Writing Business Proposal Letters
Writing a business proposal letter is a way to introduce your company and ideas to potential lenders or customers in order to obtain funding. A business proposal letter may respond to a solicitation asking for bids to provide services or products. Alternatively, an unsolicited business proposal letter begins a dialog that may end in winning a contract or getting a business loan.
Business Proposal Cover Letter
The business proposal cover letter must grab the attention of the reader and entice them to review all of the information sent with the cover letter. A cover letter should be about one page in length and contain the name of the organization and the title individual. General titles, such as “President” or “To whom it may concern” reflect a lack of preparation and research by the sender.
The first paragraph of the cover letter tells the reader what is being sent, why you are sending it and what action you want the reader to take. If the proposal letter responds to a solicitation, mention the solicitation title and number in the first paragraph. Use the second paragraph to highlight two or three key points of your business proposal from the perspective of the recipient. A winning business proposal sells your organization’s ability to meet the needs of the customer.
The third paragraph provides the reader with key facts about your company with the intent to demonstrate your competence, trustworthiness and ability to perform satisfactorily the tasks promised in the first paragraph. The final paragraph of the cover letter provides an overview of the content of the remainder of your mail, such as a technical proposal, company history, market analysis and financial data.
Always use an active voice when writing the cover letter. Put the letter on company letterhead stationery and provide contact information including a name, title, address, phone and email.
Business Proposal Content
If your business proposal responds to active solicitation, the contractor usually provides an outline of the content expected in a proposal. For an unsolicited business proposal, make sure to answer the questions a reader is likely to want answered. Tell the reader in detail what your organization proposes to do. Explain in terms important to the reader why successfully reaching your goals is useful to their organization.
Organize the business proposal with titles and section headings that walk a reader through a logical process that begins with a statement of the need or problem. Follow problem statement with proposed solutions and a schedule of activities. Convince the reviewer of your organization’s ability to fulfill the proposed tasks by providing information on previous successes and key personnel skills.
Review the business proposal content for accuracy and readability. Make sure that you answer any questions asked by the funding organization with descriptions marked clearly via headings, boldface type or image captions.
Business Proposal Financial Information
Provide your reviewer with two types of financial information. The cost of executing the proposal activities should include details on how you determined labor costs and vendor quotes for material costs. Second, offer background information on the financial stability of your organization through audit reports or references to previously successful contract executions.
