How to Write a Business Proposal ?

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How to Write a Business Proposal ?
Learning how to write a business proposal is
critical to winning new business. In this
article, you will learn how to start a business
proposal, how to write a business proposal
effectively, and how to conclude a business
proposal with a persuasive ending. Mastering how
to write each of these business proposal areas
will help you deliver a well-structured,
well-defined solution for your RFP response. We
want to make sure you have everything you need
to be successful. Several other areas will be
addressed as you read including how to understand
the customer, how to evaluate your competition,
and how to leverage the right resources to
finalize the business proposal prior to
deadline. What is a business proposal? A
business proposal is a solution-oriented document
that organizations write in response to a
request for proposal (RFP). External
organizations and government agencies will
solicit RFPs to procure resources for a project
or need that they cannot fulfill with internal
resources only. Organizations that receive and
respond to the RFP bidders submit business
proposals to bid on the opportunity to win the
business contract. A business proposal contains
specific and detailed information including an
Executive Summary, Technical Proposal, Cost
Proposal, and supporting information like Terms
of Agreement and attachments. How to Start a
Business Proposal Truthfully, gaining new
business begins well before an RFP is released.
Think about how any other agreement happens. If
someone knows you, they are more likely to be
receptive to what you have to say or offer.
External organizations are more likely to choose
partnership with companies that are familiar and
offer the right solutions. It is recommended that
you build a relationship with the customer and
the decision makers over time rather than just
rely on your proposal.
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• Grab customer attention right from the start with
  your business proposal when you show
  understanding of the customer, the customer
  background, and the customers industry. That
  means starting the business proposal does not
  begin with jumping into writing. It starts with
  good old-fashioned relationship-building,
  evaluation of the opportunity, and review of the
  RFP.
• Heres how to start the business proposal once
  you have the RFP
• Step 1 Read the RFP
• Thoroughly review the client-issued RFP. The RFP
  will contain pertinent information related to
  the clients requirements, the contract terms,
  and the project that needs support. Understand
  every nuance of the RFP to ensure you know how to
  write a business proposal. If limited on time,
  an RFP software with an RFP Parser will save you
  substantial time.
• Verify that you can meet the client requirements.
  There are some areas that may inhibit your
  ability to effectively respond to the RFP with a
  business proposal. For instance, if you cannot
  meet the allotted budget or given timeline, then
  you ought not submit the proposal. Otherwise,
  consider partnering with an organization that can
  help you close requirement gaps.
• Gather questions to ask the client. Prior to
  starting the business proposal, get as much
• clarity as needed on the client requirements, the
  RFP itself, and any other questions that are
  permitted to send to the Purchaser or RFP
  personnel. Some of the questions you may want to
  think about are
• Were there any prior attempts made to address the
  issue. If yes, what were the results?

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• What are the evaluation criteria for proposal
  submissions? Specify the evaluation
• process.
• What are your concerns about the current vendor?

• Step 2 Format Your Business Proposal
• Format the document properly according to client
  and your organizational standards. Think about
  the font size, color, page usage, outline, and
  all other components that will make the business
  proposal readable. You can format your layout
  before writing the bulk of the business proposal
• with a proposal management software.
• Fonts. Generally, serif fonts are business
  appropriate and grey font helps with readability.
  Sometimes a client RFP will specify these
  details. If not, it is recommended that you use
  Times New Roman at 12 point.
• Templates. Look for sample proposals used in the
  industry, created by your competitors,
• or even client-awarded proposals to get an idea
  of business proposal layout. There are plenty of
  business proposal templates online to help you
  make the proposal look professional.
• Title Page. Most business proposals will have a
  title page or cover page. The title page
  comprises your organizations name, the
  point-of-contacts name, the name and
  organization we are submitting the proposal to,
  the RFP number, and the due date.
• Step 3 Introduce the Problem
• Introduce the client problem as soon as possible
  in your business proposal. Your business
  proposal is meant to recognize the problem and
  detail your solution. Usually business proposals
  identify the problem in simple and clear language
  immediately in the Cover Letter, and then again
  in the Executive Summary. Tailor your
  introduction of the problem to the clients
  industry and the RFP to show your understanding.
  Then introduce your solution.
• Establish the context. Introducing the problem
  helps you establish the context for the
  proposal. You must remember that the reader and
  the evaluator read hundreds of proposals all the
  time. Make it easier for them to qualify your
  business proposal.
• Define terminology. Your business proposal must
  be tailored to the client, which means
• you should use their terminology and clearly
  define your organizations terminology as

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well. With that stated, keep the business
proposal as simple as possible. No need
to overfill with industry jargon. Step 4
Define a Roadmap Business proposals are lengthy
documents. Provide an overview of the business
proposal components (beyond just the Table of
Contents). Make sure to use the section titles
and wording that is outlined in the RFP. A great
place to define the business proposal roadmap is
in your Cover Letter. Heres an example Part I
of this response to RFP No. includes the
Executive Summary and Company Background. Part
II offers the proposed solution, timetable, and
an explanation of benefits in detail. The
itemized budget and a set of standard contract
terms is provided in Part III. Finally, in Part
IV, we summarize our experiences and
solution. How to Write a Business Proposal
Effectively Research plays a major role before
you can learn how to write a business proposal
effectively. Research and analyze your product,
your market, and understand your objective.
Consider spending twice as much time
researching, analyzing, and evaluating as you
spend writing the business proposal. Afterward,
your business proposal must contain very
detailed, yet concise information. For the sake
of brevity, represent the solutions benefits or
other lengthy information in bullet points where
possible. Here is what you want to do Step 1
Suggest a Detailed Solution with Graphics Once
the problem you are trying to solve is
identified, your proposal must show and tell the
proposed solution. Try to be as clear as possible
and demonstrate the value of your products or
services. Rather than just say your organization
can do XYZ, provide detailed examples and
proof points that support your claims. Show the
solution with tailored graphics that catch
attention and provide a visual way to understand
your explanation. Step 2 Explicate the
Benefits of Your Solution There is more than one
way to solve a problem, and your reader knows
that. An effective business proposal persuades
its reader that the proposed solution is the best
because the benefits will be clearly
defined. Benefits that resonate with proposal
evaluators include cost savings, professional
expertise of the solution team, and outcomes
from tailored procedures. Step 3 Provide
Evidence for Benefit Claims Adding case studies
and past performance to your proposal are strong
forms of evidence. If there are no previous
studies, then observation from prominent people
in the industry or previous customer
recommendations will suffice. A former customer
could testify that you saved their business
money with the XYZ solution.
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• Step 4 Outline Your Solutions Schedule
• Your reader wants to understand the solution and
  how and when you will implement it if awarded
  the contract. Explain the timeline for the tasks
  that need to be completed. It is possible that
  your schedule will adjust in the future, but
  that is understood. In fact, explain that your
  solution is flexible to meet changes to clients
  needs. A solution schedule helps the reader
  understand how solution execution will fit into
  business objectives. Your outline should
• Summarize key milestones. For example, if you
  propose a solution to remodel a store, then you
  would include the start date for project planning
  and execution and when the store will be
  reopened to the public.
• Emphasize flexibility. Over Explain that the
  proposed solution schedule is an estimate
• that may change to ensure your organization is
  not held liable for missed milestones.