What is A Business Proposal? Unlike a business plan, which is written to run your company and raise capital, a business proposal is an unsolicited or solicited bid for business. There are two types of business proposal that can help you gain more business to grow your company. Types of proposals There are mainly three types of proposal:- 1:-Business proposal 2:-Technical proposal 3:-Research proposal

1. Business Proposals
What is A Business Proposal?
Unlike a business plan, which is written to run your company and raise capital, a business
proposal is an unsolicited or solicited bid for business. There are two types of business
proposal that can help you gain more business to grow your company.
Types of proposals
There are mainly three types of proposal:-
1:-Business proposal
2:-Technical proposal
3:-Research proposal
But we can Classify Proposals into
Internal proposals
Proposal written to someone within your organization.
External Proposals
Written from one separate individual or organization to another individual or organizations
Solicited Business Proposal:
A corporation or government body is seeking a business to fulfill a project or complete a task
and thereby, allows companies to bid for the project. An open bid is placed on the market
with other companies competing for an interview spot. The winning candidate is offered the
project.
Unsolicited Business Proposal:
At some point, your small business may want to do business with a larger company or forge a
joint venture. A well-written business proposal can win the hearts and minds of your target
audience.
If you need to write a business proposal to win a bid, you will need to know the key winning
elements of a successful proposal. Make sure your proposal stands out in the stack of
competitor proposals by including the following 5 elements:
5 Key Elements of Winning Business Proposals
· Solutions: After you have written a lead paragraph on the company's needs and problems,
follow up with a solid presentation of how your business can provide solutions. The key here
is to promise solutions you can deliver.

2. · Benefits: All winning business proposals, clearly outline for the company the benefits to be
gained from doing business with you. If your small business can offer complete
confidentiality and meet tight deadlines state it in your benefits section.
· Credibility: This is often the overlooked portion of a business proposal but all winning
proposals glow with credibility. If you have worked with clients in the same field or have an
award-winning business, then third-party endorsements will build credibility.
· Samples: A business proposal with samples and evidence of your ability to deliver is vital to
gaining the winning bid. A small sample of your work can show your ability to do the job.
· Targeted: A winning business proposal is all about communication. Speak in a language
spoken by your intended audience. If the proposal evaluators are from an engineering
background or financial department use the appropriate jargon.
Ultimately, the best business proposal is none. When your company is well-positioned and
unique in the marketplace then it is only you who can meet the needs of the company
requesting the bids. If a retail craft chain is looking for a web design firm and your company
specializes in web creation for the crafts industry you might be able to circumvent the
proposal process.
In the end, you may not win all bids, but will win business that best matches your company to
the prospective business. A win-win for all parties involved.
Components of Business Proposals
 Title and Executive Summary
The title of the business proposal should identify what the proposal is about in clear terms.
The executive summary provides basic information regarding the project, such as project
objectives, solutions, costs, and methodology. This section has two aims:
· Attracting the reader's interest to the details that follow.
· Providing an orientation for the reader to delve into the finer points.
The executive summary, though placed first in the proposal, is drafted last, for it provides a
gist or an overview of the report that follows. Ideally it should be limited to two or three
pages, and not more than ten percent of the total report length.
 Introduction
The introduction component of the business proposal structure ideally covers:
1. The business entity in terms of company, partnership, proprietorship.
2. The major activities of the business entity.
3. A brief history of past relevant accomplishments.
4. The values and the ethical standards adopted in dealings with stakeholders.
5. The purpose of the proposal.

3. 6. Credits, including the author and external sources who helped prepare the proposal.
7. Concise personal profiles (not resumes) of key people who would drive the project.
8. The contact details of the key person to contact for follow-up on the proposal.
9. The intended recipients of the proposal and any access restrictions.
10. The date of the proposal and its validity.
The best reports confine the introduction to one page, but still cover all details.
 Problem/Need Statement
The problem or need statement is a critical component of the business proposal methodology,
defining what the proposal tries to achieve. It sets the direction, tone, and structure of the
proposal.
The major components of the Problem/Need section are:
1. Statement of problem or need reinforced with facts, statistics, interviews, and
comparisons.
2. The relevance of the need, or why the problem needs a resolution.
3. Present status, including a history of past performance in graphs and tabular formats,
to prove an insight of the extent of the gap between existing state and ideal state, and
what is takes to effect the required transformation.
The optimal length of the problem/need section is two to three pages.
 Objective/Solution
The objective or solution section details the goals that the proposal hopes to accomplish and,
ideally, contains:
1. The goals broken down into small measurable time-bound targets.
2. Function wise strategies and plans to achieve the objectives and solutions, such as
marketing plans, staffing strategy, and related methods.
3. Projections based on assumption of sales volumes in terms of size, turnover, structure,
depth, and breadth of operations at the end of a stipulated period.
4. Profile of target markets or customers including trends and competition.
5. A worst case scenario if forecasts fail to materialize.
6. Product descriptions for proposed products and process descriptions for new or
modified processes, including product or process highlights, target beneficiaries, and
how the product or process satisfies the need
Avoid generalized statements such as "we target 10 percent of the 100 million market within
three years." Good reports build up the analysis from the present status data given in the
problem/need section of the proposal.

4.  Work Plan
The work plan lists the approach or methodology proposed to attain the objectives or reach
the solution. It includes:
1. A management plan detailing project structure and organization of work with
milestones, plus implementation schedule.
2. A description of each proposed activity with timeframe, including the competence of
the person responsible for the activity.
3. Management structure, including administration and system profiles.
4. A list of exceptions, or what the proposal does not include, and reasons for such
exclusions. For instance, some items listed in the need statement might not find
mention in the objectives as the cost-benefit analysis makes fulfillment of such need
unviable.
An important consideration is to set a realistic timeframe for the likely rate of progress, and
include provisions for lags.
One important sub section of the work plan is staffing. This section lists:
1. Total manpower requirements of the project.
2. Job descriptions for all staff.
3. Biographies of key team members listed in the introduction and work plan.
 Budget
The budget section is the most critical section in the structure of a business proposal, for the
acceptance of the proposal is usually based or contingent upon financial considerations. This
section incorporates:
1. The costs and pricing for implementing the work plan.
2. Projections such as proposed cash flow, profit and loss statement, balance sheet, and
key ratios.
3. Cost benefit analysis for implementing the objectives.
4. Source of funds, for instance, debt or equity.
5. Tax implications and accounting standards used.
6. Any funding requests with potential returns on investment.
The budget should ideally include not just a detailed breakdown of actual figures, but also a
justification for the stated amounts.
 Evaluation
The evaluation section reviews the work plan to underscore the strong points. This section
usually incorporates:

5. · A Strength-Weakness-Opportunities-Threat (SWOT) analysis of the work plan in
terms of how the proposed plan builds on key strengths, resolves internal weaknesses,
exploits opportunities, and avoids threats related to the business.
· Issues and risk factors that can derail or hold up the work plan.
· Contingency plans to deploy when established plans go awry due to internal or
external factors. Good reports document everything that may go wrong, and prepare a
dedicated plan for each such issue.
· Case Studies that illustrate successful implementation of similar projects, for
benchmarking.
 Conclusion
The conclusion is a review of what the business expects to achieve and strives to reinforce the
proposal by restating the problem and solutions as well as possible reasons why the proposed
work plan will succeed.
The conclusion section also contains:
· Testimonials or references of satisfied clients that serve to add credibility to the
proposal
· Appendices containing lists of tables and detailed information, exhibits, and other
important data referred to in the text. The appendices help avoid cluttering the report
with excessive detail.
A carefully written business proposal which adheres to the accepted structure increases the
chance of acceptance multifold.
http://www.brighthub.com/office/entrepreneurs/articles/77391.aspx

6. · A Strength-Weakness-Opportunities-Threat (SWOT) analysis of the work plan in
terms of how the proposed plan builds on key strengths, resolves internal weaknesses,
exploits opportunities, and avoids threats related to the business.
· Issues and risk factors that can derail or hold up the work plan.
· Contingency plans to deploy when established plans go awry due to internal or
external factors. Good reports document everything that may go wrong, and prepare a
dedicated plan for each such issue.
· Case Studies that illustrate successful implementation of similar projects, for
benchmarking.
 Conclusion
The conclusion is a review of what the business expects to achieve and strives to reinforce the
proposal by restating the problem and solutions as well as possible reasons why the proposed
work plan will succeed.
The conclusion section also contains:
· Testimonials or references of satisfied clients that serve to add credibility to the
proposal
· Appendices containing lists of tables and detailed information, exhibits, and other
important data referred to in the text. The appendices help avoid cluttering the report
with excessive detail.
A carefully written business proposal which adheres to the accepted structure increases the
chance of acceptance multifold.
http://www.brighthub.com/office/entrepreneurs/articles/77391.aspx