How to Write a Formal Proposal
Study the Request for Proposal (RFP) carefully., Investigate the client’s needs., Use a formal title page., Introduce the problem that you are addressing., Put your proposal in context., Include definitions for key terms., Propose a detailed...
Step-by-Step Guide
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Step 1: Study the Request for Proposal (RFP) carefully.
Many businesses or governmental agencies will send out an RFP when they need goods or services.
For example, a company that is being sued might send RFPs to specific law firms, asking them to submit a business proposal.
Alternately, a government agency might send out an RFP when it needs to buy some product or materials.
The RFP will generally contain details that you must fully understand before drafting your business proposal.Be sure that you can provide the client’s needs as outlined in the RFP.
For example, you need to be able to meet the proposed budget, timing requirements, and any other specifications that the client identifies.
You may choose to submit a formal proposal without waiting for an RFP.
If you believe some business could use your services, you may reach out to them on your own and submit your own formal proposal. -
Step 2: Investigate the client’s needs.
Your proposal should address the client’s actual needs.
To write a strong proposal that will be useful to the client and that will help you earn the assignment, you should understand the client’s work and the need that you are addressing.
If possible, you should contact someone at the company to get information.
If the RFP is competitive, they may be limited in how much information they can provide.
Nevertheless, you should make the effort and try to get answers to some of the following questions:
Find out if prior attempts were made to address the problem.
If so, why did those attempts fail? Ask what criteria the client will use when evaluating a business proposal.
Find out whether the company has any special concerns that you should address.
Ask about the company’s operating policies.
Your proposal should be consistent with these policies. , Your proposal should contain a title page as a cover.
The title page should include the following information:
Your name Your company’s name The name of the person you are submitting the proposal to The date you submitted the proposal , The formal proposal that you are submitting should identify a problem and propose a solution.
Begin by identifying the client’s problem in simple and clear language.Explain why the client should see that your understanding of the current situation presents a problem.For example, a proposal to provide legal services might begin with the following introduction: “We are aware of pending litigation that has been threatened regarding your company’s acquisition of XYZ Corp.
We offer this proposal to provide the legal services that you need.”, Unless you are responding to an RFP, you might need to provide some background to explain the reason for your proposal.
For example, you may need to identify the following:
Prior attempts that have failed.
Whether someone asked you to write the business proposal.
How you became involved in the project or aware of the problem. , Any particular industry terminology or other terms of art that you use in the proposal should be clearly defined.
As much as possible, you should write in clear, simple language, but some technical terminology may be necessary.You may be submitting your proposal to, for example, someone in a purchasing department who understands industry jargon, but the final decision may come from someone in administration who is not familiar with industry terms.
You can draft the business proposal first and then go through to identify any terms that might be unclear to the reader.
Also define terms if you are using them in a unique way.
For example, the term “fiscal year” can be defined in many ways, depending on the business. , After you open by identifying the problem, tell the reader how you will solve that problem.
Provide as much detail as you can.Typically, the solution that you propose will be for the company to hire you or your company, or purchase your product.
For example, you might offer: “Acme Accounting specializes in Accounting and Payroll Services for growing small and mid-sized businesses.
We can provide complete service in the following areas: ledger maintenance, inventory account balancing, year-end tax statements and summaries, and standard pay period check origination.”, You are either suggesting something that the client has not considered yet, if you are presenting a proposal that has not been requested, or you are in competition with other companies, if you are responding to an RFP.
In either case, you must explain why the solution that you present in your proposal is the best option for the client.
You may wish to use bullet points to highlight key benefits.
Common benefits include a cost savings to the business, confidentiality, and professional expertise.
Provide evidence to justify your expected benefits.
For example, if you have studies or industry data that support your proposal, you should include them., Include a timeline for completing the tasks that are key to your proposal.At the proposal stage, it is understood that the details may change in the future, but it is important to give the reader some idea of how you will go about executing your proposal.
Highlight certain milestones.
For example, if you propose to remodel a store, you should include your beginning date and finishing date, so the client will know when the store can reopen.Include a warning that your timeline is an estimate and may depend on other factors that could be out of your control.
For example, a proposal for a construction job could be delayed by having to obtain the necessary permits from the local government or by relying on a subcontractor. , The client needs to know whether they can afford your services, so the budget could be the most important part of your proposal.
You also may be competing against other companies trying to get the same job.
You should include information about pricing.
Be conservative.
For example, you might want to add up the anticipated budget and then multiply by
1.5 to account for any unforeseen circumstances.Include a disclaimer stating that the numbers are only estimates.Some details that you may choose to include are: start-up costs or initial set-up labor costs supply costs ongoing monthly charges maintenance costs , If your proposal is to form the basis of a contractual agreement between you and the client, you should include key contract terms.
For example, you could include information such as the following:
How much is paid on signing: “50% payment upon signing.” Penalties or interests assessed for late payment: “A late fee of $50 will be assessed on any account past due.” Your cancellation policies: “The contract may be cancelled for any reason with 90 days written notice.
There are no pre-payment penalties.” , To be selected to provide the service or product in question, the client should have confidence that you can follow through and implement the business plan.Describe one or more similar projects that you have worked on and explain the success you achieved.
Be careful not to exceed any client confidentiality agreements you may have with other clients.
Nevertheless, you can describe your prior experience in general terms.
For example, you could write, “Successfully provided Accounting and Payroll Services to 20 mid-sized businesses (25-100 employees) for the past five years.” , You or your company may not be able to do everything to address the client’s needs.
In this situation, you should explain how you will get the necessary support from other sources.
Additionally, explain how you will guarantee that any other workers are competent to complete their assigned tasks.
If available, you should include resumes along with the business proposal., If your proposal makes reference to studies, written reports, data compilations or other sources, you should them at the end.
Format them using a well-known style, such as APA style.Including a list of sources allows the client to verify your information easily.
Encourage the client to contact you with questions.
Provide your website, in case the client would like to see more information about your business. -
Step 3: Use a formal title page.
-
Step 4: Introduce the problem that you are addressing.
-
Step 5: Put your proposal in context.
-
Step 6: Include definitions for key terms.
-
Step 7: Propose a detailed solution.
-
Step 8: Explain why your solution is the best.
-
Step 9: Present your proposed task schedule.
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Step 10: Provide a budget.
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Step 11: Include key contract terms.
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Step 12: Outline your relevant experience.
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Step 13: Identify others who will be working on the project.
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Step 14: Provide references.
Detailed Guide
Many businesses or governmental agencies will send out an RFP when they need goods or services.
For example, a company that is being sued might send RFPs to specific law firms, asking them to submit a business proposal.
Alternately, a government agency might send out an RFP when it needs to buy some product or materials.
The RFP will generally contain details that you must fully understand before drafting your business proposal.Be sure that you can provide the client’s needs as outlined in the RFP.
For example, you need to be able to meet the proposed budget, timing requirements, and any other specifications that the client identifies.
You may choose to submit a formal proposal without waiting for an RFP.
If you believe some business could use your services, you may reach out to them on your own and submit your own formal proposal.
Your proposal should address the client’s actual needs.
To write a strong proposal that will be useful to the client and that will help you earn the assignment, you should understand the client’s work and the need that you are addressing.
If possible, you should contact someone at the company to get information.
If the RFP is competitive, they may be limited in how much information they can provide.
Nevertheless, you should make the effort and try to get answers to some of the following questions:
Find out if prior attempts were made to address the problem.
If so, why did those attempts fail? Ask what criteria the client will use when evaluating a business proposal.
Find out whether the company has any special concerns that you should address.
Ask about the company’s operating policies.
Your proposal should be consistent with these policies. , Your proposal should contain a title page as a cover.
The title page should include the following information:
Your name Your company’s name The name of the person you are submitting the proposal to The date you submitted the proposal , The formal proposal that you are submitting should identify a problem and propose a solution.
Begin by identifying the client’s problem in simple and clear language.Explain why the client should see that your understanding of the current situation presents a problem.For example, a proposal to provide legal services might begin with the following introduction: “We are aware of pending litigation that has been threatened regarding your company’s acquisition of XYZ Corp.
We offer this proposal to provide the legal services that you need.”, Unless you are responding to an RFP, you might need to provide some background to explain the reason for your proposal.
For example, you may need to identify the following:
Prior attempts that have failed.
Whether someone asked you to write the business proposal.
How you became involved in the project or aware of the problem. , Any particular industry terminology or other terms of art that you use in the proposal should be clearly defined.
As much as possible, you should write in clear, simple language, but some technical terminology may be necessary.You may be submitting your proposal to, for example, someone in a purchasing department who understands industry jargon, but the final decision may come from someone in administration who is not familiar with industry terms.
You can draft the business proposal first and then go through to identify any terms that might be unclear to the reader.
Also define terms if you are using them in a unique way.
For example, the term “fiscal year” can be defined in many ways, depending on the business. , After you open by identifying the problem, tell the reader how you will solve that problem.
Provide as much detail as you can.Typically, the solution that you propose will be for the company to hire you or your company, or purchase your product.
For example, you might offer: “Acme Accounting specializes in Accounting and Payroll Services for growing small and mid-sized businesses.
We can provide complete service in the following areas: ledger maintenance, inventory account balancing, year-end tax statements and summaries, and standard pay period check origination.”, You are either suggesting something that the client has not considered yet, if you are presenting a proposal that has not been requested, or you are in competition with other companies, if you are responding to an RFP.
In either case, you must explain why the solution that you present in your proposal is the best option for the client.
You may wish to use bullet points to highlight key benefits.
Common benefits include a cost savings to the business, confidentiality, and professional expertise.
Provide evidence to justify your expected benefits.
For example, if you have studies or industry data that support your proposal, you should include them., Include a timeline for completing the tasks that are key to your proposal.At the proposal stage, it is understood that the details may change in the future, but it is important to give the reader some idea of how you will go about executing your proposal.
Highlight certain milestones.
For example, if you propose to remodel a store, you should include your beginning date and finishing date, so the client will know when the store can reopen.Include a warning that your timeline is an estimate and may depend on other factors that could be out of your control.
For example, a proposal for a construction job could be delayed by having to obtain the necessary permits from the local government or by relying on a subcontractor. , The client needs to know whether they can afford your services, so the budget could be the most important part of your proposal.
You also may be competing against other companies trying to get the same job.
You should include information about pricing.
Be conservative.
For example, you might want to add up the anticipated budget and then multiply by
1.5 to account for any unforeseen circumstances.Include a disclaimer stating that the numbers are only estimates.Some details that you may choose to include are: start-up costs or initial set-up labor costs supply costs ongoing monthly charges maintenance costs , If your proposal is to form the basis of a contractual agreement between you and the client, you should include key contract terms.
For example, you could include information such as the following:
How much is paid on signing: “50% payment upon signing.” Penalties or interests assessed for late payment: “A late fee of $50 will be assessed on any account past due.” Your cancellation policies: “The contract may be cancelled for any reason with 90 days written notice.
There are no pre-payment penalties.” , To be selected to provide the service or product in question, the client should have confidence that you can follow through and implement the business plan.Describe one or more similar projects that you have worked on and explain the success you achieved.
Be careful not to exceed any client confidentiality agreements you may have with other clients.
Nevertheless, you can describe your prior experience in general terms.
For example, you could write, “Successfully provided Accounting and Payroll Services to 20 mid-sized businesses (25-100 employees) for the past five years.” , You or your company may not be able to do everything to address the client’s needs.
In this situation, you should explain how you will get the necessary support from other sources.
Additionally, explain how you will guarantee that any other workers are competent to complete their assigned tasks.
If available, you should include resumes along with the business proposal., If your proposal makes reference to studies, written reports, data compilations or other sources, you should them at the end.
Format them using a well-known style, such as APA style.Including a list of sources allows the client to verify your information easily.
Encourage the client to contact you with questions.
Provide your website, in case the client would like to see more information about your business.
About the Author
Lauren Murphy
Enthusiastic about teaching pet care techniques through clear, step-by-step guides.
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