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1. Preparing Business Proposals
Both large and small companies use proposals to solicit or place competitive bids on projects.
Most proposals are external
and are a critical means of generating income.
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Proposals are persuasive written offers to solve problems, provide services, or sell products. While internal proposals may take the form of
justification or recommendation reports, most proposals are external and are a critical means of selling services or products that generate
income.
What does a firm prepare when it knows exactly what type of product or service it wants?
A feasibility report
An unsolicited proposal
An RFP (Request for Proposal)
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When government organizations or businesses have a specific need, they prepare a request for proposal (RFP), a document that specifies their
requirements. Organizations prepare RFPs that specify requirements for a project, service, or product. RFPs are necessary to enable
organizations to solicit and compare competitive bids. It allows them to compare apples to apples.
Read the scenario, and answer the question.
Your family owns a small construction company, CopperBuild, that builds custom homes for an upscale architectural firm. Your two
cousins recently joined the family business, and CopperBuild has decided to expand into the commercial building market. Your uncle and
cousins are preparing a proposal bid for a small shopping center on the west side of town.
What should you remind your cousins about as they prepare the proposal bid? Check all that apply.
Avoid mere mechanical descriptions.
Emphasize the benefits to the recipient.
Make it easy for the recipient to understand and respond to your proposal.
Provide only mechanical descriptions and details.
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Proposals should be easy for the reader to understand and respond to. Because proposals are sales presentations, they should be written in a
persuasive style that emphasizes benefits and underscores the vendor’s expertise rather than merely providing mechanical descriptions and
details.
Your hook can
promise low costs or speedy results
in order to make your introduction more persuasive.
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Most proposals begin by briefly explaining the reasons for the proposal and by highlighting the writer’s qualifications. However, you can make
your proposal more persuasive by providing a hook that promises low costs and speedy results. Analyze your audience and evaluate what will
engage it immediately in your report. Sometimes it is a good idea to put off writing your introduction until after you have completed other parts.
You can then better connect your introduction to the content of your message and the interests of your readers.
What section of a proposal presents a list of project costs?
Budget
Staffing
Authorization request
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The budget section of your proposal should present a list of project costs.
What should be promoted in the staffing section of the proposal?
Cost savings for internal staff as well as benefits costs
The credentials and expertise of the reader’s company
The credentials and expertise of the project leaders and support staff
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Use the staffing section of the proposal to promote the credentials and expertise of project leadership and staff.
Final reports represent the end product of a thorough investigation and analysis. They provide an ordered format for presenting information to
decision makers and are divided into segments to make information comprehensible and accessible. Formal reports usually consist of three divisions.
Which element of formal proposals is similar to that of informal proposals?
Tone
Length
Style
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Formal proposals do not differ from informal proposals in style. They differ in tone, structure, and length. Formal proposals can range from 5 to
200 pages and often contain additional sections, such as an executive summary and a letter of transmittal.
Read the scenario, and then answer the question.
The American Cancer Society has issued an RFP to fund preventive health initiatives in your community. Your organization is planning to
submit a proposal.
Which type of proposal is most appropriate in this situation?
Formal
Informal
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Big projects and many external projects require formal proposals. Use informal proposals for smaller projects and shorter proposals.
Most externally supported grants and initiatives require a formal proposal. You would submit a formal proposal to the American Cancer Society.
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