What is a business proposal?
A business proposal is a document that outlines a commercial arrangement or relationship between two people.
It can take into account all manner of different types of relationships. A business proposal may be between one individual sending a proposal to a bank or financial institution for funding, or it could be from a company asking a supplier to do business with them.
A good business proposal will outline the workings of the relationship and also address the finance side of things - or at least where value is derived.
How does a business proposal work?
Depending on the proposal, each business proposal format will work slightly differently. The aspired for end result is the same for each document however. The aim is to secure a yes from the person who is receiving the proposal. When writing a proposal therefore, it is key to include all necessary information a potential business partner will need to make a fully informed decision as to the viability and suitability of the prospect in question.
It is crucial to include information that explains what the problem is that your business proposal will solve. You need to also include why your solution is the best way to solve that problem and why you are the best suited to prove that solution. Including the structure of any prices or fees and how much profit you intend to make in the coming years is also vital. Explaining your terms and conditions is also necessary within a business proposal.
Business proposals tend to start with an executive summary that simply summarizes all of these details. You may also want to detail in the proposal who you are, what your qualifications are and any other interesting personal details with regards to your business.
Advantages of a business proposal
Perhaps the most obvious advantage of a good business proposal is that it secures you more funding or a business partnership that will materially help your company. However, the other advantage of a business proposal that is well written is that you should have a choice of people to go to or a very good chance of success.
And, a business proposal can also help focus a business’s intentions. It can be a good opportunity to highlight any issues with the company that are a good idea to iron out before submitting a proposal, as well as remind you of your ultimate aim for your company or what it should be.
Contractbook and business proposals
Contractbook is a good place to go when writing a business proposal as you can use your business proposal as a means to start formulating contracts using our software, should your business proposal be successful. Doing so will dramatically cut down on the amount of time taken cementing a business relationship into a reliable contract - meaning you can start deriving those improved profits or value almost straight away.