Proposal

(noun)

A business proposal is a written offer from a seller to a prospective buyer. Business proposals are often a key step in the complex sales process—i.e., whenever a buyer considers more than price in a purchase.

Related Terms

Examples of Proposal in the following topics:

  • The Business Plan

    • Elements of a Business Plan: Cover sheet, Executive summary (statement of the business purpose), Table of contents, Body of the document, Business Description of business, Marketing Competition, Operating procedures, Personnel Business insurance, Financial data, Loan applications, Capital equipment and supply list, Balance sheet Break-even analysis, Profit and loss statements, Three-year summary, Detail by month -- first year, Detail by quarters -- second and third year, Assumptions upon which projections were based, Pro-forma cash flow, Supporting documents, Tax returns of principals (partners in the business) for last three years, Personal financial statements (all banks have these forms), Copy of franchise contract and all supporting documents provided by the franchisor (for franchise businesses), Copy of proposed lease or purchase agreement for building space, Copy of licenses and other legal documents, Copy of resumes of all principals, Copies of letters of intent from suppliers, etc.
    • If the company is seeking funding, the business plan gives potential investors an understanding of your proposed business and the money required.
    • Financial Projections: The financials provide information on the proposed spending and revenues of the company, typically for the first 3 to 5 years of operation.

  • Keeping the Audience in Mind

    • When writing a business proposal to upper management, your tone would likely be more professional and your word choice more formal than if you were writing an email proposing a team bonding activity.

  • Choosing the Right Method for the Message

    • Meeting - A personal, interactive exchange often succeeded by a written follow-up; Letter - Typically a formal method of communication suited for important messages such as proposals, inquiries, agreements, and recommendations; Video Conference - Allows people in different locations to hold interactive meetings and interviews in real time; Telephone Conference - Enables participants in different locations to share information; E-mail - Instantaneous medium for both formal notices and updates, as well as, informal exchanges; Report - Official documentation of the activities of any department or organization; Presentation - Usually comprises a formal proposal, update, recommendation, or report involving audiovisual material, slideshows, and statistics; Web-based Communication - A method typically suited for leaving contact information (such as address and phone number) or for sharing transaction details (such as order confirmation); Forum: Allows members to post information publicly and efficiently in a centralized location.
    • Letter - This is a formal method of communication typically suited for important messages such as proposals, inquiries, agreements, and recommendations.
    • Presentation - This method usually comprises a formal proposal, update, recommendation, or report involving audiovisual material, slideshows, and statistics.

  • Getting started

    • The first method uses a third party such as a business development centre or a chamber of commerce to bring different entities together and propose working in unison.

  • The rules of cooperative business networking

    • Check the backgrounds of proposed partners and consult with others before shaking hands or signing on a dotted line.

  • Getting started in remanufacturing

    • First and foremost a study should be taken of the market potential for the proposed remanufactured product and the company involved should be certain that it will not be competing against itself and its other products.

  • Identifying Your Heavy Hitters in Technology

    • In a spirit of continuous improvement, I offer three proposals to organizations which want to bridge information gaps and communicate better about technology:
    • A variation of this proposal would be to create a computer calendar which includes technological tips as part of its monthly graphics.
    • These proposals might help a business in several ways.

  • Putting it all together: frames, nudges, objectives and control

    • Before pitching any proposal, it is imperative that research is done beforehand to identify a specific problem the audience faces.
    • Once that information is known, a proposal can be tailored to show how it will help the audience as well as those who have the power to act.
    • Proposals presented this way are difficult to ignore.

  • Identifying market needs

    • A framework has been proposed to align customer's needs and wants with companies capabilities.
    • In the article aforementioned, Dorfman proposes a three-step process to develop a natural market orientation:
    • In this step, Dorfman proposes prioritizing features and benefits identified by clients, suppliers, and customers.

  • Open Communication of Decisions

    • All draft documents, all arguments for and against a proposal, all final decisions, and the decision making process itself are made public and remain publicly archived.