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Business Proposal It is a method to persuade people to agree to the writers view. It is systematic, factual, formal and descriptive set of recommendations.
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Page 1: Business Proposal Ppt

Business Proposal

It is a method to persuade people to agree to the writers view.It is systematic, factual, formal and descriptive set of recommendations.

Page 2: Business Proposal Ppt

Classification of business proposals

• Based on what is proposed• Based on origin• Based on audience• Based on forms

Page 3: Business Proposal Ppt

Based on what is proposed

1. Commercial proposal: is to sell a specific product or solution to meet a particular need.

2. Qualification proposal: is made to solve a potential client’s problem. It does not offer a concrete solution but attempts to demonstrate the devise and implement the steps to an effective solution

Page 4: Business Proposal Ppt

Based on Origin

1. Solicited proposal: is one which is prepared in response to specific invitation.

A. Advertised proposal: Proposals are requested when the desired product or service can be defined concisely and quantitatively stated in detailed Invitation for Bids(IFB). These proposals favor the lowest bidder.

B. Negotiated proposal: It allows the writer to specify a proposed solution to the need. It originates with a request for proposal(RFP) from the potential customer. Negotiation proposals usually are not awarded on the basis of price alone. It takes place on quality of the solution and the ability to implement that solution.

Page 5: Business Proposal Ppt

Unsolicited Proposal

• Unsolicited proposal: is a persuasive offer made to potential customers. The proposal is made attractive to convince. Sometimes, a proposal of this type is made after a preliminary enquiry.

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Based on Audience

1. Internal proposals: usually are directed at a specific level of management within an organization such as suggestion box ideas.

2. External proposals: aims at current or prospective customers. One company proposes to satisy another organizations need.

Page 7: Business Proposal Ppt

Based on forms

1. Preliminary proposals: (sometimes called short proposals) find application in service areas such as advertising.

2. Letter proposals: are brief proposals written for projects that are not complex or expensive enough to warrant a longer document.

3. Detailed proposals(sometimes called formal proposals )are the longest and most complex ones. They are usually commercial proposals and contain precise implementation plans and cost estimates.

Page 8: Business Proposal Ppt

Proposals FormatPrefatory parts Cover letter or memo. Title page or

cover. Reference to authorization. Table of contents. List of illustrations

Main parts Proposal summary, Purpose, Problem or need. Background. Benefits of the proposal. Description of the solution, Evaluation plan. Qualification of personnel. Time schedule and cost.

Supplementary parts Glossary, Appendixes and Reference list.

Page 9: Business Proposal Ppt

Brief explanation of the important items in the proposal

• Cover letter: Include a letter of transmittal, a title page and a table of contents.

• Executive summary: a persuasive summary briefly stating the need or problem, the solution, the implementation plan and the costs and resources required.

• Introductory materials: the introduction can include the background or problem which the proposal is addressing, the most immediate cause of the problem, the purpose for studying the problem or submitting the proposal, the goals of the proposal or the benefits to be derived from adoption of the proposal.

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Contd…

• Need or problem statement: state the problem concisely, Differentiate between symptoms of the problem and the root problem.

• Technical solution or the methodology: this section is the heart of the proposal. It not only presents the best viable solution meeting the customer needs based on the latest research, current technology. Uses facts, figures and expert testimony. Outlines the implementation of the technical solution, Discusses the methods. Identify major and minor tasks. Provide a time-line of completion of each task. Gives the specification of materials and products used.

Page 11: Business Proposal Ppt

Contd…

• Management profiles: This part informs about the individuals and teams that implement the solution. Gives qualifications and related backgrounds. Includes resumes of key personnel in an appendix. Highlight company’s previous experience. List work done for other clients in the area of interest and the scope or depth of the work performed. It furnishes how to organize the project and delineates authority and responsibility. Designs the work load and structure from start-up to completion.

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Contd…

• Budget: Provides breakdown of costs. Lists any sub contractors and gives their qualification and costs. Describes the method of payments and clearly state any penalties for late payment.

• Conclusion and Recommendations: summarizes the problem and the proposed solution. It brings the key themes and strategies and highlights the strengths

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Contd…

• Bibliography: Includes sources, projects scholarly or authoritative image.

• Appendices: Has resumes of key personnel, letters of reference, highly specific details of implementation and other relevant material.

Page 14: Business Proposal Ppt

Technical Proposals

The elements of Technical Proposals are:1. Summary2. Technical section3. Management section4. Cost estimate

Page 15: Business Proposal Ppt

Summary

• It is the entire proposal in a nutshell. It needs to be concise and comprehensive. It consists of the following:

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SummaryElement description

Proposer Name of the proposer, his designation and the organization to which he belongs.

Offer A clear statement of the technical requirement the proposal fulfils.

Problem An analysis of the problem.

Solution The method of solution proposed . A description of the hardware required.

Benefits An estimate of the significance of the end product resulting from the proposal.

Resources The duration of the planned project. A realistic cost estimate. An assurance of the capabilities and experience to execute the project.

Page 17: Business Proposal Ppt

Technical section

• Describes the nature of the problem, its background and the work already done in the area

• Defines the tasks that one proposes under the proposed project, clearly giving its scope and limitations.

• Indicates the methodology to follow and the various phases of results.

• Gives a plan of action for the utilization of proposer’s achievements.

• Highlights unique aspects of design, process or application. States also any major technical problems visualized related to the implementation of solutions offered.

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Management Section

The following details of persons available for the project are to be provided:1. Educational qualifications2. Professional achievements.3. Experience in the area of the proposal4. Publications in the concerned professional

field.

Page 19: Business Proposal Ppt

Cost Estimate

• In solicited proposals, the amount and type of cost data required are given in the request for the proposal by supplying the relevant details including all the items of anticipated expenditure. The estimates should be realistic, accurate and complete. Most technical proposals contain the cost analysis of material, equipment, salaries and wages, travel, contingencies, publications and outside consultant services.

Page 20: Business Proposal Ppt

Research Proposal

• A research proposal provides the following benefits:

1. Communicates about the approach, strategy and techniques to be followed in conducting the study.

2. Serves as a guideline for conducting and controlling the study.

3. Helps provide mutual understanding between the firms management and research project.

Page 21: Business Proposal Ppt

Structure of Research Proposal1. Title page2. Abstract3. Table of contents4. Problem statement or Need for Project5. Review of related literature6. Goals and objectives7. Procedures8. Facilities9. Personnel10. Supplementary service and support11. Evaluation12. Budget 13. appendix