14-business proposal (1)
DESCRIPTION
Business ProposalsTRANSCRIPT
Any properly conceived idea, service, project, plan whether theoretical or practical in nature, put forward for
action or implementation is a proposal
BUSINESS PROPOSALPro-forth, poser-to place /put
OBJECTIVE
To buy a serviceTo convince the reader of the existence of
a situation and to take a course of actionTo convince your department of your need
for a new technologyTo provide you with funds (loan/grant)
TYPES OF PROPOSALSInternal 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 ProposalWritten 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 ProposalWritten 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 ExternalAre the basis on
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
Are prepared for recipients outside the organization
Are meant for internal decision making
May often compete for business
If accepted, external proposal become legal binding
Solicited ProposalResponse to some invitation by other companiesCompanies 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 ProposalGenerally promotional in natureWhen you initiate a proposal yourselfGenerally persuasive in nature and claim to solve an
existing problem in a companyForm 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/externalEx: you perceive that some changes in the hiring policies
of your company could improve morale and performance of company’s 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 agency’s guidelines.-external solicited document
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.
Classification According to Contents and Objectives of the Proposal
CHARACTERISTICSAIDAAttention-is caught towards what is being
proposedInterest-is created by pointing out how the
plan would be executedDesire- to accept by highlighting the
benefits or advantages that would accrueAction-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. )
1. 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
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 expertise4. Statement of the Problem-Enables the reader to learn more about the issuesPresents the facts and evidence that support the need
for the projectEstablishes 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 problemDiscuss theoretical principles / analytical or
experimental methods to be followedEquipment/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 PlanDescribes how you will accomplish the proposed
taskIndicates 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 items-
materials/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 & DesignTimes Roman10-12 point typeUse of color whenever possibleExtensive 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 ProposalSpecify 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.