What is A Business Proposal?
A business plan is written to manage your company and raise capital, a business proposal is an unsolicited or solicited bid for business. There are two types of business proposal that can help you gain more business to grow your company.
Vocabulary
1. Capital:
Main Entry: equity capital Function: noun : capital (as stock or surplus earnings) that is free of debt; especially : capital received for an interest in the ownership of a business
2. Bid:
transitive verb 3 a : OFFER -- (1) : to offer (a price) whether for payment or acceptance (2) : to make a bid of or in (a suit at cards)intransitive verb : to make a bid
3. Solicited:
transitive verb1 a : to make petition to : ENTREAT b : to approach with a request or plea
5. Proposal:
Function: noun1 : an act of putting forward or stating something for consideration 2 a : something proposed : SUGGESTION b : OFFER; specifically : an offer of marriage
Assignment
1. Use the five vocabulary items to write five sample sentences relating to a business proposal context.
2. Complete the survey questionnaire and complete the TCI Export Quiz. What parts are difficult to understand?
Writing Business Proposals (Lecture)
What is a business proposal?
It is a letter which demonstrates that your company not only has a product or service for sale but also that your sales ability includes knowledge of potential customers, partners, market trends, and future categories or segments.
There are two kinds of business proposals:
- Solicited proposals
- Unsolicited proposals
Solicited Business Proposal:
A solicited business proposal is when a corporation or government is looking for a product or service to fulfill a project or complete a task. They allow companies to bid for the project. An open bid is placed on the market with other companies competing for an interview spot. The winning candidate is offered the project.
Unsolicited Business Proposal:
At some point, your small business may want to do business with a larger company or forge a joint venture.
A well-written business proposal can win the hearts and minds of your target audience. That is why it is a lot like a marriage. One must win the heart of the marriage partner as one win’s the bid.
If you need to write a business proposal to win a bid, you will need to know the key winning elements of a successful proposal. Make sure your proposal stands out in the stack of competitor proposals by including the following 5 elements:
5 Key Elements of Winning Business Proposals
· Benefits: All winning business proposals, clearly outline for the company the benefits to be gained from doing business with you. If your small business can offer complete confidentiality and meet tight deadlines state it in your benefits section.
· Credibility: This is often the overlooked portion of a business proposal but all winning proposals glow with credibility. If you have worked with clients in the same field or have an award-winning business, then third-party endorsements will build credibility.
· Samples: A business proposal with samples and evidence of your ability to deliver is vital to gaining the winning bid. A small sample of your work can show your ability to do the job.
· Targeted: A winning business proposal is all about communication. Speak in a language spoken by your intended audience. If the proposal evaluators are from an engineering background or financial department use the appropriate jargon.
Ultimately, the best business proposal is none.
When your company is well-positioned and unique in the marketplace then it is only you who can meet the needs of the company requesting the bids.
In the end, you may not win all bids, but will win business that best matches your company to the prospective business. A win-win for all parties involved.
Opportunities and Pitfalls of Business Proposals
Be sure you know who you're dealing with. Always verify addresses and avoid doing business in countries that are known for fraud. If you can't identify a potential customer or the country of origin of an order, don't proceed with the deal.
Other characteristics of the potential customer's country are also important. How good is its communications infrastructure? How stable are its financial systems? What level of political risk does it represent? As in all export operations, due diligence is an essential precondition of success.
Market research is a key component of evaluating e-leads. The principles of market research are the same for e-business exporting as they are for traditional exporting.
Credit assessments are as important in e-business as anywhere else. Credit card fraud is on the rise, especially in certain parts of the world, so be careful when dealing with credit card purchases from these regions.
References
About.com (2006) “The Winning Elements of Business Proposals”, http://sbinformation.about.com/cs/bizlettersamples/a/proposal.htm
[Accessed: August 13, 2006
Export Source (2006), “Checking E-Leads” http://exportsource.ca/gol/exportsource/site.nsf/en/es02161.html
[Accessed: August 13, 2006]
Merriam-Webster Dictionary Online (2006) http://www.webster-dictionary.org [Accessed: August 13, 2006]
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