Knowing how to write a business proposal is key to closing more lucrative deals and winning new clients.
But few people know how to write a detailed business proposal when they start a business. Compelling proposals can also be time-consuming to write because of the level of customization they require.
Ahead, get a beginner-friendly step-by-step tutorial on how to write a persuasive business proposal for your small business that leaves a lasting impression.
Table of contents
- What is a business proposal?
- Business proposal vs. business plan vs. business estimate
- Types of business proposals
- Purpose of business proposals
- Common terms used in business proposals
- Business proposal examples across industries
- Business proposal example and template
- How to write a business proposal in 8 steps
- Business proposal design best practices
- How to follow up on your business proposal
- How to write a business proposal FAQ
What is a business proposal?
A business proposal is a formal document sent to prospective partners, clients, or investors in the hopes of working with them on a specific project, in partnership, or through investment.
Your business proposal should both address the needs of prospective partners and show them why your company is the best choice to fill those needs. For companies focused on business-to-business (B2B) services, small businesses, and those seeking investment, knowing how to write an effective business proposal is crucial for growth.
Business proposal vs. business plan vs. business estimate
These three terms can be easy to confuse when you’re new to starting a business. You’ll need to work on all three documents, so it’s important to learn the differences between an effective business proposal, business plan, and business estimate before you begin.
| Document | Purpose | When to use | Target audience | Core elements |
|---|---|---|---|---|
| Business proposal | Showcase what sets you apart and persuade clients to choose you. | To pitch new business or partnerships. | Potential clients, buyers, partners, investors, or grant reviewers. | Cover page, letter, executive summary, solution, pricing, about us. |
| Business plan | Map out your goals, finances, and strategy for growth. | Internally for a road map or for investor presentations. | Internal teams, investors, or lenders. | Summary, company overview, market data, marketing/sales plan, structure, finances, funding, SWOT, appendix. |
| Business estimate | Break down anticipated project costs. | Early client discussions before signing. | Prospective clients. | Material and labor costs, pricing breakdown, key value points. |
Business proposal
A business proposal is a document that outlines the unique selling points for your small business and shares what makes you the best fit to work with prospective clients.
- When to use it: Use a business proposal to win new business and make a compelling case for why a potential customer should work with you.
- Target audience: Any potential buyer, client, partner, investor, or grant manager.
- Key elements: Essential elements of a business proposal include a cover page, cover letter, executive summary, proposed solution, pricing information, and an About Us page.
Business plan
A business plan is a detailed breakdown of your business, including what you do, financial projections, valuation, your business goals (both short and long term), and the strategies you plan to use to achieve them. There are two types of business plans: traditional and lean business plans.
- When to use it: Create a business plan for your own road map or to share with potential investors or lenders.
- Target audience: A strategic business plan is for your internal employees and anyone you plan to ask for investment.
- Key elements: Components of a business plan include an executive summary, company description, market analysis, marketing plan, sales plan, competitive analysis, a breakdown of your company’s organizational structure, the products and services you sell, your operational plan, business model, financial plan, funding sources, SWOT analysis, business documentation, professional partnerships, and an appendix. Take a look at this business plan template and these business plan examples for more in-depth guidance.
Business estimate
A business estimate outlines the anticipated costs to complete a project.
- When to use it: Use a business estimate during initial conversations with a client to see if they want to proceed. An estimate like this provides a clear understanding of the costs involved.
- Target audience: Prospects whose business you are trying to win.
- Key elements: Detailed pricing information, including the cost of materials and labor, and key differentiators that you want to highlight.
Types of business proposals
There are different types of business proposals, depending on the service and the nature of the project, but they typically fall into three distinct categories:
Formally solicited proposals
Formally solicited business proposals are used when a client you’re hoping to work with asks for a proposal, usually through a publicly posted request for proposal (RFP). In response to this request, your business writes a proposed solution based on the specific needs and requirements of the potential client.
Informally solicited business proposals
Informally solicited business proposals are typically written following conversations between a prospective client and a vendor. Usually in this case, the customer is not asking for competing proposals, and there tend to be few formal requirements.
Unsolicited business proposals
These proposals usually are more generic in nature and serve more as marketing materials. Unsolicited proposals are common at trade shows or other public venues where a business is shopping around for prospective clients, partners, or investors. While they can generate business in the proper context, unsolicited business proposals are sometimes seen as spammy or, worse, unprofessional.
Purpose of business proposals
In 2024, business proposals saw a win rate of 45%. A well-crafted business proposal grabs a prospect’s attention, shares relevant information about your company, and identifies how you can solve key pain points they have.
There are four main use cases for business proposals:
To bid on a project
If a company is looking for the right partner for an upcoming project, they’ll usually put out a request for proposal (RFP). In this case, your business proposal is your bid at the project, and it will outline why you’re the best fit for the job.
To win sales
Use a business proposal to win new clients. Michelle Razavi, co-founder of protein brownie shop Elavi, advises you to get strategic about how you can solve clients’ pain points.
“Don’t make your pitch asking the person to help you out, make it about what value you can provide them,” says Michelle in an interview with Shopify Masters.
Michelle’s pitch garnered a three-hour response time from a Whole Foods exec and led to retail placement in stores like Costco. The key to that success was a compelling pitch framework Michelle established called the “three Cs,” which you can use in your own business proposal:
| 💡 The three Cs pitch framework | ||
|---|---|---|
| Component | Description | Example (from Elavi) |
| Concise | What makes you different? | “We’re the first-to-market protein brownie that’s vegan, gluten-free, and has no added sugars—the brownies are sweetened with dates at a time when every protein snack uses sugar alcohols or stevia or random things you can’t pronounce.” |
| Compelling | What value can you provide? | “We’re women creating protein products specifically for women—who make 80% of household purchasing decisions. I made it clear why our authority as fitness trainers for more than a decade mattered. That legitimacy stands out because most snack brands in our category don’t have that.” |
| Clear call to action | What comes next? | “‘Can I send you samples? Let me know the best address.’ Don’t leave them wondering: Give them something concrete to respond to.” |
To establish partnerships
Establish partnerships with other businesses by proposing how you could work together and collaborate in a way that’s mutually beneficial.
To apply for grants
You can also use a business proposal to secure funding for a research project, submit a grant proposal, or apply for financial support for a non-profit business.
Common terms used in business proposals
Good-to-know terms that will likely come up in the proposal writing process include:
- Request for proposal (RFP). A request for proposal, usually referred to as an RFP, is a document a company sends out asking for project bids. As a small business, you’ll likely be on the receiving end of an RFP and need to put together a well-structured business proposal to win the project.
- Request for information (RFI). A request for information, usually referred to as an RFI, asks businesses to provide details about the products or services they offer.
- Request for quote (RFQ). An RFQ is a formal document that asks businesses forcomplete pricing information for a specific product or service.
- Value proposition. A unique value proposition outlines what makes your small business stand out among the competition.
- Executive summary. An executive summary provides essential background information about your business, including a high-level overview.
- Project description. A project description details the elements of a project, including things like deliverables, due dates, scope of work, and how you plan to measure results.
- Project proposal, research proposal, and sales proposal. A project proposal details elements of a new line of work. A research proposal lays out an experiment or line of study. A sales proposal aims to win business.
- Call to action (CTA). A call to action (CTA) establishes clear next steps by asking for a specific behavior from the recipient.
Business proposal examples across industries
Below, discover how you can use business proposals across different industries, from ecommerce to sustainability.
- Ecommerc1. An ecommerce store might craft a business proposal to get its products on the shelves in a retail shop, included on a curated list, or to secure funding.
- Software and technology. A SaaS (software-as-a-service) company might use a business proposal to highlight why its product is a better fit over competitors.
- Consulting. Independent consultants (like freelance writers, photographers, or videographers) use business proposals to highlight their service offerings and what makes them unique.
- Manufacturers and suppliers. Manufacturers and suppliers might use a business proposal to secure a partnership with a buyer that outlines the products they’d be making and unit costs.
- Event planning. Event planners use business proposals to provide a clear vision for the event they’re throwing. Think wedding planners, corporate event planners, and general event planners.
- Sustainability. An environmental company’s business proposal might show the path to LEED certification, projected energy savings, or the implementation of sustainable systems like greywater.
Business proposal example and template
Take a look at this example from hypothetical landscaping company Bee’s Knees, created using Shopify’s free business proposal template.
Business proposal example
This title page is simple and to the point, emphasizing the client’s name and the project.
The cover letter briefly introduces the proposal and provides a call to action without being overly salesy or overwhelming the reader. It uses concise language and shares essential details about the company.
Next, Bee’s Knees executive summary provides a brief overview of the client’s problem and the solution Bee’s Knees can provide.
The following pages contain more detail, including a proposed project timeline. Bullet points and tables are a nice way to break up this text-heavy section.
Bee’s Knees offers three different packages and provides a brief description of each. This is helpful in the early stages of a proposal because it gives your clients flexibility. Should Bee’s Knees’ client decide to move forward, they would likely be presented with a more detailed (and legally binding) description of the costs for each service.
The About Us page explains Bee’s Knees’ qualifications for this project (20 years’ combined experience) and includes the business’s mission and vision, values, and origin story. Consider adding founder quotes in this section, as Bee’s Knees does.
This is an example of an earlier-stage business proposal that is not legally binding. A legally binding proposal would include more detailed terms and space for the client to sign. If your proposal is not legally binding, let your client know that prices are subject to change.
Free downloadable business proposal template
Our free business proposal template is easy to customize and provides writing prompts for each section. It’s a great option if you want a template that looks professional and provides guidance throughout the proposal-writing process.
How to write a business proposal in 8 steps
- Create your title page
- Write a cover letter
- Write an executive summary
- Outline your customer’s problem and your company’s solution
- Create a pricing table
- Share your brand story
- Summarize your qualifications
- Lay out the terms of the agreement
While business proposals can take different forms, most share a few key components. Consider using Shopify’s free business proposal template (in the example above) to stay on track.
1. Create your title page
The title page acts as the cover for your entire proposal. Your title page needs to convey basic information about your business and the proposal. This includes the title of the proposal, your business’s name and contact information, and the date you’re submitting the proposal.
Craft a title page that’s professional, grabs the reader’s attention, and draws them in. The title page sets the tone of your proposal. Like you would for any advertisement, convey your brand’s style and character. Include your company logo, too.
Avoid complicated graphics that distract from the central message of the proposal.
2. Write a cover letter
Your cover letter serves as an introduction to you and your business. It should be a concise overview that’s no more than one page. In a few paragraphs, briefly describe your company’s background, mission statement, and unique selling proposition.
A compelling cover letter is friendly and polite. Include your contact information and encourage your readers to reach out to you with any questions.
Visual graphics are encouraged, especially if they impart your brand’s accomplishments or mission.
3. Write an executive summary
The executive summary provides details about why you’re sending the proposal and why you’re the client’s best option for solving their problem or filling their needs.
Your executive summary acts similarly to a value proposition that shows the ways your company is unique and how your prospective buyer, client, partner, or investor will benefit from working with you.
Executive summaries identify your prospective client’s needs, explain what your company does, and outline your proposed solutions to the client’s problems. There’s no need to cover logistics or strategies yet.
A compelling executive summary is finely tuned to the client’s needs. Even if you’re passing the proposal document on to many potential clients, it should read as though it was written for one client specifically. If different potential customers have different problems, make adjustments to your summary for each of them.
Your executive summary should quickly show readers how your business can help them and encourage them to keep reading. Keep it clear, focused, and just long enough (two to four pages) to stand on its own while leaving room for questions. The details can come later.
4. Outline your customer’s problem and your company’s solution
Many writers of business proposals think of their proposal pages in terms of problems and solutions. With each proposal, start by outlining the potential issues the client might face. In doing this, you show your potential clients that you have a deep understanding of their needs.
Problem and solution pages require a lot of research. Ensure you conduct a thorough competitor analysis, do industry benchmarking, and even interview your client to provide the best proposal possible.
How you choose to break down the client’s problems and solutions is up to you. Some proposal document writers will list a number of problem statements alongside detailed deliverables. Other proposals might focus on one or two larger problems and provide a list of solutions to them.
Timetables are also important here. Potential clients will want to know how quickly you’ll be able to enact your solution and when they can expect to see results. Timetables answer these questions and are a handy visual tool to break up text.
It’s a good idea to break up your proposal content into sections that identify each problem and propose a solution.
Here are some key points to address for each section:
- The problem. Use data to back up your claims, and be specific about where your client may be falling short of their goals.
- Implementation. Explain in detail what changes you plan on making, how long it will take to make these changes, and the purpose of making these changes.
- Goals. Explain how you will evaluate the success of your solution and when your client can expect to see results from the changes you’ve implemented.
- Benefits. Draw upon the assessment of the problem and explain the nature of the impact these changes will make.
Your proposal pages need to cover all of the necessary details of the plans you’ll implement. It’s best to break down the text into bite-sized chunks so it’s easier to read. Avoid decorative graphics, and opt instead for practical visual tools like charts and graphs to illustrate key points.
5. Create a pricing table
Next, create a pricing table. This will include all of your products and services paired with their pricing information and payment schedules.
How you structure your pricing strategy depends on the type of service or product you’re offering, but it’s best to provide prospective clients with options. Otherwise, providing only a single flat fee makes your proposal a yes or no question, which is easy to reject.
Adding pricing options provides clients with a more negotiable starting point, opening up the
conversation about their particular needs, rather than acting as an end point.
Transparency is crucial in this section. Make sure it’s easy for your clients to understand what they’re paying for and what options they have for customizing your service. Nobody likes hidden fees or fine-print stipulations. Include all the details of your pricing options in a way that’s clear and concise.
6. Share your brand story
Potential clients don’t just want to know your strategy—they want to know who you are. Craft a compelling narrative that will help readers form a connection to your business.
Some elements from brand storytelling you may want to include are:
- Setting. Set the scene: Introduce the story’s protagonist(s), yourself, and your co-founders, and describe how you came together to form your business.
- Conflict. What problem inspired you to start your business? Describe the issue your business identified and set out to solve.
- Plot. How did you and your team set out to find the solution to your problem? What challenges did you face and how did you overcome them?
- Resolution. What was your solution? How has it changed your industry? What milestones have you hit and how did your business set out to solve the problem?
- Characters. Introduce your team. Offer brief bios of your team members and introduce your potential partners to the people they’ll be working with on your project.
- Denouement. What comes next? Describe what you see in your company’s future. Talk about how you intend to continue pursuing your goals. Make sure to set yourself up for a good sequel.
7. Summarize your qualifications
In your cover letter, you touched on what makes your company uniquely qualified to solve your customers’ problems. In the qualifications summary, you’ll go into detail about why your business is best qualified to help potential customers achieve their goals.
The best qualifications summaries rely on social proof to make their case. Include case studies of previous clients, customer testimonials, praise on social media, endorsements from trusted experts in your field, and anything else that might showcase the value you provide your clients.
8. Lay out the terms of the agreement
At the end of your marketing proposal, outline the terms and conditions of your proposal for the client. Some proposals can be legally binding, so work with a legal expert to craft this section.
Not all business proposals include a contract, so if your proposal is meant to draw your client into further negotiations, you might just include a simple call to action that provides instructions on following up with you for further discussion.
If you do include a legally binding contract, make sure to provide clients with a space for signing the agreement, or indicating their preferred method of moving forward.
Business proposal design best practices
The format and design you choose sets the tone for how your business proposal will be received.
Here are a couple of best-in-class design tips for crafting a winning pitch:
Formatting and visual hierarchy
Guide potential clients through your business proposal with visually appealing formatting that uses a clear visual hierarchy. That means using elements like images, font sizes, and charts that lead the eye to key details in the order that you intend.
Optimize for eye-catching on-brand design and scanability, and keep essential info front and center.
Choosing fonts and colors
The fonts and colors you choose for your business proposal should follow those set out in your brand guidelines.
For example, if Omsom were to translate their branding design to a business proposal, they would want to include the same funky fonts and bright color scheme they use on their website and product packaging.
Making proposals mobile-friendly
If you send the proposal electronically, mobile-friendly design is a must. In order to ensure that your proposal design translates well across mobile, test it on small screens before submitting it.
How to follow up on your business proposal
- Give the prospective client time
- Grab their attention with a good subject line
- Be brief
- Avoid high-pressure, salesy language
- Be friendly, approachable, and authentic
- Know when to quit
Waiting to hear back from clients during the sales process can be nerve-wracking, but it’s important to remain patient. Give potential decision-makers time—remember that they still need to tend to the day-to-day functions of their own business.
If you haven’t heard back and want to give them a little nudge, here are some tips for following up on your proposal:
Give the prospective client time
Wait at least a week before sending a follow-up. If the client has confirmed receipt of your proposal, give them a week from the date of confirmation. Keep in mind that they may want to discuss your proposal with their team before reaching back out to you.
Grab their attention with a good subject line
As with other types of email marketing, a compelling subject line will increase the likelihood that prospective clients will open your email.
Be brief
No need to go into finer details here—let your proposal do the talking. Use your follow-up to emphasize that you’re available for any questions, and make it easy for them to reach back out to you.
Avoid high-pressure, salesy language
Your goal here is securing a partner, not a customer. Hacky advertising cliches like “Don’t miss out on this exciting opportunity!” may come off as alienating to potential clients.
Be friendly, approachable, and authentic
Your follow-up is an opportunity to preview what it will be like working with you. Be polite, but friendly—as though you’re reaching out to your favorite work colleague.
Know when to quit
It’s easy to overlook one or two emails, but much harder to overlook three or four. If your client hasn’t responded to three follow-ups, it’s time to move on.
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How to write a business proposal FAQ
How long should a business proposal be?
A business proposal, ideally, should be fewer than 10 pages, but its length is dependent largely on the type of proposal you’re writing and how far your services stretch. Things like your cover letter, summary, and pricing page should be kept short—no more than two pages for each section. The majority of your proposal should be your proposal pages, which go into detail about each aspect of your proposal.
What are the different parts of a business proposal?
A basic business proposal consists of a title page, tables of contents, cover letter, executive summary, proposal pages, pricing page, additional info about your business, and the agreement you’re proposing.
What is the basic format for a proposal?
A basic business proposal includes all of the elements listed above. Different industries may include unique features (for example, an app developer may include interactive elements to illustrate how their product works), but these aspects are considered standard features to business proposals.
How do you write a business proposal?
Start by choosing from among the many free business proposal templates, and consider what makes your business different from the competition. Why are you in the best position to assist potential clients with their needs? Be specific about what you can help your potential clients with, and make it easy for them to find out how to get in contact with you if they have questions.
How do you write a start-up business proposal?
Writing a business proposal for a small business includes:
- Creating a strong visual design
- Crafting a cover page
- Writing a cover letter
- Providing an executive summary
- Outlining your customer’s problem and your company’s solution
- Creating a pricing table
- Sharing your brand story and what makes you unique
- Summarizing your qualifications
- Laying out the terms of the agreement
What makes a business proposal successful?
A winning proposal understands market demand, leverages competitive intelligence, outlines customer retention strategies, and shares what makes your business unique. Successful business proposals are visually appealing, leave a lasting impression, and are clear, succinct, and easy to understand.
