How to Write a Business Proposal: A 9-Step Guide for Small Business Owners
Getting new clients is daunting. It’s easily one of the hardest parts of running a small business. And if you sell a service, especially a custom one, you’ll probably need to send a proposal before anyone commits. Which only adds another layer to an already complex sales process. But, just because there are a few extra steps, doesn’t mean you should overthink or overcomplicate it.
If you’ve ever worked in corporate, you know proposals can turn into sprawling 100+ slide monstrosities.
🛑 We’re here to put a stop to all that Riff-Raff.
A clear, thoughtful small business proposal (that’s like, 6 slides or less!) can actually be your best sales tool, helping you convert prospects into customers.
It gives you the opportunity to showcase:
🟢 How well you understand your prospect’s problems
🟢 How you’re going to solve them
🟢 That you’re worth the investment
A business proposal is your chance to build trust early on, demonstrate your value, and set up a good working relationship. So, throw out the long AF proposals and use these proposal writing tips to nail the sale.
In this business proposal guide for small businesses we share nine simple steps to create a proposal that lands new clients.
Step 1: Define the problem and solution
In this step you define the customer’s problem. Then, you explain how your product or service can solve it. That’s it.
Do this in the simplest possible terms. Don’t overwhelm prospects with details, or drown them with too much information.
Define the problem, and how you can solve it.
Sure, a Fortune 500 company may have more complex specs than a mom and pop shop, so the depth and complexity of the proposal should be relative. BUT at its core, the best way to write a business proposal — at the risk of sounding like a broken record — is by defining the problem and the solution. That’s it.
P.S. If you’re not sure what their problem is, dial it back a few steps. Develop user personas to reach your target audience, better understand their pain points, and map out a plan for how to fix them.
Step 2: Showcase the value you bring
Value doesn’t come from fancy jargon or a 10-step framework. It doesn’t come from a long list of deliverables or convoluted steps.
Value comes from solving your prospect’s damn problem: making more sales, saving time, saving money, getting noticed…whatever it is your client actually needs.
Much like a well crafted elevator pitch, your proposal is your chance to show your value without all the extra mishmash. And, if you’re trying to create a business proposal that converts, emphasizing what you bring to the table is…table stakes.
If you can clearly articulate that:
1️⃣ You get what they’re struggling with
And
2️⃣ That you have a plan to fix it (See Step 1: Define the problem and solution) you’re already half way there.
The rest is in the packaging:
🟣 Use plain language
🟢 Do not overcomplicate the steps
🔵 Focus on outcomes, not deliverables
Showcasing your value is about communicating your experience, expertise, and confidence without coming across like know-it-all. It’s a chance to drizzle your secret sauce into the mix and give them a taste of what it’s like to work with you.
Highlight how you help and why you’re the right fit. Give them a clear picture of your plan so they’re confident in your skills, but don’t make it so complex that it leaves them confused, or running for the hills.
Step 3: Build the business proposal
At Big Bad Marketing, we always suggest using the free stuff first, especially when funds are tight. This is true as a business proposal writing tip, and it’s true for pretty much all of your small business marketing while you’re getting started.
There’s no need to invest in fancy proposal software early on, it just bumps up your customer acquisition cost (CAC) and eats at your profit margins. Don’t worry, you can still pull together something compelling without it and make the sale.
BONUS: If you’re not sure about your business numbers like revenue, profit, customer lifetime value (CLTV) or CAC, check out our article on demystifying business math. We break down all the calculations into easy to understand steps so you can get with it when it comes to crunching the numbers.
Pick a format that gets your point across:
🔸 Slide deck
🔸 PDF
🔸 Video
Even a well-written email works.
Simple > flashy
We’re big fans of Canva: free templates, drag-and-drop ease, and plenty of room to get creative without a graphic design degree.
If you’re going with slides, cap it at 5–7. Say what you need to say, then stop before they hit snooze.
Step 4: Share prices (and tell your prospect why it’s worth it)
Price is usually a big part of your prospects' decision to accept your proposal, so don’t dance around it.
We like to offer a tiered pricing in our small business proposals. This lets clients make a choice based on their needs, budget, and capacity, AND it positions you as flexible without being a free-for-all.
Offer no more than three options: enough to create choice without decision fatigue. This sets you up for success (so you can get more customers right away!) and it makes it easy for them to say yes, since they’re focused on choosing which package they want, not whether or not they want to work with you.
At Big Bad Marketing, we typically offer three tiers of service:
1️⃣ DIY with Guidance: Get a clear strategy roadmap and regular check-ins to keep you on track. Perfect if you want control but need expert direction.
2️⃣ DIY with Extra Help: Strategy plus hands-on support to tackle tricky spots and boost progress without losing your independence.
3️⃣ Full Service: Sit back and relax while we handle everything from strategy to execution so you can focus on what you do best.
BONUS: When creating a business proposal that converts, focus on the outcomes, not just the tasks or deliverables. You’re selling growth, confidence, and peace of mind, not hours logged.
Step 5: Include a timeline in the proposal
If your work has a clear start and end point (like a project or result-based engagement), say so.
Timelines help your prospect understand what they’re buying, and when they’ll see results. Whether it’s 3 hours or 3 months, outline how long the work will take in the business proposal.
If it’s an ongoing service (like monthly support, subscription service, or retainer work), you won’t have a hard end date, and that’s okay; You can still share some time-oriented information, like how long onboarding steps take, meeting cadences, milestones, or review checkpoints.
BIG BAD EXAMPLE: Our Big Bad small Business Bootcamp is a 12-week project. We clearly state that it’s a focused sprint to help you build your business foundations and start seeing real traction. But we don’t just leave clients hanging at the end, and we let them know in advance that we’ll check in as we go. Around week 9 or 10, we formally revisit goals, assess progress, and talk about what type of support will be helpful as the project comes to a close. If they’re a good fit for our ongoing consulting, we map out a plan for the engagement (timeline, pricing, and scope) and…we put it into a small biz proposal! If they need another sprint-like project, we put together the tiered options and share that. We’re always planting the seed for what’s next, because clarity and continuity build trust and better results.
““It is ten times more expensive to sign a new customer.””
Whatever your model, make it easy for your client to understand the rhythm and what happens after the initial work wraps. Build in even more value by pointing to what’s possible going forward.
Step 6: Make it big and bad (or on brand for you!)
A business proposal (much like a client invoice) doesn’t have to be a dry, boring document.
Just like all of your business’s messaging and content, it’s a chance to include and be consistent about your brand voice, style, and attitude. So, unless your brand voice is dry and boring, the small biz proposal shouldn’t be!
Let your personality show through the words, layout, and vibe. If it feels like any old pitch, it’s not done yet. And, if you’re still building your brand voice, this is a great time to be creative.
Step 7: Show them the next move
Marketing 101: Always include a call to action (CTA.) This is no exception. Don’t leave your prospect guessing about what to do now that you’ve provided a thorough business proposal!
Tell them what the next step is to get started:
🔵 Book a kickoff call
🔵 Click the payment link
🔵 Reply to confirm
🔵 Complete the survey
Whatever gets them signed up, moving forward, and giving you money, lay it out. The smoother the process, the faster they’ll say yes, so make it SUPER easy! You can make it easy on yourself too, so you don’t forget to add the CTA, by including a spot for it in your business proposal template.
PRO TIP: Simplify the process even more with an automation tool. We use HoneyBook, which lets our prospect jump to a payment page at the end of the proposal, so we can seal the deal while it’s fresh and exciting.
Step 8: Share the proposal and keep the conversation alive
Just because you sent a small biz proposal doesn’t mean your prospect read it or understood it.
When you send it, suggest a quick 15 minute call to walk through it together and answer questions. It keeps the momentum going, clears up any confusion, and shows you’re here to partner, not just pitch.
Go ahead, try it!
When the time comes, be ready to lead the convo. Know the proposal inside and out, and be prepared to speak confidently about the value, the process, and the outcomes.
If they have questions (and they will), this is your moment to show you’ve thought it through, and you’re the right one for the job. This is the moment when your proposal becomes a sales tool to help you convert!
If they’re not ready to book on the spot, no problem. Make it easy for them to come back when they are. Let them know they can revisit the proposal anytime and take the next step when it feels right.
Step 9: Seal the deal
You’ve done the work, now it’s time to stick the landing with confidence.
Make it your business to follow up after sharing or presenting the proposal. If you don’t hear back in a few days check in. Keep the door open and the momentum moving.
When you do get the signature, hit the ground running.
🛑 Do not pass go
🛑 Do not collect $200
✅ Dive in
✅ Be sharp
✅ Bring the energy
✅ Deliver on your promises
✅ ✅ ✅ Show them they made a damn good choice by working with you
PRO TIP: Didn’t get a yes? Don’t sweat it.
If they need more time, or choose to go with someone else, set up a follow-up reminder for 6 weeks, 3 months or even later. Things change, budgets shift, timelines slip, providers disappoint (you would never do that, of course!)There’s no harm in checking in further down the line to find out if they're satisfied, or if they’re ready to restart the convo. And, you can make this super easy on yourself, set it and forget it style, with email marketing and automation.
They definitely won’t sign up if they forget you exist. So, now your only job is to periodically get on their radar. We’ve revived proposals months after sending them, simply because we’ve followed up. So, circle back. If they liked you enough to get a proposal, there’s still potential. Unless they explicitly say “never,” don’t count them out.
Nail the proposal, land the client
A well-crafted business proposal does more than list prices and services.
It builds trust.
It shows you get it.
It makes it easy for the right clients to say, ‘YASSS!’
Whether you're mapping out your first offer or refining your tenth, a solid proposal designed to land clients will help you close the deal and grow your small business.
Need help building one that actually converts? Book a free 15-minute call with us and let’s make sure your next small business proposal does the heavy lifting.
