Any properly conceived idea, service, project, plan whether theoretical or practical in

nature, put forward for action or implementation is a proposal

BUSINESS PROPOSALPro-forth, poser-to

place /put

OBJECTIVETo buy a serviceTo convince the reader of the existence of a situation and to take a course of action

To convince your department of your need for a new technology

To provide you with funds (loan/grant)

TYPES OF PROPOSALSInternal and External-according to the target audience

Solicited and unsolicited-according to the source

Business Proposal, Research Proposal, Technical Proposal- according to contents and objectives of the proposal

Internal ProposalWritten to someone within your organization ex:

The chairman of a company asks the personnel manager to develop a training program for the new recruits

No need to include qualifications/bulky information

Can be submitted in the form of manuscript/memo.

Content of an internal memo comprises of the problem, suggested solution, the financial effect and how the suggested plan is better than the existing one

External ProposalWritten from one separate, independent organization or individual to another such identity .

Recipients could be existing or prospective clients

ex: An independent consultant can propose to do a project for another firm / An advertising agency may propose to design a scheme for a nationwide ad campaign for a bank

Differences between Internal and External ProposalsInternal ExternalAre the basis on which decisions are taken within the organization

Are the basis on which contracts could be drawn up

Are not competing with other proposals

Not a legal binding

Are prepared for recipients outside the organization

Are meant for internal decision making

May often compete for business

If accepted, external proposal become legal binding

Solicited ProposalResponse to some invitation by other companiesCompanies invite proposals from goods/service providers to compete for the business. Such invitations are called Request for Proposals (RFP)

RFP contains details about the project, its nature, specifications, a time frame and an approximate cost

RFPs are sent to various reputed companies and are also published in newspapers and magazines

As a response to such invitations, business proposals are made

Unsolicited ProposalGenerally promotional in natureWhen you initiate a proposal yourselfGenerally persuasive in nature and claim to solve an existing problem in a company

Form of detailed advertisement/brochure that introduces the company to prospective customers showing variety of services it could provide , range of expertise it possesses and possibly earlier clientele

Can be internal/externalEx: you perceive that some changes in the hiring policies of your company could improve morale and performance of company’s employers-unsolicited internal

Ex: a govt agency is attempting to improve working conditions and advertises the availability of funds for rectifying common problems. The agency invites any qualified person to submit a grant proposal using agency’s guidelines.-external solicited document

Business Proposal-If a proposal deals with any aspect of business , commerce or industry

Research Proposal-If it is concerned with a project requiring scientific enquiry or systematic investigation

Technical Proposal-When the objective of proposal is to modify or create something requiring technical knowledge and skills.

Classification According to Contents and Objectives of the Proposal

CHARACTERISTICSAIDAAttention-is caught towards what is being proposed

Interest-is created by pointing out how the plan would be executed

Desire- to accept by highlighting the benefits or advantages that would accrue

Action-An impulse for action is induced by persuasive reasoning

STRUCTURE (structure of solicited proposal is determined by the person or organization inviting it. In Unsolicited proposal there is choice in respect of elements to be included and in their sequencing. )

1. Title Page Cover of the proposal Contains-title, name & designation of

proposer, name of the organization to which he belongs to, month & yr of submission

2. Table of Contents-given only when the proposal is long running into 15 or more pages

STRUCTURE (contd..)3. Executive summary-Summary of entire proposal Problem Solution (what will take place/how many people will benefit/where it will operate/for how long/who will staff it)

Funding requirements Organization & its expertise4. Statement of the Problem-Enables the reader to learn more about the issuesPresents the facts and evidence that support the need for the project

Establishes that your organization understands the problem and can reasonably address them

STRUCTURE (contd..)5. Objectives-To what extent your proposal is going to solve the problem or effect the change should be clearly specified

May be listed in terms of long term and short term goals

STRUCTURE (contd..)6. Technical Plan-Describe In technical terms how the proposal would solve the problem

Discuss theoretical principles / analytical or experimental methods to be followed

Equipment/instruments/materials needed and how you are going to utilize them to execute the proposed project.

In case of production of a new instrument, component or part of a machine, highlight technical/operational advantages that would accrue from it.

STRUCTURE (contd..)7. Management PlanDescribes how you will accomplish the proposed task

Indicates plan of action (division of work/time required for completion), facilities required/personnel who will execute the project

Plan of action should specify how work will be divided, who will be responsible for each division and time required

Provide a brief description of qualifications , achievements and experience of personnel involved in execution

STRUCTURE (contd..)8. Cost Estimate- Kingpin in the proposal Solicited-cost data required would be already indicated, only supply information

Unsolicited-show all the items of anticipated expenditure

Estimate should be realistic & complete Include the amount required for the following items-materials/equipment/computer time/lab testing/salaries of personnel /travel/office/contingencies/infrastructural facilities (land, building, water, electricity..)

9. Conclusion (optional)-state briefly the significance of the project and highlight once again the benefits

Format of Proposals

Cover Letter/Memo with Separate Proposal-Write a brief cover letter/memo and attach the proposal after it

Business Letter proposal-Put the entire proposal within a standard business letter

Memo Proposal-Put the entire proposal within a standard office memorandum

Proposal Layout & DesignTimes Roman10-12 point typeUse of color whenever possibleExtensive use of graphics

Simple Proposal Formula

Who (will do the work/is responsible or to be contacted)

What (needs to be done or delivered/cost)Where (will the work be done/will it be delivered)

How (will it be managed/long will it take/will the work benefit the customer)

When (will you start/will the project be complete/is payment due)

Why (should the customer selected the proposal)

Tips for Effective ProposalSpecify the scope clearly.Be realistic in your estimate of time, money and personnel required.

Establish your credentials for accomplishing the task.

Highlight the benefits that would accrue to the customer.

Keep the proposal short and precise.Use plain language.Ensure that the presentation and layout are neat and attractive.