How To Differentiate Between Business Plan And Business Proposal?
In the competitive world of business, it is not only sufficient to merely introduce a business idea but also to appropriately implement that idea
. Preparing a document that describes the complete production set up or structure is called a business plan. An entrepreneur should also know how to propose a business idea or concept to the client. Proposing a client with the products or services or offering any business opportunity to the client is called a proposal.
What is a business plan?
This plan outlines a complete production planning and various steps involved in generating profit and revenue for an organization. As the name implies, you prepare this document in order to plan several steps that your company will undergo to produce high quality products and services as well as generating profit with the sale of your output. This requires a lot of research and analysis of several factors. It also requires a well thought planning of a marketing strategy that you will implement for the promotion of your company. It also includes a complete description of your budget for a longer period of time such as five to seven years.
It helps you to focus your mind in a correct direction to achieve the objectives of the company. You may want to seek loan from a financial institution. These financial institutions study your well-researched plan for the purpose of lending you loan.
What is a business proposal?
A proposal is an offer letter sent by an entrepreneur to a prospective client for the purpose of offering goods or services of the company. It can also offer a contract, agreement, merger or an acquisition to the prospective clients. There are two kinds of business proposals: solicited and unsolicited. The solicited one is a response by a company to the Request for Proposal sent by its client. It is easy to write as the writer knows the requirements of the client and meets his needs by writing an offer letter. In an unsolicited one, the marketer takes an initiative to meet the requirements of the customer by offering his business idea. A good offer letter is the one that is well-written and contains a reasonable budget.