand throughout the proposal to set you apart from competitors.

3. Review Your Content

Ensure your proposal is clear, concise, and direct. Since potential clients may need more time for a thorough review, make your message straightforward.

4. Incorporate Graphics and Data

Include enough graphics to complement each section and use data to enhance client interaction and strengthen your message.

5. Add Customer Testimonials

Share customer stories and testimonials to convey your story and promote your brand, helping prospective clients understand the value of working with you.

6. Simplify the Process

Make your proposal easy to understand, engaging, and actionable. Include a clear call to action and provide all necessary contact information.

Business Proposal Ideas

These business proposal strategies can give you a competitive advantage in a crowded market. Here are key ideas to consider:

1. Personalize Your Proposal

Tailor each proposal to address the recipient’s specific needs, demonstrating your understanding of their challenges.

2. Create a Proposal Website

Impress clients with a dedicated proposal website that showcases your company, highlights expertise, provides easy access to information, and adds interactivity.

3. Design with Multiple Start and End Points

Customize your proposal with various entry points and allow readers to choose their path, making it more engaging and relevant.

4. Utilize Direct Mail

Stand out with personalized direct mail elements like handwritten notes or small gifts, showcasing your attention to detail.

5. Involve an Influencer

Boost credibility by having influencers present or endorse your proposal, adding authority and trust.

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Streamline Your Indonesian Market Entry with InCorp

Once you’ve refined your business proposal strategy, it’s time to leverage it to generate leads effectively. If Indonesia is on your radar as a potential market, InCorp offers comprehensive support to streamline your market entry with:

Maximize your operations across Indonesia’s dynamic market by completing the form below.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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Frequent Asked Questions

There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.

Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.