Business proposal guide: Winning proposals that land clients

Published Friday 23 January 2026

Table of contents

• What is a business proposal?
• Types of business proposals
• Business proposal tips
• How to write a business proposal
• Business proposal examples and templates
• Following up on your business proposal
• Streamline your proposal process
• FAQs on business proposals

Key takeaways

• Structure your business proposal with essential sections including problem statement, proposed solution, qualifications, timeline, and pricing to guide clients systematically through your pitch and demonstrate clear value.
• Incorporate compelling evidence such as case studies, client testimonials, specific metrics, and visual elements like charts or videos to build credibility and make your proposal stand out from competitors.
• Present multiple pricing options with clear breakdowns and include upselling opportunities to give clients flexibility while maximising your potential revenue from each proposal.
• Follow up professionally within one week of sending your proposal with a polite email asking if they have questions, which keeps your proposal top of mind and opens the door for further conversation.

What is a business proposal?

A business proposal is a formal document that outlines your services and persuades potential clients to choose your business. You send it to prospective clients to win projects or secure sales by demonstrating why your solution is the best fit for their needs.

Types of business proposals

Business proposals fall into two main categories based on how they're initiated:

• Solicited proposals: Requested by potential clients through requests for proposals (RFPs)
• Unsolicited proposals: Sent proactively to prospects without a formal request

Solicited proposals give you clear criteria and client information upfront. Unsolicited proposals work like cold pitches to attract new business opportunities.

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 the free Xero business plan 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.

Business proposal tips

Winning business proposals stand out through strategic preparation and compelling presentation. These techniques increase your success rate:

Start with an outline

Plan your structure and gather all necessary information before writing.

Include real data

Use specific metrics and statistics to demonstrate value. Present data through flowcharts, graphs, and tables for maximum impact.

Use visuals

Enhance readability with relevant graphics like infographics, flowcharts, timelines, and comparison tables. Add captions to clarify their purpose.

Incorporate video

Use short videos to bring your proposal to life, such as:

• Introduction to your proposal
• Testimonials from satisfied clients
• Demonstrations of your product or service

Add evidence from past clients

Build credibility through proof of your results. Include these types of validation:

• Case studies showing measurable results
• Testimonials from satisfied clients
• Reviews and rankings from third parties
• Customer stories demonstrating impact
• Client lists of recognisable names

Always obtain permission before sharing client information.

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). Include more services or features in the higher-priced options. 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.

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. 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. Professional bodies such as CIMA stress the need to translate complex compliance issues into clear, client-ready steps.

Write a cover letter

Create a one-page summary that compels decision-makers to read your full proposal. Include these essential elements:

• Contact information for easy follow-up
• Business introduction highlighting your core services
• Problem and solution summary in concise terms
• Primary benefit you'll deliver
• Clear next steps for the prospect to take

How to write a business proposal

Effective business proposals address three core elements that win clients:

• Problem: Identify the client's biggest pain point
• Solution: Explain how you'll solve it better than competitors
• Pricing: Present costs that demonstrate value

This framework ensures your proposal directly answers what clients need to make decisions.

Business proposals follow a structured format that guides clients through your solution systematically. Each section builds credibility and demonstrates value.

1. Title page

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

2. Table of contents

Help clients navigate to their priority sections quickly.

3. Executive summary

This is similar to the executive summary in your business plan. Summarise why you're the best choice before clients read details:

• Introduce your business and key team members
• Highlight your track record and business goals
• Outline product and service benefits
• Showcase relevant milestones and client successes

4. Problem statement

Demonstrate understanding by outlining the client's main challenge. Use specific data to support your analysis.

5. Proposed solution

Present your tailored approach with these elements:

• Specific deliverables you'll provide
• Key benefits the client will gain
• Timeline for project completion
• Success metrics to measure results
• Visual elements like charts to illustrate your approach

6. 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, and certifications and years of experience.

7. 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 the general timeframes your business works to, for example manufacturing or shipping times, or turnaround times for services.

8. 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 licences required for the project, add them in this section and note any relevant regulatory costs, such as changes published on the Companies House website.

9. 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. Ask a lawyer to check your terms and conditions before you send them to prospective clients.

10. 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 examples and templates

Starting from a blank page can be tough. Using a template gives you a professional structure to follow, so you can focus on filling in the details that matter. It saves time and ensures you don't miss any crucial sections.

A good template provides a clear, logical flow that guides your potential client through your pitch. You can adapt it to fit your brand and the specific project, helping you create a polished and persuasive document every time.

Following up on your business proposal

Sending your proposal is a big step, but the work isn't over. A polite follow-up can make all the difference. It shows you're proactive and genuinely interested in the client's business, and it keeps your proposal top of mind.

Wait about a week before getting in touch. A simple email asking if they have any questions is often enough. This opens the door for a low-pressure conversation and gives you another chance to show why you're the right choice for the job.

Streamline your proposal process

By connecting your proposal process with your accounting software, you can pull real-time data to support your pitch. This reflects the shift towards digital financial management, shown by a 65% rise in payments via the HMRC app. This ensures your numbers are solid and your business looks professional.

Ready to make your financial management as smooth as your proposals? Try Xero for free to streamline your invoicing and reporting.

FAQs on business proposals

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

What's the ideal length for a business proposal?

There's no magic number. Your proposal should be as long as it needs to be to persuade the client. Focus on being clear and concise, providing enough detail to solve their problem without overwhelming them. For a simple project, a few pages might be enough, while a complex one may require more.

How long should I wait before following up on a proposal?

A good rule of thumb is to wait about one week. This gives the client enough time to review your document without feeling pressured. A brief, polite email to check in and ask if they have questions is a great way to reopen the conversation.

What's the difference between an RFP response and an unsolicited proposal?

A request for proposal (RFP) response is a proposal you create because a client has specifically asked for one. An unsolicited proposal is one you send to a potential client without them asking, like a cold pitch to generate new business.

Should I include pricing in every business proposal?

Yes, pricing is a critical component. It shows the client exactly what they'll be paying for. You can offer a few options or tiers to provide flexibility, but always be clear about the costs involved to build trust and manage expectations.

How can I make my proposal stand out from competitors?

Personalise it. Show you've done your research and truly understand the client's problem. Use a clean, professional design, include testimonials or case studies for social proof, and write in a clear, confident voice that reflects your brand.