Writing A Business Plan:
What Is A Business
Proposal?
Asking the question What is a
business proposal? is kind of like asking What is a business deal? It
could be any number of things.
It could be a paragraph to your boss,
with an idea about how your department might do something better. It
could be a full business plan style presentation for a long-term multi-million
dollar venture.
Is There A
Difference Between A Business Proposal and a Business Plan?
Basically a business proposal is
a partnership, a joint venture of some sort. It is not a business plan,
although the terms are sometimes used interchangeably.
A business plan is designed to
raise money. While money is a component is all business transactions,
the goal of a "business proposal" is to establish a working
relationship to make it happen. It's a way of saying, "I have an
idea, I can solve your problem. Let's make it happen together."
What is a Business Proposal
in Terms of Finance?
A business proposal could
request funding, as in the case of an inventor fine tuning his new concept for
a specific company.
But the business proposal could
include other things as well. For instance, that inventor might also
need access to company proprietary information and support staff.
Can a
Business Proposal Take the Place of Business Plan?
You bet it can! This is
one of the best ways of raising money that we know of. It is a true
win-win situation. It is a kind of joint venture. Approach BigCo
with the possibility of funding your project, or joint venturing your project,
or becoming your project's first major client. There are a number of
ways to approach it.
What is a Business Proposal
in Terms of Presentation?
Take a look at what it is that
you want to accomplish. If you are primarily seeking funding, you will
probably create a Business Plan.
If there are other elements to
your business needs (staffing, patents, space to operate, approval by
committees, etc.) then you will likely need a business proposal. It may
be written or oral.
Whichever it is that you create,
do so with conviction. Few people enjoy working with wishy-washy
partners. Stand tall and demonstrate how you can contribute to bottom
line profit.
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What Is A Business
Proposal
C.J. Ralph,
