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 proposal sections are: Cover Page, Executive Summary, Statement of Need, Project Description, Management Plan, Past Performance, and Pricing. When appropriate, proposals may also include Appendices.
Cover Page: Except for proposals delivered in the body of e-mails, include a Cover Page. On it include your company name and address; the client's name and address; proposal title; submission date; and if applicable, a footnote on the nondisclosure requirements of the proposal's content.
Executive Summary: Also called Introduction. While it is first to appear in the proposal, the Executive Summary should be the last section written. As its name implies, the Executive Summary presents a brief overview of the entire proposal (except pricing). Clients read the Executive Summary to get a quick sense of what you are offering. Think of the Executive Summary as your teaser, and provide just enough detail to encourage reading the rest of your proposal.
Statement of Need: Also called Statement of the Problem or Project Requirements. The Statement of Need includes your phrasing of the client's needs and requirements. Include relevant information you've gathered through research if it will help illustrate your understanding of the client. Demonstrating an understanding of the client's needs assures them you have carefully considered their problem and builds their confidence in your abilities to solve it.
Project Description: This section forms the heart of your proposal, and may be called Project Plan, Technical Solution, or Recommended Solution. Here you detail how you will satisfy the client's requirements. Be sure to address every requirement stated by the client, emphasizing how your solution will meet their needs. If you can indicate more than one option, do so. Explain any advantages or disadvantages of each option. Limit your options to two or three that would best serve the client. Too many options can overwhelm or give the impression you are unsure of the best approach.
Management Plan: In smaller proposals, the Management Plan may be included in the Project Description. This is the accountability section of your proposal, detailing who in your company will be responsible for major aspects of the project and the qualifications of those individuals. If the management team will consist of fewer than three people, include their resumes here. Otherwise, include resumes as an Appendix. If resumes will be in an Appendix, then in the Management Plan include brief, relevant highlights of individuals' expertise.
Past Performance: In short proposals, Past Performance can be included in the Management Plan as examples of your company's expertise. Past Performance is important for demonstrating you have handled similar projects successfully, and can make a greater impact on your winning the contract, even over price. Limit Past Performance to samples relevant to the client's project. Examples don't have to be exact matches to the client's situation, but they should be similar in scope and the solutions you are offering. In each example, include a brief description of that client's problem and what you did to solve it. Two to four examples are usually sufficient, but for larger, complex proposals you can include more.
Pricing: Also called Price Plan, Estimate, or Investment Summary. Itemize your pricing so the client can see how you came up with your figures. Tables work well here; just be sure the information can be clearly understood by any reader. Also include your terms of payment, how you will bill the client, and any assumptions you've used in determining prices. If some prices could vary (e.g., shipping costs), clearly state this and explain how you will account for it. Don't leave out any items that could affect what the client would have to pay. Not only can doing so leave a nasty impression that you understated costs, but it can also mean you don't get paid for items left out if the proposal is incorporated into a contract.
Appendices: Only have Appendices if they are required by the client or you have pertinent information that does not smoothly fit into the body of your proposal. Appendices can include: terms of service, product brochures, resumes, or spreadsheets. Use a separate Appendix for each type of content.
Points to Keep in Mind
As you go through the process of preparing and writing your proposal, keep the following points in mind.
1. Research Make an effort to research the potential client. This provides you with background information to include in your proposal; can help to frame an offer that best meets the client's needs; and may even affect whether or not you opt to submit a proposal. You may decide not to submit a proposal if research suggests the client has a history of not paying or may not be around long enough to pay you.
2. Know your limits Before you invest the time to prepare your proposal, be certain you can fully satisfy the client's requirements. Being awarded a contract you can't fulfill is far worse than not submitting a proposal at all. Poor performance compromises your company's integrity, can leave you open to legal action, and can negatively impact your ability to obtain future contracts.
3. If you don't know, ask If you have questions about what the client is seeking or the type of proposal they want, ask them. Most clients are not put off by such questions. Instead, asking ahead of time displays your commitment to meeting the client's needs and your willingness to accommodate their preferences.
4. Make a plan and stick to it Create an outline of all the information you will need to include in the proposal. Then, create a completion schedule, with deadlines, and meet it. Don't wait until the last day to find you don't have everything you need.
5. Put the client first As you write your proposal, think and write in terms of the client's needs. The proposal is about the client, not you, so any information that is not relevant to the client should be left out of the proposal.
There can be a lot to know about proposals, but the information here should serve as a solid start. Follow the guidelines presented and you are well on your way to impressing potential clients and winning their trust and business.