Knowing exactly what needs to be included in a business proposal is crucial for winning a contract for your small business. Unlike a business plan, which is designed to direct strategy and raise capital, a business proposal is a bid-specific sales pitch to earn more work. The two primary types of business proposals are solicited and unsolicited proposals.
Solicited Business Proposals
A solicited business proposal is one that is requested by the potential contract holder. For example, a corporation or government body seeking an outside company to fulfill a project or complete a task may choose to allow companies to bid for the job. As such, a business proposal may be drafted in response to an open bid placed on the market for which other companies will also be competing for a chance to win the contract. Solicited business proposals can also be made available to a select company or group of companies.
Unsolicited Business Proposals
Unsolicited business proposals, on the other hand, are proposals that have not been specifically requested. They are submitted on the initiative of the seller and function as a way to get the attention of a prospective client. By submitting a targeted, well-written business proposal, businesses create an opportunity to win the confidence of a strategic client. A small business can also use an unsolicited proposal when attempting to forge a joint venture with another business.
Writing a Business Proposal
If you want to write a business proposal that wins an invitation for bid (IFB), request for quote (RFQ), or request for proposal (RFP), you should know what specifics need to be addressed, and how your company can rise to the task. Make sure your proposal stands out by incorporating the following five components: You can’t develop a winning business proposal for every potential buyer, but with a well-practiced formula and consistant execution, you have a better chance of winning new contracts from companies that need what your small business can offer.
