Company Description/Overview
Products/Services Offered
Market Analysis
Marketing and Sales Strategies
Operations and Management
Financial Plan
Appendices
A business plan is a detailed document laying out how the business will function and develop in its first few years. The key is the “plan” part of the name, as it will specify how you will launch, gain customers, operate, make money, and, with any luck, expand.
Yet what many first-time business owners seem to forget is that a business plan is not a static document. The initial version is based largely on assumptions, supported by research. But as you run your business you’ll learn what works and what does not and make endless tweaks to your plan.
Thus, creating a business plan is not a one-time action – it’s a dynamic and continuous process of crafting and adapting your vision and strategy.
A business plan is generally much more detailed and broader than a business proposal, and has several elements :
A business proposal is created in connection to a specific business deal being offered by one party to another. As mentioned, when you take a business plan to an investor, you’re proposing a business relationship, so in this case a business plan and a business proposal are much the same.
But a business proposal could also be for others purposes, including:
A business proposal may offer specific terms for the potential relationship, or it may be just about the benefits the relationship will bring, with terms to be negotiated later. Essentially, it’s a sales tool to get people or companies to do business with you in some way.
Business proposals can be structured in various ways, but usually, they’ll include a summary of what your company can offer, a scope of the work to be done together, and sometimes, a price quote or a proposed structure of the business relationship.
Clearly, a business plan and a business proposal are similar – and can even be one and the same. At the same time, they can also serve very different purposes. Unlike a business plan, a business proposal can have a variety of aims and thus does not have a “one size fits all” structure.
Whichever one you need, be sure to take your time with the research and writing so your business has the best chance for success.
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When you start a new business or own a young company, you often hear terms like business plan or business proposal. But the question is: do you need a business plan? Or is it a proposal that you need? Or both?
Being new to the game, these terms can seem quite intimidating, and you probably don’t know where to start.
Don’t worry. We’ve created a simple business plan vs. business proposal comparison so you can determine which one to prioritize.
Let’s start by defining them!
A business plan documents a company, its business objectives, and how it plans to achieve them. It includes data regarding business goals, marketing strategies, products, services, market research, financial projections, and the dream team.
Pretty much everything a company will use to achieve its intentions.
Okay! And what about the business proposal?
On the other hand, a business proposal is a document that describes your business’s offerings, like a product or service, to help you win potential clients and partners.
It also outlines your business, including its unique value proposition and how your company can help solve customers’ specific problems.
Now that we know the two business documents aren’t the same let’s see how they are different and in what ways.
Even though used interchangeably (and wrongly), a business plan and proposal are poles apart. Here’s how:
Before you ask why you need a business plan , it’s, first and foremost, to legitimize a business idea that you’ve been brewing in your head.
But it’s also to document company strategies, objectives, and operations that help you create a clear idea on how to achieve your company goals. All that data becomes one source of truth that works as a communication tool. That becomes your golden ticket to wooing investors and lenders.
On the other hand, a business proposal’s purpose is entirely about convincing a potential client and partner that your project is worth their time and money.
Unlike a business plan, it only focuses on a specific product, service, or opportunity instead of the entire business.
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When you write your business plan , it will typically follow a specific structure containing the following components:
Similarly, when you write a business proposal , you’ll typically encounter a structure as well. It goes like this:
A business plan’s target audience is internal stakeholders, investors, and lenders interested in your company’s long-term goals and path to success.
On the flip side, business proposals go to potential clients from established businesses. They target external or new clients, partners, or funding agencies with a specific focus on:
Do you know how many types of businesses exist today? Two words: Too many!
Now, that implies there are many different types of business plans. But here’s a quick list of the most common types:
Business proposal types can be broadly divided into two categories:
It’s already challenging to overcome market entry barriers in saturated markets and persuade potential investors. Creating a compelling business proposal and plan shouldn’t be too!
Here’s how to go about it:
It’s okay if you were confused about the difference between a business plan and a proposal before today. You now know the distinction between the two lies in their purpose, components, structure, audience, and type.
While a business plan provides a thorough overview of the entire business and targets internal stakeholders, investors, and lenders, a business proposal focuses on specific projects or opportunities and targets external clients, partners, or funding agencies.
When you understand these differences and employ the best practices in creating both documents, your business can effectively communicate its vision, strategy, and value proposition, securing a solid spot in this competitive world.
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What is the difference between a business plan and a business idea.
A business idea is a concept’s initial spark for a product, service, or opportunity. However, a business plan is a detailed document outlining how a business idea will be executed and managed.
A good proposal is 10-20 pages long. However, it can be longer based on the industry, buyer requirements, product or service type, the scale of buyer needs, and other aspects unique to the business.
The business plan comes first since it legitimizes a business idea. Then comes a proposal because it’s specific to a particular project or opportunity and not the business as a whole.
A business plan is a detailed roadmap for your entire venture. It helps you gain investments, beat competition, make sound decisions, communicate with stakeholders, and identify risks. So, yes, you need a business plan.
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A business plan and proposal are two different documents with two different purposes and functions. 3 min read updated on February 01, 2023
A business plan and proposal are two different documents with two different purposes and functions. A business plan is a document that clearly spells out how a business intends to realize its objectives and goals, while a business proposal is a sales document that a business entity uses to request a contract from a client.
A business plan and a business proposal are different from each other by content, goals, writing style, and structure. The major difference between both is that a business plan is a document that presents facts, while a business proposal is a request for a deal and a quotation of prices.
You can think of a business plan as the documentation of a company's grand vision. Business plans are naturally tactical. It's like stating where and when you want to start, when you want to get to the next point in view, and how you intend to accomplish that progress. A business plan includes descriptions of how the business is intended to run, the details of financial goals, possible business rivalry, marketing strategy, executive summary, and other factors that affect a company's planned business growth.
A business plan is particularly effective in making potential investors interested in a company (especially a startup company that's yet to make a name in its industry). Additionally, a business plan can provide an idea of what a company requires for professionals such as attorneys, accountants, and potential employees. A business plan distinctly describes the scope of the business, and in so doing, clears your thoughts as a business owner.
The business plan should be honestly made because it's the outline of the company's vision. It indicates whether or not the business goals of the company are realistically achievable. Experts say an effective business plan would take approximately six weeks of thorough research and groundwork to create. In other words, you typically can't create an effective business plan in one day, present it to potential investors the next day, and achieve desired results.
A business proposal goes to a prospective client directly from an established business. It's an attempt to sell a business entity's service or product to a client, and not an attempt to sell the business itself. Also, a business proposal isn't an estimate. Though costs and certain other details will be provided in the business proposal, an estimate is a lot more unofficial and simply a provision to skim over the costs. It doesn't present the entire picture.
Basically, business proposals show a particular idea, such as a new, profitable undertaking. The proposal is intended to get investors to support the particular business endeavor being suggested. For instance, a well-known eatery chain may wish to extend its business to a nearby state. Such an eatery would have to compose a business proposal in order to get the financial support of its target investors.
Though the business proposal provides an overview of what the company does (similar to a business plan), its major objective is to provide the details of the suggested business idea, including providing answers in advance for any concerns that could be raised by potential investors.
Basically, a business plan has three components: business model description, sales tactics, and financial goals. However, more elaborately, it has the following sections of information:
A solicited business proposal, when presented in response to a request for proposal (RFP), should be in the format requested by the client in their RFP. The same format may or may not be used for an unsolicited business proposal. Its purpose is to suggest and develop a business idea. Therefore, it's recommended to use the same format or some other format that's well-known in the field of endeavor.
An unsolicited business proposal offers a business entity the flexibility to choose what structure they deem appropriate. However, the proposal is expected to meet industry standards, no matter what format is used. For instance, it should emphasize major areas of interest, be thoroughly researched, offer a proposition of value, and feature a call to action.
If you need help with a business plan and proposal, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.
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Explore the distinguishing factors and circumstances that make a Business Plan or Business Proposal more fitting for driving success and growth in your enterprise. Gain insights into the purpose, audience, and strategic value of each document, and learn when it’s best to utilize a Business Plan or pitch with a Business Proposal.
Table of Contents
The main difference between a Business Plan and a Business Proposal is that a business plan is a formal document that outlines the company’s goals, strategies, market analysis, financial needs, and projections for the future, aimed at providing a roadmap for the business’s success and often used to secure funding or guide the management team. On the other hand, a business proposal is a tailored document created to pitch a specific product, service, or solution to a potential client or partner, detailing how the business can fulfill a particular need or solve a specific problem for the recipient, often with the goal of initiating a transaction or project.
A Business Plan is a comprehensive document that outlines a company’s objectives, strategies, market analysis, financial forecasts, and operational structures. It primarily serves as an internal roadmap for the company’s strategic direction and helps to attract investors by showcasing the company’s potential for growth and profit. Business plans are often developed during the foundational stages of a company and updated periodically to guide the company through different stages of growth.
A Business Proposal , on the other hand, is a targeted pitch provided to a specific client or partner to convince them to do business with you. Unlike a business plan, a business proposal is not a broad overview of the entire company. Instead, it is a customized suggestion that outlines how your business can solve a particular problem or meet a specific need of the prospective client. The proposal highlights the benefits of selecting your company’s products or services and typically includes pricing, terms, and conditions for a potential engagement or project.
A business plan should be reviewed and revised at least annually, or more frequently if there are significant changes in the market, the business model, or if new challenges or opportunities arise .
A business proposal may not be necessary when transactions are straightforward and do not require detailed explanations, such as standard retail sales or when there is already an established relationship with the client based on trust and familiarity.
Absolutely. If a proposal leads to a successful project and client satisfaction, it can serve as the foundation for a long-term business relationship and future projects or collaborations.
An unsolicited business proposal is one that is offered without an explicit request from the potential client. It often reflects the proposer’s initiative to identify potential needs of the recipient and offer solutions to unaddressed challenges.
To make a business proposal stand out, it should clearly articulate the unique value proposition, be tailored to the client’s specific needs, contain compelling and concise content, and demonstrate a deep understanding of the client’s industry and challenges.
Yes, a business proposal should ensure that all claims and statements are truthful and that no proprietary or confidential information is disclosed without permission. Additionally, the terms and conditions should be clearly outlined to avoid any misunderstandings, and if accepted, it can be the basis for a legally binding contract.
The decision between a Business Plan and a Business Proposal hinges on the specific requirements, goals, and context of your enterprise. A Business Plan lays the foundation for your company’s long-term strategy, risk mitigation, and operational guidance, with an expansive view of the business’s aims and the means to attract investors. Conversely, a Business Proposal concentrates on the immediacy of client-specific projects, presenting a tailored solution with a persuasive edge to secure contracts and foster client relationships swiftly.
Aspect | Business Plan | Business Proposal |
---|---|---|
A formal document outlining a company’s strategic direction, goals, and requirements. | A customized document designed to pitch a product or service to a potential client. | |
Used for strategic planning, securing investment, and internal guidance. | Aimed at winning a specific contract or project by addressing a client’s needs. | |
Potential investors, stakeholders, and company management. | Specific clients or partners with particular needs or requests. | |
Broad, covering all areas of the business including long-term goals and operations. | Specific to an offering that aligns with the client’s issue or challenge. | |
In-depth market analysis, financial projections, strategies, and organizational details. | Customized solutions, benefits, pricing, and terms for a prospective engagement. | |
Prepared infrequently, at startup or significant growth stages. | Generated as needed when seeking new business or responding to RFPs. | |
Standardized with sections like executive summary, market analysis, and financials. | Custom-tailored to the client’s request, often varying in structure. | |
Long-term outlook, often spanning multiple years. | Focused on a specific project or service timeframe. | |
Follows a consistent format for different uses. | Highly customized to the potential client’s requirements. | |
May seem inflexible due to its long-term and broad nature. | Adaptable and specific to client or project needs. | |
Provides a thorough business model and can attract investors with detailed planning. | Directly addresses a client’s needs and can initiate business quickly. | |
Can be time-consuming, costly, and may require frequent updating. | Lacks long-term strategic details and may depend excessively on the prospects. | |
When establishing a new business, seeking funding, and defining long-term strategy. | When targeting a client request, competitive bidding, and project-specific opportunities. | |
Both outline strategic approaches, require research, set clear objectives, are persuasive in nature, and include financial information and action plans. |
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It’s natural to get confused between a business proposal and a business plan if you are planning to turn your idea into reality. While business proposals and plans may sound similar on the surface, they have differences — such as distinct purposes and formats.
A business plan describes your business goals, strategies, and financial projections. A business proposal, on the other hand, proposes a specific solution to a problem or opportunity and helps you persuade the relevant stakeholder to invest in your business.
However, writing a business proposal or a business plan can be challenging, especially if you are confused about their purpose. In this blog, we will explain the difference between a business plan and a business proposal and its major components.
A business plan tells the investors how you plan to ship your product to enough people to clock revenue. It’s about the strategies that will make you the first buck.
A business plan keeps your team on the same page — you can use it as a guiding light. It can help you track the progress of your business, give you a roadmap, and help you make decisions about your business’s future.
Plus, it can be helpful when it comes to pitching your business idea to a third party, for example, when seeking a loan.
A business plan is majorly divided into three sections, which include an executive summary, a sales and marketing strategy, and a financial plan.
An executive summary is a brief, clear, and compelling overview of your business. It is usually the first section of the document, and it contains the most important information, such as your strengths.
These can be further broken down into the following sections:
A business proposal is a separate written document that outlines a specific business opportunity, project, or idea and presents it to potential clients.
It intends to persuade them to take action, such as accepting a business deal or entering into a partnership, thereby helping you get new customers or partners.
A business proposal should be customized to the needs and interests of the receiver. A generic proposal will rarely help you meet your business goals.
At the same time, ensure your proposal is well-organized, persuasive, and creative. Check out these free business proposal templates to impress your clients.
Proposals are solicited from you, or you send them on your initiative.
You write a solicited proposal in response to a prospect’s or customer’s request for a product. They may ask you verbally, or they may issue a written request for proposals (RFP). A solicited business proposal contains a detailed description of the product, service, or solution that you offer to solve the customer's problem or need. It’s generally easier to write because you know what the customer wants or expects.
But if you’re writing the proposal on your own, which is the case with unsolicited business proposals, then you’re convincing the receiver to work with you or buy from you. Such proposals are often challenging to write because you have to convince them they have a problem and you have a solution.
The following are the key components of a business proposal :
While a business plan outlines your goals and explains how you will achieve them, a proposal sells your product to potential customers.
In the following table, we have summarized the main differences between a business plan and a business proposal:
To wrap up, a business proposal is a document that pitches your products or services to a potential client, while a business plan outlines your goals, strategies, and financial projections for your business.
With business management software like Cone, you can easily streamline and automate your proposal creation while ensuring your proposals are bespoke and customized. Sign up for free and experience the seamless proposal creation process for yourself. While you’re at it, check out other business proposals and management resources we have for you.
Business proposal and business plan are relatively similar but distinctively different terms, making many use these two words interchangeably.
You’ll see distinguishing features in their content, structure, writing style, purpose, and goals. Even so, there are various similarities between a business proposal and a business plan.
The main distinguishing factor to note is that a business proposal documents the growth strategy and presentation of facts, while a business proposal is a specific ask for an individual to take action (buy your service/product, partner with you in business, and invest in a particular business) .
Let’s look at the two terms in detail and highlight a few examples when it’s appropriate to use.
A business proposal is a company’s documentation that goes directly to its prospective. It’s usually written in an attempt to sell a company’s product or service.
While a business proposal is not an estimate, it’ll have certain financial details. An estimate is unofficial and simply a way to skim over the real costs without presenting the real picture.
In a nutshell, a business proposal shows a particular business idea intended to get investors to support this particular endeavor being suggested.
Although a business proposal shows an overview of what the company does (just like a business plan), its main aim is to provide information about the suggested business idea.
It answers any questions or concerns potential investors may have about the suggested business idea.
Prospero business proposal generator can help you easily draft a competitive and compelling proposal to beat other bids. With its user-friendly interface and various proposal templates , you don’t have to create everything from scratch.
Let’s now look at the importance of a business proposal and a business plan.
The main reason a proposal is written can only be understood based on the type of proposal you want to draft. They’re two types of proposals; invited and non-invited proposals.
An invited proposal is submitted in response to an advertisement from a potential client. A good example is government agencies inviting contractors to bid on a particular service.
Alternatively, businesses request a proposal from a group of suppliers they’re willing to consider as prospective clients.
Non-invited proposals, on the other hand, are submitted to potential clients even when they haven’t requested one. In both instances, a company must develop a compelling proposal to convince buyers.
Proposals are limited in the scope of a particular need or project and written to specific audiences.
The main reason why businesses write proposals is to solicit or grow company opportunities. You can think of a proposal as an external document to present or sell the company to external players.
It shows what the business is all about and how it intends to carry out a particular project or use that opportunity to generate revenue for both parties.
A business plan is a factual description of a company on the operational and executive levels. It’s a written presentation of a company’s grand vision.
The document is typically tactical; it states where and when you want to start a project. Moreover, it will highlight when you’ll want to move on to the next phase of the project and how to accomplish that project.
It makes potential investors interested in a company (especially small startups that haven’t made a name for themselves).
A business plan will also provide an idea of what the business requires from professionals, such as attorneys and potential employees. It indicates whether or not a company’s business goals are realistic, let alone achievable.
Business plans are visions for your company and how you intend to execute all these visions. They outline financial projections of what a business will cost to develop and operate, plus an estimate of the revenues the business will generate.
Its main purpose is to provide a reasonably detailed description of the company for use by potential investors, suppliers, accountants, and prospective employees, among other people. For instance, one of the prerequisites for an SBA loan is an extensive and organized business plan.
Moreover, it’ll provide a quick but comprehensive view of what your company does and its chances for success.
The main reason companies write business plans is to convey and record information.
Here, the two documents have various components featured on them. Here’s a detailed description of their structure below:
Overall, the structure of a proposal will depend on whether it’s solicited or unsolicited.
A solicited proposal responding to a request for proposal takes the format of an RFP. Here are the components of a business proposal:
An unsolicited proposal to create a business opportunity follows the same format. It, however, anticipates questions potential clients might have .
A proposal is a marketing document designed to convince prospects to do business by presenting a value disposition plus a call to action.
Try creating your business proposal here .
A business plan has three components; sales tactics, business model description, and financial goals. More elaborately, it consists of the following section of information:
The business plan is more like an information document displaying the company’s operation and potential.
Many companies fail to follow this format while writing their business plan or proposal, a reason why most don’t win bids or prospective clients.
Using Prospero to write a professionally compelling business proposal and integrate your business plan can help you get investors interested in your company so that they want a sit at the table.
Business proposals differ from business plans in content, writing style, purpose, goals, and structure.
The sole distinguishing factor between the two terms is that a business plan is a factual presentation of facts, whereas a business proposal is an external market document that highlights a quote and a call to action.
Let’s look at some distinguishing features between the two terms:
A business plan provides a detailed description of how the business was set up, plus its project.
On the other hand, a business proposal is a purposeful sale document illustrating how a business will execute a particular project. Usually, it’s drawn and submitted to another enterprise or organization putting forward a business arrangement.
In addition, the structure of a business plan contains three elements, including a description of the business model , sales tactics, and financial projections.
On the other hand, the structure of a business proposal takes the format of an RFP if it’s solicited.
A business plan shows the scope of a business and, in turn, clarifies your thinking as a business owner and also gives you information that you hadn’t considered before.
Conversely, proposals show a limited scope of a specific project or need for a particular audience.
While trying to craft these two documents, you must seek proficient experts to help you write compelling proposals and plans to convince potential investors and other partners to invest in your business.
A business proposal can be divided into solicited and unsolicited proposals. How different are they? Let’s delve right in.
This is presented in response to a request for proposal (RFP). It’s usually submitted responding to a work statement from sponsors.
These sponsors use the request for proposal to solicit a specific proposal for research, training, or to provide services or goods. The RFP includes standard terms, conditions, and assurance that the company is asked to accept.
A good example is when an organization or government agency wanting to buy products or services from a particular sector invites contractors to place bids.
In other scenarios, some businesses will ask suppliers to provide RFP to those they’re considering a partnership with.
The business is competing against other businesses that want to secure the same contract. It’s, therefore, in their best interest to provide compelling and competitive business proposals.
Prospero can assist you in such instances; it has the experience and expertise to curate excellent proposals that win contracts. Call it today to generate a proposal with its Prospero business proposal generator .
This proposal is submitted to potential clients, even when they haven’t asked for one.
In such circumstances, a business wanting to secure a contract will suggest a product or service to a potential organization in return for funds.
A good example is when an organization tends a proposal to develop an application or renders some training services to its staff.
Just like solicited business proposals, a company must curate a well-researched proposal that will convince prospective clients you’re the right candidate for the job.
Business plans are also categorized into four types, including
These types require different degrees of labor and are not always proportional to results.
Using PowerPoint to outlay information about a business changed the way companies created their business plan. Many businesses lose sleep trying to figure out how you’re going to present a business plan that can affect a company’s future.
This is a plan used to operate your business. The plan can be long in detail but shorter in presentation. There’s no room for informality or candor while preparing it.
If you’re considering presenting this plan to a loan committee, you’ll have to describe a competing rival primarily on a price basis.
A working plan used to create outlines for internal use may have some elements omitted; probably, you’ll not need to add an appendix with a resume of key executives.
Internal policy considerations may guide what to include or exclude in the working plan.
A business must prepare for unforeseen circumstances. The company may want to have a contingency plan when seeking bank financing.
This plan is usually curated in the worst-case scenario that you can foresee your business surviving. It’s important to shelter yourself from things like loss of market share, the defection of a key member of management, and heavy price competition.
A contingency plan can help cover the fears of bankers and investors by demonstrating that your business has considered more than one rosy circumstance.
Moreover, your business can benefit from a what-if plan in situation acquisition. It can help you outline the worth of the acquisition and how it can affect the core business.
In summary, you can say that a business plan is more of an internal document, whereas a business proposal is an external one that is used to sell the product or service of a company to prospective clients.
In addition, a business plan guides the activities of a company internally in terms of revenue projections and marketing strategies that must be achieved in a particular time frame.
On the other hand, a business proposal will show external parties like a government agency and sponsors what the business is all about to convince them to invest in your business. The proposal should outline how you will carry out a particular project to generate revenue.
Whether trying to curate a business plan or proposal, it has to be compelling and competitive to beat other bidders.
Working with Prospero to generate professionally written proposals or plans is essentially wise. It has a variety of templates for different industries and comes with a lot of customization options. Some ready-made content are also available so you won’t need to write from scratch every now and then.
You can manage and track the performance of your proposals through its built-in analytics, so your sales team would be more productive and efficient.
It’ll increase your chances of securing contracts and proposals that can take the business to the next level.
Sign up for free today and get your free trial!
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A business plan and a business proposal are very different documents, with different purposes and goals. A business plan is a factual broad description of a company on the executive and operational level. A business proposal is a focused sales document intended to describe how a company will approach a project, state the value of the project to the client and solicit the client's business. A business plan is a written presentation of fact. A business proposal is a quote and call to action.
A business plan documents your vision for your business and how you intend to achieve that vision. It contains financial projections of what the business will cost to develop and operate plus an estimation of the revenues to be generated. Its purpose is to provide a reasonably detailed explanation of your business for use by potential investors, suppliers, prospective employees, accountants, attorneys and other people who need a quick but comprehensive understanding of what your company does and its potential for success. The primary reason for a business plan is to record and convey information.
Proposals may be unsolicited business ideas presented to a potential customer or partner, or they may be answers to requests for proposal submitted to your company by a potential client. They are limited in scope to a particular project or need. A business proposal also generally has a specific audience. The primary reason for a business proposal is to solicit or develop a business opportunity.
A business plan has three elements: description of the business model, the marketing model and financial projections. It consists of informative sections, including the executive summary, business description, marketing model, analysis of industry competition, build-out plan, operations plan, introduction of management, and a discussion of financial issues and projection of results. It is introduced by an executive summary, which can be a dense abstract or a longer marketing tool to attract interest in the business plan. The business plan is an informational document designed to factually display your company's operations and potential.
A business proposal written in response to a Request for Proposal (RFP) should follow the format requested in the RFP. Generally, this involves a quick description of your company's services and products that are relevant to the goals of the RFP, a reiteration of the scope of work, answers to specific questions posed in the RFP and a quote detailing materials, tools, labor, delivery and other elements of the cost of the project.
An unsolicited business proposal intended to create and develop a business opportunity follows essentially the same format but anticipates questions the potential client might have. A proposal is more of a marketing document, designed to convince the audience to do business by presenting a value proposition and a call to action.
Victoria Duff specializes in entrepreneurial subjects, drawing on her experience as an acclaimed start-up facilitator, venture catalyst and investor relations manager. Since 1995 she has written many articles for e-zines and was a regular columnist for "Digital Coast Reporter" and "Developments Magazine." She holds a Bachelor of Arts in public administration from the University of California at Berkeley.
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In order to send an official business proposal, you have to have a business plan. These are two different document types that people often confuse and mix.
Let’s take a look at the difference between the two, starting with the document you should have in place before submitting an official business proposal.
A business plan is a document that describes what your organization looks like and what services and deliveries you would provide.
As a student at BI Norwegian Business School , I learned that a business plan should include the following three elements:
A business plan is a document you would not typically send to your client but to lawyers, insurance providers, banks, suppliers and other stakeholders that would find this relevant for understanding your business and its value.
A business proposal describes what you can deliver, time frame, amount, cost and your terms and conditions. This is a document you would use to respond to a specific request from your client, or you would send it to your client or prospect describing what you can deliver, at what price.
When you respond to a specific request, also known as an RFP (request for proposal), you should follow this rule of thumb:
There are many different ways to write a business proposal, and many different solutions to write it with. For the best possible outcome in terms of control, cost-efficiency, time savings and security, use an enterprise-grade co-authoring and automation tool.
The proposal solution XaitPorter is used by companies all over the world for this purpose. Here are six key advantages of using XaitPorter to create your business proposals and other high-impact, high-value documents:
Tore holds a Technical degree and has a variety of business courses from BI Norwegian Business School. He has previously worked for different oil service companies and IT companies. Tore used to be Norway's biggest self-proclaimed golf talent, and also has a big passion for Ice hockey.
April 13, 2023
Can't find what you're looking for?
One of the most searched queries on Google is "business proposal vs business plan", and we are here to break the confusion.
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You are starting a new business, and you aren't sure what you need to do. You heard that you needed a business proposal and a business plan, but you weren't sure what's the difference between them.
You did some research and couldn't find what you are looking for... You decided to create both of them, but you need weeks to write and refine them.
Don't worry, we are here to remove this confusing process. Let's see what's the difference between them. You may, and probably do need both of them. But which one should be your priority?
When you're starting a business, one of the most important things you'll need to do is create a business plan . This document will outline your company's goals and strategies for achieving them over the next five years.
A business proposal , on the other hand, is a sales document that you put together to pitch potential projects to clients. It's not the same as a business plan, and it usually includes cost quotes for potential projects.
The main difference between a business proposal and a business plan is that, while a business plan is informative, a business proposal is intended to showcase operations, goals, and potential.
The executive summary of a business plan will include information about the company leadership structure or the introduction of management. Generally, business plans include an executive summary part while business plans don't.
We have seen some samples that use executive summaries but since the main goal is to close a deal. We suggest keeping them short and clean.
The business proposal format depends on whether the business is solicited or unsolicited . Details of products and services offered, the scope of work and responses to specific questions in an RFP are included in a business proposal.
A business plan documents the vision of a business and how it will be achieved. A business proposal offers comprehensive information for potential investors, suppliers, accountants, etc.
A proposal shows the external player what the company is all about and how it intends to carry out its project. Keep these differences in mind when you're putting together your next business presentation --you'll need to tailor your content accordingly!
A business plan is a document that outlines the business goals, strategies, and tactics a company will use to achieve those goals. The business plan also includes an overview of the company, its management team, the target market, and the products and services the company plans to offer.
It usually includes information about the company's products and services, target market, marketing plans , financial forecasts, and management team bios.
Here's a sample template to use while creating a detailed business plan.
A business plan is a key document for any business. It lays out the goals and strategy of the business and helps to ensure that everyone involved in the business is on the same page. It can also be used as a tool to help secure funding from investors or banks.
A business plan is a document that outlines the strategy and goals of a company. It can be used as a planning tool , to track progress, or as a basis for making decisions . A well-written business plan provides a roadmap for the business , and it can help attract investors or partners.
There are many reasons to create a business plan. Some of the most common reasons include:
A business proposal is a written document that offers a solution to a problem or a way to achieve a goal. It is often used to sell products or services to a potential customer. A business proposal must be well-written, clear, and concise in order to convince the reader to take the desired action.
A business proposal is a formal response sent to an RFP (request for proposals). It is a way for the seller to convince the buyer that their proposed solution is the right one in order to win business. Business proposals are meant to persuade a prospective client.
A business proposal typically consists of four main points: what are the challenges, how your solution solves the problems, why they should choose you over others, and the best pricing options available. The price is typically stated in the document. If a business is requesting proposals, they should be sent in their format. An RFP response should include specific details about the scope of work and the cost estimate.
Here's a sample template to use while creating a detailed business proposal.
A business proposal is a key part of the business development process . It is a document that outlines the business goals, strategies, and tactics that will be used to achieve those goals. A proposal is used to convince potential clients or partners that your business is the best option for them.
It's typically used to pitch an idea to a potential client or customer. A well-crafted proposal can help you win new business and close deals.
Your company might be expanding into a new market and need to propose a new product or service. Or, you might be approached by another company with an opportunity you'd like to explore. Maybe you've identified a gap in the market and want to propose a new product or service to fill it.
Well, we do have a comprehensive guide to business proposal creation with templates and examples, but if you need a more brief explanation, keep reading!
When preparing for a business proposal, it is important to do your research and understand the client's needs. You should also have a clear understanding of your own company's capabilities and what you can offer the client. Additionally, it is important to be well-organized and to have a strong pitch.
You should have a clear understanding of your target audience and what will appeal to them. You also need to have a good grasp of the competition and what they are offering. In addition, you should be familiar with the terms and conditions of any potential contracts that may be involved.
Your proposal should be neatly formatted and easy to read. It should also be free of grammatical errors and typos. Be sure to proofread your work carefully before submitting it.
Make sure you provide complete contact information, as well as an outline of your proposed solution or service. If possible, include testimonials from past clients who have been satisfied with your work.
Remember that you are offering a valuable service that can help the reader achieve their goals. Believe in yourself and your ability to succeed, and you will be able to deliver a winning proposal every time
When writing a business proposal, make sure to follow this brief outline:
- Introduce yourself and your company
- Outline the proposal's purpose
- Explain the problem that you're trying to solve
- Describe your solution
- Explain the benefits of your solution
- List your qualifications
- Request a meeting
It should include an overview of the product or service, information about the company proposing it, financial projections, and terms and conditions. A well-crafted proposal can help your company win new contracts and increase sales.
Here's another sample template you can use while creating a business proposal:
Here's a story of our customer John who joined the Decktopus community 2 years ago.
John had been working in sales for years, but he had never worked in a company that sold products. When he was hired by a new startup, he was excited about starting making sales and increasing profits. However, he soon realized that there was no one in the company who knew how to sell. The founder of the company told him that he would need to create a presentation template to share with the other reps.
John wasn't sure where to start. He read article after article, trying to gather information about what made a good business proposal. After weeks of research, he finally created a template that he felt confident in sharing with his fellow reps. He was excited to see how it would help them increase sales and profits.
This is the outline we gathered while our support team helped him along the way:
-Executive Summary
-Problem/Opportunity Statement
-Business Plan
- Marketing Plan
-Financial Plan
An unsolicited proposal is one in which the company offers a product or service to a potential customer who has not solicited it. Here's an unsolicited proposal template .
A solicited proposal is one in which the company responds to a request for proposal (RFP) from a potential customer. Here's a solicited proposal template .
A proposal to bid is a document that a company submits to a potential customer in response to an RFP.
The purpose of the proposal to bid is to persuade the potential customer that the bidder's product or service is the best option among those being considered.
Here's a proposal to bid template .
A business plan has three main sections: the executive summary, a description of the business model, and financial projections.
The first section is an introduction that should be no more than one or two pages long. It should include a brief overview of your company, its products and services, and how you plan to make money.
The second section, a description of the business model, provides details about your company's competitive landscape, industry trends, and how you plan to reach your target market.
The marketing model is an informative section that should include detailed information about the industry competition and build-out plan. This part of the document can be several pages long and will help investors understand your company's place in the market.
While all three sections are important, remember that potential investors will likely focus on the financial projections most closely when deciding whether to invest in your company. The financial projections section is important because it shows potential investors how you expect your business to grow over time.
A well-crafted business plan can help convince potential investors to put their money into your company.
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A business plan and a business proposal are two distinct documents. Most people mistake them for each other, and a lot of articles on the internet that teach how to write a business proposal are actually just explaining how to write a business plan.
While a business plan focuses on a company’s goals, the problems and solutions it’s trying to address, its potential market size, keys to success, products and services, market execution, and more, a business proposal on the other hand usually focuses on how a certain project would be executed, states a quote for the project, terms & conditions, and several other key pointers.
These two documents are very different with each serving distinct purposes. So it is important you know whether what you need is a business plan or a business proposal at any time.
See Also: 10 Reasons To Write A Business Plan
A business plan envisions your pipe dream. It shows how your business goals, objectives, philosophies, industry analysis, target market, products & services, market execution, competitive analysis, financial projections, and a whole lot more will position the business for success.
It is a detailed document that investors, banks, accountants, and financially savvy individuals can easily review to know what your business is about, its chances of success, and how you’ve planned to scale.
In preparing a business plan, here is a sample structure you should follow to get it done right:
See Also: How To Write A Business Plan: The Complete Guide
Business proposals are usually solicited or unsolicited. A solicited business proposal is written upon request from an organization, institution, or individual. For example, if you receive a Request For Proposal (RFP), what you’re preparing would be a solicited business proposal. In this instance, you’d have to follow the requirements as stated in the RFP.
An unsolicited business proposal, on the other hand, is prepared in response to a client after a sales meeting, giving you more flexibility in curating the contents of the proposal.
Business proposals are limited in scope, and are thus, written for a specific audience.
Here’s a sample business proposal structure:
In your business proposal, you will detail the scope of the work, materials needed, cost estimates, project timeline, previous clients, team members, achievements, and a whole lot more in the body of the proposal. It’s a marketing tool, and its goal is to convince the target customer to do business with you.
See Also: How To Write A Winning Business Proposal: The Complete Guide
The variations between a business plan and business proposal are wide apart. As shown in this article, they serve different audiences and are prepared for different reasons.
If your goal is to seek investment or a bank loan, a bank and investor ready business plan is what you need. But if your goals are to convince a client to use your service whether the client has asked for a document showing how much value you’d add to them or not, a business proposal is what you need.
See Also: How To Write A Feasibility Study Report: The Complete Guide
Image Source: businessnewsdaily.com
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thanks for these information it is really gearing forward toward my goal.
I’m glad you find it valuable, Yusuf.
Do have a great time!
Thanks Edom, I have been reading your publication, they have inspiring, informative, education and above all priceless. keep up the good work.
samuel Chika
Thank you for the kind words and for being a reader, Chika.
I appreciate them.
Great read.I have always confused the two terms.Business plan means you plan for a business and that business has not yet started but business proposal it means you propose something in a business which is ready stand.Thanks for the detailed information.
You’re right Michael.
I’m glad you learned something from the article.
in my understanding, business plan is general road map for the company strategy, but business proposal is one away to find new market or potential client.
I was searching difference between B.Proposal and B.Plan. I found here, Thanks for the publication. IF you also publish “Samples” besides the templates will be more helpful to a person like me, who did not write proposal before.
My Best Regards
Thank you for reading and for the suggestion.
Hello Stan E.,
This is absolutely spot on. No unnecessary embellishments or needless journey. Straight to the point, self-explanatory and informative.
Thanks a million, Sir.
Thank you for reading, Figo.
Not many people really know the differences. They used both interchangeably. Thanks for the clarity.
Thanks Edom, your publication was most helpful to me. I am grateful sir, continue with the good work.
Comments are closed.
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Whether you are in business, employment, or college pursuing a degree, understanding the basics of a business proposal is a skill that you must have. Most people use the terms business plan and business proposal interchangeably. These two documents are very different. A business plan is different from a business proposal in terms of content, structure, writing style, goals, and purpose. The most important difference to note is that a business plan is a written presentation of fact while a business proposal is a price quote and a call to action.
According to an article on Entrepreneur.com , a business plan is a document that outlines a detailed description of how a business is set up. It is a 5-year plan of a business showing the company structure, products and services, market findings from research, marketing strategy, planned budget and financial projections. It can be simply defined as the factual and wide description of a business and its projections. A business plan can be drawn by a start-up as well as a going concern.
A business proposal is a purposeful sales document formulated to illustrate how a business will carry out a project, give the value of the project to the prospective client and ask for the client's business. Therefore, it is a document that a business submits to another enterprise or organization putting forward a business arrangement.
A business plan ideally comprises three elements: description of the business model, the marketing strategy and financial projections. It includes informative sections, specifically the executive summary, business description (products and services), marketing plan, industry analysis (competitor analysis), build-out plan, internal analysis, operations plan, leadership structure or introduction of management, and financial projections -- discussion of financial concern and projection of results. The opening page is the executive summary. It can be an intense abstract or a detailed but precise marketing tool to draw interest in the plan. The business plan is an informational document intended to factually showcase the company's operations, goals and potential.
According to Sean Kerner from Tech Republic, the format of a business proposal depends on whether it solicited or unsolicited. A solicited proposal and in response to an RFP should take the format called for in the RFP. Usually, this entails a quick description of the services and products offered by your business and clearly showing their relevance to the goals of the RFP, a replication of the scope of work, response to specific questions raised in the RFP and a quotation detailing materials, equipment, labor, delivery and other basics of the project outlay. An unsolicited business proposal may or may not take the same format. The intention is to create and develop a business opportunity, and so it is advisable to follow the same format or any other that is popular with the industry or business. Be keen to address all the questions that the potential client might have. With an unsolicited proposal, it is up to you to decide the structure. Whichever format you choose, ensure that the proposal is professional, highlights key areas of interest, presents a value proposition, is thoroughly researched and loaded with facts and with a call to action.
A business plan is required for two main reasons. It clearly defines the scope of the business and in the process clarifies your thinking as the proprietor of the business. It offers you information that had not been considered previously. Simply put, it documents the vision of the business and how it will be achieved. This guides the business towards a practical strategy to guide the business for the time-frame enclosed by the plan. It is the blueprint to success of the business. It outlines strategies for converting the ideas into core competencies. It also presents the financial projections of starting and operating the business as well as estimation of revenue generation from business activities. Secondly, it offers comprehensive business information for use by potential investors and employees, suppliers, accountants, attorneys and other stakeholders. The primary function for a business plan is to record and pass on information.
A business plan is also used to raise funds in form of a business loan, venture capitalist, angel investors or incubation. When approaching these money lenders you must present a thoroughly researched and realistic business plan. The investors need to be sure that you are confident and truthful about the market statistics and financial projections indicated in the report. A business plan should be as truthful as possible because it is the blueprint and vision of the company. It provides a checklist of whether the objectives of the business are on track. According to experts, a professional business plan requires about six weeks of in-depth research and preparation. It is not possible to whip one a day before your appointment with investors.
The reason for a business proposal can be well explained based on the type of the proposal. There are two major types of business proposals: invited and non-invited. An invited proposal is submitted in response to an advertisement from the buyer or client. For instance, organization and government agencies wanting to purchases services and products from private suppliers invite contractors to place their bids. Alternatively, some businesses ask for Request for Proposals (RFP) from a selection of suppliers that they willing to consider as a prospective partner. In each case, the business is competing against other bidders. It is in the interest of your business to present a competitive and compelling business proposal.
Non-invited or unsolicited proposals are submitted to potential clients even when they have not requested for one. In this scenario, you give suggestions to the company or organization to purchase services or products in return for funds. For instance, you can tender a proposal to develop an app for an organization or training services for its staff. The most important thing in both cases is to come up with well researched offer to convince buyers. A business proposal is limited to the scope of the specific project or need. In addition, it has a specific audience. The primary function for a proposal is to solicit or grow a business opportunity.
You can look a business plan as more of an internal document. A proposal on the other hand is an external document used for presenting or selling the business to an external player. A business plan guides the activities of the business internally in terms of marketing strategies and revenue projections that should be achieved. A proposal shows the external players such as governments, donors or business partners what the business is all about and how it intends to carry out a project at hand or use the opportunity to generate revue for both partners.
For more information, here is an article on how to write a business proposal .
Entrepreneur.com: An Introduction to Business Plans https://www.entrepreneur.com/article/38290
If you want your business proposals, price quotes, and contracts to stand out above your competitors and give you the best chance at winning new clients, use ClientPoint's Proposal Software . It makes creating and formatting professional business proposals, price quotes, and contracts fast and easy.
Proposal writing tips, a business proposal checklist to help you win more clients, 8 reasons why paper-based business proposals are dead and digital business proposals are superior, business proposal template - how to write a business proposal.
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A business plan and a business proposal are very different documents. If you do an Internet search for how to write a business proposal, the results are predominantly focused on writing a business plan. Nevertheless, the two documents have different purposes and goals. A business plan is a factual broad description of a company and its prospects. A business proposal is a focused sales document intended to describe how a company will approach a project, state the value of the project to the client, and solicit the client's business. A business plan is a written presentation of facts. A business proposal is a quote and call to action.
A business plan documents your vision for your business and how you intend to achieve that vision. It contains financial projections of what the business will cost to develop and operate plus an estimation of the revenues to be generated. Its purpose is to provide a reasonably detailed explanation of your business for use by potential investors, suppliers, prospective employees, accountants, attorneys, and other people who need a quick but comprehensive understanding of what your company does and its potential for success. The primary reason for a business plan is to record and convey information.
Proposals may be unsolicited business ideas presented to a potential customer or partner, or they may be answers to requests for proposals submitted to your company by a potential client. They are limited in scope to a particular project or need. A business proposal also generally has a specific audience. The primary reason for a business proposal is to solicit or develop a business opportunity.
A business plan has three elements: description of the business model , the marketing model, and financial projections. It consists of informative sections, including the executive summary, business description, marketing model, analysis of industry competition, build-out plan, operations plan, the introduction of management, and a discussion of financial issues and projection of results. It is introduced by an executive summary, which can be a dense abstract or a longer marketing tool to attract interest in the business plan. The business plan is an informational document designed to factually display your company's operations and potential.
A business proposal is written in response to an RFP--A request for proposal (RFP) is a document that solicits proposal, often made through a bidding process, by an agency or company interested in procurement of a commodity, service or valuable asset, to potential suppliers to submit business proposals --should follow the format requested in the RFP.
Generally, this involves a quick description of your company's services and products that are relevant to the goals of the RFP, a reiteration of the scope of work, answers to specific questions posed in the RFP and a quote detailing materials, tools, labor, delivery and other elements of the cost of the project. An unsolicited business proposal intended to create and develop a business opportunity follows essentially the same format but anticipates questions the potential client might have. A proposal is more of a marketing document, designed to convince the audience to do business by presenting a value proposition and a call to action.
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26 comments on “ the difference between a business plan and a business proposal ”.
Great work! the topic is really an interesting one, well a business plan is something organizing your work like with QuickBooks tool hub, and the business proposal is the opposite of the latter one. For better account, management one should download the QuickBooks tool hub. keep it up the great work. looking towards your next blog.
This could be the best and most simplified article on this issue I’ve come across. Straight to the point and very informative.
I have really liked it and thus so much grateful of the author,,, High arcuity comrades
i have never found it broken down as easy as this before. Thank you. it’s very helpful
Amazing job! The best and most informative article explicitly calling out the purpose and goals of a Business Plan and a Business Proposal.
I really found it helpful. Thank you
Very helpful and informative ,bunch of thanks
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for support, questions contact us at [email protected]
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One of the most typical errors seen by QuickBooks users is error 80070057, which specifies that the parameter is wrong, especially when the company file is accessed. This error code means you don’t have sufficient authorization to remove the files.
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I appreciate your thought there with that one, because of course I agree, but I’m confused with why you thought it should be added. Don’t you think plan vs. actual is included with point 3, “It’s specific. You can track results against plan,” and then point 8 “It has to bring the planning process with it, meaning regular review and course correction?”
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Briana Morgaine
8 min. read
Updated March 18, 2024
A business proposal can make or break your chances of securing a new client. Write a great one, and you’ll likely snag their business.
Write a poor one, and you might lose out—even if you’re offering the best service out there. So, how do you write a business proposal? What is the proper format? What do you need to include?
While it all depends on your industry, and whether or not you’re offering a product or service, writing a business proposal is pretty straightforward. We’ll answer all those questions and more throughout the course of this guide.
Whether you’re starting fresh or need to look at a specific section, here’s what we’ll be covering in this guide.
You can download a free business proposal template here to start writing up your own proposal as you work through this article. By the end, you’ll be prepared to develop a well-written business proposal that can explain your business clearly and win more clients. Let’s get started.
A business proposal is a document you’d send to a prospective client, outlining the service you’re offering, and explaining why you’re the best person for the job.
It’s a pitch by a business or individual to complete a specific job or project, to supply a service, or, in some instances, to be the vendor of a certain product.
A business proposal can be either solicited or unsolicited. With a solicited proposal, the prospective client will put out a request for proposals; with an unsolicited business proposal, you are approaching a client in hopes of attracting their business, even though they did not explicitly request a proposal.
While both are commonplace, a solicited proposal is an easier sell, as your prospective client has already decided that they want to make a purchase or use a service, and they’re evaluating possible vendors or businesses.
With a solicited proposal, your prospective client might have issued an RFP, or “request for proposal.” This is exactly what it sounds like—they want you to send over a business proposal so they can take a look at it.
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A business proposal is not the same as a business plan . This is the most common misconception, but while there are areas of overlap (like your executive summary ) the two are different.
That being said, you can certainly pull information from your business plan while writing your business proposal—in fact, that’s a great way to start.
But don’t confuse the two; they are distinct and separate. In short, a business plan represents the cohesive strategy of how your business operates and makes money. A business proposal is an official pitch to clients selling your products or services.
A business proposal outlines a particular product or service offered by an established business to a prospective client.
You’re trying to sell your prospective client on your product or service, not on your business itself. You’re not after funding, as you are with a business plan, you’re trying to make a sale.
A business proposal is also not an estimate; although you’ll likely touch on costs and pricing in your business proposal, an estimate is much more informal and just a quick look at the costs, not the whole picture.
Your business proposal should address the three Ps:
If you’re stuck on how to start, maybe try brainstorming first; start with these three points, and you’ll have a rough, bare-bones version of your business proposal.
Once you’ve done that if you’re ready to go more in-depth, here is a step-by-step look at how to format your business proposal.
Your business proposal should start with a title page, which should include your name, the name of your company, the name of the person to whom you’re submitting your proposal, and the date submitted.
Depending on how long your business proposal is, a table of contents is a nice touch. Include it after your title page, and before you launch into any details. If you’re delivering it as a PDF, including anchor links down to each section, so it’s easy to get to specific areas.
Introduce your proposal with a great executive summary, one that really sells your business and the products or services you provide—it’s about why you’re the right company for the job. You can draw from your business plan’s executive summary here, too.
Following your executive summary, go on to discuss the problem that the client is currently facing. Think of “problem” or “issue” loosely; after all, their main problem may just be finding the right person to complete their project. But be sure you understand why they want the product or service they’re seeking. If the proposal is for developing a brand new website, make sure you understand what they want to get out of the site—better sales, more content management flexibility.
This is the place to show your new client that you understand their needs , and fully grasp the issue they are trying to solve. Take this opportunity to restate the issue they are facing in your own words so that they know you understand what they are looking for.
This section shows how you plan to tackle your potential client’s problem, and the steps you’ll take to carry out your plan.
This is where you’ll get into the nitty-gritty of how you actually plan to fulfill your client’s needs. While earlier sections might have been a bit surface-level, this section of the business proposal is where you’ll go into detail about what steps you’ll take to solve their problem.
Be careful of going into too much detail, though—keep the jargon to a minimum. Your client should be able to follow along and get a clear sense of your plan, but you don’t want to drown them in minutiae.
Go ahead, brag a little—this is the section of your business proposal where you get to convince your potential client why you are the most qualified person to take on the job.
You can mention any relevant education, industry-specific training, or certifications you have, your past successful projects of a similar nature, years of experience, and so on.
Be clear with your potential client: How long will your proposed project take?
Making sure you and your prospective client are on the same page from the outset will help make sure that the relationship stays positive for both of you, and that you don’t set your client up with unrealistic expectations.
While you might be tempted to underestimate how long it will take you to complete the project, don’t. Don’t promise what you can’t deliver!
If you’re offering a product, this section might not be applicable to you, so feel free to omit it. The business proposal format is flexible, so tailor it to suit your business and industry.
Here is where you get down to brass tacks and state the cost, and payment schedule if necessary.
How you structure this section will largely depend on the particular project or service you are offering. A section entitled “Fee Summary” may be sufficient if one-time payment is required; otherwise, a “Fee Schedule” list or pricing table might be more appropriate. Always refer back to the client’s RFP whenever possible, to make sure you’re supplying them with all the information they need to help make their decision.
If there are any legal issues to attend to, such as permits or licensing, include this information here. Feel free to add a section entirely devoted to handling the legal side of the project if need be.
This is your final sell—don’t be afraid to detail for your prospective client all they have to gain by choosing you to complete the project.
Impress upon your clients why you are the best choice, and all the ways in which their business will benefit from choosing you and your business as their solution.
When it comes to the format of a business proposal, this is the million-dollar question without an answer. Remember in school, when you’d ask your teacher how long an essay should be, and they’d reply, “as long as it takes to answer the question.”
The same applies to your business proposal. It ultimately depends on your industry, the scope of the project, and the client’s specifications in terms of detail and elements included.
That being said, the tighter your initial proposal can be and the more directly you can make your point, the easier it will be to pitch it to clients. Start by following the business proposal format above as a guide, and you’ll be well on your way to creating a winning business proposal—and securing new clients.
Bri Morgaine is a seasoned content marketing leader with a decade of experience in copy editing, social media operations, and content strategy— having honed her skills at industry giants like Palo Alto Software and Andreessen Horowitz.
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Learn how to write a business proposal that’ll stand out from the crowd and increase your chances of success.
A business proposal is a formal document you send to a prospective client in the hopes of winning a project or making a sale. In your proposal, you outline the service you’ll offer and explain why they should choose you.
There are two types of business proposals:
A business plan is the roadmap for a business and shows the overall strategy, goals and vision for success. It shows how a business operates and how it will make money. You can create a business plan using our free template .
A business proposal is a pitch to sell a product or service to a prospective customer. The proposal aims to make the sale and shows the potential of the product or service to solve a problem.
An effective business proposal should solve the three Ps:
A business proposal has a clear format and should ideally include each of the following sections.
1. Title page
This sets the tone and must look professional. You should include your name, your business’s name, the name of the person you’ll submit your proposal to, the date submitted and the title of your proposal.
2. Table of contents
The table of contents allows your potential client to see what’s in your proposal and also lets them skim to find the information they consider important.
3. Executive summary
This is similar to the executive summary in your business plan. Explain why your business meets the client’s needs and why you are better than your competitors. It should:
4. The problem statement
Outline the main problem your potential client is wanting to solve. This shows them that you understand their pain points. Use data to back up your argument and be specific.
5. Proposed solution
Here’s where you explain in detail your proposed solution and how it’ll solve the client’s problem. Your solution should be specific and personalized. You should include details of what you plan to provide and the benefits of your proposed solution. If you’re pitching for a specific project, share the proposed timeline, and explain how you’ll measure the success of the proposed solution. Visual charts and graphs can help illustrate your points.
6. Qualifications
Use this section to build trust. Explain why your business is the best one for the job and why they should choose you. You can include case studies of previous clients, client testimonials, social media endorsements or praise, relevant industry-specific qualifications, and certifications and years of experience.
7. The timeline
If you’re pitching for a specific project, outline a clear and realistic timeframe of how and when you’ll complete each part of it. Present this in a flowchart or a road map with deadlines and step-by-step actions. If your proposal isn’t for a specific project, give an idea of general timeframes your business works to, for example manufacturing or shipping times, or turn-around times for services.
8. Pricing, billing and legal
This is one of the most important sections. How you structure it will depend on the size of your project and the type of proposal.
For smaller projects and unsolicited proposals, a summary of the fees, or potential fees is sufficient. For a larger project, provide a breakdown of costs to show your potential clients what they’ll be paying for. You can also provide options to allow clients room to move. Check back on the client’s RFP terms if it's a solicited proposal to make sure you meet their requirements.
If there are any permits or licenses required for the project these should be added to this section.
9. Terms and conditions
Clarify the terms and conditions and summarize details for the project, including timeline, pricing and payment schedules. This is where you include items such as cancellation policies, deposits, warranties and shipping. Get your terms and conditions checked by a lawyer before you send them to prospective clients.
10. The acceptance
The final step is to leave a space for signatures. Include a signature box for your client to sign when they accept your proposal. Make sure you include contact information if your client needs to follow up with any unanswered questions.
There’s a lot to keep in mind when you’re writing your winning business proposal. The following features can help make your proposal stand out from your competitors.
Before you begin writing your proposal, plan out everything in an outline. Ensure you have all of the key information you need and research any you don’t have.
To impress your client and set you apart from competitors, use hard data that demonstrates the value of your proposal. Highlight your data in flowcharts, graphs or a table to enhance their presentation.
Include visual images to break up and enhance the text of longer proposals. Examples of visuals that are great for business proposals include infographics, flowcharts, timelines, photographs, organizational charts and comparison tables. Make sure they’re relevant and not just decorative. Include captions or explanatory notes with them if it’s not obvious what they’re about.
If your proposal is online or a PDF, a short video can help to strengthen your proposal and increase engagement with the prospective client. Types of videos that work include:
Use social proof to add credibility and trust to your proposal. It may help convince your client to accept your proposal if they can see positive reviews or case studies from previous clients. Types of social proof include case studies, testimonials, reviews and rankings, customer stories and previous clients you have worked with. Make sure you have approval to share this information though – you don’t want to breach the privacy of customers or previous clients.
Include a call to action so that your audience knows what action they should take after reading your proposal. Ensure you include contact details so they can ask questions or clarify any issues they have.
Consider your client’s budget, if you know it, and provide several pricing options (high, mid, low) with extra provided for the higher price. Use a pricing table to present your options.
Include other services or related products your business provides. It’s an opportunity to add on extras to the basic proposal, and gives the client additional information about your business.
Allow your brand’s personality to stand out. Demonstrate how you are better and different from your competitors.
Avoid using business jargon and keep your sentences short and simple. There’s no ideal length for a business proposal, but it is important to be succinct and clear. Your proposal should provide enough in-depth information to persuade the decision-maker without overwhelming them.
Be thorough and proofread your proposal. Check your spelling and grammar are accurate and there are no typos. Pay attention to the details and make sure your numbers and all information in your proposal are accurate.
Once completed, write a one-page cover letter to send with your proposal and convince the decision maker to read the entire proposal. Your cover letter should include:
Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.
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Business Plans and Business Proposals are important documents in business development and decision-making, they serve different purposes, audiences, and scopes. A business plan outlines the overall strategy and operations of a business, whereas a business proposal focuses on presenting a specific idea or solution to external stakeholders for consideration or approval.
Business Plan can be described as a document that defines a company’s goals, operations, marketing objectives, financial projections, etc. It is like a roadmap for the company or organisation to achieve its goals and objectives. A business plan is a crucial document for both internal and external people of a company or organisation.
Features of a Business Plan:
A business proposal is a written document that outlines a specific project, product, or service offering and presents it to prospective clients, partners, investors, or other stakeholders. The primary purpose of a business proposal is to persuade the recipient to accept a business idea, enter into a partnership, make a purchase, or take some other desired action.
Features of Business Proposal are:
Basis | Business Plan | Business Proposal |
---|---|---|
| Business Plan can be described as a document that defines a company’s goals, operations, marketing objectives, financial projections, etc. | A business proposal is a written document that outlines a specific project, product, or service offering and presents it to prospective clients, partners, investors, or other stakeholders. |
| It serves as a roadmap for and to guide and secure funding. | It aims to persuade the recipient to accept a business idea, enter into a partnership, or make a purchase. |
| The primary audience for a business plan includes internal stakeholders such as founders, management team members, employees, and potential investors or lenders. | Business Proposals are typically targeted at external stakeholders such as clients, customers, partners, suppliers, or investors who may be interested in a specific business opportunity. |
| A business plan provides a comprehensive overview of the entire business, including long-term goals, growth strategies, operational processes, and financial forecasts. | A business proposal is more focused and specific, addressing a particular business opportunity, project, or client need, and outlining how the proposed solution will meet the recipient’s requirements. |
| A business plan typically includes sections covering the executive summary, business description, market analysis, competitive analysis, marketing strategy, operations plan, financial projections, and implementation timeline. | A business proposal focuses on specific details related to the proposed project, product, or service, including the problem statement, proposed solution, benefits, scope of work, timeline, budget, and terms of agreement. |
| A business plan is typically developed during the early stages of business planning, before launching a new venture or seeking . | A business proposal is prepared in response to a specific Request for Proposals (RFP), Invitation to Bid (ITB), or sales opportunity, usually after initial discussions or negotiations with potential clients or partners. |
| They are structured documents with multiple sections, , and financial tables, providing a detailed analysis of various aspects of the business. | They may vary in format but often include a cover page, executive summary, proposal body, pricing information, and terms and conditions, presented in a clear and persuasive manner. |
Who needs a business plan.
Business plans are essential for entrepreneurs starting a new business, existing businesses seeking growth or investment, and organisations undergoing strategic planning.
A business plan typically includes sections such as executive summary, business description, market analysis, marketing strategy, operational plan, financial projections, and appendices with supporting documents.
The length of a business plan can vary depending on the complexity of the business and the intended audience, but it is generally recommended to be concise and focused, typically ranging from 20 to 40 pages.
Business Proposals are typically written by sales professionals, business development managers, consultants, freelancers, or entrepreneurs seeking to secure new business opportunities, partnerships , or contracts .
A good business proposal is clear, concise, persuasive, and tailored to the needs and interests of the intended audience. It should effectively communicate the value proposition, benefits, and feasibility of the proposed solution while addressing the recipient’s requirements and concerns.
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Do you know the difference between a business plan and a business proposal? These are two very different business documents, each serving a distinct purpose.
A business plan documents your vision for your business and how you intend to achieve that vision. It contains financial projections of what the business will cost to develop and operate plus an estimation of the revenues to be generated. Its purpose is to provide a reasonably detailed explanation of your business for use by potential investors, suppliers, prospective employees, accountants, attorneys and other people who need a quick but comprehensive understanding of what your company does and its potential for success. The primary reason for a business plan is to record and convey information.
You will need a business plan for two reasons. First, your business plan is your blueprint to success — it outlines the steps to move from business idea to business success. If your research reveals that your idea isn’t destined for success, isn’t it better to know it now than a year later when you may have lost thousands of dollars? Spending time to do this provides you with information previously not considered, and gives you a workable strategy to follow for the period covered by the plan.
Secondly, if you are hoping to raise funds through a bank or an angel, don’t even consider approaching them unless you have a thoroughly researched business plan in your hand. Experts estimate that it takes approximately six weeks to develop a business plan, so whipping one up the day before your appointment with your banker won’t work.
A business proposal is a document that you submit to another enterprise proposing a business arrangement. They are limited in scope to a particular project or need. A business proposal also generally has a specific audience. There are two main categories of business proposals: invited and non-invited.
An example of an invited proposal – government and large corporations wanting to purchase services or products from private suppliers often post public tenders inviting contractors to bid. You will be competing against all bidders that noticed the posting and responded.
Similarly, some businesses will send Requests for Proposals (RFPs) to a selection of businesses that they are willing to consider as a potential supplier. In this case, you will be competing against perhaps five businesses that the client has already handpicked as suitable.
In a non-invited proposal, you might have an idea for a product or service that would be of benefit to Company X. You submit a proposal to that Company suggesting a business relationship.
In this case, you don’t know if the company is open to your proposal or whether they will like your proposed idea. However, if they do like the idea, you won’t be competing against numerous other bidders. Your proposal has to sell not only your concept but also your company. It must convince the client that not only is the service/product potentially valuable to them, but you and your company are credible and stable.
Whether invited or non-invited, your proposal must be well researched, well written and contain a reasonable budget. Spend time on this document and you’ll be ahead of the people who threw something together on the maxi.
In conclusion, a business plan and a business proposal have different purposes and goals. A business plan is a factual broad description of a company and its prospects. A business proposal is a focused sales document intended to describe how a company will approach a project. A business plan is a written presentation of fact. A business proposal is a quote and call to action.
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Years ago, virtual communication tools like Skype were considered a threat to telecommunication carriers—especially as the availability of public Wi-Fi hotspots grew. To combat this, carriers began introducing Wi-Fi calling. T-Mobile and Sprint offered this feature on certain phones back in 2007 and over the years, Verizon, AT&T and other popular carriers have added Wi-Fi calling as part of their service options.
So, what exactly is Wi-Fi calling, and what does enabling that setting mean for the sound quality of your calls and your phone bill? Learn whether Wi-Fi calling makes sense for you and your business practices in this complete guide.
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From a user experience perspective, Wi-Fi calling behaves just like a regular phone call—you dial a phone number as you normally would. You can use all of the same features you’re used to, like three-way calling and speakerphone, as you would with any other phone call.
The difference between Wi-Fi calling and regular phone calls happens behind the scenes. With Wi-Fi calling, the call is routed to a Wi-Fi network instead of your phone service provider’s network. We’ve all experienced at least one time where our phone provider’s coverage was spotty. In these scenarios, Wi-Fi calling can be a great alternative for when your smartphone is connected to a wireless network.
In the past few years, the “Wi-Fi calling” setting has been made more prominent on mobile devices. In fact, if you’ve ever made a call while your device was connected to a network, you’ve probably already used Wi-Fi calling. Although Wi-Fi calling may seem like a fancy new feature, the technology that powers it has been around for years and is known as Voice over Internet Protocol (VoIP) .
VoIP sounds incredibly technical, but you’ve probably used this technology on multiple occasions, both as a consumer and in the workplace. Popular platforms and mobile applications that run on VoIP include Skype, WhatsApp, Viber, Facebook Messenger and Google Meet. For businesses, a few major VoIP platforms include RingCentral, Vonage, Avaya and Ooma.
The accessibility, cost-effectiveness and reliability of VoIP spurred telecommunication carriers into action: Carriers used VoIP technology to develop this new competitive feature called “Wi-Fi calling” that would work automatically on a user’s smartphone when they were using a wireless network.
This distinction is important because when people refer to VoIP, they are typically referring to a standalone application or platform that requires installation—such as the consumer and business applications mentioned above. When people mention Wi-Fi calling, they are referring to the carrier-branded calling that is automatically available on your phone. You do not need to install an application to use Wi-Fi calling. Instead, you enable a setting on your phone that turns on this feature.
When Wi-Fi calling is enabled, your phone will automatically identify the strongest network available after you dial. Then, it will route the call through a cellular or Wi-Fi network—whichever happens to be the strongest at the time of the call. Enabling Wi-Fi calling doesn’t mean that you commit to routing calls solely through Wi-Fi. Instead, your call will route through a Wi-Fi network only if it is stronger than your carrier’s cellular network.
In most instances, your cellphone carrier will treat Wi-Fi calls as if they were regular calls. That means there typically aren’t any additional fees to use this feature, and your Wi-Fi call minutes will be deducted from your phone plan’s monthly allotment.
The exact steps will vary depending on whether you have an Apple or Android device. Either way, you can enable Wi-Fi calling by going to your phone’s Settings menu. From there, look for options such as Connections, Cellular, or Network & Internet—the specific terminology will depend on the system version your device is running on. Regardless, there should be a clear option to turn Wi-Fi Calling on and off.
Still unsure if it’s even worth enabling the Wi-Fi calling feature? Here are the top pros and cons to consider.
Backup Solution for Spotty Cellular Coverage Wi-Fi calling doesn’t lock you into making phone calls solely through a Wi-Fi connection. Instead, it essentially acts as a backup solution for your phone calls. It’s always nice to have a backup plan in place in case you temporarily lose cellular service coverage.
No Need to Install Additional Apps Unlike VoIP applications, you do not need to install any apps or software to use Wi-Fi calling. This feature comes “baked” into your phone, so you won’t use up precious phone storage and memory with yet another app.
Can Provide a More Reliable Connection From Home If you’re making a call from home, you’re probably within 50 feet or less from your Wi-Fi router—that’s based off the average home size of 2,400 square feet in the U.S. That is considerably less distance than there is between your phone and the nearest cellular phone tower, which is likely miles away. In rural areas, you may be even up to 50 miles from the nearest cellular tower.
Unreliable Signal Strength In Public Settings While Wi-Fi calling can be a great option for calls from home, it’s considerably less reliable in public settings. If you’re in a cafe or a hotel, think of all the bandwidth that is shared between multiple users all actively using the same network. Your call quality may suffer when your phone has to compete for that bandwidth space.
Wi-Fi Hotspots Are Not Always Available Although the number of global publicly available hotspots has increased by nearly 500% from 2016 to 2021 , you’re still not guaranteed to be within close range of one anywhere you go.
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Carrier-Branded Wi-Fi Calling Is Still Relatively New Although VoIP technology has been around for years, cellphone carriers have slowly started offering Wi-Fi calling to their customers. While most major carriers offer this feature, some mobile carriers and some devices (particularly older models) won’t support Wi-Fi calling.
What is voip.
Voice over Internet Protocol, or VoIP, is an internet-based technology that uses a broadband connection instead of a regular landline or cellular connection to send and receive text messages and phone calls. This means that as long as you have an internet connection, you can use your VoIP number just like any other phone number.
If the call is being routed through a Wi-Fi network, it does not use data from your cellphone plan.
In most cases, Wi-Fi calling does not incur any additional costs. Most cellphone providers will treat Wi-Fi calls the same as any other call and deduct those minutes from your cellphone plan’s allotment. However, note that some public Wi-Fi networks may charge you an access fee to connect to their network. Check with your wireless carrier for further details on cost.
Yes. In most cases, making Wi-Fi calls to a U.S. phone number while you are overseas is free. However, you should always check your cellphone carrier’s international calling terms to be sure.
Generally, a minimum of 2 Mbps for Wi-Fi calls is recommended.
Although you may connect to an unsecured network during a Wi-Fi call, your mobile carrier encrypts your voice regardless of whether a call is routed through their cellular network or a Wi-Fi network. So even if your Wi-Fi network is public or unsecured, your calls should be safe because of the automatic voice encryption by your carrier.
Emily Vasquez is a content marketing writer based in Tampa, FL. She's written and strategized content for businesses ranging from high-growth technology startups to enterprise organizations and global retailers. You can learn more about her work at www.emvwrites.com and @emvmusings on Twitter.
Adam Hardy is a former assistant editor at Forbes Advisor, where he covered small business and tech. Previously, he was a staff writer at The Penny Hoarder, specializing in the gig economy and entrepreneurship. His work has appeared in the Asia Times, Business Insider, Creative Loafing, the Tampa Bay Times, Yahoo! Finance and other publications.
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A promising business plan talks about the company's future financial performance - expenditure, profit, revenue, etc. Explore new business opportunities. A business plan is a flexible document that enables learning on the go. It bolsters research and infuses businesses with new and more feasible business opportunities.
The main difference between a business plan and a business proposal is that a business plan documents your growth strategy while a business proposal is a specific ask for someone to take an action you desire (e.g., buy your product/service, invest in your company, partner with you, etc.). In this article, we will define a business plan and a ...
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Business Plan vs. Business Proposal. A business plan and a business proposal are different from each other by content, goals, writing style, and structure. The major difference between both is that a business plan is a document that presents facts, while a business proposal is a request for a deal and a quotation of prices. A Business Plan
The main difference between a Business Plan and a Business Proposal is that a business plan is a formal document that outlines the company's goals, strategies, market analysis, financial needs, and projections for the future, aimed at providing a roadmap for the business's success and often used to secure funding or guide the management team.
A business plan describes your business goals, strategies, and financial projections. A business proposal, on the other hand, proposes a specific solution to a problem or opportunity and helps you persuade the relevant stakeholder to invest in your business. However, writing a business proposal or a business plan can be challenging, especially ...
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Business proposals differ from business plans in content, writing style, purpose, goals, and structure. The sole distinguishing factor between the two terms is that a business plan is a factual presentation of facts, whereas a business proposal is an external market document that highlights a quote and a call to action.
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A business plan is a factual broad description of a company and its prospects. A business proposal is a focused sales document intended to describe how a company will approach a project, state the value of the project to the client, and solicit the client's business. A business plan is a written presentation of facts.
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A business plan is a factual broad description of a company and its prospects. A business proposal is a focused sales document intended to describe how a company will approach a project. A business plan is a written presentation of fact. A business proposal is a quote and call to action. Be sure to join our Facebook, Instagram, Tiktok and our ...
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The Pros. Wi-Fi calling doesn't lock you into making phone calls solely through a Wi-Fi connection. Instead, it essentially acts as a backup solution for your phone calls. It's always nice to ...