How It Works

Business proposalHere’s the situation: a potential client asks you for a proposal for services or products in response to a Request for Proposal (RFP) or Request for Quote (RFQ), but where do you start? Before creating realistic financial projections, your accountant will want to know approximately how many seats you’re planning on having, what your average check will be, and approximately how many covers per day you plan to do. Being conservative in these estimations is key as these three data points will be used as the basis for figuring out whether your concept is financially feasible.

If you know your business, are familiar with and able to make financial projections, and have done the necessary research (for example, on how to price your products or services to meet your competition), you may be able to quickly (in one day) create a stripped-down version of a business plan.

Here’s the order your proposal sections should follow: 1) introduce yourself, 2) summarize the prospective client’s needs, 3) describe your products, services and costs, and finally, 4) provide information about your organization, your credentials, and your capabilities.

On the other hand, when a potential client asks for a proposal, they’re essentially saying, I have this problem, but I want you to suggest the best solution and tell me how much it will cost.” By requesting a proposal, your potential client is hoping you have an understanding of their needs, or will at least do the research the gain the understanding.Business proposal

Rather, the financial projections section is a detailed account of your company’s projected financial picture based on your careful data-collection and research efforts which have given you an understanding of your company’s position in the market in relation to that of your competitors.