Q:
My business is up and running and doing pretty well. A prospective
customer told me I needed to submit a business proposal to them. Is that
the same as a business plan? If not, what's the difference?
A:
A business plan isn't the same as a business proposal. Both are used
for sales, but it's important to understand the differences. A business
plan is used to sell your business to investors. It outlines your
business, your management team, your market and how you intend to
deliver your product or service. On the other hand, you use a business
proposal to offer your product or services to a client. Proposals
address a specific need of a specific client. As with a business plan, a
good proposal demands careful attention
Before writing a proposal, do your homework. Who are you
writing for? What is the problem your customer is trying to solve? Do
they have any special needs or requirements in the timing or format of
your proposal? If your customer is the government, you will find they
have specific formats and time tables you must follow to be considered
as a vendor candidate. Many companies let you submit a free-form
proposal, but if they ask for a certain format, follow it. For example, a
company I do business with had asked five Web design firms to bid on a
project. They asked that the proposal follow a certain outline with a
development and deliverable timeline. Three firms submitted proposals
that didn't follow the outline and didn't even address the timeline
requirement. The company discarded those proposals. They thought that a
firm that couldn't meet the specs for a proposal wasn't likely to
produce a final product that met specifications.
Within the
proposal itself, you need to introduce your company, in similar fashion
to an executive summary, outlining who you are and what you do. But
rather than outlining your entire business, your main purpose is to
establish credibility. Let your prospect know a bit about what you've
done before and why it prepares you to fulfill this client's needs.
Also summarize the problem being solved. Use the client's own language and terminology, and make sure you understand how the client views the problem. Then discuss how your product or service solves it.
Pay
attention to logistics as well. If you're delivering a product, let the
client know how, where and when to expect fulfillment. If you're
delivering a service, address your timetable and the terms of your
service delivery. If your prospect has any special logistics needs,
address those.
A good proposal demonstrates that you understand
how your client thinks: how they think about their problems, special
needs they have and so on. The more your proposal meshes with the way
the client thinks about the problem, the easier it will be for the
client to see that your product or service meets their needs.
Credit to Stever Robbins.
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