7 Types of Business Proposals
DEC 23, 2024 | LAST UPDATED ON DEC 23, 2024 BY ANGELICA NAIDU
A business proposal outlines your offer, from products and services to pricing and timelines. The document is your chance to make a lasting impression, show your expertise, and convince the recipient to say “yes” to working with you.
But here’s the thing: every client or partner will have their own needs, goals, and type of business.
And this is where understanding different types of proposals comes into play. When you understand which type to use and when, you won’t end up as just another option; you will stand out from the competition.
Continue reading to learn about the different types of business proposals in detail!
Solicited Proposals
Solicited proposals are a response to a request for proposal (RFP) or request for quotation (RFQ) that is submitted by anyone.
While an RFP is issued to inquire whether you can fulfill their specific project, an RFQ is issued when they want to purchase specific goods or services from you.
Both offer you the opportunity to show your expertise and align your solution directly with their needs.
When anyone submits an RFP or RFQ, they expect you to provide a detailed and personalized solution addressing their specific needs. That’s when you write a solicited proposal.
Everyone wants the best for their company, and it falls on you to prove why they should choose you.
For this, analyze their RFP or RFQ and research their background, industry, challenges, and competitors. Give details of how your solution will work for their request.
A short and crisp proposal containing compliance details and competitive advantages offers the best chance of winning the deal.
For example, a government agency issues an RFP for a cloud-based document system to a tech company that responds with a personalized proposal detailing its solution, timeline, and cost.
Unsolicited Proposals
Sometimes, the best opportunities aren’t handed to you; they are created. That’s where unsolicited proposals come into play. They are proactively pitched to someone without a prior request.
If there is an opportunity to provide value, introduce something new, or solve a problem, it is the perfect time for you to write an unsolicited proposal.
Through it, you show them where you see gaps, challenges, or opportunities. For this, conduct your research and align your pitch with it. Back your claims with data, case studies, and examples. Don’t forget to personalize your proposal and include a strong and clear call to action!
For example, an energy company proposes a cost-saving renewable energy plan for a retail store.
RFP/RFI Response Proposal
RFP (Request for proposal) and RFI (Request for information) response proposals are solicited proposals containing details for a specific project or service.
While an RFP response proposal is written when someone asks for details for a project or service, an RFI response proposal is written when someone asks for more information; it is usually given before an RFP is issued.
To write a winning RFP or RFI response, understand the request, requirements, and expectations. Research, understand, and outline the proposal to address all points in the RFP/RFI.
Use straightforward language to structure your answers. Build credibility by including relevant metrics, case studies, or certifications.
For example, a logistics company submits a proposal outlining its ability to meet delivery standards specified in the RFP.
Additional Reads:
Internal Proposals
Internal proposals are important for bringing change and growth within a company. They are formal documents used to suggest new projects, strategies, or investments to the decision-makers within a company.
If an employee, team, or department finds that there is a need for change or growth in the company, they write an internal proposal. As the team has access to internal data and insights, they have all the information required to approve or decline the suggested initiative.
To ensure the initiative is approved, research and gather information before drafting a comprehensive plan. Provide detailed objectives, benefits clearly, strategy, and budget for clarity and transparency. Finish with a strong call to action, urging the decision-maker to take action.
For example, a proposal for the implementation of a new project management software.
External Proposals
External proposals serve as formal documents written to create opportunities with clients, partners, or external stakeholders. They set the stage for collaboration, growth, and mutual success.
They are written to secure business deals, build partnerships, or request funding or resources for a project.
To write a great external proposal, start by understanding the recipient’s goals, needs, challenges, and expectations. Use these insights to write a proposal personalized to their priorities, showing that you did your homework. After you have laid the foundation with a detailed plan, highlight mutual benefits and conclude with a compelling call to action.
For example, a partnership proposal for a joint marketing campaign.
Renewal Proposals
Renewal proposals are documents related to renewing an existing agreement or contract of a business relationship, or even an initiative that is expected to last for one year. These proposals are important for maintaining ongoing partnerships in a way that the contract continues to align with both parties’ changing needs.
They are written when an existing contract or agreement is close to ending or when there is a need to update terms, conditions, or pricing.
To ensure the partnership is mutually beneficial, first review the existing contract. Draft the new proposal that reflects the changes or renewal terms to maintain the partnership. Be clear and concise with the terms and conditions.
Before or after drafting the new proposal, hold a meeting to discuss and ask questions or negotiate about renewal in detail.
This will give both parties an opportunity to hash out the details.
For example, an IT service provider sends a renewal proposal for annual maintenance for a corporate client.
Revised Budget Proposals
A revised budget proposal is necessary when there’s a need to adjust the budget for an ongoing or upcoming project. This plays an important role in ensuring the project remains on track despite the changes.
This type of proposal is written when the initial budget fails to fit with the project’s requirements due to changes in circumstances, project scope, cost variation, or unanticipated requirements.
To make a compelling revised budget proposal, understand the changes and review the original budget. Provide details of the changes and how they will impact the overall budget. Include details of updated costs with supporting evidence like data or any relevant documentation.
Furthermore, highlight the benefits of the revised budget to show how it complements the changes.
Wrap it up with clear details for the next steps and a compelling call to action.
Read more: How to write a business proposal letter
How to write a technical proposal
How Super Proposal Can Help
Trying to collaborate on a proposal or create a personalised proposal from scratch only to realise it’s way harder than it sounds? Getting everyone on the same page, personalising it, and making it look professional can be challenging and time-consuming. However, with Super Proposal, you can make it quickly and efficiently AND increase your close rates by 40%!
With us, you get
- Ready-to-use templates for all types of business proposals, from renewals to budget revisions.
- Professional designs that make your proposal look polished and visually appealing.
- Customizable features to easily adapt proposals to changing requirements.
- Analytics & insights to track proposal performance and improve success rates.
Get started with Super Proposal today and simplify your proposal process!
Conclusion
Now that you know the different types of business proposals, it’s time to get started with writing your own!
With Super Proposal, you can create personalized business proposals easily. Our ready-to-use customizable templates for every proposal type can increase your close rates by 40%!
Start creating impactful proposals today with Super Proposal!
Read more:
How to write a technical proposal?
How to write persuasive proposal title?
What are proposal colour team reviews?
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