Business proposals help you win new clients, secure contracts and establish long-term partnerships. Crafting a successful proposal involves showing how you will meet your client’s needs and balancing persuasive communication with a clear value proposition.
This article teaches you how to create compelling business proposals that stand out and land clients. Plus, you’ll discover how you can use Pipedrive’s CRM to streamline the process from proposal writing to tracking.
What is a business proposal?
A business proposal is a strategic plan designed to attract new clients. Companies submit these proposals to potential clients to offer their services or products. It’s like a sales pitch to secure a contract – part persuasion and part detailed outline.
A good business proposal includes several crucial elements, including:
Clear solutions tailored to the client’s needs and supported by examples of past successes
A straightforward pricing strategy that explains how you’ll deliver your offerings
Additional materials, like team resumes and case studies that demonstrate your experience and sales skills
In short, a business proposal is a tool to showcase your company’s offerings. It helps clients decide whether to do business with you by indicating how you’ll deliver what they seek.
Business proposals differ from sales proposals as they offer solutions to meet a client’s broader needs, explaining objectives and long-term value. They can also include proposals for partnerships or other ventures.
Meanwhile, a sales proposal is more targeted, focusing on specific offerings and pricing. Both documents aim to persuade but vary in scope and detail.
Note: Business proposals are also different from a business plan, which focuses on internal operations.
Solicited vs. unsolicited business proposals
Business proposals, like marketing proposals, can be either solicited or unsolicited. The two types of business proposals aim to win business but differ in context and approach. Here’s how they compare:
Proposal type | Description |
Solicited proposals | Companies send solicited proposals in response to a potential client’s formal request. A client might submit a request for proposal (RFP) when they want to hire a service or buy a product. Companies then draft RFP responses – a type of business proposal – to address the request. Since these proposals directly answer a client’s request, they’re typically more detailed and targeted. |
Unsolicited proposals | You submit unsolicited proposals without a client’s specific request. Think of them as cold calls, but on paper. Companies use unsolicited proposals to introduce offerings to prospects who haven’t reached out. These proposals highlight why a sales prospect might benefit from the company’s offerings. They present potential solutions to the prospect’s as-yet-unidentified problems. |
Download Pipedrive’s free business proposal template
What’s in a business proposal?
A business proposal is your chance to showcase how your company can solve a prospective client’s problems. It’s essential to be both persuasive and informative, ensuring every section serves a purpose.
Here’s a breakdown of what to include in a strong business proposal:
Title page. To give a solid first impression, start with a professional title page. Include your company name, proposal title, client’s name, the document’s date and your contact details.
Table of contents. Include a table of contents for easy navigation.
Executive summary. Provide a quick overview of your proposal. Highlight the main points and how your offering benefits the client.
Introduction. Introduce your company and touch on its background. Set the stage for why you’re the right fit for addressing the client’s requirements.
Problem statement. Clearly state the client’s problem, pain points or needs, showing that you understand their challenges and are ready to tackle them.
Proposed solution. Describe your approach to solving the client’s problem. Share the strategies and tools you’ll use to make it happen.
Qualifications. Showcase your experience and expertise with relevant case studies or customer stories to prove you can handle the job.
Pricing information. Lay out the cost of your products or services. Be transparent in your sales price strategy to avoid confusion.
Implementation plan. Outline the timeline and steps for delivering your solution. Give the client a clear picture of what to expect.
Terms and conditions. Include legal and sales contract information, like payment terms and warranties.
Call to action. Wrap up with a call to action (CTA), encouraging the client to take the next step – like scheduling a sales meeting or signing on the dotted line.
Each section builds your case and convinces the client that your company is the right choice.
How to write a business proposal in 11 steps
Writing an effective business proposal is about clearly communicating the value you bring to the table. Here’s a step-by-step process for creating a winning proposal:
1. Research and understand your client’s needs
Tailoring your proposal to a client’s concerns shows you’ve done your homework and will deliver valuable solutions.
Start by gathering information about your client. Learn about their industry and any challenges they face. Check their website, social media and news articles for a complete picture.
Here’s what to do:
Pinpoint pain points. Identify the specific issues your client wants to solve. Review any documents they provide and look at public information about their operations.
Communicate directly. Talk to the client if you can. Reach out through sales discovery meetings, calls or emails. Asking direct questions helps clarify their needs and shows you want to understand their issues.
Check out competitors. Do competitor analysis to understand common industry challenges. Look at what others are doing well and find ways your client can stand out.
Example: Imagine a small business that offers cybersecurity software for startups. It wants to pitch its software proposal to a growing e-commerce company concerned about data breaches.
Through research, it finds that the company’s main pain points are a lack of data protection and complex onboarding processes. After discussion, the software firm confirms that the company lacks seamless integration and threat detection features that protect data.
2. Gather data and plan the proposal content
Now that you understand your prospect’s interests, it’s time to gather data and develop the content. This step builds the backbone of your pitch – it’s where you collect the information and materials needed to make a strong case for your solution.
Find relevant data to support your project proposal, including statistics, research findings or market research reports. The goal is to back up your claims with solid evidence to show the client you’ve done your homework.
Once you have the data, consider what content you’ll include in each section. For example, the executive summary should highlight the key benefits of your solution. Meanwhile, the problem statement defines the client’s challenges.
Example: The cybersecurity firm collects statistics showing that its software has reduced data breaches by 40% for similar e-commerce clients. It also highlights a 30% cost-saving on cybersecurity expenses thanks to its threat-detection functionality.
The firm then organizes this data to support each section of its proposal. The executive summary emphasizes how the software lowers breach incidents. It also notes industry reports that back up the urgency of these threats.
At this point, you’re just getting key information in place. In the next few steps, you’ll develop each section to complete your final proposal. For now, focus on finding key data and outlining what you’ll put where.
3. Craft the problem statement and proposed solution
After setting the stage with your executive summary and introduction, define the problem and present solutions to reinforce your value to the client.
First, clearly articulate the client’s problem or challenge by:
Using straightforward language to show you grasp their situation
Highlighting the problem’s impact on operations management or goals to underscore the need for a solution
Ensuring your statement is concise but detailed enough to capture what needs addressing
Here’s an example of how you can address a client’s issue:
“[e-commerce company] faces a significant challenge with increasing data breaches, leading to a 25% rise in security-related customer complaints over the past year. These incidents risk-sensitive customer data and threaten to erode trust.
As e-commerce grows, robust cybersecurity is essential to protect operations and maintain customer loyalty.”
Once you’ve established the problem, propose your solution in this way:
Detail exactly how your product or service addresses the client’s needs
Be specific about the strategies, methods or technologies you plan to use
Describe the expected outcomes, emphasizing how your solution improves the client’s situation
The cybersecurity solution for the e-commerce company example could read as follows:
“[Cybersecurity company]’s advanced threat detection technology identifies and neutralizes breaches proactively, integrating seamlessly with existing systems for uninterrupted protection. We project implementation to reduce breach incidents by 40% within the first year, boosting customer trust and delivering significant cost savings.”
4. Highlight your qualifications
Including your qualifications shows the client why your company is the best fit. This section should demonstrate your track record in addressing similar challenges. To highlight your achievements, you should:
Showcase relevant experience. Emphasize prior experience that relates to the client’s current needs. Discuss past projects, tasks or roles where you’ve successfully solved problems.
Include case studies and testimonials. Provide brief case studies or testimonials from past clients that highlight successes. Real-world examples lend credibility and show previous clients’ satisfaction.
Highlight team expertise. If your team will play a crucial role, mention their qualifications and experience. Include key team members’ backgrounds, relevant skills or significant achievements.
Awards and certifications. Mention relevant awards, certifications or accreditations your company has received. These accolades add to your credibility and remind the client of your standing in the industry.
Example: The cybersecurity sales firm presents data that shows a 40% reduction in data breaches for similar clients. The company also highlights its ISO 27001 certification, underscoring its commitment to high security standards.
The company includes social proof of successful collaboration and security improvements to bolster credibility. The proposal highlights its top female leader and her team’s extensive experience as a key strength, along with recent awards confirming industry excellence.
5. Provide pricing information
The pricing section should provide clear and well-explained pricing information to make the client feel comfortable moving forward.
Here’s what you’ll need:
Key pricing information | Example |
Clear pricing details. Break down costs clearly so the client understands what they’re paying for. Include itemized products or services, packages or tiers offered. | The company offers a cybersecurity package for $15,000 annually, including installation and support. A tiered option with 24/7 monitoring is available for an additional $5,000 per year. |
Terms and options. Detail payment terms like timelines, installment options or discounts for early payment. Offering flexible options can make your proposal more attractive. | Clients can make payments annually or in quarterly installments with a 5% discount on the total amount for full upfront payment. |
Additional costs. Be upfront about potential extra costs or optional services. Setting clear expectations will build trust and prevent surprises later. | Additional services, like on-site training, cybersecurity tips and quarterly security audits, are $500 per session. |
6. Create the implementation plan
When you’re ready to craft the implementation plan, clearly outline how you’ll bring your solution to life. Break the project into manageable phases with start dates, key milestones and expected deliverables. Show your client how the project will unfold and when to expect results.
Try to anticipate challenges and describe your strategies to overcome them. Being proactive will reassure the client that you’re well-prepared.
Example: The cybersecurity firm’s implementation plan has three phases. Phase 1 – software installation – occurs between April 1st and April 15th. Phase 2 covers training and integration, scheduled for the following two weeks. Phase 3, starting in May, involves monitoring and feedback sessions.
Your firm should address potential integration issues with real-time customer service and training resources. For example, if your clients struggle to integrate a particular tool, you could include step-by-step documentation to help.
7. Write the executive summary
With your data and content ready, it’s time to write the executive summary. This section sets the tone and provides a quick glimpse into your offering. It should be a snapshot of your entire proposal, capturing its essence in a few paragraphs.
While some sources recommend writing the executive summary earlier, it is more effective to do so after organizing your proposal’s content.
The sales copy in your executive summary should include:
The key benefits of your solution (your value proposition)
Your unique selling proposition (USP) – what sets your product apart from competitors
A brief outline of how you plan to meet client expectations
A CTA that encourages prospects to continue reading
Going back to the cybersecurity example, the executive summary could include:
“As your cybersecurity partner, [cybersecurity company] can help [e-commerce company] enhance its data protection measures. With a 25% increase in security incidents, protecting sensitive customer information is crucial. Our solution aims to reduce breaches by 40% and cut cybersecurity costs by up to 35% annually. It seamlessly integrates into your systems with minimal disruption and includes round-the-clock support and training. We’re eager to improve [e-commerce company]’s security and seek your approval to start next quarter.”
Keep the executive summary concise and focused. Stick to the most compelling points to capture the client’s interest quickly. Remember, this section is your first impression, so make it engaging and informative to encourage the client to read further.
8. Create your introduction
Next, move on to the introduction. Here, you give a brief overview of your company and its background. The goal is to show your understanding of prospective clients and their needs. You should underline your interest in working with them and how you align with their business goals.
The introduction should include:
Key information | Example |
A brief company overview. Provide a snapshot of your company. Highlight key aspects like your history, mission and company core values. | [Cybersecurity company], founded in 2010, delivers innovative cybersecurity solutions. Our mission is to protect businesses by implementing advanced security measures that safeguard data and ensure continuity. |
Any relevance to client needs. Demonstrate your understanding of the client’s business and their specific objectives. | We recognize that [e-commerce company] faces increasing security threats that jeopardize customer trust. Our software addresses these vulnerabilities and enhances the overall security framework. |
Your alignment with client goals. Explain how your company’s objectives align with the client’s goals or industry challenges. | Just as [e-commerce company] aims to provide secure online sales, [cybersecurity company] focuses on preventing breaches and ensuring data safety, helping you uphold customer confidence and brand reputation. |
Your experience and expertise. Touch on your experience and expertise relevant to the client’s goals. | With over a decade of experience, [cybersecurity company] has successfully reduced breach incidents for clients by up to 40%, demonstrating our ability to handle complex security challenges. |
The introduction sets the stage for the rest of the proposal, so it should build rapport and establish a positive tone from the start.
Note: Although the introduction comes early in the final proposal, it’s best to write it after you’ve completed most of the document. Doing so will ensure it aligns with key points and solutions outlined later, making it more cohesive.
9. Draft your terms and conditions
Terms and conditions outline the responsibilities and expectations of both parties. This section should clearly define the legal and operational aspects of your agreement.
First, detail the scope of work. Specify what services or products you’ll provide and anything outside this scope. Clarity will ensure you and the client are on the same page.
Next, outline payment terms. Include payment schedules, acceptable payment methods and any late payment penalties. If necessary, include confidentiality agreements. If the project involves sensitive information, outline how you’ll protect it.
Finally, address any after-sales terms, like warranties, liabilities and termination clauses. These conditions protect your company and the client, providing a framework for resolving issues if they arise.
Example: The cybersecurity company defines the scope as providing installation, monitoring and support, excluding hardware upgrades. Payment is due quarterly via bank transfer or credit card, with a 5% penalty for late payments.
The confidentiality agreement protects the e-commerce business’s data with strict access controls and encryption. Additional terms include a one-year warranty on product updates, limited liabilities for direct damages and a mutual termination clause requiring 30 days’ notice.
10. Design the title page, table of contents and call to action
Your title page sets the first impression, so keep it clean and professional. Include essential details like the proposal title, your company name, the client’s name and the proposal date. Add your logo or a splash of colors to highlight your brand story and make it visually appealing.
Here’s a business proposal example to give you an idea of a good title page:
After this, write an organized table of contents to make your proposal easy to navigate. List all major sections with headings, subheadings and corresponding page numbers.
End with a persuasive CTA to encourage the client to take the next step, whether it’s scheduling a meeting or signing off. Make it direct and position the CTA prominently at the end of the proposal.
11. Review, edit and finalize the proposal for submission
A well-polished proposal reflects your attention to detail, leaving a positive impression on the client. Before submitting your proposal, review and edit it for clarity, consistency and errors. Double-check facts, figures and references and make sure the layout is professional and consistent.
When you’re ready, submit the proposal to grab your client’s attention and await their response. Remember, an effective proposal has a higher chance of converting prospects into loyal customers.
Top tips for writing a business proposal
Building on the detailed steps above, here are eight essential tips to make your business proposal more persuasive and boost your chances of success:
Write in clear and concise language. Communicate your ideas simply and directly. Avoid jargon and ensure each section is easy to understand so the client can quickly grasp your main points.
Incorporate graphics and visuals. Infographics and visuals make complex information more accessible and interactive. Use charts, graphs and images to illustrate key concepts.
Apply consistent branding. Branding reinforces your company identity and makes your proposal memorable. Infuse your document with consistent logos, colors and fonts.
Tailor to the client. Customization shows you understand specific needs and goals. Personalize each proposal to make it relevant and impactful.
Offer a strong call to action. A clear next step encourages clients to engage further. Prompt them to take the next action, like booking a meeting or signing a contract.
Address potential objections. Anticipate your prospect’s concerns to prevent hesitation. Aim to overcome objections proactively to build confidence in your solution.
Make it skimmable. Easy-to-navigate proposals save clients time. Use headings and bullet points to highlight key information.
Follow up. A gentle reminder keeps your proposal top of mind. Send a friendly message to maintain the conversation and show that you’re actively thinking about your prospect.
Turn Maybe Into Yes With These Killer Follow Up Email Templates
How to track your business proposal in Pipedrive
Managing a business proposal in Pipedrive’s CRM solution means keeping your proposal details organized and accessible. The solution helps you to efficiently track where each proposal stands in the sales pipeline, ensuring timely follow-ups.
Here’s how to leverage Pipedrive’s features for effective proposal management.
Create a custom pipeline to track creation and follow-up stages
Create a new sales pipeline for your business proposal, with custom stages for “Proposal drafting”, “Proposal sent”, “Client feedback”, “Negotiation” and “Final decision”. As you progress with the proposal, move it through the corresponding pipeline stages.
Use deals to monitor proposal progress
You can create and manage a deal within Pipedrive for each new proposal. Add essential details to the deal, like the client’s name, contact information and the expected closing date. Upload any related documents directly to the deal to keep everything organized.
Pipedrive color-codes deals to show health status. Use green to show you’re on track and red to indicate an overdue step or issue.
Set up activity schedules
Schedule activities like client meetings, follow-up calls or feedback deadlines for each deal. Use Pipedrive’s notifications feature to receive alerts about upcoming activities so you don’t overlook essential steps.
As you complete activities, mark them off in Pipedrive to easily see what you’ve done and what still needs attention.
Use Pipedrive’s proposal creation integrations
Pipedrive offers a range of proposal creation integrations to simplify the proposal writing process. Connect with tools like PandaDoc, Click2Contract or DocuSign to create, send and track proposals without leaving your CRM.
For example, here’s what PandaDoc looks like in Pipedrive:
Final thoughts
Mastering a business proposal means getting to the heart of your client’s requirements and proving how you can fulfill them. When you apply the strategies above, you’ll find that proposals resonate more with prospects, increasing successful pitches and your conversion potential.
Pipedrive’s CRM features and integrations can help you create, manage and track proposals effortlessly, giving you more time to focus on crafting a winning pitch. Try a 14-day free trial to see how Pipedrive can streamline your proposal workflow and boost your chances of closing deals.
