How to Write a Business Proposal That Closes Deals

• Who Are the Main Decision Makers? Who’ll actually be making the purchasing decision? Tailor the proposal to their specific titles, objectives, and responsibilities.
• What Is Your Prospect’s Main Problem? Find the main issue that the prospect needs you to solve. Learn about the costs of the problem, as well.
• Have They Failed to Solve This Problem Before? What did they try? Why didn’t it work? Craft a proposal that explains how your solution will work better than the last.
• What Are Your Prospect’s Goals? Are there specific metrics they want to hit or market opportunities they want to seize? Show them how your solution will help them do it.
• Does Your Prospect Have a Budget? Ask if they have a specific budget in mind. This will help you propose a solution to them that is financially feasible.
• By What Date Do They Need the Solution Implemented? Do they need this project done by a certain date? And when do they need to see the desired results?
• Are They Looking at Any of Your Competitors? If you know the other businesses they’re evaluating, place messaging in your proposal that brings up features and benefits that differentiate you from those competitors.

As you ask your prospect these questions, write or type their answers. After the call, it’s best to transfer that information into a CRM system under the prospect’s account, where you can access it as you craft your proposal.

The mission of this proposal is to show {Client Name} how they can solve the problem of generating too many unqualified leads that waste their sales team’s time. We will solve it using our lead scoring software, which will automatically assign points to leads, track their scores, and ensure that only leads above a certain score are passed to sales. This will increase {Client Name}’s close rate, job satisfaction amongst their salespeople, and revenue.

We’re perfectly equipped to do this because unlike our competitors, we use AI predictive analytics. If I close this deal, I’ll earn $X.

Writing a full business proposal can sometimes be a bit of a slog. Writer’s block comes in, and you might forget the “why” behind this endeavor. So you need those jolting reminders that you in fact are the perfect business to help this particular prospect, and that you’re close to getting a nice commission after closing the deal.

• Who: Who will be involved in the project? Who’ll do the work or implement the solution? Who’ll oversee the project? Who’ll answer the customer’s questions if there’s an issue?
• What: What materials and resources are needed to complete the project? What resources does the customer already have? What are the deliverables the customer will receive, and what will it cost them? What are the customer’s expectations?
• When: When will the project start? When will it end? When will you reach your milestones? When will you get paid?
• Where: Where will you be working? Where will the materials come from? Where will the work be delivered?
• How: How long will each project milestone take, and how about the whole project? How will you communicate with the client? How will the work be split up among team members? How will you ensure client satisfaction?

These answers will make up a lot of the content in your business proposal. So refer to this bulleted outline as you write. In the actual proposal, though, it won’t directly match this list. Some of the answers you’ve found like “where you’ll be working” or “what materials are needed” will help you determine a price. Others will be present in the proposal, typically falling under sections like timeline, deliverables, or terms and conditions.

For example, a business might use a projected timeline table to express when the main deliverables (e.g., SEO audit, physical product) will be received or the main milestones (e.g., first class, full access to SaaS solution) will be hit, as done in this table below from our free template. This helps the prospect visualize and understand the timeframe of the project, and allows them to assess whether it works for them.

Template projected timeline

Meanwhile, a terms and conditions section that deals with the legal aspects of the project is often used to outline exactly what you’ll provide the prospect, how you’ll be paid, and by when. This agreement, which should also be in the contract, ensures you don’t fall into scope creep — when your prospect asks you to do something out of the scope of agreed work. If during your relationship they ever ask for a task that feels out of scope, refer them to this document.

Template terms & conditions

• Labor: The number of hours of human labor it will take to complete the project or, as in SaaS solutions, manage it until the contract expires, and how much each hour costs.
• Materials: The cost of the resources needed to offer the products or carry out the service. Take into account costs like paintbrushes even if you already own them.
• Transportation: Consider costs like gas or public transportation if your project requires it.
• Vendors: The cost of external services that you hire to help you complete your project.
• Facilities: The cost of renting or using facilities to create your product or deliver your service. Take into account utilities that come with working from these locations.
• Technology: Costs of hardware (e.g., computers) and software (e.g., web hosting).
• Contingency Costs: Estimated costs to cover any potential project risks. Learn how to calculate your contingency costs in Project Control Academy’s article.

Typically, the category that’ll be the majority of your total cost is the labor hours (first bullet above) needed to complete the work. So, it’s important to get this estimate right. The last thing you want to do is underestimate how long a job will take and then end up losing money. To avoid this, multiply your first estimate by 1.5 to account for any mishaps or roadblocks that pop up during the project.

Lastly, if applicable, determine your fee and add it to the final price or bake it into the line item costs. The finished pricing should go into a pricing table in your business proposal like the one below from our template:

Template pricing

• Cover Page: This is the first page of the proposal. It need not be flashy, but it should contain the critical details, including your company name and the name of the recipient.
• Executive Summary: The executive summary serves as a summary of the proposal as well as a sales page that gets them excited to keep reading. Write about the main problem you’ll solve for the prospect, how you’ll do it, and the benefits they’ll receive.
• Statement of Problem: Name the main problem your prospect wants to overcome. Also, write the associated costs of letting it go unsolved, like missed opportunities, low team morale, wasted time, and/or financial costs.
• Proposed Solution: Discuss your approach and how you plan to solve the problem. Highlight your most relevant features or services and the benefits they offer.
• Qualifications: Write about any relevant experiences, credentials, or rewards that demonstrate you’re the right business for the job.
• Pricing and Timeline: Use a pricing table to show the subtotals and the total cost. Include discounts, fees, and taxes in the total price. Also, try naming it an “investment” page so the prospect thinks of your solution as a value-add rather than a cost.
• Terms and Conditions: Articulate what deliverables you’ll give to the customer, as well as how much and when they’ll pay for it. Also, outline any rules you want them to follow.
• Next Steps: Make your call-to-action. This is usually for them to accept the proposal or sign the attached contract and begin payment and onboarding.

As for length, Proposify did an audit of over 260k sales proposals to find the answer. The average page count across all proposals was 13, while the average of all winning proposals was 11. This reveals that shorter sales proposals on average do better. This trend was true for the number of sections, as well (an average of eight, or seven for winners). Keep in mind that some sections take up more than one page.

How long your proposal is depends on the information your prospect needs to make their buying decision. More complex products and services generally require more words and sections to get key points across. But, as a rule, try to convey your information as concisely as possible. A shorter read means less room for the prospect to become overwhelmed or confused. In some cases, even a one-page proposal is best.

• Keep Your Sentences on the Shorter Side: Split up run-on sentences. Short sentences will keep up the reader’s momentum. Reduce word count by finding strong words to replace lengthy phrases. Use “to” for “in order to” or “if” for “in the event of.”
• Make Sure Your Proposal Is Professional: Make sure the professionalism of your proposal reflects that of the prospect. To punch up the professional language, substitute multiple weaker words for a more sophisticated one (e.g., “very boring” for “mundane”).
• Check for Flow Between Sentences: Ensure it reads well. Check to see if you find yourself mentally stumbling through the words or getting stuck. To improve flow, use transition words like “however” or “therefore” between sentences or paragraphs.
• Replace Industry Jargon: Your buyer might not be an expert in the technicalities of what you do. Keep your language simple.

A well-written proposal will also act as an expression of the future work you’ll provide for the prospect. If they see that you took the time to write a clear and professional proposal, they’ll expect that the product or service they’re considering buying will be of a similar quality.

1. Fill Out Your Business Headings: At the top of the letter, list your business name and contact information, as well as your prospect's so they understand that the letter is for them.
2. Craft a Compelling Introduction: Start the letter with an intro that includes the prospect's name, the date you last connected, the value proposition you discussed, the number of years you've been in the industry, their business type, and a key benefit of working with you.
3. Clearly State the Purpose of Your Proposal: List their main pain point, basic details about your product or service, three key benefits they'll experience, and any other key information they should know.
4. Make Your Call-to-Action: Tell your prospect what they should do after reviewing your proposal, such as planning a follow-up call to discuss the terms.
5. End With a Friendly Outro and Signature: Thank your prospect for their time, and restate your confidence in your product or service's ability to help them reach their business goals. Finally, sign the letter.

Example business proposal letter

Sometimes, your prospect will have a formal proposal submission process that they outline in their request for proposal (RFP). If this is the case, follow the instructions exactly as stated. Some buyers will ask you to follow specific guidelines as a test of your attention to detail and diligence. If you’re unsure of who should be the recipient, ask your main point of contact.

Depending on the proposed solution and your relationship with the prospect, your proposal can sometimes double as a contract or you can send a separate contract along with the proposal. In this case, your follow-up will involve encouraging them to sign. Consider using electronic signature software to make this easier for them and/or contract management software to see whether they've reviewed the contract so you can understand how and when to ping them again.