Do you need a sample business proposal template that will get investors attention? If YES, here are 20 best ideas & tips for writing a killer business proposal.
What is a Business Proposal Letter?
A business proposal letter, also known as the introduction letter of an organization is a very important tool that is needed when an organization intends to start a business with a new client. A poorly written proposal letter presents the whole organization in a bad light irrespective of if this is true or not.
A properly written business proposal letter will portray a business as a serious and effective business enterprise; it presents a chance to tell other companies and investors what you have to offer and why they cannot do without your service.
What a Properly Written Business Proposal Can Do for You
A high quality business proposal letter should be able to grab an investor’s attention at first glance. A business proposal letter is one of the many business letters that are of critical importance to the success of a business. Since the essence of a business proposal letter is to get new businesses, you should make sure that the letter is perfect in every sense of the word.
A business proposal letter usually directs its attention to possible business partners or investors who need to see that an opportunity actually exists in the business before they will give their approval to the business project.
A business proposal is not just limited to starting a new business; it can also come in handy if you intend to expand an already existing business. Apart from the previously mentioned reasons, a business letter also serves the purpose of:
- To present the business idea to prospective investors
- Give a clear idea of the goals and objectives
- Elaborate on the steps that the person intends to take in order to achieve that goals that had already been listed out
- To explain in succinct terms how the business idea is different from what other people have on ground
- To grab the investors’ attention and persuade him to invest
- To provide details about the product and services that you have to offer
Business proposal letters vary, and thus their content and format would vary in response to the purpose for which it was drafted up for. The most common types of business proposal letters are business partnership proposal, business funding proposal, business project collaboration proposal, business sale proposal and business vendor proposal.
Here are 20 tips that will help you to write that perfect business proposal letter that will get the attention of investors.
20 ideas and Tips for Writing a Business Proposal Letter to Investors
1. Be polished
Always make sure that your business proposal letter is polished because most a times, your letter will make the first impression in the mind of your recipients or investors. You must use your organizations professional printed letter head when writing this type of letter.
Carry out proper research to find out the exact person and department to which you are supposed to address the letter. This will help you prevent the embarrassment of addressing the letter to the wrong person or department. Start your letter with your business name, address along with your contact details followed closely by date and then the details of the recipient.
2. The opening paragraph must be well crafted
The opening paragraph of your business proposal letter must be engaging so as to not only grab the attention of the investor and encourage him to read all the way to the end but to also let them know why your product or service is a must have.
Choose your words carefully when writing the first few lines that will translate into the first paragraph because a good opening can be the difference between a proposal letters that gets read and ones that ends up in the waste paper basket. With the current fluctuating economy, starting your business proposal letter by offering to help them save money is always a win.
You should keep in mind that the investor you are trying to woo may also have other proposal letters on his or her desk so you must standout and attract their attention with the first few lines. Your business letter should take the specifics of each client’s need into consideration and as such you can’t just use the same template for all your customers. Your letter should be tailor made for each client.
3. Include your company’s qualification
Always include the qualifications your company has under its belt while writing a business proposal letter. If the services you are offering will require that the investors will come to your office, describe how top notch and prestigious your facilities and equipment’s are. Also remember to include the training that your employees have. By doing all these, it puts the company in good light and also highlights the fact that they are capable of doing what it has promised to do because it has the facilities and manpower to achieve it.
4. The right format: Irrespective of whether you are drafting the letter as a hard copy or a soft copy (email) you should endeavor to make sure that it is properly formatted. The right format will enhance the readability of your letter. Choose font sizes and styles that will be comfortable for the reader.
5. Identify the problems of your potential clients are facing
To write an effective business proposal letter, you should try to identify the need and problems that your clients are encountering and facing. For example, do they need a cheaper alternative for goods and service as compared to what they already have on ground? Is the service or goods that the current providers are providing below par to what you can offer?
Make sure you outline this as it will go a long way to show that you have carried out your research properly on the subject. If possible, provide statistics about the trends in your clients operation so as to further reinforce the fact that you have done your homework.
6. Respond to their objections
This is a very important step that is involved in proposal letter writing yet, it is sadly forgotten most a times. You should not just only state the current problems that your clients are having with solutions, you should also try your best to address the doubts and objections you feel that they may have regarding your product or service.
For example, it could be that the client is hesitant to try something new by choosing a new service provider, or they feel that you and a competitor are offering something similar at the same price. It is up to you to quell these doubts that may arise from the end of the investor.
7. Ask for help: If you are confused or you are not sure how to go about writing the letter, don’t be afraid to ask for help from people who are capable of giving it to you.
8. Less is more: More information does not necessarily translate into a captivating business proposal letter. Try to keep the letter succinct and rich in details rather than lengthy. This is because; a long letter has a tendency of becoming boring to the reader. Also, you don’t want the relevant ideas you have to be lost in a sea of irrelevant text that does not advance your cause in any way.
Clarity is the hallmark of a good business proposal letter. The essence of this letter is to communicate and it will make no impact if it is ambiguous, vague or incoherent. Write in simple, clear, short and declarative sentences. Often times, people think it is best to use big words to show just how intelligent they are but in reality this is not the best approach.
For example, instead of using advantageous use helpful, instead of ameliorate use improve. Also if a word does not really need to be in a sentence, remove it. Using unfamiliar or complex terms interferes with comprehension and slows the reader down. Also, remove all redundant words or phrases that are in the letter as they only exist to occupy space and make it lengthy.
For example, instead of using the phrase “in spite of the fact that” use “although”. Do not use any foreign word or phrase, a scientific word or any other type of technical jargon a long as there is an English alternative that is easier to comprehend and understand.
10. Appeal your audience
There is a saying that when you are fishing, you don’t use bait you like rather you use a bait that the fish will like. In a nutshell, this is what a good pitch is all about. Your business proposal letter should be written from the perspective of the client. What is it that your client needs? What does he want from you? What will solve their problems? If you can carry out research and find out what matters to your investors, then those are the things you should include in your letter to grab the attention of the investors.
11. Break it up: use paragraphs, sub-headings and bullet points to break up your letter into smaller units. This is because a big clump of text hardly ever looks inviting and as such your letter may not get to create the desired effect you would want it to have.
12. Use power talk: when writing a business letter it is necessary to use compelling language such as (“I am confident that you will find our proposal of interest”) rather than a “weak talk” like (“I hope you will find our proposal of interest”). Try to exude confidence through your writing. Writing with conviction and certainty will make the investor feel confident about what you have to say.
13. Get your spelling and grammar right: a business letter should be written to impress your audience or investors and grammatical blunders and spelling errors will only succeed in doing the opposite of that. Nothing is as embarrassing as a typographical error in a formal document. Make sure that everything is as it should. Grammatical errors can make investors doubt your authenticity and capability to handle a project.
When you are done with your writing, you should endeavor to check it thoroughly for the existence of any form of error. Typos happen and even the most efficient writer can make a mistake, yet, people will still judge you harshly for any typographical error they notice in the letter. Print the document out for your final proofreading because you can miss something when they are in a computer screen. Read through the letter twice.
The first time you should concentrate on the overall meaning the letter has and on the second time you should check for errors. When you are done with this put the letter aside for some time and get back to it after a while to have a fresh perspective on things. Also a new set of eyes can detect errors that you may have overlooked so always get a second opinion.
15. Call to action: when writing a business proposal letter, you should have an action that you would want the investor to take, so make sure that you include a call to action in your letter. Don’t just assume that they will figure out the decision they should take because they may do nothing or they will not do the right thing so you have to state in explicit terms what you want the investor to do at the end of the letter.
16. Ditch symbols and abbreviation: if you are texting friends and family members then using &, etc. and e.g. is quite acceptable. But when writing a business proposal letter, symbols and abbreviation are very unprofessional and should be avoided at all means. Avoid overusing exclamation marks irrespective of how good a deal you are offering is or how energized you may feel. Use professional words like “regards” and “best” over “xoxo” which is highly informal.
17. Limit your letter to a page: a business proposal letter is not supposed to be long. It should be short, succinct and straight to the point. Try to limit your letter to just one page in length. Studies have shown time and time again that business people do not like reading lengthy text.
18. Don’t use a template
Most times business owners have the tendency of sticking to a particular template of a business proposal they have while just changing a few things like date and investors name. Having a template that you can look at to help you structure your business proposal letter is not wrong, however, sticking to one letter for all your clients is very wrong.
Every business letter should be varied according to the needs of a client because what works for one customer may not work for another. A winning proposal letter for a particular investor may be a losing one for another investor. Therefore re-use templates with caution.
In case you are not skilled as a writer, you can always employ the services of a freelancer to help you write an engaging business proposal letter.
As such, if you do not know how to write a business letter, you may want to consider this sample business proposal letter template. You can tailor it to fit your specific needs. Business proposal letters are written as a cover letter to go with an actual business proposal.
Such letters serve as an introduction to the actual proposal. Business proposal letters should be powerfully written since this is an indicator of the overall quality of your pitch. Below is a sample business proposal letter template from a stationery company to a prospective client.
A Sample Business Proposal Letter Template
November, 14th, 2017
Holler World Associates
13598 Nancy Wilson Way
Attn: Brenda Maya
Dear Ms. Maya,
Are you concerned about the cost of running your business and are you looking for how to cut the costs of your company by 50 percent? Our company has done just that for several companies and we can do the same thing for you. Our proven track record speaks for itself. We have been able to come up with very cost effective stationeries for different companies in and outside the United States of America.
We promise to review your current system and determine how it can be improved. We will then give you advice on how to improve your overall stationery management processes. Our product can help save you time, money and headaches!
The enclosed proposal shows what we can do to help you along the way. The business proposal includes details of what we have done to help many clients. You will also find examples of the work we have done for other companies similar to yours.
I will call you soon to discuss the possibility of us working together. I am confident we can come up with a plan that will save you money.
President of Altoist Stationeries Limited