A business proposal is a document that outlines how you can solve a problem, meet a need, or create an opportunity for a potential client or partner. It is a powerful tool to persuade and impress your audience, but it also requires careful planning, research, and formatting. In this article, we will discuss the best way to format a business proposal in six steps.
Before you start writing, you need to define your purpose and audience for your proposal. What are you trying to achieve? What are the goals, needs, and challenges of your client or partner? How can you align your solution with their values and expectations? These questions will help you tailor your content, tone, and style to suit your specific situation and audience.
In my opinion, talking about industry specific practices and tying in your experience with them shall earn you the clients' attention.
Depending on your purpose and audience, you may choose from different types of business proposals, such as solicited, unsolicited, formal, or informal. However, most proposals follow a common structure that consists of four main sections: executive summary, problem statement, solution description, and call to action. You may also include additional sections, such as budget, timeline, qualifications, references, or appendix, depending on the complexity and scope of your proposal.
Most people use a structure that is backward by starting by answering "why us?" What seems to work better for client is starting with the problem and why they need to change. Following by what changes the client will need to make and the solution to produce the desired outcome, the milestones, ending on the "why us" and the resources they contribute.
The executive summary is the first and most important part of your proposal. It should provide a clear and concise overview of your proposal, highlighting the main problem, solution, benefits, and value proposition. It should also capture the attention and interest of your reader and motivate them to read the rest of your proposal. The executive summary should be no longer than one page and should be written after you have completed the other sections.
It's always a good idea to find out how your clients like to present their business justification documents during internal meetings. If you can, try to create your executive summary in that same format. While they will likely not share product summary decks, they'll definitely appreciate a well-crafted business case that you've worked on together. By collaborating with your clients on these executive summaries, you not only increase their commitment and ownership, but also make them feel more confident in those internal meetings, establishing you as a trusted advisor who can add value to their decision-making process.
The problem statement is the section where you demonstrate your understanding of your client's or partner's situation, needs, and challenges. You should use data, facts, and evidence to support your analysis and show the urgency and significance of the problem. You should also show how the problem affects their goals and objectives and why they need your help. The solution description is the section where you present your proposed solution and how it will address the problem. You should explain the features, benefits, and advantages of your solution and how it will meet or exceed your client's or partner's expectations. You should also show how your solution is different from and better than other alternatives.
I help Community Association members preserve & enhance the value of their investments.
That's a good follow up when getting the prospect to describe their process for eval & purchase. I have found it helpful to ask where the prospect might see roadblocks and who else we could involve to move our proposal forward. A good way to get on the same side of the table with the prospect.
The call to action is the section where you ask your reader to take the next step towards accepting your proposal. You should state clearly what you want them to do, such as sign a contract, schedule a meeting, or make a payment. You should also provide a deadline, an incentive, or a guarantee to encourage them to act quickly and confidently. You should also thank them for their time and attention and express your enthusiasm and commitment to work with them.
The format of your proposal should reflect your brand identity, your industry standards, and your reader's preferences. You should use a clear and consistent layout, font, color, and style throughout your proposal. You should also use headings, subheadings, bullet points, tables, charts, and images to organize and illustrate your information. You should also proofread and edit your proposal for grammar, spelling, punctuation, and clarity. Finally, you should choose an appropriate format for delivering your proposal, such as PDF, Word, or online platform.
I frequently see sellers using presentation software like PowerPoint to create proposal documents. Proposals and presentations serve different purposes. If the document is meant to be projected onto a screen, it's a presentation. Don't fill the screen with words and diagrams that the audience cannot read from the back of the room. Consider the presentation as a summary of the proposal, a separate document. Use the same rules you would with a sales presentation, i.e., keep each panel clear and simple.
Always follow the instructions in the RFI/RFQ/RFP. The more in line with the requirements you are, the more likely your proposal will be looked at. Many of the agencies sending these out scan and use Ctrl/Cmd+F to find the answers to their requests.
Consider creating an index of buyers' decision criteria and the pages in your proposal where each one is addressed. Put this up front after the executive summary.