⚡ Get All Content for 20% Off ⚡

Creating Knock-Out Business Proposals Taking the time to tailor your proposal makes all the difference in the eyes of a client.

By Stever Robbins

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Q: My business is up and running and doing pretty well. A prospective customer told me I needed to submit a business proposal to them. Is that the same as a business plan? If not, what's the difference?

A: A business plan isn't the same as a business proposal. Both are used for sales, but it's important to understand the differences. A business plan is used to sell your business to investors. It outlines your business, your management team, your market and how you intend to deliver your product or service. On the other hand, you use a business proposal to offer your product or services to a client. Proposals address a specific need of a specific client. As with a business plan, a good proposal demands careful attention

Before writing a proposal, do your homework. Who are you writing for? What is the problem your customer is trying to solve? Do they have any special needs or requirements in the timing or format of your proposal? If your customer is the government, you will find they have specific formats and time tables you must follow to be considered as a vendor candidate. Many companies let you submit a free-form proposal, but if they ask for a certain format, follow it. For example, a company I do business with had asked five Web design firms to bid on a project. They asked that the proposal follow a certain outline with a development and deliverable timeline. Three firms submitted proposals that didn't follow the outline and didn't even address the timeline requirement. The company discarded those proposals. They thought that a firm that couldn't meet the specs for a proposal wasn't likely to produce a final product that met specifications.

Within the proposal itself, you need to introduce your company, in similar fashion to an executive summary, outlining who you are and what you do. But rather than outlining your entire business, your main purpose is to establish credibility. Let your prospect know a bit about what you've done before and why it prepares you to fulfill this client's needs.

Also summarize the problem being solved. Use the client's own language and terminology, and make sure you understand how the client views the problem. Then discuss how your product or service solves it.

Pay attention to logistics as well. If you're delivering a product, let the client know how, where and when to expect fulfillment. If you're delivering a service, address your timetable and the terms of your service delivery. If your prospect has any special logistics needs, address those.

A good proposal demonstrates that you understand how your client thinks: how they think about their problems, special needs they have and so on. The more your proposal meshes with the way the client thinks about the problem, the easier it will be for the client to see that your product or service meets their needs.

As an entrepreneur, technologist, advisor and coach, Stever Robbins seeks out and identifies high-potential start-ups to help them develop the skills, attitudes and capabilities they need to succeed. He has been involved with start-up companies since 1978 and is currently an investor or advisor to several technology and Internet companies including ZEFER Corp., University Access Inc., RenalTech, Crimson Soutions and PrimeSource. He has been using the Internet since 1977, was a co-founder of FTP Software in 1986, and worked on the design team of Harvard Business School's "Foundations" program. Stever holds an MBA from Harvard Business School and a computer science degree from MIT. His Web site is a http://www.venturecoach.com.


The opinions expressed in this column are those of the author, not of Entrepreneur.com. All answers are intended to be general in nature, without regard to specific geographical areas or circumstances, and should only be relied upon after consulting an appropriate expert, such as an attorney or accountant.

Stever Robbins is a venture coach, helping entrepreneurs and early-stage companies develop the attitudes, skills and capabilities needed to succeed. He brings to bear skills as an entrepreneur, teacher and technologist in helping others create successful ventures.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Remote Side Hustle a 43-Year-Old Musician Works on for 1 Hour a Day Earns Nearly $3,000 a Month: 'All From the Comfort of Home'

Sam Ziegler wanted to supplement his income as a professional drummer — then his tech skills and desire to help people came together.

Business News

Costco CFO Reveals Uncertain Fate of $1.50 Hot Dog and Soda Combo

CFO Richard Galanti reveals that the price will stay the same — but only "for a while."

Business News

The Most Unexpectedly Popular Side Hustle of the Decade Has Low Startup Costs and High Markups

A new report shows that vending machines are a popular investment — and the industry is set to grow up to $3 billion by 2031.

Marketing

Ever Wonder Why Certain Websites Rank Higher Than Yours? This SEO Expert Reveals The Secret to Dominating Search Results

It's often the smart use of SEO, now supercharged with AI, particularly in keyword optimization.

Business News

AI Is Impacting Jobs. Here Are the Gigs Affected the Most, According to an Analysis of 5 Million Upwork Postings

The researcher said in the report that freelance jobs were analyzed first because that market will likely see AI's immediate impact.

Leadership

Former Interrogator Shares 5 Behaviors Liars Exhibit and How to Handle Them

Five deceptive behaviors to look for and how to respond to those behaviors when you encounter them.