
Do not get a business proposal mixed up with a business plan. A business plan is created to help run your company. It is a statement of your business’s goals and plans, along with a financial plan and an executive summary. A business proposal, however, is a document between a buyer and a seller, usually between two different companies.

The more responsive a proposal is, the more it is considered as successful. Being responsive means knowing the client, being familiar with the buyer’s needs, and thoroughly researching how exactly to meet those needs.

There are three main types of business proposals. Formally solicited, informally solicited, and unsolicited. Each has a specific way of going about things. There are quite a few elements to a business proposal, such as a cover letter, title page, summary, approach, method, schedule, cost proposal, etc.