TOPIC 1 BUSINESS PROPOSAL

by:- Firza Jamri

Definition Elements of Business Proposal

by:- Firza Jamri

DEFINITION
Business proposals are a key step in the complex sales process. e.g; whenever a buyer considers more than price in a purchase. It is an offer letter which can be categorized as Persuasive document. A proposal includes a companys profile as well as its products and services offered.

by:- Firza Jamri

The aim of this offer letter is to:

Persuade the client to purchase the product or service or accept an offer made by the company and you can earn revenue out of the contract or agreement made. Convince a prospective client about the benefits of the companys product and services for a client. To demonstrate the creditability and authenticity of a company and its products and services to win a clients confidence.
by:- Firza Jamri

Unlike a business plan, which is written to run your company and raise capital, a business proposal is an unsolicited or solicited bid for business.

by:- Firza Jamri

A marketer should;
conduct an extensive research on the target customer understand the customers needs wants and requirements clearly define a business problem and provide a solution find the problem for the client and then offer an opportunity for finding a solution to his problems persuade the customer so that he can find solution to his dilemma by using your products and services
by:- Firza Jamri

Winning Proposal

by:- Firza Jamri

Solutions: After you have written a lead paragraph on the company's needs and problems, follow up with a solid presentation of how your business can provide solutions. The key here is to promise solutions you can deliver. Benefits: All winning business proposals, clearly outline for the company the benefits to be gained from doing business with you. If your small business can offer complete confidentiality and meet tight deadlines state it in your benefits section.
by:- Firza Jamri

Credibility: This is often the overlooked portion of a business proposal but all winning proposals glow with credibility. If you have worked with clients in the same field or have an award-winning business, then third-party endorsements will build credibility. Samples: A business proposal with samples and evidence of your ability to deliver is vital to gaining the winning bid. A small sample of your work can show your ability to do the job.

by:- Firza Jamri

Targeted: A winning business proposal is all about communication. Speak in a language spoken by your intended audience. If the proposal evaluators are from an engineering background or financial department use the appropriate jargon.

by:- Firza Jamri

Elements of Business Proposal

by:- Firza Jamri

ELEMENTS OF BUSINESS PROPOSAL

Business Description

should provide an overview of the business and its objectives.

your reader to get the reason why your business should exist.

written to outline intentions and motivations. your mission statement should at least answer three key questions;
1. What are the opportunities or needs that you exist to address? (the purpose of the venture) 2. What are you doing to address these needs? (the business of the venture) 3. What principles or beliefs guide your work? (the values of the venture)

by:- Firza Jamri

Example of Good Mission Statement McDonalds Mission Statement: McDonalds vision is to be the worlds best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile. Beside mission statement, the business description portion of a business proposal includes the business overview and products and services general description. Business overview will provide the reader with a summary of the current state of your venture while the readers of your business proposal will need a description of what your product or service is to provide context for what you will later say about it and your market.

by:- Firza Jamri

Market Analysis

To discuss the market and your approach to it.

In it you describe; 1. the markets characteristics 2. your target customers profile 3. the competition 4. how you plan to gain an advantage over them to create a successful venture.

by:- Firza Jamri

Marketing Plan

Should describe your company;

products offered price charged distribution system promotional efforts.

by:- Firza Jamri

Operating Plan It deals specifically with the internal organizational structure, operations, and equipment you will need to operate your venture.

by:- Firza Jamri

Financial Plan
Develop an estimate of your profit potential Operating plan for the financial management of the venture Describe the current financial status Present forecasts of future financial statements

by:- Firza Jamri

Executive Summary
Highliting; Your mission and goals, The products, The market and its potential, The marketing plan, The management team, Key elements of your operations, Funding requirements, and profit and cash forecasts, Return to the investor.
by:- Firza Jamri

PURPOSE OF BUSINESS PROPOSAL

by:- Firza Jamri

A business proposal has three primary functions:

1. To serve as an Action Plan 2. To serve as a Road Map 3. To serve as a Sales Tool

by:- Firza Jamri

ACTION PLAN

A business proposal or plan will help you to pull apart the pieces of starting a business and examine each piece by itself. So instead of one large problem, you have a sequence of smaller problems. And by solving the small problems, the large problem is automatically solved.

by:- Firza Jamri

ROAD MAP Keep track and moving in the direction you want to go Keep you focused Help others to understand your vision

by:- Firza Jamri

SALES TOOLS To convince Concessions

by:- Firza Jamri

DIVERSE PURPOSE OF PROPOSAL

to construct parking slots, buildings, bridges, highways to sell property, such as buildings, machines, airplanes to survey areas for possible water sources to plan and construct airport baggage conveyor systems to modernize the office procedures of a company to train international managers for work in foreign countries to purchase new equipments
by:- Firza Jamri

TYPES OF BUSINESS PROPOSAL

by:- Firza Jamri

Solicited Proposal Unsolicited Proposal

by:- Firza Jamri

Solicited Proposal

Refers to the one when the customer asks for a proposal Sent to customers who issue a Request for Proposal (RFP) Provides you with a description of what the customer wants

by:- Firza Jamri

UNSOLICITED PROPOSAL

Marketing brochures Sent to a customer who has not requested it Must be especially convincing since the customer has not anticipated, planned, or budgeted for the proposal Every aspect should contribute to persuading the reader

by:- Firza Jamri

EXAMPLE

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CHARACTERISTICS OF BUSINESS PROPOSAL

Demonstrate to appropriate decision makers that their needs would be met with Be more creative than other forms of professional writing Permit informality and personal approach in style to some extant Keep in view the customers convenience, financial gain and prestige Look neat and attractive

by:- Firza Jamri

Include summary, background, objective, description of the problem, methodology, and coat estimate Anticipate any possible reasons for rejection and provide suggestion for overcoming them. Follow meticulously the requirements of the solicitor Contain certain or all elements of structure according to the purpose, usefulness and requirements of the recipient language. Use plain, direct and unambiguous expressions
by:- Firza Jamri

The following rules are important especially if the business plan is to be used to raise funding.
1. Make it neat Appearance is critical. Use a laser or letter-quality printer on white paper. Sloppiness of any kind will reflect negatively on the way you do business. 2. Make it grammatically correct. Have someone read the draft and correct any spelling, typing or grammatical errors. 3. Make it honest Dont exaggerate or lie. Tell it exactly as it is, not as you would like to be. Financial sources are looking for integrity and honesty.

by:- Firza Jamri

4. Write in plain English Avoid technical jargon. Some 80% of all plans and proposal have too much jargon, which only someone in the field can understand. 5. Dont overemphasize your product or service Many business owners know a great deal about their products and services and talk or write for hours about them. But the product or service is just one part of a business. Sell the company, not the product. Concentrate on the benefits your customers get from using your product or service.

by:- Firza Jamri

6. Write your business plan from the lenders or investors point of view, not the entrepreneurs. 7. Make it complete A well-written business plain contains all the information necessary for the financing source to make a decision without talking to the entrepreneur. A typical business plan is between 25 to 40 pages long depending on the complexity of the business and amount being sought. It will take two to three weeks of actual work to put together a well-written business plan.
by:- Firza Jamri

ART OF PERSUADING IN BUSINESS PROPOSAL

by:- Firza Jamri