Money and Business

The Workings of Business Proposals

Modern economics revolve around the world of business and represents the free spirit of our current global economy. Anyone who has the resources and the guts can enter the world of business but it takes patience and quick thinking to succeed in it. Where do business ideas start? Sometimes we may stop and think of something and ask ourselves, how did they come up with this? A good business idea alone would not suffice to start on its own but needs careful considerations of each aspect in order for potential investors and buyers to purchase a product. In order to have these qualifications, one must have a solid business proposal. In essence, a business proposal is a written offer of a seller of a certain product to a potential buyer. In order for an up and coming business to go all out, they need to have good business proposals to customers who would otherwise choose a rival competitor who has a better offer. This is essential for a product to be properly introduced to potential buyers or else it would be completely ignored.

Proposal Categories

  • Formally Solicited

These proposals are written for specific requests of buyers. These are usually meant for multiple agencies to respond to in order for the one who requested to have a broad selection of the type of proposal that appeals to them. They could come in different forms namely Request for Quotation (RFQ), Request for Proposal (RFP), Request for Information (RFI), or an Invitation for Bid. Each require particular information regarding a certain aspect of a product or service meant to be evaluated coming from different point of views.

  • Informally Solicited

This is the type of proposal which directly revolves directly between individual buyers and sellers. Usually this is requested by a costumer to one particular product or service provider if they are interested in the details regarding the product. This is also known as a sole source proposal since it is solicited from one particular provider about one particular product or service. Instead of specific information on certain aspects, this type of proposal deals on the general overview of the product and have no particular requirements to be met other than what is necessary according to the discretion of the one making the proposal. These proposals are written in no more than 25 pages on average and some even exists with less than 5 pages.

  • Unsolicited Proposals

Unlike the previous types of proposals which come from the request of the buyer, this type of proposal is made by sellers to attract potential sales. They don’t aim at any particular buyer but whoever takes interest. They are always general and aim at pointing out the general strengths and marketing possibilities of the product. They are mainly in the form of marketing brochures or product give-away. The idea is to put the buyer’s needs in a context favorable to the product and aims at educating the buyer on the benefits of the product and its potentials.

Money And Business