Overview of Business Proposal Writing
When a business starts to compete for larger contracts more formal sales processes and tools are often required. Business proposals are one of these key tools for winning new clients and projects. They outline solutions to a potential client's needs and explain why your company is the best choice.
Purpose of a Business Proposal
A business proposal aims to persuade a potential client to choose your company's products or services. It shows how you can solve their problem or meet their needs better than competitors. The proposal should clearly explain:
• What you're offering
• How it benefits the client
• Why you're uniquely qualified
• Pricing and timelines
A good proposal demonstrates that you understand the client's situation and have a solid plan to help them. It builds trust and shows the value you'll provide.
Types of Business Proposals
There are two main types of business proposals:
- Solicited proposals: These respond to a client's request for proposals (RFP). The client has outlined what they need, so you tailor your proposal to those requirements. These are often requested from a inbound lead or via business development activity. They can also be a requirement of a formal tender or ITT.
- Unsolicited proposals: These are sent without a formal request. You spot an opportunity and proactively suggest how your company can help.
Both types should be customised to the specific client and situation. A generic proposal is unlikely to win business. Research the client thoroughly and address their unique challenges and goals in your proposal.
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Elements of a Strong Proposal
A strong business proposal has key parts that work together to convince the reader. These elements need to be clear, focused, and tailored to the client's needs.
Executive Summary
The executive summary gives a quick look at the main points of the proposal. It should grab the reader's attention and make them want to learn more. We aim to keep it short - about one or two pages long.
Key things to include:
• A brief intro of our company
• The client's problem or need
• Our proposed solution
• Why we're the best choice
• Expected results and benefits
The summary needs to be clear and persuasive. We want to show we understand the client's needs and have a solid plan to meet them.
Proposal Objectives
This part lays out the specific goals we want to achieve. We need to make these objectives:
• Clear and easy to understand
• Measurable, so we can track progress
• Realistic and doable
• Linked to the client's needs
For example, if pitching a new software system, your objectives might be:
- Cut data entry time by 50%
- Boost report accuracy to 99%
- Train all staff within 3 months
By setting clear objectives, we show the client exactly what they can expect from our work.
Methodology and Approach
Here, we explain how we'll reach our objectives. We need to give a step-by-step plan that shows we know what we're doing.
We should include:
• The methods we'll use
• Why we chose these methods
• A timeline for each stage
• Who will do what on our team
It's good to use charts or graphs to make our plan easy to follow. We might also want to mention any special tools or tech we'll use.
We need to show we've thought through all the details. This helps build trust with the client and proves we're ready to tackle their project.
Need to developing your proposal writing skills?
See our bid writing coursesBusiness Proposal Writer Skills vs Sales Manager
To highlight the skills of a Business Proposal Writer we have compared them against the typical requirement of a Sales Manager, highlighting their differences and how they can work together:
Business Proposal Writer Skills
- Writing and communication
- Research and analysis
- Attention to detail
- Project management
- Persuasion and influencing
- Technical knowledge
Sales Manager Skills
- Relationship building
- Business development
- Negotiation
- Market knowledge
- Strategic planning
Business Proposal Writers and Sales Managers possess distinct but complementary skill sets that together create a powerful work winning team! Business Proposal Writers excel in writing and communication, research and analysis, attention to detail, project management, persuasion, and often technical knowledge. Their focus is on developing clear, accurate, and persuasive proposals tailored to client needs and market trends.
On the other hand, Sales Managers thrive in relationship building, business development, negotiation, market knowledge, and strategic planning. They are adept at developing and maintaining client relationships, identifying new opportunities, and closing deals. Together, they form a team where the Proposal Writer’s meticulously crafted proposals provide a strong foundation for the Sales Manager to build relationships, negotiate terms, and secure contracts. This collaboration ensures that proposals are not only compelling and relevant but also strategically aligned with sales objectives, maximising the chances of winning work.
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Below, we dig into 8 further business proposal writing skills.
(1) Understanding the Target Audience
Knowing our audience is key for crafting winning business proposals. We need to dig into who they are and what they want! This means reading beyond just the documents provided as part of the tendering process. With public sector tenders you may also find information within vision documents, strategies and plans publicly published. Within private sector tender opportunities, you will find some information online, but it is more important to work hand-in-hand with your sales lead.
Stakeholder Analysis
Stakeholder analysis helps us grasp who's involved in the decision-making process. We start by listing all the key players - executives, managers, end-users, and others who might influence the choice.
For each stakeholder, we note their role, interests, and concerns. What keeps them up at night? What are their goals?
We also look at how much power each person has in the decision. Some may have veto rights, while others just give input.
Demographics matter too, this is especially important in healthcare tenders. But generally, you can check things like age, job level, and industry experience, which can be found on platforms LinkedIn. This shapes how you present our ideas.
Lastly, we map out relationships between stakeholders. Who trusts whom? Are there any conflicts? This guides our approach.
Customising Proposals for Different Audiences
Once we know our audience, we tailor our proposals to fit. We adjust our language, focus, and format for each group. In formal tenders we can reflect the language they use in the procurement documents. We match our tone to the company culture. Some want formal language, others prefer a casual chat.
We address specific pain points for each reader - this is the key. What problems can we solve for them personally?
By customising, we show we've done our homework and truly get their needs.
(2) Conducting Market Research
Market research is crucial for creating an effective business proposal. We'll explore key methods for gathering data and analysing competitors to inform your bid strategy.
Data Collection Methods
We use several techniques to collect valuable market information. Surveys are a popular choice, allowing us to reach a large audience quickly. We design questionnaires with clear, targeted questions to get useful insights.
Focus groups provide in-depth feedback through guided discussions. We carefully select participants to represent our target market. This method helps us uncover detailed opinions and preferences.
Interviews with industry experts offer specialist knowledge. We prepare thoughtful questions to make the most of these one-on-one sessions. Their insights can reveal trends and challenges in the market.
Online analytics tools track customer behaviour on websites and social media. We use this data to understand buying patterns and preferences. It's a cost-effective way to gather large amounts of information.
Competitor Analysis
Studying competitors is important for positioning our business effectively and ultimately ensuring business proposals will be successful. We start by identifying our main rivals in the market. This includes both direct and indirect competitors who offer similar products or services.
We examine their product offerings, pricing strategies, and marketing tactics. This helps us spot gaps in the market and potential areas for differentiation. We also look at their strengths and weaknesses to inform our own strategy.
Customer reviews and ratings provide valuable insights into competitor performance. We analyse this feedback to understand what customers like and dislike about existing options. This informs our own product development and customer service approaches.
We track competitors' online presence, including their website content and social media activity. This gives us an idea of their target audience and messaging strategies. It also helps us identify trends in the industry.
(3) Structuring Your Proposal
A well-structured business proposal makes it easy for readers to find key information. It guides them through your ideas in a logical flow. Good organisation and visual design are crucial for creating a persuasive proposal.
Organising Content
We start with a title page to make a strong first impression. This includes our company name, logo, and the proposal's title. Next, we add a table of contents to help readers navigate the document.
The executive summary comes after. It's a brief overview of our main points and solutions. We keep it concise, aiming for about 1-2 paragraphs.
We then dive into the main sections:
• Problem statement
• Proposed solution
• Timeline and milestones
• Pricing and payment terms
• About our company
Each section should flow logically into the next. We use clear headings to mark different parts.
Visuals and Formatting
Visual elements make our proposal more engaging and easier to understand. We use charts, graphs, and images to illustrate key points. These break up text and help explain complex ideas quickly.
Consistent formatting is key. We choose a clean, professional font and stick to it throughout. We use bullet points and numbered lists for easy scanning.
White space is our friend. We don't cram pages full of text. Instead, we leave margins and space between sections. This makes the document less daunting to read.
We bold important phrases and use italics sparingly to emphasise points. Tables can be useful for comparing options or displaying pricing information clearly.
(4) Writing Compelling Content
A strong business proposal needs persuasive writing to grab attention and win clients. Clear language and powerful arguments are key for success, ensuring they answer the question.
Clear Language and Tone
We should use simple words and short sentences in our proposals. This makes our ideas easy to understand. Jargon and complex terms can confuse readers.
It's best to write in an active voice. This sounds more direct and confident. For example, "We will complete the project in 30 days" is better than "The project will be completed in 30 days."
We must keep a professional tone throughout. Our writing should be polite but not too formal. A conversational style often works well to connect with readers.
Persuasive Elements
To make our proposals more convincing, we need to focus on benefits. We should explain how our solution will help the client's business. Using specific examples and data can strengthen our claims.
We can use bullet points to highlight key advantages:
• Save time and money
• Increase productivity
• Boost sales
Adding social proof is another useful tactic. We can include brief quotes from happy clients or mention awards we've won. This builds trust in our skills.
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(5) Budgeting and Pricing Strategies
Not everyone involved in business proposal writing will produce the pricing. However, being able to understand the commercials and how and why it has been calculated is important. This commercial skill is critical for business proposal writers as it is what often drives the solution and the offer, which is the key to your success.
Let's take a look at how costs are calculated to start building on those commercial skills.
Cost Estimation
We start by listing all project expenses. This includes direct costs like labour and materials, as well as indirect costs such as office rent. It's crucial to be thorough and not overlook any expenses.
Next, we add up these costs and factor in our desired profit margin. This gives us the total project cost.
For complex projects, we might break tasks down into hourly or daily units. This allows for more precise estimates.
We also need to build in a contingency of 10-15% for unexpected issues. This helps avoid budget overruns later.
Value Proposition
Our pricing should reflect the value we provide, not just our costs. We focus on highlighting the unique benefits and outcomes of our solution.
We clearly explain how our proposal solves the client's specific problems. Concrete examples and data help illustrate our points.
It's effective to compare our solution to alternatives, showing why ours offers better value. We might use a simple table to display this comparison.
Bundling services can make our pricing more attractive. For instance, we could offer a package deal that includes implementation support. Packages and options just make decision making easier, as long as they are still based on the customers requirements. However, if there is a pricing schedule you need to follow the instructions and work in line with it, ensuring compliance.
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Looking for a proposal writer? Or a quote?
Contact us today(6) Risk Assessment and Management
Working with a new supplier has additional risk. Risk assessment and mitigation or management are essential skills for business proposal writers, as they are a key element of the bid writing process. We need to identify potential issues and develop strategies to address them proactively, thus reassuring the client.
Identifying Potential Risks
We start by pinpointing risks that could impact our project. These may include:
- Financial constraints
- Technical challenges
- Market changes
- Resource shortages
- Regulatory issues
We then analyse each risk's likelihood and potential impact. This helps us prioritise our focus.
Creating a risk matrix can be helpful. We list risks on one axis and their severity on the other. This visual tool makes it easier to spot the most critical issues.
Mitigation Strategies
Once we've identified risks, we develop plans to reduce their impact. Some key strategies include:
- Risk avoidance: Changing project plans to eliminate the risk
- Risk reduction: Taking steps to lower the chance of the risk occurring
- Risk transfer: Shifting the risk to a third party, like through insurance
- Risk acceptance: Preparing for potential consequences if the risk occurs
We then assign team members to oversee each risk based on their area of expertise.
This can be great evidence in your business proposals, as well as helping to form your win themes.
(7) The Role of Technology in Proposal Writing
Technology has always been involved in proposal writing. New ways to write business proposals faster and more efficiently is not new. AI in bid management is now the hot topic and being used to help create polished, professional proposals.
Proposal Writing Software
Dedicated proposal software helps writers craft winning bids. These programmes offer templates, content libraries, and collaboration features. Writers can quickly assemble proposals using pre-approved sections and formatting. At Thornton & Lowe, we have our own bid software, including Tender Library and Tender Pipeline.
Many tools also include analytics to track client engagement. This helps writers see which parts of proposals resonate most. Some software even uses AI to suggest improvements or customise content.
Compare bid management software solutions on RFPVerse.com.
Digital Communication Tools
Online collaboration is key for proposal teams. Cloud-based tools like Google Workspace and Microsoft 365 allow real-time editing and commenting, which adds a lot of value for bid reviews. This speeds up review cycles and ensures everyone's on the same page.
Video conferencing software like Zoom and Teams facilitate virtual meetings with clients and team members. Screen sharing makes it easy to present drafts and gather feedback.
Project management tools such as Trello help writers stay organised. They can track tasks, deadlines, and approvals throughout the proposal process.
(8) Finalising and Submitting the Proposal
We need to polish our work and follow the right procedures to get it in front of decision-makers. Ensuring compliance with the instructions and checking the quality of the proposal prior to its submission.
Proofreading and Editing
We must carefully review our proposal before sending it off. It's smart to ask a colleague to read it too. They might spot mistakes we've missed. We should check for typos, grammar issues, and clarity.
It's important to make sure all our numbers add up. We need to double-check any calculations or financial figures. We should also verify that we've answered all the client's questions.
Formatting matters as well. We want our proposal to look clean and professional. We should use consistent fonts and spacing throughout. Adding page numbers can be helpful for longer documents.
Submission Guidelines
We need to follow the client's instructions for submitting our proposal. They invest their time into ensuring they receive consistent proposals which can be competed like for like. Some may want a printed copy, while others prefer digital files. We should ask about their preference if it's not clear.
If we're sending it electronically, we should use a PDF format, unless it states otherwise. This keeps our layout intact across different devices. We must make sure the file size isn't too large to email. For more formal bids or government contracts they will often be highly prescriptive and include the specific font and size required.
If not via a tender portal, it's a good idea to send a short email or make a quick call to confirm receipt. This shows we're keen and professional. We should also keep a copy of our submitted proposal for our records.
Frequently Asked Questions
Business proposal writers: common questions about these professionals and their work.
What qualifications should I look for in a professional business proposal writer?
We recommend recruiting based on attitude and ability. Seeking writers with relevant industry experience is also helpful but strong writing skills is the key. A degree in business, marketing, or a related field is beneficial. Look for proposal writers who understand proposal formats and can tailor content to specific requests for proposals (RFPs).
How much does a typical business proposal writer charge for their services?
Rates vary based on experience and project complexity. Freelance writers may charge £400-£750 per day or a fixed fee per proposal. In-house writers typically earn annual salaries of £30,000-£60,000. At Thornton & Lowe, we directly employ a dedicated team of proposal writers to ensure we can offer a consistent service to our clients; an outsourced bid management consultancy.
For businesses looking for freelance bid writer or managers, take a look at BidTalentConnect.
What are the characteristics of an effective business proposal?
A good proposal is clear, concise, and tailored to the client's needs. It should have a compelling executive summary, detailed methodology, realistic timeline, and accurate pricing. Strong proposals also highlight the writer's unique qualifications and value proposition.
Can freelance business proposal writers provide the same quality of work as in-house professionals?
Yes, many freelancers deliver excellent work. They often have diverse experience across industries. The key is finding a writer who can quickly grasp your business and offerings. In-house writers may have deeper company knowledge but less variety in their portfolio. By working with the same freelance proposal writers their knowledge of your business will increase and they will also become more efficient.
For those who require a consistent freelance bid or proposal management team, speak to us today - hello@thorntonandlowe.com - this is the core business of Thornton & Lowe.
Or you may want to recruit a proposal writer or full bid team.
What is the typical process followed by business proposal writers in drafting a proposal?
The process usually involves:
- Analysing the RFP or client requirements
- Researching the client and industry
- Outlining key sections
- Writing content
- Adding visuals and formatting
- Reviewing and editing
- Getting internal approvals
- Submitting the final proposal
How can I evaluate the success rate of a business proposal writer's previous work?
Ask for references and examples of past proposals. Also, check if they've worked on similar projects in your industry. You should also request data on their win rate, if available. A good writer should be able to explain their approach and how they've helped clients succeed.
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