How to Write Business Proposal: Helpful Tips and Best Practices

How to write a grant proposal for a small business? What about a business proposal for a potential investor or client? Neither is easy, but with a little guidance, you can write a proposal that will convince your audience your business idea is worth it.

In this article, we’ll share a free business proposal template, tips, and real-life best practices for writing business proposals. Follow them, and you can be sure that whoever is going to read yours will want to give you the money you’re asking for.

How to write up a business proposal❓A guide by Studyfy

1. Identify your target audience

Before you even start on your first draft for a business proposal, make sure you’re outlining it with a specific reader in mind.

Are you writing for a potential client, investor, or government agency? The answer will affect what you need to focus on and which arguments to prioritize.

Ask yourself these questions about your audience (and make sure you have clear answers before you start writing):

• What are their goals and pain points?
• What do they already know about my business?
• What outcomes are they expecting?

2. Gather relevant information

Once you know who you’re writing for, collect the facts and figures you’ll need to support your business proposal.

This can include background on your project, relevant case studies or testimonials, financial data, competitor analysis, and deliverables.

Be particularly thorough with this step if your business proposal is intended for a potential client or investor. For them, nothing speaks louder than numbers – so make sure yours speak loud and clear.

3. Structure and format

A business proposal isn’t an essay. It has a specific structure you need to follow for your arguments to be convincing.

Whoever is reading your proposal is probably well-familiar with the genre and expects specific things, such as an executive summary, an implementation plan, and a budget breakdown.

We will detail each necessary section in a bit.

4. Craft a compelling executive summary

Think of the executive summary for your business proposal as your elevator pitch. It’s the first,  and, if we’re being realistic, often the only part your reader will read to understand your vision.

Make it compelling by including clear explanations of what you’re proposing, what’s in it for your reader, and what results you expect to get.

Keep it concise (about one page long) to avoid overwhelming your reader. You’ll have a chance to include more detail in the full proposal document.

Don’t dwell too much on how you’re about to change the world. Focus on why your audience should care about your idea.

5. Develop a detailed problem statement

Once you’re done with the executive summary, explain what challenge you’re trying to tackle. That’s what problem statements are for.

Describe the problem you’re hoping to solve and back it up with relevant data. The main rule of business proposals stands: numbers are your number one friend.

6. Propose a solution and implementation plan

Finally, it’s your time to shine. Present what you’re proposing in such a way that it seems the only logical solution to the issue you described in the problem statement.

Make the reader feel like they absolutely have to give your proposal a chance

Break down three key points:

1. What does your solution involve
2. How it works
3. Why it’s effective

Then, outline your implementation plan, meaning the steps you’ll take to deliver results (with timelines, resources, and team responsibilities). Make it clear that you’ve thought everything through down to the smallest details.

7. Highlight benefits and value

Now that your reader understands what you’re proposing, go back to their main concern (at least if they’re a potential investor or client) – what’s in it for them. 

Focus on the benefits. The tangible and intangible results your audience will gain. Will they save time? Increase revenue? Reduce risk?

Back up your claims with evidence, including case studies, ROI estimates, and client testimonials if you have any.

8. Include a budget and pricing

The main rule here is to be transparent and realistic. Explain your pricing structure (a flat fee, hourly rates, tiered packages, etc.) so that it’s easy to understand.

Then, break down the total cost of your proposed idea, payment terms, and what’s included.

Don’t try to pretend like your idea will cost your potential investor or client less than it probably will.

Otherwise, they’ll feel misled, and you risk scrapping for solutions once they realize your estimates were way off.

How to write a business proposal letter 📩 What to include

A business proposal letter for a proposal is like a cover letter for a CV. It’s a brief (about one page long) formal introduction to what you’re offering in your full proposal.

If you’re sharing your business proposal electronically, it’s supposed to capture your reader’s interest enough for them to at least open the proposal attached to the email.

Here’s what a business proposal letter should include:

1. A professional greeting followed by a brief yet compelling introduction of your business

Briefly explain who you are (meaning your business, of course), what you’re proposing, and why, as in what problem you’re trying to solve.

Ideally, include the amount of money you’re asking for. This will show your commitment to transparency and save the reader’s time.

A pro tip: In your greeting, try to show that you’ve done your research and wrote your business proposal specifically for the addressee of your letter. If they see that your proposal is tailored to what they might be interested in, they’ll be more likely to read it.

2. A quick outline of the potential benefits of your idea for the addressee

Make sure the letter clearly answers the reader’s unasked questions, “What’s in it for us? Why should we care?”

This part should focus on them more than on you. What are their pain points your proposal addresses? How does your idea align with their business goals?

3. A polite yet effective call to action and contact details

Finally, encourage the reader to open your full proposal and eventually, fund your project without sounding too pushy.

Creating a gentle sense of urgency is an art, and you need to master it as a business owner. The most organic way to keep the conversation going is to immediately suggest a follow-up, even if it’s just a Zoom meeting.

How to write a business proposal sample quickly

A word of warning: it’s only possible to write a business proposal quickly if you’ve already done your research and have all the data necessary to convince a potential client or investor. But even if you have and do, we wouldn’t recommend prioritizing speed. Quality matters more, after all, your funding is at stake!

But suppose you’re on a deadline and, for some reason, want to write your business proposal yourself instead of hiring a professional.

If that’s the case, follow these time-saving tips. They’ll help you finish your proposal quickly without putting its purpose at risk:

1. Use a business proposal template. It can either be the one you’ll see below or any other you can find online (make sure you take it from a credible source, though).
2. Cut what’s unnecessary and focus on core sections: executive summary, problem statement, proposed solution, timeline, and budget.
3. Use bullet points and lists whenever possible (for benefits, deliverables, phases of your plan, etc.). This will not only help you save time but will also make it easier for the reader to get through your proposal.
4. Repurpose the evidence you already have: stats, testimonials, case studies, etc.

How to write a business proposal template for others to follow

It’s way easier to create a well-written business proposal, as well as show your team how to write one, when you have a business proposal template to follow

How to format a business proposal title page?

You already have a good business proposal template to follow. It will help you structure your business proposal correctly, be it for a potential investor, client, or even a school research project.

As you might’ve noticed in Studyfy’s business proposal template above, the first required element is a title page. It’s nothing special, but your audience will appreciate a correctly formatted one (especially if you’re writing for an investor).

Here’s what to include in a business proposal title page:

[Your Company Logo]

BUSINESS PROPOSAL TITLE

Prepared for:

[Client’s Company Name]

[Client’s Contact Name]

[Client’s Address]

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Prepared by:

[Your Company Name]

[Your Name & Title]

[Your Contact Information]

[Your Company Address]

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Date:

[Month Day, Year]

How to write a business proposal for funding 💲 A brief example

On average, business proposals are about 10 pages long, so we can’t really include a complete example here.

Still, to give you an idea, take a look at this example prepared by Studyfy proposal writers: a funding request for a hypothetical herbal tea company, Green Sip. It shows what sections to include and what to focus on in each of them:

Business Proposal Title

Funding Request for GreenSip: A Sustainable Beverage Startup

Executive Summary

GreenSip is a ready-to-drink herbal tea brand produced with 100% compostable packaging and locally sourced ingredients.

We’re seeking $100,000 in seed funding to support initial production, packaging, and regional distribution of our product in eco-focused grocery chains.

In return, we’re offering a 10% equity stake and anticipate a 3x return by year 5 through planned expansion and strategic acquisition.

The Problem

Younger consumers (age 18-40) are interested in supporting eco-friendly brands and demand sustainable beverage options.

However, beverage companies currently available in the market still use mostly plastic bottles and don’t go beyond vague green claims.

There’s a clear gap for a truly eco-friendly alternative that’s fully transparent about its sustainability practices.

Our Solution

GreenSip offers cold-brew herbal teas in fully compostable packaging, without plastic or greenwashing.

We’ve developed three flavors with strong early traction from local farmers markets and eco-lifestyle influencers.

Use of Funds

• $35,000: First production run (20,000 units)
• $25,000: Packaging design and printing
• $20,000: Distribution and retail placement fees
• $10,000: Marketing and influencer partnerships
• $10,000: Operational cushion (warehousing, admin)

Projected Impact

With this funding, we project $150,000 in revenue in Year 1 and aim to secure national distribution by Year 3.

Our long-term goal is to be acquired by a major sustainable goods conglomerate (e.g., Unilever’s Planet Positive division).

Exit Strategy

We forecast a potential acquisition within 5 years or an investor buyback at 3x ROI.

More tips on how to write a business proposal for investors

If you’re writing a business proposal specifically for potential investors, there are a few more important things to include in your proposal.

Show the exit

Ask any proposal writing service what most investor-oriented business proposals are missing, and they’ll tell you that it’s the exit.

Your vision may capture your investors’ interest, but they’re unlikely to fund you unless they can see a clear way out for themselves.

To anticipate their questions, include a short section on potential exit strategies (acquisition, IPO, etc.) early in your proposal.

It’ll help frame your audience’s mindset around ROI, which is what most investors care about above everything.

De-risk the investment

Investors think in risks. Address their concerns proactively by showing how you’ve tested assumptions, secured IP, validated the market, or minimized burn.

The less risky your idea looks to investors, the more attractive it is to them.

Create a sense of urgency

The right timing is just as important for investors as a great idea is. Frame the investment you’re asking for in your business proposal as a once-in-a-lifetime opportunity.

To achieve this, make sure your business proposal answers the “Why now?” question. Highlight market shifts, recent tech breakthroughs, regulatory tailwinds, and current trends (everything that shows that the perfect time for your proposed solution is right now).

Show a good founder-market fit

This might be obvious, but a lot of first-time business proposal writers fail to achieve it: show why your idea is a perfect solution.

Do you have insider knowledge or a lived experience in the niche? Or perhaps you’ve noticed a blind spot other businesses have missed? Do you have a unique reason why you’re so committed to your business plan as the business plan?

Mention all the details that might be relevant. Solid founder-market alignment increases investor confidence.

Mention investor connections, not just money

The best investors bring more than just cash. Money is only part of a business agreement.

In your business proposal, mention how you’re going to leverage their network and expertise. It’ll make them feel needed and might play into a positive decision

Anticipate resistance – Add a “Why this won’t work” section

A persuasive proposal goes way beyond basic information. A good way to stand out (and make investors more confident in your value proposition) is to anticipate and debunk potential concerns.

Listing everything that might go wrong in your proposal document is a bold and risky move, but it often pays off. The key is presenting evidence to back up your claims.

Even if it’s just a brief section in bullet points, addressing (and destroying!) investors’ objections before they voice them works.

If possible, offer a demo

Almost every business proposal ends with something along the lines of “Thank you for considering.” But there’s a way to stand out: offer an optional next step.

It can be something like “We’d love to walk you through the platform in a 15-minute demo or even show you a live customer session.” It’s just one sentence but it give investors a low-barrier way to say yes.

By the way, offering a demo works well not only with investors but also with almost every prospective client.

Unsolicited vs. Formally solicited business proposal

By now, you have a good idea of what the key elements of a compelling business proposal are and how to present your idea to a potential client to make them interested.

However, it’s not always a business owner who reaches out to a prospective buyer or investor first; sometimes, it’s the other way around. When the client initiates the cooperation and requests a business proposal from a business, it’s called a solicited proposal.

There are a few major differences between solicited and unsolicited business proposals. Let’s explore both in more detail.

Who initiates the business proposal

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Solicited business proposal

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A formally solicited business proposal is requested by an investor or a potential client. Typically, it’s because they’ve identified a certain need (or, in investors’ case, noticed your business and saw potential).

For example, a prospective customer might realize they need to source new suppliers for diversification and decide that your business is a good option.

Or, an investor might notice that your up and coming business is doing well and realize that there’s a business opportunity for them.

When this happens, identifying customer pain points isn’t necessary, at least not the same way you would if you were the one to initiate. The client already knows why they need you, so all that’s left to do is to convince them that your business can deliver.

A solicited proposal typically involves a so-called RFP (Request for Proposal) or RFQ (Request for Quotation) from a prospective buyer or investor. In turn, your business proposal should be a thorough response to it that addresses the client’s needs and anticipates potential concerns.

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Unsolicited business proposal

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Unsolicited proposals don’t start with an RFP or RFQ; they are initiated by a business looking for clients or investors. A business is pitching the product, service, or solution they’re offering to an audience that might or might not be interested. Think of it as cold-calling.

Obviously, the chances that a prospective client or investor will bite is way higher with a formally solicited business proposal. But this doesn’t mean it’s impossible to win without an official request.

When it comes to unsolicited proposals, success boils down to thorough market research, deep understanding of the client’s problem, and, of course, a great business proposal that showcases the business’s competitive advantage.

Structure and relevant details to include

Solicited business proposal

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The structure of solicited proposals is what you can see in Studyfy’s free business proposal template above (including a title page, project timeline, statement of the client’s problem, proposed solution section, and other essential elements).

Certain formatting requirements, like the structure from the step-by-step guide above or an unofficial page limit for the entire proposal, are also required. They might not be strict, but it’s still better to follow them. Follow the free business proposal template from this article.

Unsolicited business proposal

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Unsolicited proposals are different: technically, you have full control over how you structure your proposal. This can be great if you’re trying to write a persuasive business proposal and don’t mind being creative about it.

However, it’s still best to stick to the standard business proposal template, at least when it comes to key sections, like the problem statement and the proposed solution. At the very least, to deliver an effective business proposal that wasn’t formally solicited, you’ll need to:

1. Guess what the potential client or investor values the most.
2. Organize all relevant information in such a way that shows you’ve been thorough but doesn’t overwhelm the reader.
3. Be persuasive enough to capture their interest and make them care (as they didn’t ask for this, you’re cold-emailing).

A defined need vs. creating interest

Solicited business proposal

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When you get an official request for a proposal, it means that the client already knows what problem they’re trying to solve.

Their RFP might say: “We’re looking for a CRM system that can integrate with X, Y, and Z,” or “We need security services for a commercial property between 6 p.m. and 6 a.m.”

Winning business proposals (at least when they’re solicited) is a direct response to a defined problem. Your audience has already articulated what the issue is – your job is to offer a solution they’ll like.

Unsolicited business proposal

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Unsolicited business proposals are more challenging to write precisely because you don’t actually know what your potential customers or investors are after.

You can’t appeal to the company’s goals or customer pain points – you need to guess (based on extensive market research and audience analysis, of course).

For example, if you notice that your potential client’s website isn’t mobile-friendly, you might send a proposal arguing that a competent redesign by your team could improve their conversions.

A word of warning: Keep in mind that you might have to deal with competing proposals from other businesses offering similar or alternative solutions to your potential client. Make sure your business proposal covers everything and is persuasive enough to be chosen.

What are your chances?

Solicited business proposal

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A formally solicited proposal is expected, and there’s usually a person or even an entire team assigned to review submissions. So, the odds that your proposal will be read, considered, and fairly evaluated are really good.

Still, do everything you can to make sure the reader will read your business proposal in full.

Stick to the recommended page count, do your best on the executive summary (and try to write it all on the same page to avoid overwhelming the audience), make the proposal visually appealing, etc.

Unsolicited business proposal

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When no one has asked for your business proposal, there’s a higher chance it will go unread or sent to spam. You need to be ready for this when writing unsolicited business proposals.

However, lower chances don’t mean no chances at all. Winning business proposals can be convincing even when there is no official request.

What you’re offering must be very relevant, perfectly timed, and presented well.

Also, your business proposal needs to start with an impeccable executive summary. The chances of an unsolicited proposal being written in full are quite slim (unless the business proposal title and executive summary capture the reader’s interest instantly).

FAQ

How to write a proposal for a business to stand out?

A standout business proposal not only has a good idea that feels personal but also backs it up effectively with evidence (numeric data, real-world traction, etc).

Also, make sure your proposal is personalized to your reader – generic proposals are rarely effective. Your potential client, investor, or the government agency you’re writing to must see how your idea benefits them.

Can I send the same proposal to multiple clients?

Technically, you can, but that’s not a good idea. Every client or investor has their own goals, priorities, and pain points.

It’s nearly impossible to write a business proposal that will resonate equally with different people. What’s more, when a proposal is tailored, which is always obvious for the reader, it shows your diligence and commitment.

Should I hire a professional writer for a business proposal?

Definitely! This is especially true if you don’t write much and aren’t sure you can get your idea across well enough for the reader to feel inspired.

An experienced writer from a service like Studyfy will help you communicate the value of what you’re offering and convince the reader that they need it.

How to write a business proposal to a bank?

If you’re writing for a bank, two things matter the most: financial clarity and risk reduction. Banks are interested in detailed financials, repayment plans, collateral, and a realistic plan for how you intend to use the funds.

Remember: the more confident they are about your ability to repay, the more likely you are to get their money.

Is a business proposal a formal document?

Yes, a business proposal document is generally considered official, especially if it was solicited. A formal business proposal follows the structure you can see in Studyfy’s free business proposal template (a business proposal title page, executive summary, problem statement, etc.).

It might even include legal details, which would make a prospective customer, investor, or their legal team feel more secure.

Does a business proposal need a project timeline?

Yes, a business proposal always benefits from a project timeline. It’s how a prospective buyer or investor can see how long each phase will take, when deliverables are expected, and how you plan to manage time.

Don’t overpromise, though. It’s better to be realistic and transparent to avoid disappointing the client later.

Is a business proposal the same as a marketing proposal?

Not really, but it can be considered a sub-type of business proposals.

A business proposal presents a broader offer that solves a specific client’s problem or outlines a business idea for an investor. In contrast, a marketing proposal has a narrower focus: it’s specifically about marketing strategies, campaigns, and goals.