17 Reasons You Should Use Proposals for Small Business to Become Successful

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Last Updated on September 4, 2022 by Treana Wunsch


If you’re a small business owner, you know that using proposals for small business is important. But what exactly are proposals in small businesses? Proposals are basically plans or suggestions for how to do something, and they’re often used in business in order to secure funding or approval for a project.

A proposal outlines what you plan to do, why you are the best business to do it, how you plan to do it and how much it’s going to cost to do it. It includes all of the necessary information that your client or potential customer needs to make a decision about working with you.

You may think that if you own a small business using proposals isn’t necessary. Although you can run a small service-based business without them, your path to success will be compromised. There are many benefits of creating proposals for your small business, even if you don’t end up winning the project. 

Here are 17 reasons why using proposals for small business matters

Proposals show that you’re serious about your work

person pointing to a tablet with another person sitting on a bench
Photo by Medienstürmer on Unsplash

Writing and sending proposals to potential clients shows that you are willing to put in the time and effort to create a well-thought-out plan. This is a big deal. Especially if your goal is to grow and expand your business.

Proposals demonstrate your professionalism and attention to detail

When you take the time to write a proposal, it shows your potential client that you are a professional who is attentive to detail. This first impression can be critical in winning the job.

A well-crafted proposal also allows you to show off your understanding of the client’s needs and how your small business can address them. This demonstrates that you have put thought into the project and are not just trying to sell them any old product or service.

Investing the time to write a quality proposal can make all the difference in whether or not you win the business. It is worth taking the extra step to show potential clients that you are serious about working with them and meeting their needs.

Using proposals for small business helps you stand out from the competition

If you’re a small business owner, you know that standing out from the competition is essential to success. But how can you make your business stand out in a crowded marketplace? One way is to use proposals.

A proposal is a document that outlines your company’s products or services and explains how they can benefit your potential client. A well-written proposal can help you show the potential client that you go above and beyond what your competition is doing.

Proposals give you an opportunity to upsell your services

When you write a proposal you can use it as an opportunity to upsell your services by highlighting all the ways you can help the client reach their goals. If you’re writing a proposal for a specific service or product, you can add your recommendations for other services or products you think will help the client.

Proposals can help build relationships with potential vendors

You know that proposals are used when trying to sell your products or services but did you know you could use them to build a business relationship with vendors? Using proposals for small business not only sets the tone for a productive working relationship but can also help you get better results from their services.


There are a few key reasons your small business should use proposals for your small business when interacting with potential vendors. A proposal can help you clarify your objectives and ensure that both parties are on the same page from the start. Also, a detailed proposal can give you leverage during negotiations and help you get the best possible terms for your project.

Proposals can help you get funding for your business

If you need money to start or grow your business, one way to try to get it is by writing a proposal and submitting it to potential investors. The proposal acts as a road map to help investors see where you are headed, how you plan to get there, and what they can expect if they invest in your business. In addition to helping you get funding, proposals for small business can help you develop your business plan for yourself.

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Proposals can foster transparency and trust between you and your clients

A proposal is not just a document that outlines what you’re selling and at what price. It’s an opportunity to build transparency and trust between you and your client. A proposal allows you to set the tone for the project from the outset. You can lay out your expectations, timeline, and deliverables in a clear and concise manner, setting the stage for a successful working relationship.

Writing proposals for small business help to ensure that both you and your client are on the same page regarding scope, budget, and objectives. By getting all of the details down in writing, there’s less room for misunderstanding or miscommunication later on.

Proposals can help ensure that projects stay on track and on budget

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Credit: Quickbooks Online

When you’re running a small business, it’s important to keep track of your projects and ensure that they stay on budget. Proposals can help with this by providing a clear outline of what the project will entail and how much it will cost. This can help you avoid clients adding in work without you noticing and ensure that everyone is in agreement from the start.

Proposals help protect both parties should anything go wrong

There are many reasons you should use proposals for small business, but one of the most important is that they help protect both parties should anything go wrong. A well-written proposal will outline the scope of work to be done, the expected deliverables, and the terms and conditions of the agreement.

This provides a clear understanding of what each party is responsible for and can help avoid misunderstandings or disputes down the road. If something does go wrong, having a proposal in place can help resolve the issue more quickly and efficiently. It also ensures there is less room for interpretation of the project at hand.

Proposals make you a better business owner

The process of writing a proposal forces you to think critically about your project and what it will entail. It also allows you to get feedback from potential clients or customers on what they would like to see included in the final product. This allows you to constantly be improving what you offer and the way you manage your small business.

Proposals save time

half alarm clock
Photo by Sonja Langford on Unsplash

If you have a proper proposal template, you can use it over and over again which will speed up the process. You can even have multiple templates for each service or product you offer. A few updates and changes later and you’re done. Not to mention, the more proposals you create the better you’ll get at creating them.

Proposals get you paid on time

If you sell products or services on credit, a proposal or contract can help make sure that the customer pays you. This will also help you get paid faster and will prevent disputes over the amount due. When you don’t have a proposal, you’re simply offering services or products without any structure. This can lead to confusion, misunderstandings, and wasted time. You may not realize it but having a simple proposal template can save your business a lot of time and money.

Proposals protect your intellectual property

You don’t want someone else taking credit for your work or using it without permission. A simple proposal will clearly state the rights you are granting to your client. This is especially important if you are working with a larger company where it’s possible that another department or team has a similar idea. By setting up a clear agreement in advance, you can avoid any problems down the road.

Proposals help you stay organized

You can estimate how long it will take to complete a project and create realistic deadlines. This helps you plan all your projects so you’re not over or under-booking your services or deliverables.

You can keep track of all your proposals in one place and filter them so you’re only looking at the ones that are due soon or require immediate attention. They also provide a pricing and work history.

Proposals can be used as the outline of your project plans

You can pull the details from your proposals into project plans and track all of your projects in one place. You can also update your proposals to reflect changes in scope, budget or timeline. You can create a proposal that represents all of the projects you’re working on at once.

Proposals help you secure future work

You can use past winning proposals as templates for future proposals, making it easier to meet client expectations and giving you a competitive advantage. You can build your credibility by showing you take the time to understand a client’s business.

Proposals showcase your credentials

You can use your proposals to demonstrate your value to a potential client so you’re in a better position to negotiate for higher compensation. You can also use your proposals to show potential employers that you have a proven track record of success.

How to write strong proposals for small business

proposals for small business
Photo by Bram Naus on Unsplash

As the first step in many projects, whether for internal purposes or to land new clients, writing a strong proposal is critical to success.

Define the problem and proposed solution upfront

The client or decision-maker should know exactly what they’re reading about and why it matters to them. Include the scope of work along with an estimated timeline for completion. Make sure you have a clear idea of what you’re going to do and how much time it will take.

Create a proposal outline that's easy to read and understand

With a good proposal outline, you’ll know exactly what information to include in your proposals, so there’s no guessing involved. It will align your thought and the information in a logical manner.

Do your research

Photo by Dan Dimmock on Unsplash

Thoroughly understand the client’s needs, the competition, and what you’re offering as a solution. This will make your proposal more credible and persuasive.

Keep it concise

How long should a proposal be? As long as it needs to be but no longer. A proposal is not the place for long, drawn-out explanations. Get to the point and use language that can be understood by everyone, not just industry insiders.

Make it visually appealing with charts, graphs, and images

Proposals for small business don’t have to be boring. If the potential client is engaged with the proposal, they are more likely to go with your business. Don’t be afraid to show off your personality. People do business with people they like and trust.

Make it easy to read

Use a logical format and present the information in an appealing and accessible way. Get feedback from others on your proposal, especially those who may be reading it. Ask questions and get answers that you can use to improve the document.

Make sure the budget is clear

If there is any ambiguity with the cost structure, potential clients might be scared off. Transparency is always the way to go if you want your small business to be successful.

If you follow these simple tips, your proposals are sure to stand out from the crowd and give you a better chance of landing that all-important client.


As a small business, it’s important to have a system in place for creating and delivering proposals. Not only does this show your potential clients that you’re a professional and organized company, but it also helps you to win more business.

Proposals are a necessary part of success for small businesses. They give the business a clear path to follow and provide organization when putting together a plan. Additionally, proposals help to solidify relationships with clients and vendors, as well as give the business a sense of professionalism. Finally, proposals can be used as a marketing tool to attract new customers. Proposals are essential for small businesses that want to succeed.

Investing the time to create proposals for small business may seem like a daunting task, but it’s worth it to safeguard your business. By taking care of the details upfront, you can focus on running your company and growing your business.

If you’re not sure where to start, I’ve created a simple proposal template that you can download, make your own and use over and over again. Click below to purchase.

Canva Minimalist Project Proposal Template

Save yourself some time and use this ready-made Canva proposal template.

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Treana Wunsch

Treana Wunsch

Volleyballer, dog mom, Feng Shui buff, and minimalist wannabe. Treana is obsessed with simplifying processes for entrepreneurs and small business owners.

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Dan Richards
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