Business Proposal

From experience with business proposals and formal research, there are areas of commonality and there are areas that differ greatly and those areas will be discussed and analyzed in depth. To prepare for this analysis, the definition of business proposal and formal research will have to be outlined in detail to get a better understanding of their true meanings.

The use of a formal research report has a different use than the business proposal. The formal research report is commonly used by product developers and financial analysts to determine whether the company should develop another product. The business proposal is often used to determine the best way of entering the market once the product has been developed. The theoretical and practical themes of the proposals also play a role in their uses for the business (a).

In this section, the definition of business proposal will be explored in detail to get a clear and concise meaning. A business proposal is a written scheme from a seller to a prospective customer. The main purpose is to fulfill the requirements of a client. A proposal includes a company's profile as well as its products and services offered. An entrepreneur mentions profile and other components to convince a prospective client about the benefits of his products and services for a client. A proposal also aims to demonstrate the credibility and authenticity of a company and its products and services to win a client's confidence. A good proposal has the potential to portray a company unique and credible that gives an edge over its competitors (b). During the analysis process of a business proposal, the vendor would perform extensive data collection from the potential client. This knowledge is valuable as it can assist the vendor in being made aware of the needs, wants or requirements of a potential client. A proposal should clearly define a business problem and provide a solution to this problem.

There are three distinct categories of business proposals (c):

• Formally Solicited

• Informally Solicited

• Unsolicited

Solicited proposals are written in response to published requirements, contained in a Request for Proposal (RFP), Request for Quotation (RFQ), Invitation for Bid (IFB), or a Request for Information (RFI).

Informally solicited proposals are typically the result of conversations held between a vendor and a prospective customer. The customer is interested enough in a product or service to ask for a proposal.

Unsolicited proposals are marketing brochures. They are always generic, with no direct connection between customer needs or specified requirements. Vendors use them to introduce a product or service to a prospective customer. They are often used as "leave-behinds" at the end of initial meetings with customers or "giveaways"