Tag: Business Proposal

Two of Types of Business Proposal

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Types of Business Proposal
1.    Sales Proposal

Sales proposal is written to sell an item or idea to a company. It is usually used for research and project request.  Sales proposal is used to attempt to propose new idea, products or services.  First, it is essential to educate potential customer or client about your product or service to offer.  Then, you have to provide convincing statement why the customer needs the product or service. At last, illustrate the return of investment (ROI). A product or service demonstration should also be included in order to know the benefits and advantages. An effective sales proposal has an increase the chances of attaining positive results.

2.    Grant Proposal

It is written to request money that does not have to be paid back from government or private donors. The US government as well as some private foundations and public corporations gives billions of dollars in funding to individuals and organizations to be used for particular projects.  This financial support requires no repayment as long as it used to fund the project for which it was allocated.  The money or the funds is called grant that can be given to individuals, non-profit organization or not-for-profit companies, foundations, charitable or educational organizations.  A successful grant proposal will be awarded the funding.

Writing Step for Winning Business Proposal

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Business development which required written proposal is avoided by some business people because they believe that writing proposal is tricky. I believe that if you will know the basic steps, it will never be difficult because once you clearly define your plan of action and follow simple steps; you will have a winning business proposal.

The first thing you should do with your business proposal is to clearly define the benefits from the proposed business venture. It should be state visibly how it will benefit for them and how you plan to do it. The next step is to tell them why your company is the best for the job.

Describe the product and services you are offering and state clearly your main objectives that it will be the best solution to their company. Identify the points why your company should be chosen by your client.

Then, carefully identify your financial projections. You can employ professional assistance to estimate your business proposal for your prospective client. Always remember that business is not static entity. Convince them that your offer is the most effective and cost effective. Also, you can research your client’s requirement and make sure that your information is up to date as possible.

Make your business proposal informative as much as possible. Any research done and facts based projects should be included in your proposal. You can use charts and graphs to identify your information where necessary.

Finally, use professional layout and eye-catching cover as well good layout such as bullet points, charts, graphs, financial projections and summaries for quick review by prospective clients. It is essential for your business proposal to create a very positive impression.

Sample Business Proposal Guideline

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A business proposal is just like a business deal.  It could be a report showing an idea to improve management to your boss or it could be a written document offer from a seller to a prospective buyer. A business proposal is needed to every business to use in decision making.  Actually a business proposal is a business idea to improve services and the company as well.

There is a lot of sample business proposal everywhere either in the net or somewhere else. You can use sample business proposal as your guidance in your writing but make sure not to copy, just serve as an idea on how to do it.  The purpose of using sample business proposal is to assess proposal created by others in your industry. There are some benefits of reviewing a sample business proposal because it can save money, time and effort because it serves as a basis of your own proposal. Using a sample business proposal will increase profitability of the company by launching a new product or service.

In choosing a right sample business proposal, it is important that you will know what to look for. It can be a template that can easily customize with your company’s information and it has a good graphics and professional layout. Also, it should be easily and quickly fill in important information about your company.

Writing a Proposal

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The technical proposal is our division’s primary sales tool. Our proposals can have a major effect on our performance in highly competitive… market, and it is imperative that they be as good as we can possibly make them. They must not only be technically sound, but they must also be logically and clearly presented.

What is proposal?

– A proposal is a written offer to solve as technical problem in a particular way, under a specified plan of management, for a specified sum of money.

– A proposal is a document designed to convince a “customer” that the company (or organization) presenting it is better qualified to supply a desired product or service than are all the other companies submitting proposals.

– Often a proposal is a very long report and instead of being prepared by a single author, a considerable number of people may collaborate in the writing.

– Some proposals are quite brief and are being prepared by a single author.

– Proposals must be factual, objective, logical.

Proposal Objective

1. Business Proposal
– to solve the perceived problem in the reader’s organization or government office
– to win an award of a contract
– benefits of the proposed services or products are offered for a quoted payment, usually money

2. Research Proposal
– researcher writes a proposal to the funding agency requesting for compensation – a grant

Proposal Condition

  1. A proposal prepared by a single author in an application to a government agency for funding a research project.
  2. A proposal written by a researcher which is research study. The researcher needs a grant before undertaking a costly project or study culminating in a long, formal report must write a research proposal to the funding agency. Again the writer requests compensation – a grant.

Sample Proposal: Establishment of a Cindy’s Fast Food

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Sample Proposal

Title: Establishment of a Cindy’s Fast Food Branch Along Plaza of Balanga, Bataan

Date : January 25, 2000

To: Bataan Traders Inc.
From: Herrera Consultancy
Subject: Establishment of Cindy’s Fast Food Branch Along Plaza of Balanga, Bataan

Part of my job as public relations director of HERRERA CONSULTANCY is to propose to big business establishments an expansion of their business interests. Having been notified that your company plans to engage in another business venture, I offer you, with optimism, this proposal.

The food centers at the plaza of Balanga could not accommodate all the customers especially during peak hours, the area being thickly populated by students, professionals and permanent residents. Most of the fast food is only classified as class C or D. In fact, students and professionals go as far as the near town just to dine with friends and loves ones because no food center is available during peak periods.

To remedy this problem, I propose that you choose the area along Plaza for your business expansion. This proposal details the problems, the solutions and the cost.

The Problem

With an 8.5% inflation rate, life is becoming more difficult each day. This is aggravated by the 80% unemployment and under-employment. With this scenario, choosing a business and its location poses a problem among entrepreneurs. Some of the major problems that may be met are the following:

• Kind of business. What kind of business will one engage in?
• Location. What is the best location for a business?
• Cost of land. Where can one find the cheapest land?
• Security. Is it safe to engage in business there?
• Financial reward. Will one be financially merited in such business?

Businessmen should solve the problems. They must be sure that their venture will be financially rewarding.

The Solution

The problems aforementioned can be solved.

  • Kind of business. Man can forego almost every thing except food. Men have to eat and they do everything to fill in their stomachs. This fact makes the food business rewarding.
  • Location. The best place to establish a food center is the plaza since this is the center of town activities and it is near the colleges, municipal, church, hospital, public and private offices and residences.
  • Cost of land. The P20,000 per square meter of land is comparative low since the current price of land in the area is P25,000. The lot owner will leave for the United States for good and the property has to be disposed immediately.
  • Security. This is a major consideration of a business enterprise. The Cindy’s Fast Food Branch along Plaza is very secure because of several establishments around. Policemen are assigned to secure the place on a 24 hour routine.
  • Profitability. The 5 million population in Bataan concentrate in this area. Statistics show that about two million live in the place. Since most food centers cater to people, Cindy’s Fast Food along Plaza will be the most patronized branch of the food chain.

The Cost

Establishing a food chain is not easy but the proposed center is not very costly as shown in the list below.

Land P40,000,000.00
Building P 4,000,000.00
Equipments. P 1,000,000.00

Total Cost P 45,000,000.00

Conclusion

This proposal has shown the viability of establishing the Cindy’s Fast Food branch along Plaza Balanga, Bataan. There is no better place than the Plaza. There is no better business than a food center. There is no better time than now.

I will drop by later this month to discuss any question you might have about the proposal.