What Is a Business Proposal?
A business proposal is a document that offers a specific solution to a prospective client's problem. It explains:
- What you'll do
- How you'll do it
- What it costs
- Why you're the right choice
Proposals are sales documents, not just price quotes. Their job is to convince someone to say yes.
Types of Business Proposals
The client requested it—they sent an RFP, asked for a quote, or had a discovery call with you.
You're proactively pitching—cold outreach, following up after networking, or identifying an opportunity.
Solicited proposals close at 2-3x the rate of unsolicited ones. Always try to get a conversation before sending a proposal.
The Winning Proposal Structure
1. Title Page
Keep it simple:
- Proposal title or "Proposal for [Client Name]"
- Your company name/logo
- Date
- Client's company name
2. Executive Summary
This is the most important section. Many decision-makers read ONLY this part.
Include:
- The client's core challenge (1 sentence)
- Your solution (1-2 sentences)
- Expected outcome (1 sentence)
- Investment and timeline (1 sentence)
"Acme Corp's website currently converts 1.2% of visitors—half the industry average. This proposal outlines a 6-week conversion optimization project targeting 3.0% conversion, which would generate an additional $180K in annual revenue. Investment: $15,000."
3. Problem Statement
Demonstrate that you understand their situation better than they do.
- Reference specific pain points from your discovery call
- Quantify the cost of the problem
- Show the consequences of not acting
- Be generic ("Many businesses struggle with...")
- Assume you know problems they didn't mention
- Be negative or critical of their past decisions
4. Proposed Solution
Explain what you'll actually do. Be specific.
Structure each deliverable:
- What it is
- Why it matters
- What they'll receive
"We'll improve your marketing."
"We'll audit your current campaigns, identify your top 3 performing channels, and reallocate budget to maximize ROI. You'll receive a detailed analysis report plus a 90-day campaign calendar."
5. Methodology/Approach
Explain HOW you work. This builds confidence.
- Name your process (this signals proprietary expertise)
- Break it into phases
- Show you've thought it through
6. Timeline
People need to know when they'll see results.
| Phase | Duration | Key Milestone |
|---|---|---|
| Discovery | Week 1-2 | Kickoff complete |
| Execution | Week 3-6 | First deliverables |
| Review | Week 7-8 | Final delivery |
7. Investment (Pricing)
Call it "Investment," not "Cost" or "Pricing." Words matter.
Pricing presentation options:
Simple, clear. Best for straightforward projects.
Good/Better/Best options. Most clients pick the middle.
Shows value breakdown. Good for larger projects.
Always include:
- Total price (prominently displayed)
- Payment terms
- What's included
- What's not included (prevents scope creep)
8. Social Proof
Why should they trust you?
Include:
- Relevant case studies (similar industry or problem)
- Testimonials (real names are more credible)
- Logos of past clients
- Relevant metrics ("helped 50+ companies increase revenue by average of 35%")
9. About Us (Brief)
Keep this SHORT. One paragraph max.
Focus on:
- Relevant experience
- Team qualifications
- What makes you different
10. Next Steps
Don't leave them wondering what to do.
- Sign this proposal
- Submit deposit payment
- We'll schedule kickoff within 48 hours
11. Terms and Acceptance
- Proposal validity period (14-30 days)
- Signature line
- Date line
The Psychology of Winning Proposals
If showing multiple options, put the premium option first. This anchors expectations and makes other options feel like a deal.
- "Proposal valid until [date]"
- "Project slots available starting [date]"
- "Pricing reflects current availability"
Address objections before they ask:
- "Includes 2 rounds of revisions"
- "30-day satisfaction guarantee"
- "Payment plans available"
The harder it is to say yes, the fewer yeses you'll get.
- Clear pricing (no hidden fees)
- Simple signature process
- Multiple payment options
- Obvious next steps
Reference specific things from your discovery call. This shows you're paying attention and builds trust.
Proposal Mistakes That Kill Deals
Every day you wait, close rates drop. Send within 24-48 hours of your discovery call.
Long proposals don't win more often. They just take longer to read (and often don't get read at all). 2-5 pages is ideal for most projects.
"We'll redesign your website" means different things to different people. Define exactly what's included and—importantly—what's not.
"Trust me, I'm good" doesn't work. Include at least one testimonial, case study, or relevant credential.
Clients flip to find the price anyway. Put it where it's easy to find with clear context about what they're getting.
Proposals without deadlines sit in inboxes forever. 14-30 days is standard.
Follow up. Systematically. Proposals that include follow-up close 2x more often.
How to Price Your Proposal
Your costs + profit margin = price
Problem: Commoditizes your work and caps your earnings.
What competitors charge for similar work.
Problem: Assumes competitors priced correctly. Race to bottom.
What is the outcome worth to the client?
Formula: Expected client value × 10-20% = your price
Example: If your work will generate $100K in revenue for the client, charging $15K is a bargain (and more profitable than hourly billing).
Follow-Up Strategy
Sending the proposal is half the battle. Here's the winning follow-up sequence:
"Hi [Name], I just sent over the proposal. Let me know if you have any questions!"
"Hi [Name], wanted to make sure the proposal came through. Anything I can clarify?"
"Hi [Name], thought this article might be relevant to what we discussed: [link]. Still happy to chat about the proposal."
"Hi [Name], checking in on the proposal. What questions can I answer to help you decide?"
"Hi [Name], heads up that the proposal pricing is valid until [date]. Let me know if you'd like to move forward."
"Hi [Name], I haven't heard back so I'll assume the timing isn't right. I'll close out this proposal but feel free to reach out if things change!"
Tools for Better Proposals
- Google Docs
- Canva
- Word/PDF
- OpenProposal - proposals + e-signatures + payments
- Proposify
- PandaDoc
- Better Proposals
- Track when proposals are opened
- See which sections get read
- Collect signatures digitally
- Accept payment immediately
- Automate follow-ups
The ROI on proposal software is usually 10x+ because of improved close rates and faster turnaround.
Proposal Checklist
- ☐Client name spelled correctly
- ☐Problem statement references their specific situation
- ☐Scope is specific and unambiguous
- ☐Pricing is clear and easy to find
- ☐Timeline is realistic
- ☐Social proof is included
- ☐Next steps are explicit
- ☐Signature line is included
- ☐Expiration date is set
- ☐You've proofread everything
Compare
2-5 pages for most projects. Enterprise deals may need more, but brevity usually wins.
Yes—2-3 tiers increase close rates. Most clients pick the middle option.
Hold price, reduce scope. "I can't do $5K, but here's what I can do for $5K..."
Within 24-48 hours of your discovery call. Speed signals professionalism.