What Is the Difference Between a Business Plan and a Business Proposal?

Difference Between Business Plan and Business Proposal

The terms “business plan” and “business proposal” are different. A business plan documents a company’s growth strategy. A business proposal asks someone to take a specific action (e.g., invest in your company).

Writing a Business Proposal

Here’s how to write a business proposal:

A business proposal is a formal document created by a company and given to a prospect to secure a business agreement. It outlines the problem statement clearly, making planning and budgeting easy for both parties. Follow six steps to write a persuasive proposal:

  1. Introduce the reader to your proposal.
  2. State why you’re sending it, what you plan to solve, and how.
  3. Point out how you’re the best fit for their needs.

Add a table of contents if it’s lengthy to make navigation easier. Do research first, outline the parts of your proposal, and build the title and table of contents. Use business proposal software for seamless writing and presentation.

Writing a Business Plan

How do you write a business plan?

A business plan presents company facts such as operations, goals, and market potential. On the other hand, a proposal requests a deal and quotes prices. The difference is a plan presents facts while a proposal requests a deal and quotes prices. A plan documents vision, while a proposal provides information for investors on a project.

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