what is the difference between business plan and project proposal

Business Plan vs. Business Proposal

The terms “business plan” and “business proposal” are sometimes used interchangeably, however, they are very different. The main difference between a business plan and a business proposal is that a business plan documents your growth strategy while a business proposal is a specific ask for someone to take an action you desire (e.g., buy your product/service, invest in your company, partner with you, etc.).

In this article, we will define a business plan and a business proposal and give you examples of when each is appropriate for you to use.  

What is a Business Plan?

Download our Ultimate Business Plan Template here

Business Plan Structure

Typically, the business plan structure contains the following 10 components:

• Executive Summary
• Business Description & Overview
• Market Research & Analysis
• Customer Analysis
• Competitive Analysis
• Marketing Strategy & Plan
• Operations Plan
• Management Team
• Financial Projections & Plan

It is recommended that a business plan is updated annually to adjust for changes in the industry trends and the business itself.  

What is a Business Proposal?

In terms of what you are asking from them, it can be anything that involves funds and time on their end including cash investment, product development assistance, and even employees if they have applicable skill sets.  

Business Proposal Structure

An invited business proposal is written in response to an RFP. A request for proposal (RFP) is a document that invites potential suppliers to submit business proposals. How to write a business proposal depends on the format requested and the questions included in the RFP.

The following are the components that usually make up a business proposal:

• Brief description of your company’s services/products as the proposed solution to the goals of the RFP
• Reiteration of the scope of the particular project
• Responses to questions asked in the RFP
• Cost of the project, including drafting services, materials, tools, labor, delivery and other expenses

An unsolicited business proposal is essentially the same format, but it will solicit the client’s business while anticipating the clients’ concerns and issues. A business proposal is more of a marketing document than an offer because it attempts to persuade the potential client to do business by demonstrating your value proposition and a call to action.  

So, What’s the Difference Between a Business Proposal vs. a Business Plan?

In a business proposal, company representatives typically work with the customer to tailor a business proposition that is attractive to both parties. This usually comes in the form of a written document detailing the services and cost associated with fulfilling an offer or request but can also include electronic contracts.

In contrast, a business plan is a description of your company on the executive and operational levels aimed at investors for raising financial support or other stakeholders in order to facilitate long-term growth. For example, an investor will want to know about how different departments within your business interact with one another, while somebody who will be implementing your product probably only needs more limited information such as design specs because they are not going into production themselves.

A business proposal may provide you with more details of the project, but it does not include information about your company’s operations or future plans.  

Examples of Business Plans vs. Business Proposals

• When you give a potential investor your business plan which includes all sorts of information about how we will achieve your goals together as well as the amount of money it’s going to take. The business proposal is for them to write you a check in return for interest/principal payments or a percentage of your company.
• You might be getting partners involved in your business who will help with product development and distribution. You are offering them a business proposal to work together. However, they may request to see your business plan to better understand your goals, potential profitability, and how you plan to reach these goals before deciding to work with you.
• Your existing business has been so successful that you decide to outsource the social media marketing efforts to a freelancer to free up more of your time. The freelancer would provide a business proposal stating their terms and conditions along with the agreed-upon pay arrangement for their services. This change in organizational structure may be noted in your business plan to demonstrate expansion and financial stability to continue growth.
• In your business plan , one of your goals is to grow your client base by 5% each month. You identify potential clients in need of your services or products and send an unsolicited business proposal to demonstrate how your products or services can benefit them in order to develop a new prospective client list.

The business plan is a roadmap for your company’s present and future, while the business proposal has to do with what you are asking someone else for money.  Applying this difference into practice can be difficult at times because business plans are often marketed as business proposals. However, it is important to be able to identify the difference between a business plan and business proposal in order to maximize their effectiveness and importance with potential investors or partners.

How to Finish Your Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Other Helpful Business Plan Articles & Templates

We earn commissions if you shop through the links below.  Read more

Business Plan vs. Business Proposal

Back to Business Plans

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on February 27, 2023 Updated on December 11, 2023

A business plan and a business proposal are similar documents. In fact, in some cases the terms can be used interchangeably, such as when both aim to attract investment. 

But generally speaking, a business proposal tends to have broader scope, and this handy guide lays out precisely how these two common terms differ. 

• What is a Business Plan?

A business plan is a detailed document laying out how the business will function and develop in its first few years. The key is the “plan” part of the name, as it will specify how you will launch, gain customers, operate, make money, and, with any luck, expand. 

Yet what many first-time business owners seem to forget is that a business plan is not a static document. The initial version is based largely on assumptions, supported by research. But as you run your business you’ll learn what works and what does not and make endless tweaks to your plan.

Thus, creating a business plan is not a one-time action – it’s a dynamic and continuous process of crafting and adapting your vision and strategy. 

Components of a Business Plan

A business plan is generally much more detailed and broader than a business proposal, and has several elements :

• Executive Summary  
• Company Description/Overview
• Products or Services Offered 
• Market Analysis 
• Marketing and Sales Strategies
• Operations and Management  
• Financial Plan
• What is a Business Proposal?

A business proposal is created in connection to a specific business deal being offered by one party to another. As mentioned, when you take a business plan to an investor, you’re proposing a business relationship, so in this case a business plan and a business proposal are much the same.

But a business proposal could also be for others purposes, including:

• Bringing on a partner
• Proposing a management contract to a person you want to hire 
• Proposing a business relationship with a potential customer 
• Proposing a partnership with another company
• Suggesting a deal to a member of your board of directors

A business proposal may offer specific terms for the potential relationship, or it may be just about the benefits the relationship will bring, with terms to be negotiated later. Essentially, it’s a sales tool to get people or companies to do business with you in some way. 

Business proposals can be structured in various ways, but usually, they’ll include a summary of what your company can offer, a scope of the work to be done together, and sometimes, a price quote or a proposed structure of the business relationship.

Clearly, a business plan and a business proposal are similar – and can even be one and the same. At the same time, they can also serve very different purposes. Unlike a business plan, a business proposal can have a variety of aims and thus does not have a “one size fits all” structure. 

Whichever one you need, be sure to take your time with the research and writing so your business has the best chance for success. 

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Subscribe to Our Newsletter

Featured resources.

Crafting the Perfect Business Plan: A Deep Dive with Upmetrics’ Vinay Kevadiya

Carolyn Young

Published on October 13, 2023

In the first segment of our conversation with Vinay Kevadiya, the visionary behind Upmetrics, we explored the platform’s origins and itsunique ...

LivePlan Software Review: Features, Cost, Pros & Cons

Published on September 15, 2023

When you’re starting a business, a business plan is essential whether you’re going to obtain financing or not. Creating a business plan helpsyou ...

What to Include in Your Business Plan Appendix?

Published on September 13, 2023

Launching a business involves countless tasks, and one of the crucial early hurdles is writing a business plan. Many entrepreneurs who aren’tlooki ...

No thanks, I don't want to stay up to date on industry trends and news.

Business Plan vs. Business Proposal: Everything You Need to Know

“Ok, so you sell things.”

Well, honestly, I wasn’t surprised or peeved at the half-baked knowledge of my friend’s father when he made a snap judgment and conveniently labeled my marketing profession as sales.

After all, this wasn’t my first time when someone tagged me as a salesperson. So, I took a deep breath and explained to him how sales are different from marketing.

We, humans, dwell in a herd mentality and hone our word skills from our surroundings. Sometimes, we are simply careless, sometimes oblivious, but most of the time, we actually don’t know that the word has a different meaning.

This can be ignored in a casual conversation, but using the wrong words in a business space can change the implied meaning and lead to miscommunication. For example, cost vs. price , digitization vs. digitalization , warranty vs. guarantee , machine learning vs. artificial intelligence , etc.

“Don’t use words too big for the subject. Don’t say ‘infinitely’ when you mean ‘very’; otherwise you’ll have no word left when you want to talk about something really infinite.” – C. S. Lewis

This Process Street guest post untangles the confusion between two crucial terms – business plan and business proposal. These are used interchangeably in the business world, but their meaning and application are pretty different.

Words are the building blocks of communication. There is a French phrase for using the right word – le mot juste .

Let us strive for le mot juste !

Hop on and be a part of this fantabulous journey.

What is a business plan?

What is a business proposal, business plan vs. business proposal: what are the differences.

• Bonus: How to make ‘wow’ business plans and business proposals?

Winding-up: Key takeaways

Here we go!

A business plan is a formal guide that acts as a blueprint, deciphering every root and branch to make a business successful. It is a written document that provides insights to internal and external stakeholders on business vision, goals, and strategies to achieve those goals.

“Without a plan, even the most brilliant business can get lost. You need to have goals, create milestones and have a strategy in place to set yourself up for success.” – Yogi Berra

A business plan, at its core, is an explanation of the below questions –

• Who are we?
• What are our offerings?
• Who are our customers?
• Who are the competitors?
• What is our competitive advantage?
• What are the business projections?
• What is the roadmap to achieve the goals – marketing, operations, research and development, manufacturing, and financial plans?
• What are the funding/investment requirements?
• What is the return on investment?

Why do you need a business plan?

A business plan is not a bag of puffery statements. It is a document with factual information necessary for the survival of a business. You can create a business plan with the right tools or opt for a good business coach to get you started.

Let’s see what Tim Berry , business plan expert, founder and chairman of Palo Alto Softwar and bplans.com , has to say on business plans.

“What I love most about business plans is the business planning: like walking, it’s constant correction and review and revision. Planning, done right, is steering a business, managing growth, aiming the business towards the right future.” – Tim Berry ,  Small Business Trends

According to a study done by Palo Alto Software, those who create business plans double their chances to succeed in business .

Let us get down to brass tacks and understand why a business plan is super-duper important.

Record and present business information The primary intent of a business plan is to record and communicate information. It must document the business goals and the methods to attain those goals in a structured manner. It keeps businesses on track with their objectives.

A blueprint for seeking business investment ️ Whether you are a fledgling start-up or an established business seeking expansion or diversification, writing a winning business plan acts as a magnet to attract investors. It builds confidence and trust among investors about the lucrativeness of a business idea.

Lay down the right path ✔️ Not everything discussed verbally at an ideation stage transforms into reality in a pragmatic environment. Jotting down a business plan differentiates achievable from impracticable based on market dynamics, opportunities and threats, and company’s strengths and weaknesses. It sets the right track for business growth.

Establish short-term and long-term goals A business plan sets down short-term and long-term goals and the direction to accomplish them, right from baby steps to giant leaps. It becomes a basis to revisit the goals from time-to-time and make iterations depending on the present scenario.

“Any business plan won’t survive its first encounter with reality. The reality will always be different. It will never be the plan.” – Jeff Bezos, CEO of Amazon

Get clarity on your business A frequent question that pops-up in business discussions is: “Are we doing it right?”

A well-articulated business plan brings insightful knowledge on each aspect of a business – from what it has to offer to how to market the offerings.

Make informed decisions A business plan is a reality check to track what is being fruitful and what is causing hindrance. It paves the way to make a business sustainable.

Predict future financial performance Financial projection is the spotlight of a business plan. It’s the carrot that captivates the eyeballs and tickles investors to fund a new business.

A promising business plan talks about the company’s future financial performance – expenditure, profit, revenue, etc.

Explore new business opportunities A business plan is a flexible document that enables learning on the go. It bolsters research and infuses businesses with new and more feasible business opportunities. It gives organizations a fresh outlook and ushers them to be a howling success.

How to prepare for a business plan

Now that we have answered the ‘what’ and ‘why’ of a business plan, let us move forward to solve the next riddle – how do you prepare it?

Identify your company’s vision, mission, and values Start by answering and figuring out your business personality:

• What do you desire to be?
• How do you want to be perceived?
• What values put your business in motion?

This is your organization’s compass that acts as a foundation for the succeeding steps.

Know your target audience ‍ Dig deep into:

• Whom are you going to cater to?
• What is your target market?
• What is the size and potential of the target market?
• What are the needs of a prospective customer?
• How are the needs addressed presently?

Learn market trends Identifying market trends keeps businesses ahead of the game. Analysis of industry data leads to business growth and profitability in the long run.

Weigh in the impact of unforeseen circumstances From financial turbulence to natural calamities and pandemics – a lot can go wrong in the future and leave a business shaking. Expect the unexpected and gird your loins for these testing times.

How to write a business plan

Creating a winning business plan increases the chances of success and spurs investors to fund your business.

According to a study published in Small Business Economics , entrepreneurs that create a plan are 152% more likely to start their business and appoint a registered agent and 129% more likely to push forward with their business beyond the initial start-up phase and grow it.

Here are the key components of an excellent business plan:

Executive summary First impression is the last impression!

An executive summary is a crucial part of this document. It provides the essence of the whole plan:

• Company details;
• Size and scope of business opportunity;
• A description of your offerings and how it will solve the problem;
• Growth projection;
• Financial requirements.

It should be informative and able to spark readers’ interest to know more about the business plan.

Overview of the business This section lists down information on:

• Your business;
• Your target market;
• Description of your products/services;
• Why and how your offerings are a great fit for prospective customers;
• Your capabilities to handle the demands;
• Your value proposition and competitive advantage.

…and all other related details.

Market analysis and strategies Put forth a strong case built on the solid rock of data analysis and statistics – present data on target market size, industry trends, sales forecasts, and marketing strategy.

Operating plan The operating plan highlights the operational requirements for the smooth functioning of a business. It includes facilities, supply chain management, inventory, manufacturing, shipment, logistics, staff management – everything under the sun that covers capital and expense (CapEx) requirements.

Growth plan This section answers the question: “Where do you see the business going in the next few years?” It provides visibility to investors on the milestones and how you will make money in near future.

Marketing plan Thee marketing plan section describes how to market the offerings to create and fulfill customers’ needs (who are the customers, product positioning, pricing policy, and promotional strategies?)

Management plan This section outlines how your organization is structured and basically how strong you are together. It describes the skills, background, and responsibilities of the management team. It builds conviction that the business is in good hands and has a proficient human capital.

Financial plan and projections This is the part where numbers become the king.

It draws up deets on inflow and outflow of money, sales forecast, profit and loss statement, balance sheet, cash flow statement, and budget expense. It discloses and forecasts the company’s financial goals, profitability model, and charts a course for the coming years.

Conclusion and appendix Conclude the business plan by succinctly bringing out the key pointers – the business’s vision, mission, goals, strengths, and growth trajectory. Make it compelling and to-the-point. Add relevant appendices to strengthen your business plan.

Pro tip: Use an all-inclusive ready-made business plan template document and Process Street ‘s business plan workflow to create unbeatable business plans.

Business Plan Workflow

Click here to access the Business Plan Checklist!

Types of business plans

There are varying types of business plans depending on the purpose and usage:

• Business plan for start-ups A winning start-up business plan can be a game-changer to attract funding from investors. It should weave all key components to make it a promising investment – company overview, products/services, estimated costs, market evaluation, competition insights, risk analysis, cash flow projections, marketing strategies, and the management team’s strengths.
• Strategic business plan It lays down the details of a company’s strategies to fulfill its goals. It outlines the company’s vision, mission, strategy, and goals, the driving force for success, and the timelines.
• Internal business plan This plan moves the needle and steers focus on in-house planning and growth. It ensures that everyone grasps the company’s overall plan for growth. It prepares organizations to move forward by identifying and removing any blockages and assess and revise the strategies when required.
• Operations business plan It is an internal plan that maps out the nitty-gritties of a company’s operations plans and activities.
• Development business plan This is a development or an expansion plan of a business. It is used for both internal and external purposes. An external growth plan is written to attract investment from external sources. An internal development plan counts on its own business capabilities, revenue, and resources. It works as a guide to provide the right directions.
• Feasibility business plan A company scouts out a feasibility study when it plans to foray into a new venture, new product, or a new market. It articulates: How well will the product or service perform? Is the business promising? What is the expected return on investment (ROI)?
• What-if business plan At a point where you face unordinary conditions, you need a variation on the existing plan. A what-if business plan arranges to fall back on a contingency plan when things go sideways. For example, an unexpected surge in demand, new competition, drop in market size, etc.

A business proposal is the mantra that draws you closer to win a customer or bag a project.

Generally, it is a formal response to a Request for Proposal (RFP) sent by a prospective client looking for the right solution to their problems. It explains the particulars of a seller’s offerings and convinces the buyer that the proposed solution is the gateway to their business’s success and productivity.

“And, after all, winning business is what writing proposals is all about.” ― Tom Sant, Persuasive Business Proposals: Writing to Win More Customers, Clients, and Contracts

A business proposal comprises of four main points :

• What are the challenges of prospective clients?
• How can our solution solve their problems?
• Why should they choose us over others?
• What are the best pricing options available?

Why do you need a business proposal?

A business proposal is a testimony in itself that asserts, “I am the best you can get.”

Here are the reasons why you should and must make a business proposal :

• Create or leverage a business opportunity The prime motive is to win, win, and win! It is a medium to encash a business opportunity by putting forward an I-can’t-say-no-to-this proposal.
• Stand out from the competition It persuades the prospects that you are way ahead of other rivals in the industry in terms of the value you offer.

How to prepare for a business proposal

The heart of preparedness is research and further research. After all, the devil is in the details.

Talk to prospective customers, visit their website(s), read published articles, and be a know-it-all for your prospective clients.

Sort out the ‘who’ First and foremost, dig every possible information about the client:

• Who is the client (its vision, mission, and goals)?
• What does it produce?
• What are its key markets and target customers?
• What are its business growth plans?
• Which markets is it presently serving?
• Also, figure out the kingpins of a proposal approval process. This will help you to create a comprehensive proposal with all the necessary answers expected by the decision-makers.

Understand the challenges Find what’s bothering them and what is causing hindrance to their business success. Learn about their existing solution and its challenges.

Stitch the glitch and offer the best solution After a thorough review of all the points mentioned above, find the best solution to your prospective client’s problems.

List down key differentiators This will help you to beat the competition in the dust. It draws a comparison chart and puts you in a superior position.

According to Gray Mackenzie, founder of GuavaBox ,

“Prior to submitting a proposal, make sure you have clearly defined all the major points verbally with the potential customer. By discussing the scope, cost, timeline, and details prior to submitting a written proposal, you can uncover objections earlier in the process.” – Gray Mackenzie, 10 Sales Experts Share Their Best Business Proposal Tips

How to write a business proposal

Let’s get down to the fundamental elements that form a business proposal. Learn how to create a business proposal that stands out and close sales.

Title page/Cover page The name says it all.

Pretty easy-peasy thing to understand, right? After all, you have been creating the title pages since school days.

Still, make a note: Always write a gripping title that intrigues prospective clients’ interest and urges them to read on.

Other components that should be included on the title page are:

• Your company name and logo;
• Prospective customer’s name;
• Submission date.

Table of contents (TOC) As the name suggests, a TOC is a well-structured layout of the document. It helps to skim and scan and navigate speedily through different sections of a business proposal.

Executive summary It sets the tone for a proposal and makes the reader inquisitive about reading subsequent sections. It sums up the entire business proposal – the purpose of sharing the proposal and why and how your solution is the right fit for the prospective client. Leave no stone unturned to boast about your offerings in the executive summary.

Details of offerings This is an in-depth description of the products or services your company has to offer.

How will the offerings solve the client’s problems? This explains why your products/services are the right fit to address a prospective client’s needs and why it is a better alternative than the competition.

The methodology/implementation of offerings This section is a blanket explanation of how the promised deliverables will be executed. It provides step-by-step clarity on each action along with timelines. It gives the client peace of mind and builds trust and confidence in the offering.

Pricing, payment, and legal matters Here, you talk about the pricing structure, applicable taxes, payment schedule, cancellation policy, and how you plan to solve the legal matters (if any arise in the future).

Here are some tips for this section:

• Ensure that the pricing details are concise and complete.
• Providing a comparison chart with different pricing options helps to make decisions faster.
• Don’t go overboard with pricing, and also, don’t underrate yourself.
• Always refer to the RFP and verify if every request has been fulfilled.
• Separate out and create a new legal section if your business demands an extensive list of legal requirements.

Details about your company This is an exhaustive overview of your company. Don’t forget to add relevant customer testimonials, case studies, or success stories to build your case among prospective customers.

Signatures and Call to action This is the moment that gets butterflies in your stomach; the closure. This is the concluding part of a business proposal. Here (if all your prayers get answered), you and your client sign the proposal and secure the deal. Hurray!

Pro tip: Once you send the business proposal, don’t sit idle in your cocoon day-dreaming of winning the proposal. Always proactively do follow-ups with the prospective clients and clarify their doubts.

For start-ups or small businesses, drafting a business proposal can be an unnerving experience. They work fingers to the bone to write a perfect business proposal. Spending too much time on it might lead to missing the deadline and eventually losing out on a golden opportunity.

According to a report by Better Proposal , sending a business proposal within 24 hours increases the likelihood of winning the deal by 25%.

Here’s the secret sauce to speedily create flawless business proposals :

First, pick a professionally vetted and ready-to-use business proposal template and draft a business proposal like a cakewalk. Such as the Business Proposal Template included below.

Next, always use Process Street ‘s super-powered business proposal template checklist and ensure no step gets missed in the process.

Business Proposal Template Checklist

It even turns out a blessing for big businesses since they have to draft multiple proposals all the time. Templates and checklists save a lot of time, enhance productivity, and increase the chances of success.

Types of business proposals

Majorly, there are two types of business proposals:

Solicited business proposal Also known as an invited business proposal, it comes into play when a buyer, or a company, outlines its requirements and requests suppliers to present an offer. It can be a response to a public tender issued by big corporations or government agencies.

Alternatively, a solicited business proposal can also be submitted as a response to the RFP shared by a prospective client.

The difference between the two is that while the earlier one is open to all bidders, the latter’s scope is limited as it is shared with shortlisted suppliers.

Pro tip: Do a thorough check before submitting an invited business proposal. Missing out on-minute details can kick you out from their consideration list.

Unsolicited business proposal An uninvited or unsolicited business proposal is a proactive attempt to create a business opportunity. This proposal is sent to prospective clients without being asked.

The good news is, there are slim chances of your rival sending a business proposal simultaneously, so less or no competition.

The bad news is, it might breathe in the customer’s inbox for a few days and then, without being read, depart to the heavenly abode -the trash folder.

But still, like a cold call, it leaves some impression on prospective clients and shoots up the chances to cut a deal in the long run.

Pro tip: An unsolicited business proposal is mostly sent through emails. Make certain to write an attention-grabbing headline and a convincing explanation to draw attention.

Here’s a comparison chart that distinguishes between business plan and business proposal:

Bonus: How to make ‘wow’ business plans and business proposals

Here are the secret ingredients to make awesome and captivating business plans and proposals:

Follow the principle of KISS (Keep it simple, silly)

This is not the right place to brag about your vocabulary skills. You want the prospective customer to focus on reading rather than wasting time looking up for a word.

Always remember! Communication is the key.

So, go simple and ditch those heavy jargons.

Don’t wear-out the pupils of your prospects with long-winded documents. Capitalize on the multisensorial abilities of humans as well.

Visuals increase people’s desire to read content by 80%.

Leverage the power of visuals and make your document easily graspable by adding graphs, infographics, flowcharts, tables, images, and videos.

Add social proof

Do not forget to add positive feedback or customer testimonials. If similar projects have been delivered in the past, do add relevant links and case studies of that work. It helps to build trust and strengthen your case.

“Make sure you have great success stories that you can share with potential clients. At the end of the day, most, if not all, potential clients want to know you will provide value to them and generate positive ROI.” – Mathew Bivens, Podcast and marketing consultant,  10 Sales Experts Share Their Best Business Proposal Tips

Proofread ️

Ensure the document is free from grammar and spelling errors.

Follow brand guidelines

Your document should reflect your brand. Bring consistency in all your documents and design them as per the brand guidelines.

Use document builder tools ️

Time is money!

The likelihood of getting a ‘yes’ on your business plans and business proposals depends on how fast you can create a flawless document.

Empower your organization with a smart and all-in-one document builder tool like Revv – create, communicate, collaborate, and close your documents in no time.

Business plans and business proposals are two different worlds with distinct purposes and goals. But, both play a prime role in increasing the odds of business success.

People often get the wrong end of the stick and ask for a business plan when they mean business proposal or vice-versa.

But, we don’t need to worry about that since we are now clear on what is what.

Cheers to us!

P.S: Don’t forget to subscribe to the Process Street blog to get notified of our upcoming articles. We also have a podcast “Tech Out Loud” featuring content written by respected industry leaders such as Peep Laja , Sujan Patel , Tomasz Tunguz , and more!

What is your take on business plans and business proposals? Have you ever got your wires crossed with these two terminologies? Don’t forget to post your comments below.

Get our posts & product updates earlier by simply subscribing

Molly Stovold

Hey, I'm Molly, Junior Content Writer at Process Street with a First-Class Honors Degree in Development Studies & Spanish. I love writing so much that I also have my own blog where I write about everything that interests me; from traveling solo to mindful living. Check it out at mollystovold.com .

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Take control of your workflows today

Business Plan vs Proposal: An In-Depth Comparison

Explore the distinguishing factors and circumstances that make a Business Plan or Business Proposal more fitting for driving success and growth in your enterprise. Gain insights into the purpose, audience, and strategic value of each document, and learn when it’s best to utilize a Business Plan or pitch with a Business Proposal.

Table of Contents

What is the Main Difference Between a Business Plan and a Business Proposal?

The main difference between a Business Plan and a Business Proposal is that a business plan is a formal document that outlines the company’s goals, strategies, market analysis, financial needs, and projections for the future, aimed at providing a roadmap for the business’s success and often used to secure funding or guide the management team. On the other hand, a business proposal is a tailored document created to pitch a specific product, service, or solution to a potential client or partner, detailing how the business can fulfill a particular need or solve a specific problem for the recipient, often with the goal of initiating a transaction or project.

Understanding Business Plans and Business Proposals

A Business Plan is a comprehensive document that outlines a company’s objectives, strategies, market analysis, financial forecasts, and operational structures. It primarily serves as an internal roadmap for the company’s strategic direction and helps to attract investors by showcasing the company’s potential for growth and profit. Business plans are often developed during the foundational stages of a company and updated periodically to guide the company through different stages of growth.

A Business Proposal , on the other hand, is a targeted pitch provided to a specific client or partner to convince them to do business with you. Unlike a business plan, a business proposal is not a broad overview of the entire company. Instead, it is a customized suggestion that outlines how your business can solve a particular problem or meet a specific need of the prospective client. The proposal highlights the benefits of selecting your company’s products or services and typically includes pricing, terms, and conditions for a potential engagement or project.

Key Differences between a Business Plan and a Business Proposal

• Purpose : A business plan is primarily used for strategic planning and securing investment, while a business proposal is aimed at winning a specific contract or project.
• Audience : The audience for a business plan is typically potential investors, stakeholders, or company management. On the other hand, the business proposal is directed towards a specific client or partner.
• Focus : A business plan covers the entire company’s goals and operations, whereas a business proposal targets a specific offering for the client.
• Details : While business plans include detailed financial projections and market analysis, business proposals focus on how your company can meet the client’s needs and the costs associated with your proposition.
• Frequency : Business plans are created infrequently, often at startup or significant growth stages, while business proposals are generated as needed when pursuing new business opportunities.
• Structure : Business plans have a standard structure, including an executive summary, company overview, products/services, and financials, whereas proposals are tailored to the client’s request.
• Standardization : Business plans tend to follow a similar format from one to the next, while proposals are highly customized to align with the potential client’s requirements.
• Duration : The time horizon in a business plan can span several years, reflecting long-term planning, but a business proposal typically concerns the timeframe for a specific project or service offering.

Key Similarities between a Business Plan and a Business Proposal

• Strategic Elements : Both documents outline strategic approaches, whether for the company as a whole or a specific project.
• Research : Thorough market research is essential in creating either a business plan or a business proposal to ensure feasibility and competitiveness .
• Objective Setting : Each document includes clear objectives that the company wishes to achieve, be it long-term company goals or objectives of a contract.
• Persuasive Nature : Both are meant to be persuasive documents that convince the reader to invest in the company or to hire the company for services/products.
• Professional Presentation : A business plan and a business proposal should both be presented in a professional manner, well-organized and free of errors, to make the best impression.
• Financial Information : Financial aspects are crucial in both; while a business plan may have more comprehensive financial projections, a proposal should still outline costs and pricing models.
• Action Plan : Action steps or milestones are outlined in both to guide the intended strategy into practical steps or to give the prospective client a clear timeline for project completion.

Advantages of a Business Plan Over a Business Proposal

• Clarity and focus : A business plan provides a clear roadmap for your company , detailing your objectives, strategies, and financial projections. It enables you to stay focused on your long-term goals and the steps required to reach them.
• Risk assessment : It allows for a thorough risk assessment, helping you foresee potential challenges and devise strategies to mitigate them.
• Investor attraction : A well-crafted business plan is essential for attracting investors and lenders as it showcases the viability and profitability of your business idea.
• Strategic planning : The business plan acts as a strategic planning tool, helping you to align your short-term and long-term goals with the overall vision of the business.
• Operational guidance : It provides detailed operational guidance, outlining day-to-day activities, management responsibilities, and the organizational structure.
• Performance tracking : By setting benchmarks and performance metrics, a business plan makes it easier to track progress and measure success over time.
• Market analysis : A business plan includes an extensive market analysis, offering insights into your target market, competition, and market trends, which are crucial for making informed decisions.

Disadvantages of a Business Plan Compared to a Business Proposal

• Inflexibility : A business plan can be quite rigid, with a focus on long-term strategies and projections that might not adapt well to rapid changes in the market.
• Time-consuming : Preparing a comprehensive business plan requires a significant amount of time and effort, potentially diverting resources from immediate business opportunities.
• Outdated information : A business plan might quickly become outdated if the market or the company’s circumstances change, requiring frequent revisions.
• Cost : The production of a business plan can be costly, especially if it necessitates the expertise of consultants or outside advisers.
• Overemphasis on planning : There’s a risk of over-planning and under-executing, where too much time is spent on creating the perfect business plan instead of taking action.
• Complexity : A business plan’s complexity might be intimidating or overwhelming for small business owners who may prefer the simplicity and directness of a business proposal.
• Less tailored : While a business proposal is often customized to the needs and interests of a specific client or investor, a business plan is a broader document that may not address specific concerns or questions from potential stakeholders.

Advantages of a Business Proposal Over a Business Plan

• Focus on Specificity : A business proposal is usually tailored to a specific client or project, which means it’s highly targeted and practical. This specificity allows the business to directly address the client’s needs and provide a customized solution that a general business plan cannot offer.
• Rapid Execution : Proposals tend to be shorter and more concise, which allows for quicker evaluation and a faster start on the project. Businesses can get to work immediately after the proposal is accepted, shortening the time from planning to action.
• Persuasive Element : A business proposal aims to persuade a particular client or investor to buy into the idea, product, or service. This persuasive nature means that proposals often focus on benefits and competitive advantages, potentially leading to a higher success rate in securing funding or partnership.
• Adaptability : Since a proposal is typically for a particular client or project, it can be easily adjusted for different opportunities or audiences without reworking an entire business plan. This adaptability makes it more versatile in responding to market changes.
• Ease of Preparation : A business proposal can be less daunting to create than a full-blown business plan as it generally does not require as much market analysis and financial forecasting. It allows the business to focus on the immediate opportunity rather than extensive strategic planning.
• Potential for Immediate Feedback : When you present a business proposal, you often do so in a setting that allows for immediate questions and feedback. This gives you the chance to quickly address concerns, modify your offer, and improve the chances of an agreement.
• Enhanced Relationship Building : Crafting a proposal requires understanding the client’s needs and objectives deeply, often leading to stronger client-business relationships. This rapport can be beneficial for both future business and referrals.

Disadvantages of a Business Proposal When Compared to a Business Plan

• Lack of Long-term Vision : A business proposal is often focused on the immediate project and may not outline the long-term strategic direction of the company as comprehensively as a business plan would.
• Limited Scope : Proposals generally address specific aspects of a business’s operations rather than providing a complete picture. This narrow focus might overlook broader opportunities or challenges that a business plan would typically account for.
• Missed Detail : While business proposals are succinct, the brevity can sometimes result in the omission of important details that would be standard in a business plan, such as thorough market analysis or full financial projections.
• Potential Dependency : If a company relies too much on individual proposals for direction, it might find itself without a cohesive strategy which a business plan is designed to provide. This can lead to a reactive rather than proactive business approach.
• Risk of Assuming Knowledge : Proposals may assume that the reader has a certain level of understanding about the company or product, which can be a risky assumption if the reader is new to the business or its offerings.
• Need for Customization : Each business proposal needs to be customized for its intended audience, which can be resource-intensive when dealing with multiple prospects or regular tender submissions.
• Limited Investor Appeal : Investors often prefer to understand the comprehensive strategy and the broader financial implications of a business, something a focused business proposal may fail to communicate in comparison to a detailed business plan.

Situations When a Business Plan Is Preferable to a Business Proposal

• Establishing Clear Direction : When a new business is just starting out, laying out a comprehensive business plan is crucial for establishing a clear direction and objectives for the business. It serves as a roadmap for where the owners want to take the company and how they plan to get there.
• Securing Funding from Investors : A business plan is generally required for entrepreneurs seeking investment or loans. It presents detailed financial projections, market analysis, and business strategies that are essential to convince investors or banks to finance the venture.
• Long-term Strategic Planning : For setting long-term goals and defining the vision of the business, a business plan is more appropriate because it takes a broader view of the business’s place in the market and its growth strategy over the coming years.
• Developing Comprehensive Financial Projections : A business plan includes detailed financial forecasts that cover multiple years. This level of detail is necessary for stakeholders to understand the financial trajectory and potential of the company .

Situations When a Business Proposal Is Preferable to a Business Plan

• Responding to Specific Client Requests : A business proposal is tailored to the needs and specifications of a potential client or partner. When a business wants to offer solutions to another company’s problem, a proposal is best suited for outlining how it will meet those specific needs.
• Competitive Bidding Situations : When entering a bid to win a contract, a business proposal is more advantageous as it focuses on why the business is the best fit for the project, detailing its approach, unique benefits, and value proposition.
• Establishing Partnership Agreements : If a company is looking to form a collaboration or partnership, a business proposal lays out the terms and benefits of the partnership, which is more specific than the broader scope of a business plan.
• Project-driven Opportunities : For businesses that operate on a project-by-project basis, such as construction or consulting, business proposals are the better tool. They provide prospective clients with a detailed breakdown of the objectives, strategies, and costs for each unique project.

What components should be included in a business plan?

• Executive Summary : An overview of the business and its strategy
• Company Description : Legal establishment, history, start-up plans, etc.
• Market Analysis : Industry, market and competitor research
• Organization and Management : Business and management structure
• Service or Product Line : Description of what you’re selling
• Marketing and Sales Strategies : How you’ll attract and retain customers
• Funding Request : Your current funding requirements
• Financial Projections : Balance sheets, cash flow statements, and income statement forecasts
• Appendix : An optional section that includes résumés, permits, and other legal documents

How often should a business plan be revised?

A business plan should be reviewed and revised at least annually, or more frequently if there are significant changes in the market, the business model, or if new challenges or opportunities arise .

In what scenarios is a business proposal unnecessary?

A business proposal may not be necessary when transactions are straightforward and do not require detailed explanations, such as standard retail sales or when there is already an established relationship with the client based on trust and familiarity.

Can a business proposal lead to a long-term relationship with a client?

Absolutely. If a proposal leads to a successful project and client satisfaction, it can serve as the foundation for a long-term business relationship and future projects or collaborations.

What is an unsolicited business proposal?

An unsolicited business proposal is one that is offered without an explicit request from the potential client. It often reflects the proposer’s initiative to identify potential needs of the recipient and offer solutions to unaddressed challenges.

How can you make a business proposal stand out?

To make a business proposal stand out, it should clearly articulate the unique value proposition, be tailored to the client’s specific needs, contain compelling and concise content, and demonstrate a deep understanding of the client’s industry and challenges.

Are there any legal considerations when drafting a business proposal?

Yes, a business proposal should ensure that all claims and statements are truthful and that no proprietary or confidential information is disclosed without permission. Additionally, the terms and conditions should be clearly outlined to avoid any misunderstandings, and if accepted, it can be the basis for a legally binding contract.

Business Plan vs Proposal Summary

The decision between a Business Plan and a Business Proposal hinges on the specific requirements, goals, and context of your enterprise. A Business Plan lays the foundation for your company’s long-term strategy, risk mitigation, and operational guidance, with an expansive view of the business’s aims and the means to attract investors. Conversely, a Business Proposal concentrates on the immediacy of client-specific projects, presenting a tailored solution with a persuasive edge to secure contracts and foster client relationships swiftly.

About The Author

Hidayat Rizvi

Related posts.

Farmer vs Businessman: A Detailed Comparative Analysis of Two Vital Roles

Salesman vs Businessman: Comprehensive Analysis for Aspiring Professionals

Difference Between Business Improvement and Business Process Reengineering

Difference Between Indian and American Business Culture

Leave a comment cancel reply.

Your email address will not be published. Required fields are marked *

Important Links

• Privacy Policy
• Terms and Conditions

Social Networks

• hidayat.rizvi.1
• @HidayatRizvi
• hidayat_rizvi_2000
• hidayat-rizvi-b0788b10

HidayatRizvi.com © 2024. All Rights Reserved

Get a free consultation, enter your contact details and i will get in touch, send a message. i will respond quickly, try quickbooks free for 30 days, get started with quickbooks in 30 minutes*., *based on a survey of small businesses using quickbook online conducted september 2018..

Business Plan vs. Business Proposal

What's the difference.

A business plan is a comprehensive document that outlines the goals, strategies, and financial projections of a business over a specific period of time. It serves as a roadmap for the business and is typically used internally to guide decision-making and operations. On the other hand, a business proposal is a document that is created to pitch a specific product or service to potential clients or investors. It outlines the benefits, costs, and potential outcomes of the proposed project in order to persuade the recipient to take action. While a business plan focuses on the overall strategy and operations of a business, a business proposal is more targeted and specific to a particular project or opportunity.

Further Detail

Introduction.

When it comes to starting a new business or expanding an existing one, having a well-thought-out plan is essential. Two common documents used in the business world are the business plan and the business proposal. While they may sound similar, they serve different purposes and have distinct attributes that set them apart.

A business plan is a comprehensive document that outlines the goals, strategies, and financial projections of a business. It serves as a roadmap for the business and is typically used internally to guide decision-making and track progress. On the other hand, a business proposal is a document that is used to pitch a product or service to potential clients or investors. It outlines the benefits of the offering and explains why the recipient should choose to work with the business.

One of the key differences between a business plan and a business proposal is their scope. A business plan is typically a long-term document that covers all aspects of the business, including marketing, operations, and financials. It is meant to provide a comprehensive overview of the business and its goals. On the other hand, a business proposal is more focused and specific. It is tailored to a particular project or opportunity and is designed to persuade the recipient to take a specific action, such as investing in the business or purchasing a product.

Another difference between a business plan and a business proposal is their content. A business plan typically includes sections such as an executive summary, company description, market analysis, marketing strategy, operational plan, and financial projections. It is a detailed document that provides a thorough overview of the business and its operations. In contrast, a business proposal is more concise and focused. It usually includes sections such as an introduction, problem statement, proposed solution, benefits, and pricing. The goal of a business proposal is to persuade the recipient to take a specific action, such as signing a contract or making a purchase.

Business plans are typically used internally by business owners, managers, and stakeholders to guide decision-making and track progress. They are also used to secure funding from investors or lenders. A well-written business plan can help attract investors and convince them of the viability of the business. On the other hand, business proposals are used externally to pitch products or services to potential clients or investors. They are often used in sales and marketing efforts to generate new business opportunities. A well-crafted business proposal can help win new clients and grow the business.

In conclusion, while business plans and business proposals may sound similar, they serve different purposes and have distinct attributes that set them apart. A business plan is a comprehensive document that outlines the goals, strategies, and financial projections of a business, while a business proposal is a focused document that is used to pitch a product or service to potential clients or investors. Understanding the differences between the two documents is essential for any business owner looking to start or grow their business.

Comparisons may contain inaccurate information about people, places, or facts. Please report any issues.

AI ASSISTANTS

Upmetrics AI Your go-to AI-powered business assistant

AI Writing Assist Write, translate, and refine your text with AI

AI Financial Assist Automated forecasts and AI recommendations

TOP FEATURES

AI Business Plan Generator Create business plans faster with AI

Financial Forecasting Make accurate financial forecasts faster

INTEGRATIONS

QuickBooks (Coming soon...) Sync and compare with your QuickBooks data

Strategic Planning Develop actionable strategic plans on-the-go

AI Pitch Deck Generator Use AI to generate your investor deck

Xero Sync and compare with your Xero data

See how easy it is to plan your business with Upmetrics: Take a Tour  →

AI-powered business planning software

Very useful business plan software connected to AI. Saved a lot of time, money and energy. Their team is highly skilled and always here to help.

- Julien López

BY USE CASE

Secure Funding, Loans, Grants Create plans that get you funded

Starting & Launching a Business Plan your business for launch and success

Validate Your Business Idea Discover the potential of your business idea

E2 Visa Business Plan Create a business plan to support your E2 - Visa

Business Consultant & Advisors Plan with your team members and clients

Incubators & Accelerators Empowering startups for growth

Business Schools & Educators Simplify business plan education for students

Students & Learners Your e-tutor for business planning

• Sample Plans

WHY UPMETRICS?

Reviews See why customers love Upmetrics

Customer Success Stories Read our customer success stories

Blogs Latest business planning tips and strategies

Strategic Planning Templates Ready-to-use strategic plan templates

Business Plan Course A step-by-step business planning course

Help Center Help & guides to plan your business

Ebooks & Guides A free resource hub on business planning

Business Tools Free business tools to help you grow

Business Plan vs. Business Proposal

Business Plan Template

• May 15, 2024

When you start a new business or own a young company, you often hear terms like business plan or business proposal. But the question is: do you need a business plan? Or is it a proposal that you need? Or both?

Being new to the game, these terms can seem quite intimidating, and you probably don’t know where to start.

Don’t worry. We’ve created a simple business plan vs. business proposal comparison so you can determine which one to prioritize.

Let’s start by defining them!

What is a business plan?

A business plan documents a company, its business objectives, and how it plans to achieve them. It includes data regarding business goals, marketing strategies, products, services, market research, financial projections, and the dream team.

Pretty much everything a company will use to achieve its intentions.

Okay! And what about the business proposal?

What is a business proposal?

On the other hand, a business proposal is a document that describes your business’s offerings, like a product or service, to help you win potential clients and partners.

It also outlines your business, including its unique value proposition and how your company can help solve customers’ specific problems.

Now that we know the two business documents aren’t the same let’s see how they are different and in what ways.

Business plan vs. business proposal: How are they different?

Even though used interchangeably (and wrongly), a business plan and proposal are poles apart. Here’s how:

Before you ask why you need a business plan , it’s, first and foremost, to legitimize a business idea that you’ve been brewing in your head.

But it’s also to document company strategies, objectives, and operations that help you create a clear idea on how to achieve your company goals. All that data becomes one source of truth that works as a communication tool. That becomes your golden ticket to wooing investors and lenders.

On the other hand, a business proposal’s purpose is entirely about convincing a potential client and partner that your project is worth their time and money.

Unlike a business plan, it only focuses on a specific product, service, or opportunity instead of the entire business.

Create visually appealing business plans with our

AI Business Plan Generator

Plans starting from $7/month

2. Components and Structure

When you write your business plan , it will typically follow a specific structure containing the following components:

• Executive summary: This summary summarizes your entire business plan, highlighting the most important aspects, such as your company’s mission, financial projections, and vision statement.
• Company description: It reveals your company’s history, mission, value proposition, detailed description of products and services, achievements, and target market.
• Industry or market analysis: This is an analysis of the industry landscape to gain statistics about market needs, size, trends, competitors, and target demographics.
• Marketing plan: This includes different marketing strategies and approaches your company will take to market its products and services. It can be your pricing strategy, sales and distribution plan, and unique selling proposition.
• Operations plan: This component reveals how a company’s operations would look on a day-to-day basis.
• Organizational structure and management team: This section provides an overview of your company’s structure and how its management teams will execute the operations plan effectively.
• Financial projections and goals: This section contains a company’s financial performance, including income, sales goals, cash flow projections, and balance sheets.

Similarly, when you write a business proposal , you’ll typically encounter a structure as well. It goes like this:

• Cover or title page: To make a first impression. It can contain aesthetic visuals.
• Introduction: To introduce yourself and your company. Also, briefly explain how your product or service will solve a specific problem.
• Statement of the problem or project: To explain your understanding of the customer’s need, its importance in addressing it, and your right-fit, proposed solution.
• Table of contents: To make your data essay accessible.
• Project details: To communicate essential data, including objective, scope, timeline, key stakeholders, disclaimers, cost, and conclusion.
• Agreement with a signature box: To obtain the client’s signature.

3. Audience

A business plan’s target audience is internal stakeholders, investors, and lenders interested in your company’s long-term goals and path to success.

On the flip side, business proposals go to potential clients from established businesses. They target external or new clients, partners, or funding agencies with a specific focus on:

• Addressing customer needs
• Solving customer problems
• Or seizing opportunities

Do you know how many types of businesses exist today? Two words: Too many!

Now, that implies there are many different types of business plans . But here’s a quick list of the most common types:

• Startup business plan: This plan describes the foundation of a new business with room to adjust as the company grows. It’s given to potential investors to ask for startup funding.
• Internal business plan: In this plan, company leaders communicate business goals, strategy, and performance. The aim is to keep the board and the team in sync regarding business objectives.
• Strategic business plan: This plan documents the framework required to keep long-term goals and company vision intact.
• Growth business plan: Also known as an expansion plan, this plan describes how a company is trying to grow and hence requires greater resources like more employees, funds, materials, etc.

Business proposal types can be broadly divided into two categories:

• Solicited business proposals: In this case, a prospective client requests the informational document from you directly or expects to receive it—implicating their interest in your products or services.
• Unsolicited business proposals: Here, no client requests the documents. Instead, you take the cold email approach and send your unsolicited proposals to people you think are prospective clients or partners.

Business Proposal and Planning Best Practices

It’s already challenging to overcome market entry barriers in saturated markets and persuade potential investors. Creating a compelling business proposal and plan shouldn’t be too!

Here’s how to go about it:

• Clearly define your business goals and objectives.
• Make sure you get your audience right. (Business plans and proposals have different audiences, remember?)
• Conduct in depth research and analysis.
• Use pictures along with words, such as visuals and statistics, to support your claims and projections.
• Pay attention to the writing style, structure, and tone depending on your audience and purpose.
• Use software like an AI business plan generator or proposal templates to save time and effort.
• Review and revise regularly.

Start creating effective business plans and proposals using Upmetrics

It’s okay if you were confused about the difference between a business plan and a proposal before today. You now know the distinction between the two lies in their purpose, components, structure, audience, and type.

While a business plan provides a thorough overview of the entire business and targets internal stakeholders, investors, and lenders, a business proposal focuses on specific projects or opportunities and targets external clients, partners, or funding agencies.

When you understand these differences and employ the best practices in creating both documents, your business can effectively communicate its vision, strategy, and value proposition, securing a solid spot in this competitive world.

Build your Business Plan Faster

with step-by-step Guidance & AI Assistance.

Frequently Asked Questions

What is the difference between a business plan and a business idea.

A business idea is a concept’s initial spark for a product, service, or opportunity. However, a business plan is a detailed document outlining how a business idea will be executed and managed.

How many pages is a business proposal?

A good proposal is 10-20 pages long. However, it can be longer based on the industry, buyer requirements, product or service type, the scale of buyer needs, and other aspects unique to the business.

What comes first, a business plan or business proposal?

The business plan comes first since it legitimizes a business idea. Then comes a proposal because it’s specific to a particular project or opportunity and not the business as a whole.

Do I actually need a business plan?

A business plan is a detailed roadmap for your entire venture. It helps you gain investments, beat competition, make sound decisions, communicate with stakeholders, and identify risks. So, yes, you need a business plan.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Reach Your Goals with Accurate Planning

Difference Between a Business Plan and a Business Proposal

Table of contents

It’s natural to get confused between a business proposal and a business plan if you are planning to turn your idea into reality. While business proposals and plans may sound similar on the surface, they have differences — such as distinct purposes and formats. 

A business plan describes your business goals, strategies, and financial projections. A business proposal, on the other hand, proposes a specific solution to a problem or opportunity and helps you persuade the relevant stakeholder to invest in your business. 

However, writing a business proposal or a business plan can be challenging, especially if you are confused about their purpose. In this blog, we will explain the difference between a business plan and a business proposal and its major components.

Business Plan

A business plan tells the investors how you plan to ship your product to enough people to clock revenue. It’s about the strategies that will make you the first buck. 

A business plan keeps your team on the same page — you can use it as a guiding light. It can help you track the progress of your business, give you a roadmap, and help you make decisions about your business’s future.

Plus, it can be helpful when it comes to pitching your business idea to a third party, for example, when seeking a loan.

Components of a Business Plan

A business plan is majorly divided into three sections, which include an executive summary, a sales and marketing strategy, and a financial plan. 

An executive summary is a brief, clear, and compelling overview of your business. It is usually the first section of the document, and it contains the most important information, such as your strengths. 

These can be further broken down into the following sections:

• Description of products and services, including mission, vision, and objectives of the business
• Target market
• Competitive advantage
• Industry and Competitor Analysis
• Marketing strategy
• Operating plan
• Team structure and qualifications
• Internal business analysis
• Management introduction 
• Financial analysis
• Cash flow statement or sales forecast
• Break-even analysis

Business Proposal

A business proposal is a separate written document that outlines a specific business opportunity, project, or idea and presents it to potential clients. 

It intends to persuade them to take action, such as accepting a business deal or entering into a partnership, thereby helping you get new customers or partners. 

A business proposal should be customized to the needs and interests of the receiver. A generic proposal will rarely help you meet your business goals. 

At the same time, ensure your proposal is well-organized, persuasive, and creative. Check out these free business proposal templates to impress your clients. 

Solicited and Unsolicited Business Proposals

Proposals are solicited from you, or you send them on your initiative. 

You write a solicited proposal in response to a prospect’s or customer’s request for a product. They may ask you verbally, or they may issue a written request for proposals (RFP). A solicited business proposal contains a detailed description of the product, service, or solution that you offer to solve the customer's problem or need. It’s generally easier to write because you know what the customer wants or expects. 

But if you’re writing the proposal on your own, which is the case with unsolicited business proposals, then you’re convincing the receiver to work with you or buy from you. Such proposals are often challenging to write because you have to convince them they have a problem and you have a solution.

Components of a Business Proposal

The following are the key components of a business proposal :

• Executive summary
• Introduction
• Problem statement
• Scope of work
• Benefits of Return on Investment (ROI)
• Call to Action (CTA)

Business Plan vs. Business Proposal

While a business plan outlines your goals and explains how you will achieve them, a proposal sells your product to potential customers.

In the following table, we have summarized the main differences between a business plan and a business proposal:

Streamline the proposal creation process

To wrap up, a business proposal is a document that pitches your products or services to a potential client, while a business plan outlines your goals, strategies, and financial projections for your business. 

With business management software like Cone, you can easily streamline and automate your proposal creation while ensuring your proposals are bespoke and customized. Sign up for free and experience the seamless proposal creation process for yourself. While you’re at it, check out other business proposals and management resources we have for you.

Difference Between Business Plan and Business Proposal

One of the most searched queries on Google is "business proposal vs business plan", and we are here to break the confusion.

April 13, 2023

What's Inside?

You are starting a new business, and you aren't sure what you need to do. You heard that you needed a business proposal and a business plan, but you weren't sure what's the difference between them.

You did some research and couldn't find what you are looking for... You decided to create both of them, but you need weeks to write and refine them.

Don't worry, we are here to remove this confusing process. Let's see what's the difference between them. You may, and probably do need both of them. But which one should be your priority?

The Difference Between a Business Plan and a Business Proposal

When you're starting a business, one of the most important things you'll need to do is create a business plan . This document will outline your company's goals and strategies for achieving them over the next five years.

A business proposal , on the other hand, is a sales document that you put together to pitch potential projects to clients. It's not the same as a business plan, and it usually includes cost quotes for potential projects.

The main difference between a business proposal and a business plan is that, while a business plan is informative, a business proposal is intended to showcase operations, goals, and potential.

Executive Summary

The executive summary of a business plan will include information about the company leadership structure or the introduction of management. Generally, business plans include an executive summary part while business plans don't.

We have seen some samples that use executive summaries but since the main goal is to close a deal. We suggest keeping them short and clean.

The business proposal format depends on whether the business is solicited or unsolicited . Details of products and services offered, the scope of work and responses to specific questions in an RFP are included in a business proposal.

A business plan documents the vision of a business and how it will be achieved. A business proposal offers comprehensive information for potential investors, suppliers, accountants, etc.

A proposal shows the external player what the company is all about and how it intends to carry out its project. Keep these differences in mind when you're putting together your next business presentation --you'll need to tailor your content accordingly!

What Are Business Plans?

A business plan is a document that outlines the business goals, strategies, and tactics a company will use to achieve those goals. The business plan also includes an overview of the company, its management team, the target market, and the products and services the company plans to offer.

It usually includes information about the company's products and services, target market, marketing plans , financial forecasts, and management team bios.

Here's a sample template to use while creating a detailed business plan.

What Is The Purpose of a Business Plan?

A business plan is a key document for any business. It lays out the goals and strategy of the business and helps to ensure that everyone involved in the business is on the same page. It can also be used as a tool to help secure funding from investors or banks.

A business plan is a document that outlines the strategy and goals of a company. It can be used as a planning tool , to track progress, or as a basis for making decisions . A well-written business plan provides a roadmap for the business , and it can help attract investors or partners.

There are many reasons to create a business plan. Some of the most common reasons include:

• To track progress - A business plan can help you track your progress and ensure that you are on track to achieve your goals.
• To make decisions - A business plan can provide guidance when making decisions about the future of your company.
• As a planning tool - A business plan can help you identify potential problems and solutions, and it can be used to forecast future growth.
• To attract investors or partners - A well-written business plan can help you attract investors or partners who share your vision for the company.

What is a business proposal?

A business proposal is a written document that offers a solution to a problem or a way to achieve a goal. It is often used to sell products or services to a potential customer. A business proposal must be well-written, clear, and concise in order to convince the reader to take the desired action.

A business proposal is a formal response sent to an RFP (request for proposals). It is a way for the seller to convince the buyer that their proposed solution is the right one in order to win business. Business proposals are meant to persuade a prospective client.

A business proposal typically consists of four main points: what are the challenges, how your solution solves the problems, why they should choose you over others, and the best pricing options available. The price is typically stated in the document. If a business is requesting proposals, they should be sent in their format. An RFP response should include specific details about the scope of work and the cost estimate.

Here's a sample template to use while creating a detailed business proposal.

Why do you need a business proposal?

A business proposal is a key part of the business development process . It is a document that outlines the business goals, strategies, and tactics that will be used to achieve those goals. A proposal is used to convince potential clients or partners that your business is the best option for them.

It's typically used to pitch an idea to a potential client or customer. A well-crafted proposal can help you win new business and close deals.

Your company might be expanding into a new market and need to propose a new product or service. Or, you might be approached by another company with an opportunity you'd like to explore. Maybe you've identified a gap in the market and want to propose a new product or service to fill it.

How To Prepare For a Business Proposal?

Well, we do have a comprehensive guide to business proposal creation with templates and examples, but if you need a more brief explanation, keep reading!

When preparing for a business proposal, it is important to do your research and understand the client's needs. You should also have a clear understanding of your own company's capabilities and what you can offer the client. Additionally, it is important to be well-organized and to have a strong pitch.

You should have a clear understanding of your target audience and what will appeal to them. You also need to have a good grasp of the competition and what they are offering. In addition, you should be familiar with the terms and conditions of any potential contracts that may be involved.

Your proposal should be neatly formatted and easy to read. It should also be free of grammatical errors and typos. Be sure to proofread your work carefully before submitting it.

Make sure you provide complete contact information, as well as an outline of your proposed solution or service. If possible, include testimonials from past clients who have been satisfied with your work.

Remember that you are offering a valuable service that can help the reader achieve their goals. Believe in yourself and your ability to succeed, and you will be able to deliver a winning proposal every time

How To Write a Business Proposal?

When writing a business proposal, make sure to follow this brief outline:

- Introduce yourself and your company

- Outline the proposal's purpose

- Explain the problem that you're trying to solve

- Describe your solution

- Explain the benefits of your solution

- List your qualifications

- Request a meeting

It should include an overview of the product or service, information about the company proposing it, financial projections, and terms and conditions. A well-crafted proposal can help your company win new contracts and increase sales.

Here's another sample template you can use while creating a business proposal:

Business Proposal Template Checklist

Here's a story of our customer John who joined the Decktopus community 2 years ago.

John had been working in sales for years, but he had never worked in a company that sold products. When he was hired by a new startup, he was excited about starting making sales and increasing profits. However, he soon realized that there was no one in the company who knew how to sell. The founder of the company told him that he would need to create a presentation template to share with the other reps.

John wasn't sure where to start. He read article after article, trying to gather information about what made a good business proposal. After weeks of research, he finally created a template that he felt confident in sharing with his fellow reps. He was excited to see how it would help them increase sales and profits.

This is the outline we gathered while our support team helped him along the way:

-Executive Summary

-Problem/Opportunity Statement

-Business Plan

- Marketing Plan

-Financial Plan

Types Of Business Proposals

An unsolicited proposal is one in which the company offers a product or service to a potential customer who has not solicited it. Here's an unsolicited proposal template .

A solicited proposal is one in which the company responds to a request for proposal (RFP) from a potential customer. Here's a solicited proposal template .

A proposal to bid is a document that a company submits to a potential customer in response to an RFP.

The purpose of the proposal to bid is to persuade the potential customer that the bidder's product or service is the best option among those being considered.

Here's a proposal to bid template .

Business Plan Structure

A business plan has three main sections: the executive summary, a description of the business model, and financial projections.

The first section is an introduction that should be no more than one or two pages long. It should include a brief overview of your company, its products and services, and how you plan to make money.

The second section, a description of the business model, provides details about your company's competitive landscape, industry trends, and how you plan to reach your target market.

The marketing model is an informative section that should include detailed information about the industry competition and build-out plan. This part of the document can be several pages long and will help investors understand your company's place in the market.

While all three sections are important, remember that potential investors will likely focus on the financial projections most closely when deciding whether to invest in your company. The financial projections section is important because it shows potential investors how you expect your business to grow over time.

A well-crafted business plan can help convince potential investors to put their money into your company.

<cta-section data-ctaTitle="Start Building Your Business Document Now!" data-ctaDescription="Build good looking and functional business proposals and business plans without touching the design, literally in minutes!" data-ctaButtonText="Start Now!" data-ctaButtonURL=" https://www.decktopus.com/ "></cta-section>

100,000+ Ready-Made Designs, Docs & Templates to Start, Run and Grow your Business

Starting and running a business can be difficult, but it doesn't have to be alone. In fact, you're not alone--over 100,000 companies use our design templates, documents, and tools to start, run, and grow their businesses.

From creating a logo and branding your company to writing a business plan and pitching your idea to investors, we have everything you need to get started. And if you need more help along the way, our team of experts is here to support you every step of the way.

Simply select the template or document that's right for you, fill in the blanks, and hit print. It's that easy!

We understand that starting a business can be difficult--but with our help, it doesn't have to be alone. Over 100000+ companies use our design templates & tools every day to start & grow their businesses successfully. You can too!

Other Resources:

Business plan and proposal software solution, business proposal templates, business plan templates, basic business proposal writing guide, latest articles.

July 29, 2024

Your Questions Answered

We were delighted to receive a host of great reviews and solid questions from the community, giving us a significant reminder of why we do what we do. To make it easier for you, we gathered the most frequently asked questions in this blog and shared the answers gathered by our expert team.

Top Virtual Team-Building Activities: Boost Work Morale in 2024

Connect your virtual teams like never before with dynamic building activities designed for 's remote workforce.

The Crucial Role of Teamwork in Achieving Success: Why is Teamwork Important?

Explore why teamwork is crucial for success Learn the key benefits of collaborative efforts.

Start Building Your Business Document Now!

Build good looking and functional business proposals and business plans without touching the design, literally in minutes!

Don't waste your time designing your presentations by yourself!

Type your content and let our platform design your presentations automatically. No more wasting time for your presentations. Use hundreds of presentation templates to impress your audience. This is the only tool you need to prepare presentations. Try our Presentation Builder today >>

Don’t waste your time by trying to make a website for all your content

Place your content links and let our platform design your bio link automatically. No more wasting time for your social content distribution. Use hundreds of presentation biolink to impress your audience. This is the only tool you need to prepare good-looking bio links. Try our Bio Link Builder today >>

Do You Want To Create a Presentation?

Sign up for our newsletter to stay up-to-date on the latest news and tips from Decktopus.

Let’s create a form here to get visitors’ email addresses.

Ready to dive in? Start your free trial today.

Comparison Between Business Proposal and Business Plan

Conducting a comparison between business proposal and business plan enables you to highlight the differences between the two. 3 min read updated on July 26, 2024

Updated November 12, 2020:

Conducting a comparison between a business proposal and a business plan enables you to highlight the differences between the two. Business plans are documents detailing how owners want to set up their business, their goals and objectives, and the processes and methods required to achieve these goals.

Understanding the Features of a Business Plan

A business plan is a document that describes in detail how your business is set up, the vision of the company, and the methods and process for realizing business goals.

A comprehensive business plan should provide detail on your:

• Products and services.
• Business structure.
• Marketing strategy and market research.
• Budgetary expenses.
• Financial projections for the next five years.

Benefits of Drafting a Business Plan

Although developing a business plan takes a lot of research, planning, and calculation, it is well worth it. Drafting a business plan is a good idea for existing businesses and startups alike.

The reflection and time spent while creating your business plan will clarify your business ideas, providing you with insights into aspects of your business that you may not have considered, and help you strategize.

A well-written business plan is a blueprint for success because it outlines all the steps required to move your business from the ideation stage to reality.

However, not all business plans are meant to be executed. You could discover during the research stage that your business idea isn't right for implementation. Realizing this earlier on means you can save yourself time and money that you would have invested in a dead-end idea.

Before trying to raise funds for a business loan through an angel investor, incubator, or venture capitalist, ensure that you have thoroughly researched your business plan. Developing a well-researched business plan should take approximately six weeks, so writing your plan a day before meeting with a potential investor won't cut it.

Your business plan should serve two purposes:

• To provide suppliers and investors with information about the viability of a business.
• To keep an accurate record of business goals and the steps required to achieve them.

The following is a sample structure you can use to prepare your business plan:

• Executive Summary.
• Business Description.
• Market Analysis & Strategies.
• Design and Development Plan.
• Management and Organization.
• Service/Product Line.
• Sales and Marketing.
• Funding Requests.
• Financial Projection.

What is a Business Proposal?

Business proposals are documents proposing a business arrangement between you and another enterprise. The two main categories are:

• Non-invited.

When large corporations or the government want to purchase products or services from private suppliers, they usually post a public tender inviting contractors to submit a bid. The winning bid will be selected from those submitted by interested contractors.

Some organizations may also send RFPs (Request for Proposals) to select businesses that they are considering as potential suppliers. In this instance, you will compete against a handful of pre-selected contractors. Usually, the client provides a Bidding document stipulating the categories of information to be detailed as well as the style and type of proposal they expect from interested contractors.

If the Bidding document is not available, it is up to the contractors to decide what style of the proposal to present.

Companies that respond to a call for tender or an RFP are competing with other enterprises similar to theirs. As such, they must present themselves in the best possible light to win the bid.

Non-invited Proposal

Unlike invited proposals where the clients expect a bid for a product or service they need, an uninvited proposal is sent to solicit a business arrangement. You may have an idea for a product or service that will be beneficial to Company X and you have the ability to provide the service/product.

To indicate your interest in undertaking business dealings with Company X, you send an uninvited proposal stating your intentions to form a business relationship.

The company may or may not be open to your proposal; however, if it is interested, you don't have to worry about competing with other bidders.

To boost your chances of your non-invited proposal being accepted, you must market both your concept and your company. You must convince the prospective client of the value of the product or service as well as the stability and credibility of your company.

If you need help with a comparison between a business proposal and business plan, you can post your legal need on the UpCounsel marketplace. UpCounsel accepts only the top percent of lawyers on its site. Lawyers on UpCounsel come from prestigious law schools like Yale Law and Harvard Law and usually have 14 years of legal experience, including work on behalf of or with companies like Airbnb, Menlo Ventures, and Google.

Hire the top business lawyers and save up to 60% on legal fees

Content Approved by UpCounsel

• Business Plan and Proposal
• Business Proposal Ideas
• Sample of a Good Business Plan
• Service Business Plan
• LLC Business Plan Template
• Creating a Business Plan
• Business Plan for New Company
• Details of a Business Plan
• Business Plan for Existing Company
• Business Contract Proposal

Business Proposal and Business Plan: What’s the Difference?

Business prop os al and business plan are relatively similar but distinctively different terms, making many use these two words interchangeably.

You’ll see distinguishing features in their content, structure, writing style, purpose, and goals. Even so, there are various similarities between a business proposal and a business plan.

The main distinguishing factor to note is that a business plan documents the growth strategy and presentation of facts, while a business proposal is a specific ask for an individual to take action (buy your service/product, partner with you in business, and invest in a particular business). 

Let’s look at the two terms in detail and highlight a few examples when it’s appropriate to use.

What is a Business Proposal?

A business proposal is a company’s documentation that goes directly to its prospective client. It’s usually written in an attempt to sell a company’s product or service.

While a business proposal is not an estimate, it’ll have certain financial details. An estimate is unofficial and simply a way to skim over the real costs without presenting the real picture.

In a nutshell, a business proposal shows a particular business idea intended to get investors to support this particular endeavor being suggested.

Although a business proposal shows an overview of what the company does (just like a business plan), its main aim is to provide information about the suggested business idea. 

It answers any questions or concerns potential investors may have about the suggested business idea.

Prospero business proposal software can help you easily draft a competitive and compelling proposal to beat other bids. With its user-friendly interface and various proposal templates , you don’t have to create everything from scratch.

Let’s now look at the importance of a business proposal and a business plan.

Reasons for a Business Proposal

The main reason a proposal is written can only be understood based on the type of proposal you want to draft. They’re two types of proposals; invited and non-invited proposals.

Invited proposal

An invited proposal is submitted in response to an advertisement from a potential client. A good example is government agencies inviting contractors to bid on a particular service.

Alternatively, businesses request for proposals from a group of suppliers they’re willing to consider as prospective clients.

Non-invited proposals

Non-invited proposals, on the other hand, are submitted to potential clients even when they haven’t requested one. In both instances, a company must develop a compelling proposal to convince buyers. 

Proposals are limited in the scope of a particular need or project and written to specific audiences.

The main reason why businesses write proposals is to solicit or grow company opportunities. You can think of a proposal as an external document to present or sell the company to external players.

It shows what the business is all about and how it intends to carry out a particular project or use that opportunity to generate revenue for both parties.

What is a Business Plan?

A business plan is a factual description of a company on the operational and executive levels. It’s a written presentation of a company’s grand vision.

The document is typically tactical; it states where and when you want to start a project. Moreover, it will highlight when you’ll want to move on to the next phase of the project and how to accomplish that project.

It makes potential investors interested in a company (especially small startups that haven’t made a name for themselves).

A business plan will also provide an idea of what the business requires from professionals, such as attorneys and potential employees. It indicates whether or not a company’s business goals are realistic, let alone achievable.

Reasons for a Business Plan

Business plans are visions for your company and how you intend to execute all these visions. They outline financial projections of what a business will cost to develop and operate, plus an estimate of the revenues the business will generate.

Its main purpose is to provide a reasonably detailed description of the company for use by potential investors, suppliers, accountants, and prospective employees, among other people. For instance, one of the prerequisites for an SBA loan is an extensive and organized business plan.

Moreover, it’ll provide a quick but comprehensive view of what your company does and its chances for success.

The main reason companies write business plans is to convey and record information.

Structure of a Business Plan and a Business Proposal

Here, the two documents have various components featured on them. Here’s a detailed description of their structure below:

Structure of a Business Proposal

Overall, the structure of a proposal will depend on whether it’s solicited or unsolicited.

A solicited proposal responding to a request for proposal takes the format of an RFP. Here are the components of a business proposal:

• Usually, it takes a quick description of products and services relevant to the RFP goals.
• Outlining the company’s scope of work.
• Answers to questions posed in the RFP.
• Estimate detailing tools, materials, labor, delivery, and other elements that’ll affect the project’s cost.

An unsolicited proposal to create a business opportunity follows the same format. It, however, anticipates questions potential clients might have .

A proposal is a marketing document designed to convince prospects to do business by presenting a value disposition plus a call to action.

Try creating your business proposal here .

Structure of a Business Plan

A business plan has three components; sales tactics, business model description, and financial goals. More elaborately, it consists of the following section of information:

• A summary of the executive
• Product/service description
• Industry analysis
• Operating plan
• Marketing strategies  
• Internal analysis
• Built-out plan
• Structure of leadership 
• Introduction of management 
• Financial goals

The business plan is more like an information document displaying the company’s operation and potential.

Many companies fail to follow this format while writing their business plan or proposal, a reason why most don’t win bids or prospective clients. 

Using Prospero to write a professionally compelling business proposal and integrate your business plan can help you get investors interested in your company so that they want a sit at the table.

What’s the Difference Between a Business Plan and a Proposal?

Business proposals differ from business plans in content, writing style, purpose, goals, and structure.

The sole distinguishing factor between the two terms is that a business plan is a factual presentation of facts, whereas a business proposal is an external market document that highlights a quote and a call to action.

Let’s look at some distinguishing features between the two terms:

Business Proposal vs. Business Plan

A business plan provides a detailed description of how the business was set up, plus its project.

On the other hand, a business proposal is a purposeful sale document illustrating how a business will execute a particular project. Usually, it’s drawn and submitted to another enterprise or organization putting forward a business arrangement.

In addition, the structure of a business plan contains three elements, including a description of the business model , sales tactics, and financial projections.

On the other hand, the structure of a business proposal takes the format of an RFP if it’s solicited.

A business plan shows the scope of a business and, in turn, clarifies your thinking as a business owner and also gives you information that you hadn’t considered before.

Conversely, proposals show a limited scope of a specific project or need for a particular audience.

While trying to craft these two documents, you must seek proficient experts to help you write compelling proposals and plans to convince potential investors and other partners to invest in your business.

Types of Business Plans and Proposals

A business proposal can be divided into solicited and unsolicited proposals. How different are they? Let’s delve right in.

Solicited Proposals

This is presented in response to a request for proposal (RFP) . It’s usually submitted responding to a work statement from sponsors.

These sponsors use the request for proposal to solicit a specific proposal for research, training, or to provide services or goods. The RFP includes standard terms, conditions, and assurance that the company is asked to accept. 

A good example is when an organization or government agency wanting to buy products or services from a particular sector invites contractors to place bids.

In other scenarios, some businesses will ask suppliers to provide RFP to those they’re considering a partnership with.

The business is competing against other businesses that want to secure the same contract. It’s, therefore, in their best interest to provide compelling and competitive business proposals.

Prospero can assist you in such instances; it has the experience and expertise to curate excellent proposals that win contracts. Call it today to generate a proposal with its Prospero business proposal generator.

Unsolicited Business Proposals

This proposal is submitted to potential clients, even when they haven’t asked for one.

In such circumstances, a business wanting to secure a contract will suggest a product or service to a potential organization in return for funds.

A good example is when an organization tends a proposal to develop an application or renders some training services to its staff.

Just like solicited business proposals, a company must curate a well-researched proposal that will convince prospective clients you’re the right candidate for the job.

Types of Business Plans

Business plans are also categorized into four types, including

• short plans,
• presentation plans,
• working plans,
• and what-if plans.

These types require different degrees of labor and are not always proportional to results.

Presentation Plan

Using PowerPoint to present information about a business has revolutionized the way companies create and showcase their business plans. Many business owners lose sleep trying to figure out how to present a plan that can significantly impact their company’s future.

Therefore, it’s crucial to understand the ins and outs of a business plan presentation in order to effectively communicate your ideas and strategies to potential investors or stakeholders.

Working Plan

This is a plan used to operate your business. The plan can be long in detail but shorter in presentation. There’s no room for informality or candor while preparing it.

If you’re considering presenting this plan to a loan committee, you’ll have to describe a competing rival primarily on a price basis.

A working plan used to create outlines for internal use may have some elements omitted; probably, you’ll not need to add an appendix with a resume of key executives.

Internal policy considerations may guide what to include or exclude in the working plan.

What-If Plan

A business must prepare for unforeseen circumstances. The company may want to have a contingency plan when seeking bank financing.

This plan is usually curated in the worst-case scenario that you can foresee your business surviving. It’s important to shelter yourself from things like loss of market share, the defection of a key member of management, and heavy price competition.

A contingency plan can help cover the fears of bankers and investors by demonstrating that your business has considered more than one rosy circumstance.

Moreover, your business can benefit from a what-if plan in situation acquisition. It can help you outline the worth of the acquisition and how it can affect the core business.

In summary, you can say that a business plan is more of an internal document, whereas a business proposal is an external one that is used to sell the product or service of a company to prospective clients.

In addition, a business plan guides the activities of a company internally in terms of revenue projections and marketing strategies that must be achieved in a particular time frame.

On the other hand, a business proposal will show external parties like a government agency and sponsors what the business is all about to convince them to invest in your business. The proposal should outline how you will carry out a particular project to generate revenue.

Whether trying to curate a business plan or proposal, it has to be compelling and competitive to beat other bidders. 

Why Not Give Prospero A Try?

Working with Prospero to generate professionally written proposals or plans is essentially wise. It has a variety of templates for different industries and comes with a lot of customization options. Some ready-made content are also available so you won’t need to write from scratch every now and then.

You can manage and track the performance of your proposals through its built-in analytics, so your sales team would be more productive and efficient.

It’ll increase your chances of securing contracts and proposals that can take the business to the next level.

Sign up today and create your first proposal!

ABOUT THE AUTHOR

Abbey Claire Dela Cruz

Related posts.

Top 10 PandaDoc Alternatives to Consider in 2024

What Is Value-Based Pricing? How Do You Apply It to Your Products?

7 SignWell Alternatives to Consider in 2024

A Guide to Developing a Winning Digital Branding Strategy

Difference Between a Business Plan & a Business Proposal

• Small Business
• Business Planning & Strategy
• Business Plans
• ')" data-event="social share" data-info="Pinterest" aria-label="Share on Pinterest">
• ')" data-event="social share" data-info="Reddit" aria-label="Share on Reddit">
• ')" data-event="social share" data-info="Flipboard" aria-label="Share on Flipboard">

Why Create a Business Plan?

How to rescind a business letter, 6 types of business plans.

• How to Create a New Business Plan
• How to Conclude a Business Plan

A business plan and a business proposal are very different documents, with different purposes and goals. A business plan is a factual broad description of a company on the executive and operational level. A business proposal is a focused sales document intended to describe how a company will approach a project, state the value of the project to the client and solicit the client's business. A business plan is a written presentation of fact. A business proposal is a quote and call to action.

Reasons for a Business Plan

A business plan documents your vision for your business and how you intend to achieve that vision. It contains financial projections of what the business will cost to develop and operate plus an estimation of the revenues to be generated. Its purpose is to provide a reasonably detailed explanation of your business for use by potential investors, suppliers, prospective employees, accountants, attorneys and other people who need a quick but comprehensive understanding of what your company does and its potential for success. The primary reason for a business plan is to record and convey information.

Reasons for a Business Proposal

Proposals may be unsolicited business ideas presented to a potential customer or partner, or they may be answers to requests for proposal submitted to your company by a potential client. They are limited in scope to a particular project or need. A business proposal also generally has a specific audience. The primary reason for a business proposal is to solicit or develop a business opportunity.

Business Plan Structure

A business plan has three elements: description of the business model, the marketing model and financial projections. It consists of informative sections, including the executive summary, business description, marketing model, analysis of industry competition, build-out plan, operations plan, introduction of management, and a discussion of financial issues and projection of results. It is introduced by an executive summary, which can be a dense abstract or a longer marketing tool to attract interest in the business plan. The business plan is an informational document designed to factually display your company's operations and potential.

Business Proposal Structure

A business proposal written in response to a Request for Proposal (RFP) should follow the format requested in the RFP. Generally, this involves a quick description of your company's services and products that are relevant to the goals of the RFP, a reiteration of the scope of work, answers to specific questions posed in the RFP and a quote detailing materials, tools, labor, delivery and other elements of the cost of the project.

An unsolicited business proposal intended to create and develop a business opportunity follows essentially the same format but anticipates questions the potential client might have. A proposal is more of a marketing document, designed to convince the audience to do business by presenting a value proposition and a call to action.

• Entrepreneur: An Introduction to Business Plans
• Forbes: The Difference Between a Business Plan and Planning

Victoria Duff specializes in entrepreneurial subjects, drawing on her experience as an acclaimed start-up facilitator, venture catalyst and investor relations manager. Since 1995 she has written many articles for e-zines and was a regular columnist for "Digital Coast Reporter" and "Developments Magazine." She holds a Bachelor of Arts in public administration from the University of California at Berkeley.

Related Articles

5 types of business documents, what does a business plan consist of, the importance of a business plan, what is the relationship between the business plan, marketing plan & sales plan, examples of business feasibility reports, the differences between a business plan & business model, reasons to convert a pdf to microsoft word, what are the six elements of a business plan, mission statement vs. executive summary, most popular.

• 1 5 Types of Business Documents
• 2 What Does a Business Plan Consist Of?
• 3 The Importance of a Business Plan
• 4 What Is the Relationship Between the Business Plan, Marketing Plan & Sales Plan?

Business Plan vs. Business Proposal: What Is The Difference?

Understanding the distinction between a business plan vs a business proposal is vital for entrepreneurs and business owners. While both documents are fundamental to the lifecycle of a business, their purposes, structures, and target audiences differ significantly. This article clarifies these differences and outlines their unique components.

Defining the Differences: Business Plan vs. Business Proposal

A business plan is a comprehensive document that outlines a business’s strategic direction and future plans. It serves as a roadmap, detailing the vision, operational strategies, and financial forecasts to guide internal management and attract investors. Conversely, a business proposal is a targeted pitch to secure a specific project or relationship. It focuses on convincing a particular client or partner of the business’s capability to solve a specific problem or to deliver a proposed project.

Components and Structure

Business plan details.

A typical business plan includes several key components:

• Executive Summary : Captures the essence of the business and the plan’s aims.
• Company Overview : Provides background information on the business.
• Market Analysis : Details the industry, market trends, and target demographics.
• Organization and Management : Describes the business structure and team.
• Service or Product Line : Outlines the product or service offerings.
• Marketing and Sales Strategy : Explains how the business will attract and retain customers.
• Funding Request and Financial Projections : States the funding needed and financial forecasts.

Learn how to create a professional business plan that sets your company up for success in our article “Business Plan: Write one like a pro” .

Business Proposal Breakdown

The structure of a business proposal often includes:

• Title Page : Introduces the proposal with a compelling title.
• Cover Letter : Personalizes the approach to the potential client.
• Problem Statement : Identifies the client’s problem that the proposal aims to solve.
• Proposed Solution : Details the services or products offered to tackle the problem.
• Pricing and Terms : Outlines the cost and any relevant conditions.
• About Us : Highlights the company’s credentials and success stories.

Understanding the Audience

Business plan audience.

The primary audience for a business plan includes internal stakeholders, investors, and financial institutions. It aims to provide a detailed and factual representation of the business’s potential and strategic plans for growth.

Business Proposal Audience

Business proposals are directed at potential clients or partners. The focus is external, aiming to establish a contractual relationship based on the specific needs and problems of the recipient.

Variety in Types

Types of business plans.

• Startup Plans : For new businesses seeking initial guidance and funding.
• Strategic Plans : Focus on the long-term vision and objectives.
• Operational Plans : Detailed, day-to-day plans for running the business.

Types of Business Proposals

• Solicited Proposals : Created in response to a client’s request.
• Unsolicited Proposals : Initiated by a business to propose a solution to a potential client without their prior request.

Which Comes First?

Determining whether a business plan or a business proposal should be created first depends largely on your immediate business needs. Generally, a business plan should be crafted first as it establishes a comprehensive foundation for your business’s structure, goals, and strategies. This document is crucial for internal clarity and securing initial funding, which is essential before reaching out to potential clients or partners.

Once your business plan is in place, you can focus on specific opportunities for growth and collaboration, which is where the business proposal comes into play. A business proposal is typically crafted in response to a specific opportunity, aiming to adapt the strategic insights from your business plan to meet the needs and solve the problems of a potential client or partner.

Leveraging Your Business Plan in Proposals

Having a robust business plan in place first guides your business’s strategic direction and strengthens your business proposals. It allows you to pull relevant information from a well-thought-out business plan to create tailored proposals that directly address the needs and challenges of prospective clients. This sequence ensures that your proposals are backed by a solid business strategy, enhancing credibility and the likelihood of securing contracts.

Best Practices in Proposal and Planning

Creating effective business plans and proposals involves clarity, thorough market research, well-defined objectives, and a persuasive presentation. Both documents should be visually appealing and align with the professional tone of the business. Utilizing tools like Modeliks can significantly streamline the process, offering templates and interactive elements to enhance the professionalism and effectiveness of your documents.

Modeliks provides cutting-edge tools that assist in crafting detailed documents. With features designed to simplify the creation process, enhance the layout, and present data interactively, M odeliks helps businesses present their cases persuasively.

Ready to take your business to the next level? Start with Modeliks today. Enhance the quality of your business plans and proposals with our robust suite of tools designed to deliver precision and professionalism. Sign up for Modeliks and revolutionize how you present your business strategies.

Related Articles

July 29, 2024

What Is Double-Entry Bookkeeping? And Why Is It Important?

How to Start a Business from Home: A Step-by-Step Guide!

July 22, 2024

What is Profitability Analysis & Why is it Important to Businesses?

• How It Works
• Integrations

The difference between a business plan and a business proposal

Whether you are in business, employment, or college pursuing a degree, understanding the basics of a business proposal is a skill that you must have. Most people use the terms business plan and business proposal interchangeably. These two documents are very different. A business plan is different from a business proposal in terms of content, structure, writing style, goals, and purpose. The most important difference to note is that a business plan is a written presentation of fact while a business proposal is a price quote and a call to action.

According to an article on Entrepreneur.com , a business plan is a document that outlines a detailed description of how a business is set up. It is a 5-year plan of a business showing the company structure, products and services, market findings from research, marketing strategy, planned budget and financial projections. It can be simply defined as the factual and wide description of a business and its projections. A business plan can be drawn by a start-up as well as a going concern.

A business proposal is a purposeful sales document formulated to illustrate how a business will carry out a project, give the value of the project to the prospective client and ask for the client's business. Therefore, it is a document that a business submits to another enterprise or organization putting forward a business arrangement.

A business plan ideally comprises three elements: description of the business model, the marketing strategy and financial projections. It includes informative sections, specifically the executive summary, business description (products and services), marketing plan, industry analysis (competitor analysis), build-out plan, internal analysis, operations plan, leadership structure or introduction of management, and financial projections -- discussion of financial concern and projection of results. The opening page is the executive summary. It can be an intense abstract or a detailed but precise marketing tool to draw interest in the plan. The business plan is an informational document intended to factually showcase the company's operations, goals and potential.

According to Sean Kerner from Tech Republic, the format of a business proposal depends on whether it solicited or unsolicited. A solicited proposal and in response to an RFP should take the format called for in the RFP. Usually, this entails a quick description of the services and products offered by your business and clearly showing their relevance to the goals of the RFP, a replication of the scope of work, response to specific questions raised in the RFP and a quotation detailing materials, equipment, labor, delivery and other basics of the project outlay. An unsolicited business proposal may or may not take the same format. The intention is to create and develop a business opportunity, and so it is advisable to follow the same format or any other that is popular with the industry or business. Be keen to address all the questions that the potential client might have. With an unsolicited proposal, it is up to you to decide the structure. Whichever format you choose, ensure that the proposal is professional, highlights key areas of interest, presents a value proposition, is thoroughly researched and loaded with facts and with a call to action.

A business plan is required for two main reasons. It clearly defines the scope of the business and in the process clarifies your thinking as the proprietor of the business. It offers you information that had not been considered previously. Simply put, it documents the vision of the business and how it will be achieved. This guides the business towards a practical strategy to guide the business for the time-frame enclosed by the plan. It is the blueprint to success of the business. It outlines strategies for converting the ideas into core competencies. It also presents the financial projections of starting and operating the business as well as estimation of revenue generation from business activities. Secondly, it offers comprehensive business information for use by potential investors and employees, suppliers, accountants, attorneys and other stakeholders. The primary function for a business plan is to record and pass on information.

A business plan is also used to raise funds in form of a business loan, venture capitalist, angel investors or incubation. When approaching these money lenders you must present a thoroughly researched and realistic business plan. The investors need to be sure that you are confident and truthful about the market statistics and financial projections indicated in the report. A business plan should be as truthful as possible because it is the blueprint and vision of the company. It provides a checklist of whether the objectives of the business are on track. According to experts, a professional business plan requires about six weeks of in-depth research and preparation. It is not possible to whip one a day before your appointment with investors.

The reason for a business proposal can be well explained based on the type of the proposal. There are two major types of business proposals: invited and non-invited. An invited proposal is submitted in response to an advertisement from the buyer or client. For instance, organization and government agencies wanting to purchases services and products from private suppliers invite contractors to place their bids. Alternatively, some businesses ask for Request for Proposals (RFP) from a selection of suppliers that they willing to consider as a prospective partner. In each case, the business is competing against other bidders. It is in the interest of your business to present a competitive and compelling business proposal.

Non-invited or unsolicited proposals are submitted to potential clients even when they have not requested for one. In this scenario, you give suggestions to the company or organization to purchase services or products in return for funds. For instance, you can tender a proposal to develop an app for an organization or training services for its staff. The most important thing in both cases is to come up with well researched offer to convince buyers. A business proposal is limited to the scope of the specific project or need. In addition, it has a specific audience. The primary function for a proposal is to solicit or grow a business opportunity.

You can look a business plan as more of an internal document. A proposal on the other hand is an external document used for presenting or selling the business to an external player. A business plan guides the activities of the business internally in terms of marketing strategies and revenue projections that should be achieved. A proposal shows the external players such as governments, donors or business partners what the business is all about and how it intends to carry out a project at hand or use the opportunity to generate revue for both partners.

For more information, here is an article on how to write a business proposal .

Entrepreneur.com: An Introduction to Business Plans https://www.entrepreneur.com/article/38290

Win more clients by creating impressive digital business proposals, price quotes, and contracts using ClientPoint Software

If you want your business proposals, price quotes, and contracts to stand out above your competitors and give you the best chance at winning new clients, use ClientPoint's Proposal Software . It makes creating and formatting professional business proposals, price quotes, and contracts fast and easy.

Related Readings

Proposal writing tips, a business proposal checklist to help you win more clients, 8 reasons why paper-based business proposals are dead and digital business proposals are superior, what is a business proposal and how to write it for b2b sales.

Headquarters

6790 Embarcadero Lane Suite 100 Carlsbad, CA 92011

Contact Info

• Privacy Policy
• Master Subscription Agreement
• ClientPoint Brand Style Guide

How to write a business proposal

Learn how to write a business proposal that’ll stand out from the crowd and increase your chances of success.

What is a business proposal?

A business proposal is a formal document you send to a prospective client in the hopes of winning a project or making a sale. In your proposal, you outline the service you’ll offer and explain why they should choose you.

Types of business proposals

There are two types of business proposals:

• Solicited business proposal: This type of business proposal is usually requested by a potential customer. Some companies and government agencies issue an RFP (request for proposal) when looking for bids to complete projects. You’ll know the criteria and have most of the information about the potential customer for these types of project proposals.
• Unsolicited business proposal: This is similar to a cold pitch. You send a proposal to new clients without an RFP or an established business relationship to attract new business.

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.

An effective business proposal should solve the three Ps:

• Problem statement: What is the biggest pain point of the customer?
• Proposed solution: How your business will solve the problem better than anyone else
• Pricing: How much the solution costs compared to other solutions

A business proposal has a clear format and should ideally include each of the following sections.

1. Title page

This sets the tone and must look professional. You should include your name, your business’s name, the name of the person you’ll submit your proposal to, the date submitted and the title of your proposal.

2. Table of contents

The table of contents allows your potential client to see what’s in your proposal and also lets them skim to find the information they consider important.

3. Executive summary

This is similar to the executive summary in your business plan. Explain why your business meets the client’s needs and why you are better than your competitors. It should:

• introduce your business and any important team members
• give an overview of your business goals and why you are a successful business
• outline the benefits of your products and services
• showcase milestones and previous clients

4. The problem statement

Outline the main problem your potential client is wanting to solve. This shows them that you understand their pain points. Use data to back up your argument and be specific.

5. Proposed solution

Here’s where you explain in detail your proposed solution and how it’ll solve the client’s problem. Your solution should be specific and personalized. You should include details of what you plan to provide and the benefits of your proposed solution. If you’re pitching for a specific project, share the proposed timeline, and explain how you’ll measure the success of the proposed solution. Visual charts and graphs can help illustrate your points.

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 general timeframes your business works to, for example manufacturing or shipping times, or turn-around 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 licenses required for the project these should be added to this section.

9. Terms and conditions

Clarify the terms and conditions and summarize 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.

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 tips

There’s a lot to keep in mind when you’re writing your winning business proposal. The following features can help make your proposal stand out from your competitors.

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 real data

To impress your client and set you apart from competitors, use hard data that demonstrates the value of your proposal. Highlight your data in flowcharts, graphs or a table to enhance their presentation.

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.

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

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.

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

Once completed, write a one-page cover letter to send with your proposal and convince the decision maker to read the entire proposal. Your cover letter should include:

• contact information
• a brief introduction to your business and the products or service you provide
• concise details about the client’s problem and the solution that you offer
• a strong conclusion mentioning the main benefit you will deliver
• the next steps you want the prospective customer to take

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

Start using Xero for free

Access Xero features for 30 days, then decide which plan best suits your business.

• Try Xero for free
• See all features

LET'S TALK!

We offer software that makes you win big and ultimately gives you the work-life balance you deserve.

Co-authoring and automation solution for complex documents

Quickly and accurately price combinations of interdependent products and services

XaitProposal

Guided proposal creation for comprehensive, winning proposals

The smarter way to respond to RFIs, DDQs and security questionnaires

XaitWebProposal

The easiest way to create interactive and custom mini-websites

The X factor for analyzing and writing winning bids and proposals

• Sales Teams
• Proposal Managers
• Subject Matter Experts

OUR SOLUTIONS BY INDUSTRY

Do you have a question about your business vertical?

Manufacturing

Energy & Renewables

Construction

• Customer Stories

Discover all our Xaiting resources!

White Papers

We can challenge mindsets and make significant changes to the way people interact

Our Company

Press Releases

• Book a demo

What is the Difference Between a Business Plan and a Business Proposal?

Tore Medhaug

In order to send an official business proposal, you have to have a business plan. These are two different document types that people often confuse and mix.

Let’s take a look at the difference between the two, starting with the document you should have in place before submitting an official business proposal.

What is a Business Plan?

A business plan is a document that describes what your organization looks like and what services and deliveries you would provide.

As a student at BI Norwegian Business School , I learned that a business plan should include the following three elements:

• Executive summary: Describing your business, organization structure, etc.
• Marketing plan: Marketing strategy, different marketing analyses (Porter5, SWOT, 7Ps, Pestel)
• Financial: Revenue, expected revenue, etc.

A business plan is a document you would not typically send to your client but to lawyers, insurance providers, banks, suppliers and other stakeholders that would find this relevant for understanding your business and its value.

What is a Business Proposal?

A business proposal describes what you can deliver, time frame, amount, cost and your terms and conditions. This is a document you would use to respond to a specific request from your client, or you would send it to your client or prospect describing what you can deliver, at what price.

When you respond to a specific request, also known as an RFP (request for proposal), you should follow this rule of thumb:

• Always reply in their format
• Reply specifically to what they are asking about
• Describe how you can achieve their goals
• Outline the scope of work
• Provide a cost estimate

Use a proposal solution to create bid-winning content

There are many different ways to write a business proposal, and many different solutions to write it with. For the best possible outcome in terms of control, cost-efficiency, time savings and security, use an enterprise-grade co-authoring and automation tool.

The proposal solution XaitPorter is used by companies all over the world for this purpose. Here are six key advantages of using XaitPorter to create your business proposals and other high-impact, high-value documents:

• Cloud-based : Seamless team collaboration from anywhere, at any time.
• One document: Collaboration on the same document – simultaneous editing.
• Auto formatting and numbering : No manual formatting or numbering.
• Custom layout: Create professional documents in accordance with brand identity guidelines.
• Reuse content: Built on a database – enabling easy reuse of content.
• Export/publish document: Export to a variety of formats, including PDF and Word.

Tore holds a Technical degree and has a variety of business courses from BI Norwegian Business School. He has previously worked for different oil service companies and IT companies. Tore used to be Norway's biggest self-proclaimed golf talent, and also has a big passion for Ice hockey.

Stay up to date

Etiam arcu faucibus ultrices quisque odio. Venenatis nunc ut blandit urna.

Take action.

Unsupported browser

This site was designed for modern browsers and tested with Internet Explorer version 10 and later.

It may not look or work correctly on your browser.

What Are the 6 Most Effective Types of Business Project Proposals(+ Expert Tips)

When it comes to your business, getting sales and new clients are your lifeblood. That’s why it’s crucial to master writing and designing a professional business project proposal. And it helps to know the different types of proposal you may need to create.

A business proposal that's well-written and has a polished design can mean the difference between winning or losing potential clients. But what is a business proposal exactly? What should it include and how do you make sure your business proposal is effective? 

In this post, we’ll answer these questions. We'll also share what you need to know about most effective business types of proposals. Plus, we'll explain how to write and design a standout proposal that helps you close more sales. 

What Is a Business Project Proposal?

Businesses use business project proposals to convince others to buy their products and services. A business project proposal will identify the buyer’s pain points and present the right solution for those pain points. Different types of business proposals achieve different goals, as you'll see later on.

What Is the Purpose of a Business Project Proposal?

The purpose of the proposal is to inform potential buyers about your goods and services and to serve as a sales pitch that helps close the sale. Business proposals streamline the selling process and outline exactly what the project will entail, eliminating the scope creep later. 

For a quick guide on how to write a business project proposal, study this tutorial:

Why Use a Business Project Proposal?

If you and your prospective client are keen to work together, you may be tempted to skip the business project proposal. But that can be a big mistake. Having a written project proposal has several advantages. These include:

• Better planning. Preparing a project proposal forces you to do research, analyze the client’s problem, and think through a proposed solution. Lori Smith, CEO of Acu-Elligent and author of Winning Business Proposal Strategies for Success , says this helps you to plan better:

“You have to put forth the necessary efforts and resources to know client values, what you can deliver, and weaknesses of competitors, to develop a compelling blueprint or win strategy.” 

• Rock-solid documentation. A business proposal forms the basis for a contract between you and your client, sponsor, or partner. No matter how much you trust each other, it’s best to have everything you agreed on in writing. This can help prevent or even settle legal disputes.
• Improved project management. The proposal sets the phases, milestones, and steps of the project. This level of detail helps you keep track of progress to ensure the project is proceeding as planned. 

Find Great Business Project Proposals On Envato Elements

Writing and designing a business project proposal isn't easy. But the good news is that you don’t have to start completely from scratch. There are many business proposal templates available online. 

Professionally designed templates will save you time because they already have everything in place. All you've got to do is drop in your content. Each template also serves as a project proposal example that can guide you in writing a project proposal.

One of the best places to find  great business project proposals  is Envato Elements. It's a subscription-based marketplace with thousands of modern and  professional business project proposal templates . 

Download as many business project proposal templates as you want: all for a low-monthly fee. Besides business proposal templates, Envato Elements has thousands of other unlimited-use design assets such as:

• stock photos
• business card templates

Another place where you can find even more great business project proposal templates is GraphicRiver. 

This marketplace is part of Envato Market, a suite of marketplaces catering to various creative needs. On GraphicRiver , buy individual business project proposal templates on an as needed basis. 

6 Types of Commonly Used Business Project Proposals

We’ve just covered what business project proposals are and how you can save time with professional business proposal templates. Now let’s talk about what are the different types of business proposals. By knowing the difference between types of business proposals, you’ll know exactly which proposal to send to each client. 

There are six different types of business project proposals:

• formally solicited
• informally solicited
• unsolicited
• continuation
• supplemental

Let’s go over each of these below:

1. Formally Solicited Proposal 

Use this type of proposal when you're responding to an official request for proposal. In most cases, this will be the easiest type of proposal to write as the potential client or customer will specify what they're looking for. In some cases, they'll even outline what they want the proposal to cover.

2. Informally Solicited Proposal

This type of proposal is the same as the formally solicited proposal, but with one difference. The information in the proposal isn’t clearly specified in an official document or request. 

Typically, you’ll write this proposal when a client or customer is interested in what you've got to offer and asks for a proposal. Since the client doesn’t specify their needs, you’ll have to do more research on your part to analyze the client and understand what they're looking for. 

3. Unsolicited Proposal

The unsolicited proposal like a cold call. You could send an unsolicited proposal if you stumbled upon a potential client and think that your offer is exactly what they need. This is one of the hardest proposal types to write. You’ll have to do plenty of research upfront and be very convincing in how you present your project proposal ideas. 

4. Continuation Proposal

Send a continuation proposal when you want to send a reminder or an update about an ongoing project that’s already been approved. All you’re doing with this proposal is providing an update on the project and asking for approval to carry on with the project. These proposal types are the easiest to write unless the client wants major changes moving forward. 

5. Renewal Proposal

Use the renewal proposal after you’ve completed a project and want to make a case for continued support. When it comes to renewal proposals remember to provide convincing proof why it’s beneficial to continue with the project. 

6. Supplemental Proposal

Lastly, the supplemental project proposal is reserved for when you need approval for extra resources for the project. Provide reasons and justify why those resources are needed and create an updated estimate of what the project will take to complete.  

What Should You Include in a Business Proposal?

No matter what type of proposal you’re writing, there are common sections that should be included in every business project proposal. These include: 

• Title and table of contents . This is straightforward. The title and the table of contents provide a high-level overview of the proposal.
• Executive proposal summary . The summary should include the basic information about your company, your history, accomplishments, goals, and milestones.
• The description of the problem . In this section, you’ll provide a description of the client’s problem and provide a reason for them to find a solution.
• The proposed solution . In this section, you’ll outline exactly how you’ll solve their problem and provide them with all the necessary details they need to know.
• Project timeline and resources . After you explain the solution, add a section with the project estimated timeline and the resources you need to complete the project.
• Pricing and legal information . You’ll also need to provide them with the price, outline payment terms, and provide them with any required legal information.
• Terms and conditions . Don’t forget to include terms and conditions that summarize everything you've promised to deliver as well as the client’s responsibilities. 
• The acceptance and call to action . The last section should tell the client what the next steps are and make it clear how they can get started on the project. Include places for all the signatures as well as your contact information in case they've any questions. 

Your proposal should also make it clear to the potential client why you’re the perfect fit for the project by including this information: 

• what your business or company does
• the problem the potential client is facing
• the solution your company offers for that problem
• how your company will implement the solution to solve the problem
• how long the project will take
• the resources that'll be required
• the investment needed for successful project completion 

How to Write and Design Great Business Project Proposals in 2021

By now, you know the different types of business project proposals and what each proposal should include. Let’s tackle some writing and design tips that'll help you write a winning proposal in 2021 so you can confidently close more sales:

1. Research and Plan Your Project Proposal

The first step in writing and designing your business project proposal is to make a plan. The plan should include researching your client and their business. 

Research helps you understand the problems, the budget, the preferred timelines, and specific industry requirements. This ensures that your proposal will present them with the best possible solution. The tips in this article can help:

After you’ve familiarized yourself with the client and their problems, create an outline for your proposal. Make a note of all the sections you want to include and the points you want to cover. 

Learn more about proposals for freelancers and other creatives tutorial:

2. Clearly State the Problem

Once you've got a plan for your proposal, you need to clearly state the problem. This section has to make it obvious to the client what their pain points are and why they need to act on the problem. It should convince them to take action by relating the problem back to them, using their own words and concepts they can easily understand. 

3. Present a Compelling Solution

Now that your audience is aware of their problem and they know what happens if they don’t act, it’s time to present them with a solution. You’ll want to back this up with evidence and data. Show the benefits of the solution along with the steps necessary for the successful implementation of the solution. This will make it clear what they can expect throughout the entire project. 

4. Give Accurate Estimates

Your potential clients will also be interested in how long the project will take as well as how much it’s going to cost them. Include a section that gives accurate estimates of time, materials, expenses, and other resources needed.

Here's a tutorial to help you figure out what to charge:

5. Outline Next Steps

When you’re done writing out all the necessary sections of your proposal, conclude with a section that outlines next steps. This can include asking them to get in touch with you via phone or email, booking an appointment, sending over a signed proposal or similar. 

Be clear and concise here. As we mentioned earlier, include your contact information in case they've got any questions. 

6. Use Visuals

When it comes to the design of your proposal, include plenty of visuals. Photos, charts, graphs, icons, and infographics can help potential clients visualize how the project will go. It'll also make it easier for them to understand more abstract or complex concepts of the proposal.

7. Make Your Cover Engaging

Your proposal cover is the first thing potential clients will see. Make it more engaging by including a photo that relates to their project or a photo of your company. 

You can also include your logo. Use a bold font for the title to instantly capture their attention. 

8. Pay Attention to the Alignment

Your proposal will include both text and visual elements. Make sure they're properly aligned with the help of guides in your document.

Proper alignment will make the entire proposal more visually appealing by adding hierarchy to your design. Your project proposal format is important. Formatting issues like proper alignment make a difference.

9. Save Time With Templates

Save time on writing and designing your business project proposal by using professionally designed business proposal templates. These templates will not only have all the necessary sections, but they'll also have the basic layout and design elements. All you’ll have to do is add your content and then customize the template with your choice of colors and fonts. 

If you're creating your proposal in MS Word, consider these templates:

10. Proofread Everything

Our last tip is to proofread the entire proposal several times to ensure there are no grammar or spelling mistakes. Make sure that all the information is accurate and up to date, especially if you’re talking about your company history or about your client’s business. 

5 Tips to Make a Winning Proposal in 2021

Business proposals are constantly evolving. I've collected some of the top tips from experts who have either prepared many business proposals, or who review proposals as part of their role. Keep these tips in mind to increase your chances of winning that deal or grant.

1. Make It About Them

A common mistake is to make the proposal all about you. Carl Dickson, founder of PropLIBRARY , a huge web-based resource full of practical advice for how to write winning proposals, shares this advice:

“The biggest mistake people make is writing what they want to say instead of what the customer needs to hear in order to make their decision. They treat it like a brochure sent to unknown readers instead of a specific organization with known requirements. Instead, write from the prospective client’s perspective. Spend more time thinking about, researching, and discovering what matters to the customer than you do writing. Then make your case as to why what you are proposing is their best alternative for achieving their goals.”

2. Customize the Proposal

When you write from the prospect’s perspective, you'll find yourself customizing the proposal to them. People tend to rely too much on templates for content, and that can be another big mistake because it makes your proposal generic. If you begin with a template, it should be tailored to each client so that they feel like their needs and circumstances are being addressed.

Kristin Marquet, owner of a PR and branding firm in New York, has drafted more than 500 business proposals for clients since 2009. Her advice:

“My top tip is to provide a scope of work that is customized for the prospective client. A proposal should outline the project objectives, strategies, tactics, timeline, and budget while being specific to the client. I've seen other agencies use a one-size-fits-all approach when preparing their proposals, and that doesn't work as well as a tailored proposal.”

3. Include a Table of Contents

A practical tip is to include a table of contents. After more than 30 years of experience reviewing proposals for investment properties, real estate marketer Dave Kohl has observed that different prospects are interested in different parts of a proposal.

Even within the same company, if several people will be reviewing the proposal, each one will be reviewing different parts of the proposal. A table of contents helps each one find the section that’s most relevant to them.

 “Include a table of contents. This will allow people to get to the information that’s most important to them quickly. Some companies consider the financials to be more important than the execution, while some do not.”

4. Adopt an Editorial Mindset

Keep your proposals fresh by constantly reviewing, editing, and revising them. This is especially true if you produce a large volume of proposals and use templates. 

Michael Alexis is the CEO of TeamBuilding , a company that sent out thousands of B2B proposals in 2020 and won over 15,000 contracts. Alexis says:

“These proposal templates can quickly become legacy-documents within a business. They aren’t up-to-date or exactly what your current client needs. I recommend giving every proposal, or proposal over a certain value, a quick read over. A clear and accurate proposal will help you win deals.” 

Alexis observed that the most common opportunities for updating a proposal template include:

• outdated terminology, including the name of a product or service
• inaccurate words or phrases, such as references to meeting in person, when it isn’t possible during a pandemic.
• terms or provisions that are not relevant to the current scope of work

5. Follow Up

Don’t just send off your proposal and then cross your fingers and wait. Follow up with the prospective client in a way that shows you can deliver on what they’re looking for.

Jenn Morgan is a brand marketing consultant and founder of Radically Distinct , a strategic brand marketing agency. As such, Morgan writes about six proposals per month and has revamped hundreds of proposals for clients. Her top advice?

“The proposal is only one piece of the customer acquisition process. Don't rely on the proposal alone to win the deal. Go the extra mile and showcase case studies, follow up with happy customers, and make sure you hit every point of your unique value proposition.” 

Learn More About How to Prepare Your Proposal

Winning proposals is critical to getting the income or funding you want. Strengthening your proposal writing skills will pay off for the lifetime of your business or organization. As with most things, practice makes perfect. It also helps to track your results and analyze what makes some of your proposals succeed while others fail.

These articles are a good place to begin:

Write and Design an Effective Business Project Proposal

Writing and designing an effective business project proposal might seem daunting. But once you know what you need to include and which proposal type to start with, you’ll have a much easier time. 

Get a head start on your business project proposal with one of our professionally designed business proposal templates from Envato Elements if you need proposal templates and other creative assets regularly. 

Or, if you need a single business proposal template, choose one from thousands of modern business proposal templates from GraphicRiver.

Note: This article was originally published in July of 2020. It's been updated with help from Lexi Rodrigo . 

• Start Your Business
• Grow Your Business
• Business Ideas
• Business Plan Writing

The Difference Between A Business Plan And A Business Proposal

A business plan and a business proposal are two distinct documents. Most people mistake them for each other, and a lot of articles on the internet that teach how to write a business proposal are actually just explaining how to write a business plan.

While a business plan focuses on a company’s goals, the problems and solutions it’s trying to address, its potential market size, keys to success, products and services, market execution, and more, a business proposal on the other hand usually focuses on how a certain project would be executed, states a quote for the project, terms & conditions, and several other key pointers.

These two documents are very different with each serving distinct purposes. So it is important you know whether what you need is a business plan or a business proposal at any time.

See Also:   10 Reasons To Write A Business Plan

Reasons For A Business Plan

A business plan envisions your pipe dream. It shows how your business goals, objectives, philosophies, industry analysis, target market, products & services, market execution, competitive analysis, financial projections, and a whole lot more will position the business for success.

It is a detailed document that investors, banks, accountants, and financially savvy individuals can easily review to know what your business is about, its chances of success, and how you’ve planned to scale.

Business Plan Structure

In preparing a business plan, here is a sample structure you should follow to get it done right:

• Executive Summary
• Business Description
• Market Analysis & Strategies
• Design & Development Plan
• Organization & Management
• Service or Product Line
• Sales & Marketing
• Funding Request
• Financial Projections

See Also:   How To Write A Business Plan: The Complete Guide

Reasons For A Business Proposal

Business proposals are usually solicited or unsolicited. A solicited business proposal is written upon request from an organization, institution, or individual. For example, if you receive a Request For Proposal (RFP), what you’re preparing would be a solicited business proposal. In this instance, you’d have to follow the requirements as stated in the RFP.

An unsolicited business proposal, on the other hand, is prepared in response to a client after a sales meeting, giving you more flexibility in curating the contents of the proposal.

Business proposals are limited in scope, and are thus, written for a specific audience.

Business Proposal Structure

Here’s a sample business proposal structure:

• Introduction
• Table of Contents
• The Body of The Proposal

In your business proposal, you will detail the scope of the work, materials needed, cost estimates, project timeline, previous clients, team members, achievements, and a whole lot more in the body of the proposal. It’s a marketing tool, and its goal is to convince the target customer to do business with you.

See Also:   How To Write A Winning Business Proposal: The Complete Guide

What Then Do You Need?

The variations between a business plan and business proposal are wide apart. As shown in this article, they serve different audiences and are prepared for different reasons.

If your goal is to seek investment or a bank loan, a bank and investor ready business plan is what you need. But if your goals are to convince a client to use your service whether the client has asked for a document showing how much value you’d add to them or not, a business proposal is what you need.

See Also:   How To Write A Feasibility Study Report: The Complete Guide

What are your thoughts on the difference between a business plan and a business proposal? Let me know by leaving a comment below.

Image Source: businessnewsdaily.com

Latest articles

How To Increase Your Profits With TradingView

How To Start A Lucrative Export of Limestone From Nigeria and Africa To International Buyers: The Complete Guide

How To Start A Lucrative Export of Calcium Carbonate From Nigeria and Africa To International Buyers: The Complete Guide

How To Start A Lucrative Calcium Carbonate Production and Supply Business In Nigeria and Africa: The Complete Guide

Related articles

How To Start A Lucrative Solar Energy Installation Business In Nigeria and Africa: The Complete Guide

How to start a lucrative ketchup production business in nigeria and africa: the complete guide, how to start a lucrative salt production business in nigeria and africa: the complete guide, 14 comments.

thanks for these information it is really gearing forward toward my goal.

I’m glad you find it valuable, Yusuf.

Do have a great time!

Thanks Edom, I have been reading your publication, they have inspiring, informative, education and above all priceless. keep up the good work.

samuel Chika

Thank you for the kind words and for being a reader, Chika.

I appreciate them.

Great read.I have always confused the two terms.Business plan means you plan for a business and that business has not yet started but business proposal it means you propose something in a business which is ready stand.Thanks for the detailed information.

You’re right Michael.

I’m glad you learned something from the article.

in my understanding, business plan is general road map for the company strategy, but business proposal is one away to find new market or potential client.

I was searching difference between B.Proposal and B.Plan. I found here, Thanks for the publication. IF you also publish “Samples” besides the templates will be more helpful to a person like me, who did not write proposal before.

My Best Regards

Thank you for reading and for the suggestion.

Hello Stan E.,

This is absolutely spot on. No unnecessary embellishments or needless journey. Straight to the point, self-explanatory and informative.

Thanks a million, Sir.

Thank you for reading, Figo.

Not many people really know the differences. They used both interchangeably. Thanks for the clarity.

Thanks Edom, your publication was most helpful to me. I am grateful sir, continue with the good work.

Comments are closed.

Popular articles

How To Start A Lucrative Goat Farming Business In Nigeria And Africa: The Complete Guide + eBook

How To Start A Lucrative Foodstuff Supply Business in Nigeria and Africa: The Complete Guide

How To Start A Lucrative Dried And Smoked Catfish Production Business In Nigeria and Africa: The Complete Guide

How To Start A Lucrative Engine Oil (Lubricant) Production and Supply Business In Nigeria and Africa: The Complete Guide

Recent Articles

Subscribe to get the latest news, offers and special announcements.

© Copyright 2023 - Startup Tips Daily Media

The Difference Between a Business Plan and a Business Proposal

A business plan and a business proposal are very different documents. If you do an Internet search for how to write a business proposal, the results are predominantly focused on writing a business plan. Nevertheless, the two documents have different purposes and goals. A business plan is a factual broad description of a company and its prospects. A business proposal is a focused sales document intended to describe how a company will approach a project, state the value of the project to the client, and solicit the client's business. A business plan is a written presentation of facts. A business proposal is a quote and call to action.

Reasons for a Business Plan

A business plan documents your vision for your business and how you intend to achieve that vision. It contains financial projections of what the business will cost to develop and operate plus an estimation of the revenues to be generated. Its purpose is to provide a reasonably detailed explanation of your business for use by potential investors, suppliers, prospective employees, accountants, attorneys, and other people who need a quick but comprehensive understanding of what your company does and its potential for success. The primary reason for a business plan is to record and convey information.

Reasons for a Business Proposal

Proposals may be unsolicited business ideas presented to a potential customer or partner, or they may be answers to requests for proposals submitted to your company by a potential client. They are limited in scope to a particular project or need. A business proposal also generally has a specific audience. The primary reason for a business proposal is to solicit or develop a business opportunity.

Business Plan Structure

A business plan has three elements: description of the business model , the marketing model, and financial projections. It consists of informative sections, including the executive summary, business description, marketing model, analysis of industry competition, build-out plan, operations plan, the introduction of management, and a discussion of financial issues and projection of results. It is introduced by an executive summary, which can be a dense abstract or a longer marketing tool to attract interest in the business plan. The business plan is an informational document designed to factually display your company's operations and potential.

Business Proposal Structure

A business proposal is written in response to an RFP--A request for proposal (RFP) is a document that solicits proposal, often made through a bidding process, by an agency or company interested in procurement of a commodity, service or valuable asset, to potential suppliers to submit business proposals --should follow the format requested in the RFP.

Generally, this involves a quick description of your company's services and products that are relevant to the goals of the RFP, a reiteration of the scope of work, answers to specific questions posed in the RFP and a quote detailing materials, tools, labor, delivery and other elements of the cost of the project. An unsolicited business proposal intended to create and develop a business opportunity follows essentially the same format but anticipates questions the potential client might have. A proposal is more of a marketing document, designed to convince the audience to do business by presenting a value proposition and a call to action.

MoneyThumb saves you time with financial file converters that automate your small business and personal finance file conversion tasks. Convert scanned and image-based .pdf bank statements straight into QuickBooks with pro products like 2qbo Convert Pro+  and pdf2qbo Convert+ , or choose among our wide range of other converters designed especially for the small business or personal accounting application that you use.

About author

About Author

Denise grier.

Denise Grier is a freelance writer, pro blogger, SEO and WordPress expert.

Related posts

A Definitive Guide to Starting a Small Business

The Benefits of Attending Conferences and Other Networking Events in Your Business Niche

Bridging the Gap Between Online and Offline Sales

If You Own an E-commerce Site, SEO is Even More Crucial So That Customers Can Easily Find You

The Importance of Online Reputation Management for Small Businesses

27 comments on “ the difference between a business plan and a business proposal ”.

Great work! the topic is really an interesting one, well a business plan is something organizing your work like with QuickBooks tool hub, and the business proposal is the opposite of the latter one. For better account, management one should download the QuickBooks tool hub. keep it up the great work. looking towards your next blog.

This could be the best and most simplified article on this issue I’ve come across. Straight to the point and very informative.

Mutesasira wilson

I have really liked it and thus so much grateful of the author,,, High arcuity comrades

Yoruba angel

i have never found it broken down as easy as this before. Thank you. it’s very helpful

Amazing job! The best and most informative article explicitly calling out the purpose and goals of a Business Plan and a Business Proposal.

I really found it helpful. Thank you

Shareefah Ajani

Very helpful and informative ,bunch of thanks

Randy Samuel

Thank you very much for the help.

Sochukwuma Abaeneme

I’m glad I stumbled on your website today. This is indeed a comprehensive Break down.

glad it was helpful

Isaac Game Mawulorm

Thank you. How do I contact you personally for further questions please?

for support, questions contact us at [email protected]

Thanks so much. I found it help.

I am glad this article was helpful to you.

Charly Wiliamse

I have thought so many times of entering the blogging world as I love reading them. I think I finally have the courage to give it a try. Thank you so much for all of the ideas!

I think you should!

Malachi Maso

Really helped much. Appreciate it.

quickbooks tool hub

Thanks for this amazing content on difference on the business plan and proposal.

Quickbooks error 80070057

One of the most typical errors seen by QuickBooks users is error 80070057, which specifies that the parameter is wrong, especially when the company file is accessed. This error code means you don’t have sufficient authorization to remove the files.

download quickbooks

The information you provided is very helpful. You have written an excellent post. Thanks for sharing such a useful piece of information with us.

I find all of this information fascinating, and it is full of useful information, so I’ll be following your blog to learn new things.

QuickBooks Tool Hub

The data you supplied is quite useful.

Hey, you are great doing, thanks for sharing with us. we loved your post. i will try. thank you so much

kashi digital

Awesome quite impressive article thanks for posting this.

Geoffrey T.Crosby

I appreciate your thought there with that one, because of course I agree, but I’m confused with why you thought it should be added. Don’t you think plan vs. actual is included with point 3, “It’s specific. You can track results against plan,” and then point 8 “It has to bring the planning process with it, meaning regular review and course correction?”

QuickBooks Tool Hub is a game-changer! It simplifies troubleshooting and quickly resolves common QuickBooks issues. This comprehensive toolkit is essential for anyone seeking seamless and efficient QuickBooks performance. Highly recommend!

sfia skills Australia

Organizations that excel at change management are better prepared for future changes, building a culture that is adaptable and resilient.

Leave a reply Cancel reply

Your email address will not be published. Required fields are marked

Save my name, email, and website in this browser for the next time I comment.

Check Out Our Most Recent Products

Check Out Our Lender Products

Check Out Our Accounting Products

Check Out the Latest Blogs

A Beginner's Guide to Becoming a Private ...

How the Internet Has Changed the Face ...

A Beginner's Guide to Dividends and How ...

How Accountants Spend Their Time During the ...

A Proven Roadmap to Successful Online Marketing ...

Accounting: Tips for Making Your Busy Tax ...

The Difference Between a Business Plan and ...

QuickBooks Chosen as 2017 Best Accounting Software

The History of Accounting is Fascinating!

The 7 Best Mobile Apps to Help ...

Privacy overview.

Do you have more than one person in your office who needs a license?

MoneyThumb converters are licensed to individual users.  Multiple users will need a multi-user license.

Take advantage of our volume pricing for multiple users.  Select your quantity and the discount will automatically be applied at checkout.

2qfx Convert Pro+ license options:

• Pro+ – Lifetime license with 1 year of PDF+ (Currently Windows only)
• Pro – Lifetime license, without PDF+
• Express – 50-day Express License, including PDF+ (Currently Windows only)

See Compare PDF Convert Editions for details

As Trump creates distance from Project 2025, conservative Agenda47 comes into focus

As the Republican National Convention (RNC) continues into its third day, speakers and party members have rallied around a firm support of Trump, despite a tumultuous few years that resulted in 34 felony convictions for falsifying business records, among other controversies.

At the RNC , political speakers outlined issues the Republican party considers to be some of the biggest facing Americans, including crime, immigration and identity politics. While some also proposed solutions that would be ushered in under a conservative president, voters don't have to guess Trump's plans; instead, they can simply head over to his website.

Starting in 2022, Trump's official campaign began uploading a series of policy plans to its website, detailing how the Republican candidate plans to tackle some of the country's most pressing issues. Called Agenda47 , the campaign materials paint a big picture of what Americans may expect under another Trump presidency.

Here's what to know about Agenda47.

What to know about Heritage Foundation: Main group behind Project 2025 and RNC sponsor

What is Agenda47 and how is it different from Project 2025?

Agenda47 is the Trump administration's official policy platform for the 2024 presidential election. Outlined in a series of videos and statements on the Trump website, the proposals were released during primary election season.

Many of the actions proposed would be achieved through executive order and touch on topics ranging from climate change and education to the economy and immigration.

The policies are separate from Project 2025, an ultra-conservative initiative created by far-right think tank the Heritage Foundation . Project 2025 is something of a playbook for the next conservative president and details a reimagining of the executive branch and plans to overhaul federal government agencies in a conservative image.

It was created by a team that includes several members of Trump's former staff, but Trump has since attempted to distance himself from the Heritage Foundation after President Joe Biden publicly criticized his ties to the project.

Agenda47, on the other hand, is the official outline for Trump's campaign.

What Agenda47 says about education

Trump's proposals for education reform focus on defunding and punishing educators and institutions that do not teach conservative values and creating new organizations to enforce rules created around Republican talking points to "save" schools from "Radical Left maniacs."

These plans include:

• Cutting federal funding for any school or programs teaching "Critical Race Theory," "gender ideology" or other lessons deemed "inappropriate."
• Keeping "men out of women's sports."
• Abolishing teacher tenure.
• Pushing prayer in public schools.
• Seeking out and undoing "Marxism" in education.
• Certifying only teachers “who embrace patriotic values" through a new credential program.
• Undoing DEI policies.
• Encouraging home and religious schooling.
• Creating a "Parental Bill of Rights" to give parents control over curriculum.
• Allowing parents to elect school officials and favoring school districts that enable teachers to carry firearms.

On the college level, Agenda47 wants to punish universities like Harvard for "turning students into Communists and terrorists" and plans to do away with the existing accreditation system, replacing it with one that adheres to GOP values and heavily fines those that don't comply. With money made from the fines, Agenda47 proposes the creation of a free online “American Academy" with "no wokeness or jihadism."

Immigration

Anti-immigrant rhetoric is a prominent feature of Trump's 2024 campaign, a fact reflected in Agenda47. In the discussion of policy around immigration, Trump's preamble relies on the message that immigrants are "criminals" and "birth tourists" taking over America.

According to the plan, Trump will sign an executive order on "day one" to end automatic citizenship for children of "illegal aliens."

The agenda also envisions a slew of proposed executive and presidential orders that will:

• Determine the "correct" interpretation of the 14th Amendment.
• Completely prohibit undocumented immigrants from receiving any form of government benefit.
• Impose a travel ban on certain countries.
• Close the border to asylum seekers.
• Stop refugee admissions.
• Suspend visa programs including family visas, the visa lottery and "non-essential" work visas.
• Stop federal funding to sanctuary cities.
• Create a vetting center for "extreme vetting of foreign nationals,"

Agenda47 says it wants to restore "law and order" to address what Trump claims is "out of control crime ."

The plan proposes an investment in hiring, retention, and training for police officers and increasing their liability protections as well as supporting policing policies like stop-and-frisk and local police working with ICE on deportation.

Agenda47 also wants to:

• Overhaul federal standards on disciplining minors
• Have the DOJ "dismantle every gang, street crew, and drug network in America.” 
• Deploy federal troops for "law and order."
• Establish a DOJ task force for “protecting the right to self-defense.”
• Facilitate the hiring of 100 U.S. attorneys to investigate what Trump believes to be "left-leaning" district attorney and "anti-conservative bias" in law schools and firms.

Agenda47 places a focus on pharmaceuticals and medical devices manufactured within the U.S.

Under the plan, essential medical devices and medicines would be manufactured in the U.S. and federal agencies would be required to “Buy American" to prevent shortages.

It also calls for an increase in the production of drugs domestically, bans agencies from other countries from buying "essential drugs" and demands that pharmaceutical companies only be paid the “best price they offer to foreign nations.”

Agenda47 describes proposed economic policies under Trump as "pro-American" and blames Biden's "pro-China" administration for the poor state of the economy.

The agenda proposes cutting federal regulations on resources like energy, cutting taxes, raising tariffs on foreign producers while lowering taxes for domestic producers, imposing universal tariffs on most foreign products, "eliminating dependence on China" and banning federal contracts for any company that outsources to China.

Welfare, social security

Agenda47 says "Under no circumstances should Republicans vote to cut a single penny from Medicare or Social Security."

In the proposal, Trump blames threats to the programs on Biden's spending and says the Democrats are trying to undo Social Security, though Republicans have previously proposed a higher retirement age and funding cuts.

Trump's agenda proposes cutting tax dollars going to "corrupt foreign countries," "illegal aliens," "left-wing gender programs from our military" and "climate extremism" to save Social Security funding.

The proposal also bans undocumented immigrants from receiving any welfare monies and seeks to address homelessness , banning "public camping" and instead giving unhoused individuals the option to go to some form unspecified of "treatment" or being arrested.

It also proposes the creation of large tent cities to accommodate unhoused people with doctors and social workers on site.

LGBTQIA+ rights

Trump makes apparent throughout his policy plans an anti-LGTBQIA+ stance that specifically targets transgender individuals.

Proposed policies include

Removing any healthcare provider that offers gender-affirming care to youth from Medicare and Medicaid eligibility.

Pushing Congress to pass laws that say “the only genders recognized by the U.S. government are male and female—and they are assigned at birth."

• Defunding any school where a staff member discusses gender identity.
• Passing laws that ban what he calls "child sexual mutilation."
• Promoting education around the traditional nuclear family in schools.
• Supporting private lawsuits against doctors who provide gender-affirming care.
• Demanding any federal agencies "cease all programs that promote the concept of sex and gender transition at any age."

What Is Agenda47? What To Know About Trump’s Policy Agenda If Elected As He Speaks At RNC.

• Share to Facebook
• Share to Twitter
• Share to Linkedin

Former President Donald Trump is set to address the Republican National Convention on Thursday after he clinched the GOP nomination—and a years-old platform dating back to the Republican primaries lays out a range of priorities if he’s elected, including stricter rules for schools, more hardline immigration policies, scrapping climate regulations and creating entirely new “freedom cities.”

Former President Donald Trump appears at the Republican National Convention on July 15 in Milwaukee. ... [+]

Trump’s “Agenda47” consists of a series of proposals his campaign issued on its website during the primary election season, from December 2022 to December 2023, many of which may require congressional action but some of which could be enacted through executive orders—separate from the Project 2025 proposals developed by third-party organizations.

Education: Trump’s proposals for K-12 schools include having parents elect school principals, cutting federal funding to any school teaching “critical race theory,” ending teacher tenure, creating a new credentialing body to only certify teachers “who embrace patriotic values,” encouraging prayer in schools, making it easier to kick “out-of-control troublemakers” out of school, supporting school districts that allow teachers to carry concealed firearms and pushing “school choice” policies.

Universities: Trump has proposed getting rid of existing accreditors for colleges and universities and creating new ones who impose his party’s values on institutions, along with levying significant fines on colleges and universities that he believes “discriminate” against students—with a plan to use those fines to create a free online “American Academy” that “cover[s] the full spectrum of human knowledge and skills.”

Climate Change: The U.S. would again leave the Paris Climate Accord, and the ex-president has proposed getting rid of President Joe Biden’s policies restricting emissions and targeting 67% of new vehicles to be electric by 2032 and massively scaling up oil and gas production.

Justice Department: Trump has pledged to appoint 100 U.S. attorneys who would be aligned with his policies and investigate some left-leaning local district attorneys, also pledging to establish a DOJ task force on “protecting the right to self-defense” and fight purported anti-conservative bias at law schools and law firms.

Crime: Trump has vowed to invest in hiring and retaining police officers (and increase their protections from legal liability), push policies like “stop and frisk,” direct the DOJ “to dismantle every gang, street crew, and drug network in America,” deploy federal troops including the National Guard “to restore law and order” when local officers “refuse to act” and impose the death penalty for drug dealers, drug cartels and human traffickers.

Immigration: Trump plans to prohibit undocumented immigrants from receiving any benefits, end birthright citizenship for the children of undocumented immigrants, reinstitute a “travel ban” from certain countries, pause refugee admissions, mandate “extreme vetting of foreign nationals,” block federal grants to sanctuary cities, end the “catch-and-release” practice of releasing migrants while they await immigration hearings, close the southern border to asylum seekers and suspend visa programs including the visa lottery and family visas.

Economy: Trump proposes cutting taxes and slashing federal regulations, also proposing baseline tariffs on foreign goods in hopes of spurring American manufacturing, which will go up for countries who have “unfair trade practices.”

Healthcare: Trump has proposed requiring federal agencies to buy medicines and medical devices manufactured in the U.S. and barring federal agencies from other countries from purchasing “essential” drugs; he also has plans for an executive order saying the government will only pay pharmaceutical companies the “best price they offer to foreign nations.”

Foreign Policy and Defense: Trump wants European allies to pay back the U.S. for depleting its military stockpiles sending weapons to Ukraine; he has also taken a hardline stance on China , calling for new restrictions on Chinese-owned infrastructure in the U.S., and wants to build a missile defense shield.

Social Security: In a shift from some pre-Trump GOP politicians’ views, Trump has said there should be no cuts to Social Security or Medicare “under any circumstances.”

Homelessness: Trump plans to work with states to ban “public camping” by homeless people and instead give them the choice of receiving treatment or being arrested, and calls for creating large “tent cities” where homeless people would be relocated, which would have doctors and social workers on site, along with expanding mental institutions.

Transgender Rights: Trump takes a hard stance against transgender rights, calling for any healthcare provider providing gender-affirming care for youth to be terminated from Medicare and Medicaid, stripping federal funding from any school where an official or teacher suggests a child could be “trapped in the wrong body,” and encouraging Congress to pass legislation saying “the only genders recognized by the U.S. government are male and female—and they are assigned at birth.”

Big Tech: In line with conservatives’ claims that social media platforms are biased against them, Trump said he’ll pass an executive order barring any federal department from working with other entities to “censor” Americans and prohibit federal money being used to combat misinformation, also announcing steps like altering Section 230 to open up social media platforms to more legal liability.

Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you'll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here .

What Is Project 2025—and Is It Similar?

Trump’s Agenda47 is distinct from Project 2025 , a potential policy blueprint for the next conservative administration—namely Trump’s—developed by the Heritage Foundation along with other third-party groups. While Agenda47 was released directly by the Trump campaign, the ex-president has said he doesn’t have any involvement with Project 2025 and has attempted to distance himself from it, even as the 900-page policy guidebook was created with help from more than 100 people who served in his administration. Trump has also praised the Heritage Foundation’s policy work in the past. The two policy proposals do have many commonalities—like calling to leave the Paris Climate Agreement, kicking out career bureaucrats, pushing “school choice” policies and railing against transgender rights—and it’s unclear how much of Project 2025 Trump could choose to implement if he’s elected.

What To Watch For

Many of the items in Agenda47 and Project 2025 would probably require acts of Congress, but both agendas have proposed expanding the president’s control over the executive branch. Trump’s Agenda47 proposes reviving Trump’s 2020 executive order (which Biden rescinded) that makes it significantly easier to replace career civil servants with political appointees. He also wants to “overhaul federal departments and agencies” to get rid of “corrupt actors,” crack down on government leakers and implement a “Truth and Reconciliation Commission” to fight what the GOP calls the “Deep State.”

Since the last Agenda47 video was released in December 2023, Trump has announced other policy proposals separate from those released under the Agenda47 heading. On abortion , Trump has said he believes that the issue should be left to the states—though many abortion rights advocates still believe he’d restrict abortion if elected. He and the GOP have also vowed mass deportations of undocumented immigrants, which is not mentioned in Agenda47’s immigration plans. He’s also pushed to eliminate the federal income tax on tips for service workers.

What We Don’t Know

What Trump will do once in office if he’s elected. Agenda47 was released during the primary election and it's unclear if Trump will temper his proposals to appeal more to a general electorate as Election Day nears. The Trump campaign has not yet responded to a request for comment on if the ex-president’s agenda has evolved at all since the last Agenda47 proposals were released last year. In addition to Agenda47 and Project 2025, the Republican National Committee has also released its own policy platform that a future Trump administration would also likely take into account, though that echoes many of the priorities already outlined by Trump and the Project 2025 authors—often in less detail.

Surprising Fact

In addition to proposals around more expected issues like immigration, education and defense, Trump’s Agenda47 also includes a proposal for “freedom cities,” as the ex-president has called for using federal land to create up to 10 new cities, which would be roughly the size of Washington, D.C. Plans for the cities would be chosen via a nationwide contest, and Politico reported in March 2023 Trump’s proposal includes investing in “vertical takeoff-and-landing vehicles” akin to human-sized drones and “baby bonuses” in hopes of staving off a declining birth rate.

Key Background

Trump formally garnered enough delegates to nab the Republican nomination on Monday afternoon as the Republican National Convention kicked off, securing his candidacy right as he announced Sen. JD Vance, R-Ohio, as his running mate. The ex-president released his Agenda47 videos as he faced what was initially a crowded field of Republican primary candidates, though Trump ultimately proved to be the clear frontrunner, clinching the nomination in March. The GOP’s policy proposals have come under increased scrutiny in recent weeks as the convention has neared—and as Democrats used the controversial Project 2025 to oppose Trump’s candidacy while President Joe Biden faced criticism over his age—though Project 2025 and Agenda47 have both been published since last year.

Further Reading

• Editorial Standards
• Reprints & Permissions

Join The Conversation

One Community. Many Voices. Create a free account to share your thoughts. 

Forbes Community Guidelines

Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space.

In order to do so, please follow the posting rules in our site's  Terms of Service.   We've summarized some of those key rules below. Simply put, keep it civil.

Your post will be rejected if we notice that it seems to contain:

• False or intentionally out-of-context or misleading information
• Insults, profanity, incoherent, obscene or inflammatory language or threats of any kind
• Attacks on the identity of other commenters or the article's author
• Content that otherwise violates our site's  terms.

User accounts will be blocked if we notice or believe that users are engaged in:

• Continuous attempts to re-post comments that have been previously moderated/rejected
• Racist, sexist, homophobic or other discriminatory comments
• Attempts or tactics that put the site security at risk
• Actions that otherwise violate our site's  terms.

So, how can you be a power user?

• Stay on topic and share your insights
• Feel free to be clear and thoughtful to get your point across
• ‘Like’ or ‘Dislike’ to show your point of view.
• Protect your community.
• Use the report tool to alert us when someone breaks the rules.

Thanks for reading our community guidelines. Please read the full list of posting rules found in our site's  Terms of Service.