How to Write a Business Proposal in 10 Steps + Template

For any business to achieve success, it needs to attract clients and customers. Unfortunately, this is easier said than done, as most industries are rife with competition, and the average conversion rate for customers to make it through your sales funnel is only around 2.35%.

While there are several ways to reel in customers, a tried and true method to expand your business is by creating and sending a business proposal.

Here’s everything you need to know about business proposals, including what they are, when to use them, how to write them, different types of proposals, and more.

What Is a Business Proposal?

A business proposal is a formal business document that outlines your company, your products and/or services, and details the value you can provide. It also highlights your unique selling points in comparison to your competitors, as well as your overall capabilities. Companies in all industries can create and use business proposals, no matter the product or service they’re selling.

Once it’s written, the proposal is sent to potential clients to entice them into a purchase, as one-time customers and/or for an ongoing business relationship. Think of it like a more formal and official version of a sales pitch.

Difference Between a Business Plan and a Business Proposal

While many people use the terms “business proposal” and “business plan” interchangeably, they’re actually two completely different things. As we noted earlier, a business proposal is a formal document that companies use to pitch their products and services in the hope of securing a new client or customer.

On the other hand, a business plan is a document that outlines your company’s strategy for growth. It provides details about your business goals and the ways you plan on achieving them. A business plan also details your marketing strategies, financial projections, mission, vision for the future, target market, and more.

Instead of using this information to engage with potential customers, a business plan is primarily used to attract investors and successfully manage the growth of your business.

When to Use a Business Proposal

There are various situations in which you may want to create and use a business proposal. Here are just a few example use cases:

• Pitching your new sales software solution to sales teams at various companies
• Showing businesses how your new consulting services can improve their operation and provide value
• Getting approval for an internal project from management or ownership, by showing why the results will justify the costs and effort
• Responding to a client request for a proposal before an upcoming job or task
• Demonstrating your experience in your industry to build trust and credibility
• Winning a construction job over a competitor by highlighting your unique benefits, strengths, and qualifications

While the contents of the proposal will change depending on the products and services your business offers, the end goal is generally similar. Essentially, these proposals may be used anytime that you want to persuade an individual or organization to take a specific action, like buying a product or service, signing a contract, approving a project, or accepting a change. 

Business Proposal Example

To help you better understand how to write a business proposal, we’ve included a brief example below.

In this sample proposal, a software company is looking to sell its accounting software to small businesses. Here’s everything the business proposal should include, with examples of some details to mention in each section:

Title Page: Accounting Software Proposal for XYZ Company

Table of Contents: [A clear table of contents would go here, so the customer can easily navigate through the proposal.]

Executive Summary: We propose an easy-to-use accounting solution to help your business save money, cut down on manual effort, free up employee hours, reduce accounting mistakes, and optimize your finances. Our tool helps you record and manage transactions, handle invoices, generate reports, manage payroll, track expenses, manage inventory, and more.

Problem Statement: Using manual and/or outdated accounting processes wastes a lot of time, increases the possibility of errors, poses security risks, and limits scalability.

Solution: Our user-friendly accounting software offers a range of features and functionalities that help automate and streamline your accounting efforts, while also reducing errors, enhancing compliance, and more. This includes managing your transactions, invoices, and inventory, tracking inventory, forecasting, and handling payroll.

Qualifications: Our team has a proven track record, as hundreds of worldwide companies rely on our software to save them hundreds of hours of manual work every month.

Timeframe/Roadmap: We can implement the software and have you onboarded in two weeks, and provide ongoing management and assistance after implementation.

Pricing: Our solution costs $XXX per month or $XXX per month if you sign an annual contract.

Legal Info: [Information about the terms and conditions of the proposal and other important legal details, which vary from industry to industry and state to state.]

Call-To-Action: If you’re interested in learning more or want to set up a meeting, don’t hesitate to reach out.

Keep in mind that this is just a basic and abbreviated example, and your business proposal will likely include more detailed information, exact numbers, supporting documents, graphics, and other elements to help impress and entice potential clients.

How to Write a Business Proposal in 10 Steps

Let’s take a closer look at the steps involved in writing a high-quality business proposal.

1. Do Background Research

First, you need to do your due diligence before putting pen to paper on your proposal. This includes researching and analyzing:

• Your target audience
• Their pain points and needs
• The industry
• Existing solutions and their gaps

Once you’re aware of the common problems and struggles your target audience experiences, as well as the alternatives available on the market, you’re better equipped to tailor a proposal that specifically addresses these issues and how your solution can help resolve them.

2. Create an Outline (Or Use a Template)

To begin the creation of your proposal, you’ll need to create an outline. This is essentially a structured plan of the proposal, organizing the different elements you’ll include, from the title page to the signature fields.

While you could create this outline by hand, it’s often more efficient to start from a template. That way, you have a familiar structure for each proposal and don’t need to start from scratch every time.

A piece of contract lifecycle management software like Signaturely makes it easy to work with templates for proposals, contracts, and various other business documents. To create a template in Signaturely, follow these simple steps:

1. Log in to your Signaturely account, and navigate to the Templates tab on the left sidebar. Then click Create Template.
2. Create a name for the template. Optionally, fill out the other fields (such as Optional Message and Create Template Roles) as applicable.

3. Upload the template file you want to use (or import it from another platform), and then click Fill Template. Add any necessary fields, as applicable. To finish and save it for future use, click Save.

To use this new template you just created as the starting point for a proposal or other contract, y go to the Sign tab, click Choose Template, and choose the template you’d like to use. From there, you’re able to edit it to ensure it fits your needs for that specific proposal.

Also, make sure that your outline/template includes a table of contents. This is a helpful way to ensure your potential customers never get confused or lost when navigating through your proposal.

3. Open With a Compelling Title & Executive Summary

The first part of your proposal that you’ll write is the title and executive summary. Your title page should provide a snapshot of your proposal along with the product/service you’re proposing, your company, the potential client, and your contact information.

When choosing the actual title to use on the title page, avoid something too common and boring. Some titles to avoid are:

• Business Proposal
• XYZ Company Business Proposal
• Proposal for [Customer company]
• A title that’s too long
• A title that doesn’t state the benefits you provide

On the other hand, some good title options include:

• Increase Online Sales by 15 % in Through Data-Driven Funnel Optimization
• Cut Monthly Accounting Hours by 40 % via Automated Invoice Processing and Reconciliation
• Reduce Project Coordination Time by 30 % by Deploying a Lightweight Task-Management Platform
• Grow Organic Website Sessions by 50 % in Six Months Through Structured SEO Content Sprints

Essentially, your title should be concise, to the point, and highlight the benefits your solution provides.

Once you settle on a title, move on to the executive summary. This is a section that summarizes the key points of your proposal. You need to focus on why you’re sending the proposal, the problems the client is experiencing, and why your company is the right choice for addressing these issues. 

4. Introduce the Problem & Solution

Now it’s time to create your problem statement. This is the section where you’ll talk about the common issues your target customer may be having. You need to show them that you understand what they’re going through, and explain to them why these problems need to be fixed.

The exact issues you focus on depend on your industry and the product or service you provide. For example, offer a platform that automates accounting workflows. You may focus on a pain point, such as inefficient processes, and how they cost companies valuable time, employee effort, and money.

Once you’ve highlighted these pain points, you need to present a compelling case to show why you’re the solution. Talk in-depth about your product/service, the benefits it provides, and how it’ll help to solve their problems.

Ensure that you clearly explain all details, review your plans for implementation, and provide supporting qualifications to substantiate any claims you make.

Here’s an example:

Problem Statement

From our kickoff call and a brief process walkthrough, we learned that Mountain View Manufacturing’s finance team still relies on a patchwork of spreadsheets and manual journal entries. Similar mid-market manufacturers typically:

• Spend 1 200 + staff-hours per year on data re-keying and reconciliations
  
• Close the books 15–20 days after month-end, delaying cash-flow insight
  
• Suffer 5-8 % duplicate or mis-coded invoices, inviting write-offs and tax penalties
  

These bottlenecks will grow as production expands next year — tying up working capital and exposing the company to compliance risk.

Proposed Solution

We recommend a 10-day “Accounting Automation Sprint” using LedgerFlow Cloud, our SOC-2-certified platform built for discrete manufacturers.

Phase	Day(s)	Key Actions	Success Metric
1. Connect & Import	1-3	Link bank/ERP feeds; load prior-year GL	Data imported with ≥ 99 % accuracy
2. Automate Workflows	4-7	Turn on rules for PO-invoice matching, tax calc, and auto-reconciliations	Duplicate postings < 1 %
3. Train & Go-Live	8-10	Two live sessions + on-demand video; launch KPI dashboard	Close cycle < 7 days

5. Define the Scope of Work, Timeline, and Budget

Defining this information shows the customer that you’ve done a lot of the legwork for them and helps them understand not only the solution itself, but also the process and cost for implementing it.

You should include details on the tasks involved in implementing your product/service, the deliverables, how long each step takes, and the costs associated with implementing and maintaining your solution. It’s essential to be as realistic as possible with everything, ensuring there are no unpleasant surprises for the client.

Sample Scope-Timeline-Budget Snapshot (for a 6-week SaaS onboarding project)

Phase	Key Tasks & Deliverables	Duration	Responsible	Cost (USD)
1. Kick-off & Requirements	• 90-min discovery call• Confirm success metrics & data sources	2 days	Project Lead	$1,200
2. System Configuration	• Connect API to ERP & CRM• Set user roles & SSO	Week 1	Solutions Engineer	$3,000
3. Workflow Build	• Automate invoice matching rules• Set up real-time dashboards	Weeks 2-3	Dev Team	$6,500
4. QA & UAT	• Internal QA checklist• Client user-acceptance test sign-off	Week 4	QA Analyst	$1,800
5. Training & Go-Live	• 2× 1-hour live trainings• Produce quick-start video	Week 5	Customer Success	$1,500
6. Post-Launch Support	• 30-day hyper-care (email + Slack)• Monthly performance report	Week 6	Support Team	$2,000

Total Fixed Investment: $16,000

Payment Milestones: 50 % at contract signature, 30 % at UAT sign-off, 20 % at project completion.

6. Finish With a Strong Call to Action

To end your proposal on a high note, make sure to include a strong call to action (CTA). This is a short statement that you use to try and direct the potential client on what to do next. You could try and get them to schedule a meeting, reach out to you via email with questions, or even sign the proposal if they agree with the terms laid out.

To write an effective CTA, make sure to avoid using vague or weak terms and use action-oriented language to try to ease the client into your desired outcome. For even better results, make it as easy as possible for the client to take the next step. Ensure it’s clear and concise, and add the CTA in a place where the reader is sure to see it.

Some real-world examples of calls to action that can generate results include:

• Get Started Today
• Request a Demo
• Make an Appointment
• Get a Personalized Quote
• Talk to an Expert Today

7. Format Your Business Proposal

While the details are important, so is the business proposal format. When putting together your proposal, ensure it looks professional and that each page is easy to read, with headings and subheadings for skimming.

Make sure it’s organized correctly, too, complete with a title page, executive summary, problem statement, and so on. The proposal should flow smoothly, avoiding abrupt shifts between ideas, and be easy to follow, especially for those unfamiliar with your company or solution. 

8. Add Engaging Graphics

To spice up your proposal and make it more interesting to read, consider adding some engaging graphics. This could be a fun infographic to display information instead of using long paragraphs, a chart that outlines your timeline for implementation, or a graph that highlights just how much your solution may help the prospective client.

All of these help the reader stay engaged throughout your proposal and reduce the chance of them getting bored or distracted. In addition to infographics, you can incorporate your company’s branding elements, such as your logo or colors, to enhance brand awareness and recognition.

9. Proofread and Edit Your Business Proposal

Once the details are written, the proposal is formatted, and any graphics or images are added, go through your proposal with a fine-toothed comb. You should proofread every section to make sure it all makes sense and that there are no problems.

Even something as small as a single spelling error or grammatical issue may be all it takes to ruin a proposal and make your business look unprofessional in the eyes of a potential customer.

In addition to personally editing and reading over the proposal, consider having others within your organization read it. Four, six, eight, or more eyes are always better than two, and sometimes others may catch things that you miss or gloss over.

This editing may take some time, depending on how long your proposal is, but the work is certainly worth it to ensure everything is flawless.

10. Date & Signatures

Lastly, you’ll want to add the date and spaces for signatures at the end of your proposal. The date ensures the potential customer knows when you sent the proposal, and the signature fields make the proposal formal and legally binding.

Without signatures in place to seal the deal, there’s no way for a potential customer to legally agree to your proposal, even if they like it. As a result, make sure to pre-add your signature to the proposal, with dedicated space for potential clients to sign as well.

Thankfully, using digital signature solutions makes it easy to get signatures from anyone you need. In fact, Signaturely gives you numerous options for sending and receiving signatures.

The process for gathering signatures within Signaturely is streamlined, as well:

1. Log in to your Signaturely account, and navigate to the Sign tab on the left sidebar.
2. Choose to either upload a file, import a file, or choose a template. After that, click Prepare Document.

3. Decide whether to sign the document yourself, sign it and send it for others to sign, or just send it to others to sign. Then, simply add the recipients you want to send it to, and send the proposal.

Basic Business Proposal Template: Download for Free

While there are many business proposal templates out there to try, this service proposal template from Signaturely is a solid option:

It’s a great choice, as it’s comprehensive without being too long or confusing to navigate. The basic template includes all important fields you may need, and it even handles some of the writing process for you. The template also has plenty of places to explain your proposed solution in detail, and it is free to download and use.

In addition to this one, Signaturely offers plenty of other templates, including contractor proposals, marketing proposals, software proposals, and website proposals, to name a few.

Types of Business Proposals

If you’re planning on sending out business proposals to attract customers, it’s important to know about the different types of business proposals, as well as when to use each one.

Formally Solicited

A formally solicited business proposal is one that you create in response to a potential customer who has formally requested proposals. While there are several ways clients can formally request proposals, one of the most common is by using a Request for Proposal (RFP). 

An RFP is a document that companies may put out publicly to gather bids and proposals from various providers.

Informally Solicited

An informally solicited proposal is one that you submit in response to an informal request from a company. Instead of sending out an official notice like an RFP, these companies may informally solicit proposals through phone calls, meetings, social media conversations, or emails.

You’ll generally use these when a company has shown an interest in a product or service similar to what you offer, even if they haven’t sent out a formal request.

Unsolicited

Lastly, there are unsolicited business proposals. These are essentially when you cold pitch a company to gauge their interest in your product or service, without any request from them. An unsolicited proposal is often more general than the previous two types; rather than focusing on a specific company’s needs,  it focuses on the benefits your services provide and how they’re broadly applicable.

Tips for Writing a Business Proposal That Gets Noticed

While creating and sending a business proposal is one thing, having it lead to a sale or partnership is another. To increase your chances of writing a business proposal that gets you noticed, keep these tips in mind.

Use Data & Social Proof

Back up your claims with data. Include numbers or stats about how helpful your solution has been in the past. This may include the amount of money your solution has saved another business, the amount of manual work it has reduced, or how it has helped reduce errors.

This is as easy as writing a simple statement like, “Our solution helped XYZ company save $5,000 monthly,” or, “Our tool led to a 75% reduction in processing times for XYZ company.”This makes a good impression and gives potential clients more confidence and peace of mind about your solution’s efficacy. 

Additionally, consider including testimonials or reviews that you’ve received. Whereas data lends credence to your own claims, endorsements from past customers carry a different, more personal type of quality assurance through social proof.

Explain Your Qualifications

Including your qualifications in the proposal is great for convincing your target that you’re the right solution for them, and that you have the experience and credentials to do the job properly.

Your qualifications could be years in the industry, how many companies you’ve worked with, the specific certifications or awards you’ve received, or anything else that paints you as a trusted expert in the industry.

If you don’t explain why these potential customers should trust you, they have no reason to believe you.

Also, if a qualification isn’t plainly obvious (such as an award that many people may not know about), give context for that piece and why it underscores your credentials.

Include Compelling Imagery

If your entire proposal is just a giant block of text, you’ll likely have your potential customers falling asleep as they try to power through it. To keep them engaged (and awake), use compelling images at certain points in the content.

This could be tables, graphs, infographics, photos of your team, or any other image that adds a little flair and excitement to your proposal.

Of course, you don’t want to overload it with too many images that distract and detract from the meat-and-potatoes of the proposal, but a few cleverly placed graphics or images can do wonders for readability.

Create Pricing Tiers

Another helpful tip is to include pricing tiers in your proposal. This drastically widens your net as you’re able to approach not only large companies with plenty of resources, but also more budget-friendly operations that don’t want to spend as much. 

It also offers much more flexibility for customers and ensures your pricing is simple to understand. Of course, be sure to include the different features that each tier offers, so clients know what to expect if they choose it.

Keep It Short

While a business proposal should feature plenty of details to help clients make an informed decision, it shouldn’t drag on too long. The longer it is, the more challenging it may be for some clients to get through without getting confused, lost, or being overloaded with information.

It should be long enough to highlight your solution and demonstrate the value it provides, but not so long that people need to waste multiple hours of their day trying to get through it.

Have Clear Terms

Having clear terms is one of the key components of a valid contract, so be as clear and concrete as possible about everything you include in the proposal. This ensures everyone fully understands your proposal, that it’s transparent, and that it establishes appropriate expectations for a legally valid contract later.

The more confusing your proposal, the higher the chance that misunderstandings or other disputes will take place.

In some cases, if a proposal is too confusing to follow, a potential customer might not even get through it before getting frustrated and virtually crumpling it up.

\This is also a great tip to keep in mind for any business documents you may be working with.

Highlight Your Brand

If possible, you should make an effort to highlight your brand throughout the proposal. This could be adding your logo on each page, using your company colors within the margins of the proposal, using some images of your team, or adding your tagline/motto where it makes sense.

This adds some credibility to your proposal, builds trust, and differentiates your proposal from the others a potential customer has received. Besides, even if your customers don’t accept your proposal, they’ll now know more about your company and its branding, and may recognize and/or remember you in the future.

Understand Your Audience

Few things are more important for developing an effective business proposal than understanding your audience. The more you know about your audience, the better suited you are to tailor a proposal to their exact needs.

Some key considerations to keep in mind when trying to understand your audience include common pain points, their preferred communication style (in terms of tone and medium), what motivates their decisions, their underlying values, and more.

For example, some companies love using digital workflows and prefer everything to be online, while others are more traditional and prefer in-person meetings or demonstrations.

The more you use language, communication styles, and imagery that resonates with your audience, the more successful your proposals will be.

Politely Follow Up

If you don’t hear back after sending a proposal, it’s a good idea to follow up in case they missed it politely. 

However, people are busy, so don’t follow up the day after you sent the proposal. But if they haven’t gotten back to you after a few days or a week, you may want to reach out.

Provide a concise and clear reminder about the value of your product or service and how it’ll help the customer address their problems. Make sure to stay professional, keep it brief, and add a strong call to action.

Here’s an example follow-up email: 

“Hi John,

I’m following up on the XYZ proposal that was sent to you on May 16th. We just wanted to restate how excited we are for a potential partnership with your company. 

We’re confident our X solution can help you address [pain point] and help you reach your goals. It also offers significant value in [additional benefits/value that your solution provides].

We’re also available to answer any questions you have. We look forward to hearing from you soon!

Boost Any Business Proposal With Signaturely

If you’re looking for a tool to help you take your business proposals to new heights, consider Signaturely. It’s one of the leading pieces of contract management software for small businesses and helps you create templates, send proposals, request signatures, collaborate with your team, and edit documents.

The tool also helps you simplify your contract management process, as you can manage your proposals and other documents, view activity, send reminders, follow up, and more.

If you want to try out Signaturely to see if it’s right for you, make sure to check out the generous free trial to experiment with the tool. Also, don’t hesitate to browse through the dozens of useful templates that Signaturely offers, as well.

FAQs About How to Write a Business Proposal

Interested in learning more about business proposals? If so, don’t hesitate to check out these frequently asked questions, as well as their answers.

Final Thoughts About How to Write a Business Proposal

A high-quality business proposal is a useful tool to help you attract new clients and grow your company. By following the steps and tips included in this guide, you can ensure you’re able to create a business proposal with a solid chance of generating positive results.