Business proposal: How to write one that wins clients

Published Monday 2 February 2026

Table of contents

• What is a business proposal?
• Types of business proposals
• How to write a business proposal
• Business proposal tips
• Streamline your proposal process with the right tools
• FAQs on business proposals

Key takeaways

• Structure your business proposal around three core elements: clearly identify the customer's specific problem with concrete details, explain how your solution addresses it better than competitors, and present transparent pricing that demonstrates clear value.
• Include essential sections in a logical order: title page, table of contents, executive summary, problem statement, proposed solution with specific deliverables and timelines, qualifications with social proof, pricing and legal terms, and a signature section for acceptance.
• Use concrete evidence and visual elements to strengthen your proposal by including specific metrics, case studies, measurable results, charts, graphs, and relevant visuals that support your claims rather than serving as decoration.
• Provide multiple pricing options and maintain professional presentation by offering high, mid, and low-tier packages, proofreading thoroughly for accuracy, and including a compelling cover letter that summarises your key value proposition.

What is a business proposal?

A business proposal is a formal document that pitches your services to win new clients and projects. It outlines your solution to their problem and demonstrates why you're the best choice for the job.

Types of business proposals

Business proposals fall into two main categories:

• Solicited proposals: Requested by potential customers through RFPs (requests for proposal). You'll have clear criteria and detailed customer information to work with.
• Unsolicited proposals: Cold pitches sent to prospects without an existing relationship or formal request. These require more research and persuasion.

The difference between a business plan and a business proposal

A business plan is your company's roadmap showing strategy, goals and how you'll make money. It's an internal document for planning and securing investment. You can create a business plan using the free Xero template.

A business proposal is a sales pitch to prospective customers. It demonstrates how your solution solves their specific problem and why they should choose you.

How to write a business proposal

An effective business proposal addresses three core elements:

• Problem: Identify the customer's biggest pain point with specific details
• Solution: Explain how you'll solve it better than competitors
• Price: Present clear costs and demonstrate value compared to alternatives

Structure your business proposal using these essential sections:

Title page

Create a professional first impression with your business name, client name, submission date, and proposal title.

Table of contents

Help clients navigate quickly to the information they need most.

Executive summary

Your elevator pitch that convinces clients you're the right choice. Include:

• Business introduction: Your company and key team members
• Track record:Your goals, success metrics, and proven results
• Service benefits: How your solutions create value
• Social proof: Notable milestones and previous clients

Problem statement

Demonstrate you understand their challenge by outlining their main problem with specific data and concrete examples.

Proposed solution

Present your tailored approach including:

• Specific deliverables: What you'll provide and how
• Key benefits: Measurable outcomes they'll achieve
• Project timeline: Clear milestones and deadlines
• Success metrics: How you'll measure results
• Visual aids: Charts and graphs to illustrate your approach

Qualifications

Use this section to build trust by explaining why your business is the best one for the job and why they should choose you.

Being open about your experience, qualifications and results helps build confidence in your proposal. You can include case studies of previous clients, client testimonials, social media endorsements or praise, relevant industry-specific qualifications, and certifications and years of experience.

The timeline

If you're pitching for a specific project, outline a clear and realistic timeframe of how and when you'll complete each part of it. Present this in a flowchart or a road map with deadlines and step-by-step actions.

If your proposal isn't for a specific project, give an idea of general timeframes your business works to, for example manufacturing or shipping times, or turn-around times for services.

Pricing, billing and legal

This is one of the most important sections. How you structure it will depend on the size of your project and the type of proposal.

For smaller projects and unsolicited proposals, a summary of the fees, or potential fees is sufficient. For a larger project, provide a breakdown of costs to show your potential clients what they'll be paying for.

You can also provide options to allow clients room to move. Check back on the client's RFP terms if it's a solicited proposal to make sure you meet their requirements.

If there are any permits or licenses required for the project these should be added to this section.

Terms and conditions

Clarify the terms and conditions and summarise details for the project, including timeline, pricing and payment schedules. This is where you include items such as cancellation policies, deposits, warranties and shipping.

Get your terms and conditions checked by a lawyer before you send them to prospective clients.

The acceptance

The final step is to leave a space for signatures. Include a signature box for your client to sign when they accept your proposal. Make sure you include contact information if your client needs to follow up with any unanswered questions.

Business proposal tips

These proven strategies will make your business proposal more compelling and increase your chances of winning the project.

Plan your approach

Create a detailed outline before writing. Research all missing information and gather key data points.

Use concrete evidence

Include specific metrics, case studies, and measurable results. Present data through charts, graphs, and tables for maximum impact.

Use visuals

Include visual images to break up and enhance the text of longer proposals.

Examples of visuals that are great for business proposals include infographics, flowcharts, timelines, photographs, organisational charts and comparison tables. Make sure they're relevant and not just decorative. Include captions or explanatory notes with them if it's not obvious what they're about.

Incorporate video

If your proposal is online or a PDF, a short video can help to strengthen your proposal and increase engagement with the prospective client. Types of videos that work include:

• an introduction to your proposal
• testimonials
• a demo or brief explainer of your product or service

Add social proof

Use social proof to add credibility and trust to your proposal. It may help convince your client to accept your proposal if they can see positive reviews or case studies from previous clients. Types of social proof include case studies, testimonials, reviews and rankings, customer stories and previous clients you have worked with.

Make sure you have approval to share this information though; you don't want to breach the privacy of customers or previous clients.

Use a call to action

Include a call to action so that your audience knows what action they should take after reading your proposal. Ensure you include contact details so they can ask questions or clarify any issues they have.

Provide pricing options, upsell and add on opportunities

Consider your client's budget, if you know it, and provide several pricing options (high, mid, low) with extra provided for the higher price. Use a pricing table to present your options.

Include other services or related products your business provides. It's an opportunity to add on extras to the basic proposal, and gives the client additional information about your business.

Stay on brand

Let your brand's personality stand out in your proposal so clients can see what makes working with you unique. You can use this marketing plan template from Xero to help define your brand.

Keep it simple

Avoid using business jargon and keep your sentences short and simple.

There's no ideal length for a business proposal, but it is important to be succinct and clear. This principle is supported by Australian legal precedent, where the Federal Court determined that information in a proposal should be selective and confined to matters that are realistically useful in the circumstances.

Your proposal should provide enough in-depth information to persuade the decision-maker without overwhelming them.

Accuracy

Be thorough and proofread your proposal. Check your spelling and grammar are accurate and there are no typos. Pay attention to the details and make sure your numbers and all information in your proposal are accurate.

Write a cover letter

Write a compelling one-page cover letter that encourages clients to read your full proposal. Include:

• Contact details: Make it easy for clients to reach you
• Business overview: Brief introduction to your company and services
• Problem and solution: Concise summary of their challenge and your approach
• Key benefit: The main value you'll deliver
• Clear next steps: Specific actions you want them to take

Streamline your proposal process with the right tools

Creating professional proposals takes time, but the right tools can make the process faster and more efficient. Using proposal software helps you build, send and track your proposals in one place. For small businesses, the cost of off-the-shelf software may even be tax deductible under the Australian Taxation Office (ATO) simplified depreciation rules.

Look for tools that let you create reusable templates, so you don't have to start from scratch every time. This saves you valuable hours and ensures your branding stays consistent.

Even better, find software that connects with your accounting system. When a client accepts your proposal, you can automatically convert it into an invoice without any extra data entry. This seamless workflow helps you get paid faster and keeps your financial records accurate from the start. Try Xero for free and see how easy it can be.

FAQs on business proposals

Here are answers to some common questions about writing business proposals.

How long should a business proposal be?

There's no perfect length. Your proposal should be as long as it needs to be to clearly explain the client's problem and your solution. Focus on being concise and providing all the necessary details without overwhelming the reader.

What's the difference between a business proposal and a quote?

A quote simply lists the price for a product or service. A business proposal is a more detailed sales document that explains the value you provide, outlines the scope of work, and persuades the client why you're the best choice for the job.

When should I follow up after sending a proposal?

It's good practice to follow up within a week if you haven't heard back. A simple, polite email to check if they have any questions shows you're proactive and interested in their business.

What are the most common business proposal mistakes?

Common mistakes include not personalising the proposal to the client, having typos or grammatical errors, being unclear about the solution, and not including a clear call to action. Always proofread and tailor each proposal.

How much should I charge for my services in a proposal?

Your pricing should reflect the value you provide, your costs, and what the market will support. Consider offering a few pricing tiers to give clients options that fit their budget and needs.