A business proposal is a written document that aims to stimulate business from a potential buyer. It differs from a business plan and can be solicited or unsolicited, with the former being more detailed and meeting specific requirements. An informal prompt proposal is a third type that is extended to only one vendor at a time.
A business proposal is a written proposal submitted by a supplier that is intended to stimulate business from a prospective buyer. It differs from a business plan, which is primarily constructed to obtain seed capital by detailing the organization and operational aspects of the business to demonstrate its profit potential. A business proposition is also unique because it contains much more than figures and statistics represented by pie charts and graphs. Indeed, the former involves proposal writing, which is designed to identify and target a specific market and robustly demonstrate how the bidder can provide customized solutions to the needs of buyers within that market.
Business proposals vary in scale and intended audience. For example, a small business may direct a small number of batch proposals to larger companies in hopes of establishing new lines of business. On the other hand, a company may draft a proposal in response to a call for bids for a specific project made public by a private company or government agency. These two scenarios represent the two basic types of proposals, which are solicited and unsolicited.
An unsolicited business proposal can be considered as marketing collateral, such as a brochure. They are largely broad spectrum in that they don’t address a particular company by name or attempt to close a sale. Instead, this type of informal proposition is created to introduce a product or service to potential customers through direct mail distribution, leaving the material behind on a “cold” sales call, or making printed information available at trade shows.
A solicited business proposal is quite different and much more detailed. As mentioned earlier, a company or government agency can post a Request for Proposals on a particular project, also known as a Request for Proposal (RFP) or a Call for Proposals (IFB). Since the project is usually offered to several candidates at once, the proposal submitted by the winning bidder typically meets the specific requirements of the project but at the lowest price.
There is however a third type of business proposal, which is an informal prompt proposal. While similar to a solicited proposal in terms of an invitation to tender, it is generally extended to only one vendor at a time. In fact, this opportunity often comes from a salesperson and prospect who have crossed paths at a convention or trade show. Another key difference between an informally solicited proposal and a solicited proposal is that there are no specific requirements that the vendor must meet in the written proposal. It is simply prompted by an expressed interest in the product or service the seller has to offer and an informal request for more information.
Protect your devices with Threat Protection by NordVPN
