The report discusses about what actually business proposals means? What is its type? Why are they important? What are the essentials of business proposals? Is business proposal and business report same thing? How to prepare the business proposal?

1. 1 | P a g e
CHAPTER ONE
INTRODUCTION
1.1 About the report
The students were assigned the group assignment by the faculty member of
Management Skills Development. Our group which consists of four students was
assigned to prepare report on the Business Proposals. The report discusses about what
actually business proposals means? What is its type? Why are they important? What
are the essentials of business proposals? Is business proposal and business report same
thing? How to prepare the business proposal? What are the common misconceptions
about the business proposals?
1.2 Objective
The objectives of preparing this report are as follows:
 The objective is to get theoretical concepts about business proposals.
 To know how to prepare business proposals
 To know why business proposals are so important
 To facilitate group work among the students
1.3 Methodology
There is no use of primary data in the report. The secondary sources of data are used
while preparing the report. The necessary information need is taken from various
books, and websites. All the necessary information is taken after sorting the data. The
members of the group at first gathered the study materials from various sources. After
that, they sat together to discuss on the topic. After days of discussion and research,
this report had been prepared.

2. 2 | P a g e
1.4 Limitation
Preparing report about busiess proposal was a group effort. Everybody contributed
their parts in the good manner. It was not an easy task to prepare the report on
business proposals. There was always difficulty in finding needed information. The
found information was also subject to credibility. However, we were able to overcome
those difficulties and prepared the report.

3. 3 | P a g e
CHAPTER TWO
BUSINESS PROPOSALS
2.1 Meaning of business proposals
A business proposal is a written proposal presented from a vendor that is intended to
elicit business from a prospective buyer. It differs from a business plan, which is
primarily constructed to obtain start-up capital by detailing the organization and
operational aspects of the business to demonstrate its profit potential. A business
proposal is also unique because it contains much more than figures and statistics
represented by pie charts and graphs. In fact, the former involves proposal writing,
which is designed to identify and target a specific market and solidly demonstrate
how the bidder can deliver custom solutions to the needs of buyers within that market.
Business proposals vary in scale and intended audience. For instance, a small
business may direct a limited number of proposals in batch to larger companies in the
hope of establishing new lines of business. On the other hand, a company may draft a
business proposal in response to an invitation to bid on a specific project made public
by a private company or government agency.
2.2 Types of business proposals
There are three types of business proposals:
1) Unsolicited Proposal
2) Solicited Proposal
3) Informal Solicited Proposal
Unsolicited Proposal
An unsolicited business proposal can be thought of as collateral marketing material,
such as a brochure. They are largely broad spectrum in that they don’t address a
particular company by name or attempt to close a sale. Instead, this kind of informal
business proposal is created to introduce a product or service to potential customers

4. 4 | P a g e
through direct mail distribution, by leaving the material behind after a “cold” sale call,
or making printed information available at trade shows.
Solicited proposal
A solicited business proposal is quite different and much more detailed. As previously
mentioned, a company or government agency may publish a request for bid proposals
on a certain project, also known as a Request for Proposal (RFP) or an Invitation for
Bid (IFB). Since the project is usually offered to multiple candidates simultaneously,
the business proposal submitted by the winning bidder will generally meet the specific
requirements of the project but at the lowest price.
Informal solicitedproposal
There is yet a third kind of business proposal, however, and that is an informal
solicited proposal. While this is similar to a solicited business proposal in terms of
being an invitation to bid, it is generally extended to only one vendor at a time. In
fact, this opportunity most often stems from a vendor and potential customer having
crossed paths at a convention or trade show. Another key difference between an
informally solicited proposal and a solicited proposal is there are no specific
requirements for the vendor to satisfy in the written business proposal. It is merely
solicited by an expressed interest in the product or service that the vendor has to offer
and an informal request for more information.
2.3 Elements of business proposal
Business proposals are sometimes lumped in the same category as competitive bids.
But other analysts point out that proposals—and especially unsolicited proposals,
whether aimed at convincing a publisher to publish your new book idea or convincing
an investor to take a look at a potential new business site—are essentially designed to
pique the interest of the prospective client. For this reason, such proposals often do
not get into the nuts and bolts of compensation, time frame, and other matters.
Competitive bids, on the other hand, provide detailed information on all aspects of the
proposed business arrangement.

5. 5 | P a g e
Standard elements of basic business proposals include the following (although,
depending on the degree of formality of the proposal, not all parts are always
necessary):
Cover Letter
This should provide an over-view of your proposal as well as an introduction, if
necessary, in which you include a brief synopsis of your company's background and
qualifications.
Title Page
This part typically includes your name and the name of your company, the name of
the person or company to whom the proposal is submitted, and the date of submission.
"Some titles are one line long, occasionally two," commented Herta A. Murphy and
Herbert W. Hildebrandt in Effective Business Communications. "Some even include a
colon—followed by words to clarify the thought. Clarity and comprehensiveness are
dual criteria for a good proposal title."
Table of Contents
While usually not necessary for shorter proposals, these are sometimes used for big,
formal proposals (such as request for proposals).
Executive Summary
This is the portion of the proposal where you make your case for a business
arrangement. "This is the most important part of your proposal," said Sant. "It's the
section that will be read by every decision maker. Make sure it's easy to read. Avoid
technical jargon and technical details. Focus on organizational issues and benefits,
and keep it short."

6. 6 | P a g e
Body/Procedures Section
This is the section in which you place technical details and explanations, as well as
information on price, implementation schedules, logistical and support issues,
documentation, and training. Legal experts note that if the proposal is accepted, it can
become a legally binding document. For this reason, and because of the length of time
that is usually necessary to produce this section, writers of unsolicited proposals may
wish to hold off on preparing this section unless the targeted person or company
expresses interest in the basic proposal.
2.4 Importance of Business Proposals
The major reasons why business proposals are written is in order to propose a product
or service to a prospective customer or buyer.
 Business proposals are written in order to offer solutions to the problems faced
by prospective customers.
 Business proposals enable businesses to sell their products or services. A
business proposal is one of the most effective tools that can be used by a
person or business to sell a product or services.
 Business proposals help businesses to compete without even needing to send
marketers or representatives to physically go to the prospective customers to
pitch or to try and sell their products or services. The business proposal, if
written very well would on its own be able to do all the promotion and selling.
 Business proposals help buyers to get the exact products or services that they
want.
2.5 Advantages of Business Proposal
The advantages of the business proposal are as follows:

7. 7 | P a g e
Medium for creating business process more professionally organized.
Now in days every business organizations are professionally and formally sound. So
any deal, meeting, negotiation and etc. happens in a formal and professional way. So
this business proposal a document is very helpful to deal with other as formal, so its
looks like as professional.
Identify problems
In a business organization it may happen an owner or top level persons cannot know
about problems of other levels or different departments. So while they are proposing
other with the help of proposal that time they can know what are the problems in their
organization? Problems like fund raising, no. of employment and etc.
Project benefits
A business proposal shows benefits of the project, firm and etc in advance. Because
each and every fact detail is mentioned in a proposal about the organization and how
the need will be fulfilled by the seller. So that a purchaser can know all project
benefits with the help of this business proposal.
Simplified
As we earlier in a proposal each and every details are mentioned so it is simple for
understanding. There is no chance of misunderstanding.
Reference for every party involved in the partnership
It may happen, when the time of proposal partner cannot come in a partnership firm
due to some reason then in future he/she can see it. Because proposals are always in
written form.
Project budget
In a proposal each and every detailed information is mentioned so both the parties can
know what will be the cost and budget of project. So there will be no problem occurs
of raising fund. Because in advance they can know about it.

8. 8 | P a g e
Assures the Reader / Investor
Now days an organizations are publishing this business proposal in their annual
reports, so an investor, reader and etc can know about the firm’s activity, profitability
of the project and etc. from these information an investor can get idea of investment in
that particular organization.
Disadvantages of Business Proposal
The disadvantages of Business proposals are as follows:
Risk of rejection
As future is uncertain so it may happen purchaser may not accept the proposal and
reject the proposal. So it is a risky for seller. Due to any reason a purchaser will reject
the proposal.
Uncertainty with clients
Sometimes it may happen a purchaser may not understand the proposal or he/she is
minor so it may happen proposal cannot be accepted by the purchaser. So it is
disadvantage of a business proposal.
Hypothetical figures
While proposing a seller cannot assume hypothetical figures. In a proposal all the
present figures are considered. So it is not good for the seller. If seller mentioned
hypothetical figures so it will be a beneficial for him/her.
Future oriented approach
As earlier discussed a business proposal are future oriented and future is uncertain, so
it may happen a proposal can be reject by the purchaser in a future.
Decision based on current situation
Here in a proposal decision is based on current situation. If an organization’s situation
is not good presently so seller cannot take a hypothetical figure into consideration. So
that will create bad effect on the organization’s goodwill.

9. 9 | P a g e
CHAPTER THREE
PREPARING BUSINESS PLAN
3.1 Consideration for preparing business plan
There are certain things which need to be considered while preparing the business
proposal. Three main steps you have to consider for preparing business plan.
Step one: Prewriting
As in letter and report writing, the prewriting stage for proposals involves posing key
questions that your finished work must answer. Asking these questions can help you
plan your writing.
1. What is the purpose of your proposal- beyond selling your ideas? Why
are you writing it? What does the client need to know? For example, if the
client asked for a proposal on implementing an affirmative action program,
you would tailor your purpose toward that end. In a sentence or two, state the
purpose of the report.
2. Who is the audience and what are their needs and motivations? Effective
persuasion depends on your ability to identify and appeal to the recipient’s
needs and motivations. Who are the readers-upper management, the board of
directors, and your immediate supervisor? Research your audience so that you
knee how to appeal to their self interest. The client or other readers should
understand clearly how they will benefit from your efforts.
3. How do you catch the readers’ attention? Once you have identified their
needs , capture the readers attention by addressing their primary concern
first.do readers want to save time and money? Increase profits? Change
procedures? Are they motivated by prestige or convenience?
4. What results or outcomes would the reader like to have? A proposal asks
for some change, perhaps a new policy or procedure, or the solution to a
problem. Your job is to identify what outcomes the readers would like and

10. 10 | P a g e
then consider other outcomes the reader may have overlooked. You should
also anticipate objections to your proposal and be prepared to counter them.
5. What information or background research will you need in writing the
proposal? Once you have determined the purpose, audience, and scope, you
are ready to gather data.
Background research. For a client proposal, you will need to research the client’s
needs and problems thoroughly . your information will come from the company’s
management and personnel , its publications, information about the industry in which
it operates, its markets and suppliers, and other historical documents that will give
you a correct picture on company’s current situation.
Estimate the time and cost of the project. Can costs be measured against specific gains
or benefits? For example, in the alternative action proposal, what advantages would
the company gain once the program was operating smoothly? Your proposal should
persuade readers that the time and money will be well spent.
Step Two: Writing
Many companies have a standard format for proposals. If so, it can simplfy the job of
organizing and outlining your document. A standard proposals formats might looks
like the following:
I. background of the situation
II. description of the current problem
III. our approach to the problem
IV. methodology and research
V. expected results
VI. time and cost requirements
Writing the first draft. A standard format can provide headings and subheadings for
your proposals. All the information must support your position. You would want to
put your ideas in the best light, tailored to the specific needs and purposes of the

11. 11 | P a g e
readers. Do not provide the detailed explanations or technical facts unless the reader
asks for it.
Every paragraph and sentence should convey the impression that your ideas and
approach are well-reasoned and appropriate. Remember, your goal is to sell your
ideas.
Step Three: Revising
Review, edit, and revise every part of the proposal. In many instances, thousands even
millions of dollars may hinge on a proposal being accepted or rejected. Check and re-
check all your facts about the client’s situation. Pay attention to the particular choice
of words and tone of the proposal. Thee readers must believe you have appraised their
problems realistically. Have you stated the situation clearly and tactfully. Are your
suggestions for the proposed work tailored to the client’ specific needs?
If your proposal convinces your readers that you have done your research carefully
and clearly understood their problems, you will probably sell your ideas. Ultimately,
the acceptance of a persuasive message depends on the senders’ credibility and the
receivers perception of direct benefits.
After the proposal has been typed in final copy, proofread it carefully. Check for the
errors in grammar and spelling, for careless mistakes that previously escaped your
eye, and for any inconsistencies in format.
What to DO?
 Concentrate on facts
 Research about the company
 Write a title page
 Personalize your proposal
 Indicate a follow-up time
 Emphasize the suitability of your product or services

12. 12 | P a g e
 Use picture, illustrations, photographs and charts
 Use repetition of key points
 Say what is new
 Link paragraphs
 Add credibility
What NOT TO DO?
 Never use jargon
 Do not beat around the bush
 Do not make unsubstantiated claims
 Do not simply send a letter of introduction to a client
 Do not be too fancy
 Do not assume that reader lacks knowledge.
 Do not overdo humor
 Do not use up benefits early
3.2 7 Steps to a Winning Business Proposal
In today's competitive business environment, your ability to write powerful proposals
could mean the life, or death, of your business.
When government agencies and large corporations need to buy products or services
from an outside source, they often release what is called a Request for Proposal
(RFP), a formal document outlining their needs. To bid for the job, you must submit a
proposal, which will explain how your company would meet the client's needs and
should convince the client to hire your company, instead of a competitor.
Don't leave your business's success up to chance. Follow these seven steps to write
winning proposals:
1. Study the Requirements.

13. 13 | P a g e
Writing a winning proposal begins with a clear understanding of the client's
requirements. Read the RFP thoroughly. As you're reading, ask yourself, What are
this company's goals? What is my role in achieving these goals? Is the time frame,
budget and scope of work reasonable? And if we're awarded the contract, does my
company have the time, expertise and resources to complete the project?
Next, decide whether you want to proceed. Preparing this proposal will require a lot
of time and effort in research, analysis of the client's needs and writing, and you may
decide to wait for a better opportunity.
2. Understand the Client.
If you don't understand the client's problem, you certainly can't propose a
methodology that is going to solve the problemThe best way to understand what the
client really needs is to talk with them. Ask people in the organization about their
concerns, their operating policies and their management philosophy. Discover if any
previous attempts have been made to reach the goals outlined in the RFP and why
those earlier solutions didn't work. Ask what they like and dislike about dealing with
consultants like yourself and what criteria they'll be using to evaluate your proposal.
You'll also want to get some general information about the organization and the
industry it's in. Ask questions like these: How long has the company been in business?
Who are their major decision makers? What are their main products or services? How
is this company better or worse than its competitors? What is the company's financial
position?
If you're not able to speak with the organization's employees, do some secondary
research. Visit the library or check with colleagues who may have worked for the
same organization; it's worth the effort. This research may save you from proposing a
tack that has already been tried or is unacceptable to the client for some other reason.
You may also discover some underlying issues that weren't addressed in the RFP and
need to be considered.
3. Develop a Methodology.

14. 14 | P a g e
Once your client's goals are clearly identified, it's time to develop the steps, or
methodology, necessary to reach them. If you're having difficulty with it, use
Wakefield's suggestion of brainstorming sessions.
To ensure that your methodology is practical, analyze its costs and benefits, as well as
the time and resources it will require.
4. Evaluate the Solution.
You may have developed a brilliant methodology, but if it's unacceptable to your
client, you'll need to find an alternative solution. You have to understand the decision
maker's orientation.You have to know precisely what their background is, and how
they look upon this particular project. For example, find out whether the person is
financially oriented or operations oriented.You should then describe the benefits of
your solution in a way that will receive the most favorable evaluation from the
decision maker.
You should also evaluate your solution according to criteria outlined in the RFP. For
example, if your proposal is being evaluated on price and completion time, a lengthy,
expensive solution is unlikely to win your company the contract.
5. Outshine Your Competitors.
Don't forget that a proposal is a sales document, designed to persuade the client to
hire your company instead of a competitor. So make certain your proposal reinforces
your company's strengths and addresses any potential reservations the client may have
about hiring you.
To properly present your strengths, you must know how you stack up against the
competition. If you're lucky, the client will divulge your competitors' names, describe
what they're like to work with and offer an opinion of your competitor's abilities.
6. Write the Proposal.
Now that you've completed the first five steps, most of the work is done. All that's left
is assembling the information into a proposal format, so we'll be referring back to the
work you completed in the previous steps.

15. 15 | P a g e
If the RFP specifies the format of your proposal, follow that exactly. If no format is
specified, Freed recommends the following headings be used:
A. Current Situation. Explain the background or problem that motivated the
organization to issue an RFP. This section will be compiled from the background
information outlined in the RFP, as well as from the research you performed in Step 2
B. Goals. Clearly explain the goals of your proposal. You formulated these in Step 2,
based on the RFP and your understanding of the organization and their problems.
C. Proposed Methodology. Describe each of the recommended steps, developed in
Step 3, that will lead the organization to meeting their goals.
D. Time and cost. Thoroughly explain the time and cost requirements for each step in
the methodology, based on your calculations from Step 3. This section should also
specify how you will be billing the client, and when payment will be expected.
E. Qualifications. Fully describe why yours is the best company for this job. This
information will be based on your competitive strengths and on the proposal's
evaluation criteria, which you developed in Step 5.
F. Benefits. Discuss the many benefits the client will receive by implementing your
recommendations. This section is based on the benefits identified in Step 4.
7. Apply the Finishing Touches.
Review the proposal carefully to ensure it completely fulfills the requirements set out
in the RFP. Make sure the information is arranged logically and that it fully addresses
each of the decision maker's concerns. Finally, have someone you trust proofread the
proposal to catch spelling and grammatical errors.
Many contracts are awarded solely on the quality of the proposal, so don't let sloppy
writing or careless mistakes ruin an otherwise terrific proposal.
3.3 Choice of format of Business proposal
There are two approaches to the format of proposal. Sometimes a letter, albeit maybe
a longish one, is entirely appropriate. Indeed, sometimes doing more than this can
overstate a case and put the recipient off. It is seen as over-engineering.

16. 16 | P a g e
Alternatively what is necessary is much more like a report, though with a persuasive
bent. Consider both in turn, and when and why each may be appropriate.
Letter proposals
This is simply what the name suggests. It starts with a first sheet set out like a letter,
which begins “Dear…”. It may be several pages long, with a number of subheadings,
but it is essentially less formal than a report-style proposal.
 This style is appropriate when:
 a more detailed proposal is not needed, because there would be insufficient
content:
 the objective is only to summarise discussions that have taken place;
 there are no outstanding issues(unsolved at prior meetings, for instance);
 there is no threat of competition
Formal proposals
This is a report-style document, usually bound in some way and thus more elaborate
and formal.
This style is appropriate when:
 recommendations are complex;
 what is being sold is high in cost;
 there is more than one customer, a committee, a recommender and a decision
maker acting together, or some other combination of people who need to
confer and will thus see exactly the same thing;
 when there are chanes of competitors submitting the proposals.
In many businesses it is common for there to be multiple decision makers or
influencers. Where this is even suspected it is wise always to ask how many copies of
a proposal are required.

17. 17 | P a g e
3.4 Format of Formal Proposal
Title Page:
Title of the proposal should be as short as and as informative as possible.Reference
number for the proposal is also required.
Name of the recipient and date of submission are also included.
Signature of the project director and responsible administrator(s) in the proposer’s
institution or company
Executive Summary
The executive summary is the place for you to summarize all the key points in the
proposal. If you had to email, fax or mail a single section to a customer, this would be
it. Take each section and write a very concise summary pointing out the key points.
Many times, this is the section the customer goes to first for a quick look. Keep it
simple and easy to follow for this reason.
Proposal Introduction
Your introduction briefly sets the stage for the remainder of the proposal. A useful
introduction will provide the reader with a basic framework for the proposal. If
warranted, it will also briefly explain your company history, the business relationship
of the two companies, any industry trends or innovations that impact the
recommendations, and the impact your suggestions will have when the
recommendations are implemented.
Make the introduction interesting enough so the person reading it will want to
continue with your proposal. If your company offers any unique experiences or
qualifications, this section would be the place to include them. Keep it brief and to the
point.
Current vs. Proposed
The compare and contrast approach is very effective and should be included when
writing a business proposal. It is very easy to understand for most people and is a

18. 18 | P a g e
common method in proposal designs. Very simply, it shows how the current situation
can be improved by the proposed solutions.
For example, if monthly operating costs are the overriding problem in the current
situation for the customer, then identify each of the monthly operating costs by line
item. Present the information in an easy to follow and logical format. Highlight or
zero in on the items that have been shown by the customer to be the most pressing.
When you contrast your solutions, these will be most important points in the proposal.
Outline your proposed solutions in basically the same format. Again, make it easy to
follow and understand. If Item A is listed as a current operating expense, and is a key
item to improve in your proposal, then your proposed solution needs to be in contrast
to Item A on the same line. Don’t make the compare and contrast approach any more
complicated than it needs to be.
Description of products or services offered
Details of the equipment or raw materials required for the project. This type of
information are required for buyer to understand the product.
Many products have different characteristics so each of this can’t be tell in front of
buyer to seller.
Charts and graphs as appropriate
The necessary charts and graphs should be added to the business proposal.
Time frame for delivery
Every seller have to keep in mind the completion dates and key milestones for
products. So one advantage is that buyer can easily understand what is the maximum
time has to take for buy or order for this product.
After the time of the order seller have to note periodical delivery of progress reports.
Base completion dates and milestones will be allotted to the groups on the project.
Information about limitations or exclusions
Seller gives all statement of limitation of products in this segment. Because of that
buyer can easily understand limitation of this product or proposal.

19. 19 | P a g e
If any mismatch occurs in this segment then many others issues are created from both
sides and that is resulted in rejection of proposal.
Detailed pricing information
The cost summary is pretty straightforward. You simply show the corresponding costs
associated with the proposal. Some of this information may have been part of your
current vs. proposed section.
An often overlooked part of this section is the use of return on investment (ROI). If
your cost recommendations can also be shown from a ROI perspective, then by all
means, include them for the customer.
Keep your ROI analysis as simple as possible, recognizing that not everyone fully
understands it. ROI creates value for the customer, whereas focusing only on cost,
does not. The tendency for most proposals is to look only at the bottom-line cost
expenditures. Generally speaking, the greater the value you derive through your ROI
analysis, the greater the acceptance of your proposal.
This section is also the best place to outline any cost justifications that you feel are
needed. If some costs appear to be new to the customer, or very different from what
they’re experiencing in their current situation, then provide some written explanations
for the customer to help them better understand what they are reading.
Recommendations
This section is where you tell the customer, in very convincing language, to purchase
your products and services. This is why you a write business proposal. Be very clear
in what you write and what you suggest. You don’t want any confusion or
misinterpretation.
Included would be topics such as; suggestions around dollar amounts, timetables,
which products and services to purchase, milestones, what to spend, when to spend it,
who is involved, how the implementation will work, any follow-up strategies, initial
paperwork, and contracts or agreements.

20. 20 | P a g e
Also consider the “what’s in it for me?” mindset when crafting your
recommendations. If you can clearly answer this question for the customer than you
have a potentially winning proposal.
If there are several possibilities for the customer to consider, then provide those ideas.
Using an alternative choice close in your recommendations can be very effective in
gaining some level of business.

21. 21 | P a g e
CHAPTER FOUR
Misconception about business proposal
There is common tendency to think business proposal and business plan as the same
thing. But they are two different things. Business plans reflect the long term plan of a
business. It reflects the way a business plans to establish itself over a longer period of
time. Business proposals on the other hand are not meant for longer term. They are an
intention to work out a business venture with another business. The intended audience
of both the documents also varies significantly. The business plan is intended for the
management as well as the lenders and many others. The business proposal is
however a document that is only intended for the other business with whom a
business wishes to enter into a joint venture with. Then there is a difference of need.
Business plans are needed for establishing a guideline for standing up a business from
scrap. It usually defines the directions the business has to follow step wise in order to
achieve that. Business proposals are really not for that purpose. They are short term
and only needed to communicate a business’s intentions to work with another
business. Business plans often help to raise the required capital needed for your
venture. Business proposals don’t do this sort of work.
Also there is necessary to be clear about what exactly is meant by the two words
‘proposal’ and ‘quotation’. Although they are sometimes used in a way that appears
similar, in sales terms they each imply something very different. Proposals have to
explain and justify what they suggest. They may make recommendations, they
certainly assume that their job is to persuade. Whereas, quotations, which are much
simpler documents, simply set out a- usually requested-option, saying if it is available
and what it costs. They assume, rightly or wrongly, that the sales job is done and that
persuasion is not necessary. Many quotations should have more, sometimes much
more, of the proposal about them.

22. 22 | P a g e
Bibliography
Books
Patrick Forsyth, How to Write Reports and Proposals,2010, THE SUNDAY
TIMES,120 Pentonville Road, London, p130
Websites
http://www.referenceforbusiness.com/small/Bo-Co/Business-Proposals.html
http://www.smibusinessdirectory.com.my/smisme-editorial/more/more-business-tips/490-
the-winning-elements-of-business-proposals.html
http://www.wikihow.com/Sample/Proposal-for-Cost-Savings
http://proposal.ezinemark.com/what-are-various-types-of-business-proposal-
4f0d346bfa3.html
http://hosbeg.com/importance-of-business-proposals/
http://www.proposalsmartz.com.
http://EzineArticles.com/3233955

23. 23 | P a g e
ANNEX I
February 25, 19__
Mr Bernard R. wright
Wright Heating System, Inc.
1886 north Diversy
Crystal Woods, Illinois 60014
Dear Mr Wright:
Last week, you spoke with Mr Stephen Chutus, our senior consultant, about some of
the organizational problems your firm is experiencing. At that time you asked our
firm to submit a proposal outlining our approach to those problems and including an
estimate of time and expenses. This letter is in response to your request.
OUR UNDERSTANDING OF THE CURRENT SITUATION
Wright Heating systems, Inc. , was founded by Charles Wright in 1935. The company
grew modestly through the 1930s and 1940s and confined its business to the sale of
heating equipment to small companies and private homes.
In 1958, Bernard wright assumed leadership of the company and began diversifying
into office appliances, service contracts and some international sales. By 1965,
company sales had reached $25 million. The number of employees had grown from
32 to over 120, and two branch offices had been opened in New York City and San
Francisco. Over the next 20 years, the company continued to enjoy steady growth
with only two periods of decline during the 1970s oil embargo and sever recession of
the early 1980s.
However, the company has been experiencing organizational problems along with its
growth. Communications among management levels and with support staff are often
poor. Goals and objectives are not communicated clearly throughout the organization.
Sales and service areas overlap in some case, and there is to service which customers.
Quality control is spotty at best, and faulty equipment and appliances have been
turning up in customers’ orders at an alarming rate. Worker moral is poor, and the

24. 24 | P a g e
company has been approached by union organizers within the past month to recruit
union members from among employees in the firm.
In short, the company is experiencing “growing pains” in making the transition from a
small, family –owned concern to a medium sized form with multinational
connections.
OUR APPROCH TO THE PROBLEM
Wright Heating Systems is on the verge of entering a new phase in its development.
We have assisted many firms in making the change from a small company to a large
concern. We can offer consulting services on reorganizing your management structure
without losing key individuals or disrupting the flow of the business. These services
including setting up new office systems, accounting procedures, and distribution
network to help you manage your business more effectively. We will also provide
training for support staff to involve them in the changes that need to be made.
We can help you devise forecasting and planning strategies that will define your goals
and develop plans to achieve them. You will be able to see where you are headed and
what the greatest growth areas are likely to be. These strategies, together with your
new management structure, will ensure that goals are communicated clearly to all
management and support staff levels.
ESTIMATED YIME AND EXPENSES
On the basis of our past experiences with companies similar to yours, we estimate that
the transition period will take about six months to complete. At the end of that time,
you and your management staff will have an organizational structure with clearly
defined functional areas and responsibilities and well-designed channels of
communication.
We will assign Mr Stephen Chutus as senior consultant in charge of this project and
from a team of consultants from our corporate staff. Mr Chutus has worked with
many of the fortune companies. His most recent project was overseeing the complete
reorganization of Hyatt Industries, a multi-million dollar corporation. The resume of
other proposed team members are included with this proposal.

25. 25 | P a g e
We estimated the cost for the project will range from $ 135000 to $150000. This
would include implementation of recommended changes and follow up visits 3
months and 6 months after completion of the project.
Wright Heating Systems, Inc., has an expellant record in the industry. We would be
pleased to assist your firm in its continued growth, and we appreciate the opportunity
to work with you.
Sincerely yours,
Barbara Tholin
FARBER & THOLIN ASSOCIATES
Enclosures: (5)

26. 26 | P a g e
ANNEX 2
Deiric McCann
Profiles International
5205 Lake Shore Drive
Waco, Texas 76710
Joseph Blayne
CEO
ClientCo Industries
ClientCo Street
ClientCo City
ClientCo State & Zip
Dear Joseph,
It was a pleasure to meet with you again yesterday to talk about how we could work
with Client Co on the development of a solution that would have such a dramatic
impact on the performance of your sales organization. Further to your request when
we met I have kept this proposal to the ‘bare bones’ necessary to outline our
understanding of the requirement and how Profiles would work with you to address it.
Should you require any further information I would be delighted to provide it.
CLI ENTCO’ S CHALLENGE
ClientCo’s sales team has 45 sales professionals – all hired for a specific combination
of education, skills and experience that they share in common, and which should
assure that all are highly successful in their positions. However, sales performance
across this team varies widely – from the highest performers who deliver a
performance against quota of as much as 139% (the top ten range from 111% to 139%
with an average performance of 125%), to the lower performers who deliver as little
as 82% against quota (the bottom seven range from 82% to 99% with an average
performance of just 92%). It is this gap of 57% between the highest and lowest
performers that rightly concerns Client Co. Client Co has the potential to increase
their sales output by a factor of several hundred percent - if they can determine what it
is that makes their top performers so much more productive than their average and
bottom performers, and if they can use that information to raise the performance of
every member of their sales team to the level of their top performers. Such an increase
in sales would come with no increase in numbers of sales personnel, so all such

27. 27 | P a g e
revenue increases would directly impact the bottom line – with an upside potential as
much as several hundred percent of current sales performance.
PROFILES SOLUTION
As discussed, Profile will establish a customized Online Assessment Centre to enable
Client Co to comprehensively assess their sales team. Using the Profile XT we will
assess your entire team and use our unique ‘success pattern’ technology to identify the
particular combination of attributes that make your top performing sales people so
successful. By analyzing the Top Performers we will identify the particular
combination of learning abilities, behavioral/personality characteristics and work
interests/motivations that make these people capable of performance at such a higher
level than their peers. Client Co’s challenge is one that is faced by the sales
management of the organisation on a day-to-day basis, and that challenge will only be
met and addressed effectively by that same team working upon it on a day-to-day
basis. It is clear that any solution proposed must be entirely usable by all members of
the sales management team – there should be no requirement for any sort of
specialised certification or training in order to make use of the solution. A range of
reports are required to meet various aspects of the challenge (hiring, development,
management, succession and career planning etc) and these reports must be presented
in clear, everyday sales language – and require no interpretative input from
psychologists or specially trained individuals. As you saw, the proposed ‘Profiles on
the Web’ (POTW) system provides a wide range of ‘plain English’ reports that will
allow you and your managers to manage every people decision you ever have to make
– but will most particularly help you to:
your current top performers – so that every time you hire you’ll have the ability to
more quickly and effectively identify the candidates who are capable of similar
performance – and screen out those who are not.
of coaching, training and management is required to raise the game of each of your
average or below average performers to the performance level of your top people.
Using this information your management will be able to raise the performance of each
member of their sales tams step by step.
to more effectively manage the succession and career planning activities that you

28. 28 | P a g e
correctly identified are so critical to ‘locking in’ your best people and reducing costly
turnover of top performers It was clear in our meeting that, as the initiative to identify
and acquire a solution to this challenge is not one that formed part of the ClientCo’s
IT Department planning at the outset of this year, no IT resources have been allocated
to support the initiative. For this reason we are delighted to be able to propose a
solution that is entirely web-based: requiring no specialized hardware or software, and
no programming or ongoing support from your IT Department whatever.
BENEFITS OF THE PROPOSED SOLUTION
1. Exceptional Return on Investment. The accompanying Return on Investment
analysis clearly demonstrates that the system will have completely paid for itself by
end of the current year, and will provide a return of investment in excess of 200%
over the year to end 200X.
2. Extremely low entry costs.
The entire POTW solution – from start to finish – will cost Client Co just $XXXX.
This is possible because Client Co’s customized Online Assessment Centre will be
provided at a one-off cost of just $XXX (with an annual hosting charge of just $XX).
Client Co will have an entire online system for about the same cost as a single license
for the office suite software used in Client Co offices.
3. ‘Pay as you use’ model.
The only time Client Co will have any additional cost is when you wish to assess a
new candidate for the first time – at which point the cost per candidate is just $XX –
and, as explained below, once a candidate is in the POTW system Client Co may run
any additional analysis, and produce any additional reports they require at no further
cost.
4. Proven track record with similar organizations.
Profiles have been privileged to work with many of Client Co’s peers in the
pharmaceutical industry; I have attached case studies and testimonials outlining the
success of implementations similar to that proposed to Client Co.
5. Fast implementation – no special training or certification required.
As discussed, busy sales managers do not have time to become assessment experts.
Managers will learn how to effectively use the system in just one half-day training
session – this is uniquely possible with Profiles’ offerings as all of the results

29. 29 | P a g e
interpretation is undertaken by the expert software at the heart of POTW – producing
manager usable reports presented in ‘real English’.
6. Countrywide support.
Profiles International supports a network of 700 Strategic Business Partners
nationwide, and a centralized telephone and online support team, that can provide
Client Co managers with support anywhere they require it – and at any time.
7. Inexpensive to take nationwide – and global.
The POTW system provides Client Co with 15 ‘sub-sites’ at the outset. Each of these
sub-sites will meet the needs of a Client Co branch nationwide. After that initial 15
sites have been used Client Co can add additional sites for a one-off cost of just $XX
– and there is no limit on the number of additional sites Client Co can add to their
system. This will make expanding this system nationwide extremely inexpensive – it
will also make expansion of the system to meet global requirements similarly
inexpensive. Coupled with Profiles support for 50+ languages in 106 countries this
initial implementation will be extremely strategically significant for Client Co.
COSTS
Mindful of your explanation of the current budget situation we are proposing an initial
implementation of the system at less than $XXXX, and providing the facility to assess
candidates on an ongoing basis for just $XX – and to add additional Client Co
branches nation- or world-wide for just $XX.
As discussed, there are three cost elements in the implementation:
1. Web-based Assessment Centre. As discussed, we will set up a private Online
Assessment Centre (POTW) that will allow Client Co to fully administer all aspects
of candidate assessment completely independently. Set up and hosting of the
assessment centre costs an annual $XXXX. Your assessment centre will provide you
with the ability to score candidates results, archive these results in a database, create
job profiles, and produce the reports for hiring, retention, coaching & training and
career / succession planning. This software will allow you to derive benefit from the
information gathered in candidate assessments ad infinitum.
2. Implementation, Setup & Training. This costs a once-off $XXX (one day it
total). Profiles will train an administrator (half-day), co-ordinate the assessment of the
initial candidates and produce the required profiles from their results. We will also
oversee production of a full range of useful reports to ensure that you derive
immediate benefit from the initial assessments used to establish the first benchmarks.

30. 30 | P a g e
Once the profiles have been established we will spend one half-day training sales
management in how to make best use of the reports from the system. When this phase
is complete the system will be completed implemented, with all of your team’s results
on the system, all of your benchmarks developed, and your entire ready to use the
system effectively.
3. Per Candidate Cost. Every time a candidate is entered into the system for the first
time, the software levies a nominal charge for scoring their results. Once their results
are in the system there are no further costs associated with producing any of the
system’s reports on this candidate into the future. So, once you have assessed any
individual for a project you will be able to use the system to assess their future
suitability for other projects into the future – at no additional cost. The cost per
candidate is on a sliding scale based on the quantity purchased at any one time:
– 10 $XXX
– 24 $XXX
– 49 $XXX
– 99 €XXX
Therefore the total cost of a project that profiled XX people would be:
Total: $XXXX*
* Please note that the price breaks above would make it more economical for you to
purchase 100 assessments for €XXXXX).
Profiles are completely committed to dramatically increasing the sales results in the
Client Co team by several hundred percent in a matter of a few months. Assuming
Client Co make a decision to proceed by May 11th the solution can be fully
implemented by July 1st, with the first concrete results ready to report well in advance
of the Client Co Annual Conference planned for Q4. Thank you again for the
opportunity to work with you on what we are certain will be a conspicuously
successful partnership.
Sincerely,
Deiric McCann