A business plan is a guide for your business, a roadmap that outlines goals and details how you plan to achieve those goals. It is used to keep you on track (internal use) and to support any applications you might make when seeking investors, or when applying for commercial loans (external use). While a business proposal on the other hand is used to try to attract and acquire business. It pitches your business, product, or service to a potential client, vendor, or supplier. A client, vendor, or supplier might also request a business proposal from you when trying to evaluate whether or not you’re someone they want to work with, or whether or not you can provide the services or products they require. Write a good proposal and you might snag business; write a poor one, and you may lose out, even if you’re offering the best service out there.
A beautifully created and well-written proposal can land you new clients, jobs, and projects that you might never have dreamt of before. All that consequently leads to your solopreneur brand only getting bigger and more well-known, which is the ultimate goal. Writing great proposals, submitting winning bids, and tracking client payments are an important part of running a successful business.
Another thing to remember when writing a business proposal is to always put yourself in the shoes of your potential clients. Doing this will help you provide information on things that they would most likely ask, such as “Why should we pay you this much amount for the solutions you’re offering” and “How can these changes benefit me?”
Business Proposal vs. Business Plan. Quite often, the terms “business proposal” and “business plan” are used interchangeably, giving you the impression that they are one and the same. But they are not. A business plan is a “formal statement of a set of business goals” and how these would be achieved. These documents sometimes can be included in a business proposal.