BUSINESS PROPOSAL Pro-forth, poser-to place /put

Any properly conceived idea, service, project, plan whether theoretical or practical in nature, put forward for action or implementation is a proposal

OBJECTIVE
To buy a service
To convince the reader of the existence of a

situation and to take a course of action To convince your department of your need for a new technology To provide you with funds (loan/grant)

TYPES OF PROPOSALS
Internal and External-according to the target

audience
Solicited and unsolicited-according to the source Business Proposal, Research Proposal, Technical

Proposal- according to contents and objectives of the proposal

Internal Proposal
Written to someone within your organization ex: The chairman of a company asks the personnel manager to develop a training program for the new recruits No need to include qualifications/bulky information Can be submitted in the form of manuscript/memo. Content of an internal memo comprises of the problem, suggested solution, the financial effect and how the suggested plan is better than the existing one

External Proposal
Written from one separate, independent

organization or individual to another such identity . Recipients could be existing or prospective clients
ex: An independent consultant can propose to do a project for another firm / An advertising agency may propose to design a scheme for a nationwide ad campaign for a bank

Differences between Internal and External Proposals

Internal
Are the basis on

External
Are prepared for

which decisions are taken within the organization Are the basis on which contracts could be drawn up Are not competing with other proposals Not a legal binding

recipients outside the organization

Are meant for internal

decision making May often compete for business If accepted, external proposal become legal binding

Solicited Proposal
Response to some invitation by other companies

Companies invite proposals from goods/service

providers to compete for the business. Such invitations are called Request for Proposals (RFP) RFP contains details about the project, its nature, specifications, a time frame and an approximate cost RFPs are sent to various reputed companies and are also published in newspapers and magazines As a response to such invitations, business proposals are made

Unsolicited Proposal
Generally promotional in nature When you initiate a proposal yourself Generally persuasive in nature and claim to solve an

existing problem in a company Form of detailed advertisement/brochure that introduces the company to prospective customers showing variety of services it could provide , range of expertise it possesses and possibly earlier clientele Can be internal/external Ex: you perceive that some changes in the hiring policies of your company could improve morale and performance of companys employers-unsolicited internal Ex: a govt agency is attempting to improve working conditions and advertises the availability of funds for rectifying common problems. The agency invites any qualified person to submit a grant proposal using agencys guidelines.-external solicited document

Classification According to Contents and Objectives of the Proposal

Business Proposal-If a proposal deals with any

aspect of business , commerce or industry Research Proposal-If it is concerned with a project requiring scientific enquiry or systematic investigation Technical Proposal-When the objective of proposal is to modify or create something requiring technical knowledge and skills.

CHARACTERISTICS
AIDA Attention-is caught towards what is being proposed Interest-is created by pointing out how the plan would be executed Desire- to accept by highlighting the benefits or advantages that would accrue Action-An impulse for action is induced by persuasive reasoning

STRUCTURE (structure of solicited proposal is

determined by the person or organization inviting it. In Unsolicited proposal there is choice in respect of elements to be included and in their sequencing.

Title Page Cover of the proposal Contains-title, name & designation of proposer, name of the organization to which he belongs to, month & yr of submission 2. Table of Contents-given only when the proposal is long running into 15 or more pages
1.

STRUCTURE (contd..)
3. Executive summary Summary of entire proposal Problem Solution (what will take place/how many people will benefit/where it will operate/for how long/who will staff it) Funding requirements Organization & its expertise 4. Statement of the Problem Enables the reader to learn more about the issues Presents the facts and evidence that support the need for the project Establishes that your organization understands the problem and can reasonably address them

STRUCTURE (contd..)
5. Objectives To what extent your proposal is going to solve the problem or effect the change should be clearly specified May be listed in terms of long term and short term goals

STRUCTURE (contd..)
6. Technical Plan Describe In technical terms how the proposal would solve the problem Discuss theoretical principles / analytical or experimental methods to be followed Equipment/instruments/materials needed and how you are going to utilize them to execute the proposed project. In case of production of a new instrument, component or part of a machine, highlight technical/operational advantages that would accrue from it.

STRUCTURE (contd..)
7. Management Plan Describes how you will accomplish the proposed task Indicates plan of action (division of work/time required for completion), facilities required/personnel who will execute the project Plan of action should specify how work will be divided, who will be responsible for each division and time required Provide a brief description of qualifications , achievements and experience of personnel involved in execution

STRUCTURE (contd..)
8. Cost Estimate Kingpin in the proposal Solicited-cost data required would be already indicated, only

supply information Unsolicited-show all the items of anticipated expenditure Estimate should be realistic & complete Include the amount required for the following itemsmaterials/equipment/computer time/lab testing/salaries of personnel /travel/office/contingencies/infrastructural facilities (land, building, water, electricity..)
9.

Conclusion (optional)-state briefly the significance of the

project and highlight once again the benefits

Format of Proposals
Cover Letter/Memo with Separate Proposal-Write

a brief cover letter/memo and attach the proposal after it Business Letter proposal-Put the entire proposal within a standard business letter Memo Proposal-Put the entire proposal within a standard office memorandum

Proposal Layout & Design

Times Roman

10-12 point type

Use of color whenever possible Extensive use of graphics

Simple Proposal Formula

Who (will do the work/is responsible or to be

contacted) What (needs to be done or delivered/cost) Where (will the work be done/will it be delivered) How (will it be managed/long will it take/will the work benefit the customer) When (will you start/will the project be complete/is payment due) Why (should the customer selected the proposal)

Tips for Effective Proposal

Specify the scope clearly. Be realistic in your estimate of time, money and

personnel required. Establish your credentials for accomplishing the task. Highlight the benefits that would accrue to the customer. Keep the proposal short and precise. Use plain language. Ensure that the presentation and layout are neat and attractive.