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, weâll 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 youâre asking for.
How to write up a business proposalâA guide by Studyfy
- Identify your target audience
Before you even start on your first draft for a business proposal, make sure youâre 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?
- Gather relevant information
Once you know who youâre writing for, collect the facts and figures youâll 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 â so make sure yours speak loud and clear.
- Structure and format
A business proposal isnât 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.
- Craft a compelling executive summary
Think of the executive summary for your business proposal as your elevator pitch. Itâs the first, and, if weâre being realistic, often the only part your reader will read to understand your vision.
Make it compelling by including clear explanations of what youâre proposing, whatâs in it for your reader, and what results you expect to get.
Keep it concise (about one page long) to avoid overwhelming your reader. Youâll have a chance to include more detail in the full proposal document.
Donât dwell too much on how youâre about to change the world. Focus on why your audience should care about your idea.
- Develop a detailed problem statement
Once youâre done with the executive summary, explain what challenge youâre trying to tackle. Thatâs what problem statements are for.
Describe the problem youâre hoping to solve and back it up with relevant data. The main rule of business proposals stands: numbers are your number one friend.
- Propose a solution and implementation plan
Finally, itâs your time to shine. Present what youâre 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:
- What does your solution involve
- How it works
- Why itâs effective
Then, outline your implementation plan, meaning the steps youâll take to deliver results (with timelines, resources, and team responsibilities). Make it clear that youâve thought everything through down to the smallest details.
- Highlight benefits and value
Now that your reader understands what youâre proposing, go back to their main concern (at least if theyâre a potential investor or client) â whatâs in it for them.Â
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.
- 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 itâs easy to understand.
Then, break down the total cost of your proposed idea, payment terms, and whatâs included.
Donât try to pretend like your idea will cost your potential investor or client less than it probably will.
Otherwise, theyâll feel misled, and you risk scrapping for solutions once they realize your estimates were way off.
How to write a business proposal letter đ© What to include
A business proposal letter for a proposal is like a cover letter for a CV. Itâs a brief (about one page long) formal introduction to what youâre offering in your full proposal.
If youâre sharing your business proposal electronically, itâs supposed to capture your readerâs interest enough for them to at least open the proposal attached to the email.
Hereâs what a business proposal letter should include:
- A professional greeting followed by a brief yet compelling introduction of your business
Briefly explain who you are (meaning your business, of course), what youâre proposing, and why, as in what problem youâre trying to solve.
Ideally, include the amount of money youâre asking for. This will show your commitment to transparency and save the readerâs time.
A pro tip: In your greeting, try to show that youâve 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, theyâll be more likely to read it.
- A quick outline of the potential benefits of your idea for the addressee
Make sure the letter clearly answers the readerâs unasked questions, âWhatâs in it for us? Why should we care?â
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?
- 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 itâs just a Zoom meeting.
How to write a business proposal sample quickly
A word of warning: itâs only possible to write a business proposal quickly if youâve 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 wouldnât recommend prioritizing speed. Quality matters more, after all, your funding is at stake!
But suppose youâre on a deadline and, for some reason, want to write your business proposal yourself instead of hiring a professional.
If thatâs the case, follow these time-saving tips. Theyâll help you finish your proposal quickly without putting its purpose at risk:
- Use a business proposal template. It can either be the one youâll see below or any other you can find online (make sure you take it from a credible source, though).
- Cut whatâs unnecessary and focus on core sections: executive summary, problem statement, proposed solution, timeline, and budget.
- 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.
- Repurpose the evidence you already have: stats, testimonials, case studies, etc.
How to write a business proposal template for others to follow
Itâs 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 mightâve noticed in Studyfyâs business proposal template above, the first required element is a title page. Itâs nothing special, but your audience will appreciate a correctly formatted one (especially if youâre writing for an investor).
Hereâs what to include in a business proposal title page:
[Your Company Logo]
BUSINESS PROPOSAL TITLE
Prepared for:
[Clientâs Company Name]
[Clientâs Contact Name]
[Clientâs Address]
â
Prepared by:
[Your Company Name]
[Your Name & Title]
[Your Contact Information]
[Your Company Address]
â
Date:
[Month Day, Year]
How to write a business proposal for funding đČ A brief example
On average, business proposals are about 10 pages long, so we canât 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.
Weâre seeking $100,000 in seed funding to support initial production, packaging, and regional distribution of our product in eco-focused grocery chains.
In return, weâre 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 donât go beyond vague green claims.
Thereâs a clear gap for a truly eco-friendly alternative thatâs fully transparent about its sustainability practices.
Our Solution
GreenSip offers cold-brew herbal teas in fully compostable packaging, without plastic or greenwashing.
Weâve 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., Unileverâs 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 youâre 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 theyâll tell you that itâs the exit.
Your vision may capture your investorsâ interest, but theyâre 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.
Itâll help frame your audienceâs 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 youâve 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 youâre asking for in your business proposal as a once-in-a-lifetime opportunity.
To achieve this, make sure your business proposal answers the âWhy now?â 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 youâve noticed a blind spot other businesses have missed? Do you have a unique reason why youâre 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 youâre going to leverage their network and expertise. Itâll make them feel needed and might play into a positive decision
Anticipate resistance â Add a âWhy this wonât workâ 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 itâs just a brief section in bullet points, addressing (and destroying!) investorsâ objections before they voice them works.
If possible, offer a demo
Almost every business proposal ends with something along the lines of âThank you for considering.â But thereâs a way to stand out: offer an optional next step.
It can be something like âWeâd love to walk you through the platform in a 15-minute demo or even show you a live customer session.â Itâs 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, itâs not always a business owner who reaches out to a prospective buyer or investor first; sometimes, itâs the other way around. When the client initiates the cooperation and requests a business proposal from a business, itâs called a solicited proposal.
There are a few major differences between solicited and unsolicited business proposals. Letâs explore both in more detail.
Who initiates the business proposal
â
Solicited business proposal
â
A formally solicited business proposal is requested by an investor or a potential client. Typically, itâs because theyâve identified a certain need (or, in investorsâ 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 thereâs a business opportunity for them.
When this happens, identifying customer pain points isnât 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 thatâs 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 clientâs needs and anticipates potential concerns.
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Unsolicited business proposal
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Unsolicited proposals donât 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 theyâre 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 doesnât mean itâs impossible to win without an official request.
When it comes to unsolicited proposals, success boils down to thorough market research, deep understanding of the clientâs problem, and, of course, a great business proposal that showcases the businessâs 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 Studyfyâs free business proposal template above (including a title page, project timeline, statement of the clientâs 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 itâs 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 youâre trying to write a persuasive business proposal and donât mind being creative about it.
However, itâs 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 wasnât formally solicited, youâll need to:
- Guess what the potential client or investor values the most.
- Organize all relevant information in such a way that shows youâve been thorough but doesnât overwhelm the reader.
- Be persuasive enough to capture their interest and make them care (as they didnât ask for this, youâre cold-emailing).
A defined need vs. creating interest
Solicited business proposal
â
When you get an official request for a proposal, it means that the client already knows what problem theyâre trying to solve.
Their RFP might say: âWeâre looking for a CRM system that can integrate with X, Y, and Z,â or âWe need security services for a commercial property between 6 p.m. and 6 a.m.â
Winning business proposals (at least when theyâre solicited) is a direct response to a defined problem. Your audience has already articulated what the issue is â your job is to offer a solution theyâll like.
Unsolicited business proposal
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Unsolicited business proposals are more challenging to write precisely because you donât actually know what your potential customers or investors are after.
You canât appeal to the companyâs goals or customer pain points â you need to guess (based on extensive market research and audience analysis, of course).
For example, if you notice that your potential clientâs website isnât 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
â
A formally solicited proposal is expected, and thereâs 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
â
When no one has asked for your business proposal, thereâs 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 donât mean no chances at all. Winning business proposals can be convincing even when there is no official request.
What youâre 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 readerâs 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 â generic proposals are rarely effective. Your potential client, investor, or the government agency youâre writing to must see how your idea benefits them.
Can I send the same proposal to multiple clients?
Technically, you can, but thatâs not a good idea. Every client or investor has their own goals, priorities, and pain points.
Itâs nearly impossible to write a business proposal that will resonate equally with different people. Whatâs 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 donât write much and arenât 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 youâre offering and convince the reader that they need it.
How to write a business proposal to a bank?
If youâre 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 Studyfyâs 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. Itâs 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.
Donât overpromise, though. Itâs 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 clientâs problem or outlines a business idea for an investor. In contrast, a marketing proposal has a narrower focus: itâs specifically about marketing strategies, campaigns, and goals.Â