Topics in This Chapter
Chapter 13
Proposals, Business Plans, and
Formal Business Reports
Ch. 13, Slide 2
Writing Proposals
Ways of Doing Business
Catalog Order
Online Order
Purchase Order
Unsolicited Proposal>Contract ($)
Bid Solicitation (RFP)> Proposal > Contract ($)
Proposals
• Proposals are written offers to solve
problems, provide services, or sell equipment.
• Proposals are the only way that many
companies get their sales
• An “RFP” is a “Request for Proposal”
Companies Which Use Proposals
Services
Design and Construction
Consultants
Large custom orders (aerospace)
Government work
Contracts
Definition of a contract
- Mutual assent supported by the exchange of
consideration
Mutual assent
- Offer and acceptance with mutual understanding
Consideration
- A promise to perform a desired act or a promise to
refrain from doing an act that one is legally entitled
to do.
Components of a Contract
A contract may be comprised of a body of documents:
Contract (binds all documents together)
RFP
Specifications
Drawings
Proposal
Schedule
RFI’s
Order of Precedence
If multiple documents are included, they must be
referenced in the master document (“contract”) using
binding language
Contracts Under the Statue Of Frauds
Contracts That Must Be in Writing
Writing Is the Sole Evidence of the Contract
Suretyship (co-signing debts)
Executor payments of deceased debts
Marriage contracts (prenuptial)
Sale of real property (real estate)
Contracts taking over 1 year to perform
Sale of goods over $500
Sale of securities
Interest in personal property
Sale of personal property other than goods over $5000
(contract rights, patents, etc.)
Components in Formal and Informal
Proposals
Transmittal form
Title page
Table of contents
List of figures
Executive summary
Introduction
Technical Plan
Schedule
Staffing
Cost Proposal/Pricing
Exceptions/Clarifications
Appendix
Copy of RFP
Generally appearing in formal proposals
Why Proposal Language Is So Important
Proposal is usually made part of the contract
documents
Under Statue of Frauds, what is in writing is the
sole admissible evidence in court about the
contract
Components in Formal and Informal
Proposals
Transmittal Form
Title page
Table of contents
List of figures
Executive Summary
Introduction
Technical Plan
Schedule
Staffing
Cost Proposal/Pricing
Exceptions/Clarifications
Appendix
Copy of RFP
Generally optional in informal proposals
Generally appearing in informal
proposals
An informal proposal is
often in the form of a
letter format report
Writing Proposals
Introduction
Explain why the proposal is being made.
Develop a persuasive “hook.” Suggest excellent
results, low cost, or exclusive resources. Identify a
problem or name a key issue or benefit.
Writing Proposals
Background/Introduction
Discuss the significance of the proposal and its
goals or purposes.
For unsolicited proposals, convince the reader that
a problem exists.
For solicited proposals, show that you fully
understand the problem and its ramifications.
Get attention
Writing Proposals
Technical Plan
Present your plan for solving the problem.
Describe your approach.
Describe implementation and evaluation.
Outline a schedule showing dates.
Writing Proposals
Cost Proposal/Pricing
State pricing carefully. Proposals can be part of the
contract documents or constitute the entire contract.
Consider how to itemize your costs.
Present a deadline for the bid figures.
Writing Proposals
Project Management/Team/Staffing/
Explain the specific credentials and
expertise of the key personnel for the
project.
Show that your support staff and resources
are superior to those of the competition.
Writing Proposals
Exceptions/Clarifications
List all items in bid package with which you can not or will
not comply
Clarify reasons for non-compliance
If bidder does not take exceptions, solicitor (and courts)
may assume whole bid package scope will be provided
Writing Proposals
Close
<Break>
Ask for approval or the next step. Make it easy to
reply.
Creating Business Plans
Creating Business Plans
A business plan is a form of proposal that:
•
•
Components in Typical Business Plans
Transmittal Form/Letter of Transmittal
Title Page
Table of Contents
Executive Summary
Company Description
Product/Service Description
Market Analysis
Operations and Management
Financial Analysis
Appendixes
Helps secure funding for a new business
Provides a detailed road map for a new business to
follow
Preparing Effective Business Plans
Letter of transmittal or executive summary
Explain your reason for writing.
Provide contact information for all principals.
Describe your business concisely.
Introduce parts of your plan.
Ask for support.
Table of contents
List topics and page numbers.
Ch. 13, Slide 24
Preparing Effective Business Plans
Executive Summary
Company description
Preparing Effective Business Plans
Product or service description
Identify business form (proprietorship, partnership,
corporation, and so on)
Specify business type (merchandising, service?)
For existing businesses, explain founding, growth,
sales, and profit.
Explain what you are providing and how it will
benefit customers.
Describe why your idea is better than existing
products or services.
Ch. 13, Slide 25
Preparing Effective Business Plans
Market analysis
Ch. 13, Slide 26
Preparing Effective Business Plans
Operations and management
Discuss market characteristics, trends, and projected
growth.
Describe customer behavior, complementary
products and services, and barriers to entry.
Identify your customers and how you will attract,
hold, and increase your market share.
Specify the strengths and weaknesses of
competitors.
Explain how you will run your business: location,
equipment, personnel, and management.
Emphasize experienced and well-trained staff and
advisors.
Ch. 13, Slide 27
Preparing Effective Business Plans
Financial analysis
Outline a realistic start-up budget.
Present an operating budget that projects costs.
Explain how much money you have and will need.
Appendixes
Provide extras, such as promotional materials and
product photos.
Ch. 13, Slide 29
Ch. 13, Slide 28
Preparing Formal Reports
Preparing Formal Reports
Preparing Formal Reports
Analyze the report problem and
purpose.
Develop a problem question (Are
customers satisfied with our service?)
and a purpose statement. (The purpose
of this report is to investigate customer
satisfaction and to recommend areas
for improvement.)
Anticipate the audience and issues.
Consider primary and secondary
audiences. What do they already
know? What do they need to know?
Divide the major problem into
subproblems for investigation.
Ch. 13, Slide 31
Preparing Formal Reports
Ch. 13, Slide 32
Preparing Formal Reports
Prepare a work plan.
Collect data.
Include problem and purpose
statements.
Describe sources and methods of data
collection.
Prepare a project outline and work
schedule.
Search secondary sources.
Gather primary data.
Ch. 13, Slide 33
Preparing Formal Reports
Ch. 13, Slide 34
Preparing Formal Reports
Document data sources.
Interpret and organize the data.
Prepare note cards or printouts citing
all references (author, date, source,
page, and quotation). Use one
documentation format consistently.
Ch. 13, Slide 35
Arrange the collected data in tables,
grids, or outlines to help you visualize
relationships and interpret meanings.
Organize the data into an outline.
Ch. 13, Slide 36
Preparing Formal Reports
Preparing Formal Reports
Prepare graphics.
Compose the first draft.
Make tables, charts, and illustrations –
but only if they serve a function. Use
graphics to clarify, condense, simplify,
or emphasize your data.
Write the first draft knowing that you
will revise it later.
Use appropriate headings and
transitional expressions to guide the
reader.
Ch. 13, Slide 37
Preparing Formal Reports
Ch. 13, Slide 38
Preparing Formal Reports
Revise and proofread.
Evaluate the product.
Revise to eliminate wordiness,
ambiguity, and redundancy. Look for
ways to improve readability, such as
bulleted or numbered lists. Proofread
three times for (1) word and content
meaning, (2) grammar and mechanics,
and (3) formatting.
Decide whether the report will achieve
its purpose. Encourage feedback so that
you can improve future reports.
Ch. 13, Slide 39
Formal Report Components
Ch. 13, Slide 40
Components in Formal Reports
Transmittal Form/Letter of Transmittal
Title Page
Table of contents
List of Figures
Executive summary
Introduction
Body (sections)
Conclusions
Recommendations
Appendices
Works Cited
Other
Formal Report Components: Front Matter
Letter or memo of
transmittal
Letter or memo of
transmittal
Announce the topic
and explain who
authorized it.
Briefly describe the
project and preview
the conclusions – if
the reader is
supportive.
Close by expressing
appreciation for the
assignment,
suggesting follow-up
actions,
acknowledging the
help of others, and
offering to answer
questions.
Ch. 13, Slide 43
Formal Report Components: Front Matter
Cover and title page
Choose a professional binder or cover.
Balance the following parts on the title page:
Formal Report Components: Front Matter
Name of report in all caps
Receiver’s name, title, and organization
Author’s name, title, and organization
Date submitted
Ch. 13, Slide 47
Ch. 13, Slide 44
Formal Report Components: Front Matter
Table of contents
Show the beginning page number where each report
heading appears in the report.
List of figures
Include a list of tables, illustrations, or figures
showing the title of each and its page number.
Place the list of figures on the same page with the
table of contents if possible.
Ch. 13, Slide 49
Formal Report Components
List of Figures
A table of contents for figures
Include a list of tables, illustrations, or figures.
Place the list on the same page as the table of
contents if possible.
Formal Report Components
Formal Report Components: Front Matter
Executive Summary
An abstract of the entire report
Summarize the report purpose, findings,
conclusions, and recommendations.
Gauge the length of the summary by the length of
the report and by the organization’s practices.
Executive summary
Begin with the
purpose.
Follow the report
sequence.
Eliminate
nonessential details.
Restrict the length to
no more than 10
percent of the
original document.
Ch. 13, Slide 54
Formal Report Components: Front Matter
Introduction
Describe events leading to the problem or need.
Explain the report topic and why it is important.
Clarify the scope and limitations of the report.
Orient readers with a preview of the report
structure.
Ch. 13, Slide 56
Formal Report Components: Front Matter
Introduction (con’t)
Formal Report Components: Body
Body
Identify who authorized the report.
Consider reviewing relevant literature.
Describe secondary and primary data sources.
Define key terms.
Discuss, analyze, and interpret the research findings
or proposed solution to the problem.
Arrange the findings in logical segments that follow
your outline.
Use clear, descriptive headings.
Ch. 13, Slide 57
Formal Report Components: Back Matter
Conclusions and recommendations
Ch. 13, Slide 58
Formal Report Components: Back Matter
Appendix
Explain what the findings mean in relation to the
problem.
Make enumerated recommendations, if requested.
Suggest actions for solving the problem.
Include items of interest to some readers, such as
data-gathering tools like questionnaires.
Works Cited or References
List all references in “Works Cited” or
“References” if footnotes are not provided.
Optionally, include a bibliography showing all the
works cited (and perhaps consulted), arranged
alphabetically.
By John S. Donnellan
Ch. 13, Slide 59
Ch. 13, Slide 60
END
Ch. 13, Slide 62