Types of Business Proposals

Summary

This video explains the different types of business proposals, focusing on how they originate and where they are sent. It covers solicited proposals, which respond to requests for proposals (RFPs) where the company outlines specific needs and guidelines. Unsolicited proposals, on the other hand, are initiated by the proposer, who must convince the reader of the problem and the solution. The video also highlights internal proposals, directed at decision-makers within the same organization, and external proposals, which are sent to clients or external entities. The key takeaway is that a business proposal is meant to persuade an organization or individual to take action.

Takeaways

• 😀 Proposals are often the result of teamwork in business and technical writing.
• 😀 Proposals can be classified into solicited and unsolicited based on how they originate.
• 😀 Solicited proposals are those that are invited by a company with a specific problem to be solved.
• 😀 An RFP (Request for Proposal) outlines the specific work to be done and how to prepare the proposal.
• 😀 Following an RFP exactly is crucial, as proposals are evaluated based on how well they meet its terms.
• 😀 Unsolicited proposals are initiated by the writer, who must identify a problem, its significance, and propose a solution.
• 😀 Internal proposals are written to decision-makers within the same organization for approval of a plan.
• 😀 External proposals are sent to decision-makers outside the organization, like potential or previous clients.
• 😀 External proposals are generally more formal than internal proposals.
• 😀 A business proposal aims to persuade an organization or individual to take action based on the proposed solution.

Q & A

What are the main classifications of business proposals?

Business proposals are classified based on how they originate and where they are sent. They are categorized as solicited or unsolicited proposals, and internal or external proposals.

What distinguishes a solicited proposal from an unsolicited proposal?

A solicited proposal is invited by a company that has a specific problem to solve or task to be done, usually through a Request for Proposal (RFP). An unsolicited proposal, on the other hand, is initiated by the writer, who must identify and propose a solution to a problem the company may not yet recognize.

What is a Request for Proposal (RFP) and what role does it play in the proposal process?

A Request for Proposal (RFP) is a document created by a company that outlines the specific problem or task they need to address. It provides detailed instructions on how the company expects proposals to be prepared, including information on budget, personnel, and the work required. The RFP helps guide potential vendors on how to structure their proposals.

Why is it important to follow the directions of an RFP exactly?

Following the RFP instructions precisely is crucial because proposals are evaluated based on how well they meet the requirements outlined in the RFP. Failure to adhere to these guidelines could result in your proposal being rejected.

What is the primary challenge when writing an unsolicited proposal?

The primary challenge of an unsolicited proposal is that it must convince the reader that there is a problem, that it is significant enough to address, and that the writer's company is the best solution for solving it.

Who are the intended recipients of an internal proposal?

Internal proposals are written to decision-makers within the same organization, such as managers or executives, who have the authority to approve or reject the proposed plan.

How does an external proposal differ from an internal proposal?

External proposals are sent to decision-makers outside the organization, such as potential clients, whereas internal proposals are directed at individuals within the organization.

Why are external proposals generally more formal than internal proposals?

External proposals are typically more formal because they are sent to individuals or organizations outside of your company, often involving new business relationships or contracts, which requires a higher level of professionalism.

What is the purpose of a business proposal?

The purpose of a business proposal is to persuade an organization or individual to approve a plan or investment by presenting a solution to a problem, providing a detailed explanation of the approach, and demonstrating the benefits of accepting the proposal.

What are some common elements that should be included in a business proposal?

A business proposal typically includes background information, the qualifications of personnel, details about the equipment to be used, a budget, and specific instructions on where and how the proposal should be submitted, including the number of copies required.