Basic Elements of a Business Proposal
Before submitting your proposal to your prospective client, include these elements and tips to close the deal.
Key Takeaways
A business proposal is a value proposition on paper.
The business proposal is a document that offers a service or product to a potential client or buyer.
The 10 basic elements of a business proposal:
Step 1: Title Page
Basic information like company name and client name. Dates, logos, and title.
A title page includes basic information like your company's name, your potential clients name, contact information, your company's logo, date, and title. It makes the proposal look neat, organized, and well put together. You wouldn't walk up to a potential client and dive into the specifics of the project without introducing yourself.
Step 2: Cover Letter
Introducing how business came to be. What makes you better than your competitors? Encourage the reader to reach out with out question.
Step 3: Table of Contents
A place the reader can go to to navigate through the proposal easily. They will know what to expect in the document. If you send the proposal as a PDF, make the table of contents clickable so that the reader can easily jump to sections without having to navigate through multiple pages.
Step 4: Executive Summary
An executive summary is the introduction to the proposal. It contains a brief statement describing what will be further detailed in the coming document.
Be sure to make it look relevant and engaging, by addressing your potential client’s needs. The executive summary should be modified for every potential client depending on the type of business and kind of industry they are in. For example, if you're targeting a company that caters to college art students, you might use a more casual package with industry jargon and humor.
Step 5: Business Proposal
General overview of the custom made solutions you have have compiled for the potential client. Describe the anticipated outcome of the project and general timeframe. Address the potential clients needs and let them know you’re the one for the job.
Step 6: Service & Methodology
Anticipate your clients questions and take them through the process so they know what they’re signing up for. Describe exactly what product or services your customer will obtain and when they can expect to get them. A timetable that shows deliverables with expected dates makes the information more digestible.
Step 7: About Us
The about us section is where you get really sharp. What makes your company the best. Make it feel like your prospect is getting to know your organization by including brief bios and photos of the people they'll be working with. Include information about past successes, awards, social proof in the form of customers testimonials and short case studies.
Step 8: Pricing
In this section, specifics are vital. Create a pricing table that clearly identifies each product or service, and pair it with the most accurate pricing information you can provide. Remember, you don't want to overestimate the cost and scare off your prospect with high figures. At the same time, you don't want to underestimate the cost and low ball yourself.
Step 9: Terms & Conditions
This section is an overview of what you promise to deliver once they agree to the proposal. Specify when and how the agreement can be amended, payment dates, and method of payments. It is likely that terms and conditions will be standard in most of your proposals, so store a copy of this in your content library for future use.
Step 10: Agreement & CTA
This is the document your buyer will sign when they agree to to the terms and conditions and would like to move forward with the proposal.
The aforementioned structure may be a little bit more complicated than you expected. Actually, business proposals are more complex than they look at first glance, and doing them right means investing some time. However, if something feels repetitive or unnecessary, remove it from your business proposal.
Here are some tips to make your business proposal more appealing to the reader:
Tip 1: Visual Content
Visual content attracts more attention. Our brains process visuals 60,000 times faster than text. Help your reader get to the good stuff quicker. Use, infographics, photos of your work, and bulleted lists.
Tip 2: Quantitative Data
Numbers don’t lie. Use numbers to pain the picture. For example, instead of saying “customers love us” say: “we’ve helped more than 8000 companies increase sales by 35% to date.” Figures catch the eye and help build trust. In fact, this tactic works so well that you should include it in most of your documents.
Tip 3: Embrace the Digital
Nobody likes getting thick envelopes in the mail. By sending your proposals electronically, you can include videos about your product or service, easily annotate, and give your prospect the ability to sign electronically.