How to write a business proposal that wins clients

Published Friday 17 October 2025

Table of contents

• What is a business proposal?
• Types of business proposals
• Difference between a business plan vs a business proposal
• How to write a business proposal
• Business proposal examples and templates
• Grow your business with confidence
• FAQs on business proposals

Key takeaways

• Structure your business proposal using the three Ps framework—Problem (identify the client's biggest pain point), Proposed solution (show how you'll solve it better than competitors), and Pricing (present competitive, value-based costs).

• Include real data and performance metrics from previous projects to prove your value and differentiate from competitors, using charts, graphs, and visual elements to highlight key numbers and measurable results.

• Write a compelling cover letter that serves as a one-page summary introducing your business, clearly stating the client's specific problem and your unique solution, and providing clear next steps with a timeline for their response.

• Keep your proposal simple and focused by using plain language, writing short sentences of 15-20 words, and providing enough detail to persuade without overwhelming the reader.

What is a business proposal?

A business proposal is a formal document that outlines your solution to a client's problem and persuades them to choose your business. It serves three key purposes:

1. Win new projects: Present your services to prospective clients
2. Differentiate your business: Explain why you're the best choice, which is crucial in crowded fields where, for example, more than 200,000 companies compete for contracts in a single sector like U.S. defense.
3. Formalize agreements: Create a clear framework for potential partnerships

Difference between a business plan vs a business proposal

A business plan is the roadmap for a business and shows the overall strategy, goals and vision for success. It shows how a business operates and how it will make money. You can create a business plan using our free template.

A business proposal is a pitch to sell a product or service to a prospective customer. The proposal aims to make the sale and shows the potential of the product or service to solve a problem.

Types of business proposals

Business proposals fall into two main categories:

Solicited proposals: Requested by potential clients through RFPs (requests for proposal).

• You know the specific criteria and requirements
• Client information is readily available
• Higher success rate due to established interest

Unsolicited proposals: Sent proactively to prospects without a formal request.

• Similar to a cold pitch approach
• Requires more research and customization
• Helps you reach new markets and clients

How to write a business proposal

Effective business proposals follow the three Ps framework to maximize your win rate:

• Problem: Identify the client's biggest pain point
• Proposed solution: Show how you'll solve it better than competitors
• Pricing: Present competitive, value-based costs

Standard proposal structure includes these key sections:

Opening elements:

• Title page
• Table of contents
• Executive summary

Core content:

• Problem statement
• Proposed solution
• Your qualifications
• Project timeline

Business terms:

• Pricing and billing details, which should align with established accounting standards for recognizing revenue from contracts with customers.
• Terms and conditions
• Acceptance and next steps

Winning proposals combine strategic content with professional presentation to outperform competitors. These proven techniques increase your success rate:

1. Start with an outline

Start with an outline to organize your proposal effectively:

• Gather client information: Research their business, challenges, and decision-makers
• Map your solution: Align your services with their specific needs
• Identify gaps: Note missing information and research requirements
• Structure your argument: Plan how you'll present your value proposition

2. Include real data

Include real data to prove your value and differentiate from competitors, a practice used by leading companies that link performance metrics to broader strategic goals and focus on outcome-oriented results.

• Performance metrics: Show measurable results from previous projects
• Cost savings: Quantify potential savings or revenue increases
• Timeline data: Provide realistic project milestones
• Visual presentation: Use charts, graphs, and tables to highlight key numbers

3. 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, organizational 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.

4. 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

5. 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.

6. 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.

7. 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.

8. Stay on brand

Allow your brand's personality to stand out. Demonstrate how you are better and different from your competitors.

9. Keep it simple

Keep it simple to maximize readability and impact:

• Use plain language: Avoid jargon and technical terms
• Write short sentences: Aim for 15-20 words per sentence
• Focus on clarity: Provide enough detail to persuade without overwhelming
• Length varies by project: Complex projects need more detail, simple services need less

10. Be accurate

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.

11. Write a cover letter

Write a cover letter to convince decision-makers to read your full proposal. This one-page summary should include:

Business introduction:

• Your contact information
• Brief overview of your services

Value proposition:

• Client's specific problem
• Your unique solution
• Primary benefit you'll deliver

Clear next steps:

• Specific actions for the prospect
• Timeline for their response

Business proposal examples and templates

Starting from scratch can be tough. Using a business proposal template gives you a professional structure to build on, saving you time and ensuring you don't miss any crucial details. A good template provides a clear format with placeholders for your title page, executive summary, proposed solution, and pricing.

Look for templates that are easy to customize with your own branding, data, and visuals. This helps you create a polished and persuasive document that reflects your business's unique value, without having to reinvent the wheel every time.

Grow your business with confidence

A well-crafted business proposal is more than just a document—it's your opportunity to win new customers and grow your business. By clearly outlining the problem, your solution, and the value you provide, you build trust and set the stage for a successful partnership.

Once you win the project, Xero makes it easy to manage the financial side of your growing business. From sending invoices to tracking project profitability, you'll have the tools you need to stay organized and in control.

See how you can run your business, not your books, and try Xero for free today.

FAQs on business proposals

Here are some common questions and answers small business owners may have about writing business proposals.

What should I include in my business proposal?

A standard business proposal includes a title page, executive summary, problem statement, proposed solution, your qualifications, a timeline, pricing, and terms and conditions. Tailor each section to the specific client and project.

How long should a business proposal be?

There's no set length, but clarity and conciseness are key. Your proposal should be long enough to be persuasive and provide all necessary details, but short enough to hold the reader's attention. Most proposals range from a few pages to over a dozen, depending on the project's complexity.

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

A quote typically just lists the price for a product or service. A proposal is a more detailed, persuasive document that outlines the client's problem, your proposed solution, and why your business is the best choice. It's a sales tool, while a quote is a simple price list.

How do I follow up after sending a proposal?

Wait a few business days, then send a brief, polite email to confirm they received it and ask if they have any questions. Avoid being pushy. Your goal is to be helpful and keep the conversation going.