9th Apr, 2024
A well-written contract proposal is an important and essential document for any business when trying to reach a successful agreement with a prospective client or establish a working partnership. The exact elements that make up a business contract proposal can vary based on different factors such as the industry, size of the business, the type of service being proposed etc. However, there is general guidance you can follow to ensure you create high quality proposals to win over potential clients, which we will be covering in this guide with useful tips and advice.
A business contract proposal is a document that is given to prospective clients with the intention of working with them to complete a specific project or to secure an ongoing partnership. The aim of this document is to persuade the other party that they can benefit from the service that you can provide, demonstrating that your business has the ability to effectively fulfil their needs. Contract proposals are an essential component for growth in many businesses across various industries, especially those in the B2B market.
There are two main types of business contract proposals: solicited and unsolicited.
A solicited business proposal is used when a company has asked you to provide the document with all the relevant details for their consideration. This type of proposal can either be formal or informal.
A formal contract proposal is typically competitive, meaning that the prospective client has requested proposals from multiple businesses in order to find the most suitable service for their requirements. The document should follow a formal, standardised format covering the scope of work and how your business can complete the request. Your proposal is then submitted as a formal bid for the work.
An informal solicited proposal is usually written based on conversations between you and the prospective client. In this situation, you may not need to complete any formal documentation or be in competition with other businesses for the work. If the client is interested in your business specifically, it might lead to a successful sole-source contract.
Unsolicited contract proposals are documents that are sent to prospective clients that they have not requested from you. Therefore, they are usually more generic in nature, acting as a form of marketing brochure for your business. Unsolicited proposals are often used at trade shows or other public venues or platforms where businesses are shopping around for the right solution to fit their project needs. When well-crafted, these types of proposals can generate some successful business, but in most cases solicited proposals are more commonly used when attracting prospective clients.
As mentioned earlier, the exact contents of a contract proposal can vary from business to business based on a range of factors. However, in general you should include any relevant information you think will help sell your service to the other party. This might include addressing the problem/pain point your prospect has and how you can offer the solution to resolve it. In addition, you should support your proposal with evidence of your qualifications and experience, positioning your business as the best option to successfully complete the work. Other details you may want to add to your contract proposal include:
If you regularly send business contract proposals, they will likely all follow the same structure as they generally follow a similar format. Also, using the same format saves a significant amount of time in document creation and turnaround. Traditionally, the format of a business contract proposal is between 8 and 9 pages long and includes the following:
At E-Sign, we’re more than just an eSignature provider, we offer digital document solutions that can help your business streamline its operations, reduce costs, and improve efficiency. That’s why we have a range of pre-built templates, to support our users with various document needs, including our business contract proposal template. Our business contract proposal is structured to ensure you can include all the important details that will help you secure the deal with your prospect. Download free templates from E-Sign today and save your business time and resources in your document processes.
Every business proposal will differ depending on your business and there are no specific rules for exactly what your contract proposal should be like. However, it can be easy to get carried away when writing this type of document as naturally, you will want to include all the information you can to win over your prospect.
It’s important to keep in mind quality over quantity. Your potential client is more likely to sign a contract proposal with your business if the contents of the document are clear, concise, and tell them everything they need to know without overselling. A good way to achieve this is by keeping your sentences short and simple, avoiding too much business jargon.
Businesses can sometimes delay committing to a contract intentionally as a tactic, avoiding the decision until the last second. By creating a sense of urgency in your proposal, you can let your prospect know that the best time to reach an agreement with you is now, and they’ll be missing out on a beneficial opportunity for their business if they wait too long.
This doesn’t mean that they need to make a decision straight away, but it also ensures that you are not left waiting with uncertainty for an extended period of time, and potentially missing other opportunities by holding out for one particular prospect.
A good approach when creating a feeling of urgency is offering your potential client short-term goals that can be achieved sooner, as well as longer term goals which they will need to wait for. By offering short-term goals, your prospect is more likely to be enticed into wanting to work with you as soon as possible.
A business contract proposal normally includes information regarding the project timeframe, deliverables, pricing, and payment. It’s important to clearly state these details in your proposal as it establishes the expectations of both you and the client, should they agree to the terms and sign the document. Once the document is signed, both parties have a legal obligation to adhere to the terms and conditions within the contract, ensuring their part of the agreement is fulfilled.
Following the same structure for your business contract proposals by using a pre-built template is beneficial in several ways, including saving time in the creation of new documents when needed, and maintaining a consistent, high standard of proposals that form a positive impression about your business.
However, it’s important to make sure that each contract proposal is tailored specifically to the intended recipient. This will demonstrate to them that you have a genuine interest in their business requirements and challenges. As a result, your proposal is more likely to be successful in securing your prospect as a client.
Make sure there is an eSignature field in your proposals so clients can quickly and easily eSign documents, if they are happy with the contents of the document. Thanks to our innovative eSignature platform, businesses can send, sign, and return proposals within minutes, effectively avoiding the hassle of having to print off the document first, hand sign it, and then scan it back into a digital format before sending it back.
Now you have a better insight into how to create the best business contract proposals, why not give E-Sign’s digital solutions a try? We offer a 14-day free trial that enables our users to maximise the functionality of the platform, and benefit from our wide range of innovative and user-friendly features. During your free trial you will also have access to our five pre-built templates which can be sent and signed for e-signature.
Contact us today to find out more about how E-Sign can meet your specific requirements and transform your document processes.
