What is a business proposal?<\/h2>\n\n\n\n
A business proposal is a document you send to a potential client to convince them to give you a particular job or contract.<\/p>\n\n\n\n
It\u2019s different from a business plan<\/a>, which outlines your whole business idea before you start.<\/p>\n\n\n\n In some cases, a client will put out a request for proposal (RFP), asking you to state your case as to why you\u2019re the best firm for the job. This is called a solicited business proposal<\/strong>.<\/p>\n\n\n\n In other cases, you might instigate the work by sending an unsolicited business proposal<\/strong> to a potential client. Or it may be something in between these two, where the idea comes up in a conversation and the client asks you to submit a proposal.<\/p>\n\n\n\n You may wonder why you need a business proposal, especially if you\u2019ve put a lot of effort into marketing your business. But as well as acting as a business pitch, a business proposal can also protect you from potential disagreements down the line, as you\u2019ll have expectations in place.<\/p>\n\n\n\n Richard Burle, owner of Richard’s Garden Services<\/a> in West Sussex, believes that laying out both your and your client\u2019s expectations early on can be helpful. He explains that rubbish removal isn\u2019t a service he offers, so he\u2019s always conscious to be upfront about that when pitching to new clients.<\/p>\n\n\n\n Richard says: \u201cI’ve had to create business proposals for working on larger gardens before. They’ve wanted to know what I\u2019m going to do, what services I offer, and how many hours it\u2019ll be.<\/p>\n\n\n\n \u201cI\u2019ll include that I\u2019m going to cut the grass, I’m going to trim back the small shrubs \u2013 but I\u2019ll also include that I don’t take away rubbish. It’s just not cost effective for me to do so.\u201d<\/p>\n\n\n\n This honesty can be important to your customer service practices<\/a> and relationship building with potential clients.<\/p>\n\n\n\n We\u2019ve created a business proposal template to help you create a professional-looking document and win new clients. Download it today and fill yours in by following the step-by-step guide below.<\/p>\n\n\n\n To help with sending future proposals, you might want to create a business proposal template. You can then edit it each time to make it specific to the business you\u2019re pitching<\/a> to.<\/p>\n\n\n\n For a business proposal to help you get the work you\u2019re bidding for, it\u2019ll usually need to include the following points. However, the client may have set out clear guidelines as to what proposal format they’ll accept.<\/p>\n\n\n\n If the layout hasn’t been set in stone, use these eleven points to create your basic business proposal template.<\/p>\n\n\n\n Include a title page to introduce your business and keep your document neat and tidy, giving a good first impression of the way you do business.<\/p>\n\n\n\n This should be well-designed, so include some imagery and text that addresses the client.<\/p>\n\n\n\n Visually speaking, this could be a great opportunity to show some examples of your work. Perhaps the front page image could be a house you renovated or a garden you designed? It\u2019s important to use every page in your business proposal to your advantage.<\/p>\n\n\n\n Treat this as an introduction \u2013 instead of going in cold, include a letter outlining your business and your proposal, keeping it friendly and positive in tone.<\/p>\n\n\n\n Here\u2019s an example of a contractor who is using a business proposal to pitch themselves for a job renovating and decorating a client\u2019s home, using our downloadable business proposal template.<\/p>\n\n\n\n Let your potential client see at a glance what’s included in your document and, if possible, make this section clickable so they can easily jump to any sections they want to re-read.<\/p>\n\n\n\n As a small business owner, you understand better than most how precious busy working people\u2019s time can be. Keep this short, making it a high-level overview of the problem, the expected outcome, an overview of the solution, and a call to action.<\/p>\n\n\n\n Make sure that you avoid jargon throughout your executive summary<\/a> (and business proposal as a whole), instead being clear and concise. If you use a term that you know you\u2019d have to explain to your friends who aren\u2019t in the industry, try to reword it for clarity.<\/p>\n\n\n\n This is the part where you identify the gap that you\u2019re going to fill. What\u2019s your client\u2019s problem and how are you going to solve it? It\u2019s a good place to summarise your goals.<\/p>\n\n\n\n Don\u2019t elaborate too much on your business, keeping it specific to your business proposal itself \u2013 and how it benefits your client.<\/p>\n\n\n\n Here\u2019s how our our renovation contractor example would tackle writing the proposal:<\/p>\n\n\n\n How are you going to address the specific needs of the client? This is where you go into the finer details of what products or services the client will get out of your proposal and when they’ll get them.<\/p>\n\n\n\n Be clear and detailed about what you\u2019re offering, as well as how you\u2019re going to get the work done. Both parties should be able to refer back to the document during the work to make sure that what was agreed is being done.<\/p>\n\n\n\n Then draw up a timeline to bring your proposal to life for the client and focus on developing a realistic delivery plan. More time is always better for you. But if your client has a specific date in mind (perhaps they\u2019re launching a new product and your proposal is going to support it), then be sure to work to that.<\/p>\n\n\n\n Our renovation contractor example may show their methodology this way:<\/p>\n\n\n\n It\u2019s important to also show the customer how you\u2019ll be held accountable \u2013 let them know how much involvement they\u2019ll have in the project.<\/p>\n\n\n\n This is your opportunity to sell your business as the best one for the job. What sets you apart from the competition? Let the client know about your experience of working on similar jobs, by using case studies. They\u2019ll also be reassured to read bios of the person or people they’ll be working with, as well as positive testimonials from customers you\u2019ve worked with in the past.<\/p>\n\n\n\n Gardener Richard understands the importance of case studies and customer reviews in securing new business, revealing: \u201cI’ve got a book with recommendations from my customers. So if I need to convince anyone, I\u2019ll show them my book of what my customers think and I leave it up to them. They don\u2019t have to take my word for it.\u201d<\/p>\n\n\n\n You can also use social media<\/a> to your advantage here, linking to your accounts if you frequently show your work online. This is something Richard does too:<\/p>\n\n\n\n \u201cIf you go on my Facebook page, you\u2019ll see before and after pictures of gardens I’ve worked on. And once they’ve seen that, it normally convinces them.\u201d<\/p>\n\n\n\n This self-explanatory section should let the client know how much it’ll cost<\/a> to put your proposal into action and what you expect the return to be. It’s important to find the balance between overestimating, which can scare the client off, and underestimating, which can lead to disappointment in the future.<\/p>\n\n\n\n Richard believes that underselling yourself with a cheaper quote isn\u2019t always the better choice, and that your price should reflect the quality of your work, saying: \u201cYou have to make your prices what you feel that you’re worth and they should represent what you can actually do.<\/p>\n\n\n\n \u201cI think a lot of gardeners, even established gardeners, are worried about putting their prices up. But when all your expenses are going up, you’re working for less money.\u201d<\/p>\n\n\n\n Richard believes that customers appreciate good quality work and will often pay more to make sure they get it. On losing out to bigger, cheaper businesses, he says:<\/p>\n\n\n\n \u201cI\u2019ve found most of the time when customers go for a cheap quote, they’d be there for a year, but after that the residents get fed up with the quality of work and choose somebody else.\u201d<\/p>\n\n\n\n Read more:<\/strong> 5 ways to tell your customers about a price increase<\/a><\/p>\n\n\n\n Use this section to lay out what the client can expect from you and your business by agreeing to your proposal. This is a good place to set expectations as to payment and delivery dates.<\/p>\n\n\n\n Include a section where the client can formally agree to your proposal, with a gentle call to action to encourage them to sign.<\/p>\n\n\n\n You can make it as easy as possible for them to agree to your business proposal. For example, why not add a \u2018Sign up today\u2019 call to action, with a box that your client can add their signature to?<\/p>\n\n\n\n If you want to go for a less hard sell, let them know how to arrange a phone call to discuss your proposal further. Again, you can include a box that lets your client enter their availability.<\/p>\n\n\n\n Do you have any reports or other forms of evidence to back up what you\u2019ve said in the rest of your proposal? This is the place to include them.<\/p>\n\n\n\n There are a few basic questions to ask when writing a business proposal. They may seem obvious, but it\u2019s always worth double-checking.<\/p>\n\n\n\n Does your proposal make sense?<\/strong> Read it once, read it twice \u2013 and get a second pair of eyes to read it again.<\/p>\n\n\n\n Does your proposal provide value to the customer?<\/strong> The proposal that gives the client the greatest value will win the work, so make sure it\u2019s yours.<\/p>\n\n\n\n Have you really understood what the customer needs?<\/strong> You may have a great idea, but it may not be aligned with what the customer wants \u2013 be sure to consider this.<\/p>\n\n\n\n Have you fully explained how you\u2019ll fulfil those needs?<\/strong> If a client is going to give you work, they\u2019ll need reassurance that you know what you\u2019re doing \u2013 a detailed plan can help set their mind at ease.<\/p>\n\n\n\n Is your proposal visually appealing?<\/strong> If you send your proposal electronically, you can include visual content such as videos and images to bring your proposal to life for the client, and really set your document apart from the rest.<\/p>\n\n\n\n <\/p>\n\n\n\n As one of the UK’s biggest business insurance<\/a> providers, we specialise in public liability insurance<\/a> and protect more trades than anybody else. Why not take a look now and build a quick, tailored quote?<\/p>\n\n\n\nWhy do you need a business proposal?<\/h2>\n\n\n\n
\n\n\n\nDownload your business proposal template<\/h2>\n\n\n\n
\n\n\n\nHow to write a business proposal<\/h2>\n\n\n\n
1. Title page<\/h3>\n\n\n\n
2. Cover letter<\/h3>\n\n\n\n
![\"Screenshot_2024-05-02_at_10.39.04.png\"](\"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/Screenshot_2024-05-02_at_10.39.04.png?w=1024\")
<\/figure>\n\n\n\n3. Table of contents<\/h3>\n\n\n\n
4. Executive summary<\/h3>\n\n\n\n
5. Proposal<\/h3>\n\n\n\n
![\"Screenshot_2024-05-02_at_11.10.24.png\"](\"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/Screenshot_2024-05-02_at_11.10.24.png?w=1024\")
<\/figure>\n\n\n\n6. Services and methodology<\/h3>\n\n\n\n
![\"Screenshot_2024-05-02_at_15.34.39.png\"](\"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/Screenshot_2024-05-02_at_15.34.39.png?w=1024\")
<\/figure>\n\n\n\n![\"Screenshot_2024-05-02_at_11.38.55.png\"](\"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/Screenshot_2024-05-02_at_11.38.55.png?w=1024\")
<\/figure>\n\n\n\n7. Why hire us?<\/h3>\n\n\n\n
8. Costs<\/h3>\n\n\n\n
9. Terms and conditions<\/h3>\n\n\n\n
![\"Screenshot_2024-05-03_at_11.31.43.png\"](\"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/Screenshot_2024-05-03_at_11.31.43.png?w=1024\")
<\/figure>\n\n\n\n10. Agreement and call to action<\/h3>\n\n\n\n
11. Appendices (optional)<\/h3>\n\n\n\n
How can you make your business pitch successful?<\/h2>\n\n\n\n
Useful guides for small businesses<\/h3>\n\n\n\n
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Ready to set up your cover?<\/h3>\n\n\n\n