Every great deal starts with a strong first impression. For many businesses, that first impression is made through a proposal. A business proposal gives you the chance to tell your story, outline your solution, and show potential clients why you’re the right choice. Mastering writing a business proposal can open doors to new opportunities, bigger partnerships, and long-term growth.
Let’s explore what a business proposal is, why it matters, and how to prepare a business proposal that’ll make you stand out.
What is a business proposal?
A business proposal is a formal document that a business creates to present a potential client with a solution, service, or product offering. Think of it as a written plan that explains what you can deliver, how you’ll do it, and why you’re the right choice.
The purpose of a business proposal is to show potential clients, partners, or investors the value your business brings to the table. For small businesses and entrepreneurs, proposals are often the bridge between an idea and a signed agreement. They help you outline clear expectations, build trust, and position your business as a professional solution provider.
Why business proposals matter
Business proposals play a major role in winning clients, forming partnerships, and even securing funding. They set you apart by:
- Demonstrating professionalism and preparation
- Clarifying project goals, timelines, and costs
- Showing the unique value your business provides
- Helping build stronger client and partner relationships
When should you use a business proposal?
Business proposals are useful in many scenarios where you need to communicate your value in a clear, structured way, including:
- Pitching your services to a new client
- Applying for business funding or grants
- Responding to a request for proposal (RFP)
- Presenting ideas for a strategic partnership
- Outlining solutions for an existing client’s new project
Proposal vs. business plan
Business proposals and business plans are both crucial documents, but they serve different purposes. A business proposal is for external audiences, like potential clients or partners, and focuses on winning specific opportunities. A business plan, on the other hand, is more of an internal roadmap that outlines your long-term vision, goals, and strategies for growth.
Use the table below as a guide to determine whether you need to write a business plan or a business proposal.
| Feature | Business proposal | Business plan |
|---|---|---|
| Purpose | Persuade a client, partner, or investor to work with you | Define business strategy and guide internal decision-making |
| Audience | External | Internal (owners, teams, lenders, stakeholders) |
| Focus | Specific project, solution, or deal | Overall business goals, vision, and growth strategy |
| Timeframe | Short-term, project-based | Long-term |
| Content | Proposal of services, pricing, timeline, and benefits | Market analysis, financial projections, operations, and company structure |
Types of business proposals
The type of business proposal you need to write depends on who you’re writing to and why. There are three main business proposal formats to consider: solicited proposals, unsolicited proposals, and special cases.
Solicited proposals
A solicited proposal (also called a requested proposal) is created when a potential client or organization specifically requests information from you. This usually happens through a request for proposal (RFP) or a request for quote (RFQ).
Because the client has already expressed interest, solicited proposals give you a clear framework to follow. For example, a business might respond to an RFP from a large company seeking IT support services. The proposal would address each requirement in detail to show how the business can meet the client’s exact needs.
Unsolicited proposals
Unsolicited proposals are sent without any formal request. They’re often used as a proactive way to introduce your services, showcase new opportunities, or highlight how you can solve a problem the client hasn’t considered yet. These proposals are formatted more like a sales pitch, but they should still be structured and professional.
For instance, a graphic design agency might send an unsolicited proposal to a local coffee shop offering a rebrand package that could attract more customers. While there’s no guarantee the business will respond, unsolicited proposals can help open new doors.
Special cases (grants, partnerships, renewals)
Some business proposals don’t fall under the standard solicited or unsolicited categories due to their specific audience and requirements. These include:
- Grant proposals: Used to request funding from organizations or government agencies. These often have strict requirements and supporting documentation.
- Partnership proposals: Outline how two businesses can collaborate for mutual benefit, such as co-marketing campaigns, joint ventures, or events.
- Renewal proposals: Created to extend or update an existing agreement with a current client. They usually ensure continuity of services or adjust terms as the relationship evolves.
How to write a business proposal (key components)
Writing a business proposal doesn’t have to feel overwhelming. The key is to follow a clear structure that walks your reader through the problem, your solution, and the value you bring. Your business proposal should include:
- Title page
- Introduction or cover letter
- Executive summary
- Problem or opportunity statement
- Proposed solution
- Deliverables and timeline
- Pricing and payment terms
- Terms, conditions, and next steps
Create a title page
Your title page sets the stage for the proposal. It should give a professional first impression and make it clear who the proposal is for, who it’s from, and what it covers. Keep it simple, clean, and to the point. Include:
- The project name
- Your business name
- The client’s name
- The date
Example:
Website Redesign Proposal prepared for Green Valley Coffee Roasters by Bright Ideas Web Design, August 25, 2025.
Related: Business name ideas
Write an introduction or cover letter
This is your chance to greet the recipient, briefly introduce your business, and explain why you’re sending the proposal. Keep the tone friendly yet professional, and make sure the client feels acknowledged. Use this section to set the context for what’s inside the document and build a bit of rapport before diving into details.
Example:
Dear Ms. Lopez,
Thank you for considering Bright Ideas Web Design for your upcoming website redesign. We specialize in creating clean, user-friendly websites for small businesses, and we’re excited to show how we can support your goals.
Summarize your offer in an executive summary
The executive summary is often the most important part of your proposal because busy decision-makers tend to skim it first. Provide a clear overview of the problem, your solution, and the benefits. Highlight what makes your business the right fit and make the value obvious. Consider the target audience when refining your formatting and voice to keep your executive summary relevant.
Example:
We propose a full website redesign for Green Valley Coffee Roasters that will modernize the site’s look, improve navigation, and integrate online ordering. Our solution will help increase online sales by providing customers with a faster, easier shopping experience.
Explain the problem or opportunity
A strong business proposal should define the challenge your business can solve or the opportunity it can create for your client. Use clear, straightforward language. If there are multiple issues or opportunities, list them out in bullet points for clarity and readability. This section shows you understand the client’s needs and helps build trust.
Example:
- Customers find it difficult to navigate the current website
- The existing site is not mobile-friendly
- Online ordering is not integrated, leading to lost sales opportunities
Present your solution
Once the problem is clear, confidently present your solution. Describe what you’ll do, how you’ll do it, and why it’s the best choice. Focus on the results your solution will deliver to show the client how your approach directly addresses their challenges or goals.
Example:
We will design a mobile-responsive website that improves navigation, integrates a secure online ordering system, and features updated branding to align with Green Valley Coffee Roasters’ growth goals.
Outline your deliverables and timeline
Clarity is key in this section. You should list exactly what the client will receive and when in an organized manner. This can be presented as bullet points or a simple table. A realistic timeline shows you’ve thought through the process and helps manage expectations.
Example:
Deliverables
- Mobile-responsive website design
- Integrated online ordering system
- Updated branding and product photography
Timeline
- Discovery and design phase: 2 weeks
- Development phase: 3 weeks
- Testing and launch: 1 week
List your pricing and payment terms
Be upfront about pricing so there are no surprises later. Break down the costs by service or deliverable, and explain the payment schedule. Transparency builds trust and helps you position your business as professional and reliable. When pricing products, be sure to think about your profit margins and find your break-even point to make the most of your time and resources.
Example:
- Website design and development: $4,000
- Online ordering integration: $1,500
- Product photography: $500
Total: $6,000
Payment terms: 50% upfront, 50% upon project completion
Related: Explore business invoicing solutions
Include terms, conditions, and next steps
This section should define the terms and conditions of the agreement, including deadlines, revision policies, and any limitations. It should also give your client clear next steps so they know exactly how to accept and move forward.
Example:
This proposal is valid for 30 days. Upon acceptance, a signed agreement and initial deposit are required to begin work. To move forward, please sign and return the attached acceptance form.
Review and personalize your proposal before sending
Before sending any business proposal, you should always proofread it carefully, check for consistency, and make sure it’s tailored for the recipient. A personalized, error-free proposal demonstrates professionalism and increases your chances of winning the business. Use this checklist as a guide:
Business proposal review checklist
- Proofread for grammar and spelling
- Double-check all client and project details
- Ensure the proposal is customized to the recipient’s needs
- Confirm all attachments or links are included
Business proposal template
Instead of writing your proposal from scratch, you can save time with a professional business proposal template. A template gives you a clear structure to follow, so you can focus on customizing the details for your client. Check out GoDaddy’s business proposal template to jump-start your next opportunity.
Best practices for a winning business proposal
How you present your business proposal can make the difference between getting a “yes” and being overlooked. Keep these best practices in mind to make your proposal stand out:
- Keep it clear and concise: Use straightforward language and avoid jargon. Make sure anyone reading can quickly understand your value.
- Focus on the client’s needs: Tailor your proposal to address the recipient’s goals and challenges. Show how your solution is built around them.
- Use visuals where possible: Add charts, graphs, or images to make data and ideas more engaging. Visuals help break up text and make your proposal easier to digest.
- Highlight your unique value: Explain what sets your business apart from competitors. Make it clear why you’re the best choice.
- Stay professional in design and tone: Use a clean layout, consistent formatting, and proofread carefully. A professionally designed proposal shows that you take the opportunity seriously.
- End with a strong call to action: Tell the reader exactly what to do next, whether it’s signing, scheduling a meeting, or reaching out with questions. A clear CTA moves the conversation forward.
Following up and closing the deal
Once your proposal is polished and ready, the next step is sending it to the client. A professional email with the proposal attached or linked is a simple, effective way to share it. After sending, don’t be afraid to follow up within a few days to confirm they received it and to answer any questions.
If your proposal is accepted, celebrate the win and move quickly to formalize the agreement. This could mean signing a contract, scheduling a kickoff meeting, or sending the first invoice. You can use online pay links to make payments convenient and secure.
If the proposal is rejected, view it as an opportunity to learn. Ask for feedback so you can improve future proposals, and keep the door open for future projects or collaborations.
Turning business proposals into growth
Writing a business proposal is one of the most effective ways to win new opportunities and show clients why you’re the right choice. Following a clear structure, focusing on the client’s needs, and presenting your solution confidently can help you turn your proposals into signed deals.
If you’re still in the early stages of building your business, GoDaddy Airo can help you generate a business name, design a logo, launch a professional website, and more. Combine these tools with a winning proposal, and you’ll have everything you need to make your business stand out.
Frequently Asked Questions
What is the main goal of a business proposal?
The main goal of a business proposal is to convince a potential client, partner, or investor that your business is the best choice for their needs. A proposal explains the problem, outlines your solution, and shows the value you bring. It’s designed to turn opportunities into agreements by making your offer clear, professional, and compelling.
What are the three main types of proposals?
The three main types of business proposals are:
- Solicited proposals: Created in response to a request, such as an RFP or RFQ.
- Unsolicited proposals: Sent without a request, often as a proactive way to pitch your services.
- Special cases: Proposals for grants, partnerships, or renewals.
How do you write a simple business proposal?
A simple business proposal should include:
- Title page
- Introduction or cover letter
- Executive summary
- Problem or opportunity statement
- Proposed solution
- Deliverables and timeline
- Pricing and payment terms
- Terms, conditions, and next steps
Before sending it to your client, thoroughly proofread it for grammar, spelling, and personalization.
