In the strictest sense, it is a proposed solution to a problem or set of problems. It is carefully crafted to demonstrate that you know and understand the nature of your prospect’s problem and that you also know what kind of results are required for the solution to be acceptable. Above all, it must be persuasive and it must make the prospect comfortable about making a business decision in your favor.
A proposal must accomplish a number of things:
- Demonstrate that you understand the client’s problem(s)
- Provide specific, tailored products or actions in response to those problems or needs
- Outline the investment required (but not the specific details)
- Present a Return-On-Investment (ROI) strategy or
- Show how the investment will prevent further critical problems
- Explain how your organization has helped in similar situations and is qualified to provide solutions.
- Explanations should follow the PAR formula: Problem, Action, Result.
- Give a short history of your organization
- Introduce the key players who will be assigned to work with the client
- Provide a logical sequence of “Next Steps” to get things going.
A proposal is not simply a set of “speeds and feeds” coupled with a price list of products and services. That would be called a “quote” in most business circles. Quotes have their place in securing business but are not intended to demonstrate your understanding of the problem and persuade the prospect of your capabilities.
A proposal is not a company history, reciting your focus on excellence and repeating your mission statement in an attempt to persuade the prospect that you are magically the only qualified supplier.
And a proposal is not a detailed description of how to fix a problem. That is an invitation for the prospect to take your good ideas gained from long experience and shop them around for the best price.
A proposal is “a proposed solution to a specific problem designed to persuade the prospect to take action in your favor.”
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