by Marsha Ford

Created on: January 06, 2009   Last Updated: January 08, 2009

Proposals are essential for building a business' clientele. Unfortunately, the idea of writing a proposal can be intimidating for some. But it needn't be. Proposal writing is a straightforward process once you understand its parts. This article will hopefully dispel any proposal phobias by detailing what to include and how to write them.

Types of Proposals

When a potential client seeks a specific product or service, they issue a Request for Proposals (RFP). Your response to the RFP is your proposal, and it is designed to demonstrate how you can meet the client's requirements. Basically, the RFP presents a problem and your proposal presents your solution.

There are two basic kinds of proposals: solicited (response to a specific request) and unsolicited. They can range from short, verbal offers to complex, multi-volume offerings totaling several hundred pages. They can be as varied as the businesses using them, but generally will fall into: verbal or presentation (followed by written confirmation); memorandums; e-mails; or formal offer packages. (Note: Another breakdown of proposal types is according to pricing/pay structure such as fixed-price or performance-based. This is not discussed here since it does not impact how proposals are written.)

What to Include in Your Proposal

The most important rule for writing your proposal is this: the proposal should conform to the needs and specifications of the client. Businesses that ignore this rarely win the contracts, instead wasting both time and resources. If an RFP asks for proposals not exceeding 10 pages, do not send more. If the RFP requests certain questions be addressed in the proposal, don't assume you can ignore those questions and still win the contract. Regardless of their type, every business proposal should include:

1. Your company's background information

2. A demonstrated understanding of the client's needs

3. How you will address the client's needs

4. How you have addressed similar problems for other clients

The amount of detail you include for each of these will depend on the type of proposal you are writing. An e-mail or memo proposal may have only a few sentences about your company's background, while in a longer proposal it could span pages. No matter the size, there is a formula you can use to write effective proposals addressing all of these elements.

How to Write a Proposal

While particular names can vary somewhat, the main sections of a proposal are pretty standard. In the usual order of presentation, the

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