Difference Between Business Proposal And Business Plan

Business Proposal Versus Business Plan

BUSINESS PROPOSAL

A business proposal is perhaps one of the most important documents every entrepreneur needs to learn how to write. It can spell the difference between success and failure in our business world today.

Writing a winning business proposal will generally involves a lot of initial groundwork or research about the prospective client. Once you become aware of  that which the  client seeks, then you are already  guided on how to write an impressive contents. Just make it clear, precise and simple.A poor or badly written Business proposal can ruin your chances of getting or securing a new client or buyer, but with great one, you are likely to win your way through.

You might not be a good writer even when you have great ideas, why not try getting someone who is, you never can tell who will be reading your business proposal. You must make sure there are no grammatical, spelling or punctuation errors as the case may be. More so, keep it simple as possible. Avoid complex vocabularies in your sentences.

Before one starts writing a business proposal, there is need to first understand what it is and learn the basics. Often times, most people use the terms ‘business proposal’ and ‘business plan’ interchangeably, giving you the impression that they the same. This is the most common misconception, A business proposal is not the same as a business plan.

A business proposal is a written document that offers a particular product or service sent to a  prospective  buyer or client. It’s generally a document you would send to a prospective client or buyer, outlining the services or products you’re offering, and explaining why you’re the best fit person for the job or offer. From this it can be seen that the essence of a business proposal is to offer a product or service to a buyer or client.

On the other hand, a business plan can be seen as a ‘formal statement of a set of business goals’; it also outlines how these goals would be achieved. Business plan is only part of what is included in a business proposal. One can certainly pull information from the business plan while writing a business proposal to a client. This is in fact, a great way to start your business proposal. So don’t be confused with the two; they are distinct and separate.

It is important to note also that business proposal can be solicited proposal or an unsolicited proposal. A business proposal when requested by a business or individual to complete a specific job; to supply a service; or in some instances to be the vendor of a certain product, is called a solicited proposal. While unsolicited proposals are those submitted to clients without request being made.

BUSINESS PLAN

Success in business doesn’t just happen- It usually comes through proper planning. Business planning is the first and most important step for the success of any business after the conception of the business ideas.

Like earlier spelt in the paragraphs above, a business plan can be seen as a ‘formal statement of a set of business goals’; it also outlines how these goals would be achieved. A business plan thus, will help an entrepreneur to clarify and focus on the objectives and goals of the prospective business, by doing this, loss is unlikely to occur at the tail end.

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The business plan document can range in size from a simple few sentences to more than 100 pages as the case may be. A typical business plans can have an average of 15 to 20 pages. And these broken into sections which may not be limited to: the overview or summary of the plan, a business description, market strategies, competition analysis, design and development, operations and management, and financial information.

Benefits of business plan

A well written business plan will help an entrepreneur seek investment for a business, whether it’s a startup or not. Investors need to see a business plan before they decide whether or not to invest or make commitment in the particular business. They’ll expect the plan to very comprehensive to cover all the main points.

Back up a business loan application. Banks and Other Lenders just like investors, would  want to see the plan and will expect the plan to cover the major points before they decide to grant loan facility or funding for a business.

A business plan will also help an entrepreneur to map the future. It is not just required to secure funding at the start-up phase, but an important tool   to help you manage your business more effectively in the future.

The most important reason to write out a business plan regardless of any financing option concerns is that it can help you to stay organized and remain focused. It is blueprint that can help you focus your energy and keep your company or team on track.Without proper planning of the business it is very possible for entrepreneurs to stray away from target or set goals.

More so, business plan is very useful for future appraisal of the business. With it, you can use to track your performance and make midcourse corrections when required.

Most entrepreneurs or aspiring entrepreneurs send out tonnes of business plans to various investors or lenders but are continuously turned down, and there are those that get good results   even on first attempt. The question now is…How do they do it?

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