Business Proposal Guide: Write Winning Proposals with Ease

Published Wednesday 7 January 2026

Table of contents

• What is a business proposal?
• Why you need a business proposal
• Types of business proposals
• How to write a business proposal
• Business proposal examples
• Business proposal tips
• Common business proposal mistakes to avoid
• Following up on your business proposal
• Business proposal templates and resources
• Get your business finances proposal-ready
• FAQs on business proposals

Key takeaways

• Structure your proposal to solve three core challenges by clearly identifying the client's specific problem, presenting your tailored solution with measurable outcomes, and demonstrating superior value compared to competitors.
• Include strategic visual elements and measurable data such as charts, graphs, case studies, and performance metrics to make complex information digestible and prove the value you provide to potential clients.
• Follow up professionally within one week of sending your proposal with a brief email asking if they have questions, as this keeps your proposal visible and demonstrates your proactive approach to client service.
• Avoid common mistakes by customising each proposal to the specific client rather than using generic templates, focusing on their problems instead of your business capabilities, and providing clear pricing breakdowns with accurate information.

What is a business proposal?

A business proposal is a formal document that helps you win new clients and projects by presenting your solution to their specific problem. You send it to prospective clients to outline your services, demonstrate your expertise, and explain why they should choose you over competitors.

Why you need a business proposal

A good proposal does more than just state a price. It shows you understand the client's problem and have a thoughtful solution. It helps you look professional, manage expectations, and ultimately, win the work you want. It's a key step in building trust and turning a prospect into a client.

Types of business proposals

Business proposals fall into two main categories:

• Solicited proposals: Requested by potential clients through a request for proposal (RFP). You'll have clear criteria and detailed client information, making these easier to write and more likely to succeed.
• Unsolicited proposals: Sent proactively to attract new business without a formal request. These require more research but can help you reach clients who haven't considered your services yet.

The difference between a business plan and 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.

How to write a business proposal

Effective business proposals solve three core challenges for your prospective client:

• Problem identification: Define the customer's biggest pain point with specific details
• Solution presentation: Explain how your business solves their problem better than competitors
• Value demonstration: Show how your pricing delivers superior value compared to alternatives

Your proposal should follow a structured format with these essential sections:

Title page

Create a professional first impression by including your business name, client's name, submission date, and proposal title.

Table of contents

Help clients navigate your proposal quickly and find the information most important to their decision.

Executive summary

Present your strongest case for why the client should choose you over competitors. This section should:

• Introduce your business and key team members who'll work on their project
• Demonstrate your track record of success and relevant experience
• Highlight the specific benefits your products or services deliver
• Showcase relevant milestones, case studies, and previous client successes

Problem statement

Demonstrate your understanding by outlining the client's main challenge with specific details and supporting data. This proves you've done your research and understand their pain points.

Proposed solution

Present your tailored approach to solving their specific problem. Include:

• Detailed methodology: Explain exactly what you'll provide and how you'll deliver it
• Measurable outcomes: Define success metrics and how you'll track progress
• Project timeline: Provide realistic deadlines for each phase of work
• Visual elements: Use charts, graphs, or diagrams to illustrate complex concepts

Qualifications

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

You can include case studies of previous clients, client testimonials, social media endorsements or praise, relevant industry-specific qualifications from major bodies like Chartered Accountants ANZ, which has over 140,000 members globally, and certifications and years of experience.

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 turnaround 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. For example, registered companies in New Zealand must file an annual return and pay a fee of $49.74 plus GST to confirm their details on the Companies Register.

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.

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 examples

While every proposal should be tailored to the client, looking at examples can give you a great starting point. Look for examples from your industry to see how others structure their solutions and pricing.

Pay attention to the language they use and how they present their qualifications. This can help you find a format that feels right for your business.

Business proposal tips

Winning business proposals require strategic elements that differentiate you from competitors and convince clients to choose your services.

Start with an outline

Before you begin writing your proposal, plan out everything in an outline. Ensure you have all of the key information you need and research any you don't have.

Include measurable data

Use specific statistics, case studies, and performance metrics to show the value you provide. Present data through:

• Charts and graphs: Make complex information easily digestible
• Comparison tables: Show how your solution outperforms alternatives
• Success metrics: Quantify results from previous similar projects

Use strategic visuals

Enhance comprehension with relevant visual elements:

• Process diagrams that illustrate your methodology step by step
• Timeline graphics that show project phases and key milestones
• Before and after comparisons that demonstrate potential results
• Team photos that build a personal connection and trust

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 build credibility and trust in your proposal. Seeing positive reviews or case studies can help convince your client to accept your proposal.

Social proof can include case studies, testimonials, reviews and rankings, customer stories and logos of 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

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

Write clearly and concisely

Avoid business jargon and complex sentences that confuse readers. Your proposal should be comprehensive yet scannable, providing enough detail to convince decision-makers without overwhelming them with unnecessary information.

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 compelling cover letter

Create a one-page summary that motivates decision-makers to read your full proposal. Include:

• Contact details: Make it easy for clients to reach you with questions
• Business introduction: Briefly explain your services and expertise
• Problem summary: Acknowledge their specific challenge and your solution
• Key benefit statement: Highlight the primary value you'll deliver
• Clear next steps: Tell them exactly what action to take next

Common business proposal mistakes to avoid

Simple mistakes can undermine a great proposal. Here are a few things to watch out for:

• Being too generic: Sending the same proposal to every client
• Focusing on you, not them: Talking about your business instead of their problem
• Unclear pricing: Not giving a simple breakdown of costs
• Typos and errors: Not proofreading carefully

Following up on your business proposal

Sending the proposal is just one step. Don't be afraid to follow up.

A simple email a week later can put your proposal back at the top of the client's inbox. Ask if they have any questions and confirm when you can expect to hear from them. It shows you're proactive and keen to work with them.

Business proposal templates and resources

You don't have to start from scratch every time. Using a Xero business proposal template can save you hours and ensure you don't miss any key sections.

Look for templates that are easy to customise with your own branding and details. Many accounting and customer relationship management (CRM) software tools also offer features to help you create, send, and track proposals efficiently.

Get your business finances proposal-ready

Writing a strong proposal is easier when your finances are in order. Knowing your numbers helps you price your services profitably and confidently. With clear visibility of your cash flow and project costs, you can build proposals that are not only compelling for the client but also healthy for your business.

Having organised financial records also makes it easier to provide accurate quotes and timelines. When you know exactly what your costs are (for instance, the IRD's approved rate for claiming home office expenses is $55.60 per square metre for the 2024-2025 tax year) and how long projects typically take, you can create more realistic and competitive proposals.

Try Xero for free to get your business finances organised and proposal-ready.

FAQs on business proposals

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

How long should a business proposal be?

There's no magic number. It should be long enough to cover all the key details but short enough to hold the reader's attention. A simple project might only need a few pages, while a complex one could be much longer. Focus on being clear and concise.

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

A business proposal is a sales document designed to persuade a client to work with you. A contract is a legally binding agreement that is signed after the proposal is accepted. The proposal outlines the 'what' and 'why', while the contract formalises the terms.

How do I price my services in a business proposal?

Your pricing should reflect the value you provide, not just your costs. Consider the client's budget, the scope of work, and what your competitors charge. Offering a few pricing tiers can give clients flexibility and increase your chances of winning the project.

What should I do if my business proposal gets rejected?

Don't take it personally. If possible, ask for feedback to understand why they chose another option. This can provide valuable insights to help you improve your next proposal. Maintain a professional and positive relationship.

How quickly should I follow up after sending a proposal?

A good rule of thumb is to wait about a week before following up. This gives the client time to review it without being pushy. A brief, polite email asking if they have any questions is usually the best approach.