Unit 37: Proposals
Learning Objectives
After studying this unit, you will be able to identify the parts of effective traditional documents such as proposals.
Introduction
A proposal is a business document that makes a case for your product or service to a hiring company or funding organization. Knowing how to write a proposal is a vital skill in business because organizations seeking services from business-to-business contractors will often put out a request for proposals, or RFP, to select the right contractor to perform the work. A proposal formally bids on that contract and is therefore essential to gaining work. Before we dive in deeper, watch this short video overview, How to Write a Business Proposal, on developing business proposals.
Purpose
Effective business proposals are built around a great idea or solution. While you may be able to present your normal product, service, or solution in an interesting way, you want your document and its solution to stand out against the background of competing proposals. What makes your idea different or unique? How can you better meet the needs of the company than other vendors? What makes your idea so special? If the purchase decision is made solely on price, it may leave you little room to underscore the value of service, but the sale follow-through has value. For example, don’t consider just the upfront sticker cost of the unit but also its long-term maintenance costs. How can maintenance be a part of your solution? In addition, your proposal may focus on a common product where you can anticipate several vendors at similar prices. How can you differentiate yourself from the rest by underscoring long-term relationships, demonstrated ability to deliver, or the ability to anticipate the company’s needs? Business proposals need to have an attractive idea or solution to be effective (Business Communication for Success, 2015).
Knowledge Check
Order of Parts
You can be creative in many aspects of the business proposal, but follow the traditional categories. Businesses expect to see information in a specific order, much like a résumé or report. Each aspect of your proposal has its place and it is to your advantage to respect that tradition and use the categories effectively to highlight your product or service. Every category is an opportunity to sell, or persuade and should reinforce your credibility, your passion, and the reason why your solution is simply the best (Business Communication for Success, 2015).
Table 37.1: Formal Sales Proposal Standard Parts
| Report Type | Function |
|---|---|
| 1. Cover Page | Title page with name, title, date, and specific reference to a request for proposal if applicable |
| 2. Executive Summary | Like an abstract in a report, this is a one- or two-paragraph summary of the product or service and how it meets the requirements and exceeds expectations. |
| 3. Background | Discuss the history of your product, service, and/or company and consider focusing on the relationship