What is a business proposal?

You wouldn’t show up to a job interview without a résumé — so why pitch your business without a solid proposal to back you up? A business proposal is more than just a formal document. It’s your chance to make a compelling case for why your product, service or idea is the best solution to a problem or opportunity.

Whether you’re looking to land a new client, partner with another company or secure funding, a well-crafted business proposal helps showcase your value and expertise and makes your business stand out from the competition.

The two types of business proposals

Business proposals usually fall into two categories: solicited and unsolicited. Knowing the difference — and how to approach each — can give you an edge in winning over your audience.

Solicited business proposals

A solicited business proposal is one that you’ve been asked to provide. Usually, these requests come from prospective clients looking to meet a specific business need. Solicited business proposals can be requested through formal requests for proposal (RFPs), requests for quote (RFQs) or even informal inquiries.

The key thing to keep in mind is that the requester already has a very good idea of what they want. They tailor requests to their specific needs and often include clearly defined guidelines and requirements. That specificity can be an advantage as you put together your proposal, and it also makes attention to detail essential.

Your proposal should not only check the boxes to meet the prospective clients’ stated requirements but also demonstrate how and why your solution is competitive.

For example, imagine a company is seeking bids for a custom-developed software solution. It puts out an RFP outlining goals, technical specifications and budget constraints. In response, interested businesses submit proposals that directly address those criteria. The most successful proposals will go beyond the basics, showcasing the business’s expertise, innovative approach and ability to deliver value within the stated parameters.

Unsolicited business proposals

Think of an unsolicited business proposal as making the first move in a professional relationship. This is a proposal that you send to a potential client, partner or investor in the absence of a formal request. Your proposal is a proactive pitch in which you take the initiative to present your solutions to a problem the prospect might not even be aware of — or to highlight unexplored opportunities.

Because you’re not responding to a specific request, these proposals require you to take a different approach than you would for a solicited proposal. Instead of letting a list of requirements guide you, you’ll need to anticipate the other party’s needs and opportunities for growth. Success hinges on your ability to make a strong case for why your product, service or idea is the answer.

For instance, consider a small catering company that specializes in farm-to-table cuisine. After learning about a new brewery opening in the area, the catering company sends the brewery an unsolicited business proposal offering to collaborate on a series of exclusive food and drink pairing events. The proposal outlines a sample menu, potential event themes and how partnering could attract customers and generate buzz for both businesses.

To help make an unsolicited proposal effective, it’s important to thoroughly research your audience and frame your offer around their goals. In this example, the catering company demonstrates how its services align with the brewery’s target audience to create a win-win scenario.

How to write a business proposal

Drafting a business proposal is about creating a persuasive and professional document that clearly communicates your value and addresses your audience’s needs. The good news is that you don’t need to start from scratch. Existing materials like the business description section of your business plan or your business purpose statement can make great reference materials and help you align your business proposal with your brand. Whether you’re responding to a request or proactively reaching out, following these steps can help you craft a proposal that stands out:

1. Start with a strong cover: Your cover page is the first thing your audience sees, so make it polished and professional. Include key details such as your company name, the title of the proposal, the recipient’s name (if applicable) and the date. A clean, visually appealing design can help set the tone for what’s inside.
2. Write a compelling executive summary: Your executive summary is the elevator pitch in your proposal. It should succinctly explain why you’re writing, highlight the key benefits of your solution and capture your audience’s attention right away. Focus on the outcome they care about — whether it’s solving a specific problem, increasing efficiency or achieving a strategic goal.
3. Define the problem or opportunity: Clearly outline the challenge your proposal addresses or the opportunity it aims to unlock. Use data, research or specific examples to demonstrate your understanding of the situation. This step builds credibility by showing you’ve done your homework.
4. Present your solution: This is the heart of your proposal. Detail what you’re offering and how it addresses the problem or capitalizes on the opportunity. Be specific about your approach, the steps you’ll take and why your solution is the best option. Include visuals like diagrams, charts or mockups if they enhance your pitch.
5. Include a timeline and deliverables: Provide a clear road map for the project, including milestones, deadlines and deliverables. This helps your audience visualize the process and understand what to expect. Use realistic timelines to set accurate expectations.
6. Include pricing and terms: Transparency is key when discussing costs. Clearly outline your pricing structure, payment terms and any additional costs that may arise. Use tables or bullet points to make the information easy to understand. If applicable, offer tiered pricing options to provide flexibility and appeal to a range of budgets.
7. Showcase your credibility: Include a section that highlights your qualifications, past successes or relevant experience. This could involve case studies, testimonials, awards or certifications. The goal is to build trust and demonstrate why your business is uniquely equipped to deliver results.
8. Add supporting details: Depending on the complexity of the proposal, you might want to include supplementary information such as technical specifications, market research or legal terms. Use appendixes or footnotes to keep the main proposal concise while making additional details accessible.
9. End with a clear call to action: Conclude your proposal by specifying the next steps. Do you want the recipient to schedule a meeting, sign a contract or contact you with questions? Be direct and provide easy ways for them to take action, such as links, contact information or a reply form.
10. Review, edit and polish: Before sending your proposal, proofread it carefully for errors or inconsistencies. Make sure the language is professional and concise, the formatting is clean, and the overall document aligns with your brand. A polished proposal reflects your professionalism and attention to detail.

FAQs: Understanding business proposals

What is a business proposal?

A business proposal is a document that outlines your solution to a problem or opportunity for a potential client, partner or investor, aiming to persuade them to take a specific action. Note that a business proposal is not the same as a business plan, which is about getting your business off the ground in the first place.

How do I write an executive summary for a business proposal?

An executive summary should provide a concise overview of the proposal’s purpose, the problem being addressed and your proposed solution. Highlight the benefits of working together while keeping it concise and easy to skim. Consider using bullet points, bold text or subheadings to break up text and emphasize key points.

How do I write a business proposal to secure funding?

To write a funding proposal, focus on explaining your business idea, financial projections and how the money will be used to achieve your goals. Be prepared to back up your funding proposal with additional financial documents and a strong business plan.

How can I keep track of sales prospects related to my proposal?

Using a customer relationship management (CRM) tool can help you organize contacts, track communication and monitor the status of proposals. Many CRMs have tiered pricing models, but if you’re not ready to invest, you can also use a simple spreadsheet — just be prepared for the extra time and effort required to make manual updates.

Ready to take the next step?

Crafting a strong business proposal is a powerful way to showcase your expertise, win new opportunities and drive your business forward. Whether you’re preparing your first proposal or refining your approach, having the right tools and guidance can make all the difference.

For more insights and ideas for growing your business, connect with a Chase business banker or explore our Knowledge Center.

Interested in taking your skills even further? Discover how the Chase for Business Coaching for Impact℠ program can provide expert guidance and mentorship to help you achieve your goals. Whatever your next move, Chase is here to support you every step of the way.